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Weekend FT 


Inside section ll 



Deutschmark • 

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\ Twefae^page 
residential 
property special 



On safari from 
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Amazonia 

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‘ Yeltsin now 


A year on from the 
White House battle 

page 10 


FINANCIAL TIMES 


burope^^jjsMess^ ewspoper. 


WEEKEND SEPTEMBER 24/SEP.TEMBER 25 


Lyonnais 
may need to take 
additional charge 

Credit Lyonnais, troubled French h ankin g 1 group, 
may need to make additional provisions of up to 
FFr25bn ($4.7bn) against its heavy losses, govern- 
ment sources said. Jean Peyrelevade, appointed by 
the government as chairman of the state-controlled 
group last year, told officials earlier this week that 
total provisions could be in the range of FFrl5bn- 
FFr25bn. the sources said. The size of the provisions 
would be among the largest reported in French cor- 
porate history. Page 13 

Ukraine fan IMF deal: Ukraine reached a 
preliminary agreement with the International Mon- 
etary Fund on a reform programme which could 
release $700m in aid next month. Page 28 

Building society review: The UK government 
launched a review of the way building societies 
operate, including how they are accountable to the 
customers who own them. Page 6; Lex, Page 26 

Buses to stay ‘predominantly recP: Some of 
London's double-decker red buses, a symbol of the 
capital from New Delhi to New York, changed own- 
ers, but the buyer pledged to keep the world-re- 
nowned fleet "predominantly red”. 



Russian budget crisis: Government revenue in 
Russia would amount to only Rbs64,000bn this year, 
just over half the planned figure of Rbsl24^00bn 
and only a third of planned expenditure, said dep- 
uty finance minister Sergei Alexashenko. Page 2; 
The high wire act continues, Page 10 

Soap attacks Unilever suffered a fresh attack on 
its new washing powder when the Consumers' 
Association in Britain said the first version of the 
detergent damaged some clothes in laboratory tests, 
even at normal temperatures. Page 28 

Clinton rulos on reshuffle: President Bill 
Clinton has overruled his chief of staff’s recommen- 
dation to replace Dee Dee Myers as White House 
press secretary. Page 3 

Potty Pack disposal order: A lawyer 
representing Asil Nadir said an interim court order 
hod been made in Istanbul preventing administra- 
tors from selling any assets of Polly Peck Interna- 
tional in Turkey. Page 7 

Plague exodus In India: More than 200,000 
people have fled the western Indian city of Surat 
where at least 44 people have died from the highly 
infectious air-borne disease, pneumonic plague. 

Page 4 

Gas power station agreement: Midlands 
Electricity and three non-UK companies said they 
had reached agreement on financing a 750MW gas- 
fired power station on Humberside, underlining the 
threat to coal from other fuel sources. Page 7 

Footsie ends nervous week steadier 

The UK stock market 


FT-SE lOO Index 

touty movements 
3.100 - : 



ended a difficult week on 
a firmer note with the 
help of an improvement 
in the stock index 
futures and bond sectors, 
although trading volume 
remained unimpressive. 
In early trade, the FT-SE 
100 Index plunged 22 
points through the 3,000 
mark to 2.999.2. but 
recovered to 3,028.2 at 
the close, a net gain 
of 7 points. The Footsie 
fell by just over 1 per 
ent on the week. London stocks. Page 17 

topworth, building materials and boiler group, 
oported a 29 per cent rise in half-year pre-tax prof- 
Es to £3.5. fim <$56.2). although the figure was Wat- 
ered by lower interest and finance costs. Page 12 

rime change: Clocks in continental Europe go 
lack by one hour tomorrow morning. Summer time 
ontinues in the British isles for four weeks to Octo- 
ier 23 and in North America until October 30. 

IK speedster jailed: A British motorist timed 
y police at 153 mph, the fastest speed in UK legal 
listory. was jailed for six months for dangerous 
riving. Unemployed builder Achiile Mazzotta. 30. 
iss also banned from driving for four years. 


Companies In this issue 


Acord ia 
Albert Lolbdrfi 
Alpha Airports 
Apia Nursing 
Artesian 

Bain Hovio 
Blech iDi 
Body Shop 
Breedon 
CrMl Lyonnais 
Europe Energy 
Eurotunnel 
General Motors 
Goodvum 
Hop worth 


12 

Holt (Joseph) 

12 

12 

LAWS 

12 

12 

Inchcape 

12 

12 

Jo&eptrthol. Lyon 

13 

12 

Launeen Shipping 

13 

12 

Mitfland Assets 

12 

13 

Mcrfytwux Estates 

12 

12 

Nonsh 

12 

12 

Pire#i 

13 

13 

Servoniex 

12 

12 

Stadi Varies 

12 

26 

Urulcver 

as 

13 

Untied Breweries 

12 

12 

United Fish 

12 

12 

Wembley 

12 


tier service and 
eral enquiries call: 


Frankfurt 
(69) 15685150 


Recovery looking increasingly healthy ■ Personal incomes suffer as taxes rise 


UK growth hits six-year high 


By GBlian Tett, 

Economics Staff 

The UK economy grew at its 
fastest rate for six. years in the 
second quarter of this year, while 
the balance-of-payments deficit 
fell to its lowest level since 1987. 
The figures provide further evi- 
dence for the increasingly 
healthy nature of the recovery. 

Household budgets suffered, 
though, as the recent tax rises 
contributed to the sharpest quar- 
terly fell in the level of personal 
disposable incomes for 15 years. 

The squeeze on consumers may 
explain why economic growth 
has not yet translated into a 
widespread "feelgood” factor. 
However, statistics from the Cen- 
tral Statistical Office yesterday 
also suggested that economic 
recovery was now being "re- 
balanced”, away from consumer- 
led growth and towards a more 
healthy export and industry- 
driven recovery. 

Gross domestic product was Ll 
per cent higher in the second 
quarter of the year, compared 
with the first quarter, and 33 per 
cent higher than in the same 
period a year ago. 

The figure was higher than the 
government's previous estimates 
of year-on-year growth of 3.7 per 
cent, and faster than most previ- 
ous City estimates. Although 
many economists believe growth 


Economic growth accelerates... 


but household budgets are squeezed 


GOP 

Af factor cost 
1880=100 
1Q3 

t02 


100 


Balance of payments 
Currant balance 
SaaaoraRy actuated, £bn 



lr 

ii 

miiifi ijj 

■ 

r r 

1090 01 92 

S3 


Personal sector savings ratio 
Percent 

74 * 


Income 

Index of real disposable income 
1990=100 

106 — - 


ar 

Source: Datsstraara ■ 

will moderate this year, the unex- 
pected strength of the recovery 
provides further support for the 
government's controversial deci- 
sion to raise bank base rates to 
5.75 per cent to reduce any infla- 
tion pressures created by this 
rapid expansion. 

In another fillip for the govern- 
ment, the UK current-account 
deficit narrowed in the second 
quarter of the year to £700m as 
exports rose, imports fell slightly, 
and overseas investment flowed 
into Britain. The drop was wel- 
comed by the City, where many 
economists had feared that the 
deficit would worsen dramatic- 
ally this year as growing demand 
sucked in imports. 

The Treasury dubbed the fig- 


-A- 1 

j 

-6 1 

P 




I960 ' 61 * 92 1 

93 1 94 ' 



Editorial Comment-.. 

-Page 10 




ures “very encouraging”. The 
rapid surge in exports, official* 
noted, suggested that UK manu- 
facturers were becoming increas- 
ingly competitive and may be 
reaping the benefits of sterling’s 
devaluation after the UK’s exit 
from the European Exchange 
Rate me chanis m in 1992. 

One beneficiary was the corpo- 
rate sector, which reported 
record levels of profit and finan- 
cial surplus in the second quar- 
ter. 

Meanwhile, real personal dis- 


posable income, measured in cur- 
rent prices, fell 1.8 per cent 
between the first and second 
quarters - the fastest quarterly 
drop since 198L Compared with 
the same period a year ago, dis- 
posable incomes were 1.2 per cent 
lower. The CSO said the fall 
reflected tax rises and a small 
overall drop in employment 
incomes. 

The population responded by 
reducing spending and saving, 
and increasing borrowing. The 
personal-sector savings ratio fell 
to 9.3 per cent in the second quar- 
ter of the year, from 11 per cent 
in the first quarter - the largest 
quarterly drop for eight years. 
Total consumer spending growth 
slowed to 0.2 per cent between 


the first and second quarters, 
down from the government's pre- 
vious estimate of 0.4 per cent 
growth. 

The squeeze on household 
incomes may add to political 
pressure on Mr Kenneth Clarke 
to hold back from further tax 
measures in the November bud- 
get, amid Conservative party con- 
cerns that the recent economic 
growth has not translated into 
greater political support for the 
government 

Nevertheless, City economists 
argued that although consumer 
spending was likely to fell fur- 
ther this year, the growth in 
exports would more than offset 
that, creating a healthier and 
more sustainable recovery. 


London hints of softer line on IRA arms 


By David Owen 

The government is unlikely to 
insist that all IRA weapons are 
surrendered in exchange for 
allowing Sinn F£in to join politi- 
cal talks on Northern Ireland’s 
future. 

That emerged at Westminster 
yesterday as Mr John Major, the 
prime minister, raised hopes of 
further progress on the UK -Irish 
peace initiative by acknowledg- 
ing that the government might 
be engaged in preliminary talks 
with republican leaders by 
Christmas. 

The positive mood was 
reinforced by the relatively 
upbeat tone adopted by both 
sides after the first meeting 
under the terms of the Anglo- 
Irish conference since last 
month's IRA ceasefire. 

Yesterday’s developments 


came on the eve of the arrival in 
Boston of Mr Gerry Adams, the 
Sinn F6in president 

Questioned yesterday on the 
prospects for talks between the 
government and the IRA’s politi- 
cal- wing, the prime minister 
noted that republican leaders had 
still not provided sufficient assur- 
ances that the IRA had 
renounced violence for good. 

But he said they were "very 
nearly there". If the assurances 
demanded by the government 
were given without delay, 
"clearly we could be talking at or 
around Christmas-time, ” he said. 

London has promised to start 
preliminary talks on how to 
a dmit Sinn F§in to the political 
process within three months of a 
permanent end to IRA violence. 
The ground covered would 
include what to do about the 
IRA’s extensive armoury. 


Gerry Adams to land in US 
today - ,—Page 6 


Anything short of a full surren- 
der of IRA w eapons would proba- 
bly disappoint unionists, many 
of whom are still profoundly 
suspicious of the IRA’s inten- 
tions. 

But according to Whitehall offi- 
cials, London is unlikely to 
regard a refusal by republican 
leaders to guarantee that all IRA 
weapons have been handed in as 
a potential deal-breaker. 

There is widespread accep- 
tance. however, that London is 
likely to take a much tougher 
line over caches of explosives and 
militar y equipment such as semi- 
automatic rifles and rocket 
launchers that are believed to be 
in the IRA’s possession. 


That is the minimum that 
would be demanded by the 
moderate unionists whom it is 
vital for London to keep on 
board. 

According to Mr John Taylor, 
the Ulster Unionist MP for 
Strangford, there is “no way in 
which the UUP could recognise 
Sinn F&n as a normal democratic 
political party . . . until those 
guns are accounted for." 

Questioned on the issue yester- 
day, Sir Patrick Maybew, North- 
ern Ireland secretary,, said 
nobody who had given up vio- 
lence had “any possible need for 
these things" . 

Speaking after his meeting 
with Sir Patrick in London yes- 
terday, Mr Dick Spring. Irish for- 
eign minister, said London and 
Dublin were coming closer 
together in their attitude to the 
ceasefire. 



Dick Spring: gap between two 
governments is narrowing 


Investors 
move into 
metals as 
inflation 
fears rise 


By Philip Coggan, 

Economics Correspondent 

Commodity prices surged again 
yesterday as investors continued 
to buy precious and base metals 
as a hedge against the risk of 
inflation. 

Gold closed in London at a 13- 
month high of $396 an ounce, 
with traders reporting buying 
interest from US institutions. 

Mr Andrew Smith, metals ana- 
lyst at UBS, said the substantial 
increase in speculative interest 
in gold was similar to the buying 
spree when hedge fond investor 
Mr George Soros announced his 
gold purchases in 1993. 

Silver closed at $5.71 an ounce, 
np 6 per cent on the week and 
close to its high for the year. 
Base metal prices also rose, with 
copper and aluminium recording 
their highest closing prices since 
1992 and 1991 respectively. 

The Economist commodity 
price index is np 41.8 per cent 
over the year, in dollar terms. 
Higher commodity prices 
increase industry's costs, 
although competitive pressures 
mean they cannot necessarily be 
passed on to consumers in the 
form of higher retail prices. 

Fears that inflation is on the 
rise have Increased this year in 
the face or strong economic 
growth in the US and recovery in 
Europe. Bond yields have risen 
to reflect the perceived inflation- 
ary risks and several countries 
have raised interest rates in pre- 
emptive strikes against inflation. 

Equity prices have also been 
affected by inflationary fears. 
Earlier this week, the Dow Jones 
industrial average suffered its 
biggest one-day fall, in response 
to poor trade figures and market 
fears about US inflation pros- 
pects. 

Stock markets were generally 
quiet yesterday, with share indi- 
ces in London, Paris and Frank- 
furt all moving ahead. The FT-SE 
100 closed np 7 at 3028.2 The 
Dow Jones was down 6 in early 
afternoon trading. 


Currencies, Page 15; London 
stocks, Page 17; World stocks. 
Page 23; Markets, Weekend n 


Ukraine and IMF agree initial 
deal over economic reforms 


By Chrystia Freeland in Kiev 

Ukraine reached preliminary 
agreement with the hiternational 
Monetary Fund yesterday on a 
programme of radical economic 
reforms that may release an ini- 
tial $7D0m (£443m) in aid next 
month. 

The deal with, the IMF, the first 
since Ukraine declared indepen- 
dence just ova- three years ago, 
may be a watershed in the coun- 
try's economic development 

Under former President Leonid 
Kravchuk. Ukraine became one 
of the most economically 
depressed republics of the former 
Soviet Union. The new president, 
Mr Leonid Kuchma, has prom- 
ised comprehensive economic 
reforms, and yesterday's agree- 
ment suggests that his govern- 


ment is prepared to live up to his 
word. 

According to Mr Viktor Yush- 
chenko. the reformist chairman 
of the Ukrainian central bank, 
who participated in the negotia- 
tions, Ukraine has agreed to to 
keep its budget deficit to 20 per 
cent of GDP. 

IMF officials said the accord 
called for a tight fiscal policy, 
price liberalisation, libe ralisa tion 
of Ukraine's foreign trade, rapid 
structural reform, such as priva- 
tisation, and the creation of a 
safety net to shield the poor. 

If the preliminary agreement is 
ratified next week by the board 
of the IMF and the Ukrainian 
leadership, it may pave the way 
for substantial western assis- 
tance. IMF officials said they 
could begin negotiating a 


standby agreement with Ukraine, 
which might release as much as 
$l-24bn, early next year. This 
summer the Group of Seven lead- 
ing industrial nations promised 
Ukraine $4bn in aid if the coun- 
try began serious reforms. 

“This is a ground-breaking 
agreement" Mr Lawrence DeMfl- 
nar, resident representative for 
the IMF in Ukraine said. 

Mr Yushchenko said the deal 
was the beginning of a compre- 
hensive reform effort in Ukraine. 
“This is the beginning of real 
steps toward economic reform," 
he said, adding that the president 
was “100 per cent" behind the 
IMF deal and the reform process. 
He also predicted that initial 
opponents of market reforms in 

Continued on Page 26 


STOCK -MARKET INDICES 


FT-SE 100: 3.Q2&2 

Yield 4.17 

FT-SE Eurotrack 100 

1,343.73 

FT-SE-A All-Share .. 1,51058 

N*kei ..... cknad 

New York: lunchtime 
Dow Jones Ind Ave 3£3074 
SAP Composite 459.88 

■ LONDON MONEY 

3- mo Interbank 512% 

UHe long gilt tut: — Dec OS's 


1*7.0) 


(♦9.41) 
(*0.1 *1 


(-0.39) 

(-1.38) 


P%») 

(Dec985S) 


■ us lunchtime RATES 


■ 9 

TERUM 

1 

Federal Funds: 

__4ii% 


New York tunchlkne: 

3-m Trees Bffl s: VW 

-4495M 


S 

ijsm 



96*2 









1-5788 

(1.57621 




S 

■ NORTH SEA OH- (Argus) 

Brent iS-dav (Novi S1&G5 

(1628) 

DM 

FFr 

2438 

80366 

(2.4411) 

(8543) 



SFr 

2J2S3 

(2.0278) 

■ Gold 



Y 

154252 P54J5S1) 

New YorX ComexflJec] S398J5 

(399.0) 

£ index 79.7 

f79.S> 

London 

S39&0 

093.8) 






0-5488) 

(52952) 

(1-2B65) 

(98.075) 

932-0) 




Letters . 


Man in the Nows . 


Uk News — 

Weather 

Le* 


-17 


.12 




Leader Page. 


.10 


UK 

M. Compares 13 

Norte* 

FT-SE Actuaries 17 


FT W&K2 Aisles 23 

fadgt B re ta nges IS 

Goid Makes 14 

EtjstvOqacra 23 

London Sc 17 

LSEQkCmJS W 

Managed Funds iMi 


Money Motets . 
Recent Issues — 


Shera I nta manon .—2425 

World Conmocttm „ 14 

Wttl Street 2223 

2223 


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Aptcj m: w. _ — 

~THK. FINANCIAL TIMES LIMITED 1994 No 32,480 WeekNo 38 LOII DOW ■ PARIS ■ FRANKFURT • MEW YORK • TOKYO 


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FINANCIAL TIMES WEEKJEND SEPTEMBER 24/SEPTEMBER 25 1994 


NEWS: INTERNATIONAL 


Russian state revenue to fall short by half 


By John Lloyd hi Moscow 

Tfae desperately strained 
condition of the Russian bud- 
get was revealed yesterday by 
Mr Sergei Alexashenko, deputy 
finance minister, who said gov- 
ernment revenue this year 
would amount to only 
Rbs64,ooobn. This is a little 
over half the planned figure of 
Rbsl24,500bn and a third of 
planned expenditure of 
Kbsl94,500bn. 

Mr Alexashenko, who with 
Mr Sergei Dubynin, the acting 
finance minister, occupies the 
hottest seat in the Russian gov- 
ernment, said the number of 
“dissatisfied* people would be 


large but that “the government 
and within it the Ministry of 
Finance intend to adhere 
strictly to our chosen line - of 
restricting inflation and ach- 
ieving macroeconomic stabil- 
ity”. 

He appealed to the parlia- 
ment to pass the budget for 
1995 - which has not yet been 
presented to the parliamentary 
leadership - and said it should 
not waste time attempting to 
revise the 1994 budget, in spite 
of cuts the government has 
made in its spending. 

Some opposition leaders 
have threatened to try to over- 
throw the government by 
blocking next year’s budget. 


Russian President Boris Yeltsin is expected to 
argue strongly that Russia has a strong and 
legitimate national interest in the exploitation 
of oil and gas in the Caspian sea region, during 
weekend talks with Mr John Major, the British 
prime minister, at Chequers, the premier’s 
country retreat, writes Anthony Robinson. BP 
and British Gas are among large British 
companies negotiating deals in Azerbaijan and 
elsewhere in oil- and gas-rich former Soviet 
centra] Asia. 

Mr Yeltsin is also expected to outline the 


contents of a policy speech setting out Russia's 
wttitndp towards arms control and security 
issues, which he will deliver at the United 
Nations in New York next week. Hr Douglas 
Hurd, the UK foreign secretary, will hold 
separate talks on Bosnia and other 
international issues with Mr Andrei Kozyrev, 
his Russian counterpart Russia’s new 
ambassador to London, Mr Anatoly Adamishin, 
a former deputy foreign minister and veteran 
career diplomat, will t ake part in ibe talks. 

See Pages 10 and XXII 


which aims for a monthly 
inflation rate of 3 per cent, 
while some minis ters in the 
cabinet have argued for extra 
expenditure. 

Forecasts produced by the 


Finance Ministry show that 
industrial output is expected to 
be 20 per cent down by the end 
of this year on 1993 levels - 
one of the main reasons for the 
inability of the state to gather 


taxes. The other key reason is 
the more rapid fail in inflation, 
to 4 per cent last month, 
although Mr Alexashenko 
expected it to rise to 5-7 per 
cent this month. 


In a speech in the town of 
Krasnogorsk yesterday, Mr 
Oleg Soskovets, first deputy 
prime minister, said the gov- 
ernment expected the produc- 
tion slump to slow; he blamed 
its steepness on deep cuts in 
military expenditure. 

He raid expenditure in the 
defence sector had been 
reduced by 70 per cent in the 
past two and a half years, 
while general investment in 
the economy had been reduced 
by 65 per cent in the same 
period. 

One of the casualties of the 
budget cuts this year has best 
the militar y, whose allocation 
of Hbs40,600bn was reduced to 


Rbs32.000bn. The daily Nezavl- 
simaya Gazeta newspaper 
reported yesterday that Gen 
oral Pavel Grachev, defence 
minister, is to appeal for more 
funds, basing his case on the 
incident earlier this week in 
which Moscow’s main early 
warning nuclear facility suf- 
fered a cut in electricity 
because it had not paid its 
hills. 

The arrears in hack pay in 
many sectors would, said Mr 
Alexander Smirnov, head of 
the Finance Ministry's trea- 
sury department, be addressed 
by the allocation of RbsiJXWbn 
to a wages fund before the end 
of the year. 


Call to reform 
French political 
funding rules 


US Secretary of State Christopher hesitant over lifting sanctions on Serbia 


By John Ridding In Paris 

Mr Pierre MCbalgnerie, the 
French justice minister, yes- 
terday recommended a reform 
of the co unt ry’s laws concern- 
ing political funding, arguing 
that businesses should no lon- 
ger be allowed to finance poli- 
ticians' electoral campaigns. 

“I think that a new step has 
to be taken,” he told Le Monde 
newspaper. “In particular, it 
seems desirable that politi- 
cians should be totally inde- 
pendent of companies for the 
financing of their campaigns.” 

Mr Mdhaignerie also raised 
the need to examine company 
law. Several corr upt ion inves- 
tigations under way relate to 
the responsibility of chairmen 
for the actions of subsidiaries, 
prompting the minister to 
question whether the law was 
well adapted to the operations 
of large businesses. He said 
the Issue would be examined 
by a three-member commis- 
sion appointed by Mr Edouard 
Balladur, the prime minister. 

The comments by Mr 
Mthaignerie come amid a 
series of corruption investiga- 
tions. 

The chairmen of some of 
France’s largest business 
groups, including Saint 
Go bain and Schneider, have 


been placed under investiga- 
tion for alleged fraud. 

Mr Alain Carignon resigned 
as communications minister in 
July after he was placed under 
investigation in a case involv- 
ing allegations of illicit pay- 
ments for public works con- 
tracts in Grenoble, where he is 
mayor. This week an investi- 
gating magistrate recom- 
mended that Mr Gerard Lon- 
guet, industry minister, 
should be prosecuted for 
alleged fraud relating to pay- 
ments for the construction of 
his holiday villa. 

Mr Mihaignerie said he bad 
no concrete plans at the 
moment to introduce a reform 
of the party funding laws. 
“There is no urgency at the 
moment. Bat the question 
merits reflection and a large 
debate.” 

He indicated two alterna- 
tives to the present system 
which allows, but strictly lim- 
its, the funds which can be 
paid by business to political 
parties. One would be the 
establishment of national 
foundations within political 
parties which would act as 
intermediaries between politi- 
cians and businesses. Another 
would be the creation of a pub- 
lic political financing body. 
Man in the News, Page 10 


Croats reject 
UN mandate 


By Bruce dark in Brussels 
and Laura Sifber in Belgrade 
and agencies 

The Croatian parliament 
yesterday voted against renew- 
ing the mandate of the UN 
peacekeepers in Croatia unless 
the UN forces are given some 
muscle to return Serb-held 
lands to government control 

Separatist Serbs have 
exploited a stalemate wrought 
by a UN-policed ceasefire to 
cement the breakaway Repub- 
lic of Serb Krajina, spanning a 
third of Croatia’s territory, 
which was seized in a 1991 
uprising against secession 
from Yugoslavia. 

UN troops In Croatia have 
failed to fulfil their mission to 
repatriate refugees to the Serb- 
held Krajina, disarm its rebels 
and restore Croatian sover- 
eignty because they are prohib- 
ited from using military force. 

Meanwhile the US adminis- 
tration. which is due to receive 
a visit from Bosnian president 
Alija Izetbegovic today, is 
backing away from easing 
sanctions against Serbia, in a 
move that could threaten the 
unity of the five nations which 
are working for a peace settle- 
ment in Bosnia. 

DS Secretary of State Warren 
Christopher said the US did 


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not think the United Nations 
Security Council should vote, 
late yesterday on easing eco- 
nomic sanctions against Yugo- 
slavia. “We think it probably 
should not be voted cm today,” 
he said. 

But at the United Nations, 
diplomats from countries 
belonging to th» contact g r o u p 
on Yugoslavia said US Ambas- 
sador Madeiflino Albright had 
agreed for the vote to go ahead 
last ni ght as scheduled. 

The draft resolution will lift, 
for a trial period of 100 days 
the UN bans on direct flights 
to Belgrade and on sporting 
and cultural exchanges. 

Diplomats said the US 
administration remained vul- 
nerable to the pro-Bosnian 
lobby in Congress, despite the 
tightening of military pressure 
against Bosnian Serbs that was 
signalled by Thursday's Nato 
air strike in the Sarajevo area. 

The air raid was the first 
time the UN has accepted the 
idea that attacks on its own 
troops should be punished by 
air raids on targets that had no 
involvement in those attacks. 

The air raid followed strong 
pressure from Nato headquar- 
ters, and some intensi ve pri- 
vate lobbying by senior US pol- 
iticians and military officers, 
for tougher action. 



General Andre Soubirou, acting UN commander in Bosnia, explains UN policy fallowing Bosnian 
Serb attacks on bis forces. The armoured car behind him was rfgmag pH in an attaA Mr 


Trade union setback for 
Norwegian EU hopes 


By Hugh Canwgy 
in Stockholm 

Norway’s Labour government 
suffered a setback yesterday in 
its struggle to win approval for 
Norwegian membership of the 
European Union when the LO 
blue-collar trade union confed- 
eration recommended that its 
members vote No in the refer- 
endum on November 28. 

The LO, whose 780,000 mem- 
bers represent a large chunk of 
the electorate, voted by 156-149 
at a special congress to recom- 
mend a No vote, defying the 
pro-EU line of the Labour party 
to which the LO is closely 
tied. 

Mrs Gro Harlem Brundtland, 
the prime minister, hag worked 


hard to keep the Labour party, 
by far the country’s largest 
political party, committed to a 
Yes vote despite a si gnificant 
anti-EU stream within its 
ranks. 

She was hoping the LO 
would do likewise to ensure 
the entire labour movement 
leadership was muted behind 
the Ye6 campaign. 

Instead, the LO vote - and 
the acrimonious debate that 
preceded it - underscored the 
divisions within the movement 
which Mrs Brundtland had 
hitherto managed to disguise. 

The No camp, which holds a 
strong lead in the opinion 
polls, hailed the LO vote as a 
significant development "Psy- 
chologically it is very impor- 


tant that the country's largest 
wage-earner organisation has 
said No." commented Mr Hali- 
vard Bakke. leader of the 
anti-EU friction within the 
Labour party. 

An opinion poll earlier this 
week in the newspaper Aften_- 
posten showed 50 per cent of 
Norwegians intended to vote 
No, with 28 per cent in favour 
and 22 per cent undecided, a 
sli ght strengthening of the No 
side since Angust 

The poll also showed the No 
lead strengthening even if Fin- 
land -and Sweden, which vote 
first, supported entry. In those 
circumstances 47 per cent 
would vote against and 39 per 
cent for, compared with a No 
lead of just 43-42 in August 


Warsaw hotel financing 
debacle dismays Poles 


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A FFrS4Qm (£408m) hotel 
financing package put 
together by the Banque 
Nationale de Paris four years 
ago, in the heady days just 
after communism had col- 
lapsed in Poland, is coming 
under attack as it becomes 
clear the loans can never be 
repaid. 

Mr Jan Parys. new head of 
Holding Wars, the Warsaw city 
council-controlled company 
which now owns the Mercure 
hotel in Warsaw, has charged 
that the construction costs of 
the hotel - which was built by 
the Compagnie GgngraJe de 
Bailment Construction (CBC) 
of France - were too high and 
the eight-year loan carrying a 
fixed 11 per cent interest rate 
condemned the project to per- 
manent losses. 

The three-star, 250-room Mer- 
cure is one of the handful of 
hotels built In Warsaw over 
the past four years to cater for 
businessmen and tourists. This 
year it has had an average 70 
per cent occupancy rate and 
expects to earn FFM5m at an 
operating cost of FPigLSm. 

However, the terms of the 
loan, which was guaranteed by 
Coface, the French state export 
credit agency, require the hotel 
to pay FFrtSm a year in capital 
and interest payments. 

Holding Wars is trying to 
renegotiate the terms of the 
loan. Three Polish banks. 


Christopher 
Bobinski on 

the row 
threatening 
confidence in 
foreign 
investors 

including die Bank Hamflowy, 
which ultimately guaranteed 
the credits, are negotiating to 
take over the unpaid portion, 
worth FFrSSJm. from BNP. 

In the talks with the Polish 
banks BNP has agreed to 
waive Its FFr29m fee for early 
repayment of the loan while 
Co face will not be Miring for 
Its insurance premium over 
the eight-year life of the loan 
to be paid, which saves 
another FFr27m. The talks are 
expected to be completed by 
the end Of this month 

CBC, which originally held 
50 per cent of the equity In the 
Warsaw Mercure, withdrew in 
February. The hotel retains the 
Pullman franchise but the 
French hotel group has also 
withdrawn from the project. 
Day-today management of the 
hotel is now in the hands of 
Medan, a small French compa- 


ny. CBC and Pullman were 
responsible for the original 
business plan in 1990 which 
was approved by Coface and 
the BNP. The French govern- 
ment also actively promoted 
the scheme at the height of the 
rush to establish a presence in 
eastern Europe as it emerged 
from Soviet control. 

Foreign property consultants 
agree that the project was too 
expensive and suggest that the 
construction costs of a 250- 
room hotel like tfae Mercure in 
Warsaw should not have been 
higher than FFrlSOm for the 
scheme to be profitable. “They 
didn’t know what they were 
doing when they signed the 
deal," says one. 

The debacle threatens Polish 
confidence in foreign investors. 

“Who in 1990 would have 
questioned a business plan 
accepted by such renowned for- 
eign companies?” Mr Parys 
says ruefully of his predeces- 
sors’ decision to go ahead with 
the project 

• The European Bank for 
Reconstruction and Develop- 
ment and the Polish Develop- 
ment Bank have arranged a 
$23-5m (El4Anj financing pack- 
age to help fund the first phase 
of a 20.000 sq m office and 
shopping centre in Warsaw. 
The centre is befog built by 
Shanaka, the Swedish building 
company, with the cost of the 
first phase set at S355m. 


SPD’s 
troika 
starting 
to totter 


0. 


By Christopher Partes 
m Frankfort 

The authority of Mr Rudolf 
Scharping, the Social Demo- 
crat fSPD) parly leader, was 
challenged yesterday by his 
rival-turned-partner, Mr Gar- 
hard SchrSder. 

Old rivalries between the 
two men re-emerged as Mr 
SchrOder demanded an equal 
say in negotiations with poten- 
tial coalition members and the 
process of sharing out depart- 
mental responsibilities in the 
event of an SPD victory in the 
forthcoming federal elections. 

Less than a month before 
the poll and just three weeks 
since Mr Scharping recruited 
Mr SchrSder and Mr Oskar 
Lafontaine, Saarland premier, 
into a “troika" to lead the par- 
ty’s campaign, Mr SchrOder 
said it was not acceptable that 
“some have to walk while oth- 
ers ride on horseback”. The 
party leader was only “the 
first among equals”, he said. 

Opinion poll results had sta- 
bilised since Mr Schrader * 
joined the campaign. Although 
the SPD was still trailing 
Chancellor Helmnt Kohl’s 
Christian Democrats and their 
Christian Social Union allies, 
and SPD supporters should not 
raise their hopes too high, this 
showed the troika was already 
a success, Mr SchrOder said. It 
had “stopped the free-fall" In 
public opinion towards the 
party, he told the Hannov- 
ersche Allgemeine Zettung. 

Mr SchrOder, who was 
beaten by Mr Scharping in last 
year's vote for the party lead- 
ership, had joined the ad hoc 
leadership team after standing 
aloof insisting he would fight 
on his home ground. Lower 
Saxony. He said yesterday the 
right to an equal say in form- 
ing a government was an 
implicit condition of his agree- 
ing to join. 

He once again staked his 
claim to a “super ministry” fin- 
economics, transport and 
energy. It was “very likely" he 
would be granted this range of 
responsibilities in any SPD-Ied 
coalition, he said. 

The attempt to pep np Mr 
Scbarping’s conservative style 
with Mr SchrOder’s popnlist 
aggression and Mr Lafon- 
taine’s charisma was widely 
interpreted at the time as a . 
sign the party bad accepted Its f 
leader stood little chance 
alone a gains t Mr Kohl. 

Now the risks involved in 
putting three men with such 
contrasting styles on the hus- 
tings together appear to be 
emerging. Mr SchrOder was 
recently seen on television 
telling supporters that he and 
Mr Lafontaine had discussed 
which jokes they would tell 
during the campaign and had 
derided Mr Scharping should 
not be allowed to tell any. 

While the trio is due to 
appear together on several 
occasions before voting on 
October 16 - with one open-air 
outing booked for next Tues- 
day in Frankfort - media 
attention is still closely 
foensed on Mr Scharping. 

Consistent rather than rous- 
ing, he is presenting himself 
as the man of the middle 
ground, mimicking the noth- 
in g-dis tnrbs-m e style of Mr 
Kohl, in an apparent attempt 
to lure the CDU vote. How- 
ever. Us speeches so far have 
shown little variation in tone, 
content or temper. 

Bidding to unseat Mr Kohl 
who is campaigning for his 
fourth four-year term after 
unseating the SPD’s Mr Hel- 
mnt Schmidt, Mr Scharping 
refers constantly to the SPD’s 
hey-day leaders, Mr Willy 
Brandt and Mr Schmidt as his 
role models. 

Mr SchrOder. meanwhile, 
has adopted a characteristi- 
cally more direct and aggres- 
sive style with direct attacks 
on the chancellor: “Kohl and 
Co are done for. They have got 
to go.” 


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3 


NEWS: INTERNATIONAL 


r Hinton hears personal appeal 
from his press secretary 

White House 
reshuffle pulls 
in president 


By Jure* Martin 
fo Washington 

President Bill Clinton has 
overruled his chief of staff’s 
reco mm e nd ation to replace Ms 
Dee Dee Myers as White House 
press secretary. A personal 
appeal from Ms Myers to the 
president appears to have been 
instrumental in his decision. 

Details of the White House 
personnel reshuffle were to be 
announced late yesterday by 
Mr Leon Panetta, chief or staff. 
Advance word was that Ms 
Myers would not only co ntinue 
as the daily briefer of the press 
corps, but would be given addi- 
tional responsibilities, with 
greater access to the president 
and other senior policymakers. 

Mr Panetta’s plan, widely cir- 
culated here on Thursday, 
would have had Ms Myers 
replaced as press secretary by 
Mr Mike McCurry, currently 
the State Department's effec- 
tive chief spokesman. She 
would not have been dismissed 
but given broader responsibili- 
ties in the White House com- 
munications network. 

News of the reshuffle 
prompted Ms Mirers to cancel 
her regular daily briefing on 
Thursday and to appeal 
directly to Mr Clinton in what 
was described as an ‘’emo- 
tional” session in which she 
may have threatened to resign. 

Her departure under protest 
could have embarrassed Mr 


Clinton, since Mr Panetta’s 
reshuffle also apparently 
involves the replacement of 
two other senior women in the 
White House - Ms Joan Bag- 
gett, the political director, and 
Ms Ricki Seidman, who runs 
the president’s scheduling. 

But Mr Clinton’s action also 
clearly embarrasses Mr 
Panetta, the former congress- 
man and director of the bud- 
get, who succeeded Mr "Mack” 
McLarty this summer with a 
clear mandate to shake 19 the 
White House staff especially 
those responsible fra: press and 
external relations. 

2n other moves, the present 
communications director, Mr 
Mark Gearan, is to be reas- 
signed and his position abol- 
ished. Mr Phil Lader, now Mr 
Panetta’s deputy, is to swap 
jobs with. Mr Erakine Bowles, 
who runs the Small Business 
Administration. 

Mr Panetta has been trying 
to instil greater or der fato tha 
White House, in which a wide 
variety of advisers, inoiiMttng 
Mr Bruce Lindsey, who is to be 
reassigned to the legal coun- 
sel’s office, and Mr George 
Stephanopoulos, the first com- 
munications director and now 
counsel to the president, have 
had almost unlimited acmug to 
the Oval Office. 

This ba« anttari Mr Clinton's 
eclectic style of decision-mak- 
ing but has caused friction 
with other departments. 


Congress near agreement on lobbyist curbs 


By Jure* Martin 

The US Congress yesterday 
moved closer to passing legis- 
lation severely limiting the 
favours its members may 
receive from lobbyists. 

Bat, with only two weeks 
remaining before recess. 
Republicans threatened to 
block action on other substan- 
tive legislation, including a 
watered-down healthcare 
reform bill, proposals to 

fhi m g t fixe u r tai M -iii g of ejec- 


tion wwnpaigns and a measure 
prot e ct i ng Californian desert 
lands from commercial devel- 
opment. 

The lobbying breakthrough 
™mp with the agreement of a 
joint House-Senate conference 
committee on a unified bill to 
be presented to the Senate 
early next week and the House 
shortly thereafter. Both bad 
passed different bills earlier in 
the year. 

The bill wonld prohibit 
members of Congress and 


their staffs from accepting 
meals, entertainment, travel, 
legal defence fund contribu- 
tions and all but the most 
inexpensive gifts from lobby- 
ists. Campaign contributions 
wonld not be covered. 

The estimated 13,000 paid 
lobbyists in Washington would 
be obliged to register with the 
government (only about 4,000 
now do). They wonld be 
required to disclose their fin- 
ancing and expenditures, 
whom they lobby and on what 


issues. The issue has populist 
appeal in advance of the 
November mid-term elections 
in which the anti-Washington 
mood of the nation is already 
evident. 

The defeat on Tuesday of 
Congressman Mike Synar of 
Oklahoma in a Democratic pri- 
mary and the low vote won by 
Mr Tom Foley, the speaker of 
the Honse, in Washington 
state were tart reminders of 
this political reality. 

But the Republicans showed 


themselves disinclined to hand 
the Democratic leadership and 
President Bill Clinton any- 
thing that could be portrayed 
as victories in the November 
polls. 

A mainstream group of sena- 
tors, including some moderate 
Republicans, continued to 
press for modest healthcare 
reform improving coverage for 
pregnant women, children and 
the aged. But even Senator 
Christopher Dodd, the Connec- 
ticut Democrat, said his own 


bill aimed at children's health 
probably could not pass tills 
year. 

Senate Republicans also 
threatened to use an obscure 
parliamentary device - known 
as the post-cloture filibuster - 
to prevent action on campaign 
finance reform, an issue Ugh 
on Mr Clinton's agenda. This 
bill would place financial ceil- 
ings on the amount that could 
be spent In any race and 
would provide for partial gov- 
ernment financing. 



Perez de Cuellar joins race 
for Peruvian presidency 


Javier Perez de Cuellar: strengths centre on international prestige 


By Safiy Bowen in Lima 

Mr Javier P6rez de Cu612ar. the 
former UN secretary general, has 
announced that he will run for the 
presidency of Peru for the period 
1995-2000. 

The decision will pit the 74-year-old 
diplomat against both serving Presi- 
dent Alberto Fujimori - expected to 
confirm in coming days that he wfil 
seek re-election - and Mr Fujimori's 
wife, Ms S usan* Hignehi MS Hi gUCfai 
has framed her own opposition politi- 
cal movement and will run for the 
presidency if she can ensure a law 
impeding her candidacy is quashed. 

In a brief and low-key announce- 
ment made before a gmaii gathering 
of press and key supporters, Mr PSrez 
de CufeHar gave only general outlines 
of future policy. 

Like most of Mr Fujimori’s oppo- 
nents, Mr Pdrez de Cuellar was 
obliged to recognise the advances 
made in Peru in the past four years. 
Unlike others, he was able to remind 
his listeners that he himself had 
assisted Mr Fujimori in designing 
"the indispensable corrections in eco- 
nomic policy” mario to 1990. 

In what appeared to be an attempt 
to calm the nerves of local and foreign 


businessmen, who fear he could repre- 
sent a return to more a so cialist ling , 
Mr Perez de Cuellar promised: “What 
has already been achieved will be per- 
fected. . . [but with] democracy, genu- 
ine stability, development and jobs.” 

With the first round more than six 
months away, it is too soon for reli- 
able opinion polls. A nationwide poll 
by the Apoyo organisation last week- 
end showed Mr Fujimori currently 
enjoys 44 per cent support and Mr 
P&rez de Cuellar 24 per cent. Ms Higu- 
chi is trailing with only 6 per cent 

According to the same poll, the 
qualities most admired in the current 
president are his capacity for hard 
work, bis decisiveness, his preoccupa- 
tion with the poor, his knowledge of 
Peruvian reality and his honesty 
(although conversely, among his fail- 
ings, 17 per cent of those polled 
dubbed him a liar). 

Meanwhile, Mr Pdrez de CuSDaris 
strengths to Peruvian eyes centre on 
his international prestige, his experi- 
ence and his commitment to democ- 
racy. It is easy to make the charge - 
and Mr Fujimori has already done so 
- that the former diplomat, who has 
lived most of his life outside Peru, is 
unfamiliar with national problems. 
Mr Perez de Cuellar’s retort is, ‘Tve 


spent 40 years serving my country. Mr 
Fujimori four”. 

Many observers question whether 
Mr Perez de Cuellar has the will, or 
indeed the physical stamina, for what 
promises to be a br uising six-month 
campaign. Certainly, he £eems to 
have stood up well so far to five 
weeks' In tensive travelling to the hin- 
terland where, he says, he has found 
"vast areas of poverty. . . [and] a sys- 
tematic ill-treatment of institutions”. 

Although presidential candidates 
and new movements are now prolif- 
erating in advance of the October 9 
deadline for registration, Mr Fujimori 
remains in the driving seat. Largely 
ignoring both his wife and other 
potential opponents, he devotes most 
of bis working week to travelling in 
the provinces, inaugurating schools 
and newly-resurfaced roads. 

Mr Fujimori acts like a man whose 
mission to change the face of Peru is 
unfulfilled- with undeniable, and con- 
crete, achievements to point to, he 
will prove a formidable opponent. 
Nevertheless. Mr P6rez de Cuellar 
could prove a welcome alternative for 
those Peruvians who distrust Mr Fuji- 
mori’s authoritarian leanings and dis- 
approve of his 1992 overturning of 
democracy. 


Haitians 
may get 
US jobs 
training 

By James Hanfing 
In Port-ao-Prtnca 


Haitian refugees being hdd at 
the US naval base in Gnantan- 
amo Bay, Cuba, will start com- 
ing home on Monday. US offi- 
cials could not confirm the 
number of people who have 
asked to return, but have 
taken their requests to do so 
as a sign that Haitians see the 
US military presence as a 
guarantee of security. 

Although no details were 
given, it is understood the US 
intends to train as many as 
L500 or the people retaining 
for civilian and policing jobs 
in Haiti. There are currently 
more than 15JKM refugees at 
G uantanamo . 

US embassy spokesmen said 
refugees would be repatriated 
on a voluntary basis only. 

US commanders to Haiti yes- 
terday continued to develop 
operating regulations for their 
troops in co-ordination with 
Haiti’s military command. 
General Henry Shelton, US 
commander of the joint task 
force to Haiti, yesterday held 
his fourth meeting of the week 
with General Raoul Ctdras, 
the military leader, who is 
required to step down by Octo- 
ber 15. 

In downtown Port-au-Prince, 
Colonel Mike Sullivan, bead of 
the US military police units, 
met Colonel Michel Francois, 
the chief of police, who was 
instrumental to the 1991 coup 
which ousted elected President 
Jean-Bertrand Aristide. 

News of a meeting with the 
reclusive hot influential Col 
Francois, whose whereabouts 
bad been unclear even to US 
officials earlier in the week, 
will relieve many who have 
feared he was not party to the 
agreement to restore Mr Aris- 
tide. 

More US troops came out to 
patrol the streets of Port-au- 
Prince in conjunction with 
Haitian police. 

In addition, embassy offi- 
cials announced that three 
Special Forces operating 
detachments were yesterday 
due to be seat oat to the Hai- 
tian countryside to take np 
positions at Connives, Jacmel 
and Cap Haitien. 

Twelve UN observers arrived 
yesterday to monitor the min* 
tary operation, which, 
although only involving US 
personnel on the gronnd as 
yet is a multinational inter- 
vention sanctioned by UN Res- 
olution 940 in July earlier this 
year. 

US defence secretary Wil- 
liam Perry and General John 
ShaltkasbviU. chairman of the 
military joint chiefs of staff, 
will visit Haiti today to meet 
US forces, defence officials 
said. Reuter adds. They will 
return to Washington this 
evening. 


Life is still no 
bowl of sugar 
and bananas 

Jamaica’s fiscal triumph is in 
dispute, writes Canute James 


T he custodians of Jamai- 
ca's finances are cele- 
brating what they see as 
a significant change in the for- 
tunes of their economy. 

Since the beginning of the 
year, there has been a marked 
increase in the volume of for- 
eign currency in the commer- 
cial banking system, and the 
country’s foreign reserves have 
grown twenty-fold. This, they 
say. has contributed to several 
months of currency stability in 
Jamaicia. 

The underlying cause of 
these developments, however, 
has been questioned. It has 
been suggested this financial 
turn for the better has nothing 
to do with the performance of 
the economy, and that it could 
be temporary. 

Officials say it is government 
action which has brought sta- 
bility. 

The deregulation of Jamai- 
ca's foreign exchange market 
three years ago was followed 
by an S3 per cent depreciation 
in the value of the Jamaican 
dollar, following a fell of 67 per 
cent during the 1980s .Since 
January, however, flows of for- 
eign currency into the banking 
system have moved from about 
USS2m a day to about $5m a 
day. The country’s net interna- 
tional reserves have moved 
from to December to 

about $240m to June - equal to 
the import bill for about six 
weeks. The exchange rate has 
been stable for nine months. 

“This is the result of a suc- 
cessful policy,” said Mr Jac- 
ques Bussieres. governor of the 
central bank. "The tight mone- 
tary policy of the last year has 
helped to stabilise the 
exchange rate, restoring some 
confidence in the Jamaica dol- 
lar. This baa encouraged peo- 
ple to hold Jamaican dollar 
assets, leading to significant 
reflows of capital into 

Jamaica.” 

Mr Edward Seaga, the oppo- 
sition leader and a former 
finance minister, is far from 
convinced. During the period 
of increased foreign inflows 
and currency stability, there 
has been a decline in earnings 
by the leading sectors of the 
economy. “There is no underly- 
ing growth in the economy to 
support the inflow of foreign 
exchange claimed by the gov- 
ernment,” be contended. 

Jamaica's merchandise defi- 
cit in the first five months of 
this year widened to $374£m. 
550.4m more than a year ear- 
lier. and follows a trade gap of 
Sl.lbn last year. Marginally 
higher earnings from tourism 
will not close the gap. 
“Jamaica is in great danger by 


JAMAICA’S NET 
INTERNATIONAL RESERVES 

In millions of US dollars 


1983 -807.4 

1989 

-530.5 

1984 -623.6 

1990 

-447.8 

1985 -700.3 

1991 

-443.0 

1986 -768.1 

1992 

- 67.0 

1987 -538.1 

1993 

+ 12J5 

1988 -5352 

1 994 (Jun) +240.0 | 

Source: (Central) Bank of Jamaica 


proceeding cm the false prem- 
ise of having a safe reserve 
position," Mr Seaga said. 

The increased foreign cur- 
rency inflows followed the 
expansion of the network of 
licensed foreign exchange facil- 
ities. said Mr Rex James, presi- 
dent of the Banker’s Associa- 
tion. “Black market trading in 
foreign currency seems to have 
disappeared. Some money is 
also coming in because of 
higher interest rates here than 
might be available in the US." 
Jamaican banks’ interest rates 
on foreign curre ncy deposits 
are about 50 per cent higher 
than those prevailing in the 
US. 

This increase in currency 
inflows and the improvement 
in international reserves, how- 
ever. masks some continuing 
and chronic problems for the 
economy. Economic growth 
this year is not expected to be 
much higher than last year's 
L2 per cent - less than half the 
government's target. The baux- 
ite mining and refining indus- 
try and export agriculture 
( mainl y sugar an d bananas) 
are likely to record no more 
than the marginal growth 
expected by tourism. Despite 
the exchange rate stability of 
the past eight months, figures 
up to July indicate an annual- 
ised inflation rate of 32.7 per 
cent, following last year’s 30-1 
per cent. The fiscal pro- 
gramme, attempting to achieve 
a surplus, has adversely 
affected social services. 

Industrial unrest threatens 
as the government, ironically, 
becomes tbe victim of what its 
claims is a policy success. 
Reports of the improvement in 
the foreign reserves have coin- 
cided with a spate of hefty 
wage claims from public sector 
unions 

Despite repeated suggestions 
that illegal activities have con- 
tributed to the increased 
inflows, Mr James maintains 
“there is no evidence that 
money is being laundered in 
Jamaica”. Mr Bussieres con- 
curs: “While there is always 
the chance of some element of 
money laundering being 
attempted, the central bank 
has taken all steps to ensure 
that this is not happening." 



of private and public 

investment means 

a better quality of life,, a better 



qua. 

attracts more families, more families 

means a reliable source 

of workers both now and in 


To say Telford is an agreeable place 
both to live and work would be an 
understateme nL 

It is situated in some of Shropshire's 
most unspoilt countryside and commuting 
is a dream, particularly as Tcltord has over 
800 km of fast roads and only 6 sets of 
traffic lights. No wonder that this pleasant 
environment has attracted huge amounts 
of private investment. 

And also attracts young families. 
Telford’s percentage of people under 45 is 
higher than the national average. 

So while, in years to come, the number 



From 1994 to 2094 

you can reiv on a workforce in 

Telford. 


of school leavers will decline nationally, in 
Telford the numbers will actually increase. 

So you can be sure of a young, willing 
and adaptable workforce. 

A workforce that has been well 
trained or which you'll find can be trained 
to provide the special skills your company 
may require 

If you’re considering relocation, see 
Telford, then decide. You'll discover how 
quality of life dramatically improves 
quality of work. 

Cal! freephone 0800 16 2000 or com- 
plete the coupon for further information. 


Mr.Mre/Mj. 
Company 


Initials . 


To. Telford Enquiry Desk, Jordan House West, 
Surname 


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Title 

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0800 1 © 2000 


uZilil 

fwvuomTvr' «c*mcyI ' 


X 




4 


FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


NEWS: INTERNATIONAL 


There’s a whole 
lotta coffee in 
. . . Ethiopia 

There’s some good news at last 
in a country that has had more 
than its share of suffering, both 
natural and man-made, writes 

Hilary de Boerr 


F or a country usually 
associated with drought, 
famine and war, Ethio- 
pia has for once something to 
celebrate. Plentiful rains have 
raised hopes of a good harvest 
after 18 months of drought. 
And coffee prices are soaring 
because of frost and drought in 
Brazil, with Ethiopia among 
those reaping the benefits. 

In addition, the discovery of 
the world's oldest human fos- 
sils. solving the missing link 
between man and apes, is a 
source of pride to a much 
beleaguered people. 

Ethiopia earlier hit the inter- 
national headlines 10 years 
ago, when millions starved 
because of persistent drought. 
The country was back in the 
news this May, when govern- 
ment and aid organisations 
were warning of a potentially 
worse disaster this year; early- 
season r ains had failed and 
thousands were dying of hun- 
ger. An Ethiopian government 
delegation organised a world 
tour to drum up food dona- 
tions. 

A disaster may well be 
averted. Rains in much of the 
country have been heavy, and 
continue to foil. “The main sea- 
son's crop harvest is very very 
promising. If - and it’s a very 
big if - moisture continues for 
another few weeks then there 
will be a good harvest At the 
present time there is no indica- 
tion of an emergency situation 
in our areas in the coming 
months ahead." says Dr Geta- 
chew Diriba, of CARE Interna- 
tional, one of 160 non-govern- 
mental organisations operating 
in Ethiopia. Aid organisations 
working in other parts of the 
country echo his remarks, but 
stress emergency food will still 
be necessary until the harvest 
Coffee farmers are also 
getting a big break. World 
coffee prices have almost 
trebled this year because of 
Brazil's misfortune. Ethiopia's 
formers are therefore taking 
better care of their plants and 
sending more to the export 
markets. The country expects 
coffee exports worth $25Qm 
(£l58J2m) this year, compared 
with $100m in 1993. Coffee - 
which originated in Ethiopia 
and grows wild - accounts for 
more than half of the country's 
export earnings. 

Such good news stands out 
in a country struggling for the 
past three years with the 
transition to democracy after 
three decades of conflict which 
ended with the collapse of the 



Mengistu regime and 
independence for Eritrea. 
Ethiopia has 55m people - 
second only to Nigeria in 
Africa in population - and has 
one of the world's highest 
population growth rates. And 
while 85 per cent of the 
population is rural, eking a 
living from the land, the 
country is unable to feed itself. 

Even with a good harvest, 
the country needs an extra 
500,000 tonnes of cereals to feed 
its people each year. Add to 
that drought, pest infestation 
of crops, and the needs of 
people fleeing from ethnic 
conflicts, the return of exiled 
Ethiopians, refugees from 
Eritrea, and disabled 
servicemen, and the figure 
more than doubles. Food aid is 
a necessity for the foreseeable 
future. 

T here are other huge 
demands on the 
transitional 
government. The country’s 
infrastructure is severely 
under-developed. Roads, 
electricity and 

telecommunications all need 
huge investment - not only to 
make life bearable for 
Ethiopians but to attract 
foreign investors. People need 
such basics as schools, 
hospitals and jobs; in the 
capital, Addis Ababa, about 60 
per cent are unemployed, 
according to one study. Many 
of the jobless set up 
home-grown businesses selling 
necessities like injera - a 
pancake like bread - or they 
polish shoes, or guard cars, or 
beg. Many small businesses are 
being formed - from 
restaurants and travel agencies 
to fruit and vegetable stalls. 

But the government is 
moving in the right direction, 
against all odds, according to 
the World Bank. A structural 
adjustment programme is in 
place, involving a devaluation 
of the national currency, the 
birr, the introduction of 
market pricing and 
privatisation plans. 

Defence spending has been 
reduced by about two thirds 
while the education and health 
budget has doubled. 

“I will be hard put to find 
another African country in 
which such, a clear change is 
evident in just three years," 
says Abhay Deshpande, the 
resident representative for the 
World Bank in Ethiopia. 
Missi ng L ink, Weekend FT, 
page XXfl 

Coffee ' " ' 

2nd posttron fejture ($ per tonne) 

A000 


ETHIOPIA 


KENYA 


'S: 
s INDIAN 



1.000 •- 


INDIAN Jon 1994 

/ OCEAN souro* ft Gwp«t® 


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Thousands flee India’s killer plague 


By Stefan Wagstyl 
In New Delhi 

About 200.000 people have fled 
from the western Indian city of 
Surat, where plague has killed 
at least 44 people and left 
scores more sick in hospitals. 

The government put health 
authorities in Delhi and Bom- 
bay and other cities in north- 
ern and western India on alert 

a mid rarwinHng fears that the 

exodus from plague-infested 
Surat might spread the deadly 
disease. Mr Madhusudan 
Dayal, the health secretary, 
said the government was “seri- 
ously concerned" about the 
threat 

Mr Dayal, who put the death 
toil at 44, said the situation 
was under control and there 
was no cause for alarm. 

However, reports from Surat 
a city of 2m people about 160 
miles north of Bombay, put the 
number of dead at over 100, 
with hundreds more desper- 
ately ill. Buses and trains were 
crammed with people fleeing 
their homes, ignoring instruc- 
tions from the authorities not 
to leave the city. Police were 
trying to seal off the slums 
worst hit by the plague, where 
the first deaths were reported 
on Tuesday. Many residents 
stayed indoors, while people in 
the streets moved about with 
cloths covered in white DDT 
powder wrapped around their 
faces and municipal workers 
sprayed roads with chemicals. 

Doctors in Surat said that at 



least 24 people had died of 
pneumonic plague - a particu- 
larly dangerous variant of 
bubonic plague, the Black 
Death of the Middle Ages. 
Unlike bubonic plague, which 
is spread by the bite of an 
infected rat or of a flea which 
has previously been infected 
by a rat, pneumonic plague is 
air-borne and highly infectious. 
The Health Ministry in Delhi is 
frying to determine tint exact 
nature of the »wi Hnrf 

called upon technical help 
from the US and Russia. 

The authorities in Surat are 
distributing tetracycline, an 
antibiotic which acts as a pro- 
phylactic against plague is 
algo used in treating the dis- 
ease. Supplies are also being 
made at available at railway 
stations in Bombay and other 


A mother waits outride a hospital yesterday to admit her son, s u ffe r in g from highly infectious pneumonic plague 


cities to which Surat residents 
are fleeing. The government 
ha« rushed 10m capsules of tet- 
racycline to the region. 

The outbreak in Surat fol- 


lows another last month in 
central Maharashtra, where 81 
people have contracted 
bubonic plague in villages hit 
by an earthquake last year. 


Officials have as yet not 
established any link between 
the two outbreaks, the first in 
India in about 30' years. Surat 
a wealthy centre for diamond 


polishing and textiles, attracts 
many migrant workers. During 
fVm monsoon this summer, the 
dty suffered floods which may 
have helped the disease spread. 


South Africa holds its breath over Zulu split 

As Shaka’s descendants square up, Mark Suzman looks at the bigger issues around the power struggle 


S baka. the 19th-century 
founder of the Zu lu king- 
dom. was an African 
Napoleon who, like his Euro- 
pean contemporary, used his 
military genius to forge a new 
empire. In the process he 
caused tremendous political 
and economic upheaval 
throughout the southern Afri- 
can region. 

As South Africa's 9m Zulus 
decide whether to observe 
today’s Day, an animal 
commemoration of the murder 
of Shaka by his brothers in 
1828,' millions of other South 
Africans will be hoping the 
occasion does not mark the 
start of renewed violence In 
the KwaZulu/Natal province, 
and, by extension, cause seri- 
ous damage to the spirit of con- 
sensus and reconciliation that 
has characterised the country’s 
politics since its elections in 
April. 

Although the event has been 
held since 1954, this year is the 
first time Shaka Day does not 
have the blessing of the Zulu 
monarchy. Earlier this week. 
King Goodwill Zwetithini 
announced he was canceQing 
the ceremonies and called 
instead for a period of peace 
and prayer to be observed by 
Zulus countrywide. 

The derision was apparently 
precipitated after Fnkatha sup- 
porters stormed the royal pal- 
ace in Nongoma on Monday 
night after a meeting between 
the king, Chief Mangosuthu 
Buthelezi. home affairs minis- 
ter and leader of the Inkatha 
Freedom party which has polit- 
ical control of KwaZulu/Natal, 
and President Nelson Mandela. 
The discussion had been 



King Shaka meets lieutenant F G Farewell of Britain’s Royal 
Navy in March 1824 (as depicted in the Illustrated London News, 
1902). King Shaka asked about King George, about the size of his 
army, the nature of his government and country, the size of his 
capital, and the number of his cattle and wives. 


called to resolve a controversy 
over the king's apparent invi- 
tation to Mr Mandela to attend 
the Shaka Day celebration - a 
move which Chief Buthelezi 
objected to, ostensibly on the 
grounds that protocol had not 
been followed. 


After making his announce- 
ment, however, the king set 
the stage for open confronta- 
tion between his supporters 
and those loyal to Inkatha. Dis- 
missing the king’s call. Chief 
Buthelezi said the monarch 
had no authority to cancel the 


occasion, which belonged to 
“the Zulu nation as a whole". 

As a result there is now seri- 
ous concern that today's cele- 
brations will lead to outbreaks 
of violence between Zulus hon- 
ouring the king’s eawrpllaHmi 
request and those who have 
chosen to support Chief Buthe- 
lezi’s stand. In a province 
where thousands of people 
have been killed over the past 
decade in intemi»cing clashes 
between Zulus loyal to fakatha 
and Zulus loyal to the African 
National Congress, such fears 
may well be justified. 

Prior to the elections, the 
king had been associated with 
Inkatha. an explicitly Zulu 
nationalist organisation that 
has been dominated by Chief 

Rift helpri rinra ftg fhrmation rn 

1975. Since April, however, the 
two rulers have been steadily 
drifting apart and King Good- 
will’s attitude to the ANC has 
thawed notably. . 

After his Shaka Day declara- 
tion, moreover. King Goodwill 
declared his desire to stay 
above politics, and dismissed 
Chief Buth e lez i from bis honor- 
ary role as traditional "prime 
minis ter” to the monarchy, 
apparently replacing him with 
a former regent. Prince Mcway- 
izeni Zulu, who is a member of 
the ANG 

This move strikes at the 
heart of Chief Buthelezi’s 
power base. For decades he has 
played on, and largely created. 
Zulu nationalist ideology to 
consolidate his own power 
base. In the elections he ruth- 
lessly exploited tribal fears to 
drum up support 

Central to this message is 
the association with Shaka. 


from whom both Chief Buthe- 
lezi, who is the mug’s unde, 
. and King Goodwill himself, 
claim direct descent Over the 
years, Shaka Day has evolved 
into tiie central focus- of Zulu 
nationalist ideology, and Chief 
Buthelezi «nd the king have 
traditionally presided jointly 
over the formal ceremonies at 

the Shaka mnmmipnt in the 

town of Stangar. 

Dressed in traditional leop- 
ard-skin robes, and preriding 
over hundre ds of assegai-wield- 
ing hnpi regiments and thou- 
sands of ululating women. 
Chief Buthelezi bag tradition- 
ally used the event to extol 
Shaka’s greatness, and, by 
extension, his own as the mod- 
ern-day successor to the war- 
rior monarch. 

By withdrawing from the cel- 
ebration, the king, as the living 
embodiment of the monarchy 
established by Shaka, severely 
damages the event’s credibil- 
ity. However in doing so, he 
has played his strongest card, 
while Chief Buthelezi remains 
able to use both the regional 


government and Inkatha’s 
powerful organisational and 
patronage network to consoli- 
date his support 

As a result, while some 
prominent ANC-supportlng 
Zulus (not in the past known 
for their royalist sympathies) 
have declared themselves in 
favour of the king's it 
appears that the chief has so 
for managed to retain tbs alle- 
giance of most of the conserva- 
tive tribal chiefs who comprise 
Inkatha's core constituency: . 

Nevertheless, the situation 
remains fluid and to try and : 
«ihn tensions , both President 
Mflmtelfl and -Mr Frank Mdla- 
lose, KwaZulu/Natal regional 
premier, have made a public 
call for all Zulus, whether 
observing the ceremonies or 
not, to marie the day as (me cf -.j 7 
"unity and reconciliation". 

Meanwhile, the army has 
been called out to monitor the 
situation and the king has 
been evacuated from his palace 
by national troops and taken to 
an undisclosed location for the 
weekend. 


Rebuilding work helps Lebanese 
economy to 8% growth rate 


By Mark Nicholson hi Beirut 

Lebanon's economy has 
recovered from this year's fal- 
tering start and Is on course to 
reach government targets of 8 
per cent a year growth, accord- 
ing to Banque de Liban, Leba- 
non's central bank. 

However, real wages remain 
depressed, prompting protests 
from labour and other groups, 
while economists say sustained 
high interest rates continue to 
tempt repatriated funds into 
Lebanese town treasury bills 
rather than productive direct 
investment 

Economists at Banque Audi, 
the commercial bank which is 
among the first to publish 
detailed economic data, said 
that, after reaching 7 per cent 
in 1993, growth in the tofcmese 
economy slipped back in the 
first quarter, recovering only 
in the second to raise real 
growth rates during the first 
half of 1994 to 75 per cent 

The bank forecasts real 
growth of s-10 per cent for 1994 
as a whole. Mr ftfad Salame. 
the central bank governor, 
said: "From our data, the econ- 
omy went through a slowdown 
from August 1993 to April 1994, 
but has been recovering since 
May. July and August have 
been particularly good 
months.” 

However, both Mr Salame 
and other economists warned 
that there were few reliable fig- 
ures on the economy since the 
end of Lebanon's civil war 


three years ago. Lebanon's 
reconstituted central statistical 
department only recently pub- 
lished its first economic data 
since 1974. 

Growth estimates are there- 
fore based on a mix of mone- 
tary aggregates, i ndic e s such 
as cement sales, the award of 
construction permits, port and 
airport traffic and some indus- 
trial and agricultural data. 

Construction, in particular, 
has remained strong, with the 
latest central bank monthly 
bulletin showing cement deliv- 
eries and construction permits 
in July up 35 and 20 per cent 
respectively over the same 
month last year. However, the 
bulletin also said: “Excess sup- 
ply on the real estate market 
has resulted in large Invento- 
ries of unsold dwellings.” 

The bulletin said foreign 
trade remained sluggish, with 
imports and exports down 19 
and U per cent respectively in 
July from a year earlier. But it 
said the trade deficit foil by 20 
per cent in July after widening 
by 10 per cent in the first halt 

The balance of payments 
recorded an overall deficit of 
S27m due largely to an excep- 
tional $135m transfer overseas 
by Solidere, the property com- 
pany established by Arab 
investors this year. 

But the bulletin also said 
strong capital inflows and 
revived tourism had produced 
an underlying surplus of 
SI 07 m. The bank said balance 
of payments surpluses had 


averaged S80m a month since 
February. 

Mr Salame said about $l0bn 
had flowed into Lebanon since 
the end of the war in 1990, the 
bulk of it repatriated Lebanese 
capital and Gulf Arab funds. Of 
this, he said, about $6bn went 
into Lebanese bank deposits 
and most of the rest into Leb- 
anese pound treasury bills. He 
said $3 bn had flowed in during 
the past year, half into T-biHs. 

With T-bill rates hovering at 
around 19 per cent, economists 
said these would continue to 
attract significant inflows of 
cash and interest rates look sot 
to remain high in real terms ~ 
with domestic inflation at 10 
per cent a year - while the 

government endeavoured to 
keep the Lebanese pound sta- 
ble at about £L1660-1680 to the 
dollar In an effort to “de-doUar- 
ise” one of the Middle East’s 
most dollarised economies. 

“We obviously need to have 
more money flow into produc- 
tive investment.” Mr Salame 
said. "But we don't yet have 
the proper infrastructure in 
place to attract capital into 
these sectors." He said sub- 
stantially greater flows of pro- 
ductive investment were 
unlikely until the completion 
of some of the multi-bfllion-dol- 
lar infrastructure projects 
under way and the revival of 
Lebanon's capital markets as 
an effective investment inter- 
mediary. 

So for this market comprises 
only domestic T-bills and a sec- 


ondary market in Solidere 
shares, which have soared 
from their issue price of $100 to 
$170 in recent weeks. A stock 
market committee has been 
reappointed and is discussing 
regulatory changes necessary 
for the revival of a fully 
fledged Beirut stock market. 
Mr Salame said he believed 
market could begin operations 
within months, with as many 
as 10 previously listed compa- 
nies being traded. 

However, the fruits of Leba- 
non's economic growth are 
proving slow to trickle down to 
the bulk of middle- and 
lower-class workers in the 
country, whose cause has 
recently been taken up by 
Labour unions and political 
leaders in a string of attacks 
on government economic poli- 
cies and their reconstruction 
priorities. 

The General Confederation 
of Lebanese Workers this week 
said it was seeking a retroac- 
tive pay rise of 88 per cent to 
compensate for recent price 
rises and the decline in real 
wages. But Mr Salame said 
that, while the government 
realised real wages had fan™, 
it would resist such pay rises 
unless they were matched by 
increased productivity. He said 
the government was concerned 
above all to contain the infla- 
tionary effects of the recent 
spurt in economic activity, 
much of it spurred by the 
recent award of a host of large 
infrastructure contracts. 



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P } Objective analysis for professional investors 

0962 879764 

1 K t. \ 1.) Fiennes Howe, 32 Ss-j&gjie Street. Winchester, 

i i - : •• : i i i i: Hjr.ts 5023 SEH Fat 0424 774C67 









FINANCIAL times WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


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


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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 while, 
if you r company makes a significant 


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 















-Al* 1 


FINANCIAL TIMES WEEKEND 


SEPTEMBER 24/SEPTEMBER 


25 1994 


NEWS: UK 


Building societies face structural review 


Adams 
to land 


By Alison Smith 


A Ear-reaching government review of 
the way building societies operate, 
including how they are accountable 
to the millions of customers who 
own them, was launched yesterday. 

The consultation paper published 
by the Treasury has already re- 
ignited the debate on how to enable 
societies to compete effectively in 
retail financial services without giv- 
ing them an unfair advantage over 
other organisations. 

Mr Adrian Cotes, director-general 
of the Building Societies Associa- 
tion, welcomed the paper with the 
comment: “Everything is up for 


grabs except building societies." 

As mutual institutions, societies 
are owned by members rather than 
being responsible to shareholders. 

Their critics - which include 
Abbey National, the banking group 
which used to be a society - say that 
this system of ownership means 
boards of directors are not account- 
able to members In the way boards 
of piddle limited companies are. 

The Treasury raises the prospect 
of making societies more account- 
able through setting up consultative 
Committees of members or requiring 
societies to reserve some board 
places tor candidates nominated by 
“ordinary members”. 


Among the subsidiary questions is 
whether societies should be able to 
vary the existing voting system 
which gives members one vote each 
- for example to take account of the 
amnmit of their bumness. 

In terms of streamlining societies' 
powers, the suggestions in the Trea- 
sury paper include: 

• Changing from the current, pre- 
scriptive regime to one where societ- 
ies can undertake any busin ess, sub- 
ject to a principal purpose and 
certain limits on their asset struc- 
ture. 

• Adopting a two-track approach in 
which some, probably small, societ- 
ies continue under a restrictive sys- 


tem, but others could seek agree- 
ment to operate within a more 
relaxed framework. 

• Giving societies access to the 
banking sector by letting them own 
ha ^k m g subsidiaries, or by allowing 
them to convert into mutual banks 

The paper makes it clear that the 
government does not intend to look 
again at the statutory controls that 
mak e a hostile takeover of a society 
impossible, but it does consider 
some liberalisation of the arrange- 
ments for mergers between two soci- 
eties. 

Building societies generally wel- 
comed the discussion paper, though 
Halifax the UK's largest mortgage 


lender, said the relatively slow pace 
of progress on questions of giving . 
the sector greater powers was “dis- 
appointing". 

There was a rejection of the idea 
that there mi ght be a shortfall in 
societies' answerability to their own- 
ers, and building expressed 

misgivings about the two specific 
proposals for. enhancing their 
accountability. Halifax described 
these proposals as "a solution in 
search of a problem", and other soci- 
eties criticised the idea of a consulta- 
tive committee as unworkable and 
bureaucratic. 

However Mr Peter Robinson, man- 
aging director of Woolwich, the UK's 


third largest, acknowledged that 

there was a need for an “attitudinal 
change* among societies which 
should be readier to help ordinary 
members who showed interest in 
ahmiUng for election as directors. 

Mr Peter Birch, Abbey National 
chief executive, dismissed the 
paper's accountability proposals. 
Among Ms suggestions was that cus- 
tomers -should get an annual state- 
ment Tnairtng it dear whether they 
were members and telling t h e m the 
value of their membership. 

The Treasury intends to complete 
the review by the end of the year, 
and ba« - asked for comments by 
November 9. 


in US 
today 


By George Graham 
In Washington 


Women 


directors 


slam big 
payouts 


High compensation payments 
in sex discrimination cases 
against the Ministry of Defence 
and extended maternity leave 
rights have done more harm 
than good to women's Job pros- 
pects, the Institute of Directors 
said yesterday, Richard 
Donkin writes. 

Two-thirds of women direc- 
tors surveyed by the institute 
believed that the awards to 
servicewomen who were 
sacked after becoming preg- 
nant had damaged women's 
employment prospects. 

More than half thought wom- 
en's Job prospects had been 
hindered by extended mater- 
nity rights and pay. 

Almost two thirds of the bus- 
inesswomen said they did not 
believe equal opportunities for 
women existed, although the 
proportion who believed this 
was less than in 1991 when the 
IoD last carried out a similar 
survey. Three years ago three- 
quarters of those questioned 
thought there was inequality 
In the workplace. 


Portsmouth Water 
fights price curb 


Portsmouth Water is to take its 
dispute with Mr lan Byatt, the 


water industry regulator, over 
the recent price review to the 
Monopolies and Mergers Com- 
mission. 

Earlier this week South West 
Water became the first water 
company to call on the MMC to 
review Ofwat’s findings. 

Portsmouth, which has the 
lowest domestic water charges 
in England, an annual average 
of £69, has been ordered to 
hold price rises to 1.5 percent- 
age points below inflation - 
the third lowest increase 
among water supply compa- 
nies. 


Rail talks continue 
over weekend 


Competition call 
on lottery projects 


C&G bid decision 


Milk case deferred 



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The search continues: prison officers and dog handlers combed Wfaktemoar Jail in Cambridgeshire yesterday after the discovery of semtex explosive and the recent escape attempt by five ISA prisoners 


No. 10 rallies to Howard after jail semtex find 


By Roland Rudd 


The prime minister yesterday made it 
clear that he would continue to back 
mb' Michael Howard as home secre- 
tary following the discovery of sem- 
tex explosive in Whltemoor jail. 

Downing Street acknowledged that 
the incident was a matter of concern 
for the government bat stressed that 
the home secretary continued to 
enjoy Mr John Major’s “fall support”. 

However, oae minister and several 
backbenchers privately predicted 
that Mr Howard may be forced to 


resign. A senior member of the Con- 
servatives' 1922 backbench commit- 
tee said: "Unfortunately for Michael 
(Howard] this is one dtp too many. 
He looks incompetent and may have 
tog©.* 

Mr John Bartell, chairman of the 
Prison Officers’ Association, called 
on Mr Howard to resign. “If yon 
worked in one of Britain’s prisons 
today and yon had to face the 
unchecked criminality, the daily vio- 
lence and the daily breakdown in 
control, I think you would share onr 
sentiments," he said. 


Mr Alan Belth, Liberal Democrat 
borne affairs spokesman, urged the 
mime minister to take control of the 
situation by replacing Mr Howard as 
home secretary. The Labour party, 
however, while critical of Mr 
Howard’s performance, stopped short 
of Miiing for his dismissa l. 

Mr Howard said he had no inten- 
tion of resigning. "I have a job to do 
and I'm determined to see it 
through," he said. 

ms officials made it clear that he 
would get to the root of the problem 
at Whitemoor, the Cambridgeshire 


prison that was the seme of a failed 
escape by five IRA terrorists and a 
convicted armed robber this month. 

Hr Howard told journalists at 
Reading University In Berkshire, 
where he was giving a speech on race 
r elations: “The Whitemoor tnddents 
are being looked at, a fuller inquiry 
is taking place and I shall be drier- 
mined to learn every lesson posable 
to be learned from it" 

The home secretary has faced a 
series of embarrassing defeats in the 
Commons this year which have given 
ammun ition to his opponents. 


Mr Howard was forced to back 
down on a proposed shake-up of the 
cr iminal justice system involving a 
big increase in the home secretary^ 
n fflnwite over police authorities and 
the introduction of contracts for Jus- 
tices’ clerks, who advise magistrates. 

Conservative peers went on to 
inflict five significant changes to the 
criminal justice MIL 
In the Commons Mr Howard was 
forced to promise action against vio- 
lent videos to head off a widely sup- 
ported amendment by Hr David 
Alton, tiie Liberal Democrat MP. 


Mr Gerry Adams, the Sinn 
Fdin leader, is due to arrive in 
Boston today for his second 
visit this year to the US. 

American officials confirmed 
that the administration had 
waived restrictions that would 
normally have prevented Mr 
Adams from receiving a visa 
because of bis associations 
with terrorism in Northern 
Ireland. 

His stay is limited to two 
weeks, with fund-raising ban- 
ned. However, Mr Adams's visa 
allows him to visit nine cities 
- on his last visit, in February, 
he was restricted to New York 

Mr Adams will not be 
received by Mr Bill Clinton, 
the president, or by Mr A1 
Gore, the vice-president - 
unlit™ Mr John Hume. leader 
of the moderate Social Demo- 
cratic and Labour party, who 
visited Washington this week. 
Mr Adams will, however, meet 
senior administration officials 
and members of Congress - 
starting with Senator Edward 
Kennedy at Boston Airport 
today. 

Mr Ken Maginnis, one of the 
three-strong delegation of 
Ulster Unionist MPs who also 
visited Washington this week, 
said that his party, in spite of 
some reservations, was not 
opposed to Mr Adams receiving 
a visa, "in so far as there Is a 
ceasefire". 

Bnt other members of his 
party were more critical. 

Mr Jeffrey Donaldson, UUP 
secretary, said: “We don’t 
think it’s a good idea because 
there is a danger that Gerry 
Adams's role is going to be 
hyped out of all proportion 
... At the end of the day it’s 
electioneering by Ted Kenn- 
edy ” 

Ulster Unionists said that 
they had found the Clinton 
administration even-handed 
but wanted to sound "a con- 
stant note of caution” in Wash- 
ington because "in our view 
there Is a measure of euphoria 
which is not Justified". 


Balance of payments eases City fears 


ByGWanTett, 
Economics Staff 


Talks aimed at ending the 
three-month railway signalling 
dispute ore set to continue 
over the weekend as the RMT 
transport union and Rail track, 
which runs the rail network, 
negotiate a package of mea- 
sures to modernise working 
practices among the signal 
workers. 

During yesterday's 24-hour 
strike by signal workers an 
estimated 61 per cent of the 
rail network was open with an 
estimated 53 per cent of ser- 
vices operating normally. 
Plans are still in place for a 
46-hour stoppage from mid- 
night on Wednesday. 


Fears that economic recovery 
might create a serious balance 
of payments problem were 
eased further yesterday by fig- 
ures showing a significant 
improvement in the balance of 
payments position. 

The Central Statistical Office 
said the UK current account 
deficit was £0.7bn in the sec- 
ond quarter of this year, down 
from the previous quarter's 
deficit of £1.3bn. 

The deficit was considerably 
smaller than the City had 
expected, and economists wel- 
comed it as evidence that the ' 


UK recovery was proceeding at 
an increasingly healthy pace. 

Mr Paul Turnbull, UK econo- 
mist at brokers Smith New 
Court, said: “A year ago a lot 
of people were forecasting that 
the balance of payments would 
spiral out of control. In fact the 
opposite has happened." 

One reason for the improve- 
ment was that exports grew 
steadily In the second quarter 
white imports fell slightly. 
Most analysts expect this trend 
to continue, not least because 
of the rapid recovery in Europe 
and other big export markets. 

The other reason for the 
improvement was that the sur- 
plus on “invisibles" remained 


at the same high level in the 
second quarter. Invisibles 
cover services, investment 
incomes and financial trans- 
fers. 

Although the Invisibles 
account is considered to be 
notoriously volatile, most City 
analysts had expected it to fall 
bade in the second quarter of 
the year after surging suddenly 
in the first three months. 

The surplus on invisibles 
was £L7bn in the second quar- 
ter. unchanged on the first 
quarter and sharply up from 
the same period a year ago 
when the surplus was £&2bn. 

This fiat overall figure, how- 
ever, concealed a significant 


shift in the different sectors. 
The surplus on services fell to 
£0.8bu, down from £1.2bu in 
the first quarter, mainly 
because of a fall in the surplus 
on financial services. This drop 
reflected a lower surplus in the 
insurance sector and some 
weakening in activity by 
security markets, the CSO 
said. 

The surplus on investment 
income, by contrast, rose to 
£2.4bn in the second quarter, 
up from £l.9bn in the first 
quarter and sharply higher 
than the same period a year 
ago when the surplus was 
£0.4bn. 

The main reason for the 


increase, the CSO said, was a 
large inflow of investment into 
the UK in the second quarter 
after a large flow of investment 
abroad in the first three 
m onth s. 

Mr David Hellier. UK econo- 
mist with Nat West Markets, 
said: “This reflects Instability 
in the financial markets. A lot 
of people have been repatria- 
ting funds and that has domi- 
nated the flows.” 

Meanwhile, the deficit of 
tending and borrowing by UK 
residents other than banks and 
the government fall considera- 
bly to £lbn in the sec o nd quar- 
ter, down from the high level 
of £L7bn in the first quarter. 


Tourism body 
claims 12.3% 
stake in GDP 


By Michael Skapfetker, Leisure 
Industries Correspondent 


Company surpluses break 
records as profits surge 


Corporate profits carry on climbing 


Gross trading tsoflts of ttW 
Corporate sector, £bn* . 

24, 


. financial balance of MdusOM and 
corenurofai corapttfe*' an 

— : — 6 


By GSUanTett 


A group representing arts and 
heritage organisations 
appealed yesterday for archi- 
tectural competitions to be 
held for large capital projects 
funded by the National Lot- 
tery. 

The arts and heritage work- 
ing party, which includes rep- 
resentatives of the Arts Coun- 
cil of England, the National 
Heritage Fund, the Sports 
Council and the Royal Fine Art 
Commission, wants to ensure 
that buildings for which the 
lottery contributes at least Elm 
of capital funds are well 
designed, well constructed and 
of high quality. 


The financial surplus in the 
corporate sector reached 
record levels in the second 
quarter of the year, as profits 
rose to a new high while 
Investment and dividend pay- 
ments remained relatively flat 

The Central Statistical Office 
said yesterday that the level of 
undistributed income in the 
corporate sector was £L7.lbn in 
the second quarter. 5.6 per cent 
higher than in the first quarter 
and 525 per cent higher than 
in the same period last year. 

The key reason for the rise 
was a surge in corporate profit- 


ability. Company gross trading 
profits rose to £21.63bn in the 
second quarter, 6-2 per cent 
higher than in the first quarter 
and 22.7 per cent higher than 
in the same period a year ago. 

Much of the growth was due 
to the oil and gas sector, where 
profits were £2£5ba in the sec- 
ond quarter, 38.5 per cent 
higher than in the first quar- 
ter. The main reasons for the 
growth, the CSO sate, were 
that new North Sea Grids had 
come an stream and oil prices 
had risen. 

Profitability, however, also 
rose in the noa-North Sea sec- 
tor. with second-quarter total 


gross trading profits 1.6 per 
cent higher than in the first 
quarter and 17.3 per cent 
higher than the same period 
last year. 

In spite of this rising profit- 
ability, total investment dipped 
fractionally in the second quar- 
ter, partly because of a reduc- 
tion in public investment pro- 
jects. 

Meanwhile, dividend pay- 
ments remained below 1993 
levels. Although total dividend 
payments were 6.9 per cent 
higher in the second quarter, 
compared with the first quar- 
ter, they were 18.9 per cent 
below 1993 's second quarter. 



10SS- 90 91 92 93 94 
Sour* CSO 


1969 90 Of -92 93 9* 

‘Moron prices 


Company borrowing, how- 
ever, fell back in the second 
quarter, indicating that many 
companies were using their 
cash to pay back previous 
debts. 

The level of corporate bor- 
rowing from banks fell to 


£&25bn in the second quarter, 
23 per pyn* lower *b«ti vn the 
first quarter. 

Meanwhile, borrowing from 
other financial institutions fell 
to £5.67bn, more than 40 per 
cent lower than in the first 
quarter. 


The tourism industry is far 
bigger than previous estimates 
have suggested and produces a 
balance of trade surplus rather 
than the deficit reported in 
government statistics, the 
World Travel and Tourism 
Council said yesterday. 

The council, which was set 
up in 1990 by a group of travel 
industry chief executives, said 
that tourism would account for 
123 per cent of gross domestic 
product next year. The travel 
industry would employ 3.2m 
people directly or indirectly - 
12.4 per cent of the workforce. 

The council's figures are far 
higher than those in the statis- 
tics produced by government 
depa rtments a nd tourist indus- 
try bodies. A study of tourism 
published by file Confederation 
of British Industry in May said 
government figures indicated 
that the industry accounted for 
5.6 per cent of GDP and 
employed 1.4m people, or 6 per 
cent of the workforce. 

Mr Geoffrey Lipman, the 
council’s president, said previ- 
ous figures took account of 
spending on hotels and other 
tourist services but did not 
include travel-related invest- 
ment, such as building hotels 
and aircraft 

Mr Lipman said that, taking 
these industries into account. 


tourism had consistently 
produced a big balance of 
payments surplus, aided by 
British-based aircraft manufac- 
ture and hotel construction 
abroad by UK companies. 

The council said that, taking 
these industries into account, 
the tourism balance of pay- 
ments surplus was £4Jbn in 
1992. This compares with gov- 
ernment statistics which 
recorded a £3.4bn deficit In 
1992. The council shows a sur- 
plus for every year from 1987 
to 1992 - when official statis- 
tics recorded deficits. 

Mr Lipman said the co uncil 
- whose executive committee 
members include Sir Colin 
Marshall, chairman of British 
Airways, and Sir John Egan, 
chief executive of airports 
group BAA - had presented its 
study to Lord Astor, the tour- 
ism minister , 

He said the council's figures 
showed that tourism was an 
industry which should enjoy a 
far higher profile in govern- 
ment policy and decteion- 
making than It did. 

Mr Lipman criticised the 
decision, announced in last 
year's budget, to introduce a 
departure tax of £5 for flights 
in the European Union and £10 
for flights elsewhere. He said 
that as a successful export 
industry tourism should 
receive tax incentives rather 
than additional burdens. 


Major plays for success all round the political park 


Mr Michael Heseltine, the 
trade and industry secretary, 
has decided not to refer to the 
Monopolies and Mergers Com- 
mission the planned acquisi- 
tion by Lloyds Bank of 
Cheltenham & Gloucester 
Building Society for £1.8bn 
cadi. 


A ruling in the High Court on 
the Dairy Trade Federation’s 
application to seek judicial 
review of the government’s 
Plans for the £3 Jbn milk mar- 
ket in England and Wales was 
yesterday deferred to Monday. 


Arms stretched high, fingers 
stabbing the sky, Mr John Major 
glowed with pride as cheers rolled 
around the crowd watching him 
howl at South Africa's Alexandra 
township cricket ground. 

It was a spontaneous gesture that 
revealed, for a fleeting moment the 
human being inside the grey suit. 
What a pity, Mr Major must be 
reflecting, that the cheers were only 
for his cricket skills. 

The prime minister describes him- 
self as a "sports nut". Yet he would 
give up sport for good in exchange 
for that kind of enthusiastic support 
for his government, dogged by the 
fall-out from recession, internal 
squabbling and ridicule of the 
ill-fated back-to- basics campaign. 

Mr Major is unlikely to be offered 
a better opportunity to rise above 
domestic troubles and play the role 
of world statesman than the six-day 
official trip to Saudi Arabia. Abu 


Dhabi and South Africa that ended 
with his return to Loudon yesterday. 

The Gulf visits were largely about 
maintaining dose relationships with 
political and business allies, spiced 
by the promise of defence orders and 
privatisation consultation fees from 
the Saudis. 

But the South African visit was 
the first by a British premier since 
Harold Macmillan’s “wind of change” 
speech in I960, which signalled the 
start of the white government's 
34-year international isolation. 

Mr Major’s speech, worthy but 
dull, is unlikely to be remembered 
34 years on. But it was well received 
by most shades of political opinion, 
and the visit was regarded on both 
sides as a modest success. In particu- 
lar. British officials were pleased by 
clear indications that Mr Major's 
down-to-earth focus on concrete 
assistance Impressed more than the 
high-flown but insubstantial rhetoric 


Kevin Brown says that cricket cheers 
in South Africa may find an echo 
on the prime minister’s home wicket 


of President Mitterrand of France, 
the first western leader to visit after 
free elections ended white rule. 

The most striking aspect of the 
trip was the absence of the domestic 
fireworks that have followed Mr 
Major abroad on previous occasions. 
His trip to Japan and Malaysia a 
year ago, for example, was domi- 
nated by the question of his survival 
as prime ministe r ami d acrimonious 
bickering between the party’s pro 
and anti-Europeans. 

Aides say the prime minister has 
been buoyed by Urn success of the 
UK-Irish peace process and the 
Improved economic outlook, which 
he believes will deliver two more 


years of solid growth before the next 
election. Mr Major made the eco- 
nomic point strongly in Saudi 
Arabia, telling British businessmen 
that prospects were better than at 
any time since 1945. 

Talking to Journalists in the gar- 
den of the high commissioner’s resi- 
dence in Pretoria, shortly before 
leaving for home, the prime minister 
avoided the temptation to confirm 
that be believed his premiership was 
at a turning point "No wise politi- 
cian ever says that," Mr Major 
explained cautiously. But the upbeat 
time of the rest of his remarks told a 
different story, in tone with his 
relaxed and confident appearance. 


"Politics is a soles of mantraps," 
he said. “But there are a series of 
things we have been doing together 
for die last lour years which are now 
beginning to come together. People 
are beginning to see the fruits." 

Mr Major’s advisers believe the 
first political rewards emerged In 
last week's ICM opinion poll for the 
Guardian, which put the Conserva- 
tives only 12 points behind Labour 
after adjusting for the factors that 
ICM believes caused inaccurate poll- 
ing before the 1992 election. 

Significantly, Mr Tony Blair, the 
Labour leader, also believes the Con- 
servatives trail the opposition by far 
less than the 20 points to 30 points 
repotted by many polling organisa- 
tions over the last year. 

Mr Major thinks he will gain fur- 
ther support from a successful party 
conference in Bournemouth next 
month. There will be criticism - 
notably over the government’s law 


and order record - but the prime 
minister's hold on power will not be 
seriously questioned, for the first 
time in three years. 

Advisers say Mr Major knows 
there are still many pro blems ahead. 
The Northern Ireland peace process 
could break down, sparking renewed 
violence; the European issue could 
return to haunt the government 
when a bill to Increase payments to 
the European Union is tabled later 
this year; the truce with the Tory 
rtfjhtwtag could dissolve, as a brief 
spat with Baroness Thatcher over 
South African economic prospects 
demonstrated; and the July reshuffle 
has failed to end the impression of a 
tired and inept cabinet 

But Mr Major’s position is demon- 
strably stronger than a year ago. He 
looked confident in South Africa, 
especially with his jacket and tie off 
°u cricket field. Perhaps he 
should let his hair down more often. 


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FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


UK 


Coal faces PM probed on NHS chief’s Bupa job 


Hi renewed 
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By Mrchaei Smith 

The threat to coal from other 
fuel sources was underlined 
yesterday when Midlands Elec- 
tricity and three overseas com- 
panies said they had reached 
agreement on financing a 
750MW gas-fired power station 
on Humberside. Construction 
of Humber Power will begin 
immedia tely. 

As with several other 
planned gas stations, plans for 
Humber Power were put on 
hold after an agreement in 
February between the electric- 
ity regulator and the two larg- 
est UK generators to peg prices 
in the wholesale power pooL 
Yesterday’s announcement 
dashes coal Industry hopes 
that the pricing agreement 
would end the so-called “dash 
for gas". Further gas-fired 
. power stations are a lso being 
' considered. 

British Gas is thought to be 
considering whether to partici- 
pate in a 1.200MW station at 
Seabank, near Bristol, while 
Eastern Electricity is negotia- 
ting on a 350MW station at 
King’s Lynn, Norfolk. 

The Humber Power station 
alone could displace 2m tonnes 
of coal a year from the market 
when it is completed in April 
1997. This would rise to more 
than 3.5m if the project’s 
partners build a second phase 
of the station, taking the 

Witness 
tells of 
Walker 
quandary 

By John Mason, 

Law Courts Correspondent 

The integrity of Brent Walker, 
the property and leisure 
group, would have suffered if 
the company had been forced 
to announce that profits had 
been wrongly declared, a for- 
mer non-executive director 
said at the Old Bailey yester- 
day. 

Mr John Lewis, a board 
member for most of the 1980s, 
was giving evidence in the trial 
of Mr George Walker, the com- 
pany's former chief executive, 
and Mr Wilfred Aqinhna, a for- 
mer finance director. 

The two men, accused of 
fraudulently boosting the com- 
pany's profits by £17m between 
1984 and 1987, deny charges of 
theft, false accounting and con- 
spiring to falsify accounts. 

Mr Lewis said that in the 
1980s boom, unlike today, prop- 
erty companies were judged 
less by their profits record and 
more by their total asset 
value. 

He agreed, however, with Mr 
Peter Rook QC, prosecuting, 
that the bulk of Brent Walker's 
property acquisitions were in 
the late 1980s. Had the com- 
pany announced in 1988 that 
earlier profits had been over- 
stated then the markets' reac- 
tion would have been adverse. 
Mr Lewis said. 

Earlier, Mr Lewis told the 
court how Brent Walker’s 
b anks always put pressure on 
Mr Walker to use his personal 
wealth to back the company's 
expansion. This occurred in 
cases such the development of 
Brighton Marina. 

Mr Lewis said he had always 
opposed this policy, arguing it 
was wrong for a public com- 
pany to operate in this 
way. 

He said: “Whenever I learnt 
about it I objected to Mr 
Walker both on the basis of the 
company’s interest and his 
own. 

“I did not think it was right 
for a public company with out- 
side shareholders to need to 
call on one shareholder’s 
resources to support a business 
proposition. 

“It could either stand up or it 
could not." 

Mr Walker ignored his objec- 
tions. Mr Lewis said: “I 
thought he was being silly. I 
told him that many times. His 
attitude was that the banks 
required it and that we could 
not do the deal without him 
putting up money - to which 
my retort was perhaps we 
should not be doing the 

Mr Lewis was the last of 71 
witnesses to give evidence in 
the trial. 

The jury was told that Mr 
Aquilina had decided not to go 
into the witness box to give 
evidence. 

The trial continues on Mou- 
d:iv with the prosecution’s 
dosing speech. The Jury b set 
to retire to consider its verdicts 
on October 17. 


full capacity to 1.200MW. 

Midlands Electricity has 
taken a 25 per cent stake, 
investing about Ellin on com- 
pletion in 1997. It forecasts the 
investment will provide a real 
post-tax return of more than 
15 per cent The company will 
also buy 174MW of the sta- 
tion’s output. 

Midlands’ partners are IVO 
of Finland (30 per cent), ABB, 
the international engineer 
(20 per cent), and Tomen, the 
Japanese trading company 
(25 per cent). IVO will operate 
the station and ABB will be 
the turnkey contractor. 

Like Midlands, IVO and 
Tomen have entered 15-year 
hedging contracts for output 
Cram the station. This is the 
first Hmg thflt companies other 
than regional electricity con- 
cerns have entered long-term 
contracts of this nature. 

rvo and Tomen said yester- 
day that they expected to be 
trading in the power contract 
market “in due course". 

Mr Karl Huopalahti, IVO 
group director, said the con- 
tractual structure which made 
the project possible repre- 
sented a step forward for 
power generation in the UK 

Gas will be supplied by Total 
Oil Marine and Elf Explora- 
tion. Project credit facilities of 
£520m were arranged by Nat- 
West Markets and Union Bank 
of Switzerland. 


By Alan Pike, 

Social Affafev Correspondent 

The government yesterday 
faced demands to explain 
whether the prime minister’s 
approval had been given for Sir 
Duncan Nichol, former 
National Health Service chief 
executive, to join the private 
health sector. 

Sir Duncan - who left the 
NHS in March - is to become a 
board member at Bupa, 
Britain's biggest private 
healthcare organisation, which 
is involved In partnerships 
with public-sector hospitals. 

Mr David Bhmkett, shadow 
health secretary, wrote to the 


government asking whether 
the approval of Mr John Major 
had been sought and given for 
“one of the architects of the 
NHS market-led changes" to 
join the Bupa board. He said 
the move appeared to be a 
“blatant breach of civil service 
guidelines" on the employment 
of former senior officials. 

Hie strength and range of 
reactions to Sir Duncan’s 
appointment showed the 
continuing power of health 
to explode as a political 
issue. 

Opposition MPs and health 
nnirra leaders accused hftn of 
jumping ship, blurring the dis- 
tinction between public and 


private provision, and exposing 
government ambitions to pri- 
vatise the NHS. But the Inde- 
pendent Healthcare Associa- 
tion. which represents the 
private sector, congratulated 
Sir Duncan on taking a “grand 
step towards a mixed market 
in healthcare”. 

Sir Duncan stressed that he 
believed the private sector 
could complement the NHS. 
The central Issue, he said, was 
that if private hospitals 
attracted more work they 
would do so under public con- 
tracts. 

“If those who spend the 
money choose to contract part 
of the money out to a service 


in the private sector, they 
retain control of it," he said on 
BBC Radio. This did not in any 
sense undermine the NHS. 

Bupa already has some part- 
nerships in place with the 

NHS, and is involved in discus- 
sions with up to 30 hospitals 
and health authorities about 
further possibilities. 

An agreement was signed in 
the summer with Bradford 
Hospitals Trust for Bupa’s first 
big capital project in the NHS 
- a proposed £2m private- 
patient unit in the grounds of a 
public hospital, with the NHS 
receiving rent based on the 
unit’s revenue and prefit. Inst 
month a partnership was 


agreed between Papworth NHS 
Trust and Bupa’s Cambridge 
Lea Hospital to pioneer laser 
heart surgery. 

Mr Peter Jacobs. Bupa chief 
executive, said yesterday: 
“There are no losers in 
cooperation between the pub- 
lic and private health sectors. 
It is not about privatisation." 

He hoped Sir Duncan’s 
arrival at Bupa would help 
demonstrate the value of the 
two sectors working together. 
“But there is a need for a cul- 
ture change in parts of the 
NHS - some people do not like 
the idea of NHS money being 
spent outside the public sys- 
tem." 


Nurses stand firm 
on pay bargaining 


By Lisa Wood, Labour Staff 

Representatives of nurses and 
midwives said yesterday that 
they remained resolutely 
opposed to the government’s 

reiig to end rintfnnai pay bar- 
gaining - and vowed to con- 
tinue fighting for an &3 per 
cent increase. 

Organisations representing 
more than 600,000 staff warned 
that dropping a national award 
and seeking locally negotiated 
deals involving National 
Health Service trusts would 
lead to widespread turmoil. 

Ms Maggie Dunn, chair , 
woman of the Nursing and 
Midwifery Staff Negotiating 
Council, said staff would “vote 
with their feet", leaving the 
NHS in droves, while others 
might take industrial Tri to n 


Earlier this week details 
were leaked of the Department 
of Health's evidence to the 
independent review body 
which recommends pay for 
nurses and midwives. The 
department mged the review 
body not to recommend 
across-the-board rises but 
instead to leave employers 
with “maximum scope” for 
local arfi on. 

The Royal College of Nursing 
claims local pay bargaining 
would require the 420 trusts - 
which cover ambulance, com- 
munity and hospital services - 
to recruit thousands of new 

jwlmfnis l ra tnre 

Mr Philip Gray, director of 
labour relations at the RCN, 
said: “National pay bargaining 
machinery is extremely effi- 
cient" 


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On calk nurses' r e pre s e n t a tive Maggie Dunn yesterday with Joint negotiator Christopher Cardwell 


Court backs Nadir plea to block Polly Peck sell-off 


| By JknKefly 

A lawyer representing Mr Asil 
Nadir said yesterday that an 
interim court order had been 
made in Istanbul preventing 
administrators from selling 
any assets of Polly Peck Inter- 
national in Turkey. 

Mr Nadir fled to Cyprus in 
May 1993 while facing 13 
charges of theft and false 
accounting involving £S4m. 


The administrators in Lon- 
don yesterday said that they 
not seen flin details of the 
order and therefore could not 
comment on its potential effect 
on thp administration. 

However, they added that 
they thought the move was 
“the latest in a series of spoil- 
ing tactics adopted by Asil 
Nadir to delay the progress of 
the administration". They 
stressed that the action would 


not “deter them from their 
responsibilities to PPI credi- 
tors". 

Mr Zeki Inanli, repres enting 
Mr Nadir, said the interim 
order had been given by the 
court at Kucukcekmece, a sub- 
urb of Istanbul, on September 
16. He said the order was based 
on the legal opinion that Turk- 
ish and British insolvency 
laws were contradictory and 
that the PPI administrators 


therefore had no legal status. 

Mr Inanli said that the 
action, brought by Mr Nadir, 
aimed to annul all transactions 
made so far by the administra- 
tors in Turkey. He said the 
ca se would mntmiie after the 
interim order. He added that 
the fugitive businessman had 
brought the case b ecause the 
administrators’ actions would 
have a negative effect on the 
Turkish economy. 


kb* Nadir baa run a cam- 
paign in Turkey to win public 
support a gainat the administra- 
tors and prevent them from 
disposing of the remaining PPI 
companies in Turkey and 
northern Cyprus. 

Among the assets of the now 
bankrupt fruits- to-electronics 
conglomerate is Meyna, the 
Turkish fruit and packaging 
business which contributed 
most of PPFs reported profits 


in the near and Middle East 
Last year the privately owned 
Ozgorkey Group of Izmir, Tur- 
key, was in talks with the 
administrators to buy the com- 
pany. 

The a dminis trators for PPI - 
who were appointed in 1990 - 
are Mr Michael Jordan and Mr 
Richard Stone from Coopers 
and Lybrand and Mr Christo- 
pher Morris of Touche 
Ross. 


Andersen 
link with 
Binder 
is agreed 

By Jim Kelly 

Arthur Andersen, the UK’s 
third-biggest accountancy firm, 
is to join forces with Binder 
Hamlyn, formerly the eighth 
biggest, after an agreement 
signed yesterday. A formal 
announcement is to be made 
on Monday. 

Andersen entered talks with 
Binder earlier this year after 
developing plans in secret 
since last October. It is under- 
stood that the group will have 
annual lee income of about 
£500m. 

The agreement, which marks 
one of the biggest consolida- 
tions in the profession for sev- 
eral years, will prompt a string 
of new international partner- 
ships across the UK sector. 

Binder Hamlyn, which is 
expected to retain its name in 
the new group, will join Arthur 
Andersen’s international 
grouping and leave BDO Inter- 
national. Stoy Hayward will 
take its place, leaving a 
vacancy at Horwath Interna- 
tional, which will be filled by 
Clark WhitehilL 

Not all the semi-autonomous 
offices of Binder Hamlyn will 
be involved in the new group. 
Stoy Hayward and Grant 
Thornton have already linked 
with regional offices of Binder 
Hamlyn which did not wish to 
join the new group. 

Binder Hamlyn’s offices In 
the London region, Leeds, Man- 
chester and Newcastle are 
expected to join the new group. 
Half the total fee income for 
Binder Hamlyn comes freon the 
Leeds and London offices. 

The move will give Andersen 
access to about 100 quoted 
companies audited by Binder. 
It is understood that the new 
group will come into operation 
next month. Former Binder 
Hamlyn offices which have not 
joined the group will stop 
using the Binder name. 

Regional doubts about the 
link emerged soon after the ini- 
tial approach. A managing 
partner at a regional office said 
difficulties would occur in 
terms of the size and culture of 
the organisations. 


Salmond tells government to ‘let the people choose’ 

Ulster-style deal for 
Scots urged by SNP 


fie E4G F armpit V** V 






By James Buxton, 

Scottish Correspondent 

The government was urged by 
the Scottish National party 
yesterday to offer Scotland 
the same degree of self- 
determination over its future 
as it has promised the people 
of Northern Ireland. 

Mr Alex Salmond. SNP 
leader, said in his keynote 
speech to the party conference 
in Inverness that if popular 
sovereignty was right in the 
North of Ireland, “how can it 
be wrong in the nation of Scot- 
land where the process of 
change has always been peace- 
ful and always will be peace- 
ful”. 

He added: “If the London 
government is not prepared to 
openly declare that it has *no 
selfish or strategic interest in 
Northern Ireland’, then let 
them declare the same for Scot- 
land and make provision now 
for the people to choose." 

The SNP. which had its 60th 
anniversary this year, has been 
in celebratory mood at its con- 
ference, following unprece- 
dented success in this spring's 
regional and European, elec- 
tions. It won control of two of 
Scotland’s nine regional coun- 
cils and took a second seat in 
the European elections with a 


All primary schoolchildren in 
Scotland would be encouraged 
to learn Gaelic under plans 
drawn up by the SNP. The con- 
ference agreed to a wide range 
of measures to encourage the 
language, which is spoken by 
only 70,000 people - about 
2 per cent of Scots. 

Delegates agreed Gaelic 
should have equality with 
English in law and be recog- 
nised and promoted as a 
national language. Bilingual 
workplace signs, Gaelic road 
signs and a Gaelic radio sta- 
tion were among ideas for pro- 
moting toe language. 

Mr Peter Scott-WUson from 
Aberdeen said: “Unless the 
language is supported by a 
very firm policy it will not be 
encouraged, it will not grow - 
and we desperately want 
Gaelic to grow in Scotland.” 

record 33 per cent of the Scot- 
tish vote. 

Mr Salm ond said success had 
been characterised by total 
unity in the party that had not 
always been obvious in the 
past “That’s the way it’s going 
to be in the next two years [up 
to the general election] and 
woe betide anyone who 
attempts to put personal 
vanity before the unity 


of his party," he warned. 

Mr Salmond told the party it 
had to represent both the Prot- 
estant arid the Catholic tradi- 
tions in Scottish society. 
“These traditions have jointly 
helped forge our national iden- 
tity," he said. 

This was a veiled reference 
to the party's role in the Monk- 
lands East by-electlon In June 
where it became Identified 
with the Protestants in a cam- 
paign that was polarised on 
sectarian lines. 

Mr Salmond compared Mr 
Tony Blair, the leader of the 
Labour party - the SNFs main 
rival in Scotland - with the 
18th century South Sea Bubble, 
when companies were floated 
on the stock exchange before 
their purpose was determined. 

Mr Blair was “the new 
southern bubble, floating along 
on hot air. sound bites and 

photoopportunities, the party 
whose purpose will hereafter 
be determined". 

He said Mr Blair had “taken 
that extra mile into Tory terri- 
tory - there is nothing to 
choose between Toryism and 
Tonyism ". If Labour's commit- 
ment to devolution ever 
became embarrassing in 
Slough it would soon “join the 
other junked pledges in the 
dustbin of Labour policy”. 




[5; 




Strategy to ease concerns 
of business sector outlined 


TravelMate 

A Festival of 
Colour! 


By James Buxton 

The Scottish National party is 
to concentrate on convincing 
Scots that transition to inde- 
pendence, the party’s goal, 
would be simple and painless. 
It also aims to lay to rest 
widely held misgivings about 
the reality of an independent 
Scotland. 

It will particularly focus mi 
persuading people in the busi- 
ness community that indepen- 
dence would be advantageous. 

The party yesterday unveiled 
a strategy for the two years 
before the next general elec- 
tion which entails building cm 
the successes gained this year 
in the regional and European 
elections. It is currently second 
to Labour in the Scottish opin- 


ion polls with 24 per cent of the 
vote compared with Labour’s 
55 per cent. 

Its next electoral target will 
be winning as many councils 
as possible in next April’s elec- 
tions to Scotland's new unitary 
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replace the two-tier system of 
councils in 1996. 

The party is to establish a 
committee under Mr Allan 
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for north-east Scotland in 
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sition of the transition to inde- 
pendence. 

The SNP's opponents have 
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out difficult negotiations 


and several years' delay. 

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Few senior figures in the 
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nesses. 

Mr John Swinney, the par- 
ty’s publicity director, said: 
“We want to create confidence 
in the business community 
that the SNP has a message for 
them that can be delivered. We 
may also be able to tailor our 
policies to their needs on the 
basis of what they tell 


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PINANCIAJL TIMES 


WEEK-END SEPTEMBER 24/SEPTEMBER 25 1994 



Why is it that 
so many large 
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are now invest- 
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Macintosh? 
Just what is it 
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The power to stand out. 

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In fact, studies have consistently shown 
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The power of Apple, IBM and 
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At the heart of Power Macintosh is the 
PowerPC microprocessor. The first of a 
family of 
RISC chops 



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developed in an unprecedented three-year 
collaboration between Apple, IBM and 
Motorola. 

So when you invest in Power Macintosh, 



? ftp T O' 


;5M^riiaticaV 'V 
RESEAROft % : 






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The power of RISC for as little as 
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© September 1994, Apple Computer, Inc. The Apple logo is a registered trademark and Apple, AppleTalk, Macintosh, and Power Macintosh are trademarks of Apple Computer, Inc., registered in the US and other countries. ‘When compared 
with systems running Intel 80486 and Rsttium processors. Source: Comparing PowerPC with Pentium a Competitive Analysis - an independent study commissioned by Apple Computer, Inc., Competitive Analysis Group, tt Source.- A Comparative 
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FINANCIAL TIMES WEEKEND 


SEPTEMBER 24/SEPTEMBER 25 1994 


FINANCIAL TIMES 

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

Saturday September 24 1994 

An economic 
evolution 


When a species has taken more 
than 5m years to evolve, it is fool- 
I isb to expect much to change In a 
few years. Thus John Major's 
grand predictions for the UK econ- 
omy diner little Cram those of his 
immediate prime-ministerial 
, ancestor. His promise of a long 
steady recovery would prove more 
reliable, however, If the UK econ- 
omy had since evolved further. 

In his speech in Saudi Arabia on 
Monday, Mr Major declared that 
the UK "was at the threshold of an 
economic recovery unlik e any 
we've seen since the second world 
war". Margaret Thatcher greeted a 
similar dawn in March 1983, 
declaring that the UK was "better 
placed to recover and make good 
profits and give new jobs than it 
has been for a very long time. The 
economy is sustainable." 

Uncovering relics of a bygone 
era makes one sceptical about the 
scope for rapid human develop- 
ment. Both leaders stood low in 
the polls, having received little 
credit for more than two years’ 
slow recovery. If anything, today's 
embattled prime minister is more 
cautious: Mrs Thatcher was speak- 
ing in the eighth quarter of the 
early 1930s recovery, while the 
rebound in UK output growth is 
now Into Its 10th quarter. 

On the face of it, Mr Major's 
optimism also has a more solid 
basis in the economic statistics. 
Data released yesterday confirm 
that the UK grew by 3.8 per cent 
in real terms in the year to July, 
significantly above its long-term 
trend of about 2 Y* per cent. 

There has been little sign so Ear 
that capacity constraints will turn 
higher growth Into price and wage 
pressures. Retail prices (excluding 
mortgages) picked up very slightly 
last month, but the July index was 
only 2.3 per cent higher than a 
year earlier. 


Wage-price spiral 

Similar records were being bro- 
ken at the time of Mrs Thatcher's 
pronouncements. Retail price 
growth briefly fell to an annual 
rate of 3 j 8 per cent rate in March 
1983, the lowest in 15 years. Low 
inflation had come at a high price, 
especially in manufacturing 
employment, but the shedding of 
labour and technical improve- 
ments were to provide rapid 
growth in productivity until the 
middle of the decade. By then, 
however, the ingredients of a tra- 
ditional UK wage-price spiral were 
already in place. 

Will the current recovery meet 
the same Tate? Perhaps not. 
Although the many similarities 
between this recovery and the last 
one are too often forgotten, there 
are clearly encouraging contrasts 
as welL None guarantees that the 
"boom and bust” cycle will foil to 
recur, but this time it might take 


longer to appear. 

The two most important differ- 
ences are the trend in the balance 
of payments and the continued 
slow pace of wage growth. UK 
exports picked up more quickly 
after sterling’s devaluation in Sep- 
tember 1992 than many expected. 

A broad range of trade data por- 
tray a UK tradeable sector react- 
ing to sterling’s foil as the most 
optimistic textbooks would pre- 
dict. In the passenger car indus- 
try, for example, the volume of 
vehicles produced for export was 
up by nearly a fifth on last year's 
in the three months to July. That 
compares with a mere 3 per cent 
rise in the volume produced for 
buyers at home. The UK consumer 
of the 1990s is a more calculating 
beast than his credit-hungry 
cousin of the 1980s. Although the 
main component of the recovery 
to date, consumption growth has 
been cautious throughout. Recent 
data suggest even that momentum 
may be beginning to run out 


Lower savings 

True, yesterday's national 
accounts data confirm that house- 
holds have been slowly cutting 
back on precautionary saving as 
the recovery continues. But those 
lower savings merely allowed 
households to maintain their 
existing spending, despite the foil 
In disposable income produced by 
April's tax rises. 

In short it is difficult to see the 
seeds of another damaging boom 
In the developments of the past 
two and a half years. For the good 
news to continue, the extra com- 
petitiveness won by sterling's exit 
from the ERM must continue to be 
combined with stable domestic 
inflation. In the 1980s, most of the 
hard-won gains in competitiveness 
were distributed as real wage 
increases, not profits. But if the 
long-term unemployed are ever to 
see a real change in the UK econ- 
omy, this must not happen again. 

So Ear, both employment growth 
and investment have lagged 
behind the rest of the economy. 
The chances that either or both 
will pick up in the future depend 
heavily on the stability of the gov- 
ernment’s macro-economic policy. 
The commitment to stable and 
sustainable growth has certainly 
been vociferously presented. The 
chancellor, for one, seems deter- 
mined to tread a slightly different 
path from that followed by prede- 
cessors in similar situations. 

Yet an economy enjoying stabil- 
ity is rather less exciting than one 
driven by over-expanding credit 
Wage growth is low and the 
employed are less sure that their 
jobs will last The main risk must 
be that the politician’s desire to 
win votes will triumph over hopes 
that a new species of chancellor 
has been bom. 


Boris Yeltsin will need all the balance and 
ballast he can muster if Russia is to exploit 
the first signs of recovery, says lohn Lloyd 

The high-wire 
act continues 



Then and now: top, th e Russian parliament, ablaze, and Yeltsin under pressure on die streets of Moscow; below, 
a relaxed Yeltsin greeting prime minister. Victor Chernomyrdin at the president’s summer residence In Sochi 


T he drums roll, the cur- 
tains (no longer made of 
iron) part and... out of 
Russia comes President 
Boris Yeltsin, walking 
on a tightrope. Russia is a great 
country for hlgh-wire artists, real 
and metaphorical. Mr Yeltsin, in 
Britain this weekend and the US 
next week, is in that tradition. 

He will feel at home with John 
Major and Bill Clinton: he is as 
unpopular as they are, probably 
more so. Mr Yeltsin leads a sullen 
country, many of whose people feel 
abused playthings of corrupt or 
ineffective politicians, rapacious 
bureaucrats and criminals. 

Yet at the same time he presides 
over signs of revival in parts of the 
economy: Russia is finally showing 
that it might realise the promise it 
has long held out 
Mr Yeltsin's unpopularity is, of 
course, a price any politician in his 
job would have to pay, though he 
may have increased it through 
erratic behaviour and increasing 
remoteness. 

And the atmosphere In Russia 
does seem to have changed in the 
year since the countdown began to 
the violent confrontation at 
Moscow's parliamentary White 
House. On Tuesday, Mr Yeltsin 
returned from a five-week holiday 
at his Black Sea dacha - punctu- 
ated only by a trip to Germany to 
observe the withdrawal of Russian 
troops - to find an altogether cooler 
political climate. 

It is too soon, however, to stop 
worrying about the course of events 
In Russia. The hot autumn prom- 
ised by the opposition may yet 
arrive. Almost every opinion poll 
shows a turning away from demo- 
crats and growing or sustained 
approval of nationalist and commu- 
nist themes, if not parties and indi- 
viduals. 

Polling of the electorate in the 
Moscow suburban constituency of 
Khimki for a by-election next 
month shows an electorate whose 
main complaints are the number of 
immigrants in their area, the ubiq- 
uity of the conspicuously rich and 
the Ineffectiveness of the govern- 
ment 

The opposition has promised to 
bring down the government in par- 
liament - which reopens next week 
- and may use the debate on the 
budget to do so. 

Leaders of harder-line opposition 
parties have been in conclave. 
While they evidently cannot agree a 
common presidential candidate 
against Mr Yeltsin, they neverthe- 
less have in former vice-president 
Alexander Rutskoi a passably char- 
ismatic figure round whom they 
could cluster. 

Mr Rutskoi and his comrades 
have little more to offer on the 
economy than statist controls, a 
war on crime and credits for alL 
But their policies do not have to be 
coherent to prove popular, if they 
mount a strong campaign. 

As if recognising this, Mr William 
Perry, the US defence secretary, 
sounded a caution earlier this week. 
He said the Pentagon's nuclear pos- 
ture review had concluded there 
was a “small but real danger that 
reform in Russia might foil and a 
new government might arise hostile 
to the United States, still armed 
with 25,000 nuclear weapons”. 

Mr Perry seems to mean what he 
says: the danger is real but It is 
seen as small - and official Wash- 
ington will stress to Mr Yeltsin how 
pleased it is with US-Russian mili- 
tary co-operation, with joint 
approaches to Bosnia and the Mid- 
dle East, and with the progress of 
economic reform and tbs evident 
stability in Moscow. 

Nevertheless, Mr Parly’s speech 


shows how much he thinks there is 
still to be done - and this will be 
much of the content of the talks 
between Mr Yeltsin and Mr Clinton. 

The US thinks Russia is la g gin g 
in reducing Its nuclear weaponry, 
and that it is lax in guarding it It 
will propose that Russia stops mak- 
ing plutonium, builds a new storage 
facility for the fissile material taken 
from dismantled weapons, and 
makes a better count of the weap- 
ons it has. Mr Clinton will promise 
to work on Congress to maintain 
the "Nunn-Logar" funds — around 
$20Qm put up to aid nuclear arms 
reduction - as long as the Russians 
show willingness to use them. 

Russia, however, is resentful of 
western suspicions. It is also Itself 
suspicious of a Nato, which lacks 
the constraining presence of the 
Warsaw Pact at the end of its gun 
sights, and is giving a broader wel- 
come than Russia would like to its 
former central European allies. 

Mr Yeltsin is likely to use his UN 
General Assembly speech on Mon- 
day to call for a reduction in 
arsenals other than the superpow- 
ers' -> which means those of the UK 
and France. He will raise, with both 
Mr Major and Mr Clinton, the view 
that the Conference an Security and 
Co-operation in Europe is a better 
vehicle for security than Nato. 

But Russian suspicions run deep. 


Mr Yevgeny Primakov, bead of the 
Federal Intelligence Service (the for- 
mer first directory of the KGB), 
argues the military, political and 
economic re-unification of the for- 
mer Soviet states (except the Bal- 
tics) is now inevitable - and is the 
only way to safeguard the indepen- 
dence and democratic character of 
their new regimes. 

If, says Mr Primakov, the west 
acts as if this is a neo-imperialist 
thrust the danger is both sides will 
retreat into laagers like those of the 
cold war. This danger Is the greater, 
says the country's top spy, because 
the west sees it as in its interests to 
have a weak and divided space 
where once the Soviet Union 
existed - not understanding that a 
new, nnn-coercive union is the only 
guarantee of its security. 

Russian politicians are conscious 
of their diminished world role and 
thus are more insistent in demand- 
ing that their “sphere of influence” 
be respected. They are glad the US 
is trying to set Haiti to rights 
because they argue that their own 
backyard - Armenia, Azerbaijan, 
Georgia and Tajikistan - needs the 
similar robust policing. 

The trouble for the west lies In 
learning to distinguish between 
robust policing and undermining. 

Ukraine, the other major state of 
the former Soviet Union, hovers 


between two possible courses. It 
could choose a reformist course 
which would strengthen its real 
independence. Or it could try to 
throw itself on the mercy of a Rus- 
sia which keeps it supplied with 
cheap energy and provides markets 
for its low-quality goods. 

Russian politicians are increas- 
ing their efforts to conclude com- 
prehensive treaties with Ukraine an 
a range of issues - including the 
disputed Black Sea Fleet - while 
the smaller country stalls, knowing 
it will deal from a weak band. 

Similarly, Russia responded to 
the signing this week of an tSbn 
contract between Azerbaijan and a 
group of major western oil compa- 
nies by challenging Azerbaijan's 
right to dispose of the contents of 
its continental shell. Its challenge 
may or may not be pushed to the 
extent of scuppering the deal Mr 
Major will want to raise the issue, 
since BP is the lead contractor - as 
will Mr Clinton. 

Underlying everything, as always, 
Is the economy. Russia’s economy 
looks in better shape than it has 
since independence. Inflation was 
down to a monthly rate of 4 per 
cent in August and the government 
is holding the budget deficit within 
the 10 per cent of GDP set by the 
International Monetary Fund. 

Better, Investment really is com- 


ing into Russia - in two fonns. 

First, the sheer rock-bottom 
prices which Russian assets co: n- 
manded when they were pulled out 
of state control are proving increas- 
ingly attractive to portfolio raves- 
tore; Even If many of the shares are 
worthless, investors have concluded 
that others, especially In the energy 
sector utilities and telecoms, are 




Second, increasing numbers of 
large, mainly US companies are set- 
ting up production bases, Including: 
• Caterpillar, which is undertak- 
ing two joint ventures with Russia’s 
biggest engineering companies, Zil 
and Uralmash; 


• Polaroid, which has seen, sales 
soar as the instant picture craze 
catches on; 

• and Bayer, which has just 
started making Aspirin In Moscow. 
Increasingly, the conventional wis- 
dom is that the reforms are irre- 
versible and that, even if the road is 
rocky, fortunes can still be made 
with nerve and patience. 

F or the government the 
next stage of reforms - if 
the IMF and the World 
Bank put up the SlObn 
the Russians want - is to 
balance budget expenditure and 
move to stabilise the currency early 
wart year. The gleam in its eye Is of 
genuinely low inflat ion in 1995, with 
the haginrring B of a strong, broadly- 
based recovery by the end of the 
year and rapid growth by 1996, 
when elections are due. 

By that time privatisation of state 
assets will be all hut complete, and 
it is not wholly utopian to believe 
that Russia could end the millen- 
nium as (me of the world's Easter 
growing economies. The delivery of 
western support to make this vision 
reality will form part of Mr Yelb 
sin's discussions in Washington 
next week, and will be discussed at 
the annual meeting of the IMF and 
World Bank. 

So the conventional wisdom may 
be right, and becomes more likely 
to be so with every day that the 
situation remains stable. But it is 
not «*fcatn- 

Secretary Perry’s "small but real” 
risk reflects the increasingly resent- 
ful section of the populace which 
feels left aside. 

The government has stayed 
within tire limits agreed with the 
IMF by slashing expenditure on 
everything, including on commit- 
ments like wages. Huge areas of 
Russian public life - health, social 
security, law and order, education - 
are starved of funds, and the bodies 
responsible for these areas reduced 
to patching tilings together, taking 
bribes or just giving up. 

Great Soviet institutions have 
become ruined hulks. Moscow State 
University's classrooms crumble; 
many of its curricula are 
unchanged since Communist times; 
its teachers are materially poor - 
but its students, or some of them, 
desperately strive for an education. 

The Bolshoi Theatre opened Us 
new season on Thursday night with 
Tchaikovsky’s Queen of Spades. 
The production was antiquated; the 
costumes less than gorgeous; a 
huge row raged backstage about 
money - and the singing was mirac- 
ulous. 

Will Russia make it? Probably, in 
its own rickety, brilliant arrogant 
fashion. Mr Yeltsin must seek to 
explain that way to his bemused 
friends, and hope they stick 
with him on the rocky road yet 
awhile. 


M 






MAN IN the News: Gerard Longuet 


Minister in a 
morality tale 


F ar from being a source of 
relaxation, Gfirard Lon- 
guet s Riviera villa Is prov- 
ing his biggest ever politi- 
cal headache. It could even spell the 
end of a bright career that some 
observers were projecting could 
nuke him prune minister next year. 

Mr Longuct. minister for trade, 
industry, posts and telecommunica- 
tions. is the most powerful politi- 
cian to be hit so far by a growing 
wave of allegations concerning offi- 
cial and corporate corruption in 
France. 

He is not the only one. In July 
such allegations led to the resigna- 
tion of the communications minis- 
ter. This week there were reports 
that the sports and youth minister 
is under investigation for having 
received money Indirectly from 
pharmaceutical companies when 
she sat on the health ministry's 
drug approval committee. 

Mr Longuet is suspected by a 
judge, Mr Ronaud Van Ruyxnbeke, 
of allowing the building of his holi- 
day house in St Tropez to be subsi- 
dised. to the tune of more than 
FFrlm. by a contractor from Lor- 
raine. The latter has carried out big 
public contracts la Lorraine, where 
the minister also happens to be 
president of the regional council, 
in a report to the justice ministry 
leaked this week, the judge 
suggested that the contractor may 
be guilty of "misuse of corporate 
funds" and Mr Longuet of “receipt" 
of such funds. 

Mr Longuet acknowledges that 
there may have been a cost over- 
run, but says the Judge has exagger- 
ated it In any case, he contends 
that ; because the allegations do not 
concern bis public responsibilities - 
in 1939-90 he was neither minister 
nor president of the Lorraine region 
- he has'iio Intention of resigning. 


even If formally charged. The con- 
tractor, for his part, says he miscal- 
culated on a FFr2. 5m fixed price 
contract, and therefore he had to 
pay the difference. 

Now, friendly contractors are said 
to have long had a habit of pro- 
viding favours for corporate or 
political notables. But it is a sign of 
the French public's growing sensi- 
tivity to the appearance - not nec- 
essarily the fact - of corruption 
that the Longuet affair has caused 
such a stir. 

The more moralistic mood started 
as a reaction to repeated scandals 
that helped the Socialists lose 
power last year. It has been fuelled 
since by a rash of corporate corrup- 
tion allegations, some of them 
involving members of a conserva- 
tive administration pledged to 
restoring ethics in government. 

The Van Ruymbeke report puts 
Mr Pierre M«iaignerie, the Justice 
minister, on the spot. Under the 
French system it Colls to him to 
decide whether to have a judge 
investigate bis cabinet colleague. 

His dilemma is shared even more 
acutely by the prime minister. 
Before taking office, Mr Edouard 
Balladur claimed the advent of a 
"liberal” government would help 
root out corruption by privatising 
state companies and lessening the 
links between the state and busi- 
ness. He also said any minister fac- 
ing formal charges should resign - 
and this month he set up a commis- 
sion to report on the ethics of links 
between politics and business. 

On the other hand, Mr Longuet is 
crucial to the RPR Gaullist prime 
minis ter's election strategy for the 
ElysSe next spring. To offset the 
hold that his presidential rival, RPR 
leader Jacques Chirac, has on the 
Gaullist machine, Mr Balladur is 
counting on his coalition partner. 



the UDF, to back him in preference 
to its nominal leader, Mr Valery 
Giscard d’Estaing. 

So far the strategy Is working 
well - but mainly thanks to Sir 
Longuet, whose Republicans, with 
109 seats in parliament, are the larg- 
est component of the UDF federa- 
tion. He might be rewarded with the 
prime ministership next year, if Mr 
Balladur were to win the presi- 
dency. But there might be no Baha- 
dur victory If Republican sentiment 
were to change as a result of Mr 
Longuet leaving government 

Certain new factors dispose 
today’s France towards corruption. 
One is the trend over the past 
decade to decentralise more power 
to the regions, placing more power 
to award public contracts In the 
hands of more people. 

That more corruption cases are 
hitting the headlines these days 
may be because a long-servile mag- 
tstrature is at last doing its job. 
That at least, is the contention of 
Mr Mfctaaignerie, who yesterday wel- 


comed the fact that businessmen 
were at last beginning to fear the 
law. "Such fear is the beginning of 
wisdom,” he said. 

French business’s initial reaction 
to investigations was indignant 
Many captains of industry, and Mr 
Longuet himself, leapt to the 
defence of Mr Didier Pineau-Valen- 
denne, head of Schneider, when he 
was briefly detained In a Brussels 
prison, without even knowing what 
the charges against him were. 

However, two-thirds of the busi- 
nessmen interviewed In a recent 
poll said many companies were 
indulging in illegal practices and 
favoured an Ztalian-style "clean 
hands” crack-down on corruption. 

The Patronat employers federa- 
tion has now followed Mr Balladur’s 
example In setting up its own study 
of corporate ethics, the legal respon- 
sibilities of senior executives and 
non-executive directors, business 
links with politics and desirable 
changes in the French penal proce- 
dure. In a somewhat utopian vein, 
Mr MOhaignerie yesterday voiced 
the haps of getting corporate money 
out of French politics altogether. 

Recent years have seen more reg- 
ulation and transparency in the 
funding of French political parties. 
Before 1988 - just as In the US 
before the 1972-73 Watergate scan- 
dals - corporate donations to politi- 
cal parties were illegal, but wide- 
spread. A 1990 law placed limits on 
what companies could give and on 
what candidates could spend. 

This has been enforced. For 
exceeding the limit in 1993, Mr Jack 
Lang, the former socialist education 
and culture minister, lost his parlia- 
mentary seat As a result, “we have 
drained soma of the money out of 
politics”, says Mr Guy Carcassonne, 
a Paris law professor who helped 
the Rocard government design the 
1990 law. 

Long term, therefore, France may 
be slowly cleaning up its act But at 
least in the coming presidential 
campaign, corruption is likely to be 
a big theme. 

David Buchan 


HULL 



Znthrugge t Anfap DulHftfaf 
Brandi CdG&m 

tmm 


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4 




★ 


i } * . 
* - i i 


»V«i 



Financial times 


WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 



1 1 


Season of risk and fearfulness 


F 


W 




S ummer is over and so, it 
seems, is the rally in world 
equity markets. The Dow 
Jones Industrial Average 
which was close to its all-time high on 
September 15. suffered its biggest one- 
tell for six months on Wednesday, 
with the arrival of autumn, tradi- 
tionally the season for equity market 
upsets, fears have revived that share 
prices may be heading for a sharp 
decline. 

As has often been the case this 
year, bond markets have led the way 
The yield on the 30-year US Treasury 
bond rose to 7.79 per cent week, 
compared with 7.49 per cent a month 
ap and 5.78 per cent at the trough in 
October 1993. In the UK, 10-year gilt 
yields are approaching 9 per cent 
Viewed from the perverse stand- 
point of financial markup economic 
growth is the prime culprit for recent 
weakness. The continued recovery in 
the US and the UK, the grow in g signs 
of a pick-up in continental Europe 
and the hopes for an improvement in 
Japan are good news for the popula- 
tions of the countries concerned. But 
bond markets dislike strong economic 
growth, as it usually leads to infla- 
tion, which erodes the real value of 
fixed-income investments. They tvmc 
demand a hi g he r yield to compensate 
them for the addiHnn^) inflation risk. 

Thus the recent rise in bond yields 
(and fall in bond prices) was sparked 
by signs of continued US 
vigour. Tt had looked as if third-quar- 
ter GDP in the US would be quite soft, 
but a number of recent statistics have 
shown strength,” says Mr Peter Lyon, 
chief strategist at London securities 
house Smith New Court. US factories 
operated at 84.7 per cent of capacity in 
August, the highest level since April 
1989, while August retail sales 
recorded a month-on-month gain that 
was larger than expected at 0.8 per 
cent. 

Bond markets have fallen faster 
than equity markets this year. The 
result is that, in yield terms, equities 
look expensive relative to bonds com- 
pared with historical averages. 

This could simply reflect the possi- 
bility that bond markets are overesti- 
mating future infla tion. If so, bond 
yields ought to fall to reduce the yield 
differential. If not, equity yields need 
to rise substantially - and share 
prices to fall - to restore ratios to 
more reasonable levels. 


Philip Coggan explains why financial markets are nervous 


HBUB&SEes: 



^ STwr- 7Jkff ■?' - 




. 1983 

„ 9*. Sept 

Yield on US 30-year treasury bond pQ 

”, ■ • . ... •' . . 

■ v" ‘ • ’ ‘ f 






vita’ 

TOO 
* 95 


ao 

u ; 

7JQ 


an 

5J5 


Meanwhile, the view has been gain- 
tog ground that the world interest 
rate cycle has turned - reinforced by 
the increase in UK short-term rates 
last week, from 6.2s to 5.75 per cant 
At the start of the year, there was a 
belief that while US rates might rise, 
there was still scope for short-term 
rates in other countries, particularly 
in Europe, to falL But as the graph 
from James Capel shows, a weighted 
average of short-term interest rates 
across the Group of Seven leading 
industrial nations has tram s teadily 
rising since the start of the year. A 
rise in interest rates is often bad news 
fin- equities, because it increases cor- 
porate costs and mahaa holding ranih 
more attractive relative to owning 


But is the recent weakness in bond 
and equity markets a blip, or part of a 
long-term bear market which effec- 
tively began when the US Federal 
Reserve first raised interest rates in 
February? 

It is possible to construct a bearish 
argument from two radically different 
analyses of the economic outlook. The 
first, and more conventional, view is 
that inflation will return with a ven- 


geance as the world's economies start 
to recover. Recent in com- 

modity prices, which have caused the 
Economist commodity price index to 
rise tor 4L8 per cent over the past 
year, are an early warning sign. 

The dividend yield offered by the 
big equity markets is quite low in 
historical terms. The Standard & 
Poor's industrial index yields just 2.41 
per cent, compared with an average of 
3 JB per cent since 1979; meanwhile the 
FT-A All-Share yields 896 per cent, 
against its post-1979 average of 4.7 
per cent 

W hile both might be rea- 
sonable in terms of cur- 
rent levels of inflation , 
any inflationary rebound 
would prompt investors to demand 
higher yields, forcing share prices 
down. 

The alternative analysis is that the 
authorities are underestimating the 
deflationary forces present in the 
economy, resulting largely from the 
heavy debt incurred by the corporate 
and personal sectors in the 1980s. 
According to this view, the authori- 
ties are increasing interest rates too 


Sapt 


soon, and by too much, which will 
cause economic growth to slow and 
corporate earnings to disappoint. 

According to Mr Robin Aspinall of 
broker Panmure Gordon, the sharp 
fall in interest rates in the early 1990s 
released a temporary flow of liquidity, 
boosting narrow measures of money 
supply and causing money to flow 
into bonds and equities from ea«h 

“Businesses, forecasters, politicians 
and markets have been deluded into 
believing this wave could last for- 
ever,” says Mr AspinaU. “It is beaded 
for a wipe out as it eventually crashes 
against the greater inertia of slow 
growth and low inflation dictated by 
the debt background.” 

Mr Michael Hughes, global strate- 
gist at BZW, argues: “There is a great 
danger that monetary policy is get- 
ting too tight The authorities aren't 
injecting enough liquidity, pnii mar , 
kets are the casualty.” 

Shares may be trading on 
price-earnings ratios (the yardstick 
analysts use to compare share prices 
to corporate profits) that do not fake 
account of the growth slowdown 
expected by this school. Only this 
week, I/widnn merchant hank Klein- 


wort Benson cut its forecast for UK 
earnings growth in 1995 to 8 per cent 
if that kind of forecast is right, a 
price-earnings ratio of 17.7 on the 
FT-A All-Share Index makes UK equi- 
ties look rather expensive. 

But most believe any si gnifi cant 
downturn in world equity markets 
would have to start on Wall Street 

Mr Hughes thinks there is a strong 
risk of a crash in the US and “the idea 
of 3JXH on the Dow Jones [compared 
with Thursday’s close of 3.837) isn't 
out of the question". He dtes the high 
involvement of US banks in securities 
lending as a main source of risk. 

Others point to the political prob- 
lems likely to be faced by President 
BUI Clinton if, as some expect, the 
Democrats lose control of the Senate 
after the mid-term elections in 
November. Although financial mar- 
kets are no lovers of Mr Clinton, grid- 
lock in Washington would cause 
uncertainty about the direction of US 
economic policy. 

Some dismiss these fears, arguing 
that they simply represent the “wall 
of worry” that all bull markets have 
to climb. Such optimists see the 
decline in financial markets as a 
panic response to inflationary indica- 
tors. Despite all the talk of inflation- 
ary pressures, the annual rate across 
the European Union in August was 
just 8.1 per cent. In the US, the 
annual rate of infla tion in August was 
29 per cent Real band yields (nomi- 
nal yields minus inflation) are thus 
extremely high in historical terms. 

These yields have risen so sharply, 
according to Mr Keith Skeoch, James 
Capel’s chief economist, because the 
peak in short-term interest rates and 
inflatio n in this cycle is not yet visi- 
ble. This has caused investors to 
d emand a hi gher “risk premium” in 
return for bolding bonds. 

“At some point, this premium gets 
overdone and you get a return to sen- 
sibility,” Mr Skeoch says. Once bond 
yields have stabilised, he argues, equi- 
ties can resume an upward path. 

But the bulls may fece an early test 
of their optimism on Tuesday, when 
the Federal Reserve’s Open Market 
Committee meets in Washington. For- 
mer Fed governor Mr Wayne Angell 
says the committee is likely to push 
up interest rates by a further half a 
percentage point The meeting's out- 
come win set the tone for what could 
be a nervous autumn in the markets. 


The unkindest cut 


H ave Britain's pay 
review bodies out- 
lived their useful- 
ness? 

The five bodies - which rec- 
ommend annual pay rises for 
one-third of B ritain 's 5m public 
sector workers - find them- 
selves in an increasingly 
uncomfortable position as a 
result of the government's 
attempts to hold down public 
sector pay. 

If the recommendations they 
are currently working on for 
next year's pay rises are too 
high, the government is likely 
to set them aside. If they fall 
into line with the current pay 
bill freeze and recommend 
close to a zero rise their inde- 
pendent judgement will be 
questioned - not least by the 
leaders of the 550400 nurses 
who this week lodged a claim 
for an 89 per cent rise. 

The five bodies were set up 
in two waves. In the early 
1970s, three were set up for 
leading groups of state employ- 
ees (mainly men) who did not 
strike or collectively bargain: 
top civil servants and judges; 
doctors and dentists; and the 
armed forces. The second wave 
(mainly covering women) fol- 
lowed industrial unrest - the 
nurses review body in 1984 and 
the teachers in 1991. 

The review bodies are in 
some ways a hangover from a 
time when much of public life 
was arranged by committees of 
the great and good. The two 
Largest - the teachers and the 
nurses - are run by, respec- 
tively, Mr John Gardiner, 
ffrnimian of the Laird Group, 
and Mr Mike Bett, a deputy 
c hairman of BT. These chair- 
men have a large influence in 


David Goodhart on the future 
of the UK’s pay review bodies 


rhnmaqg seven colleagues who 
- if they pass government vet- 
ting - usually sit on the review 
body for two or three years. 

They include retired civil 
servants, such as Dame Anne 
Mueller, the forme* Treasury 
mandarin, who sits on the 
nurses review body. There is a 
sprinkling of experts such as 
Mr Philip Halsey of the teach- 
es review body who is former 
head of the now-defunct 
Schools Examination and 
Assessment Council There are 
also private-sector outsiders, 
such as Mrs Juba Cuthbertson, 
news editor of the Financial 
Times, who is also on 

the teachers' 

review body. 

The members 
of review bod- 
ies may be 
unpaid volun- 
teers, but they 
take on a 
heavy work- 
load. In Sep- 
tember, they start hearing evi- 
dence from unions, 
government and other parties, 
making their recommendations 
to the government in January. 
Throughout the year they com- 
mission studies on aspects of 
pay and performance from 
their secretariat, the Office of 
Manpower Economics. 

Their reports do more than 
merely recommend a headline 
annual pay increase for, say, 
all nurses or soldiers. They 
include recommendations on 
matters such as hours and 


"We are more 
subtle and flexible 
than the annual 
pay rise figure 
makes us seem’ 


The problems arise when 
their recommendations are 
incompatible with the govern- 
ment’s pay policy. 

In 1963-94, the government 
imposed a 1.5 per cent rise 
throughout the public sector. 
The pay review bodies' were 
asked not to make recommen- 
dations, amid gr umbling . 

This year was the first in the 
three-year public sector pay- 
bill freeze imposed in the last 
Budget. The review body’s 
recommendations for the cur- 
rent year have managed to co- 
exist with the freeze, although 
the 29 per cent rise for teach- 
ers and 3 per cent for nurses 

were accepted 

with reluctance 
by the govern- 
ment. 

However, it 
will get harder 
as the pay-bill 
freeze contin- 
ues. Similar 
rises early next 
year or in early 1996 may 
severely hurt services or lead 
to a large number of compul- 
sory redundancies if imple- 
mented in fun 
The pay review bodies are 
aware of the restraints they 
are working under but at the 
same rime insist that itis their 
job to come to an independent 
judgement about their particu- 
lar group of employees. 

That judgement has been 
more generous than the gov- 
ernment would like. The privi- 
leged public-sector workers 
covered by the review bodies 


have seen their pay rise 156 per 
cent between 1981 and 1993, in 
line with the private sector. 
The rest of the public sector - 
mainly civil servants anti local 
government workers - have 
lagged behind with rises of 123 
per cent over the same period. 

Most review body members 
are strong believers in setting 
pay at a rate no higher than 
that sufficient to recruit and 
retain the staff required. But 
inevitably, they sometimes 
sympathise with those whose 
pay they set 

“If the government derides it 
does not like our Judgement 
that is fine, but it should not 
expect a group of public-spir- 
ited people who have given up 
a lot of time and energy com- 
ing to that judgement to shrug 
and carry on,” says one pay 
review body member. 

A full-scale rejection of a 
recommendation early next 
year might cause a walk-out, 
though slightly reducing a 
r praimmendntinn by phasing it 
in would be unlikely to do so. 

Most members of the pay 
review bodies belong to the 
establishment and believe that 
they do an important job. “We 
are more subtle and flexible 
tiiny* thp annual pay rise figure 
makes us seem, and ^e would 
want to argue from the inside,” 
says one member. 

One of the government’s 
options for keeping them on 
side would be to wean the 
review bodies off the nation- 
wide headline increase. As 
public sector pay setting is 
increasingly devolved to local 
level, particularly in health 
and teaching, they could be 
encouraged to concentrate 
more on the details of how pay 



is determined and distributed. 

Mr Michael Portillo, one of 
the cabinet hawks on public 
spending, mada this point ear- 
lier this year to the Treasury 
Select Committee. Asked if the 
pay review bodies were now 
pointless, he replied that they 
were not but needed to under- 
stand the reality Of the pay-bill 
freeze. He added: “They do a 
great deal more than arrive at 
a global figure; they also make 
useful recommendations about 
distribution." This is some- 
thing that review bodies used 
to do, but have largely aban- 
doned in recent years. 

Another option, aired in this 
year’s nurses review body 
report, would be to ask them to 
review the pay of nursing staff 
as a whole, but confine any 
reconunesndatUms to rninirnmn 
levels only. 


The review bodies could, 
therefore, become a bit like the 
wages councils that used to set 
minimum rates in parts of the 
private sector before abolition 
last year. Such a role would 
continue to recognise the pecu- 
liarities of the public-sector 
labour market but remove the 
review bodies from confronta- 
tion with the government 
The alternatives look less 
attractive: a return to collec- 
tive bargaining, the introduc- 
tion of more pay formulae as 
enjoyed by the police and fire 
service; or simple imposition of 
pay increases by managers at 
local or national level. And if 
the government wants to keep 
open the option of restricting 
strikes in essential services, 
now Is not the time to abolish 
a pay review system that has 
proved popular and credible. 


Confusion surrounding th'etJS 
action in Haiti has not destroyed 
optimism, says James Harding 

Democratic 
heart beats on 


T he American embassy 
in Port-an-Prmce does 
not know the' code 
name for the deploy- 
ment of US troops in Haiti. It 
might be “Operation Uphold 

Democracy", or It might be 
“Operation Restore Democ- 
racy". After a week's grilling 
on the operation, US officials 
are in no mood to quibble. 

The confusion over the code 
name is indicative of the mili- 
tary operation's ill-defined 
sense of mission. 

In sending more than 10,000 
soldiers to oversee the return 
to power of elected bnt ousted 
President Jean-Bertrand Aris- 
tide, the US seems uncer tain 
whether bringing democracy 
to Haiti means working with, 
or replacing, the existing 
authorities. 

The entrenched legacy of 
repression in the conservative 
establishment would make 
either an achievement How- 
ever, when the US forces 
arrived in Haiti, their opera- 
tional strategy 
was still being 
hammered out 
American sol- 
diers. who on 
Sunday night 
had been 
expecting to 
invade and 
inflict a humil- 
iating defeat on 
military leader 
General Raoul 
Cedras and “his 
armed tbngs", 
were on Mon- 
day morning 
required to 



Haitians, some 
marvelling at the 


collaborate with criminals. 
The Haitian people don't trust 
these people." 

Evidence of the violent 
crime of the Haitian authori- 
ties Is distressingly easy to 
come by. The last anyone saw 
of idil Blanc’s son, Eric, an 
Aristide sympathiser, was 
when he was bandied into a 
police car 10 months ago. 

In the wealthy suburb of 
Petionville. Mr Bobby Bur- 
nette, a US missionary, came 
home one night to find three 
people flayed to death by 
machete at the end of his 
drive. “The police are 
cold-blooded killers," he says. 

Habits, especially vicious 
ones, die hard. Haiti's history 
of political thuggery dates 
back to the formation of Fran- 
cois ‘Baby Doc' Dnvalier’s 
Teuton Macoute private army, 
after his election in 1957. 
“This generation of politicians 
grew up with the Duvalier phi- 
losophy,” says Lionel, one of 
many made redundant since 
the embargo 
’’ against Haiti 
crippled the 
economy. “If 
you're in oppo- 
sition, then you 
shouldn't be 
around.” 

He foresees 
recrimination 
in his middle- 
class neigh- 
bourhood, after 
President Aris- 
tide returns: 
“You've been 
living on a 
block, terroris- 


work with that display of US military teg the people, 

same Haitian gizmos, were beaten “““S P»- 

military to 3 ^ pie, and they 

assist in the up by the police as know 

departure of its . lo . ^ , Now, 

leadership- US servicemen Stood power. 

The leaders 
of the two 
armies. General 


you. 

you’ve 


idly by 


Henry Shelton and Gen Ced- 
ras, started working out the 
logistics of their unlikely part- 
nership with US servicemen 
already on the ground. 

But Haiti's tew enforcers, 
described by US President Bill 
Clinton 10 days ago as "deadly 
police thugs”, were quick to 
embarrass their new comrades 
in arms. A group of civilians, 
some marvelling at US mili- 
tary gizmos and others cele- 
brating the imminent return 
of Aristide, was beaten up by 
Haitian police. US soldiers 
were not allowed to i nte r v ene. 

By Wednesday night, the 
Clinton administration had 
reversed its decision to leave 
law and order enforcement to 
the Haitian authorities. 

US military officials later 
acknowledged “some confu- 
sion" as “policy evolved in 
meetings with Gen Cedras”, 
bnt asserted US forces' con- 
stant sense of purpose. Of the 
changes in operating guide- 
lines, one officer said: “There 
is no change of mission; there 
is a change of focus.” 

The commitment to working 
with Gen Cedras remains. Last 
night, US soldiers slept under 
the same roof as their Haitian 
counterparts, after moving 
into the Cap d ’Application m3- 
itary base the previous day. In 
case the combination of 
restraint and re-education 
does not produce an armed 
force that respects democracy, 
the US is planning a buy-back 
programme of some of the 
20.000 weapons in Haiti. 

But many in Port-au-Prince, 
not least the city's ousted 
mayor who has been forced 
into hiding, question the wis- 
dom of working with Gen Ced- 
ras’s men. “President Clinton 
just said these people were 
criminals." said Evans Pack 
“He can’t send his troops to 


no guns. 
_ They're defi- 
nitely going to 

kill you." 

The speed with which popu- 
lar demonstrations gathered 
momentum test week, turning 
from a dancing throng into a 
leaping frenzy in minutes, 
brought back unwelcome 
memories for the city’s conser- 
vative bourgeoisie. 

The Laval as (flood) alliance 
of populist movements, which 
includes Ti Legliz (the little 
church), gwoupman (farming 
co-operatives) and the unions, 
swept Aristide to power three 
years ago. Last week, it was 
reviving its biblical rhetoric 
and gearing itself np to 
wash away the nation’s vil- 
lains. 

Bnt the existence of two dia- 
metrically opposed political 
camps in Haiti did not dampen 
the euphoria in Port-au-Prince 
test week. Haiti’s democratic 
heart beats on, people said 
jubilantly: political violence is 
a thing of the past. And, any- 
way, there was the US pana- 
cea. “The change has been per- 
fect,” said one. “Violence is 
Haitian history today. The US 
soldiers are our democrats," 
said another. 

Mr Emanuel Constant, head 
of the Front for the Advance- 
ment and Progress of Haiti, 
declared that 1994 would be 
“the year of the ballot, not the 
bullet". 

Speaking outside the front’s 
headquarters in a residential 
suburb of the city, his words 
of reconciliation were punctu- 
ated by the - paramilitaries 
around him: “Democracy yes! 
Democracy yes! Violence no!" 

Less than a year ago, the 
same men had stood on the 
quayside of Port-an-Prince 
harbour - and blocked the 
USS Harlan County from 
entering Haiti to assist in the 
restoration of President Aris- 
tide under the last agreement 


Offensive to talk of a 
vegetarian ‘menace' 


Front Mr Tony CamtL 

Sir, The headline on Giles 
MacDonougb’s review of vege- 
tarian books in the Weekend 
section (“Vegetarian food ‘ter- 
rorism’ September 17/18) and 
the title, “The vegetarian, 
menace", on the front page of 
the FT were gratuitously offen- 
sive. 

Calling vegetarianism a 
""inciuv ot" and a form of food 
terrorism" is perverse in the 
extreme, given that it is a life- 
style which rejects violence 
against creatures capable of 
experiencing pain and suffer - 
inn. "Food terrorism" is a term 
more appropriate to describing 


the systematic abuse of ani- 
mals inherent in today's fac- 
tory term systems of meat pro- 
duction. 

As for Hitler, there is a rot- 
ten apple in every pile. But 
demonising all vegetarians 
because of him Is as absurd as 
making all omnivores guilty of 
Stalin’s crimes. 

Plenty of vegetarians have 
made oatstanding contribu- 
tions to their age: Gandhi, 
George Bernard Shaw and Paul 
McCartney among them. 

Tony Garritt, 

Kapellakutn 2h 
1950 Kroamem, 

Belgium 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters t ransmitt ed should be dearly typed and not hand written. Please set fax for finest resolution 

UK must define view of EU democracy 


From Mr Graham ABen MP. 

Sir, European democracy 
needs to be put on an open and 
clear footing and, as your edi- 
torial “Agenda for Euro- 
refonn" (September 20) argued, 
the 1996 inter-governmental 
conference will provide the 
occasion for this. 

The framework of the ElTs 
institutional relationships 
needs to be defined so that 
every European citizen can 
understand them without the 


“guidance” of the executive of 
the respective nation states. 
The current maze of powers, 
treaties, directives, institutions 
and interests serves only to 
confuse. In effect, the current 
EU is the pooling of executive 
sovereignty by the govern- 
ments of the nation states and 
this , or better still the struc- 
ture of a more democratic 
form, needs to be clarified by 
being written down. 

At the 1996 IGC a written 


European constitution, will be 
formulated. Work on this is 
already going on across 
Europe. It will not be enough 
for the UK to wait on the side- 
lines for a -European Parlia- 
ment or a Commission version 
of a European constitution and 
then merely to criticise it We 
must define our own principles 
for Europe and its institutions 
based an the concepts of sub- 
sidiarity. democracy and 
accountability, so that the 


European Union can develop 
as a set of more open and dem- 
ocratic organisations. 

In reflecting the views and 
wishes of all the peoples of 
Europe it will not only 
enhance its own relevance but 
also take its place as part of 
the pluralist democratic settle- 
ment in the UK itself. 

Graham Allan , 

shadow home affairs minister, 
House of Commons, 

Westminster SWIA QAA 


Hijack by the theorists 


Dr D P S Smith. 

Sir, I read with interest Lisa 
Wood’s recent article (“Inspec- 
tors attack *narrow' work- 
based qualification”, Septem- 
ber 14) and while 1 agree that 
the underpinning knowledge 
required for some national 
vocational qualifications needs 
to be reviewed, in hairdressing 
(one of the first NVQs) there is 
ample knowledge and under- 
standing built in. 

I remember it was not so 
long ago that employers com- 
plained that potential employ- 
ees had the theoretical know- 
ledge but had not been taught 
the practical skills to do the 
job! Certainly in hairdressing 
the previous qualification 


required far too much theoreti- 
cal knowledge which was inap- 
propriate. 

I agree with the concluding 
comments by Dr Melia, the 
Further Education Funding 
Council's chief inspector, that 
more attention should be paid 
to both underpinning know- 
ledge and assessment in the 
workplace. However, there is a 
great danger that the academ- 
ics will hijack NVQs and take 
us back to the bad old days of 
"know all the theory but can't 
do the job". 

DPS Smith. 

HTA Swan Court. 

Waterhouse Sfreec 
Hemet Hempstead, 

Hertfordshire HP! 1DU 


Complicated pensions solvency requirements a waste of time 


From Mr HR Wyraie-GrifiUh. 

Sir You report. “Workers at 
Swan Hunter face cut to pen- 
sions- (September 20). that the 
Swan Hunter pension scheme 
is technically solvent yet can 
cover only 60 per cent of its 
niembere’ pensions. 

Under the government s cur- 
rent proposals, this would have 
meant Swan Hunter being 


required to put many millions 
of pounds into the scheme 
within a three-month period - 
probably impossible for a com- 
pany in such dire straits. 

No amount of legislati o n is 
going to make a financially 
unsound employer put money 
into a pension scheme, and the 
sooner the government recog- 
nises this the better. Then it 


can get on with the real job of 
drafting clear and simple 
requirements for employers to 
tell employees when their pen- 
sion scheme is going awry. 

The government should stop 
wasting taxpayers’ money in 
trying to design complicated 
solvency requirements that 
will at best be useless and at 
worst be damaging in terms of 


increased pension costs, follow- 
ing what will effectively be 
government-dictated invest- 
ment policy as clearly 
explained by Barry Riley 
(“New benchmark worries UK 
pension funds”, September 21). 
H R Wynne-Griffith, 
partner, 

Barnett Waddmgton & Co, 

21 Tufton Street. London SW1 


Tiphook meeting not just preoccupied with directors' pay 


From Mr Edmond Jackson. 

Sir, As a shareholder present 
at Tiphook’s annual general 
meeting, it was good to see the 
FT (“Bankruptcy threat to 
Tiphook’s Montague". Septem- 
ber 16) report it less sensation- 
ally than other newspapers. 
However, you still emphasised 
controversial matters like the 
chief executive’s personal 


finances and directors’ remu- 
neration. These are quite perti- 
nent but not the whole story. 

The board affirmed that trad- 
ing was improving trading and 
that its bankers remained sup- 
portive. That a director of Ian 
Clubb’s calibre has agreed to 
become chairman and 
expressed his full commitment 
to the company’s new future as 


Central Transport Rental 
Group is also encouraging. 

But when an AGM becomes 
a media circus of whipped-up 
emotions, objectivity is lost. It 
became bard to ask basic ques- 
tions on Tiphook’s future. 
Mounting hysteria could also 
adversely influence Its custom- 
ers and creditors. 

The press are often share- 


holders’ best allies in the drive 
to improve boardroom disclo- 
sure and accountability. Such 
a purpose must try and set 
companies on a better patfr. 
not create additional probteujs 
for those feeing high risks*' 1 ' 
Edmond Jackson, ; ,,i ■ , 

Cherries, v* 

Buffers Dene Ifaad, 
Woldmghotfo 7HH 


X 


\ 


FINANCIAL TIMES WEEKEND 


SEPTEMBER 24/SEPTEMBER 25 IW 


COMPANY NEWS: UK 


Lower interest and finance costs contribute to a 29% advance 

Hepworth at £35 .6m midway 


By Christopher Price 

Hepworth, the building 
materials and boiler group, 
reported a 29 per cent rise in 
half-year pre-tax profits from 
£27.5m to £35.6m. although the 
figure was flattered by lower 
interest and finance costs. 

At operating level, profits to 
30 June rose marginally to 
£37m (£35. 8m). Mr John Carter, 
chief executive, cautioned that 
the group's markets would 
remain tough for the rest o? 
the year. 

Turnover edged up 2 per cent 
to £338.6m (£331. 9m), while 
earnings per share rose 12 per 
cent to 102p (9.ip). 

The interim dividend is 
maintained at 5.5p. 

In the UK. which accounts 
for 60 per cent of the group’s 
sales, operating profits were 14 
per cent ahead at £2l.3m 
(£18. 7m) on turnover 9 per cent 
higher at £202.1 (£ 184.6m). 

Building products sales 
increased 10 per cent, with the 
new house market providing 


strong support. The home 
products division saw sales 
growth of 7 per cent, with a 
firm performance from the gas 
boiler business offset slightly 
by weakness in garage door 
sales. 

Operating profits in the 
refractories business fell 43 per 
cent to £2.1m (£3.7m) on turn- 
over down 9 per cent at £83 Sm 
£70.3m). Mr Carter said: “This 
is our toughest market by far 
but we are taking steps to 
broaden our market base." He 
added that North America and 
the Far Bast were being tar- 
geted. To this end, the com- 
pany had recently signed an 
£llm contract in Taiwan to 
provide stove li ni ngs. 

The French boiler division. 
Saunier Duval, experienced 
mixed trading, profits Improv- 
ing slightly to £13m, compared 
with £l2fan. on turnover down 
ma rginally at from £1 02.4m to 
©9.3m. Stable glass sand sales 
an d firm foundry product sales 
helped mineral and chemical 
division operating profits 


Hepworth 



Lju 


250 

T983 

Sauce: FT Gaprtie 


■limtu. 


94 *. 


increase from £3 -5m to £5 .2m 
on turnover up from £34m to 
£37.5m. 

Mr Carter said: "Our strat- 
egy is to infuse each of our 
operations with new ideas, 
products, innovations and 


investment and we intend to 
use our strong balance sheet 
Imaginatively, it’s a long-term 
slog, but eventually the suc- 
cess of these initiatives will 
outweigh the difficulties.” 

• COMMENT 

The fear for Hepworth is that 
one or more of the group's 
businesses - refractories the 
obvious candidate - will con- 
tinue to act as a drag as the 
recovery gathers pace. Manage- 
ment dismisses talk of slim- 
ming down and insists invest- 
ment is the bey. Hepworth' s 
latest contract successes in 
refractories would appear to 
support this view. The shares 
are currently on a market rat- 
ing and analysts' profit fore- 
casts of around £74m for the 
full year would keep them 
there and slightly ahead of 
that of the sector. While the 
yield - one of the highest in 
t he building material^ sector — 
is likely to support the shares, 
the downside would appear 

liwitwrt 


Joseph Holt pulls ahead 5% to £4] 


By Peter Pearce 

Joseph Holt, the Manchester-based brewer 
lamed for some of the least expensive real 
ale brewed in the UK, lifted pre-tax profits 
by S per cent from £3 .82m to £&99m in the 
six months to June 30. The shar es declined 
75p to £36.75. 

Mr Richard Kershaw, joint managing 
director, said the “very conservative” com- 
pany was “not over excited” about the 
outcome - struck on flat turnover at 


£l3.7m (£i3.6m) - but said the Manchester 
market had been riiffl mit in the last year. 

He suggested the area had entered the 
recession later and would emerge later, 
adding that high unemployment levels 
would continue to hamper trading growth. 

He said that there had been some 
improvement in the hotter months of July 
and August. 

The company sells a pint of bitter for 
96p and mild for 90p. Mr Kershaw said 
there had been a lp increase in retail 


prices though none in wholesale. He 
explained that Holt managed to sell beer 
so inexpensively because it had large man- 
aged houses - 96 of the total 108-strong 
estate - within a 20-mile radius of Man- 
chester and that it did no advertising. 

It planned to open one or two new pubs 
a year and had recently built its first new 
pub in the centre of the city far 20 yean. 

Earnings per share grew to 87 (84J58p) 
and the interim dividend is raised to 12p 
Clip). 


Franklin defends Body Shop stance 


By Andrew Jack 

The US ethical fund that 
triggered a fierce debate over 
the activities of Body Shop 
International over the last tew 
weeks has concluded that some 
of the criticisms against the 
company were justified. 

In a long-awaited article in 
its insight magazine, Boston- 
based Franklin Research & 
Development Corporation said 
there was a gap between Body 
Shop's “image and its reality” 
and called the company's 
response to criticism bombas- 
tic and offensive. 

It also stressed that Body 
Shop's problems were “quite 
correctable" and that it was 
“currently making improve- 
ments in almost all areas”. 

Franklin added: “Through 
clever public relations, the 


Body Shop has carefully culti- 
vated an image which is incon- 
sistent with the company’s 
sometimes less than impres- 
sive performance." 

The assessment stands in 
stark contrast to the conclu- 
sions of other organisations 
such as Eiris, the London- 
based ethical investment 
research service, which 
suggested recently that the 
criticism directed against Body 
Shop was unfair. 

News that Franklin had rec- 
ommended clients to sell Body 
Shop shares, backed by its dis- 
posal of 50,000 shares held on 
behalf of clients, helped precip- 
itate dozens of media articles 
and contributed to a drop in 
the share price which has 
fallen since mid-August from 
242p to close yesterday at 206p, 
up 6p. 


Franklin said it had learned 
from the experience of the last 
few weeks to be “more diligent 
in checking company claims'’ 
and expressed frustration that 
Body Shop had refused to pro- 
vide information to those try- 
ing to verify its r-latma , 

It said the company’s overall 
record of environmental audit- 
ing and disclosure was impres- 
sive, but called on it to state 
the source of the ingredients in 
its products on their packag- 
ing. 

It said the language the com- 
pany used • .to . describe its 
“Trade not Aid" activities "still 
requires revision if it is to 
truly reflect the scale of the 
projects it supports”. 

Ms Joan Bavaria, president 
of Franklin, said yesterday 
that it had not given the com- 
pany an overall rating, and 


that while it was still not rec- 
ommending rfipntq to buy the 
shares, it “would certainly 
entertain buying the stock 
again in the future”. Respond- 
ing to the criticism Body Shop 
said: “Franklin's major criti- 
cism is that we defend our- 
selves too aggressively. We 
strongly, of course, disagree. 

“When it comes to protecting 
our company, our shareholders 
and our reputation we will con- 
tinue to act quickly and forth- 
rightly." 

Body Shop added, “By devot- 
ing a whole issue of their 
newsletter to us, they’re sub- 
jecting us to a level of scrutiny 
they would not reserve for 
their other investments. 

“Show us other UK firms 
that are doing as much ss us. 
At least we’re trying. We’re 
highlighting the issues.” 


£llm marine protein 
expansion by IAWS 


By Carotins Southey 

IAWS Group, the Dublin-based 
food and agricultural com- 
pany. yesterday made a 
£ ll.2m recommended offer for 
a Scottish fishmeal and fish oil 
manufacturing company. 

Mr Philip Lynch, chief exec- 
utive of IAWS, said the acqui- 
sition of United Fish Products 
would more than double 
IAWS’s marine protein Inter- 
ests making it the leading pro- 
ducer of oil and marine pro- 
tein in the UK as well as one 
of the four largest producers 
hi the European Union. 

UFP has a processing plant 
in Aberdeen and manages pro- 
cessing companies in the Shet- 
land Islands and Grimsby. 


IAWS is making the offer 
through a subsidiary, Braemar 
Fish Products, which is offer- 
ing £26JiO for each share in 
cash or loan notes. 

In the y ear to September 30 
1993 UFP*s pre-tax profits rose 
47 per emit to £737,000. Net 
assets at completion would 
total £8.7m. 

IAWS has acquired other 
fish oil and fishmeal busi- 
nesses- In the UK In recent 
years, including the fishmeal 
business of Nordos, an off- 
shoot of British Petroleum. 

Mr Lynch said the acquisi- 
tion would bring benefits of 
scale in technical sales and 
marketing as well as research 
and development in process 
and product arras. 


US link for Inchcape 
insurance offshoot 


By Richard Lapper 

Bain Hogg Group, the 
insurance broking group 
owned by Inchcape, the 
motors, marketing and services 
concern, is planning a strategic 
alliance with Acordia, the Indi- 
anapolis-based company which 
Is the world’s eighth largest 
insurance broker. 

The move foOows Inchcape 's 
takeover of Hogg Group earlier 
this year, which created the 
world's seventh biggest broker 
and signalled Inchcape’s ambi- 
tions in the sector. 

Bain Hogg also said it had 
entered into talks to sell its 
brokerage operation, Bain 
Hogg Robinson, to Acordia. 
The alliance would allow the 


two groups to offer an 
improved international ser- 
vices to clients, drawing from 
both Bain’s strength in Europe 
and east Asia and Acordia’s 
position in the US. 

Acordia, a network of compa- 
nies providing insurance brok- 
ing, managed care administra- 
tion and consulting services, 
had revenues of $258m (£163m) 
in 1993. Health insurance, 
including managed care ser- 
vices, accounted for 51 per cent 
of its gross revenues. 

Acordia has grown rapidly in 
recent years from its strong- 
holds in the southern and mid- 
western states. It acquired 
American Business insurance 
in 1993 and Seattle-based Pettit 
Morey earlier this year. 


Stadi Varios £250m plan for Wembley 


By Simon Davies 

A rival consortium. led by 
Stadi Varios, will apply on 
Monday for planning permis- 
sion to reconstruct one of the 
world's most famous football 
venues, Wembley Stadium. 

The move will come in spite 
of the fact that the heavily 
indebted existing owner of the 
“venue of legends", the Wem- 
bley company, Is already hold- 
ing a financial beauty parade 
for a restructuring which 
would enable it to retain its 
principal asset. 

The company's hold on 
Wembley stadium is being 
challenged by a consortium 


formed by a private stadium 
company Stadi Varios, which 
claims to have financing pre- 
pared for the £250m project 

Mr Patrick Nally, who 
founded Stadi Varios, claims 
the stadium is “well past its 
sell-by date". He proposes to 
retain the twin towers, but put 
in place a 100,000 sealer mod- 
em stadium, with a retractable 
roof to allow greater usage. 

Backed by a consortium 
including construction compa- 
nies Tilbury Douglas and John 
Laing, it has offered E75m for 
the site, or a package "substan- 
tially In excess of £LQ0m" for 
the adjoining Arena and Con- 
ference Centre. 


However, Sir Brian Wotfson. 
chief executive of Wembley, 
said the company and its 
advisers had decided the pro- 
posals were “unrealistic, and 
not in the best interests of 
shareholders”. 

The company has rebuffed 
all attempts by the consortium 
to enter negotiations. 

Sir Brian said the stadium 
carried a book value of around 
£90m. which would leave 
shareholders with a substan- 
tial book loss. 

However, the price is under- 
stood to be negotiable. 

After discussions with the 
Football Association, Brent 
Council, and some of Wem- 


bley’s bankers, who are owed 
£l40m, Mr Nally remains confi- 
dent that it is viable. 

The consortium would raise 
funds from the sale of 164 exec- 
utive boxes, even though the 
current stadium has around 80 
per cent occupancy on the 
existing 60 suites. 

Mr Nally says construction 
must commence by early 1995 
to have the stadium ready for 
the European Championships 
in 1996. If Wembley does not 
agree, he says Stadi Varios will 
look at a competing site. 

Mr Nally Is involved in a sta- 
dium project in Derby, but sim- 
ilar projects in Sunderland and 
Glasgow have collapsed. 


Artesian to seek market listing 


By Simon London, 

Property Correspondent 

Artesian Estates, a residential landlord 
specialising in assured tenancies, yester- 
day announced plans to float on the stock 
exchange. It will be the first property com- 
pany specialising in this type of flexible 
tffiabey to seek a listing. 

~ Lesion will have initial assets of 
.comprising 28 residential proper- 
“ jndon and the south east of 
y.- 

'Mfcifroperties are let under 

tenancies-which give the landlord 



considerable freedom to increase rents and 
regain possession. 

The biggest quoted residential property 
company is Bradford property Trust, 
which has a market capitalisation of 
£280m. However, Bradford’s business cen- 
tres on buying properties let under mare 
restrictive regulated tenancies - usually 
at a discount to reflect the sitting rights of 
the tenant - and selling when the property 
becomes vacant 

Set up In 1989, Artesian recently came to 
the end of its five year qualifying period 
under the Business Expansion Scheme. In 
all 10 companies bearing the Artesian 


name have been set up under the BES, the 
last at the end of 1993, raising £42m. 

Initially only the first three enmpanins 
will be grouped together under the listed 
holding company. The directors said it 
was possible that other companies could 
be reversed into the listed company at a 
later date. They added that Artesian would 
consider buying other BES companies 
where investors were looking for an exit. 

Falling property prices mean that many 
similar companies have seen their asset 
values tumble over the last five years. 
Artesian has just dawed its way back to 
the asset value of I960. 


Small 
companies 
confident 
on growth 

By Peggy HoSnger 

Small companies remain 
confident about their growth 
prospects. In spite of inflation- 
ary pressures and impending 
tax Increases. 

A survey of 405 senior exec- 
utives around the country 
showed 57 per cart were more 
optimistic than just three 
months ago. 

The survey, “A View from 
the Boardroom", was sent to 
more than 1000 exe c u tiv es at 
companies with market values 
of less than £320m. It was the 
second six-monthly survey by 
the investment hank, SG War- 
burg, and carried out In 
August and September. 

Although confidence levels 
were slightly lower than 
before, Warburgs says the out- 
look is still bullish. Small com- 
panies were expecting strong 
growth in exports and 48 per 
cent reported order books bet- 
ween 1 and 10 per cent ahead 
of just three months ago. 

While demand was still a 
significant constraint, compa- 
nies were beginning to experi- 
ence a squeeze on capacity. 
Almost half expected to 
increase capital spending in 
the next year. 

Price rises were still diffi- 
cult, with just 22 per cent 
p lanning increases in the wwt 
throe months. Pressures from 
higher raw material costa 
would have to be absorbed 
through greater productivity, 

Warburgs remains optimis- 
tic about earnings potential 
for small companies. Mr Rich- 
ard Htekrnh rt Hiam, small com- 
panies analyst, said companies 
were looking for healthy 
increases in operating mar- 
gins, in spite of the pressures. 
He forecast earnings growth of 
16 per cent this year, exclu- 
ding companies expected to 
move from loss Into profit 


Utd Breweries 
in buy ahead 
of restructure 

By David Blackwell 

United Breweries, the 
financially troubled 
USM -quoted company con- 
trolled by Mr Vfiay Mallya, is 
to buy a private company 
operating 70 public houses. 
The deal will more than doa- 
ble the number of public 
houses operated by the group. 

The shares, which were 
suspended yesterday at the 
company’s request, were 
ahead l%p at fl%p. 

Shareholders will next week 
be asked to approve a plan to 
restructure the group's debts 
of £9m, held by four banks. It 
Is likely to Involve writing off 
at least £2 .5m of the debt 

Last April tbe group 
breached its banking cove- 
nants after a £7.2m write- 
down in the value of its 76 
public houses. A restructuring 
proposal put together in July 
feB through. 

Yesterday tbe group said it 
intended to restructure its 
debt and inject substantial 
capital by Issuing shares to a 
big new investor, accompanied 
by a non- underwritten issue of 
ordinary shares to existing 
shareholders- 

“It is likely that any issue of 
new ordinary shares will be at 
a price substantially below the 
current market price.” the 
group warned. 


Breedon 
rises 56% 
to £1.5m 

Breedon, the limestone 
quarrying and housebuilding 
group, raised pre-tax p r o fi ts 56 
per cent from £960,000 to £L5m 
in the six months to July 3L 
Turnover grew 30 per cent 
from £5. 05m to HL58m. 

The company said that while 
first time buyers had fallen 
away, sales of its top of the 

range properties were increas- 
ing. Once conditions improved, 
its low cost land bank would 
enable it to “maximise profit 
contribution". 

Earnings per share were 
3.53p (!L26p) and the interim 
dividend Is unchanged at l.75p. 

Molyneux returns 
to tbe black 

Molyneux Estates, the USM- 
traded property investment 
company, was back in the 
black at the June 23 year-end, 
with pre-tax profits of £Lllm. 
Last year losses were £2A3m. 

Turnover rose 26 per cent 
from £3.97m to £4JKfcn. Four 
acquisitions, costing £12m, 
were made during the year. 

The company’s property 
portfolio has been indepen- 
dently valued at £&Lfim, giving 


Allied Leisure £30m in 
loss after restructuring 


* 


By Richard Wotffe 

Allied Leisure yesterday 
announced pre-tax losses of 
SKUm for the 48 weeks to June 
19. after withdrawing from its 
nightclub businesses to refocus 
on its ten pin bowling 
operations. 

The company blamed the 
deficit, which compared with a 
£2S4m profit for the previous 
year, on write-downs of 
£12.85nL, losses an closures of 
£11.5 lm and restructuring 
costs of £4- 41 m. 

A year of board upheavals 
continued with tbe appoint- 
ment of Mr Ken Scobie as 
part-time chairman, replacing 
Mr William Davis. Mr Scobie 
resigned as cbief executive of 
Brent Walks:, the property and 
leisure group, in January 1983. 


Allied is still seeking a chief 
executive after Mr Richard 
Carr resigned In March. 

Yesterday’s results were for 
a shortened 48-week period, in 
order to announce the sales 
Ami finance arrangements. 

The company’s half-year 
writedowns and pro visions had 
breached its banking cove- 
nants, but the hanks have now 
agreed to Axfrmd facilities to 
September 19 next year on the 
basis that Allied sells three 
nightclubs and grants options 
in respect of 2^5m shares. 

The sale to Rank Leisure of 
the (dubs, in the Bournemouth 
and Poole area, raised £4.5m 
which will be used to cut bor- 
rowings of £13.7m. 

Mr Scobie said: “I think we 
are in a situation where the 
company h a * foiran its medi- 


cine. What we now have Is a 
core business of bowling allies. 

“I think the only resem- 
blance between Brent Walker 
and this company is that they 
are both listed in the leisure 
sector," he added. 

Turnover fell from £24J8m to 
£22. lm, and operating profit 
declined to £463,000 C&9&n). 

However. Allied’s remaining 
operations produced pre-tax 
profits or about £2m. Like-far- 
like bowling sales fell by 105 
per cent across the year, but 
the decline slowed down in the 
second half. 

Net interest payments were 
cut to £l.32m (£l.64m) and 
gearing stood at 67 per cent 

The directors declared no 
dividend (3p) and losses per 
share were 45.49P, compared to 
earnings of 5.22p. 


Alpha Airports maiden 
interim on rise to £11. 3m 


By David Oackwefl 

Alpha Airports Group, the 
airline catering company 
floated by Forte in February, is 
paying a maiden interim divi- 
dend of L6p a share. 

moved ahftnH from 
4-71p to 5-Jlp in the six months 
to the end of July. Pre-tax prof- 
its were 6 Jo per cent higher at 
HIM (£10.6m) mi sales 11.9 
per cent ahead at £232m 

(£206m). 

The shares, priced at I40p for 
the flotation, eased 4p yester- 
day to close at L58p. 

Mr Paul Harrison, chief exec- 
utive, said the dividend 
reflected group confidence in 
the full-year outcome and “a 
very sound performance." 

The sales increase was 
driven by the retail trading 
division, which operates shops 
at a irpo r ts and now accounts 
for more than half group turn- 
over. The division's sales rose 
from GQ2m to £124m, mainly 
on the back of a new contract 
at Gatwick and good growth at 
provincial airports. 

However, margins were 
tighter and operating profits 
were only just ahead at £3Jtm 
(£3 .2m). 

The in-flight catering divi- 
sion lifted sales from £106m to 
£I09m. Overall margins were 
unchanged at 7.7 per cent, 
while operating profits were 
ahead at £8.4m (£8. 1m). 

In the UK tiie charter market 
accounted for 30 per cant of 
sales, up from 26 per cent pre- 



Paul Harrison (left) and Rodney Galpin, the new chairman: now 
celebrating the catering group's confidence in the full year. 


vionsly. Cost cutting on sched- 
uled short haul and domestic 
flights was reflected in a redac- 
tion in the catering spend per 
passenger. UK operating prof- 
its eased from £8J6m to £6.4n. 

Operating profits were ahead 
in Europe from £L2m to £L9m, 
while in the US they fell from 
£300,000 to £100,000, mainly 
reflecting a shortfall at a new 
kitchen in Newark that is not 
yet covering its fixed costs. 

The results include a contri- 
bution of £200,000 from joint 


ventures in Trinidad and Aus- 
tralia. 

Capital investment, exclu- 
ding the joint ventures, was 
£10m. ft is expected to reach 
£13m for the fUH year - a fig- 
ure seen as exceptional follow- 
ing completion of several facul- 
ties. 

Net interest payable fell from ff- 
£700,000 to £600,000. Borrow- 
ings were reduced from £2&8m 
to £18.4m, cutting gearing to 49 
per cent from 82 per cent at the 
time of the float 


Apta Nursing in reverse 
takeover of Midland Assets 


By Richard Wotffe 

Apta Nursing Services, which 
operates 13 nursing homes in 
the West Midlands and Berk- 
shire. yesterday announced a 
reverse takeover of Midland 
Assets, tbe nursing borne 
group. 

Midland conditionally agreed 
to acquire 39.7m ordinary 
shares and is raising £25m of 
new working capital by way of 
a 1 for 3 rights issue of UL9m 
shares at 17p. 

The group, to be renamed 
Apta Healthcare, said it would 
use the capital to “develop tbe 
business", including further 
acquisitions. 

The takeover Increases the 


Apta’s number of beds by 34 
per cent to 628, rising to 898 by 
April 1996. 

Existing shareholders will be 
offered a bonus issue of war- 
rants on a 4 for 5 basis, exercis- 
able at I5p. 

Guinness Mahon has agreed 
to ipflfrp a standby nwh offer 
for 75 per cent of Midland hold- 
ings at I9p per share, including 
the forecast interim dividend, 
rights and warrants. 

Midland forecasts an interim 
dividend of 0.4p per share and 
a final of 0.5p. Pretax profits 
for the six months to October 
31 are expected to be no less 
than £62^500 (nil). 

Apta’s pretax profits for the 
six months to October 31 are 


NEWS DIGEST 


an increased net asset value 
per share of 79£2p (S2.75p). 

Tbe final dividend is l-25p, 
making a total of 2p (lp). 

Increased exports 
behind Goodwin rise 

Increased exports helped Good- 
win, the mechanical and 
refractory engineering group, 
to almost double pre-tax profits 
from £208,000 to £383,000 in the 
year ended April 30, on turn- 
over 9 per cent higher at 
£l4.75m. 

Earnings per share were 2p 
higher at 3.8p and the single 
dividend is held at Q.655p. 

Red meat sector 
problems hit Norish 

A fall in pre-tax profi ts from 
I£LUm to l£868,0Q0 (£857,000) 
was announced by Norish, the 
Irish group which provides 
food refrigeration and distribu- 
tion services, for the first half 
of 1994. 

The company said the results 
had been affected by difficul- 
ties in the red meat sector and 
particularly hit the Irish 
stores. Its continued develop- 
ment into commercial markets 
had reduced the group’s expo- 
sure to commodity products 
and the opening of a third 
store in Britain hid acceler- 
ated that process. 

Turnover slipped to I£4-74m 


d£5.18m). Tbe dividend is held 
at 4.47p, payable from earnings 
of 8.42p (9J8Sp) per share. 

Servomex ahead 
with £856,000 

Servomex, gas analysis instru- 
ment maker, raised interim 
pre-tax profits from £747,000 to 
E866JXX) for the six months to 
end June, after taking restruct- 
uring costs of £148,000. Final 
restructuring costs of £110,000 
are forecast in the second half. 

Turnover was level at no.Tm 
(£10.8m). A number of its huge 
international customers were 
sCQl reducing plant capacity. 

Among the areas targetted 
for growth, environmental 
sales rose 59 per cent, Asia 
Pacific sales grew 38 per cent 
and transducers 24 per cent. 

Earnings per share came out 
at 5.2p (4Jtp) and there is an 


expected to be no less than 
£387.000 (£256.000). 

Midland's listing was 
suspended yesterday, with 
dealings expected to restart on 
October 18. The company was 
created in May to acquire four 
nursing homes from Northern 
Leisure for £l^m. 

The new company’s chair- 
man will be Sir David Rowe- 
Ham. currently at Apta. 

Mr Trevor Wee, chief execu- 
tive, said the group's strategy 
would be to expand its activi- 
ties in the sub-acute care sec- 
tor, which commands high fees 
of up to £1.000 a week. 

The impact date is set for 
September 22, with an extraor- 
dinary meeting on October 14 


increased interim of 2-lp (lAp). 

Mining provision 
hits Europe Energy 

A provision of £679,884 against 
the permanent diminution of 
its mining assets left Europe 
Energy Group with pretax 
losses up from £132,817 to 
£951.968 for the year ended 
March 81. 

New management took con- 
trol in January. Changes have 
been made to address the diffi- 
culties of the mining 
operations and • the board- is 
confident the problems have 
been contained. The motor 
dealership acquired earlier this 
year was profitable and had a 
successful August 

Turnover, Including the 
acquisition, rose to £2.64xn 
(£2.12m). Losses per share 
came to 2j96p (G.45p). 


DIVIDENDS ANNOUNCED 


Current 

payment 


ASad Leisure 
Alpha AVportS 


-On 


Breedon -■ , 

■ Irct 

fti 



HattUoMflM 


Molyneux Est§ - — -fln 

Sewomwc. 

W 


nfl 

1.8 
1.75 
0.655 
5.5 
12 
125 
4.47* 
Z 1 


Date of 
payment 

Cones - 
P«K*>g 
cfofcSend 

Total 

for 

year 

Total 

teat 

year 

. 

2 

nU 

9 

Nov 25 

_ 



Oct 28 

1.75 

_ 

4.6 

Nov 9 

0.855 

0.655 

0.855 

Nw za 

55 


14,85 

Oct 31 

11 

a 

48 

Nov 17 

1 

2 

1 

Ota 20 

4.47 


11.47 

Nov 4 

1.6 

- 

04 


DMdends drawn 
increased capital. 


lUSH «* tsd t°" 





lr,l < 


FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1 994 


^ n| yi(lifij 




m"* i 






[ Ti * vTV 

f 1,1 i it! V'nl' 


INTERNATIONAL COMPANIES AND FINANCE 


Credit Lyonnais warns of further charges 


By Andrew Jack in Paris 

Crtdit Lyonnais, the troubled 
French banking group, may 
need to make additional provi- 
sions of up to FFr25bn 
($4.73bn) against its heavy 

losses, government sources 
said yesterday. 

Mr Jean Peyrelevade. who 
was appointed by tho govern- 
ment as chairman 0 f the state- 
controlled group last year, told 
offlciala earlier this week that 
total provisions could be in the 
range of FFrishn-FPWSbn, the 
sources claimed 

The size of the provisions, 
which would be among the 
largest reported in French cor- 
porate history, emerged after 
Crtdit Lyonnais announced 
unexpectedly on Thursday that 
it would be delaying publica- 
tion of its first-half results 
pending completion of “certain 
analyses". 

The bank confirmed yester- 
day that it was unlikely to 
issue new shares to help 
finance its restructuring before 

Lauritzen 
Shipping chief 
executive quits 

By Hilary Bames 
in Copenhagen 

Mr Peter Weitermeyer, chief 
executive of J. Lauritzen Ship- 
ping since 1986, resigned with 
immediate effect yesterday. No 
reason for the resignation was 
given. 

Lauritzen Shipping made a 
pre-tax loss of DKr289m ($45m) 
in the first half of this year, 
following losses of DKrl83m 
in 1992 and DKr465m in 1993. 
Lauritzen Holding, which 
includes a shipyard and sev- 
eral marine-related manufac- 
turing companies, made a first- 
half loss of DKrl98m and a 1993 
loss of DKrlTOm. 

The shipping company oper- 
ates one of the world’s largest 
fleets of refrigerated cargo ves- 
sels, where freight rates have 
been hit by the weak dollar 
and the European Union's 
quota restrictions on banana 
imports from South America. 
Freight rates for the group’s 
fleet of small gas tankers have 
been weak. 

Mr Claus V. Ipsen, formerly 
the shipping company's 
finance manager, takes over 
from Mr Weitermeyer. 


the end of the year - a possibil- 
ity that had been floated by Mr 
Peyrelevade in March when he 
announced losses of FFi&9bn 
far 1993. 

In a unusually public 
exchange, the French ministry 
of economy and finance 
responded late on Thursday 
night to Credit Lyonnais’s deci- 
sion with a statement it 
had been alerted to certain 
"substantial additional provi- 
sions’* relating hi risky assets 
to be accounted for in the 
results in the six months to the 
end of June this year. 

Mr Edmond Alphand&y,' the 
economy minister who was in 
New York when the story 
broke, said he had entrusted 
Mr Peyrelevade with carrying 
out the necessary work to 
research the provisions 
present them in line with regu- 
latory requirements. 

He stressed the bank had the 
state’s fun sup p o rt and would 
do whatever was necessary. 
However, one official said yes- 
terday: “The state’s support is 







Jean Peyrelevade (left) entrusted by Edmond Alphand£ry, 
economy minister (right) to carry out the necessary work 


obvious. Its like saying that 
we are opening an open door.” 

Credit Lyonnais would not 
be drawn on the timing and 
s ize of the provisions and the 
nature of its dialogue with the 
government. However, it said: 
“We are delighted to have this 
public confirmation of the 
state’s complete support." 


Sources within the bank reit- 
erated yesterday the discus- 
sions with the government 
triggering the delay in publica- 
tion of its results related more 
to the way in which It would 
help with a rescue than con- 
cern over the provisions’ size. 

However, government 
sources maintained the first 


they had known about the 
additional provisions and the 
need for state support was on 
Monday, and had until then 
relied on assurances provided 
by Mr Peyrelevade in early 
summer that provisions would 
total FFrSbn, which could be 
covered from Internal sources. 

Officials are said to have 
been irritated by the diver- 
gence of the provisions from 
those agreed In the restructur- 
ing in April, and hy the vague 
and broad range of possible 
additional amounts that the 
group says must be set aside. 

Credit Lyonnais said the 
state of the French equity mar- 
ket and details emerging about 
its financial position moant it 
was very unlikely It would pro- 
ceed with a planned issue of 
FFr4bn-FFrSbn new shares 
before the end of the year. 

The group's certificats dVn- 
veslissement, the non-voting 
shares and the only ones pub- 
licly traded, dropped nearly 6 
per cent to close at FFr305 last 
night. 


Pirelli returns to black in first six months 


By Robert Graham 
fri Rome 

Pirelli, the Italian cables and 
tyre manufacturer, annmmrpd 
a modest return to profit after 
more than two years of tough 
restructuring and losses. 

Half-year results released 
yesterday showed net group 
profits were L5L6bn ($35.08m) 
against a less of L62.7bn din- 
ing the same period in 1993 
while the parent company had 
swung to a LLSbn profit from a 
LlOL3bn loss. 

Mr Marco Tronchetti Prov- 
era, chief executive, has been 
predicting the group would 
return to profit and analysts 
said the recent movement In 


the group’s shares suggested 
Investors felt the worst was 
behind Pirelli 

He also said that Pirelli 
would invest L2^00hn over the 
next three years, all self-fi- 
nanced, of which Ll.OOObn 
would be allocated to research 
and development He forecast 
that there would be a new 
cables joint venture in the Asia 
Pacific region and said the 
group was aiming to concen- 
trate on added value products 
with some L500bn of revenue 
mining from telpcnms products 
by 1996. 

The restructuring has seen 
Pirelli reduce the number of 
plants from 102 to 80 and the 
workforce cut by more than 


10,000 people to less than 
40,000. In the first half of the 
year a further 1,019 jobs were 
pruned. 

Divestments over the past 
two and half years have helped 
slash the debt to Ll ,8251m from 
M.OOObn, thus reducing finan- 
cial charges. 

The net debt equity ratio has 
improved, dropping to 0.60 per 
cent from 0.87 in nrid-1993. 

The company said the 
accounts were no longer 
affected by restructuring 
charges. 

Reduced financial charges, 
along with leaner management 
and tighter control over costs 
were a large contributor to 
new profitability. 


Group sales were only mar- 
ginally up at L4,687bn. Net 
equity stood at L.3,030bn 
in line with the first half of 
1993. 

The company was cautious 
on full-year results, pointing to 
an as yet patchy recovery in 
many of its markets. 

Pirelli also warned about the 
unforeseen effects of industrial 
action at Pirelli Armstrong in 
the US. 

Mr Cesare RnmiH the chief 
executive officer of Fiat, leaves 
the board while Mr Riccardo 
Perisstch, who has been direc- 
tor general of industry at the 
Brussels Commission, joins the 
board and will taka charge of 
institutional relations. 


D Blech assets taken over by Josephthal 


By Richard Waters 
in New York 

The assets of D. Blech, a New 
York broking firm which was 
forced to close on Thursday 
due to an inability to meet reg- 
ulatory capital requirements, 
were taken over yesterday by 
another firm, Josephthal, Lyon 
& Ross. 

It was not clear whether 


Josephthal would continue to 
wiaitp markets on Nasdaq in all 
the stocks which had been 
traded by Blech. 

The firm had specialised in 
small biotechnology stocks, 
having taken a number of com- 
panies in the sector public. The 
shares of many of these compa- 
nies plunged on Nasdaq on 
Thursday as rumour spread 
that Blech would close. 


This advertisement is issued in compliance with the requirements of The International Stock 
H»rh«mg «- of the United Kingdom and the Republic of Ireland Limited (the “London Stock 
Exchange"). It does not constitute an offer or an invitation to subscribe for, or purchase, any 
securities. Application has been made to the London Stock Exchange for admission to the Official List 
of the Ordinary Shares and Warrants of Hambro* Smaller Asian Companies Trust PLC (the 
"Company"). Iris expected char dealings in the Ordinary Share* and Warrants of the Company will 
commence separately on 7th October, 1994. 

HAMBROS SMALLER ASIAN COMPANIES TRUST PLC 

(Incorporated at England aztd Wales tmdtr the Companies Aa 1985 regiuered number 2965534) 

Placing 

fry 

NatWest Securities Limited 

of up to 

SO, 000, 000 Ordinary Shares of US$0.10 each 
(with Warrants attached on a 1 for 5 basis) 
at US$1 per Ordinary Share 
The minimum subscription will be for 30,000 Ordinary Shares 


Uncertainty about whether 
Blech’s holdings of these 
stocks would eventually be 
dumped on the market contin- 
ued to hold prices down yester- 
day. 

The assets taken over by 
Josephthal did not include 
Blech’s inventory of stocks. 
The firm said it had agreed to 
tain- on the firm’s brokers, ana- 
lysts and traders, along with 




its accounts. It is also planning 
to take over two of Blech’s four 
offices, based in New York and 
Boca Raton, Florida. 

Blech’s demise follows a dif- 
ficult period on the stock mar- 
ket for small biotech compa- 
nies. In the first eight months 
of the year, shares in about 
four-fifths of the publicly 
traded companies in the sector 
fell in value 


De Klerk 
confident 
on SA 
debt rating 

By Barry RBey in Edinburgh 

Mr F.W. De Klerk, the South 
African deputy president, yes- 
terday said he was confident 
the credit rating reviews being 
conducted by Moody's and 
Standard & Poor's would 
result In a BBB, or investment 
grade, rating for the country's 
international debt. 

He brushed aside news that 
the London-based credit rating 
agency IBCA had only 
awarded an inferior BB. or 
sub-investment grade, rating 
oil Thursday. 

The IBCA rating was greeted 
with disappointment In South 
Africa because many fund 
managers are not allowed to 
buy sub-investment, or junk 
bonds, taut there was little sur- 
prise in the international mar- 
kets. 

The South African govern- 
ment is seeking ratings from 
the international rating agen- 
cies in order to facilitate its 
return to tap the international 
bond markets, to fund its 
reconstruction programme. 

Speaking in Edinburgh to 
European securities analysts, 
Mr De Klerk expressed regret 
that South Africa’s political 
transformation had not yet 
been adequately recognised by 
the markets. “I find it strange 
that the financial markets 
should reflect a scepticism on 
the government's ability to 
govern the country efficiently 
and prudently, nils is unfair 
to the government of national 
unity and has no basis in 
fact,” he said. 

He insisted the government 
would maintain fiscal disci- 
pline and would not repeat the 
populist mistakes of other 
countries in funding the recon- 
struction and development 
programme. 

Higher interest rates would 
increase debt service costs and 
thus would lead to a slight 
expenditure overrun for 
1994-95 but steps would be 
taken to Rntmee it on a sound 
basis. Mr De Klerk said the 
South African authorities 
would not spring a surprise on 
the nervous markets by an 
early ghnlltinn of the financial 
rand system. They were keen 
to change as soon as possible - 
but would not be rushed. 


GM rental sale 
breathes life into 
buy-out business 


T he sale of General 
Motors' National Car 
Rental subsidiary to 
Vestar Equity Partners, 
announced on Thursday, 
shows that the US buy-out 
movement Is not dead after 

alL 

The deal is rumoured to be 
worth about $lbn including 
debt - a figure described by an 
adviser yesterday as not far 
oft If so. it is only the third US 
billion-dollar buy-out of the 
1990s (the others were the Pay- 
less retail chain and the insur- 
ance company American Re). 

This is a for cry from the 
glory days of the 1980s. It Is 
also a long step for Vestar, a 
buy-out firm founded in 1988 
by Mr Daniel O'Connell, for- 
mer co-head of management 
buy-outs at First Boston. To 
date, Vestar has done 13 deals 
with a total purchase price of 
$1.6bn. The National Car 
Rental deal takes it into rather 
a different league. 

However, Vestar has a useful 
asset in the form of Mr John 
Howard, its joint chief execu- 
tive. 

Until he joined the firm in 
1990, Mr Howard was with 
Wesray, another buy-out firm 
founded by Mr William Simon, 
ex-treasury secretary. One of 
Wesray’s more spectacular 
coups, in which Mr Howard 
was closely involved, was the 
1986 buy-out of Avis, National 
Car Rental’s larger rival. 

The sums involved in the 
Avis deal are worth recalling. 
Wesray bought Avis in July 
1986 for $265m phis $1.34bn of 
assumed debt. It then raised 
$57Qm through disposals. 

I n September 1987. It sold 
Avis to its employees for 
$1.75bn. in just over a year, 
Wesray had more than tripled 
its money. 

Whether the same can be 
done with National Car Rental 
is another matter. 

Its recent history is decid- 
edly chequered. 

General Motors first took a 
stake in 1988. In 1992, it 
took control, and in the same 
year took a $744m charge 
against profits for losses and 
restructuring at its new subsid- 
iary. 


For a while, GM thought 
seriously about winding the 
business up. 

However, at the start of 1993, 
it brought in Jay Alls, a firm 
of specialist consultants, to 
sort it out A year later GM 
announced that the business 
bad been profitable at the oper- 
ating level through 1993, and 
that it was t hinkin g of selling 
it 

At about the same time. Ford 
was moving to take 100 per 
cent ownership of its own car 
rental business, Hertz. 

The difference in strategy 
between close rivals is stri- 
king. Ford points out that 
besides providing a large sales 
outlet for its cars, the rental 


Tony Jackson writes 
on the background 
to Vestar’s takeover 
of the US car hire 
group worth an 
estimated $ibn 


business allows it to evaluate 
their performance. 

“We’ve been pretty happy 
with Hertz,” Ford commented 
yesterday. “After all, it is the 
car business." 

The GM Une is somewhat dif- 
ferent 

Rental, it soys, is just not 
profitable enough. It can 
involve selling cars on unat- 
tractive terms, and often 
means taking them back sec- 
ond hand. 

“In the last couple of years." 
GM said yesterday, “we’ve 
been pulling back the number 
of cars we’ve sold to rental 
agencies. We're trying to redi- 
rect into sailing direct to cus- 
tomers, which is better for GM 
than the subsidised market of 
rental fleets." 

Meanwhile, GM will main- 
tain its existing supply agree- 
ment with National Car 
Rental. 

Thereafter it is up to Mr 
Howard to find value where 
GM foiled. In the chiller cli- 
mate of the 1990s, perhaps 
Vestar is taking a risk after 
all 


§ 9 TO SAVE ALL # 
THESE TREES WE \ 
•• HELP CHOP • 
•DOWN THIS ONE. • 


SHARE CAPITAL 

Authorised Issued and to be issued, fidfy paid* 

Nominal I'abc Number Nominal Value Number 

USt?, 500,000 75,000,000 Ordinary Shares of USSO. 1 0 each USS5, 000,000 50,000,000 

* On the basis that ail the Ordinary Shares available under foe Placing are allotted and issued 
In addition to the Ordinary Shares, the authorised and issued share capital ofthe Company following 
the Placing will include 49,998 Redeemable Preference Shares of £1 cadi and 2 Preference Shares of 
£1 each. ____ 

Listing Particulars relating to the Company have been approved hy foe Undon Stock Eatdrangc as 
required by the listing rules made under Section 1 42 of foe Fmanoal Semres Act 1986 and are 
available during normal business hours on any weekday (tourdays and pubhc holidays excepted) 
hum the Company Announcements Office, foe London Stock Exchange, Capel Cowt Entrance, off 
Bartholomew Lone, London EC2N l HP, by coUecnon only up to and including 27th September, 
55?. aSdduitognomial business hours up to and Including 10th October, 1994 from:- 
NoiWcat Securities Limited Hambros Bank Limited Itembros Smaller Asian 

l V 5 Ri*honssaie 41 Tower HOI Companies Tnat PLC 

nSBWiopsgate London EC3N 4HA 41 Tower Hill 

EC2M3XT EC3N4HA 

24* September, 1994 


I 


•«•••• • • 

mMiIiV 

• a* \ 
■ * « • a . • 


The Rnanrt.4 IVors regrets azy embwiwsmenl caused by typographical errors In the Win Mtxtlsoa Supermarkets Pic 
trUrrtm KcAjSspuLftsbal tn tta paper on September 23rci 199*. The atfcaUsexiieiKsfwuU tare apjMn^ 


Wm MORRISON 
SUPERMARKETS PLC. 


INTERIM RESULTS 
AT A GLANCE 


26 weeks 26 weeks 52 weeks 
ended ended ended 

31 Ju/y 1994 31 July 1983 30/an 19W 


SQ 



Turnover 
Operating profit 
Profit before tax 


Smilii 


, Earnings per share 4.05p 3.38p 

Dividend per share oiMp 02 p 

• Turnover increase - 15.4% 
Operating profit increase - 24.0% 


• Ope 

• Profit 1 



' Tropical bnfcood trees at more 
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kjggco hue do about demoting 
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SoiWWFpsjed in Costa Rio is 
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hnagjgg ion xrtnl others ao a nd k. 
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this is Btt&rtsB irensd the wwH bf 
wnriag to the Maabciip Office: a tbc 
rites Won 


6 


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r 





FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 



COMMODITIES AND BOND PRICES 


WEEK IN THE MARKETS 

Metals 
finish on a 
high note 

Metals markets finis hed in a 
buoyant mood this week with 
the precious sector resuming 
its earlier uptrend and copper 
leading a late surge at the Lon- 
don Metal Exchange. Gold 
reached a 13-month Ugh. cop* 
per a 25-mcrath high and alu- 
minium. a 3%-year high. 

Bullion dealers said the gold 
market appeared to be bracing 
itself for a fresh assault oq the 
MOO-a-troy ounce barrier as a 
rise yesterday took the 
price to $386, up 85.40 on the 
week. That followed an over- 
night jump in response to the 
strength of the New York sil- 
ver market In London cash sil- 
ver ended at S5.70V* an ounce, 
up 9 cents on the day and 21 
cents on the week. 

“People were playing the [sil- 
ver-gold] spread so gold fol- 
lowed suit." a dealer told the 
Reuters news agency. 

"A lot of aggressive buying 
bas been done to maximise 
impact which argues for cau- 
tion,” said Andy Smith, bullion 
analyst as Union Bank of Swit- 
zerland. . . Maybe they are 
right [that the gold price will 
go to $4ool. but they have to 
take profits sometime.” 

“Everybody is bullish and 
talking about $400.” said 
another analyst. “But all the 
indicators point to it being 
overbought” 

“We haven’t seen sustained 
demand like this for years,” 
commented a dealer. "It means 
the rule book goes out the win- 
dow." 

Platinum followed the trend, 
a $2.75 rise to $421 an ounce 
yesterday taking the advance 
on the week to $11.75. 

For the base metals gener- 
ally bullish fundamentals were 
bolstered by bouts of specula- 
tive buying as copper and alu- 
minium led an 
across-the-board rise yesterday. 

Having consolidated earlier 
gains, the three months deliv- 
ery copper price, fuelled by 
commission bouse buying that 
triggered stop-loss orders. 


broke through resistance to 
close at $2,570.50 a tonne, up 
$63 on the week and the high- 
est level since August 1992. It 
moved further ahead in afler 
hours trading. 

The aluminium market was 
bolstered by news of a 19,700- 
tonne fall in LME warehouse 
stocks, which followed one of 
13,675 tonnes announced and 
took the week’s drawdown to 
1.4 per cent. The three months 
price closed $8 higher at 
$1,631.50 a tonne, taking the 
gain on the week to $23. after 


LME WMHHCMJSi STOCKS 

(As at Thursday's <*»o) 

Somes 

Atomadum 

-19.700 

to 2-3+9575 

MiaiMum atoy 

-200 

lo 22400 

Copper 

-1,750 

to306^00 

Lead 

-925 

to367J17B 

Hckd 

+1.170 

In 142238 

Zlne 

*22t 

to 1^34^00 

Tin 

-110 

to 32.155 


edging back from a peak of 
$1,636 a tonne. 

Zinc, with its continuing 
overproduction, has been the 
Cinderella contract at the LME 
for some time. But it was able 
to join in the party yesterday 
following news that Noczmk of 
Norway planned to cut output 
by up to 20 per cent next year 
at its 140,000-tonnes-a-year 
Odda smelter, hi response the 
three months zinc price 
reversed its $10 decline over 
the previous four days to dose 
at $1,045.50 a tonne, up $13 on 
balance. 

Norzink's announcement 
was welcomed by Union Min- 
iere, which two years ago 
closed its 120 , 000 -tonnes-a-year 
Overpelt smelter. But the Bel- 
gian group cautioned that fur- 
ther producer cuts would be 
needed to reverse the continu- 
ing build-up in world zinc 
stocks. 

At the London Commodity 
Exchange meanwhile, coffee 
futures were moving back 
towards the 9-year highs 
reached earlier in the week. By 
the close the November posi- 
tion was trading at $4,068 a 
tonne, up $23 on the day and 
$136 on the week. But that was 
still $72 below the peak to 
which it had been lifted at one 
point on Thursday by concern 
about the continuing drought 
in Brazilian growing areas. 

Richard Moone y 


WEEKLY PRICE CHANGES 

Latast Change Year 1994 



pricfifl 

on week 

ago 


Low 

Gold per nay oz. 

$388.00 

*6A 

$35756 

$39650 

$38950 

Silver per opy az 

360 50p 

+16-0 

274. OOp 

38450p 

331 5dp 

Murreraum 99.7% foaeft 

SI 0025 

+73 

$1100 

$158550 

*110750 

Capper Grade A (cash* 

S255&0 

66.5 

Si 7495 

$2521.00 

$173150 

Lead (cash) 

$6215 

. 

$387.0 

$8215 

$426.0 

NfcW t=nan) 

$6450 

+22-5 

S43435 

$6490 

$52105 

23nc SHG (cart) 

$1023 

+-12.5 

$6755 

$1023 

$9005 

Tin tcart) 

$6410 

+147-5 

$4582.5 

$5660.0 

$47305 

Cocoa Fusraes Dec 

£1004 

*16 

£913 

£1124 

£859 

Coffee Futures Nov 

*4067 

♦135 

$1264 

$4091 

*iire 

S^ar (LOP Row) 

$311.1 

-5a 

S25S5 

*310.4 

$252-9 

Barley Futures Nov 

£103.90 

-0.40 

£105.00 

£10550 

£9255 

Wheat Frames Nov 

£106.83 

-lao 

£10450 

£11750 

£97.80 

Cotton Oudook A Index 

74.50c 

-1.4 

55.10c 

87.10c 

02-45C 

Wool (64g Super) 

475p 

- 

327p 

48Sp 

342p 

OH Preffi Bend) 

S16.6SX 

♦oai 

$1056 

$1001 

$13.10 


Per tonne urtsst oOmnIm And. p PancMVg. c Cam to. « Hot 


BASE METALS 

LONDON METAL EXCHANGE 

(Price* ham Amrigranafed Metri Trading) 


■ Amawaum.aBJ raamrg peMorre) 



Cart 

3 roots 

Ctoee 

1605-0 

1631-2 

Ptevtato 

1601-2 

1623-4 

HghAWr 

16115 

1635/1624 

AM Offlcfol 

1611-115 

1633-35 

Kerb dose 


16234 

Open feiL 

240,424 


Total dally turnover 

36.482 


■ AUJMMUM ALLOY (S per tonne) 


Ctoee 

1680-90 

1065-00 

Prevtaus 

1650-60 

1670-5 

IRghAow 


1885/1685 

AM Offlcfel 

1680-S 

1685-90 

Kerb dose 


18605 

Open InL 

3^15 


Tatra da*Y tunaver 

1526 


■ LEAD (t per tonne) 


Close 

6205-25 

635-7 

Previous 

B10-1 

824-45 

HfoMrav 


637/625 

AM Ofltaal 

8195-205 

634-45 

KarD cfose 


834-6 

Open tot 

40.422 


Total Only turnover 

8520 


■ MCKB. (Spar tome) 


Ctoee 

6445-55 

8546-50 

Pnrvroua 

6405-10 

6505-10 

rtgMow 


8580/6460 

AM Offlctai 

8447-50 

85456 

Kerb ctoee 


6530-35 

Open InL 

66.918 


Total dafly turnover 

10,781 


■ 7TH ($ par tonne) 



Ctoee 

S405-1S 

548590 

Previous 

5325-30 

5400-05 

Hgh/tow 

5375 

55005420 

AM Official 

5370-5 

5450-66 

Kerb cfose 


5480-75 

Open InL 

10274 


Tatra duty turnover 

4232 


■ ZIWC, apodal Wgb prsde « par forme) 

Ctoee 

10225-35 

1045-8 

Previous 

909-1000 

1022-3 

WgfVtow 


1046/1025 

AM OftVdai 

1012-4 

1036-65 

Kerb c*xx 


1042-3 

Open tot 

97,103 


Total da*y turnover 

28536 


■ COPPHV 9«de A <$ per tome) 


Ctoee 

25555-65 

2570-1 

Pravtous 

25195-205 

2537-8 

MgMow 

25405 

2S72/2S42 

am OKfcra 

2540-05 

25578 


Kerb dose 2564-5 

Open M. 211.007 

Total drily turnover 8S.346 


■ UK AM Official OS rats 1-5757 

me Cloatnfl C/s ratac 1-5822 

Spec 1.5820 3 nOClSSOO 6 mBKl.5771 9 m*Kl-57(5 


■ WON GRADE COPPffl tcousq 



Gkraa 

Dafe 

Mah lew 

Open 

tot 

vra 

*P 

127.80 

+205 

12050 12020 

2ja 

748 

Oct 

12125 

+1.40 

122X0 121.15 

?B?7 

561 

ftov 

11033 

+ 1.05 

11000 11000 

738 

20 

Or 

nan 

+1-25 

119L60 11020 43356 

Bivin 

Joe 

11010 

+120 

11090 11800 

575 

20 

Fob 

low 

117.45 

*1.15 

11700 11750 

395 

BtUOO 

99 

8072 


PRECIOUS METALS 

■ LONDON BULLION MARKET 
(Worn euppied by N M BndiraftW) 


Goto (Troy oz.) 

$ price 

£ equlv. 

Cfo» 

395.75-30635 


Opening 

39630-39 040 


Morning flx 

39050 

251-347 

Afternoon At 

395.70 

250-729 

Day's High 

386.70-307.00 


Day's Low 

3900009500 


Previous ctom 

3930049400 


Loco U$i Mean Gold LenAn Rates (1/9 USS) 

1 mmOti 


2 months 

_4.55 12 roortth* — _ — 5.13 

3 months — — 

— 4.82 


S Ivor Rx 

fYtrOy oz. 

US cts etjiiv. 

Spot 

362.75 

571 DO 

3 months 

367.10 

578.10 

8 months 

372.55 

585-50 

1 year 

38006 

603-40 

Gold Coins 

$ price 

£ eqitor. 

Krugerrand 

40T-403 

254-250 

Maple Leaf 

407.05-409.60 

- 

Now Sovereign 

92-05 

58-61 


Precious Metals continued 

■ OOLDCOMBC 1100 Troy tgjVUoyozj 



Sea 

price 

ttof* 

CfMV 

HU 

Open 

tali tot 

VBL 

*» 

390.1 

+6.7 

. 

• 330 

. 

Oct 

3954 

+06 

3SU 

3900 0240 

m 

Hot 

3900 

+06 

. 

- 

- 

Dec 

3860 

+06 

4007 

393.1 100769 22504 

Mr 

4010 

+07 

40U 

4005 17J255 

359 

Apr 

total 

4065 

+07 

407.1 

4006 7^18 24 

119317 20726 


■ PLATINUM NYMEX(50 Troy cc; S/troy ozj 


Oct 

4220 

*06 4229 4205 

0569 

0656 

Jra 

426.7 

+09 4279 4259 

11.438 

2952 

K* 

*300 

+08 431.0 <23.0 

2.«72 

50 

jra 

4335 

+06 

466 

- 

Oct 

4302 

♦09 

328 

- 

Tote 



Z3J73 

SSBL 

■ PALLADIL8H NYMEX (100 Trbyct SAroy at) 

Sep 

15500 

+055 

38 

6 

Dec 

15750 

♦055 15790 15050 

5.437 

512 

MS 

15080 

+075 15075 157.7S 

1905 

28 

Jrt 

159LSD 

+075 

(52 

- 

Total 



BJE» 

548 


■ SILVER CCMEX C10Q Truy mu; CartaAray oz.) 


$w 

5608 

+04 

5739 

5679 

407 

19 

Oct 

9609 

+08 


_ 

6 

- 

HW 

571 £ 

+02 

- 

- 

91,722 13,106 

One 

5749 

405 

5700 

5719 

9,770 

M 

JBO 

5705 

+05 

- 

- 

4*443 

421 

■tor 

5824 

+08 

5805 

5800 

3,701 

119 

Twra 




110671 

10778 


ENERGY 

■ CWUOE OB- WMR ggjjOO US gala. 8<banri) 


Law Dot* Opm 

pries change Mp Ua U H 

Ho* 17.80 -oar 17.73 17.56 93,171 43311 

Doc 17.72 -am 173S 17.70 61,296 27,695 

3m 1733 -007 1735 1730 41 31 5 11398 

Feb 1737 -047 1735 173B 21387 4339 

tor 1739 -338 1736 1739 19393 1357 

Apr 1732 -009 1731 1731 12.449 3.444 

TW 360080 109395 

■ CRUDE OH. PE (STbarrefl 


UW OpM 

prim donga fltft Iso fed W 


Hov 

1044 

-094 

1053 

1040 00316 20346 

Dec 

1054 

. 

1062 

1690 37933 1270B 

toe 

1099 

-006 

1698 

1067 10619 

5912 

Feb 

1060 

-005 

1695 

1080 0642 

1,720 

■tor 

1059 

-00a 

1898 

1890 6962 

708 

Apr 

1059 

-005 

1066 

1059 1943 

1,400 

tom 




141,173 48978 

■ HEATJVG 00. WNB (42900 US gftL; dUS grita) 


Uteri 



Opce 



rafce 

■ftrege 

Mgb 

lew tat 

M 

ora 

4035 

■0.19 

4070 

4025 20594 15909 

Mot 

*050 

-013 

*080 

4035 28,958 

7,674 

Dec 

5a 70 

-018 

5190 

5090409694 

0082 

toe 

5190 

•018 

5195 

5195 27994 

1977 

Feb 

5030 

+012 

52J0 

5220 15,471 

1J671 

Her 

5190 

+002 

52.10 

5190 11.774 

1249 

Total 




177,147 30504 

■ GAS GO- Pt SAarew 




SeH 

#81% 


Open 



Price 

eftenge 


law tat 

vra 

Od 

151-25 

+190 

152.75 15075 32.578 

69M 

Ik* 

15495 

+195 

1095 

15390 10113 

2904 

Dec 

150Z 

+195 

15795 

1S0OO 20,771 

1954 

4M 

15025 

+190 

1S990 16790 10474 

I960 

u 

15990 

+195 

I502S 

15075 0191 

107 

Her 

15990 

+190 15990 

15990 5918 

10 

1MH 




100592 13991 

■ NATURAL OASimCX (10900 maBta; itanSbL) 


letael 

Dey% 


Open 



price 

cketp 

Hfo 

Lew fol 

vra 

Oct 

1910 

-0935 

. 

1990 13983 20277 

Nov 

1.700 

0043 

1.750 

1995 31914 

10153 

Dec 

2900 

0942 

2942 

I960 30952 

0422 

ton 

2975 

niwfi 

2.107 

2970 15977 

2947 

Rt 

2905 

0022 

2030 

2900 14922 

1250 

Mb 

I960 

0919 

1979 

1960 10570 

754 

Tetri 




190462 52954 


■ UNLEADED GASOLINE 
HWE( 142900 IB grie^cJUB gat) 



latari 

Ber* 



Oprt 



Price 

eftew 

Hgh 

lew 

tat 

vra 

ora 

4595 

-DAB 

4015 

4525 

18966 

6963 

Hev 

4520 

-028 

4035 

4065 20940 

5970 

Dae 

52.95 

-020 

53.10 

6275 

>1935 

3218 

toe 

5295 

-02 

5260 

522D 

0429 

477 

Feb 

512 

-025 

5140 

5325 

1608 

458 

Mar 

Trial 

5490 

-095 

5490 

5*25 

1250 163 

60178 ISAM 


GRAINS AND OIL SEEDS SOFTS 

■ WHEAT ICE Cpartawel ■ COCOA (JCEpftonrtri 



S8K 

»■»% 



Opee 



price 


wpri 

urn 

let 

M 

tev 

1062 

•025 10690 

1007D 

39 

* 

toe 

10695 

•010 

10990 

1Q990 

itpn 

110 

Hr 

109.15 

■ -0.10 

11190 

11190 

1984 

5 

May 

171.10 

■010 mio 17290 

1 23i 

30 

Jri 

1U10 

- 

- 

- 

>958 

12 

top 

11495 

-0.T5 

- 

• 

237 

- 

Trial 





7900 

Ml 

■ WHEAT C8T PJJOObu mrb cents«ato tsuM) 

Dec 

39SK 

aW 

397m 

332/6 

. 

to 

He 

40*12 

+» 

404/4 

40M 40114 

0601 

tt*r 

381/6 

+M 

332/4 

3 em 19901 

1925 

Ja( 

36312 

+1/4 

36316 

359/4 

297! 

2t« 

Sep 

38SO 

+au 

365 a 

363/4 

4,454 

1,130 

Dec 

3TT/4 

+014 

375IQ 

371/4 

58 

6 

Total 





74936 10463 


■ CBT {5.000 bu info; centeBgb tXBhtaj 



Sett 

Otft 


Bpea 

W 


■In dap 

to 

Law tat 

Sep 

m 

♦27 

951 

960 5 

3 

Dec 

1003 

+18 

1005 

978 27973 4963 

for 

1036 

+16 

1037 

1010 34965 2.938 

■ft 

1047 

♦to 

7047 

1QZ3 12,489 

830 

Jri 

1068 

426 

1059 

1038 0726 

116 

Sep 

1091 

+3S 

1(00 

1050 9264 

81 

Tetri 




1*M» 8910 

■ COCOA CSCE (10 format: VtaniM* 


Dee 

1381 

+44 

1388 

1326 40939 0717 

Her 

1436 

+40 

1435 

1378 15969 

690 

tor 

US 

+40 

1461 

1410 42B 

118 

Jri 

1496 

+45 

1496 

1448 2942 

54 

s*p 

1515 

+45 

1472 

1472 72S4 

S 

Dee 

1541 

+45 

7496 

MSB 4,873 

20 

total 




70304 493« 

■ COCOA PCCO) (SPfra/tonrM) 



Dec 

2179 

-OS 

217)75 

216/4 

. 

raw 

22M 

-0M 

22745 

226/4134,431 

14904 

May 

2340 

4W 

234/5 

2334 41911 

0441 

Jri 

2381* 

•on 

239/2 

23810 10S32 

802 

«*P 

2«OT 

-OH 

243S 

242 tt 17900 

1,125 

Dec 

24812 

■014 

248/6 

2(5/4 1.186 

2B 

w 

■ BAfiLEYLCE(£ par toitna) 

877934 18987 


Mn 

10025 

. 

103.75 

1(0.75 2 

_ 

ton 

10390 

+018 

10025 

10025 482 

B 

mtr 

10025 

+035 

- 

- 404 

8 

tor 

10&4O 

+0.15 

- 

- 100 

- 

Sep 

11090 

+4L1Q 


- 48 

- 

Tetri 




1934 

n 

■ SOYABEANS C8T (5900BU eric centa/BOB) tnrtft 

Hev 

554/0 

+1« 

555/8 

582/0 79.129 20313 

ton 

564/2 

+1/4 

SB5M 

5BOO 10278 

2.488 

Mar 

574/4 

+1/4 

575® 

572/4 11977 

1.811 

Mai 

581/4 

+1/0 

582/4 

579/4 5968 

■ 988 

Jri 

587/4 

+1/2 

588/4 

585/4 11975 

1932 

Peg 

S88/2 

+-U0 

5BM 

588/0 2ft 

117 

Tetri 




■ 131,091 3190* 

■ SOYABEAN OB. CBT (B0900taK carte/Ib) 

Oct 

2048 

+038 

2594 

3595 1899* 

3916 

Dec 

2497 

+028 

2599 

2458 37953 11995 

Jae 

2495 

+025 

2480 

2435 79*8 

1922 


2440 

+02S 

2456 

2412 0348 

2948 

toy 

2413 

+014 

2495 

23-33 5954 

1.727 

Jri 

2393 

+010 

2395 

23.75 3951 

B89 


Total 81380 22*10 


sap 22 


Prior 

Prev. day 

Wr — 


101239 

101191 

■ CCFFffi LCE pyttms) 


Sap 

*238 

+& 4280 

4200 IftB 39 

Hot 

4067 

+22 4083 

4050 10285 1980 

Jae 

4018 

+18 4040 

3936 14901 881 

lira 

3923 

+9 3950 

3B2Q 7911 232 

toy 

3873 

+12 3875 

38ra 2108 138 

Jri 

3840 

+» 3845 

3830 1,182 ft 

Tefal 



307S2 2471 

■ COFTCE *C* CSCE P79D0Ka; centMbtfl 

Dec 

229ft 

+2.10 23290 22690 23902 5920 

taw 

9»ns 

+295 235.40 23090 0S24 B33 

toy 

23X90 

+L60 23010 23195 3903 273 

Jri 

23430 

+190 23090 23190 1912 18 

sap 

23490 

+1.10 23390 23390 391 

Dec 

23025 

*196 

- 525 4 

Tetri 



37917 0818 

m coraa 0CO) (US centaVlscMxO 

SCP22 


Price 

Prwfc day 

CBB|Ltl«e» 

20082 

21091 

15 day map _ 

20195 


■ No7 PRariUH RAW SUGAR ICE fconts/be) 

ora 

1297 

MCft 

- 1716 

ton 

1192 

- 

- 

MV 

12ft 

. 

90 

Trial 



1986 


■ WHTCE SUGAR LCE($/tanna) 


■ SOYABEAN MEAL CBT (100 tong S/tan) 


Oct 

1601 

-07 

1869 

1647 13,116 

39« 

Dec 

1B0B 

•08 

1889 

1801 <2980 

5»1 

jm 

1679 

-1.0 

1685 

167.1 

10650 

1337 

He 

1708 

-0B 

1729 

1709 10,4+0 

802 

■for 

1711 

-04 

1743 

1739 

6.720 

934 

Jri 

1707 

■03 

1705 

175-5 

3983 

406 

Tstri 





873ft 

■ POTATOES LCE (E/toonej 




Hre 

1509 

. 

. 

. 

- 

- 

tor 

1059 

w 

. 

- 

- 

- 

to 

2159 

-19 

2179 

2105 

19ft 

9E 

toy 

2379 

-29 

- 

- 

- 

- 

Joe 

1079 

w 

• 

- 

- 

- 

Total 





190S 

as 

■ FRBGHT (BFFEX) LCE (SltVfodn potat) 


Sep 

1635 

+14 

1640 

1630 

238 

20 

ora 

1883 

+2B 

ieas 

1670 

748 

zs 

Hov 

1680 

+19 

1692 

1680 

IS 

28 

ton 

1KB 

. 

1615 

1610 

867 

14 

Apr 

1610 

*3 

1820 

1610 

<00 

10 

M 

1460 

-5 

- 

- 

107 


Tefal 

Ctoee 




MS 

187 

BR 

1800 

134 






Dec 

32020 

-010 32990 32890 

3932 

125 

■Mr 

33090 

+010 33190 33000 

7920 

232 

May 

33030 

-020 33(90 33090 

' 1,153 

85 

tog 

33000 

- ren mn 

1951 

70 

ora 

31390 

+030 314.10 31390 

392 

99 

Dec 

Tend 

31070 

♦030 

4 

14982 

861 


■ SUGAR IV cace (1129009*; ceras/lbs) 


ora 

1293 

-Oft 

12ft 

1248 10673 4,187 

■ar 

1248 

-003 

1292 

12-0 98.770 8,060 

toy 

12.47 

-002 

1290 

1243 1H.090 2138 

Jri 

1233 

-093 

1298 

1230 10^01 1.713 

Set 

1215 

+002 

12.1 5 

1208 6978 1988 

Kar 

11.74 

-091 

- 

- 1,032 6 

Total 




161,75217982 

■ COTTON NYCE (SOflOOfos; cemta/tba) 

Oct 

6028 

-019 

8890 

6022 1,460 472 

Ok 

6891 

-0.13 

6010 

6062 27,702 5,73* 

«♦» 

7042 

-018 

7070 

7035 10,450 1985 

tor 

71 JB 

+091 

7290 

T19Q S982 082 

Jri 

TUT 

-013 

7390 

7280 3932 482 

Oct 

68-75 

+015 

8050 

6045 449 18 

Total 




S1(40B 0928 

■ ORANGE JUCENycE(I5jOOOfoa;crtts«a) 

Her 

9495 

•0L15 

06.10 

9360 11964 3924 

Jm 

8890 

+025 

8050 

97.10 4935 1.143 


10190 

+005 10190 10070 4.435 835 

Key 

10590 

-040 

10590 

10470 951 237 

Jri 

107.70 

-025 

10775 10095 538 SO 

Sap 

11020 

-020 

- 

. 20 

Tetal 




229M 5983 


Hack popper prices Increased very sharply fei 
the pot fortnight, reports Mon Produeten. The 
In prov l n fl demand for black pappsr from con- 
senting markets, which had bean Inactive for 
many months, pushed prices i*> In si origins. 
Suppliers there ham almost afi withdrawn and 
ap p arently prefer to watch further develop- 
ments. Black pepper f-S-q. traded at about 
U3S2300 a tome on the European spot mar- 
kot and In the US aita ana at $130 a 
pound. Wide* prices only dknbed modarataly. 
Spot whits ana at $3300 a tome ml Septem- 
bar/Oetobra ahfo w tn t at $3,150. ctf. in (In Usd 
quantities. Or*y aporraSc biq/fog took place. 


VOLUME DATA 

Open in te res t md Vokane data shown for 
e m to au t a traded an COMBC, NVMEX, CBT, 
NYCE, CME. CSCE and IPE Crude OR am one 
day h aims 


INDICES 

■ H»nM R S iBaaw:iaiaoi^oq) 


Sep 23 Sep 22 month ago year ago 
21 »2 21253 2072.1 16043 

■ CUB FUtuwa (Base: 1867=100) 


Sap 22 Sap 21 aMhigB year apo- 
232.09 230.40 23a 77 21730 


meat and livestock 

■ UVECWTTlJECMEWaOOa&KPN* 8 ^, 


Vd 

&4S2 

3347 

1.764 

877 

tt 

56 


M M , V 

pries rings W* 

i bm 4550 7U.7M 71175 5SSM 
4.475 60730 68.175 SftB73 
67300 -0300 68275 67350 13.417 
89250 -0.175 89.475 69300 9368 
66300 -0150 68400 K1» *049 
IP DM 4.106 65360 65375 1356 
m 73301 *3.178 

UVEHOMCMEWOOOtecw*^. 

I 37375 *0223 37390 38375 9391 

C 37375 +0075 SRflOO 37300 12W 

I 38379 -aaso 39300 38350 4304 

r 39.150 -aQ2S 38400 39.100 2316 

B 44400 - 44350 44250 817 

g 4*150 - 43300 43.100 114 

u 20739 


ai7j 

2356 

752 

280 

87 

9 

S.T0B 


Ml 

38.700 -09SQ 39.76Q 3&4S0 

7965 

Hr 

36.700 -0475 33950 33500 

538 

•n 

30750 -0900 <0900 30680 

148 

Jri 

40700 -0160 41900 40600 

174 

tog 

Total 

33750 -0900 40900 30650 

38 

8983 


LONDON TRADED OPTIONS 

Strike price $ tome — Crifo — 


■ ALUMNUM 
(99,7%) LME 

Oct 

Jan 

Oct 

Jrt 


26 

7B 

17 

56 


14 

67 

31 

88 


7 

56 

48 

81 

■ COPPER 
(Grade A) LME 

Oct 

Jen 

Oct 

Jan 

2500 

68 

123 

11 

64 


37 

96 

28 

88 

2600 

16 

74 

57 

113 

■ COFFEE LCE 

Nov 

Jrt 

Nov 

•tan 

3800 

482 

550 

26 

141 


449 

526 

32 

158 

3700 

408 

40b 

41 

177 

• COCOA LCE 

Dec 

Mar 

Dec 

Mar 

975 

58 

107 

29 

48 

1000 — 

44 

83 

40 

57 

1050 

25 

69 

71 

83 

■ BRENT CRUDE IPE 

Nov 

Dec 

Nov 

Dec 

1600 

- 

94 

20 

37 

1880 

34 

68 

37 

80 

1700 

23 

52 

- 

90 


LONDON SPOT MARKETS 


■ CRUDE OIL FOB (per txarrei/Nov) 

+cr- 

Drift 

SlS.BO-5.05u 

+0935 

Brant Stand (dried) 

$1 0-33-6 .35 

+044 

Brent Blend (Nov) 

S1B-64-6.0BU 

+037 

W.T.L (1pm eft 

S1791-7.83U 

+041 

■ OH. PRODUCTS NWEpraTfot drfvwy Of (tarmej 

Premium Gascrine 

$173-178 

♦1 

On 06 

$152-1 S3 

+1 

Heavy Fuel Ol 

$74-75 


Naphtha 

$159-180 

+1 

Jri fuel 

$170-171 

+1 

/VMtam Aipra aamrreMr 



■ OTHER 



Gold (per troy o4+ 

$3900 

+29 

S»ver (per troy 

57Q9C 

+09 

PfoOrwn (per troy ol) 

$42190 

+2.75 

Pritodum (per troy cel) 

$15025 

+075 

Copper 0JS prod.) 

1289C 

+39 

Lead (US prod) 

3625 r 


Tta (Kuata Lumpur) 

ia47m 

+006 

Tin (New York) 

2499c 


Cattle (Ive we&UtfO 

1l7.Q3p 

-097“ 

Swap (to vrat0hW4e 

8820p 

♦1.41" 

Pigs to” MftQMP 

74.7Sp 

+2.ir 

Lon. day sugar (raw) 

$311.1 

-3.4 

Lon. day augra (wri) 

$3389 

-39 

Tate A Lyle export 

£3109 


Bariey (Eng. feecfl 

Itaq. 


Metre (US No3 Yetow) 

$1369 


Wheat (US Dark North) 

£1809 


Rubber (Odjta 

9a00p 

+025 

Rubber (Not)* 

89.00p 

+190 

Rubber KL RSS Nol Oct 

33290m 

+29 

Coconut Of (FN0§ 

seszsz 

+5.0 

Prim Ot (MafayjS 

$82691 

+29 

Oopra(P»i^§ 

$411 

+7 

Soyabeans (US) 

C1589Z 


Cotton Orifook *A’ Max 

7490c 

+010 

WooHope (64s Supra) 

47Sp 

-10 


C pa tonns uSa otoawtao MaawL p pmoafle c cetoto 
t traftfm. is Mtoeyttan cansflp. u Mon. t tka. z E-iprOd. 
«r Sep . f London PhysfcaL $ OF Wo m w O s i l 4 Mon 
mrtwt dose. ♦ 3hmp 0>re wripa yrio—L * dap on 
veto O mean aa lor previoM day. 


# 


c 


r 




WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 


us interest rates 


■ LONG GILT FUTURES OPTIONS flUFFg ESOJDO S4ths Qt 10094 


US 



Coupon 

Red 

Dele 

Price 

Deyta 

change 

YWd 

(Meek 

ago 

Month 

ago 

Auetrrita 

9.000 

0MH 

029200 

-0.360 

10.16 

996 

998 

Salgwm 

7250 

04/04 

01.4300 

+0280 

899 

067 

897 

Canada' 

6900 

06AM 

84.350(1 

+0900 

095 

088 

068 

Denmark 

7.000 

12/04 

8825Q0 

+0960 

9.12 

9.1T 

695 

Franca BTAN 

0000 

05/38 

1019000 

+0.130 

7.48 

7.55 

722 

OAT 

9500 

04104 

83.0800 

+0380 

8.10 

018 

7.78 

Germraty Bwtd 

6.750 

07AM 

049300 

+0290 

7.59 

7.69 

7.16 

Itriy 

8900 

08/04 

822000 

+0720 

1197t 

1299 

1196 

Japan No 119 

4.800 

00190 

1039100 

+0.080 

aas 

3.91 

490 


4.100 

12/D3 

979260 

-0.060 

491 

498 

4.68 

Nrihertwnta 

5.750 

01/0* 

87.6200 

-0960 

7.6S 

792 

724 

Span 

8.000 

0594 

81.7500 

+0900 

11.16 

11.40 

1097 

IWG4» 

0000 

08/M 

89-11 

+V32 

072 

071 

032 


6.750 

11AW 

85-28 

+8/33 

068 

097 

893 


9 000 

10/08 

101-05 

+7/32 

085 

894 

047 

US Treasury * 

7250 

08AM 

97-27 

-2/32 

796 

7.52 

721 


7900 

11/34 

98-17 

-6/32 

7.80 

7.79 

7-46 

ECU (French Gortl 

6000 

(MAM 

82.8200 

+0.620 

071 

074 

033 


umaon crang. Itow tarti md-rov VMkte Local iMhot Mrkfard. 

r Crass tndiKtnp wemoMtog tan ra m par cvra psyataia by rmnMenM 

Pms. US, UK n XMa. a*en In dscimjl Some: UUS faern e flo nW 

ECONOMIC DIARY - FORWARD EVENTS 


TODAY: Boris Yeltsin, Russian 
president, and Andrei Kozyrev, 
foreign minister, visit London 
for talks with John Major. UK 
prime minister, at Chequers. 
TOMORROW: Albert Reynolds, 
Irish prime minister, visits 
Wellington. New Zealand. State 
election in Bavaria. National 
referendum on Swiss govern- 
ment plan to introduce law 
against racial discrimination. 
MONDAY: President Clinton 
and Boris Yeltsin scheduled to 
address UN General Assembly. 
Commonwealth finance minis- 
tors conference in Valletta. 
Malta. European Parliament 
plenary session in Strasbourg. 
US and Japan hold automotive 
sector talks in Washington. UK 
capital expenditure (second 
quarter, revised). UK stocks 
and work in progress (second 
quarter, revised). 

TUESDAY: Boris Yeltsin in 
Washington. Demonstration in 
Hyderabad. India, against ani- 
mal slaughter and beef exports. 
WEDNESDAY: Chuan Leekpai, 
Thai prime minister, in Canada 
for talks on trade expansion, 
technology transfer and Asia- 
Pacific co-operation. Interna- 
tional general assembly of 


Interpol police in Rome. Euro- 
pean Union industry ministers 
meet in Brussels. IMF world 
economic outlook news confer- 
ence in Madrid ahead of IMF/ 
World Bank annual meeting. 
Leading British banking 
groups' mortgage lending 
(August). Prices of agricultural 
land (Welsh Office, second 
quarter). 

THURSDAY: Mato defence min- 
isters meet in Seville. US GDP 
figures (August). Amsterdam's 
bourse closes ahead of the 
introduction of a new trading 
system on Friday. UK New 
Earnings Survey 1994 Part A. 
UK energy trends for July. 
New UK vehicle registrations 
(July). 

FRIDAY: End of 60-day period 
of consultations between Japan 
and the US when the latter 
may enforce trade sanctions if 
there is no accord. Carlos 
Menem. Argentine president, 
to address World Affair s Coun- 
cil in Los Angeles. General 
election In Slovakia. Profitabil- 
ity of UK companies (1993). UK 
economic trends (September). 
UK monthly digest of statistics 
(September). GB cinema exhib- 
itors (second quarter). 


'[ DO YOU WAISTT TO know a secret? 

j The UTS Gann Sannar wfl Show yew how Iho markets REALLY wok. The emaztag 
; rasaig Btfrdgueaol Rio lec«x(3iyWJ3 Gann can kwease your profts and cartwijw 
j waes. Hew? thaft ttw seme Ring am <740000 to boon your FUSE place. 


Currency or Bond Fax - FREE 2 week trial 
also daily gold and silver faxes ■ Anne v/hitb 


-HwTfCnatt Aa»|,- j i- 1 u.e 

Sfife; Lc.'.ilon VV T B? 7hD. US - 
rj\e Igr over J3 ycj-s 


S?i-7Si 7 '.7; 
Fcx 07 I.iJQ 


v«* 


limcMira 


TMJMS — 

7M.fMk at Mewrfon- 


I 


One wntt — 
Too luurvti _ 
nmamBL. 
&■»* — 
Ooairar _ 


ItMMf BBto snrt Bond TMb 


4S3 r«J yiar_ 
4.76 Imamu 
491 Rwyear_ 
141 10-ysa 
SM 30riWf 


a«7 

6.79 

7. 19 
7J* 

7J0 


BOND FUTURES Al«> OPTIONS 


France 

■ WOWOHAL FRENCH BQ9C fUTWES (MATIQ 



Open 

Sea price 

Change 

rtgh 

Low 

EsL roL 

Open InL 

Dec 

110.44 

iia78 

+068 

111.12 

11098 

181975 

133/408 

Mar 

109.78 

110.04 

+098 

110.08 

109.78 

54 

7.161 

Jun 

109-08 

10034 

+066 

109.08 

109.08 

2 

350 


■ LONG TERM FRENCH BONO OPTIONS [MATIf) 


SWce 

Price 

Oct 

CALLS 

Dec 

Mar 

Oct 

PUTS — 

Dec 

Mar 

110 

034 

1.98 

- 

020 

1.19 

2.55 

ill 

0.37 

1-40 

1.72 

0.63 

1.81 

- 

11a 

0.09 

0.93 

. 

128 

2.14 

- 

113 

0.03 

057 

- 

226 

2-77 

- 

114 

091 

093 

073 

- 

053 

• 

EsL <mL Wd. Cri« 13J33 

PuP«jQ3H 

Preeaia daYm open lot. 

CMV 23002 Put* 332,326 


Germany 

■ MOTIONAL QBRMAN BUNO FUTURES (UFfET QM250^00 IQOtha oMOOS 



Open 

Sett price 

Change 

High 

Law 

Era. vat 

Open InL 

Dec 

00.71 

8897 

+092 

8825 

8063 

143148 

142475 

Mar 

8025 

8838 

+041 

8825 

8025 

22 

1297 


■ BttNO 'FUTURES OPTIOWS (UFFE1 0*4250.000 ponM <X 1QO% 


Sriha 

Price 

Oct 

Nov 

CALLS — 
Dee 

Mar 

Oct 

Nov 

PUTS — — 
Dec 

Mra 

8860 

047 

1.17 

1.48 

193 

0 

070 

191 

1.77 

8900 

0 

096 

1.19 

198 

0.03 

092 

122 

2.02 

8800 

0 

005 

0.94 

1.15 

093 

1.18 

1.47 

229 

Esl wL vm. cwn zvase Ra roam. p»wa atr'i span w. Com shs97 Pus ziasrc 


Italy 

n NOTIONAL ITALIAN GOVT. BOND fgTP) FUTURES 

(UFF5* Lka aittn IQOtte <rf 100 ^ 



Optal Sett price 

Change 

Hflh 

Law 

EoL vet 

Open InL 

Dec 

0096 9005 

+068 

9037 

9895 

41030 

83710 

Mar 

3045 

+0.89 



0 

880 

■ ITALIAN GOVT. BONO (BTF) FUTURES OPTIONS BJFFQ UraZOOm lOCBha of 100M 

SWri 


r » - 



, Qf *wn ^ . 


Dee 

u — — 

Mra 


Dec 

’ rUTo — 

Mar 

Price 

9900 

2.10 

000 


2.06 


39S 

9960 

193 

078 


228 


083 

10000 

199 

297 


294 


4.12 


E9L ml tout. Care it® «*> wo. <w» opsn ml. Core mno Pub iGasa 


Spain 

■ NOTIONAL SPATESH BONO RTTtlffiS (MEFfi 

Open Sort price Change Higfi Law EM. vd. Open im. 
Dec SSEO aaoi rC.45 8658 B5.B0 54383 70354 


UK 

■ NOTTOWAL UK GH.T FUTURES (LfFg* ESO.OOO 3gnaa pi 10086 


Sep 

Open 

Senpnce 

100-01 

Change 

+0-11 

Hgh 

Low 

Esl vo l 

0 

Open irtL 

1840S 

Dec 

Mar 

9001 

89-08 

98+20 

+0-10 

♦ 0-10 

89-20 

98-20 

53277 

0 

92603 

0 


seta — 

Price 

99 

100 
101 

&t voL totiS. C#a 


Deo 

2-01 

1-33 

1-06 


CALLS 


PUTS 


Mar 

2-47 

2-19 

1-6B 


Dec 

1- 49 

2- 17 
2-64 


Mir 

3- 07 
343 

4- 18 


■ US TREASURY BOND FUTURCS (CgT) 8100300 32ncfc> <ri 10096 


<32s pub wee. P weaia crex <*> w- ox» *asia nm szeoa 


□eo 

Mar 

Jwi 


Open 

69-13 

96-22 


99-14 

96-24 

9608 


Change 

♦O-Ol 

+ 0-01 

+007 


Hgh 

99-23 

9601 


Low 

99-12 

9622 


Eat. wdL Open in t 
320,722 397,114 
1.157 15387 

29 843 


Ecu 

■ ECU BOND FUnffl£8 (MATIF) 


Dec 


Open 

7928 


Settprioe Change 
79L56 +084 


High 

7930 


Low 

7930 


EsL vol Open inL 
907 7JOB 


■ NOTIONAL LONG TERM JAPANESE GOVT. BOM> FUTURES 

(UFFQ YIOOw IQOtfW Q i 100% 

Open Close Chenge rtgh Low EeL vof Open InL 
Dee 10642 10833 10640 549 0 

* LPFt oontBOB tradod on APT. AS Cpei IMmtt Sgo. m tor firiu dar. 


FT -ACTUARIES FIXED I N TE R E S T INDICES 


UK Gto Price Mom 


ftl 

Sep 23 


Oa/» 


Sep 22 


Aoenrel 


xd sdj 
»Wd 


Ftl 

Sep 29 


trey's 


Her 
Sep 22 


Acoued 


x6 ad] 
ytefo 


1 Upw5ywnt24) 

2 5-15 yews (71) 

3 Over IS; 

4 trade 

5 AS stocks 


110.28 

+018 

11997 

197 

013 

8 Up is SyerasGO 

7 OvraS yeas (11) 

8 At stocks (13) 

18404 

♦010 

184.16 

-01 

SOT 

• S' 

13088 

+033 

138.41 

1.75 

998 

170-91 

+024 

17030 

071 

395 

- .. ,■ 

15225 

1028 

16193 

1.72 

091 

17193 

+022 

171 JK 

093 

494 


17473 

+029 

17423 

323 

893 








134JB 

+027 

134A1 

198 

992 

0 DebeanS loan (7Q 

125.78 

+023 

12050 

291 

798 



Welds 


Low coupon yield - 

Sep 23 Sep 22 Wage Mgh 


Low 


Sep 23 Sep 22 Yrago 




Low 


Sep 23 Sap 22 




Low 


5 yre 
15 yre 
20 yre 
kretLt 


083 

088 

827 895 (20'S 

057 MW 
620(20/1 

087 

090 

056 

BJ01 (20 

9 592{1ft 

1 9.02 

006 

074 

076 

7.16 899 ptVS 

089 

083 

721 

OQ5 pa 

T> 039 (207 

1 an 

014 

087 

072 

069 

073 

728 891 BOB 
7/43 088 pOVS 

041 eon 
622(2471 

0% 

093 

797 

a 05 par 

9) 0*2 pon 

898 

899 


tnffatlon rate 5% 


Wtobcn rata 10 * 


Up to 5 yre 4.06 
over 5 yre 693 

Dabs Stems — — - 


4 JX 
33S 


256 4.10 

171 099 

5 years • 


2.18 (4/1) 

2J8CSVT) 


290 

3.74 


290 

3.7S 


1.74 2 ST (Trt 
103 679 {21/ 

-- 15) 


1.19 

2.70 


M 


990 993 798 1097C20ffiQ 7.19 (10/1) 993 996 622 998 (ZtV3) 7*39 (2WI) 

Average gross re d emption yields ere shown above. Coupon Bonds: Low. 094-74(14; Median: 816-1 0%%; 1194 and ■ 


9.78 9.79 896 690 {20/6) 

er. t F» yfe*L ytd Year to data. 


GILT EDGED ACTIVITY INDICES 

Sep 22 Sap 21 Sap 20 


19 


FT FIXED INTEREST INDICES 

Sep 23 8ep 22 3ep 21 Sep 20 Sep 19 Yrago H gh* Low- 

Govt Sees. (UK} 9093 60.06 69.71 6S94 9022 10195 107.04 8054 GSR Edged bargains 122-3 019 1379 1002 

Flsad Inbweat 10799 10697 10690 108.73 10896 12293 13397 10690 evengs 1129 1049 1029 97.5 

- tor IBM. Oovwrment aacuttw ngh tones camphto o n : 1Z7A0 (9n/3EL low 40.18 (Vt/75). Rsod tore eat high tones com p todog 18397 (71/1/94 > low 5093 (3/I/7Q . Bstoi lock Oovonmera 
38 red Ftad toreato 1831 SB kM) Mesa rabasad 1074. 


7.48 (10/1) 


Sep 18 


108.7 
94.4 
ISrttV 


UK GILTS PRICES 


Red Mre£+or- 


_10M_ 

tew 


- 1BW_ 

H Red PrireE *tr- Htfi lew 


Jj) gWeeC i-oi- ngb Law 


rearer grew op re me Dreed 

TnaapetoM# US 

Ifpc 1095 1178 

Eton 3pc SSJ 1 390-85 M5 

KHepciaas UB 

Trial 124p: 1985ft (201 

14KI9H- 1295 

isfoE mm- <27z 

Etofl 13J,pc IBSett 12-25 

Qnmataa 10pc 1898 — 864 

TnretQ?.79tiaB7fr_ 701 
Trees 13VJK 1937?* — 1200 

toWaj*H97 1082 

TnntS\pc19J7# 9JST 

Brt1S(*193l 1281 

Mac 1998 MB 

TreB7\pe 1998ft 738 

Tltei Ui|K 199548ft— 718 

14ft 1996-1 1208 

Tires 15%*: -attt 12W 

Udi 12ft 1996 1094 

Trere 9%K (899ft 928 


mere TVzge 1988 

lure foe ifles ft 
Cosweian lOltft 1889- 
narena Raw 1999 — 
ynnaft 

Tm (ISC 2000 


10 ft 2001 . 
7* 2001ft- 


7ft 2001 A 

Wipe 2002 

feeamft — 

I0pe2003 — 



Here 11/gft 2001-4 

J03H 10® frnmtVac 1B90-4_ 
<24 J « CBBiwabn9 , ift2DIH— 

TraM6Lft2B*# 

^ «Bw«*tos2003 

IIS IS !*-**««-- 

t»a in& 


71«ft2008ftL. 


1^ Tfoal1%ft200J-7 — 

100H aos 

1218J noi I3htc 2004-8 

114i ID* 1 ? Tire * «bc »»ft 

110/. 100A 

+5 131G TIGS 


103! U7 11® 
AX 1J9 71 ** 

0t9 oainsa 
798 087 & 
916 6K183SH 

1048 037 1195 
8.4* BJB SIS 
056 &SS 93%H 
(030 927 1!4£ 
IB 067 97d 

1068 027128ift 

aw treim&io 



1081 

UB 112 %* 

+% 

18b', 

091 

898 

1 « 

+% 

1214 

672 

072 

«a 

+A 

I«Ji 

in 

891 

>ft& 

♦4 

l»B 

— 

— 

90S 


1054 

MS 

097 

1 CBIS 


1164 

1197 

8 ft 

I17H 

♦% 

136Q 

990 

007 

104U 

•% 

T 2 SJ, 

7.79 

095 

m 

+% 

1064 

7.79 

MB 

8812 

+% 

101 * 

041 

010 

13M 

+% 

123* 

848 

8 S 

WA 

t% 

11^1 

945 

004 

1053 

+% 

1 »A 


OfarHHaoTrera 

(40A 1234 TW*SK2009 

iZJj 1104 Tore Of /4pc 2010 — 

us* «na ccra foe Ln 2 on ft — 

Tim «c 3012ft 

HaasSisft 200 W 2 ft- 

Ttaaefoe 2013ft 

7\ft2D13-1Sft 

rimUipe20i7ft — - 


W 

10*11 

as 

«th 

11® 


Qaae(s 4 K- 


s&i ireruoiSJjftft- 
^ CmO^pe-Sin.. 


9Z% Car*to2 i ip:- 

i044{ Ttea^pe— 


+>< i2® i®e 
♦la 884 604> 
+a i2Sd Mia 

+4 1051, 848 

+J+ 12S*a VBH 

*& 143 & 118% 

+4. 112B 80% 

+4« lii% Big 
♦% 138* 1T2V 
+A U«i 9® 

+i 151* 124£ 
+4* «4ft 9M 


Maa-UM 

Spew 


m 

487JR 


— 0356) 

IhOtW (7BJ) 

3*rfC«— (70Q 

4%c1Mft — (I3U1 

foe VO (645) 

ihfcTB „(7$4 

2*SC11 (746) 

2%KT3 (B8J5 

2hK *To aifl 

Pm’tB (BUD 


2M 

zao 

245 

366 

3JSB 

3A5 

369 

271 

174 

ITS 

281 

180 

284 


421 19® 
3-73 106,‘ijd 
IBOW^jd 
Ui taw* 
1881073*4 

280 19P. 

191 1S0H 

281 155V 

282 128 
295 1353 
285130*41 

29* IS 
298 11 


+A 203% 1S7E 
+£ USA 108* 
*’* 17BV 1B3V 
+V I73S 1594 
+V 118% 107% 
+4 184JJ 168* 
+4 I6U 14«>t 
+* 175% 154% 
*& 148% 128% 
+f. 1ST* 13*% 
*h 15® 1»% 
+i 129* 11 
♦A 128U 10 


868 

893 

B**ri 

+11 

>194 

9JS 

7 60 

068 

7M 

*& 

88* 

770 

a 64 

&fo 

wrfi 

+* 

1280 

100Q 

893 

077 

1010 

+4 

127% 

100% 

7ft 

8ft 


+M 

*3% 

71% 

HSB 

073 

n%ra 

+A 

117S 

02 

052 

871 

31 

+tt 

114% 

»* 

072 

070 

100% 

+* 

>28% 

9% 

039 

894 

>270 

+* 

159% 

i»4 


2%KTS4ft (B7.n 

*f* 128ft 105% 

rare?£&L?3?& EfSJS and "«• bwn mated to 

,9B7 - Cowwi factor 

3-9+s, rpi hr Jareray ISBC I4ij and lor Augret 1994: ldd.7. 

Other Fixed Interest 




.-YW4_ 

k_W Meat ♦«■- 


— 1984 — 
ffofi lew 


MlcanDw1l%30IO 

AreoOav IO%pe2009__ 

BT*amjCe 20!2 

WndCroavocia . 

fosCta 199ft 

l3ftS7-3. 


0ft 

- «4 

*& 

55% 

066 

- 404 



s m 

018 

-56%ri 

+ft 

71 

878 

- 3*%ri 



4*% 

073 

- N 


36% 

8ft 

- 2 eh* 

♦4 

37% 


!4itD(taebK15K201l- 

U«dsi3%ft8m. 

Uiapoal 3%ft tocd.^_ 

ics x»c -a ah. - , 

Uancte re 1)%aczo07. 

MsLtffr.apc'Gr 

lfakk*ifta3VftZCOi. 
4%ftl3flE4 

lanreOMeiisVftan 


972 031 
IS 930 
Mr 058 
90* 

003 

1229 

1297 mio 
1027 
059 
038 

1013 930 

4.M 030 

- 452 

- 450 
1213 


1(4% 

IS? 

M 

«W, 

106 

>38* 

138% 

36% 

32 

113% 

07% 

131% 

>26% 

138 


• Top' dock, ft Tta-4*a la roMrenrere on re pto. total e /weflon bam «d Be AIM. Oratas "Mpte re drere h ponds. 


_ Id* 114* 

— >36% 1WA 

>42 116 

♦■% 110% 83% 

— 103% 991. 

115% 106 

— iwu 137B 

— 149% 125% 
44% X* 

— 40% 20V 

— >38% 112 

78 60% 

■ — 1»V IS9V 

— 145V >23% 
159% 134% 


■5*0 


V 


8>r« 


V 










FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


CURRENCIES AND MONEY 


MONEY MARKET FUNDS. 


markets report 




- 


- - Ffl.'Sto 1 i?.-— 


Dollar lingers 


The dollar trickled down to the 
low end of its narrow trading 
range against both the yen and 
the D-Mark yesterday as the 
markets were transfixed by 
upcoming events, writes 
Motoko Rich, 

Divided market sentiment 
about whether the US Federal 
reserve wOl raise interest rates 
next week left dealers largely 
on the sidelines in a quiet day 
of trading. 

Against the D-Mark, the dol- 
lar closed in London at 
DM1.5443, down from 
DM1.5488. Against the yen, it 
finished at Y97.7Q50. down 
from Y98.0750. 

The D-Mark was sluggish on 
the European crosses. It was 
moved only slightly by cost of 
living figures in two German 
states which suggested 
national statistics may subdue 
inflation worries. 

Sterling was helped by better 
than expected national 
accounts. Against the dollar, 
the pound finished in London 


at $1.5766 up from $1.5762. 
Against the D-Mark, It closed 
in London at DM2.438, down 
from DM2.441L 

■ The markets hovered as 
speculation about the possibil- 
ity of a rate hike at next 
week's meeting of the Federal 
Open Market Committee, the 
policy-making arm of the Fed, 
prevented significant move- 
ment on the dollar. 

Trade talks between the US 


Dollar 

DM per $ 
1.S9 . - 

1.55 -fV 


YenperS - ; / 

-r . W * T 


Sterling 

$pcr£ 

1.99 -r-^~ 


— . 99 • 


i-5s ^ 



■ w- 


Aog ■ laps Sap 

Source FTCfcspNt* 


■».. : "97 ' V* 
3 • 25. 



DMperEV 

-- " 2.45 — 


~r 


French franc 

-FFrperOM 

3A15 


M CM kcor 


Z420 "' I T~ 


. 2M >-\ W 


S-. 259 “ 


3.425 I— It- 


~ 3.430 

23 20 


*00 " 4894 _ , _ Sap 


Sap . Aug 1904 Sap 


■ Pound «■ Mm York 

top 23 

1 — 

— na* tore 

£*pot 

15821 

15755 

1 mfli 

13B17 

15751 

3 m® 

15800 

15734 

Iff 

15847 

15581 


and J apan have not yet yielded 
results and most analysts are 
expecting compromise in at 
least some areas, such as the 
auto sector. In the meantime, 
analysts believe the dollar will 
only flirt with its technical 
resistance level of Y97.50. 


■ The release of September 
cost of living indices in two 
German states led analysts to 
soften their inflation, fears, 
winch they said would help the 
D-Mark in the long term. In 
North Rhine-Westphalia the 
index roee by 1 per cent and in 
Baden-Wuerttemberg, it 
dropped by 1 per cent 
"The overall picture, if these 
figures are good indicators of 
the national figures, looks 
slightly better than expected,” 
said Mr Rob Hayward, econo- 
mist at Bank of America. 
“There is a ehanna that infla- 


tion could actually come down 
in Germany in September.'’ 

The D-Mark fell against the 
bra as tumours of a possible 
compromise between the gov- 
ernment of Prime Minister Sil- 
vio Berlusconi and Italy’s trade 
mitrai over a pension reform 

parfrag B circulated in the mar- 
ket. Against the lira, the 
D-Mark closed in London at 
L1009, down from L101L 

■ Sterling was boosted by a 
surprisingly good second quar- 
ter GDP figure and a lower 
than expected current account 


deficit. Analysts said these 
contributed to a continuing 
bullish outlook for the pound. 

Mr Tony Norfield, UK trea- 
sury economist at ABN-AMRO, 
said: “The question which 
remains, however, is, will ster- 
ling weaken if the interest rate 
rises that our currently priced 
into the futures markets don’t 
occur?” 

The December short sterling 
contract traded 38,000 lots to 
settle at 93.19, up from 93.18, 
and thus discounting a three 
month interest rate of &81 per 
cent 


■ In the UK money markets, 
the Rank of Kngiand forecast a 
shortage of £90 Qhl It provided 
assistance totalling £9l9m. 
Overnight rates traded 
between 3% and 5 per cent 


Money Market 
Trust Funds 


tom m CM talCr 

CAF Mom* Manama! Ga laa 

ttteNM>Aoaa.rDdnt*TM2JQ 0732770114 

-I JLSOlVMn 

EWMlOwIlriW ui -I inols+m 

awtoow amMai wn -I s.idIm» 

Ttetttf Borises OeposttAcEwto 

2 Wo 33*5, LMtonECfYSM 0T1-4H1B15 


DHL M. of Ho. at Ctorcfc ol Bvtentf* 

2 Fdra snm, LMden £Czr MO 071-6** IBIS 

Oetoto I *00 -I &0PI3-M 

Money Market 
Bank Accounts 

Bn, 

Am W CM MO 
ABed Trust Bank Ltd 

is m u«»a tcffl mi nn-Ea&ws 

RUMASUOI-t «to IM Italy 

TPaVMOTJxnO 6B5 1JB SBS TBtoy 

TOMUIL7X01*1 504 +.23 *84 Hof 

O M tog-ym n » U1 UI IS VMif 

MCA 02201 .) 400 ue w w 

►*0*2001-1 400 300 44)7 MB 

ttartalESSA U7 315 M7 VBarty 


Cau&s & Co 


Dao Heap Sank (tanringFLC hauler Me 
10 AngaCOM LtotolBSnlW 071-WG1B1I 

CSUMk ... I SSO 4 11 I 501 00 

MfiBI-OaM *» 337 431 Or 

EXUHMHUBD I 4JJD 300 US (* 

SaUMtoU I 300 22S I 3JB Or 

Djis s aha m Tet Ptc O miiii I iibii 500 Acc 

» SUem St MJH— ■ M340U 0SI-832B4M 

ci<u*o+eiwa sues mhm 

i rem tun sou boo TtoD 

IUO<MMimilll 12 1?*73 1 72+1 


HSUS* 


Martcet Accomt 


Ci-nea loo an uo to 

njBB-EMM 400 300 U8 to 

E10J100-C4JB8 420 U» 4JS to 

E25J*»-C99frW 300 375 30* to 

ri oo.ooo. 020 in uo or 

oOtotoiontoButo 
HaRtai Bldg Soc Asset Huera Cheque Ace 
TitayRttaTuatand 3W 4422 333333 


B 


ill 521 to 
38S 525 to 

320 I 42*1 to 

394 I 3251 to 


Sep 23 

E 

8 

Mousy 

170X62 - 1702B« 

107.730 - 107X00 

feaa 

275850 • 275980 

174X00 - 17900 

•tana 

0.4887 . 0.4701 

02960-02877 

Mud 

384180 - 3849.1 

230700 - 230900 

Mb 

3B3B5B- 38413) 

243080-243350 

UAE 

58004 - 55121 

38715- 35735 



POUND SPOT i-ORVVARD A.GAIMST HE PGUHD 


Sep 23 

ClOBang 

mkJ-point 

Europe 



Austria 

pen) 

17.1603 

Belgium 

(BFr) 

5X1885 

Denmark 

(DKr) 

9.5881 

Finland 

(FM) 

7.7487 

Franca 

(FFr) 

8-3366 

Germany 

(DM) 

2.4380 

Greece 

<Pfl 

378585 

Ireland 

(TQ 

1.0118 

Italy 

(D 

2461^7 

luvpmbcxrg 

XFi) 

5X188S 

Netherionds 

PI 

2.7322 

Norway 

(Wrt 

1X6818 

Portugal 

(Es» 

24X060 

Spain 

(Ptd) 

20X278 

Sweden 

(SKr) 

11.7338 

Switzerland 

(SFf) 

2-0263 

UK 


- 

Ecu 

- 

12777 

SDRf 

Americas 

“ 

0 330777 

Argentina 

(Peep) 

15784 

Braal 

m 

1.3506 

Canada 

(CS) 

XI 223 

Me dec (New Pmo) 

5.3638 

USA 

(SI 

15786 

Pocffic/Mkkfla Eimt/ Africa 

Australia 

(AS) 

X1377 

Hong Kong 

(HKS) 

122001 

Indfei 

(Ra) 

495235 

Japan 

(Y) 

154252 

Malaysia 

(MS) 

4.0358 

New Zsatond 

(NZJ) 

X6208 

Philippines 

(Pflao) 

405371 

Saudi Arabia 

(SR) 

5.9212 

Smg-Tpore 

<s» 

25374 

S Africa (Com.] 

1 (R) 

55829 

S Afnca (Fin.) 

(H) 

65124 

South Korea 

(Won) 

126728 

T#wan 

fTS) 

415357 

ThirtanJ 

(Pft 

895583 


Change BU/Utar Do/a Md Ona biuiOi Thro* months On* year Bar* of 
on day apread high tow Rate %PA Rats SPA ftede SPA Big. indsx 


-00196 538 
-00434 468 
-00174 837' 
-0.005 381 ■ 
-0.0094 313 
-a 0031 372 
+X887 387 
-0.D001 111 
-&24 009 
-00434 469 ■ 
-0.0044 310 ' 

-oaoei ees - 

+0.048 981 
+0.034 200 - 
+0.037 880. 
-00015 262 ■ 


668 17.1878 
280 802360 ! 
924 94015 

553 7.7840 

419 8X428 

388 2X485 

802 370823 i 
124 1.1035 

245 2472J31 ! 
260 5023801 
334 2.7376 

960 107134 ' 
198 240371 ! 
349 20X538 S 

018 115029 • 
274 2.0295 


17.1558 03 17.1441 04 
502035 -04 501485 03 408635 


DOLLAR SPOT FORWARD 'AGAINST THE DOLLAR 


CtasJng Change BkVWTer Day's mtd Ona month Tima ma rt h e Ona year J.P Morgi 
mto-pofcn on day spread high tow Rato MPA Hats MPA Rate 9tPA Intow 

(Sch) 108595 -00306 670 - 720 109020 108860 108805 00 105683 OO 10.7945 07 1042 
(Bft) 31.7900 -008 700 - 100 31.8730 31.7700 31.7872 -03 31-81 -03 31.945 -05 1053 


95928 

-0.8 

X6122 

-15 

X6548 

-X7 

1165 

Danmaric 

(DKr) 

85732 

-0.0211 

714 - 750 

69912 

69714 

69797 

-15 

89997 

-1.7 

6.1789 

-1.7 

1049 

- 

- 

- 

- 

- 

- 

855 

FWand 

(FV) 

4.9066 

-0.0112 

022 - 115 

4927B 

4.8899 

49069 

09 

49139 

-06 

49619 

-1.1 

8X0 

85362 

XI 

85378 

-0.1 

82919 

05 

11X2 

Frars* 

(m) 

52805 

-0.0147 

780- 830 

52980 

52780 

62823 

-04 

R7R5fl 

-04 

52935 

-02 

10X4 

X4371 

05 

X433B 

0.7 

25969 

1.8 

1265 

Germany 

W 

15443 

-00045 

440 - 445 

15494 

15436 

15441 

02 

15437 

0.1 

15388 

X5 

10X7 

* - 

- 

- 

- 

- 

- 

- 

Greece 

(Dr) 

239500 

+396 

700 - 900 

239900 235500 

2401 

-15 

24X725 

-15 

243.475 

-15 

6X0 

15 117 

XI 

15129 

-04 

15175 

-0.6 

1049 

Ireland 


15604 

+09027 

696 - 611 

15619 

15648 

15598 

05 

15688 

09 

1.5384 

1.4 

- 


0.75 Ito IB 

!U U Hi 

£B1 340 W 

JJ» 4JJ7 HOI 

910 423 Ml 


AibaUant LaStoe & Co Ltd 

■oitaLMSlKiiar 07i-aj*eo7D 

IMHItato-hrntoMaltoi 

QUaKJtJff 475 3SBS 4M»1 Ito 

CAOHKun 1 500 3.75 Still Mb 

In?l*!jtoL - J^' , i , i^ T+it*, at» inn 

rom-cuM l uo to m 

E2&000-£4ft*M 420 3273 4 SB Ml 

CSOjOODa m 1 4.73 05C2S 425 Ml 


Bank ot Irstond NaB Manat Ckaqna Ace 

M-40M0ISL I El 0753518518 

CKUOD+ >4.000 ion I 4080 1 to 

CLOto-CABM 1500 2250 I 52341 to 

Book cl Scotand 

ii TortoBiii ji w. aa»aei 071-0010440 

Wto*CC2JQK3iaB. 3JD 222 15B OBI 

SSl IS I SS 


248087 -2.7 2479.12 -2 JO 2533.42 -ZB 

502035 -04 501485 03 49^635 06 

2.7315 OB 2.7281 08 2.8915 13 

108918 OO 106938 -Ol 108962 OO 

25081 -03 253.99 -73 

202.883 -2.4 203.413 -Z2 200248 -OO 

11A128 -13 11A803 -23 12.0738 -2.4 

00237 13 0018 1.6 1-9626 02 


-03014 770 - 784 13796 10760 13781 -04 13782 -02 10734 03 


400029 780 - 787 13789 13732 - - - 

40003 498 - 518 13517 13458 - - - 

40.0051 215-231 01227 01155 01218 03 01212 02 012 01 

+00041 590 - 886 53777 53585 - - - - - - 

400026 785 * 790 1.5790 13738 13784 03 13788 05 13811 1.1 

-00027 388-387 01391 01313 01376 OO 0139 -02 01572 -09 

+00197 974 - 028 102035 101631 101982 04 12.1951 02 102021 OO 

+0.0796 097 - 372 483420 483740 - - - - 

-0329 158 - 347 154380 15X790 15X862 09 150927 34 147.482 4.4 

+0.0058 343 - 372 43384 4322S - - - - - 

-03059 182 - 234 08255 06138 06247 -13 06325 -13 06547 -13 


tody 

Luxembourg 

Na BMf ida 

Norway 

Portugal 

Spam 

O oBd an 

SwHzartand 

UK 

Ecu 

SORT 


(U 1559.00 -73 850 - 960 158930 165734 156325 -33 1572 -X3 

£U=0 31.7900 -038 700 • 100 313730 31.7700 31.7972 -03 3131 -03 

(R) 1.7308 -03057 301 -311 1.7363 1.7301 1.7308 -03 1.7308 -0.1 

(NKr) 6.7723 -0315 713 - 733 83000 87897 87773 -0.9 87973 -13 


16205 -33 
31345 -05 
1.7258 03 

6.8898 -13 


(EsJ 157.770 -033 720 - B20 168300 157.720 

t PM) 128.125 -0.19 100 - ISO 128350 128.100 

(SKl) 73704 +00112 086 - 741 73898 7.4399 

(SR) 12835 -0303 830 - 840 12881 12828 

ft 13788 +00028 785-790 13790 1.5738 

- 123G6 +03033 361 - 381 12381 12322 

- 1 <46830 - - 


19832 -5.7 162.195 -112 
12834 -33 12&06 -23 

7.4869 -2.7 732S4 -23 

12824 1.0 12803 13 

13784 03 13786 03 

12347 03 12329 03 


ITCfl rates kx Sep 2t. BUUto I 
nottl bin am kopM by aan*« k 
inn +nd 1M Do*«r Scot ttUto da 


40.0056 343-372 43384 4322S - - 

-03059 182 - 234 23255 26138 26247 -13 2632S -13 26547 -i; 

-1.1948 728 - 014 408520 40.1675 - 

40.0097 200 - 224 09235 63030 - - 

400101 382 - 385 23413 23243 - - 

•00124 808 - 849 5. 6858 55501 - - - 

-017 878-371 59502 07875 - - - 

4331 690-762 1267.73 128X08 - - - 

•00603 283-430 413448 412013 - - 

•03491 382 - 80S 303850 302550 - - - 

•da ti me Pouid Spot Mia too* arty too Ini Bma datonrt dn* r« — i l to— am not toady 
to ton. StotoQ Mat crtndrtad by Im Ban* al Engtoto. Bna orngB 196S - iDOJBd. Oflarand Mi 
I tarn TOE WMffCUTBtS CLOSMQ 6P0T RATES. Soma atom Bra rturtod by V* F.T. 


Aigantfna Faso) 03998 
Brazil <H) 08555 

Canada (CS) 13443 

Mexico (Net* Peso) X3975 
USA (Si 

PacMc/Mddto EoaVAMca 
AuotraBa (AS) 13640 

Hong Kong (HKS) 7.7277 
Indta (Ra) 313888 

Japan (Y) 87.7050 

Maloytoa (M9 23563 

NawZaatand (N2S) 1.6800 

Pimpplnaa [Peso) 255500 
Saud Arabia [SR) X7508 
Singapore (SS) 1.4805 
S Africa (Comj (R) X5363 

S Africa Fkv) (R) 43150 

South Korea (Won) 802700 
Taiwan (13) 251825 

Thailand (Bt) 24330} 

1S0R rats for Sap 22. BtotarivapraM 
but am Inpatd byaammktonra ram 


RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Sop 23 Bfr DKr 

Belgium (BFr) 100 1X11 

Denmark I DKr) 5234 10 

Franco (FFr) 6020 11.50 

Germany (DM) 20.58 3 933 

k eland (IE) 48.83 9.484 

Italy (L) 2039 0.390 

NethartandB (FI) 1837 3310 

Norway (NKr) 4594 6369 

Portugal (&) 20.15 3351 

Spain (Pin) 24.82 4.742 

Sweden (SKr) 4256 5132 

SwHawtand (SFr) 24.77 4.732 

UK 10 50.18 9.588 

Canada (CS) 2X85 4518 

US (S) 31.78 6.072 

Jnpan (Y) 3254 5218 

Ecu 3920 7.508 


■ D-MARK FUTURES (IMM) DM 135.000 per DM 



BFr 

DKr 

FFr 

DM 

K 

L 

n 

NKr 

Es 

Pta 

SKr 

SFr 

£ 

CS 

s 

V 

Ecu 

(BFr) 

100 

1X11 

1651 

<859 

2015 

4904 

5.444 

2150 

4962 

40X9 

2350 

<037 

1593 

4229 

XI 47 

3075 

2545 

(DKr) 

5X34 

10 

8.694 

2.543 

1954 

2567 

2549 

11.15 

2SX7 

2105 

1250 

X113 

1943 

2213 

1947 

1809 

1932 

(FFr) 

6X20 

11.50 

10 

2925 

1213 

2952 

3277 

1252 

29X7 

24X8 

14.14 

X430 

1200 

2546 

1994 

1855 

1532 

(DM) 

20.5B 

3933 

X419 

1 

0415 

1000 

1.121 

4585 

10X1 

8254 

<836 

0531 

X410 

0570 

X648 

6X25 

0524 

09 

49.83 

9.484 

8245 

2411 

1 

2434 

X7Q2 

1057 

2465 

20X0 

1156 

2904 

0589 

XO09 

1562 

15X5 

1263 

(U 

X099 

0.390 

0539 

X099 

0041 

10X 

am 

X434 

10.12 

8516 

a478 

0082 

0941 

0986 

0984 

8268 

0952 

(FI) 

1837 

3510 

X061 

n a<» 

0570 

9005 

1 

8913 

01.14 

7491 

4518 

0.742 

0568 

X777 

0578 

5644 

X467 

(NKr) 

46.94 

8969 

7.788 

2281 

X946 

2302 

2558 

10 

2325 

18X1 

1193 

1585 

noas 

1535 

1.477 

14*2 

1.105 

IBs) 

20.15 

3951 

3548 

X979 

X406 

98X4 

1997 

4293 

10X 

8120 

<735 

0914 

0402 

0552 

0534 

6153 

X513 

(Pta) 

24.82 

4.742 

4.123 

1206 

0500 

1217 

15S1 

5287 

12X1 

10a 

6931 

1902 

a 495 

1949 

X7B1 

7828 

X632 

(SKr) 

4X56 

X132 

7.070 

X0G8 

0968 

2087 

2517 

9967 

2112 

1715 

10 

1.718 

0848 

1900 

1530 

1309 

1983 

(SFr) 

24.77 

4.732 

4.115 

1203 

X499 

1215 

1548 

5276 

1225 

8X80 

5919 

1 

X494 

1947 

X779 

7X11 

0530 

to 

5X18 

X588 

8538 

2438 

1.011 

2461 

X732 

1X60 

2409 

20X2 

11.70 

X02S 

1 

X122 

1579 

1542 

1277 

(CS) 

2X85 

4518 

3928 

1.149 

X478 

1160 

1287 

5938 

1179 

9629 

5556 

0555 

0471 

1 

0.744 

7297 

□902 

(9 

31.78 

6.072 

5979 

1544 

0640 

1659 

1.730 

6770 

157.7 

12X1 

7.467 

1283 

X633 

1544 

1 

9798 

0909 

no 

3254 

6.218 

5408 

1.581 

0558 

1586 

1.772 

Rirw 

1615 

131.1 

7548 

1914 

0940 

1578 

1924 

10a 

X828 

3990 7.508 6528 1.909 0792 1827 X139 8971 1959 

h Franc. Nrtwepni Krata. and Swwtoh Kroner par 1ft Brtgta Franc. Yan. Escudo, Lira raid Paart 

1585 
■ par 10a 

9233 

1587 

0.783 

1982 

1238 

1209 

1 


+03002 807 - 996 03998 03805 - - . 

+03005 550-560 03580 03545 . . - 

+0301 440 - 448 13454 13434 13446 -03 13456 -0.4 13538 -0.7 845 

-0303 960 - 000 X4080 33960 33885 -04 34003 -03 X4077 -03 

<253 

-0304 535 - 545 13578 13519 13542 -03 13548 -03 13823 -0.6 863 

-0.0003 272-282 7.7282 7.7272 7.7276 03 7.7282 03 7.7432 -02 

•03012 650-725 313725 313850 314538 -33 315868 -23 
-037 600 - 500 88.1000 97.0800 97.495 25 96396 23 8447 33 151.0 

-03008 558- 688 2.5572 PKffffrt 25471 43 7*0*0 a 2 2-8033 -2.1 

-0.0065 568 - 814 15828 13588 13609 -0.7 13628 -0.7 15881 -05 

-08 500 - 500 28.8500 264500 - - - 

- 504 - 507 3.7507 X7604 X7519 -04 X758 -03 X7748 -08 

+00039 800-810 14810 1.4785 14792 1.1 14773 03 14705 07 

+0002 355 - 370 35435 XS205 35618 -53 35801 -5.0 38568 -&4 

-0115 000-300 44050 43900 43487 -94 44075 -88 

+1.1 BOO - 800 802800 602300 80X7 -45 8093 -33 827.7 -XI 

-0305 820-830 2X1880 2X1780 -03 283425 -X9 - 

-031 200-400 243400 243200 253025 -X5 2X13 -33 2531 -2.7 

i ta the Dtor Spot ttoto ahwr only Vw tot •■*• dacknrt placeK. Rawrad ram ran net dlractiy quoted 10 aia raorinl 
, UK. bobnd A ECU am q»nd *i US arrancy. SP. Mofflan noiM tartcaa 8op 82. Barn amraga ISetolOO 


EMS EUROPEAN CURRENCY (MfT RATES 

Sop 23 Ecu cen. Rate Change 96 +/• from % spread Dlv. 

rates against Ecu on day can, iota v we al cast ind. 


»to« tobtoir AOMy ONV+tolOD 

CZOOO-tStoe 4.76 5J5B +76 Tmrtr 

naoOMT4«e 62S 364 US Vwrt, 

CB.tra«4SkSM 560 413 UO nn 

£saooc-f93j»0 60D C20 5B0 Tarty 

emooo- 67S Ml 6.76 Italy 

Baretayt Prfaia Aoceurt H1CJL 

■mm Bamart. lltaBta 0B1-2S4BZN 

ciooo-oes zse ia| m w 

EZiochCs.aeB z.75 zm ua to 

r«UMW24JB9 123 244 li9 to 

<3 5000- I STS 241 I SOD to 

BttoOi Sfetotoy & Co Ltd 

FotalmCtatuaaaT.UnMGQ 071^08*833 

MCA ItnaBSWaiBi 4jj| Ob 

PirtOmtadWb- — -luramliBBCal 4 32 1 to 


JtAmHodgsBaafcUS 

■OMMraiKmCaMCM « K32220MO 

iMIWIBlDortlii UD 4« SSI 

9Wta«>(WMrt U1 409 6+0 

naMwtmal ona +sa I e.o I 

MnberdideRnncaacKi 

s BMW M|. HOW, towta , SSO 740000 

£50000- I 5.76 431 I Stol Ob 

Leopold Joaeph A Sane UnBad 
»GiaAmSb*stuaaMRSV7U OTi-smssa 


Khtaimt Beacon lid 

1H KMM1 Torn HO. Uwta was ZBT 071-287 ism 
HJCAR.SOO n I 40 sol 40.'l DMT 

KMmrart Benson Pitaata Bank 
a MM # noamr Baaoi mawl MmaraM cat 

IvunlMtaLUaMinsi sntoTtM 

KiCAcuao-i — law 4ws I 4srl 

Uoyria Saak - taaest&wat Account 
71 Uatanl Bt Undw COP JBS 0271431372 

cinuwoenoMita.. I us sw 1 U5 r«Mt 
aaaao- 519 seal sisIymm 

CSjDDO* +» 3.71 [ 4*6 1 Yaarfr 

C10S00- I 4 75 SSO I *781 *ta« 

MdtandBn*alc 

POBk2.SMSohL 0717090430 

rwm— to taooo- . sts 2ii sts *tak 

M 0.000* 450 527 4 50 ritay 

<35.000*. 500 STS 6JM ImOf 

(saooo- S5fl 412 sw tanr 

IE5W US - S2S ttalf 

NbHoowMb BMg Soc - BartnaaMaraator 
kmatotoulNaata 

htcaWW.Startal.aa5 INI 1001 TOM 

6.000- C4M* 330 240 I 0J4 to 

rsjxxi-tssto. sun 2At | sas to 

710.000- 04389 +30 123 I *37 to 

E2S3M44S919 +J0 100 490 to 

£50000- 530 SOS 1 541 OB 


it BMp Soc Praafge 

l HO. BaamemaSt Bto i 


Cheque Accoaot 


IMtadoalaa Bank Re 
69*nkmSoijan. Ertob 


■ JARAMSSE m nmms (IMM) Yen izs per van too 



Opfn 

Unest 

Change 

High 

Low 

Eat wol 

Open brt. 


Opart 

Latest 

Change 

Hgh 

Low 

EbL vof 

Open ire. 



05468 

+09002 

05472 

09456 

16694 

7X783 

Dac 

1.0272 

1.0297 

+09020 

19308 

19263 

12589 

4X484 



0.6474 


_ 

0.6474 

521 

4984 

Mar 

19386 

19372 

+09008 

19372 

19388 

33 

2585 

Jut 

- 

0.6483 

- 

- 


1 

476 

Jun 

- 

19456 

- 

■ 

- 

4 

450 


Hathartan da 2.19672 214995 -030028 -X13 X31 

Belgium 403123 3X4744 -03002 -1.84 4.99 13 

Gomany 134964 131838 -030025 -1.60 4.74 

Inland 0308628 0.796331 +0001125 -182 485 10 

France 653883 655913 +030068 0.31 2.74 -3 

Denmark 7.43879 754483 +030354 IAS 159 -10 

Pormgol 1928S4 19X900 +038 158 1-48 -11 

Spain 154350 15X375 +0.135 XOB 030 -21 

NON ERM MEMBERS 

Greece 264513 292340 -0-023 1X48 -X72 

Italy 179X19 1834.18 -581 736 -4*45 

UK 0.786749 a 788875 +0301302 032 X05 - 

Eeue— rtrattoMby Bia Ewopsao Cu iiiIM u i l Cwrandmamlndsaeantoa) irtad man a ^yi L 
P en M rtaaa*w' W *larEocapoa»fcrtclta»tod*noMeatao6 arae7 . P M ig to o a to tae toe 
mda ti a m ai n tao apma to. ae pam a mw* dtom ut e btotaao «e acaei matot and Ecu conart Mm 
ter a ewrancy. and Be m rt dmw n f i B laad p rt to rtaw datadoo rtBieciaiwioy^nwrttataB tam to 
Ecucartrrt raw. 

n7(MQ SWfSag red Baton Lka nopandod tarn ERM. to&jemam rrtrxriantl by toe FtanM Umoa. 
■ PMLADBJPNUSE C/SOPTIOIB £31.250 (cents par pourxfl 


BCTW* 031 55*8235 

sasTS 1 -litartr 


Cater Alon Ltd 

20 Badw Lara, txMta K3V MU 071-0212070 

KZA I S7S 242 I SJBl Ml 

FtaOOOinO- +J&* - US to 

OwagenuMto-.— 1 S75 -I ski mb 


1 HtoMWc Raa, EC4M 7DH. 

(ZiOO-CieABB STS 241 

E20jw»-e+a4sa — +40 soo 

csaaoo-cwjm *26 sib 

C10O40O- *50 441 

njamuas S7S 200 

(MUOHnag S23 144 

noojxM-jioaase— sso 243 

6200400- S76 241 


rtyriaotak Bank Fkniile Sototoo Acc 
3atoMncmFi».aM«wSi2M. ou-mnm 

ngJDIH4UH I 570 171 I 175 1 to 

CSUMHEMU9B I X80 246 I 185 to 

C250JD00rtldMW 1*60 348 I 44al (IB 

Tba Ce-opetstrira Rato 

PC Ban 300. S tami u M *. Imca D4S2S2W0 

TESSA 1 STS - I -Ine+T 

soil «, 

csaoao- 558 *17 364 |e-4i&1 

f2S40O-t4BjMB *41 181 447 G-Mi 

ci<uxe-E2+4aa *3i sas *wla-Mi 

ESWO-CMBB— — - 3J1 248 13+16-Ml 

B£M>-— . , ! '.".'ftST 243 | 153 |*-i» 

Euuno-£494W am 2JS »6+n 

fSjOMMXSW 240 140 I 241 ! e-tom 

tortwra ttoprt-ka&aitoam 

E2S0400* 447 178 *42 6+Mn 

£CA4RHE24e4Sa_- Ml 14* 13+ M* 

n(uxx>-C4B,aa see iao I am o-*a# 

caae+ssaa ua 147 1 zh 6+m 

lOM to artaatatoTd [045713711 


tSOJBOB* 5M *13 SWl Italy 

cwmo+mm* — am an sea Tatar 

£70400+39399 *50 138 430 fu* 

i_iDjoo-ciBjns no 243 iso Tam 

EZJOO-£RW9— 250 148 2J»)Vto* 

Raa Brotfure IWteX Barton 

Ndanrarta Wto. London ECZH 401 071-623 1155 

htauartr Baa Bn— 1 523 an I sml mb 

hreraartfi— tonrt I in as* *aal Mi 

OMtoMtotoWtalt. I +7S uel *83 1 to 

tool Bank al Seated pfc Prerehoa Me 
<2 SlMon S* &Mura* EH2?lt. uLs23a» 

c now- — - — — raja 24i am o» 

OS000-E4S4M 1 150 243 1» Mr 

210400-0+400 175 240 2.71 to 

tSOOO-e94M 340 UO 242 to 

dm-njaa I uo i.u 141 or 

Tinn II Pmanerflteliait nniiMnD 

16-22 WMariUlMDrtftMl 3U. 0300 282101 

OMtctai 1*13 saa I 44i1 toto 

lESSAFtaditotr. — 1*31 - UO Hto 

IBSMMta — I *89 -1 540 1 tort 


IjndalBankidc 

23-37 fttmalUrt+J 


23-S!ftrtDlB Marti SLMU 0272 74*720 

WHcsaxMitowita Oja 2413 I xan to 

OMtartDIBIAnOmO-l 047S 240* 1432 to 

H4KQM10- *000 1000 I *060 to 

HMAFIOaaoO- I 4.125 248* | *180 to 

TinMIESM 1*075 -1 *009 to 

IHted Dominion* Trust Ltd 

POBai 92. Ham, SHOOT 081-4472*33 

to*d tow tonya ura ia i 

Cl 400+ J 545 294 I U6l to 

United Ihsl Bank Ltd (teraartv UIQ 

lBm*CaimmMrUflatalW1H7M. 071-250 00M 


£1 0400-00 a*,naOo+. I S75 5H 64ZI3-MB 
tt0400-1»rt*+0to»- 1 740 S43 1 744 B-M01 
SZUM0-1 Yta 1 725 5+4 I -!«*■« 

A Homy Schroder Wang 8 Go Ud 


Cl 0.000 and tarn 1 1250 £4375 1 15*1 Ml 

Western Trnst Mgb tateroot Qiaq» Acc 
IMtoamyanto.npnain.ilSE 075522*1+1 

Pi MOO. 1 125 SB* [ 545 1 to 

CS400-n449B 500 173 64* to 

£1400-64499. 1 *75 150 I *44 1 to 


aoiis- tm ciaMEta na *r im pmm* m 
anq raaiH or m dunatoi a one im an m 
bm are oi uaita pnrm mr rtta+v fa mubi to 
(m* IM rtnaa Ml Am CM Om ran mM la 
Me accota <1 nog i M i iaiy at Marart pakl altar 
oma a yaar. T Mi ia M md nW. Irt Cc rvrj— | 
» OM* rand la wnaia a n «■ anrt 


■ SWISS FRANC FUTURES (IMM) SFf 12X000 pm9Fr 


[&»0Ra> INTEREST RATES 


I FUTURES (IMM) £62300 per E 


1X721 

35294 

Dec 

15700 

15702 +09024 

157B8 

15722 

6911 

31516 

23 

629 

Mar 

- 

15740 

15740 

15890 

1 

288 

40 

60 

Jun 

- 

15670 

15670 

15830 

1 

8 


527*03 

Prica 

Oct 

— CALLS — 
Nov 

Dac 

Oct 

— PUTS — 
Nov 

Dec 

1500 

799 

7.48 

791 

- 

097 

038 

1926 

696 

626 

552 

093 

052 

092 

1590 

295 

X33 

397 

031 

097 

154 

1978 

122 

157 

251 

1.12 

195 

X55 

1900 

058 

X91 

151 

X71 

352 

*02 

1905 

095 

058 

094 

499 

528 

592 


l^ins^eiHJtilisha Sun reyon 


Piw+oua dqr* «ol Cato 6,746 Pub 14B* . Pre*. toy* opm**. Crtb 4783» Pum 945466 


INTEREST 


MONEY RATES 


l(UFFQ~ Ptoim pabtta of lOOK 


LONDON MONEY RATES 


September 23 

Over 

ragM 

One 

month 

Three 

mtha 

Botgkim 

4T* 

54 

51k 

wort ego 

4T* 

54 

54 

France 

51. 

54 

61* 

vroek ago 

5; 

Si 

59k 

Germany 

452 

4.95 

60S 

w<Mh OOO 

4.87 

4.95 

5.02 

Ireland 

4i 

5«» 

6ft 

wert ago 

*i 

5V4 

64 

Italy 

8- 

8% 

B« 

week ago 

8- 

8V, 

8% 

Motherlands 

<84 

59? 

612 

week noo 

591 

602 

607 

Swttantond 

3+ 

33 

44 

week ago 

3'i 

33 

4 

US 

43 

5 

54 

wort ago 

+1 

S 

5 

Japan 

2!* 

3H 

2V> 

week ago 

2Vk 

£H 

29k 

■ S LIBOR FT London 
Interbank FtekW 

»* 

SVi 

wvrt. ngo 

- 

64 

54 

US Dodor CO* 

- 

4.70 

602 

wort ago 

- 

4.70 

4.62 

SOR Linked Ds 

- 

3% 

9& 

wort ago 

- 

3% 

34 



Open 

Sea price 

Cheno* 

Hgh 

Low 

E*L vai 

Open ML 

Sep 23 

Over- 


94.71 

94.73 

+093 

9*75 

9*70 

27830 

1920// | 



Mar 

B428 

9452 

+094 

9456 

9*29 

38607 

170061 

Interbank Staritog 

S-3h 

Jun 

9397 

8X94 

♦099 

9X96 

9X87 

21019 

105888 | 



Sep 

9352 

9358 

+099 

0352 

9352 

8138 

68737 

Treuuy BAs 

- 


53 8* 


S«r price 
9051 
8X70 
9X20 


Open Sett price 
9X56 9X60 

9X19 9X22 

9431 9437 

9X50 9487 

tOOiTH CCU FUTOF 
Open Sed price 
9X49 8X55 

92.88 9235 

92.44 92.51 

8X02 9X11 

i BBdad oe AFT 


FWWS tUFFQ LI 000m podia ot 10W 
High Low &d- *Ol Open Irit 
9054 9026 4138 31904 

8X71 9X48 1484 18615 

8X22 8a 99 693 15971 

8838 8839 406 14719 

UTXSflS QJFFE) SFflm poMte of 100» 


Change 

+4106 

+337 

♦037 

+007 

Change 

+036 

+X09 

+0.09 

+ 0.11 



Low 

Eat ad 

Open Int 

8680 

9556 

3738 

23832 

9622 

9618 

1103 

11064 

9497 

9*81 

488 

6178 

9456 

9450 

250 

740 

Eculre paints of 100% 


High 

Low 

Eat vet 

Open ML 

9356 

934? 

1179 

7505 

9298 

9X89 

944 

5489 

8251 

9X44 

158 

2338 

9X11 

9X02 

47 

963 


Diacourt Marital dope *\ - 3 1 * 5-4H 

UK deartng bortt baa* lenckig rate 5li per 


Cera of Tax dap. (CIOOflOG) 

Cats ol Tm dap. wdar 2100400 to 1> 
Atm. onto! raw or dSOOUK SSOTOpc. 
laa* Agesd raw tor praiw Sap XX 1 
pariod Jto 30. 1B04 to Abg SI, 199* ! 
topi. IBM 


7 days 
notice 

One 

month 

Three 

months 

Ste 

vnonttw 

One 

year 

4*-4h 

5 * 3-514 

6V5* 

6>a-^ 

7ft - 7ft 


54 - 5ft 

5^-Sd 

6% - 6*> 

7ft -7ft 

- 

5*-5ft 


- 


- 

5*4 -5ft 

6V-6*, 

6V-6«S 

- 

6ft-Sft 

5ft -5ft 

5B-5S 

8ft - 6ft 

7ft - 7ft 

5-4H 

* 

- 

- 

- 

1 5t» per cam from September IX 1994 


Up to 1 

1-3 

M 

68 

9-12 

morth 

month 

matffa 

iiKmtha 

morrthe 

Ha 

4 

3\ 

3*» 

3*1 


<> 'l . v .. ' '• ; .■ : •• 

Distributed from our Pitot Centres hi Tokyo, New York, 
Frankfurt, Rotritalx and London, this survey wfll term a 
unique source of reference and will be seen by senior 
managers who have responsSigtty for making purchasing 
decisions In all Industrial sectors worldwide. For a full 
edttorial synopsis and details of aval labia advertisement 
positions, please contact 

Anthony Hayes 

Tet 022.454 0922 Fax: 021 45S 0869 
FkMKWTtaas, Benge House, 60019 Road, Edgboston, Bkmta^nm B15 1PQ 


FT Surveys 


BCOO Ota raa 900. &port Ften Mato up day fuq St. 

804 to Ora 25, 190* Stromas ■ A rn B32pc. Ftararc* rate lor 
Scnamas N A V 5478PC. Rrerna House B*m Rrt* 5>3P0 tam 


I FUTURES CUFFQ £50X000 potraa of lOCWt 


Open 8oU price 

Doc 9X20 9X19 

Mm 9X28 9X29 

Jin 91.60 9131 

Sop 91.16 91.17 

Traded on AFT. M Open tanrart flga. 


Change 

Hgh 

Low 

EaL eol 

Open frit 

+0.01 

9X26 

9X18 

38017 

162508 

+003 

9X34 

9X28 

15673 

mwn 

+X03 

9157 

9150 

8099 

54541 

+004 

9153 

91.16 

2218 

53356 

ra tor prartou* day. 





Loot 

thro 



for a guide 
the world of 


■ 5IUU6Q oynOOmqjFFQ £500300 points of 100% 


a ~ 

EURO CURRENCY INTEREST RATES 

cen 23 Short 7 days One Uvea Six One 

Se P “* „nMh fflODdM BBS* 


a THM MORTW KUROPOIXAB (ttffil) Sim poVtta of 100% 



Open 

LWBSt 

Change 

Hgh 

Low 

ESL vo) 

Open frit 

Dee 

9*11 

9*12 

+X02 

9*14 

9*10 

201590 

538538 

MW 

8X74 

8X74 

+O01 

9X77 

9X74 

157524 

405555 

Jtai 

9X41 

9X39 

+002 

9X41 


77588 

296509 


Strfta 

Price 

Dec 

- CALLS - 
Mar 

Jun 

Dec 

PUTS - 
Mar 

Jun 

9300 

040 

014 

X16 

X21 

0.85 

155 

9325 

055 

XOS 

X12 

051 

1.04 

1.76 

9350 

X13 

004 

XOB 

054 

125 

1.97 


, CM* 13020 PU* 8605. Prartoui «toyt open h*. Cato 271S15 Pito 176568 


iJ.il.iun Franc 

3-'3 •<-*< SJ--3 

DulcPCtafctor 5i 4j| «, - 4jJ 5^-4« 5A ■ 

r-jf a=a 


J); - 4}J 4}J-4« 5A-4B SA-Sf. 

9-9 


sa-6» 

7h - 7i* 
5^4-5*. 

6Vt* 
5H-5H 
10a -10 
8h -8^8 

8&-6h 
4% -4*, 

54-S3| 

6H-X*. 

9^-94 

U-2& 

4-34 


es-sia 

T*-7H 

«a-tt 

541-6*0 
B%-6* 
10^ - 10, r . 
x'i-sii 

7*1 - 7A 

4S-4ft 
6^1-8% 
8*1-6 
10fi - 10fl 

45|-*1* 


ETrra* A-l 3£ ; 3K 3S-« 4i-g g-4jj g-g 

S'^SS* S-S S-S S's«6. *-SA 81,-6 

9-7*2 8l,.77 S e>4 -8*f BA -6ft 9*4 - V, 10ft - 10fl 

“ l “ sl-SA 2M-2H 2 %- 2V Zh-* 2 A- 2& 

SL.Hu. li-« H-A. 

.j,«i ^n, nam ^ 1*3 Octa «1 Yan. Mo toyrt ««». 

, Tw mg MONTH PIBOR FUTURKS (MAUR Paris Intotterk cTfertd mto 

Open S«n price Change Hgh Low 6st wl Open fcx 
. 04 M 94.06 +X06 M.0B 94.02 25382 45367 

» S 9336 +007 9X58 3X52 10,584 3X519 

« n 8316 +X08 9X19 9X11 9310 273» 

S;S 92.84 +0.10 9X68 8X78 4324 19348 

. -mbbb aaaatTW eiWtatOmB iLgFEJ* Sim pdnta oMOON 


■ US TRMASURV OKA. F U T U WB 6 (IMM) tlm par 100% 

DM 9436 9437 +002 9437 9435 X732 15378 

MW 9L27 9438 +032 9438 9437 603 7.400 

Jun - 9X92 - 9XS2 - 3 2330 

AO Open IMM ten. amto pmdaadar 

■ BUWMIAi«OWIOM|)3yaDMlmpdn»idii»K 

Softs CALLS PUTB — — — 

Price Oct Now Doc Mar Oa Nov Doc Mm 

9480 X2S X27 031 0.1B 032 004 038 037 

9475 XO0 XII X14 X10 X10 X13 X16 053 

9R» 001 033 XOS 005 028 030 032 073 

PM «bL teed. Cato 8360 Rot +007. Rarinia toyte epea ire, CM* 161288 Rto 1SI907 

■ m»BO SWISS HtAltC OFTlOm (UFTE) SFt Im pcirila oi 10P% 

Stito CALLS POTS 

Price Dm Mar Jon Dec Mw An 

9550 0.17 X14 039 037 0.42 X72 

9575 035 037 035 020 030 (L93 

9600 032 034 032 032 

Ear. art. M*L Cato 10 Pub X Pienore Say", open <t CM, 1880 naa BiO 


options? 

We cover all major commodity, financial futures 
and option inarkcis. Fi»r details of our onmpkac 
hrokerjijL* service including execui ion-only. 
.tdvLsory and managed acininik, call Nick 

Coatlnip now on #44 71 417 9700 


BASE LENDING RATES 


% * 

Atom 8 Company . — 5.75 Dreican Lrento X75 

ABed Trust Bonk 525 Exeter Bank urned _ X75 

A® Bar* 575 FtasM&OenBa*- 63 

•henry Anatedior...— X75 URotien Reming & Co X75 

Bv* of Bared* X75 Qrnbertt 575 

Banco Bfcao Vtoya_ i75 aadnOGE Mahon 5.75 

Sank of Cyprus 5.76 HWftBwkAQ2t«fch.X76 

Barttoftatand X75 g Ha rnbt w Ban k 5.75 

Bank of hate 5.7S Hart^eiGfti kwBXS.75 

BorkofScoOBrid .6.75 waSarruN. 575 

Barclays Bank 5.75 C.Hoate8Co._ 575 

Brit Bk of ktef East... 635 Kcngtong & Shagal 525 

•Oo+nENptoy&CalJdATS jtAoi Hodge Sank X75 

CLBankNattotend... 575 Map* Jteeph*Stm&75 


Ouon SoR price Change High 


Low Eat vd Opwi W. 


W id 94.10 +X03 94.14 94.12 

93.73 +3.03 

9X37 +0.04 

93.08 +0.04 


111 2010 

0 1445 

0 276 

0 62 


CKbarkNA 

OydaatteteBerfi. 

675 

675 

UoydsBank 

MatfnJBarftUd... 

--675 

_5JS 

The Co-operBftre Bsrft. 675 

MdandBart 

_ 575 

OsALoidr... 

SJS 

NaWBCmtciar 

— 5.75 

Cypna Poptor Bar* _67B 

•Res Xcthere 

.... 673 


* RcMxxghe Quarartoe 
OonxmonlMBdlana 
longer sA0tf90Cim 
a b a rtong hri fe lion. 8 

Royal Bk cl Sectoral _ X75 
•ante & IWtitoi Secs . X7B 

TSB -5.75 

•Un8adBkefi0iMB8_ &7G 
Ur8yTruaB8f*Pic_ 5.73 

Western Trtto X75 

WMBM8ylakteN.„X75 
YakriweBar* X75 

0 Martibers of London 
Investment Banking 
Assodrtton 




SFCUHJTIES AND FUTURES LIMITED 
rurttatai wu 

IW'. iMn+vn H mi p.1, U+bi ftl* 111* 

Trl -++ ’I +17 TUI h» «■"! +l*'>'IO 

a heiiie* oe the snaumEi a wniws auiHomn and the London sraat exomhbe 


Please tvh‘[ibuiie me to tell me more about your sen-ices. 


Mr/Mrs/Miss/Ws 

Telephone nutrtw.{day)_ 
Address: 


. (evening) . 


Postcode: 

Ybu should only specuMa in futures and option* wi» titodi you 

close. Futures and cptkms press cen fbetuateuddy and in cartsri FT24tX» 

'maaiceslhis can tod to tomes in aaessol monies deposited. | 


X 






X 




FINANCIAL TIMES 


WEEKEND SEPTEMBER 24 /SHPTEMBER 


25 1994 



Details of business done shown below have been taken wfth consent 
from last Thursday's Stock Exchange Official Ust and should not be 
reproduced without permission. 

Details relate to those securities not included In the FT Share Information 
Services. 

Unless otherwise indicated prices are In pence. The prices ere those at 
which the business was done In the 24 hows up to 5 pm on Thursday and 
setded through the Stock Exchange TaHaman system, they are not in Older of 
execution but In ascending order which denotes the day's highest and lowest 
dealings. 

For those securities In which no business was recorded In Thursday's 
Official List the latest recorded business in the four previous days is given 
with the relevant date. 

Rule 4j*(a) stocks are not regulated by the International Stock Exchange 
of the United Kingdom and the Repubfic of Ireland Ltd. 

* Bargains at special prices. $ Bargains done the previous day. 


BOC Group I 
-Cl St£ 

fTTP PLC 7_SP(N«3 Crw Cum BBdPrMOp- 
198200 2 pOSoW) 

era PLC AOR *ti) - $1832 __ 

Bampton Property ftoup Ld 7%% tin Ui 
StatflA*}- £92(203*94 
Banna Homes Group PLC <M 10p - 139 
(193*94] 

Bodays RjG ADfl ffcl) - $36.7488 
Bodays Bank PLC 12* Urn ftp Ln S« 
2010-21054 

Bards* BrakRC 18* UWCtp LnStk 

2002417 - £133% (168*94 
Baeon a«p nc 75Sp 54*0 Crw Rai ftl 
2Sp - 87 (ZISdM) 

Barton Qap PLC H2Sp Cum Rad ftf 
2006 10p - 107*2 

Batons PLC 0N Cun 2nd ftf £) -BW 
(218*94 

Battles PLC 9%W Non-Cun ftf B1 - 113 
BanatD EapknUon Ld (M R031 - 90 ■ 
Bar & Wsiacs Arnold That PlC Ort 26 p - 
545(188*94 

Bms PLC AOR (2=tl • tie* 

BaaftC 10*1* DdaStk 2016 -£10*43 
-473 £ \ 

Bn* PLC 4%% un* Ln SBc aa»7 - oat* 
l?lSc9fl 

Braa PLC 7%% Una Ln 80c 9207 - £94%4 
Bwa bmamanto PLC 7%* Uns Ln 9* 92* 
97 - 989*2 P*8eW) 

Bared* Hklpt PLC 6p - 47*2 008*94} 
Bagmen d-y AS *B* Non Vtg Sta NIQL5 - 
MCI 94*2 pcS«*W} 

Btodndam Mdrtfcos BuWing Sac9%% 
Png fat Beatog Shs 01000 - £86 
Btodwrood Hodge PLC 4.7% Cum ftf £1 - 
35 <206*94 

Stadowood Hodge RC 9* Cun Rsd ftt £1 
-40 

pntBrtrinmant Carp Sha Com 

stk«aio-£iocns*»4 

Bkw Cfeds Industrie* PLC ADR (lrl) - $4% 
Bu* Ckd* fattostriee PLC 5%% 2nd Dab 8tk 
1984/2009 - £72 fl6Se34] 

Bus Cbd* tattestora PLC 8%H Un* Ln 
30(1975 or afl) - £83% (208*94) 
BootfHoey) * Sons RJC Cun ftf £26*) £1 
-73(213*94 

Boots CD PLC ADfl (2:1) - *103 


» AC 12%% UraLnSOc 2012/17 


British Funds, etc 


Treasury i3%* Stk 200CHJ3 - E120JJ 
(21B€04 


Corporation and County 

Stocks 


London County 2*2* Core Stk 1820(or a IBM) 
■ 05)195094 


DucMy MatroDOlKan Borough C0unc97% Ln 
Stk 2019 (Rog)(F/P) - £77}J (lBSe94 


Kensington & Chetoeaptoyd Bcrtugn)l1.1S% 
nod SOI 2000 - ci 08 (Z1S*94 
LetoeMa C«v Ccuwd 7* Ln Stk 
M19fftoiJ)lF/ft - E77U (19So94 
Manchester Cap 1891 3* Rod Stk 1941 lor 
after) - £30*2 (213*941 


rto«K3Ett»4lpQn-Tyne(Cl(y oQ 11*4* Rod 
13*2 (193*04 


Stk 2017 - £113 
Sotfonj icily oO 7% Ln Stk 20i8(RegXF/P) - 
£77>i CiSe94) 


UK Public Boards 


Cfyacport 13 4% tod SB« - C39 (71S*04) 

Pen ol London Authority 3* Port ol London 
A Slk 29/99 -£77*24 


Foreign Stocks, Bonds, etc- 
(coupons payable in London) 


QE>oaj,( Kingdom of) 6 * PU> War S3g Ln 
1928 Fdg Bcte 1985 - £30 (193*94 
SawnyfFnw State oQGennaiy B* 25yrSttg 
BUS Of 1927(0X1 251 ■ £88 (188*941 
ADbey National Staling Capital PLCSttW 
Subort Ota Bds 20O4fflrCVarsl - £92** 
Abbey Nattid Treasury Sava PLC 8 % Old 
Nts 1999©rC1Q00. 10000, 100000) ■ £87% 
I19 Sb»4 

Abbey National Treasury Ssrva PLC 7%% 
cut Ms 1996 (BrC Vafl - tS5,*« 

Abbey National Treasury Servs PLC 8 * GU 
Bds 2003 (Br C Val - £89*i 
Acer toc x xp o rotad 4* Bds 300KB«10000) - 
S250 2S1 2S2 253 
Allied Domocq PLC 10*1* Bds 
\999(BrC50OO&ia0OOm - £103% (205*04 
ASDA Group PLC 9%% Bite 
20 CIBi£iooasinno)-tBsS| 

BP America Inc 9 * 2 * Gtd Nts 1998 (Br £ 

Vart - £100*4 C0S«94) 

Bodays Bonk PLC 83% Nts 2 ttW(BrfVari- 
ous) - £80, ‘t (193*04 
Bardoys Bank PLC 1 D%% San Sub Bds 
1997IHr£1 00081 0000) - £ 102 % (203*94) 
Bodays Bank ftC 12%% Srafar Sudani 
Bds i997{Br£Var] - £109>a 
Bomgs PLC 9%% Pop Subord NtoflrtVtaF 
oust - £80% (19S*94 

Blue Ckd* Industries PLC 10\K Bds 2013 
(BiCSOOO&IOOOOO) - £104% 

Bradford & Bhgfay Bmkfcifl SocMyCobrad 
Rt^fflaNts 2003{Rsg MdttfMOOO) - £92*2 

British Amyl PLC 9*2* Nts 
i997^r£iaooaiaooo) - eiai 
British Gas PLC 7%K Nts 1997 (Br £ Vta) - 
£97*2 *2 (193*94 

Brdsfi Gas RC 7%% Bds 2000 (Br £ Vat) - 
£33% 

Brash Gas PLC 10%K Bds 2001 (Br 
Ciooa 100004100000! - £104% (21S*04 
Bntsh Gas PIC 8 %K Bds 2003 (Br E Var) - 
£91% (213*94 

BrttMi Land Co PLC &S75H Bds 2023 (Br £ 
Var) - C 86 % % 

British T da cam mun l cd lon s PLC Zero Cpn 
Bds 200d(Br£10aui 00001 - £01% 

(203*94 

British Tetecanmuscatlarts PLC 7%K Bds 
3003 (Br £ Vo) - £88 P 1 & 394 ) 

Braun TetecorrunudcaUun PLC 12%K Bds 
2006 - £118)2 (I9S*94 
Burmah Castrd CapHo^Jersey) Ld 9 * 2 * Crw 
Cap Bds 2006 [Rug £1000) - £149 50 
Gommoamaith Bark of Australa 8 %* Nts 

2000 (Br SA War) - SA9S% pOS*94) 
DonmartOOngdom of) 6 %K Nts 1998 (Br £ 

Var) -£ 82*2 % 

Depfa Fkam N.V. 7%% Gtd Bds 2003 (Br E 
Var)- £83% 

Dixons Group Treasury PLC 7%K Gtd Bds 
2004p£Vortou3-C81.eS% (208*94 
Dow Chamcaf Co 2ao Cpn Nta 3 015/ 
97(Bf£1000&10000( - £79(206^4 
ECC Group PLC 6 * 2 * Crw Bds 
2003IBr£im)8100aa) - Cl 00 (208*94 
Eastern Boctricay PLC 8 %% Bite 2004{Br£ 
Voro)-£91% (2136®4 
Bf Enterpriaa Rremc* PLC 8 %* GBl Btdi 
Bds 2006 (R*e £5000} - £94% poSdM) 

B1 Enterprise Finance RC 6 %* Gtd Exdi 
Bds 2006(BrCSOOa610000(9 - £34*i4» %4 
Far Eastern DapartoMnt Stares Ld 3* Bds 

2001 (Beg Integral mUH 81000) - $33% 94 
Par Eastern TaxNa Ld 4<K Bds 

200B(BrS1000Q) - Slid 112112% 
FWandfftepubHc ol) 10%* Bds 

2 (neȣio(n&iooooi - cioi% % c2is*B4 

FWandfRaputflc Ofl 10%* Bds 1998 - 
£103% 

Full Bonk Ld 1 %* Crw Bds 20O2(Bi*SO0(B - 
5106% 

Hatean Buidtog Sooaty 6%% Bds 2004 
(Br£ 1000, IOOOO, 100000) - £80.095 2. 
(218*94 

HaOfaji Bidding Soctety 7%H Nts 1998 (Br E 
VU)-C95i 

FLkfax BUWtog Sodat* 8%* Nta 
1999(Brnvore) - £95?, 6% C1S*94) 

Hsure Budding Soctety 11H Subord Bds 
3014(BiC1 00005100000) - £107% 

Kabtox Bunding Sactely Rig Rle Nts 1999 
(BrSVar) . 589.71 9072 

HaMn BukSng Sadety Ca8ared Rig Rto Nts 
2003 iBr C Vtel - £92 (193*94 
Hanson PLC 9%«« Cnv Sutxxd 2008 (Br 
CVoil - £108 (219*94 


Hanson Trust PLC 10* Bds 3006 (Br£5000| 
- £97% 8*2 


Hckoon Capote Ld 7* Ciw Cap Bds 2004 
ittetD - 129*: (16S*04 
I 'moral ChenscU todusttn PLC 10* Bds 
SXOiBrt 10005 10000) - £100% 
rmpenai Chemical Industow PLC 11 %* Bde 
IWWBrCMOO) - £100 (16Sa94 
I at emotional Bank kx Rec 5 Dav 0%* Bds 
2007 (ftCSOOO) - £98% % CQS*S4 
intamatoxS Bank «x Roc A Dev 10* Bds 
1999tBrCl000310000) - £102%* %$ 
Wwrwtmna Bank far Ftee & Dev 10%* Nts 
1999 (BrfSCOO - £103% C1S*04) 

Japan Pwetopme n t Bank 7* Gtd Bds 2000 
lEr £ van ■ £90% CCS*94 
Kanssi OocBic Power Co Inc 7%* Nts 1998 
(Br C Vari ■ £9*,', 

Kyustu Electee Power Co tec 8* Nts 1997 
(Br C Vat) ■ (B7%$ 

Land SocurtWn PLC 9*2* Bite 
2007(Br£1 000410000) - £98% 

Lam Srcuten ftC 8%* Ow Bds 

TOQTtBrCIOOm - £87 (205*941 

Land Seetritres PLC 9%* Cm Bds 2004 
IBrCSOOfUSOOOO) - £107% (303*941 
Leeds Pom u iwnt BUksng Soctety 7>z* Nts 
iroriBrCVarl . £35% CCSoBst 
Leeds Pemvutort Busamg Soctety Cateid 
Rr^teMs 20C3(ne<l MuttciOQQ - £94 
(31S«UI 

Lp*a (John) PUC 10%* Bda 1998 (Br 
£1030051 00000) - £103% £03094} 

Lloyds Bonk PLC 7%* Subord Bds 
ZOM/Brfltirioua) - £82% % 1303*94 
Loyds Bank PLC 1Q%* Sutxxd Bds 
tB9HBr£lOCOffl ■ Cl 02% % 

London Etectnary PLC 8* Bds 2003 (Br £ 
Van ■ 0902 % (T0S*94 
k«PC PIC 9%* Bds 20CM(Br£100081000q 
- CSC 95 

uuvopautv FtoaneaLd 9%* Gtd Nts 1097 
(Br CVor) - Cl 02% (16S*94 
Matronal ftiww PLC 10%* Bds 2001 
Cl 00005100000) - £103% piSeM) 

Nstcrjl & Prwndai Bldg Soctety 10%* 
Subord Bds 2005(11 - £101% C0S*B4 
Nanond W cstnteqtw Bw* RC I1%* Und- 
SueNts CldOOtCnv id ftf)Reg - £101*2 

National VV eat n ln s ter Bark RC 11*2* Und- 
SubMs ClOOOfCm to Prf)Br - £101 

i?OS«94) 

NahornMde BuMtog Soctety 6%H Nta 
IKTJfBrf Vmi - C8G% PQSaB4 
NatkxRnde Bidding Sooety 11%% Nte 1995 


iBr E5000&100000) - £102% (IBSeSd) 
" Soaetyii%9‘ 


Nasotiwrae BuMnn Sooety n%* Nts 1997 
IB r (S000 S tooooq - C104% (20S*94 


fMlonwtcfaBuMng Soctety ZsroCpn NO 
1898 (Br E War) - £80% (203*04 
New South Wales Treasury Cup 2tr- 
aCpGdBd2020 

(Br3Al 0000.10000041 000000) - «A8% 
NswZssidnd B%* Bds 
19B5(Br£1000&iaOOQ - £101% (198*84 
OsskD Gas Go Ld 8.125* Bds 2003 (Br t 
Vto)- £89% (203*94 

PndOc Bectec WkeSCabte Co Ld 3%* Bds 
^fR^mnuomq - susjk 115*2 
C>S*94 

Pacific Bectec wre&COite Co Ld 3%H Bds 
200l(BiS10000)- 8115*2 

ftnlroUar 4 OrtenM Stawn Nav Ce 11%% 
Bds 2014 (ETC1 000051 00000) - £109% 
PoswQsn PLC 8 7 s* Bds 2003 (Br 


Cl 000051000001 - £96% (168*94} 
al Ld 8%4 


mac copkaf Ld 8%* Crw Cop Bds 2006 (ft 
£5000450000) - £124%^ 

RTZ Canada tec 7%* Gtd Bds 
19S8(BrG5000410000q - £92.65 J3& 

Rank Organtsodon RC 8%* Bds 2000 (Br £ 
V*) - £83% 

Bnfand CopBU PLC7%% Cnv Bds 
20Q2(Br£ia0051000C» - £100 {21Ss94 
Robert Rensng tod Rnsnoa Ld 8%* Pwp 
Subord Gtd Nts (Br £ Vte) - £80% (203*94 
RottncMds Conflnualtan Rn(CJ)Ld9K Pap 
Subart Gtd Ms (BrCVarioui) • £78% 
(208*84 

Royal Bonk at Scattend PLC 6%* Bds 
3004B«/an} - £80% 

RoyU Bsnk of Scotland PLC 9*2* Undated 
Sutxxd Bds (Br £ VW) - £89% {21Sa64 
Rayte Bank at Scotland R.C 106% 8ubart 
Bds 2013 (ft £ Vari - £101 J 
Ftoyte rmuranoo rtdga PLC 9%% Subord 
Bds 2003 (ft £ Var) - £93% 4J2S 
Stocera Novkotlan Co r p aradon 3.75* Bds 
2003 (ft S10000510000G) - 3105 105% 
106*2 108 

Skxigh Estates PLC 10% Bds 
2007(BriM 000510000) - £95.7 
SmlthlAw BooctcxTi Capkal PLC 7%% Gtd 
Nts 1988 (Br £ Var) ■ £953 (19Ss94 
8%* Bds lOOd 


8 weden 0 dngdorn at) 8%* Be 
(BrtSOOO) . £100% pcs*04 
Tarmac nonce (Jersey) Ld 9%* Crw Cap 
Bds 2008 (Reg £ 10 ( 10 ) - £S 8 i 2 
TalBBLyte totHn Pl_CVTata5Ljte PLC 6 %* 
T4LRFnGdBcte 3001 (Bf) W/WtsT5LPLC - 
£85% 

Tosco PLC 8 %H Bds 2OO3(B^Var40%Pd) - 
(93% 2 

Tosco PLC 10%% Bds 2002 (BrEVart- 

£101 JM 

Tesoo Capita] Ld 9* Crw Gqp Bds EOOGfftoe 
£1) - £115% .60 % .94 6 % .44 *277% 

3 Group PLC ll%% GW Bds 1908 (ft 
£1000510000) • £104 < (71S*94 
31 Intsmatloral BV 7%* Gtd Bds 2003 (Br £ 
Vu) - £87% ^18*94 

Tokyo Bectric Power Co he 7%M Nts 1988 
(Br £ Var) - £94% % 

Tokyo Electric Power Co tec 11* Nts 2001 
(ft £1000,10000 4 100000) - £10B%4 
TMtegu House RC 10%% Bds 2014 
(Br£1 000041 000001 - £100% 

Tung Ho Steel Entoprtse Corp 4* Bds 
2001 (BrSia 00 Q) - 8112% (188*94} 


U-Mng Marine Tmrspcxt Ccrporadon1%% ‘ 
90*2 91 


Bds 30Ol(Reg In ItUt SI 0001 - S90 _ 

Wdsh water mattes Ftaanoa PLC 7%N GW 
Bds 2014<ft£VW)P/P} - £7 A 
WaoMch BufcSng Soctety 7* Nts 1996 fk 
£ Var) • £98.15 

Abbey National Treasury Sana RCGtd FRN 
1999(BiSVBr4 - E99 l34 

d) SIBOOni Rtg Rte Nts 6/5/ 

Nestle Htedras tec S300m 35% Debt tote 4/ 
847-$100%(20Sa94 
Now Zaatand Cteky Bored Fta04Z.]LdMZ5Om 
S%% NIB 25/2/99 - STIXL0B4 
SwadenOOngdorn of) £800m 7%K Nta 3/1 Z/ 
97 - £98% 

9«red*n(Klngcton of) EZSOm 7% tnatniments 
23/12/98 - £91.79 (21SuS4 
Smden(Klngdixn at) £3S0m 7%% Bds 2877/ 
2000 -£91% It 


Corporation Stocks - Foreign 


DreadnnfQty at) 5*2* S8g Ln 1927(^)11 2Q - 
£88(185*94) 


Sterling Issues by Overseas 
Borrowers 


Bank at Greece 10%% Ln Stk 2010(Rag) - 
£95(203*94 

DvnsxklKhgtfcxn a/) 13* Ln Btk 2006 - 
eii4* 

Euapaxi tevestoient Bank 9% Ln Stk 2001 
(Red-CSa* 

Et x opean te Ma M wrt Bar* B» Ln Stk 2001 
(BrESOCQ) - £98% (21Se94 

European kwtewnt Bank 9%* Ln Stk 
2009 -El 01% (198*94 

European Investment Bank 10%* Ln Stk 
2004R*d - E1064B B2TS 

Ewopeon tova Wnwit Bank 11* Ln Stk 
SDQafftetJ - £109% (16SsB4 
■RntonKItepubfc of) 11%% Ln Stk 2009 petf 
-£113(203094 

Hyrko-Ouoboc 12.75% Ln Stk 3016 - £124% 


IceterdlFlapufiao of) 14%K Ln Sfk2018 - 
£138% (193*04 


tot n aBc na l Bank far Rec 5 0*v 9%% Ln 
Stk 20l0(Reg9 - £1028128 % 

In terna tional Bank lor Rec 5 Dor 113* Ln 
Stk 2003 - £113% H 08*94 
New Zealand 11%% 8tk 2006(Reg) - £113% 
.175(713*94 

Nova Soompimtoce ol) 11%* Ut Stk 2019 
• £117% (193*94 

Sv akteng^gdom ol) 9%W Ln S» 20l4ffted 

S»teden(Klrigdamafl 133* Ln Stk 
roiodted • £1204 


Listed Companies{exduding 
Investment Trusts) 


ABF Investments PLC S%% Urn Ln Stk 87/ 
2002 50p- 37 (203*94 
ABF toveebnenta RC 7%% Una Ln Stk 87/ 
2002 50p - 42 (20SrfW) 

ASH Capital Ftoance(JanMyHd 9%* Cnv 
Cap Bds 2006 (R*g UWta 100R - £74 
Abertean Trust RC A Wts to Sub ter Ort - 
SO (2iSeB4 

Abtnrer Attoa Freid Sha of NPVpotor Portto- 
Do) ■ 81351^ 

Aetna Maloydbn Growth RmdjCoyrnonfLd 
Ort SaOI - 513.4 13% 

AleMn Qroup PLC 825a (Neq Crw Can Red 
ftf idp ■ 45 (21S*»4 
Anted Danacq PLC ADR |l:l) • SB39 
(20Se94 

ABad Ckxnecq PLC 1 1 %*• Deb Stk 2009 - 
£118% (16S*94 

AOted OomeoQ PLC 5%% Un* Ln Stk - £52 
(218*94) 

ABed Damecq PLC 7%% Uns Ln Stk 93018 - 
£904 

AHedH-yons RnencU Santoea PLC8%% 
atdCiw3ubordBds200B RegMuUEiOOO - 
£108% fl 95*94 

American Brenda tec She of Com StK S3.12S 
■133.7821* 

Androwa Sytaaa ftoup PLC Orv Prl 60p - 
39% 40 2 (21S*94 

Antpan water PLC 5%* todeK-Urtred LnStk 
2008(83570%} • £131% % 

An g kf O mwn Ptentatlons RC W W ia aa to 
aub far Ort ■ 23 % 4 

Aada Property Mdgs PIC 10 5/18* tatMto 
Dab SOt 2011 - £99% (21S*9q 
Atmoocto PUB ADR (5.1) - 89^906* 
AtBwooda (Rnanca) NV 8*jp Gtd Red Ow ftf 
fip-90% 

AutorMBd Socurity(Mdgsj PLC 5K Cnv Cun 
Red Prt £1 -71 

Automated Secuttyptdgs) PLC BH Cnv Cum 
HadPrfCt -55 

/WtomotN* Products PLC 435% Cun 2nd 
Prf£1 -80 

Ante PLC 10%% Una Ln Stk 9098 - £103 
(20S*9*) 


BAT todustfles PLC ADR 0:1) ■ 512% 3 % 
BET PIC ADR (4:1) - S6%* 3* 48978* 


SM Group RC 4,ep (Net) Cnv Cum Had Prf 
20p-88 

BOC Group RC ADR (1:1) - $113 (163*94 


FT-SE ACTUARIES INDICES 


The FT-SE 100, FT-SE Mid 250 and FT-SE Actuaries 350 Indices and the 
FT-SE Actuaries Industry Baskets are calcirfated by Tie international 
Slock Exchange of the United Kingdom and RepiAfic of Ireland Limited. 
& The International Stock Exchange of the United Kingdom and Repubfic 
of Ireland Untried 1994. AO rights reserved. 

The FT-SE Actuaries Alt-Share index is calculated by The Financial 
Times Limited In conjunction with the Institute of Actuaries and the 
Faculty of Actuaries. © The Financial Times Limited 1994. All rights 
reserved. 

Tl* FT-SE 100. FT-SE Mid 250 and FT-SE Actuaries 350 indices, the 
_ffT-SE Actuaries Industry Baskets end the FT-SE Actuaries All-Share 
are members of the FT-SE Actuaries Share Indices series which 
in accordance with a standard set of ground rules 
d by The Financial Times Limited and London Stock Exchange 
^ffiifitaijiHtfi the Institute of Actuaries and the Faculty of Actusie®. 
r-Sr^LaFootste" are joint trade marks and service marks of the 
— Stock-Exchange and The F i na nci a l Times Limited. 



Bradford 8 Btogtey BUWngtategi 1^* 


9% 


SOJH (Global Ftan Find) - 81-338145* 

n (ti) • 


CSrtlon CammtxKaflons RCADR | 

$2537 6% 

Cariton Convn urtcgao na RC 7 %% Qw 
Subort Bds 2007pteg E500Q - £ 128 % 
Cshxplv Inc Sh* of Com Stk $1 - £343922 
564%% 5325 

Centex Corporator Sh* ol Con SUc $025 - 

524^1 g>tSe4>4} 

Chariwood ABanc* tfdgi Ld 7%% Uns Ln 
Stk60p-36(1BSaB4 
CbeBenhren 8 J ouc wW BtAd Soc 11%% 
Pann tot Bearing Shs £50000 - £110% 
{208a94 

Oaytrthe PLC 93* Si4ort Cm Uns In SHt 
200041- £96 (21Sa94 
C kweU nd Pteee Hokanga PLC 3%% tod Deb 
Stk - £35 (198*94 

Coats Patens PLC 4%* Uha Ln Stk 2002/07 

- £50 

Cores Pstons PLC 6%% Uns In Stk 200247 
-£78 

Coate WyWa PlC 43% Cum Prf £1 - 80 
Commer ci al Unfan PLC 8%% Cum trrt ftf 
£1 -98% % 7 {713*94 
Commercial Union PLC 8%K Cun tod ftf 
£1-104% 

Cooksan ftaup PLC 43* Cisn ftf £1 - 88 
(163*94 

Cooper Frederick) PLC 6^p(N«0 Crw Red 
Cum Pig PH IDp - 88 (213*94 
CoutaiMs PLC S* Cun 1st Prt £1 - 80 
P0Se94 

Cauteukte PLC 5%% Uns Ln Stk 9448 - 
£94% 

Gourtresds PLC 7%% Uns Ln Stk 200045 - 
£88 

C o ventry BiMng Soctety 12%% Penn Mer- 
est Beertog Sh* £1000 - £109% % 10 
OoMe Octal PLC 10%% Rsd ftf £1 - 102 
CropparUante* PLC 9% Uns Ln Stk 9449 - 
G9S(2tS«f>4 

Drty Man 6 Gortoral Thret RC Ort SOp - 
£13(218*94 

Daigrey RC 435% Cum Prf £1 -88 
D* Basra ConsdkteMd Mtoas Ld 8% Cum 
did Prf R1- 56 (168*94 
Oe La Rua PLC £45% Oum Prf 8tk £1 - 31 
(203*94 

Debwr hre ns PLC 7%% 2nd Dab 889146- 
C98(21S*94 

Debanhrera PLC 7%% Urn In Stk 200247 - 
£80 (20S*94 

Defte PLC 10%* Osb 80(95/99 - C101% 
(19S*64 

Dreriwnt PLC Ort 10p - 98 
B4AP PLC 6% Com ftf £1 - 53 C21Se94 
EdtoM Bands PLC Ort Sp - B% % 
e On MrtogSEwktradon Co PLC CW ICp - 
585(203*94, 

BBoiKBJ PLC 7%% Oab Stk 9045 - £99% 
(21S*B4 

BysCWkmdan)RCB%H Um LnStk 98/99 

- £100 (18S*94 

Entes* PLC B2Sp(Nte} Crw Cun Rod ftf Sp 

- 73% 4 6% (21S*S4 
Ericesxr(LM^fTete<onaknebotaeaQ8*r 

B4Hog)SK10 • G3433S $ 54 54% 3K403 3 
8%44%%3S5Ja^4%%88.1% 
35 7 7 % 8 j44 

Enw and Suffolk Water PLC S% Part Dab 
Stk - £S2 pi 8*94 

Erao Dreray 3£A SM FR5 fDepatetory 
Receipt ^ - 101 8 9 

Bra Dteney SO. Shs FR5 (ft) - FRS.7 % 
.78.79 3 33 3475 35 
Bvoturrwi PLC/BratuM SA Links 
(Skxwren na u kwrf) - FR2Z85 .7 91 
Ex-lsxte PLC Wterente w sub tar Shs - Z3% 
P1S*94 

ExeWburapup PIC 11^6 Cum Prf Ct -98 
ftplarauan CO PLC <M SR 5p - 270 
(215*94) 

Mean HokXngs PLC Ort 5p - 139 
FeUxstPue Deck & Rssway Co ftfUrite - 
£112 (16SsB4 

Rrtay(JwnB*)PLC 43% Curt let Prf atk £1 - 
58 pOSeSJ) 

FM Nsttenal BuUtog Society 11%% Pwm 
in Bsretog SM £10000 • £9735 9 
013*94 

Hnr National Homes Cop PLC 7% Cnv 
Cum Rsd Prf £1 • 133 O0SM4 
Fbcns PLC ADR W) - S7.CSB7S (21SeG4) 
Haora PLC 5% % Uns LnStk 200449- £71 
Rstetisr ChWencs Ld Ond SND30 - SN432 p 
102 

Ft*w Group RC Qd 5p - 4fj* 

Fans PLC 9 l 1% Un Ln 9R 850000 - £98 
Friandy Hants PIC 4%% Onr Cum Rsd Prf 
£1 - 78 8 POSeSfl 

Frtendy Hateb PIC 7% Cm Cum Rad ftf £1 
-81 

GW PIC ADR (Iri) - $9% (198094 
GN ftsat Nardc Ld Shs DK100 - T " 

G-T. Chls ftpwth Flted Id Ort $031 - BS»T 
Gerard AceUred RC 7%% Cum tod Prf £1 
-91%% 

General Aeddenl PLC 8%% CUn ted ftf £1 
-105% 

General Bectec Co PLC ADR (lrl) - S442 
OeSBtner rtdgs PLC CW Cac 25p - 152 
pOSaS4 

Gftte & Dancy PLC Grt lOp - 95 £0Sa94 
Gtao Group LcJ 7%M Un Ln Stk 85/85 SOp 
-48% (193*94 

Qymnd HrenWnral PLC 10%M Ura Ln Btk 
944e-£90P9S<94 

Grew MobopUBW PLC fl%% Cun Prf £1 - 
03 

Grow Portland Eonesa PLC 03% 1st Mfg 
Osb Stt 2016 -EBB% 

Great IMwxsal Stores PLC S%% Red Una 
LnStk- £53 

Grad Untvreaai Stores RC 6%% fed Uns 
Ln Stk - 080 pISaW) 


ftssraBs ftost RC 8% Cum Prf £1 >97 
0% (713*94 

fteenab Group PLC 1 1%* Deb S8c 2014 - 
ni6%{2is*94 

ftssnats Qmp PIC 9%% tod Una LnStk - 
£92(186*94 

Grserala ftot*} PLC 7* Ctw S^ort Bds 
2003 (Reg) -8108% 

Q*MM8 PLC ADR (KT) - $35% J 
GukvMHFBghl tod Add FUnd LJPtg Red 
PrfJOJn^it Btosnasd QewOi Pd) - $3731 
(186*94 

HSBC Hdra PLC Ort IH10 (Hong Kong 
Red - #H87.1 2 AT % % 3 -83BB8 
35S044 .7 % % .7Sim 3503 3S59Z3 8 
% 38344^36 314472 
HSBC mgs PLC 113B% GltoOrt Bds 2002 
Fad.£96108%%% 

HWtoxBdtfeg Soctety 8%N Farm tot Barev 
tog Sta £50000 -£83% (196*94 
HaBtax BuUng Soctety 12* Psrni tr* Bear- 
ing She £1 (Fig CSOOOC? - £112% 

FteMt HoUnpi PLC Old 3p - 88 
HUMoadUamw) ftoup PLC 5%* Cun Prf 
£1-S5{20S*04 

Kemtxos PLC Non Cl - 80 (198*94) 
Hamtxos EurobomfiMonoy Market Pd LtffNa 
Rsd ftf ip^dg Eurobond Rote) - *88334 
Hamtxos Euretendaifansy Mntat Fd LdPta 
Rsd ftf 1p(Hse«oer1 Rra$ - 6273X4 
Hrnmaraon PLC Old 2Sp - 318 9 S a 2 .18 
358 

Hredys & Hsneons PLC Old 5p - 261 
P19S84 

~ r Co Ort Stk -£1808 BOO 


Hartepootel 

Kreterete Sha of Com SOc $030 - 
pa ayvj . 

HBsdovm Wp RC ADRf kl) - $11.15 


i-24 

xt 


Ld 11%% Dab 


Perm tot Bearing Shs £10000 - 
(213*94 

Bradford 8 Stotfay ftddhg SodMylS* 

Rrem tot Bearing Shs OOOOO - ni9 % 20 
BramefTJAXHXHklga) PLC 5% Cun Prt £1 
-45 

Brant Mimatkxni RC 9% Cun Rsd ftf £1 
- 87% (168*94 

Brant Wdtar OWup RC Wte ta Sub for Ort 
-1* 

Brant Wdker Grow RC 83% 3rd NortOan 
Crw Rsd 2007/10 £1-2% 

Bridal PLC 10%H Dab BfcOi/BB- £100 
(21Se»4J 

Bristd Wtut RC 8%% Cun tod Prf ei - 
104% 5085*94 

Brtatal Water Rdgs RC Ort £1 - 985 
Maol Water Hdgs RC 8.75% Cum Cnv 
Rad Prt 1888 Shs £1 - 200 09SOB4 
Bristol & West BuSdng Soctety 13%% Pam 
tot Bearing 9a £1000 - £120% % 1 % % 
BrXsnrta BJdng Soctety 13% Pam tot 
Searing 9a £1000 - £116% 7% % 8 % 
BrttWi Akwws PIC ADR flOri) - £363 $ 

57% 35 % % -986 

Brttto Atam Atomfntan PIC 10%% Oab SOc 
2011 - £99 (18S*94) 

Brfluh-AnMricsn Tobacco Co Ld 6% Cum ftf 

Stk £1 -46(208*04) 

BriOsh-Amertcan Tobacco Co Ld 0% 2nd 
CUn Prt Stk £1 - 68 (208*94 
EbttHi Patroteun Co PLC 6% Cun 1st ftf £1 
-79^18*94 

Britteh Petrcfeum Co PLC 9% Cun 2nd ftf 
£1 - 88 £0S*94 

Brtteh SUd PLC ADR (Ukf) • $24% & % 36 

a% 

Brttteh Steel RC 11%% Dab Stk 2016 - 
£114% 

Brttteh Sugar RC 10%% Red Deb Sdc 2013 
-£ 110 % 

Breid RC 7* Cnv Uns Ln 88(95/97 -£104 
(21 3*94 

Bumtei CuM PLC 6% Cun 1st ftf SOt £1 
-«2P1S*94 

Buirah Csstrol PLC 7%H Cum Red Prf£f - 
87piS*94 

Buton Group PLC 8% Crw Uns Ln Stk 1996/ 
2001 - £04 4 5 

Bukxiwood Brewery RC 7% Cum ftf £1 - 
71 p0Sa84 

Butte Mntog PLC 10% (NeO Ctw CUn Rad 
ftf 1984 lOp - 3 (193*94 
CaBkxnia Energy Co toe 9» of Cun Stk 
SO307S-$16%4> 

Camtxldga Water Co Cara Ort Stk - £8475 
525(215*94 

Canad ia n Over* ftWc taduatr Ld Gam Npv - 
882% (IBSe04 

Caphal& Comtes PLC 11%% latMlaDeb 
Stk 2021 - £1124 P03«4 
Crated Skstegy Fmd Id Ptg Rad ftf 


£109% (219894 
Hurting PLC 43% Cun Prf Cl - 93 4 
IM PLC 5%% Uns Ln Stk 20(71/06 - £88 
18 HMhsi Fund M/Ort RI1I7T - 
$1837875 (20S*»4 

Iceland Group RC Ow Cun Rsd Prf 2(to - 
128 9 

■fnBwarttvMaofs Ld 8%% Cum ftf SBt £1 - 
46 (168*84 

■ngwarth Monte (Saflaira) Ld 7% Non-Cun 
ftf 60p - 17 (21S*94 
hch Kamren Kapng Rubber RC lOp - 

£15% (213*94 

toduasiel ConM Senrioaa Grp PlCOrd lOp - 
140 2 3 

met Lite plc Ort «n.io - 134 130 p i» 4 
Jantete uathsson ffdga Ld Ort $038 (Hong 
Kong Ratfsteri - SHB437 .79 &017422 % 
.435805 326684 83001 
Jarttos StrabBfdo Hkkp Ld Ort $036 . 

Kong fegtataO - SH3033 1.17028 367- 
2.17678 

Johnson & Rnh Brown PLC 1135% Con Prf 
£1 -96 (209*94 

Jolnsan Group Ctauiera PLC 73p (Nat) Cnv 
Cum Red Prf lOp - 135 (203*94 
JehnsoAMMthey PLC 8% Cnv Cum Prf £1 - 
920 pi 3*94 

Johnston Soup PLC 10% Cum ftf £1 - 90 
(188*04 

Jonss3naud(Hldgs) PLC 10% Cum Prf El - 
125(20S*94 

Ketesy tndusktes PLC 11%% Cun ftf £1 - 
107 

Itera n -Cirape fend Ld Shs(PH to Br) $0.10 
(Cpn 7) - $4582% 

Kvmmer A3. Free A She NK1230 - NK298% 
1218*94 

Lsdbndu Group RC ADR (Irf) • $23 2% 
(218*94 

Land Securttes PLC 9* Id Mfc DM) SUc 90/ 
2001 - £100(208*4 

Lsbowa Rafinum ktnas Ld Ort REL01 -607 
(186*94 

Lasds&HoteackBufklng Soctety 13%% 
Farm tot Beartog Shs £1000 - £119% 20% 
% 

Loads P ermanen t Btddtog Soctety 13%% 
Pwm tot Bearing ESOOOO - £127 
Lei«fa(JBfu9Patoad4j PLC 5% Oum Prf Stk 
£1-589 

Lewte(Jo»i4Patoarahto PLC 7%H Cun ftf 
Stk Cl -77 

LfeahW PLC 33% Cun ftf £1 - 48 (188*84 
London International Group PLC ADR |5rt) - 
$7% 

London Soaxttes PLC Ort Ip - 2% 

Ltxrho PLC ADR (Id) - £13801$ 

Uxdram PLC 8% CM Cum Rad ftf £1 - 123 
(21SS04 

Low(Wm) 4 Co PLC 8J5* Cun Crw fed Prf 
Cl -172(185*94 

MEPC PLC 10%% ire Mg Deb Stk 2024- 
£11036 

MEPC PLC 8% Uns Ln S0i 200045 - £98 
90% 6208*94 

McCarthy & 8tone PLC 8.75% Cum RW Prf 
2003 £1 -85% 

McCarthy 4 8toia RG 7% Cm Una Ui Stk 
99104 - £88 008*84 

Mctnamsy ftopwde e PLC *A* Ort KD1.10 - 
1E03S5 (20S*B4 

Mrextarto Ortmtel MunaMond Ld OM $036 
(Hone Kong Rag) - $HB3880B4 10.177389 
3196 

Marks 4 Spencer PLC ADR Rrt) - $38% 
(218*94 

Medeva PLC ADR (4d) - $S% 9 01SM4 
Marchart Rreal Group RC 8%% Ow ttes 
LnSBt 99AM- £84(188*94 
Mercuy totemadoral tovTriW Ld Pta Rad 
ftf ip (ResarveFUrt)- £493334 003*94 
Massy Docks 4 Hstxu Co 6%% Rsd Deb 
Stk 98/99 - £89 C71S094 
Miragira Cuppa Ifess Id Ord SOt $Z1 - 3 
(19S*94 

Md-SouBam Water PLC 8% ferp Dre> 88c - 
£84 (183*94 

Mare OTterW PIC 10% 2nd Cun ftf £1 - 
118 01SaB4 

Maud Chsriatte tovostmente RC 10%% ire 
Mtg Osb Stk 2014 -£so$ 

NFC PIC 7%% Crw Bds 2007gneg) - £90 % 
NreiorW MedkM Btsiprisss too Shs of Can 
Stk $005 -817% 

NsBante Powa PIC ADR (Htt) - $74.19 
NBBanre wastotetetar Bar* PLC 9% Non- 
Cun sag Prf S« ‘A* £1 - 103% 

Manorial Westmtater Barft PIC 12%% 

Subort Itoa LnStk 2004 -Cl 13% (206*94 


fetosay Co Perp 4% Cora 
td by C.PJ-E39 (198*94 


OafaSd^ntQtdl 
Newcaatte BuMng Social 1£%% Pom ' 
Merest Beartog Shs £1000 - £113%* 
Neway Ld 5% CUn FM £1 - 82% 3 

(198*94 

ftews totemaltanal PLC 8% told Cum FM £1 
-74(183*94 


North of England Bufeteig Soctety 12SM 
— * »%%S% 


Pom W Boaitog (£1000) - £ 114 1 

t Investments Ld R 0.10 - £0.12 


(10MM) 

Northern Fooda PLC 6%% Cnv Subort Bda 
2008 (Rag) - £87% 

Northun Fooda PLC S%% Cnv Sitoort Bds 
2008 (Br £ VSr) - £87 (196*04 
PacMo Ora 4 Bectric Co 8ha of Cun Sdt 85 
-$223 

Paridrert Group PIC Ort 25p - 182 B 

Paaarecn Zochonl* PLC 10% Cum Prf £1 - 
116 

Pal Hdp»RC9%% ire Mlg Deb Stk 2011 
- £97% (166*94 

Paret4dgaPLC53S%84aQCnvCunNan- 
Vtg Prf £1 - 103 pi 6*94 
P«*nUv4 Qrfentre Steam Nav Co 5% Cun 
PM Stk -£48(1 88*94 
Pertew FOod* PLC 8p(Ne$ Cun Cnv Rad FM 
TOP -889 

P*tra6ra SA Ort 6ha NPV (Br In Drerom 1 3 
4 10) - £195* BF9965* 

RBarts PLC 9%% Cum FM £1 - 85 7 
Plentrelon • General ton PIC WStrarts to 
aub tar Ort -2 (1BS*94) 

Ptantaltan 4 Germl tov* PIC 9%% Cum 
Red Prt £1 - 90 (188*04) 

Plantebrook Group RC 0.7B% Ow Prf 91/ 
2001 10p- 113% 

Parttes Group PLC 6% Cun IM £1 - 06 
tM8 *9 4 

Pcrtamauth&Sundertand Newaps- 
peraPLC113% 2nd Cun Prf £1 - 127 
(20Se94 

P otgtet w u uat Pledraxna Ld OtS R0325 - E6S 

ftrooOenRCADR (ion) - $89% (198a04 
Premia Health (teaup RC Ort ip - 2A % 
OraioCrouptoe _a75fj(NeO CrwCunRadSha 
of PM Stk 80.10 - 145 p S€*B4 
Qjafasc Carreaf Mwsy Co ire mu Dab 
SttriGad by CPJ - £38 (I96e94 

RPH Ld 4%% Uns Ln Stk 2004/09 - £68 


RPH Ld 8% Ura Ln Stk 90/2004 - (S3 4% 


FTTZ Corporation PLC 4325% CUirftf 
£1 -60(20Sa04 

RTZ Corporation PLC 13% -B* Cum Prf 
EMRBtf-52 

Racal BeeMnlcs PLC ADR (fcl) - $73 
Rank Organteattan PIC ADR 0*1) - £1237 
R agdtt 4 Ccbnra PLC 8% Cun ftf £1 -53 
(2l9a94 

^ topg" 0 " PLC (Fn4y 6%%) 

CUn rtf vl - 62f 

Rato* Corporation PLC <1328% 0=rt*y 5%%) 
Cun 2nd Prf £ 1 -54(1 CSeW) 

Ropna RC ii%% Cun Prf Cl - 1T7 
rim*) Btato a< Scotland Qpup RC 11% 
Cum Prf £1 - 110 ( 218*94 
Rubicon Bpup PLC 8% Cum Prf SOp - 30 
RUBW Group PLC 8% Ura Ln SK B3/9B - 
£B8%4 

8CEeeip Shs cf Com 80t of NPV - $ 12 % 
SaatcH 4 SaqtcN Co PU2 ADR (tl) - $7%A 

SasteM 4 $as«M Co RC 8K Cnv Unn Ln 
Stk 2015 - £73 (155*94 
Srattou*: Hdgs PLC 73Sp (Ne« Ciw Cun 
_ W ftfSOp - K 

SUBMidre^B) 4 Son Ld 8% Cun Fted 
Prf(2000 or reteOEl -53(188494 
Scholl RC 5%K OwCup fed Prf 2008/11 
Cl -84 5 (2l8e84 

Sdaodan PLC 8%% Itos Ln Bh 97/2002 - 
£32(218*94 

Socoten 4 Nswcsad* PLC 43% Cun ftf £1 

-67 

seertteh 4 Neweareto PLC 7% Ow Cun ftf 
£1 - 228 

Sotos PLC 425% (Rmljr 7%%) Cum ftf £1 - 

70(20Sa94 

Sscutaa Btbsi PLC 436% Cun Pro Prf £1 
-£200 

Smwii Rva Craning PLC 8% toduwLMcad 
Deb Stk 2012 (8344%) - £114% (208*84 


Siau TframpartShreteigOo PLC 5%% 1 st 
Pri(Cun$£l - 80 

Shopdte Ftnncs (UIO RC 7375p(Net) Cbm 
Red Prf STre 2009 - 38 44 
9hds* (ViManB PLC 53ZB% Cm Cun Rad 
Prf £1 • 96 (18Be94 


SkSpton Bufldhg Soctety 12%% Perm tot 
Beartog Shs £1000 - £116% 1 


I *2 8% 

antm Nsw Court PLC 12% Si*ort Ura Ln 
Stk 2001 - Ci«% (198*94 

anhtiKEn* Beadran PLC «R (5.1) -S333S 
(138*94 

MVMns Baedna PLC^mbhHSn* ADR 
(5:1) - $30% .48898 396983 

Smkha todusbtes RC 11%% Deb BBc 93/ 
2000 -8102 (215*84 

SotAi StataMIre Wstu HWgs PLC9% Red 
Plf 19960)00 SI - 110 (218a94 

Stag Fwnftv* rtdga PLC 71K Com Prf £1 - 
95 8(218*94 

Standard ChtetMd PLC 12%% Subort Ura 
LnSk 2002/07 -£113% 

Symonds En^naotog PIC Ort Ep - 32 3% 4 


Wflfemc Hdga RC 10%H Cun Prf £1 - 118 
(209*94 

WEte Copoon Group RC ADR (M) -$11% 
11 % 

wooteortma Group PLC 7%» Cun FMfifc 
£1-56 

Wradrem 4 Ent Denb Wter Co 43% RP9 
Ort ftk- C7300 (21 Soft*} 

Xerra Cup Com Stk $1 - $101% 

Vufc Wstanaorts PLC <M 10p - 300 
SI 5*84) 

Yoritahtot-Tyno Toes TV Rdgs PLC WU to 
sob br Ort -225 6 

Zarrdxa CorooWated Cappa Mm Ld*B* 
QrtK10-2D0(2lSe94 


TR Qmreter CompraiW M> 10 * 2 * 

Deb Stk 2018- £106% (20BsB4 
Ihrogmartan Dust PLC 12 SrtB% DebSW 

»10- £117 8(188*94 

Updawn towsabrant Co PIG CW Mp-STI 

ire Property tewarnmnc Tat PLCWte to 

far Old-36 


Wtomorel 
Sib far 


Investment Trusts 


1 Group too Sha of Corn 86c 


TSB Gtt Fund Ld Pig Red ftf IpOasX'A* 
Ptg Red Prf) -88.17 

TSB OK Fttod Ld Rg Rad ftf lp(Oas5 *B* 
Ptg Rad Prf) - 97.11 

136 Grap PLG 10H% Subort Ln 90(2008 

• dost 

TSB Offshore tov Rind Ld Ptg Rod Prf 
IpCuopasn Ctasai - 195A^ 

TSB Oftehore tov F=urt Ld Pig Rad Prf 
ippan Amaicra Cten) - 49UM* 8839$ 
TSB Oftehore tov Fund Ld Ptg fed ftf 1p(UK 
Equfy Cten) - 3TI33 £03*94 
Tats 4 Lyte PLC ADR (4.1) - 5273 
Ttes 4 lyto PLC B%%(435% etna tret cred- 
IQCun ftf £1 -88 9%(1BS*94 
Tate 4 Lyta PLC 8% Ura Ln Stk 20034)8 • 
£85% 093*94 

Tasco RC ADR (lrl) - $33 6HSa94) 

Taaoo PLC 4% Ura Deep Otec Ln BU 2008 - 
£81 (213*94) 

Ihrtand toteroatianre Fund Ld Pn Sh* $031 
(DTI to BO - $34 33960 34000 (213*94) 
THOM Srif PLC ADR (id) - $16% (185*94 
Tooot Group PLC 4%% Pam Dab Stk - £47 
Itatalgu House PLC 8% Ura Ln Stk 94/99 - 
£88(t88e94 

TtaWgu House PLC 9%% Uns In 8tk 20CXV 
06 - £91 (21S*94 

Tirtrtga Hooas RC 10%% Una Ln Stk 
2001/06- ES* 

TrerasasnOc Hddtoga PLC 8 6% Cm Prf £1 
-90% 

Ttsnaporf Da ro lopm t a * Group PLC 4.7% 

Cum Prf £1 -S3(21S*94 
UNbank 8candto*don Fund Ld Ptg Red Prf 

ip -mea am^s (2ise94 

Urtgata RC ADR (1-.1) - SS.T2 5% ( 186*04 
UHgate PLC 5% Uris Ln Stk 91/96 - £22 
(I63e94 

Urdgate PLC B%% Una Ln Stk 91/96 - £94% 
(2iS*94 

LMteirer PLC M3R (4.1) - $B834 
Unisys Carp Cam Stk SOOI - $1035$ 

VMus 4 tocoms That RC Warr an to 89/94 to 
sub tar Ort - 48 (I8 Ss 94 
Vaux Ooup PLC 9375% DM) 90(2015 - 
£100 (168*94) 

VUkem PLC 5% Cun(Ta» Free To SOpIRrf 
Stk £1 -88(208*94 


ABracs Trust PLC$% ftf sat - £50 (20SO94 

Ba«a GHtart Jaran Tiure PIC wta to Sub 
OrdSha- 107% 8 (218*94 
BA Gtfbrd a*i Nippon PLC Ort lOp - 
181 2 % 3 3 

BaKe Gfflert Shh Mppon PLC Wretarta W 
aub te Ort -122 (21 3*34 
Baro ram asd ImsatotanttTruafPLC WS63 
site far Ort -38 7 (106*94 
BrtJahBnpk* Sac 4 General Hure 10%% 
Deb 8tk 2011- £105% 6% (188*94 
Bribah kwestotant Trust PLC 11 . 126% 
Sacuad Oab Stk 2012- £113% (218*84 
CSphre Goartog Truet PLC Crt ZSp -480 


USM Appendix 

BLP &u» PLG 8p (N«) Crw Cum Rirt Prf 

Itb- 859% 90 (21Se94 
Beckenhcrn Groigt RC wtsaostte brOrt - 
1 (193qM 

Dakota Owp PLC Old M025 - K0.1T 

Brio* PLC Ort 10p- 380 
Gtebe Mere PLC Old 35P-42B 30 
Mdtend 4 Seateah RarexiGH PLG CM lOp - 
2% (21SaB4 

fiefla* Group PLC Ort am05-IKL29 
(188694) 

Sterthfl Pitateteng a»4> PLC 6% Cnv Cun 
Rad Prf 2000 £1 - 120 4 (186e94 
United Enow PIC Wfc to ub tor Ort - $ 
£18*04) 


u« q hrtBQiuUlW«- ttBP1M41 

[^^aWLCOniBp-^/ ' 

ucyds h8 Manay Mariret Furt SMlWfl * f- 

U^^Bductory Huai ftC Ort Ip - 

mJSSw a* Fpodtai CM» PLC CM ei - 
£13 P0S«94 _ 

Marta* 4 M*ma«*S*cufBea PLC Ord 
"^so.ei^spostriw 

Moah lii l wn sb n r u lOottpWgCMIp- 

Aid rtdge PLC CM 100 ■ 


Ru1e4v2(a) 


Ctomrate Koras Em^ng Growth RndEfcs 


$10 (Reg Lug- . . 

Drayton Gigtah 4 tr* Trust PLC 10%% Dab 
Stk 2014 - £106% (20Se94 
ainbugh tearenst That PLC 11 %% Deb 

Stk 2014 - £1064 

Ftosbuy ftoid te r Co*a irtat RC Zero ON FM 
250-181 

Renting Fa featem few Trust PLC 5% Cum 
Prf Cl -49(t99e94) 

Feragn & Color** Euobust PLC 6%% Cnv 
Una LnStk 1006 - £370 
Gartroora tengh Inc 4 Grfh Tat PLCZera Divi- 
dend Prt lOp - 101% 

Gartmara Shared BguBy Trust PLC G a m sd 
Ort toe lOp - 106 

Gartmara States kwartrmnta PLC 1234% 

OW SR 1985 - £101% (198*94 
H1R Japraase Smrta Oo*e Trust PLCOnl 
2Sp - $138 p 107 7 8 
tovsrfnti Cranal Hit RC 7%% Dab Stk 
62/97 - £94(195*94 

JF RadgaBng Japan Ld Wanrants to sub tor 
Ort - J 


AMCC Cup toe Old lOp - easst (1«Sa94 
Adnraw 4 09 PLC *B* Ort £1 - G3i 
(Z08a94 

Advsncsd Med* Systems F*LC Ort £1 - 
£135(208084 

Al Errand Lawi Trento Qwnd Ld Deb 98/ 
2000 £2000CE4SG0Pd-lSa/BS - £8500* 
tan Sheet B r e wery Co Ld Ort £1 - £3.7 3.05 


Araaral (tootal Club PLC Old £1 • S475 
(193*94 

feoot Mdgs PLC W Rat* Cnv Cum RW Plf 
10p - £0344821 (208*94 
Azure Goup PLC Ort 1 0p -£0344 
Bawdsys kmasfmrat I 


ntFUrdfCJJt 

j Raid - £037834 

Bardsym tnvsatmant FUndfCL) Starikai Bd Fd 


- £0.4036 £09eS4) 

Bot Court Fund MoiagrenaM PLC OW lOp - 
£133 (188*94 

Bison todrabW Group PLC Ordlp - £0.1 
Branoote HotdRgs PLC Ort flp - £a*9 0^49 
(213*94 

Cavsntam PLC Ort Ip - £0.11 
Came Footort 4 Athtedo Co Ld Ort £1 - 
£ 86 % 

Coutoy Gartens RC Ort 25p - £058 
Dret VSPay UgM Rrtaav Ld Ort £1 - £235 


Lured Select Investment Trust Ld Re Red 
I - £1337 1339 


BW PLC 73% (NR) Ow Cun Rsd ftf 


Vodslm Group PLC ADfiflO;!) - £1435 

~ % 30 30 .1 % 


1B9704 S 28374 9% 34 % ‘ 

.15 A2 .496983 323979 

WEW Group PLC 10%% Cum Rad ftf 90/ 
2002 £1 -98(203*94 

W s dd to gtanfJohrt PLC 53% Cum Prf £1 - 
80 

WUtreUOJ 4 Co PLC Ort 2Sp - 315 
(19Ss»4 

WreksrfthamsR PLC Ord Sp - 30% (19Ss94 

Warburg (S.G.) Group PLC 7%% Cun ftf £1 
-89 

Waflcome PLC ADR fin) - $10% % 

totals Prego 4 Compray She of Cun Sdt $5 - 
$133359644(185*94 

WUnttey PLC 6p0taQCrw Cun Rad FM 1999 
E1-60POS«94 

WNtbread PLC 7%% Ura Ln Stk 95rtB - £90 
P0S*B4) 

W tre b fd PLC 7%% Ura Ln Stk 9&2000 - 
£92 (20S*94 

Vfitteay RC 47BN Cnv Cum Ftad 2nd FM 
2000 £1 - 92 |21SaB4 


FM aip Global Aottae Find ■ 

(tes*94 

Uatart Select tov a atmert Ttud Ld Pig Rad 
ftf aip U.K. Active Raid - £1438 14.1 
(i8Se94 

Lszart Sated tovaatmont Trust Ld Ptg RW 
Prf 0.1p UJC UqUd Aasate Fund • £10 
(188*114 

Lazart Select Investment Trust Ld Pig fled 
ftt Hip UC-todan Fund -£1838 18.1 
(163*94 

Lazart Gated kwastmam TYust Id PM Red 
ftf Hip EUop* todex Fund - £1739 17.11 
(lesaSM) 

London 4 St Lawrenc* tovsatrrard PLCOrd 
5p - 155 

Marta tovsaamnt Trust PLC 11% Osb Stk 
2012- £112% (183*94 

Marosn fe sntaMJtWbwOalto Id PLCWte to 


aub tar Od- 61 37%22 
Nuthem Must ImpravTnW PLC Ord £1 - 
515 

Partes French tovastmard That PLCSers 
*B* toEarads to site tar Ort - 20$ 
Schroda Korea Find RC Ort 5001 (Br) - 
$17£0S«94 

Scotodi Eastern tov Trust PLC 9%% Deb Stk 
2020 - £101% PlSe94 
Scrttteh Narianre Trod RC 10% Ora SR 
2011 - £101% PISaW) 

C sc uritt s i Truatof Sc cfla nd PLC 4%% Cun 
Prf Stk- £45(1 8S*S4 
Stares H^t-YteUtog Sndr Co'S TMWts to 
Bub «br Ord - 72 f£ISs94 

Sphere tovaatoxrt Dust PLC Rsvtasd Wa- 
rams to sub far Ort - 6 (21Ss94 
TR City of London That PLC 10%% Osb Stk 
2020- £105 (206*94 


_. _13 (1655*94) 

EncPWt Chuebss Housing Oram Ld 2%% 

In BR - Cl 2 QO&*94) 

Evsrnn Foottrofi CteSoa Ld Old SOt £1 - 
£2SOO(21Sa94 

Fmccaat Broadcast Corp uf Uon F^LC Ort Sp - 
cn «x 

Fo m ta ca n t nw matta nre Qrot$> PLC Od ip - 
£046 £16*94) 

F U tang Homes Group PLC Ort 1($> - £133 
(20S*94 

QsndaHaklngB PLC Ordlp -DUMB 
GcWen Rose Oomrudcreiam RC OW Ip - 
£137(188*94 

AppcMmonte RC Ord Ip - £0.18 
(198*94 

Qrsmpira Teteutdan PLC Ord Up - £1% 
(18554 

Groucho Club London PLC Ort IQp • £0% 
(218*94 

Guernsey Gas Light Co Ld Ord lOp - £037$ 
Henry Cooks Grotp PLC Ort lOp - £034873 
OSB (213*94 

Mydes’Anvf Brewery Id -S' Ort £1 - £80 
Hyde Hotel Eartbowne RC Ort £1 - BAA 
(208SB4 

ITS Group PIC Ort £1 - £03028* 

Jsratogs Bros Ld Ond 25p - £13 (203*94 
Just Group PLC Ord Ip - £034 
Nstowut BeraonCnO ftnd Man 1 
Maksts FUnd - £1933778$ ) 
lOetovrort BwnonOrt) Fund Mon tot too IMts 
Bond Fd - £8357 

KMnwort BraaonM FUid Man KB GR FUM 
-£133(193*94 

KWnanxt Bena o nOnt) Fund Man tot EquBy 
Gwth toe - C2J239 2388287^ 

Lan ca shtoe Ditetprlaw PLC OW Sp - £135 
(198*84 


Or^A^l RC Ort fip ■ £0.42 0.44 0.45 
048 0% 051 , . . 

Pacific Meda PIC Od ip - 2% % % % 

Psn Andean Rarewcra PLC Ort Ip - 

03475 005 p 9Sa84> 

F^panWUereay) OlW»ro entagtog Co% 

$634714 (2lSa04 

IVviilVuat kl Hill Off |Hl I ■ rr-.^in 1 ■ 

PrateHtenre Ertepda* awn RC <M £1 - 

rS«f2b 1 dub Pic Ort 1 0ft - owe 
S«laet Mratriaa PLG Nat* Ort 7%p (5p Pd) 
-E033SC1SaB4 _ 

BtMpnred Usui is Id *A" Od Cl - £8% 
eistf4 

Saudi (been Hldgs PLC Ort Ip - 0X01 

(71Sd94) 

Saudrom Nrarspapera PLC Ord £1 - £«C1 
Sin 08 Briteto Ld Ol Aoyaiv Stk Unite Ip - 

£078 (218*94 _ , 

Sutton Hartow Hdga Ld Ort 25p - £13 

MRC*Q|\ 

ThwaFt*«(Donte64 C* PLC Old 2Sp - £235 

■nbSurRC Ort 5p - £036 (20Se94 
Tracker Network PLC Ort Cl - £10 
UAPT-taWtak PLC Ort 26p - E83S 
United AueHons pendant* Ld CM £1 - £3 
(193*94 

UnBed Bus in— Gratn RC Ort £1 - £938 
(21Se94 

Vteta Enurteinmente PLC Ort 9p - £0313 

Wteburg Asset Managamert Jersey Mercuy 
tod oSold & Genent R1 - S1.9S (2iS*B4 
Weddwbun Socrates PLC Ort 5p • EH 135 

Weddrebun Socutdse RC wts to rab tor 

Out -DUM (208*94 

Waecnbb c Ld *A‘ Non.V Ort 2fip - £173 18 

Wentworth totamaUonal Group PLC <M ip - 
£031$ 

V U htt ch uch Group PLC Ort 10p - £032 ^ 

(19Se94 **■ 

Wtodwata MUH Media PLC Ort Sp ■ £068 
C1S*04 

Wynradsy Propenios RC 2Sp - £ 1 % 

(19Se94 


RULE 2.1 (a)(v) 

Bargains martcad In socurfttos (not 
fusing within Rule 2.1 Mffl ) wtwra 
ttw pridpal market la outskto the 
UK and RapubDc of Ireland . 


Arat Foundatton tov AS2.003 
Cape Rang* 08 A8036 (19.9) 

City Davetopmante S87.148 (1&R 
D—ppan Screen V780L97 
Hysan DavWapnwnt WS62.71 

Mto Mrewteoaa (tad) 

Leighton HUgs. A$238 
NteJond Becbartcs 635 (163) 
Nretamf Fuel Gas Co. $3075 
NonhFMare Mtoas ASB31 (193) 
08 Sarah 403 (213) 

PWabora IMng FL733 (203) 
Pteyrratoa Hdga. *03315 
Regal Hotels HKS2.14H21 
Stogspare Laid SS831B (213) 
Storer Oomm urias Uara 3Kr*2l3 
WtafnRs Mining A9Q.18104 



1 of Ms Stock GBdUnpa Csancl 



| Recent free market reforms and a burgeoning 



1 internal market are offering increasingly profitable 
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FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


17 


MARKET REPORT 


LONDON STOCK EXCHANGE 


Firmer trend at the close of a nervous week 


FT-SE-A Air-Share Index 

1.675 --- 

1,660 


Equity Sliares Traded 

Turnover by volume (m/Uon). BtcJuamg; 
Wre-mate* budness and ovaraaaa turnover 
1,000 — — 


By Taffy Byland, 

UK Stock Market Etfitor 

The UK stock market ended a 
difficult week on a slightly steadier 
note with the help of an Improve- 
ment in the stock index futures and 
oonri^ sectors. But trading volume 
remained unimpressive and nerves 
were taut ahead of next Tuesday’s 
meeting of the Federal Open Market 
Committee which is expected to 
review US interest rates. 

In early trade, the FT-SE 100 
Index plunged by 22 points to 2,999.3 
and dealers looked distinctly ner- 
vous at this loss of the psychologi- 
cally important 3,000 mark. Equity 
chartists see the next support levels 
in the FT-SE 2£70 area if the mar- 
ket continues to slide. 

However, a good recovery was 
made and the FT-SE 100 Index 


TRADING VOLUME 


■ Major Stocks Yesterday 

Voi Ckataa Day's 
nice Bam, 


closed at 3.Q2&2 for a net gain of 7 
points, having touched 3,035.8 at the 
day's best 

The Footsie has fallen by just 
over l per cent this week as interest 
rate concern has focused on the 
Bundesbank and the US Federal 
Reserve and also on trading state- 
ments from leading British compa- 
nies. 

Nervousness over the outlook for 
UK company profits forecasts 
heightened yesterday after reports 
that shares in Hanson had been 
downgraded by the company's own 
stockbroker. There were heavy falls 
among food retailers after analy sts 
ma rked the sector a sell on fears 
prompted by the latest evidence 
that the price war is reviving in 
markets already faced by severe 
price competition and tighter profit 
margins. 


Kleinwort Benson Securities this 
week became the first UK securities 
house to sharply reduce its fore- 
casts for UK corporate profits for 
this year and next while BZW 
warned yesterday that faith in 
strong earnings growth “might be 
misplaced”. 

The FT-SE Mid 2S0 Index, with a 
range extending to second line 
issues, steadied yesterday, closing 
L2 firmer at SL560.9. But traders said 
there was little substance 
the equity rally. Seaq volume of 
547.7m shares was little changed 
from Thursday. 

Bond prices, uneasy at first, 
moved ahead in the wake of 
regional cost of living data from 
Germany indicating that inflation 
pressures were more subdued last 
month. However, UK bonds 
remained cautious ahead of next 


week’s auction of British govern- 
ment securities. With US bonds 
uncertain in early trading, London 
gilts finished below the best 

Long-dated gilts closed around & 
better on the day but the shorts 
were only a touch above overnight 
quotations. Sentiment was also 
helped by comments from the Gov- 
ernor of the Bank of England that it 
may be some time before the effects 
of the latest base rate hike are 
known; the market took this as 
favourable for near-term rate pros- 
pects. 

Statistics on second quarter gross 
domestic product and balance of 
payments bad little fasting im part 
on either gilts or equities, and there 
was little immediate reaction to the 
latest survey of monthly business 
trends by members of the Confeder- 
ation of British Industries. 


The improvement in the stock 
market was largely a matter of 
recoveries in sectors badly hit ear- 
lier in the week by Interest rate 
worries. Banks, stores and construc- 
tion companies were all better on 
this account, with the builders addi- 
tionally boosted by the strong 
response to excellent half-time fig- 
ures from RMC in the previous ses- 
sion. 

But many of the heavyweight 
blue chips, including the oils and 
pharmaceuticals, lacked supporters 
and the market closed on a cautious 
note ahead of the equity final trad- 
ing week of the third quarter of the 
year. The FT-SE Index has fallen by 
nearly 8 per cent since the end of 
last month and traders noted that 
retail, or genuine investment activ- 
ity In equities has remained high 
throughout the period. 



Sauer FT GopNtft 


tag 

ISM 



■ Key Indicators 
bnflees and ratios 

FT-SE Mid 250 3560.9 -1.2 

FT-SE-A 350 1528.7 +2.6 

FT-SE-A All-Share 1519.58 +2.23 

FT-SE-A All-Share yield 3J95 (3.96) 

FT Ordinary Index 2347.2 +7.0 

FT-SE-A Non Fins p/e 18.66 (18.66) 

FT-SE 100 Fut Dec 3043.0 +12.0 

10 yr G» yield 8.96 (9.01) 

Long g St/equity ytd ratio: 2J>7 (2-27) 


FT-SE 100 Index 

Closing index for Sep 23 3028.2 

Change over week — -..-36.9 

Sep 22 -.3021.2 

Sep 21 3014.8 


EQUITY FUTURES AND OPTIONS TRADING 


3ft 

ASDAGraupt 

AHMyNMtmrtf' 
NbWIRtfwr 
Aliod Dome cq f 


VdL Ctosftw Dart 
OOP* nrtoa chain 


Argyl Qroopt 

AlowiQBlrot 

fimoac. Brtt Foadaf 

Amo. EHl Perm 

BflAt 

BAT Mo.t 

BET 

BCC 

BOCt 

BPt 

BPBInds. 

BTt 

BT pVPafcQ 
BTRt 

Bark of SocMandf 

KF* 

BhnChkT 
Bookar 
Boo«t 


BrtL Aaroopacat 
EHbh Ararat 
BfUahQost 

BritMi Land 

BrtfohSMt 

Bme 

Bramah Canrott 
Burton 

Cafato ft tMraf 
CMbwy Schanppaat 
Candonf 
Cation Comma, t 
Corns Vl)m*i 

Conan. IMorrt 

Cookson 

GouttiMat 


Da La Rust 
Dons 

Eastern BecLf 
East Mkfiand SacL 
EngCNnaCbya 
Ei inn |> bo OSt 
EixuOnnd Unto 
FM 



HSBC (750 elHjt 
Hanraman 
Homan f 

Hansons CnwMfcf 
Men 

HOMkmt 

M 

Cft 


S54 

17.000 

338 

B1*2 

-1*1 

Umfio 

Lucas 

838 

134 


OSS 


+2 

MEPCt 



440 




MF1 





+7 

Maiwiti 






10 

Marta & Spencarf 




1/90 


-0 

Uhtondi Bed. 




TAM 

208 

-9 

MoRtaorl tWrnJ 

1600 






MFC 

2600 



ro 


-10 

NatWeot Bnnkt 

4600 



34/ 


-4 

HXkmeJ Pu+tyf 

1600 

406 

-7 




Mom 

1600 

241*2 

+1*1 




North Wtol OTWraf 






Morthttn Sect 

416 





15 

ronnoin rtxxBT 

1600 

185 









8,100 

308 

-4 

rMoOfir 

1600 

607 

+12 




p*ot 




SJM0 

7,000 

232*z 

313 

+**2 

+4 

+7 

PftOngion 

PowwOant 

MideraMt 

3600 

494 

cun 

1 as 

S2S 

305 

-0*2 

-a 

1^00 

205*i 

i3»j 

RMCf 

189 



*300 

5SO 

+5 

mzt 


989 




+1 

Rood 

213 



iron 

1,000 

278 

423 

528 

-6 

-O 

+5 

RacMoToDOnont 

Radtandt 

2.100 

m 

1.100 

413 

5B8 

613 

+12 

+1f 

2400 

473 

-a 

Read tatL t 

1600 

73S 

+7 

1300 

1200 

485 

373 

12 

+7 


BOO 

231*2 

-*2 

10300 

OK 

13300 

209*3 

380 

184*,, 

-7*2 

♦12 

+7 

Rcto Rmcet 

Ryl Bk Scotondf 
Royal kMuranc«T 

1600 

1600 

1600 

177 

413 

273 

-1 

40 

*3 

2.100 

374 

107 

808 

+1 

-3 


6,700 

397 

-19 

0.400 

50 

-*2 

ScoUNi ft Nrar-t 

581 

487 

+8 

EOOO 

400 

15 

9001. Hytte-BtoL 

782 

390 

43 

1300 

480 

tS 

Scottish Prosssf 

36» 

387 

-8 

1300 

278 

+5 


2.7U0 

107 

+*I 

1.400 

5.900 

817 

196*2 

+14 

♦*2 


2600 

5.100 

152 

427 

+1 

-8 

781 

490 

+a 


709 

637 


1300 

233 

+i 

Shel Tnmeportt 

4600 

700 

44 

738 

403 

-8 

GWwt 

26W 

566 

40 

12 

420 

-10 

SkxnhBUa 

1600 

299 

45 

too 

912 

-6 

8n8h fAUi) 

1,100 

457 

+7 

1,500 

102 

-a 

8mMh a Haphawt 

1600 

140*2 


908 

783 

-14 

Smra Baectomt 

2,700 

431 

43 

534 

747 

•6 

BnOg Daarhara Utt-t 

1600 

380 


891 

374 

■3 

Smarts mil 

333 

495 


942 

307 

-a 

Southern SacLf 

695 

739 

-10J, 

91 

240 

-i 

Saudi Witoa Beet 

900 

era 

2^00 

100*1 


SouSt Watt Water 

383 

521 

-6 

1300 

119 


Satan Wool Bacx. 

925 

773*2 

-15*2 

25S 

136*1 

+*2 

SoiOran Water 

413 

569 

44 

BCD 

210*0 

+*2 

Standard CrmtULf 


239 

-8 

383 

955 

is 


1600 

208 


3.100 

287 

13*2 

SuiAOancvt 

1600 

310 

+4 

a,noo 

572 

-2 

TIN 

200 

224 

-2 

89 

327*3 

-1 

UOnupf 

1,100 

350 


3300 

601 

+10 

TBBf 

1600 

214 

+1 

2300 

401 

+2 

Tientao 

1,100 

147 

+1 

729 

590 

14 

TMo A Lyta 

SOB 

434 


238 

180 

♦1 

Tartar Woodrew 

553 

127 


1.100 

600 

+2 

Taacof 

3600 

232*2 

2.400 

451 

+a 

Thames vfcaart 

302 

400 

-1 

MOO 

703 

+7 

Thom ERarf 

944 

SOS 

414 

f 

328 

+3 

TlcmMttt 

3600 

215 

-2 

18300 

Z»*2 


TfalHoarKiua 

501 

87 


1300 

160 


278 

353 


IBS 

200 


1600 

lira 

43 

1300 

178 

•a 

Untaul Bttoitat 

318 

304 


143 

802 


UntNeenpapara 

837 

601 

+* 

1300 

023 

■« 

Vodafonef . 

7600 

198 

2300 

B3 

410 

960 

+12 

-a 

WartaaoWIt 

weaconat 

222 

927 

TOO 

684 

-a 

■0 

1300 

481 

-2 

WNahWiasr 

179 

844 

+3 

260 

672 

-17 

WmanWatar 

117 

Em 

+2 

2300 

158 

♦1 


730 

534 

43 

1300 

010 

♦11 

W«amaMd<|t.t 

9600 

331 

40 

135 

7M 

-O 

VWa Cocoon 

1600 

152 

+3 

190 

447 



039 

143 

-1 

100 

340 

-1 

Woitttoyt 

079 

701 

+4 

2. 100 

840 

+10 

Yixtahhn Bed 

548 

TIB 

-a 

1.400 

182 

-a 

YOlWfetWaur 

113 

520 

-a 

1,400 

714 

-0 

Zaneeat 

990 

822 

•3 


Stock index futures ended the 
day roughly where they were 
at Thursday's dose but volume 
was healthier aid the mood 
among traders far more 
relaxed. 

The FT-SE December 
contract was mostly content to 
track the cash market, hitting a 
low point of 3,008 early 


■ FT-SE 100 HDEX FUTURES (LCFFE) E25 per M Indat port 


One 

Mir 


Open 

3019.0 


Sett price Change 
304X0 +12.0 
3008X1 +12X1 


Mgh 

3067X1 


Low 

3ooax> 


Rtf, vol Open kit 
13261 51 958 

0 975 


■ FT-SE SBD 880 MOOt FUTURES gJFTQ CIO per M Index point 


Dec 


3S40X) 3555X1 


- 6.0 


354a0 35400 


50 


3391 


■ FT-SE MID 260 WDEX FUTURES (OAOX) CIO per M Indie port 
Dec N/A 

M open hurat Hgraaa am tar pmtou day. 1 Bed w+rano aham. 


■ FT-SE 100 INDEX OPTION QIFFE) (-3028) eiO pg tufl Index point 

2660 2900 2950 3000 3050 3100 3150 3200 

CPCPCPCPCPCPCPCP 
fct 191 11*j 14912 IB 119 2912 77 45*a 30 50 2912 9912 1B>2 136*2 8b 178 >2 

NOV 232b 2S*j 173*2 35*2 137*2 49 100 57*2 77*2 89 58*2 118 38*2 151 25*2 1B8 * 2 

DR 226*2 37*2191*2 5112 137 86 126 * 286 * 288*2 108 77*2 * 36*2 a 1B*2 <1 201 
Jan 252 64*2 215 66*2 181 82*2 M 8 101 120*2120*2 88 148 78 176*256*2 2*0 

Juit 276*2 U 214*2134*2 184*2183*2 119*2040*2 

Ob 8016 Ml 8,127 

■ EURO STVLE FT-SE 100 INDEX OPTION (UFFE) EiO per M Index pokit 

2875 2925 2076 3025 3075 3126 3175 3225 

Od 171*2 16 129 23*2 92 36*2 82 56 30 83 23 116*2 t2 155>a 5*2 198*2 

N» 182 28*2 19 41 ttf*2 57 92 77 67 101*2 48*2 131 31 164*2 Wj 202*> 

DR 209 43*2 T73*a 57*2 Wlh 74*2 112*2 94*2 67*2 119 U 146*2 47 177 32*2 212 
Mar 221*2 82*2 IS 120 113 168 73 227*2 

Junt 384*2 108 29 142 153 19 111*2239*2 

DBi 924 Mi zxnz * UMtfitag Mb Mu. Remain Moral an basal do unura prices, 
t Ur dMapranlL 

■ BIHO STYLE FT-SE MB 260 WOBt OPTION (OMUQ 210 per M Index point 
3600 


3850 


3850 


3700 


3750 


3800 


3850 


DM 

CMk 0 Mi 0 SoHasnnt prices and wftms an Man at «3Ckm. OUU dan vsa inanMie tar Ms addon. 


FT-SE-A INDICES - LEADERS & LAGGARDS 


Johnson Wranray 
Ktaflaalmf 
MM Saw 
iBtarahaT 
Ura SocurMaat 
team 

LcgcS 4 Oeneraft 
UcTCbABbw 
UoyMBankt 
LASMO 
London Qto. 

Rood oa toMo Baa tar a itatai U actor mma M tank «■ *EM DM 
d m aSta or awn n nuxM Own Itaibtos an FME IN Hn monka*, 


FT- SE Actuaries Share Indices 


Percentage changed since December 31 1993 baaed on 

Mean. Mar ft IfcR +ft63 MM CM -005 

DIEKMaanftPM *8.16 FT-SE Iftd 250 *68 

Bdradha taantta +0.13 Caa tbaftagw _. -6.1B 

agtaaRWan +751 Food t f a n taa nti -78* 

Mwal Ertradkm +4JD Nraflrancl* -7J0 

OL HagmM +S .13 kaaataMTma -834 

Partem +235 Pf n nu nrtmt -&M 

FT 60 U Moca Mr +137 anomic ft Bk apod — 4.18 

BypaataB +1.89 Sanfcaa -428 

BactdcBr — +047 FT-SE-A M-flbam -9JK 

FT-SE SUdCR KIT -0.10 &W«5in4en -SJ4 

Lctain&HWb -Lit Sptai, Wtef & «n -10.18 


Friday September 23 1994 


ToOab ft Appaid . 

Rm OsUbmoo 


HsasanoH Goods . 


-1188 
, -12.14 
,-1249 
. -1057 


FT-SE MCR. 
food _ 


•12B Comma Goads. 
■131 FT-SE-A 350 — 









HaMtom, General 

_ -15.11 



9cMng ft GangmJan 
Property 

_ -1761 
— -1803 


> uWrtsr uoB OOpai. T«m» 


FT-SE HO 2S0 n IT . 


.-1021 
. -1021 
. -1120 

-637 FT-SE 1R -11.41 

. -M3 Dhudhd tdrika -1181 


T r B rgiagri c aB o ni . 

Ftaancati 


-1829 

-1859 

-2038 

-2186 

-2484 


The UK Serie 



seas 

oen 

**ba 

Sep a 

Sezi 

Se 0> 

YftV 

MB 

Bv- 

m 

Esn 

m« 

HE 

UBt 

Ua4 

no 

11 

W* 

-tas 

4 

Led 

" 

Hgh 

flora Era 

Heston — 
lor 

era 

FT-SE 100 

30X2 

+06 

30216 

30146 

30376 

30056 

4.17 

760 

WAO 

9963 

1144.70 

88209 

92 

28286 

24® 

3SU3 

2/2/94 

9860 

23/7/B4 

FT-tt MM 250 

35609 


35611 

3570.1 

35846 

34316 

360 

5.74 

2038 

8561 

132456 

41826 

se 

33814 

27® 

415Z8 

3/2S4 

13704 

unite 

FT-K Hd 330 k to* India 

3QK6 

-4L1 

356*0 

35116 

3686.4 

344T6 

366 

621 

1366 

9350 

132163 

4156.7 

19/1 

33826 

27IB 

4MOJ 

1WB* 

13763 

zmrae 

FT-SE-A 3» 

1528.7 

+06 

1526.1 

T 524.4 

153*6 

1507.1 

461 

066 

1728 

<8.16 

118164 

177BL3 

2/2 

145U 

24® 

mu 

2/2/94 

0846 

14/1/88 

FT-SE SaaflC* 

1844 00 

-0.1 

184645 

1855.13 

106397 

178162 

120 

471 

2070 

42.10 

142017 

208488 

4/2 

177851 

8/7 

209468 

4ffl04 

138379 

31/12/92 

FT-SE ftnrtCto m tap Thuta 

181583 

-02 

101865 

1B2861 

1838.42 

1702.93 

369 

522 

24.42 

4320 

141068 

208072 

4 e 

175258 

12 ft 

208032 

4/2/94 

136379 31/12/92 

FT-SE-A ILL-SMBE 

151958 

+0.1 

151765 

151863 

15ES22 

1494.49 

365 

6.70 

1774 

4693 

119*67 

11B111 

02 

144868 

24® 

170411 

2/2/94 

8162 

13/12/74 


FT-SE Actuaries All-Share 

Days Veer Df*. Eon. 

Sap 23 dtp!* 8jp 22 Sep 21 Sap 20 ro aWjMjt 


HE 


U aft 
7« 


Total 




■1994 


Low 


non 


10 MNBtAL EXTHACnOHOQ 
12 EdRKlfM MugtrtM4) 

15 «. Magnttodp) 

18 01 EMoraDon ft HodUD 


286624 -0.1 2886L42 86B25B 288071 225880 3.46 5.13 2464 5067 1083.13 280X81 

4018.15 +02 400861 388060 4007.74 3TBB60 320 5.10 2425 5522 109663 410765 

259356 -02 258763 261768 2831 .BO 219120 364 560 21.48 5969 105519 276386 

190749 -4L5 191689 193274 195878 IffiOOD 2.1 B ft ft 3603 110364 209968 


20 OBI IMIfUFACWMERSGn) 189867 +02 188368 1888.14 180642 180060 462 606 

21 Budrtng ft C0na&uc«on(33) 107767 — 107723 1074.41 107663 118450 363 468 

2 3 Bridav Mats ft MattapS) 185466 +0.4 104687 1813X16 180634 181560 368 462 

23 ChefMcaaa(231 2387.15 -06 2402^0 240574 242638 219640 368 420 

24 DMtSfled feKhsnMKIO 1792.12 +61 178964 178521 1B1Z18 1B322D 611 519 

25 QearartC ft Beet EoOp(34) 191268 +67 189924 190022 180640 213600 361 650 

28 Enatae0ta(7in 182361 +06 181368 180368 1BT7J0 164610 3.14 461 

27 Enalneatnp, VMM02) 228726 +0.4 227638 228263 229612 189360 467 268 

26 FfTOng. Pam ft Pdq|2GI 282643 -ai 283369 282769 280468 242160 363 560 

29 TenttH ft A«»dOT 180068 -07 160158 1824.83 164435 184760 460 866 


2367 0671 
2648 2969 04673 108610 
2561 84.12 672.43 230622 
2927 7563 105763 25860 
23.15 8048 92050 223167 
1608 5728 B3S30 WMi« 
24.12 4466 104138 200.17 
5068 7267 110614 281698 
2268 7024 111330 300561 
1764 4469 90144 202166 


X CONSOTEH 60008(97) 2701.07 

31 BmrenMI7) 220628 

32 SpttB UM ft CMmtID) 276367 

33 Food ItenOadiraaCT 2281.61 

34 Houaduidl QaxBflS] 2474.78 

36 Heefll Cai*pl) 166865 

37 fttanracwOfalstlQ 200062 

38 Totnccod) 3480.88 


+61 209869 269023 2704.11 2751.10 460 764 153110161 03161 9M0JB 

+03 210968 219231 210768 202760 439 7.78 1668 0163 08633 248462 

+67 2743.W 2361.07 ZJTtUft 263360 4.03 763 1637 8962 92641 98368 

-0.1 2284.70 229933 231685 229630 433 624 1463 7S77 95675 200064 

+1.1 244761 24S866 244116 250030 364 733 1633 55J9 883.47 2004.14 

-03 168460 168038 165665 171660 101 335 4121 3618 95062 W0613 

-03 298762 2950.14 206112 310460 4.42 7.18 161212618 95178 328861 

340868 345630 3422.75 403900 622 966 109021707 70607 471860 


5® 

2*3006 

310 

280261 

5/0/0* 

90020 

19/2/86 

2/2 

386068 

12/7 

410755 

2/2/04 

100060 31/12/85 

5® 

234BJ8 

300 

278268 

5W94 

00230 

20/2/88 

27M 

170460 

31/3 

30*4.10 

B/8/90 

88030 

28/7/88 

2/2 

1BB5JB 

24® 

+TBBI 

2/2/94 

988.10 

14/1/98 

8/2 

107461 

21® 

212060 

10/7/87 

S3B3B 

fl®®2 

24/1 

1790.10 

21® 

2S8362 

24/1/94 

90460 

9/0/92 

8® 


28® 

280042 

8®*4 

07060 

14/1/06 

2/2 

178021 

21 ® 

223167 

2/2/94 

00460 

21/1/86 

4/2 

183048 

0/7 

220360 

4/2/94 

08830 

2&IB/8B 

2/2 

T73665 

24® 

2011.17 

mm 

00260 10*11/07 

a® 

200034 

28® 

2SM0S 

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In the morning and peaking at 
3,058 around 1pm. At the 
dose the contract stood at 
3,043. 

There were 12,701 contracts, 
up from 10,000 in the previous 
session. Traded option volume 
Jumped sharply, rising to 
42,979 lots, against 31,858 on 
Thursday. 


(APT) 


Heavy 
volume 
in Hanson 


International conglomerate 
Hanson attracted attention in 
the second half of the session 
on reports that Hoare Govett, 
the company’s broker, had 
downgraded profit expecta- 
tions. The shares slipped 4% to 
230 l /«p in heavy trading that 
saw volume soar to 18m. 

Unconfirmed reports 
suggested that Hoare Govett 
had reduced current year profit 
expectations at the AngloUS 
group by £25m to £990m for the 
year to September 1994, and 
the following year’s figure by 
£85m to £lj335m. 

The broker was reported to 
have cited several reasons for 
this including the weaker US 
dollar; the progressive impact 
of higher interest rates on the 
company's borrowing costs; 
and pricing pressure at Caven- 
ham, Hanson's forestry prod- 
ucts division and at its Pea- 
body coal operations. 

The stock was also the most 
actively traded in options, with 
the equivalent of 9.3m shares 
traded by the close of business. 

Steel strong 

British Steel, a big stockmar- 
ket outperforms in recent 
weeks, gained 7 to 164 Vip on 
the news that it planned to 
increase strip steel prices by 
up to a tenth from January. 

The shares provided London 
with its second heaviest indi- 
vidual turnover of the day 
(13m shares) and extended 
their outperformance of the 
stockmarket over the past 
month to around an eighth. 

Panmure Gordon produced 
an instant buy recommenda- 
tion but yesterday there were 
very few securities houses 
were not talking bullishly 
about the profits implications 
of the latest steel price gearing. 

Retailers hit 

Food retailing stocks 
remained under pressure as 
fears of an impending price 
war continued to overhang the 
sector. Sentiment was further 
weakened when BZW removed 
the sector from its buy 


list to place it on bold. 

The fears were sparked by 
Tesco's comments on trials for 
lower regional pricing in parts 
of northern England. 

The sector’s main casualty 
was J Sainsbury whose shares 
tumbled 19 to 397p, in trade of 
5.7m. Argyll Group gave up 9 
to 268p on the same worries 
while Tesco finishe d 6 Vi lighter 
at 232ftp. Kwfk Save retreated 
17 to 572p. 

British Gas was In the hunt 
as one of the FT-SE 100’s worst 
performers as the shares 
retreated in the wake of a neg- 
ative recommendation from 
one of the leading interna- 
tional broking houses. 

Nomura confirmed it had 
downgraded Gas from a buy to 
a hold after the stock had out- 
performed the all-share index 
by 14 per cent over the past 
three months. 

Mr Steve Turner, analyst at 
Nomura, said “the historic 
yield premium of 50 per cent, 
against the market, would now 
seem to fairly reflect Gas's 
growth prospects.” 

At the dose Gas shares were 
7'A lower at 299'Ap; turnover of 
10 m shares was the fourth 
highest in the FT-SE 100 list 

The utilities sectors of the 
market were among the most 
volatile areas of the market 
after the utilities team at 
Hoare Govett, the stockbroker, 
advised its clients to switch 
from the “recs” that have 
already embarked on a share- 
buy programme into the water 
stocks. 

Hoare's utilities team said: 
“With the recs sector, having 
moved to an all-time relative 
high and with the close periods 
of the recs fast approaching, it 
seems appropriate to topslice." 

Hoare recommended a 
switch from South Wales, 
down 5 at 8Q3p, Northern, 11 
off at 771p, and Manweb, down 
5 at 8l8p into Severn Trent, a 
penny harder at 537p, Welsh, 3 
up at 644p and Thames Water, 
marginally easier at 498p. 

A whiff of takeover specula- 
tion circulated in the insur- 
ance sectors of the market 
although dealers were hard 
pressed to pinpoint where the 
potential bid activity would be 
focused. 

Commercial Union settled 3 
firmer at 498p, and General 
Accident put on 5 to 555p, 
while Royals edged up 3 to 
273p and Sun Alliance 4 to 
319p. 


Standard Chartered was a 
notable casualty in an other- 
wise strong banks sector, the 
shares said to have been 
affected by bearish stances 
adopted by Nomura and Hoare 
Govett At the close Standard 
were 8 off at 256p. Lloyds Hank 
rose 10 to 540p after the 
Department of Trade gave the 
go-ahead for Its merger with 
the Cheltenham and 
Gloucester Building Society. 

Inchcape moved up 12 to 
410p following the announce- 
ment that its insurance 
broking business was in 
co-operation talks with Acordia 
of the US, number seven in the 
world insurance broking 
league. 

With some 2m shares chang- 
ing hands, the stock shrugged 
aside persistent speculation 
about weak profits - and a pos- 
sible dividend cut - when the 
company reports its interim 
results on Monday. 

Transport shares were active 
with British Airways hit by 
Care war worries, rebounding 7 
to 373p and bus operator Go- 
Ahead moving up 6 to 132p fol- 
lowing strong results and a 
takeover. 

Go-Ahead combined news of 
widening operating margins 
with the announcement that it 
was paying £20m - almost half 
of its stockmarket capitalisa- 
tion - for London Central Bus. 

Eurotunnel eased 1 to 289p 
as rumours of renewed financ- 
ing pressures began to circu- 
late among analysts. 

A positive analysts visit to 
Rank Organisation’s film and 
video operations on Thursday 
boosted the stock yesterday 
leaving the shares 12 ahead at 
413p- 

The dutch of broker's recom- 
mendations for Granada Group 
made this week after discus- 
sions with analysts about the 
state of trading continued to 
support the shares. They added 
another 10 to 501p. 

Media shares managed a 
number of modest rebounds 
with Carlton Communications 
rising 14 in thin volume (l-4m 
trades) to 817p and Pearson 
group, heavily sold in recent 
days, gaming 12 to 567p. 

Reports of a buy recommen- 
dation from NatWest Securities 
helped Guinness shake off the 
gloom that followed Thurs- 
day's figures which came hi at 
the bottom of market expecta- 
tions. The shares advanced 3 to 
451p. 


Sap 20 


..3037.3 

..3079.1 

High* 

— 

..3085.3 

-Intra-day high and tow tor v+eak 

■ CHIEF PRICE CHANGES 

YESTERDAY 

London (Pence) 
Rises 

Brtt Biotech 

544 

+ 14 

Brit Steel 

164 

+- 6'A 

Granada Grp 

SOI 

+ 10 

Inchcape 

410 

+ 12 

Lloyds Bank 

540 

+ 10 

Rank Org 

413 

+ 12 

Servomex 

267 

+ 5 

TGI 

69 

+ 4 

Falls 

Argyll Grp 

266 

- 9 

Brockhampton 

410 

- 13 

Hanson 

230V; 

- 5 'A 

Hepworth 

296 

- 6 

IAWS 

91 

- 3 

Jeyes Group 

163 

- 13 

Kleinwort Benson 

466 

- 7 

Kwik Save 

572 

- 19 

Ramco 

217 

- 10 

Sainsbury (J) 

397 

- 19 

Sclwodeaa 

14S3 

- 45 

NEW HIGHS AND 

LOWS FOR 1994 


rCWMOHS(Z7). 

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Maornan Powor. TGI. ENGINEBWQ P) 

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pr PtL, LBSURE A HOTELS fl) Brtxtol Scons, 
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PHARMACEUTICALS (2J BrMtl BtoWch, Oa 
Witt. RETAILERS, OEHEHAL (1) FM Eantl . 
SPOTS, W1W3 ft CIDERS (I) Maa*w 
-CtonflwL SUPPORT SERVS fi) Sana. 
TRANSPORT « Awlad DttntautkKi, OFT Bui. 
Go-Abnd. AMERICANS (1) Amer. CyansnXL 
tew LOWS (120*. 

flue ro BULOeia ft CNSITM N Croat 
tochcl 5Wpc Pit, long U> Cv PL Rom. 
W Mmhi Mi S cM taMmft BLPO MATES A 
MCH1S HI Haywood WBura. Do. Cm. Pit. 
taatoch Wmta, Titan CHEMICALS ro 
CarnoBtana, Oa Wrn. Caunukta. 

nsmauroRS (iq nvaonEDiNDUM 

Bata. Han so n. Do. BHpc Cnv Bd. Hanoon 
Warmra, ELECTRNC ft ELB5T Q3UP (G) 
Bowihrapo, DA, Tatamwm. VdooLogic. Vtecft. 
0MMEBRMQ R AacMnxturas Hmfata. 
GNiwed. Morm CniEtata. Oa 7 Jpa Or Fit, 
ftrapw. Whaoraa BM. VEHKLES (5) AAF. 
USA, Da 6.75pa Cny. Prt. HU-SMa, Motor 
Wtodd. POOD MANUF 0 EmioM Foods, 
Narttwm Foods. HEALTH CARE fl| SctxA 
HOUSSWID GOODS » Cialohlon NstaMy, 
Joyoit, INSURANCE M HaaVi (C6J, Now 
London Captor, Sadg+tek. 3»nifc o ta Capital. 
MVESTMOfT TRUSTS (M| ■NVESTMBIT 
COMPANIES (JJ Latki Amaricm Extra Vtald. 
LBSURE ft HOTELS ro Brook lor dw Boitlw, 
Kimlek Prt, MEDIA (fl Paaraon. Oft. 
EXPLORATION ft PROD ft) Scttonborgar. Oft, 
MmORATED (1) Mabl, OTHB1 RNANCML R 
Bony, Bhta A Motto, Enow Cnptot, Em 
bnunJinttta, Johmon Fiy, Store** kw Sons. 
OTHER SERVS A BUMS (1) General Motor* 

Utt. PHARMACEUT1CAL3 (2) Ononpian. 
HaMtagdon. PRTNO. PAPOR ft PACKO HI APL 
Haton Amtoy. Sktow, WaBnouetto, 

WO P GR TY M) Owctand TrusL PanSMr. P*aL 
Skxigh Eeta. Prt RETAILERS, GENERAL P) 
ROMbra, Smta, SUPPORT 0ERVS M BSM, 
Coons ConaiJdng. McOomel Wo. RCO, 
isxmes ft APPAREL ro Coata Wyolft 
Ramura. TOBACCO R) MU Kora Wna. 
TRANSPORT C8 CSK. Tltftan ft Bnttoa 
1 ( 10 ) 





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'or your guide ;ind Signal price list. 


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20 


FINANCIAL TIMES WEEKEND SEPTEMBER 24 /SEPTEMBER 


25 1994 



































































































21 


_L. 


FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 * 


FT MANAGED FUNDS 


















































































FINANCIAL. TIMES WEEKEND 


SEPTEMBER 24/SEPTEMBER 


25 1994 















































































23 



FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


WORLD STOCK MARKETS 




EUROPE 


Dow steady as Continent ends the week cautiously higher 
Fed meeting 
is awaited 


Wall Street 


US stocks established a hold- 
ing pattern yesterday as inves- 
tors awaited the outcome or 
next week's meeting of the 
Federal Reserve's policy-mak- 
ing arm, writes Frank McGurtu 
in New York. 

By 1pm, the Dow Jones 
Industrial Average was 3.36 
lower at 3,833.77, while the 
more broadly based Standard 
& Poor’s 500 was down 1.04 at 
460.23. 

After three days of brisk 
trading, activity was moderate, 
with 175m shares traded on the 
Big Board by early afternoon. 

In the secondary markets, 
the American SE composite 
was up 0.30 at 45&21, while the 

WctoB Technology 



16 ' 

- . Jan • - * 1894 

Solatia: FT (kaphas - 




Nasdaq composite receded 2.15 
to 75329. 

After driving the Dow indus- 
trials down nearly ZOO points in 
the previous three sessions, 
investors were still on edge 
over the prospect of an immi- 
nent Increase in interest rates. 
There was no clear consensus 
on Wall Street on whether the 
Fed would come down in 
favour of an immediate tight- 
ening of credit conditions dur- 
ing Tuesday's session. 

As a result, equity investors 
seemed content to let share 
prices drift Bond traders were 
also taking a wait-and-see 
approach. 

Trading was quiet and prices 
across the maturity range 
moved marginally lower. There 
was no fresh economic news to 
disturb the uneasy tranquBity. 

At first the lazy mood put 
stocks on firmer ground, as 
bargain hunters capitalised on 
the recent downturn. But as 
the afternoon approached, the 
jitters intensified mice again, 
and the blue chip index sud- 
denly was showing a modest 
loss. 

Among the Dow components, 
Disney dropped $% to $39% 
amid reports of management 
turmoil at the company. Boe- 
ing shed %Vt to $42% and Proc- 
ter & Gamble receded $% to 
$58%. Offsetting the declines, 
Kodak appreciated $% to $52% 


and International Paper $% to 
$77%. 

The action elsewhere was 
mixed as welL On the NYSE 
declining issues were holding a 
modest edge over advances at 
midday. 

The Big Three car makers 
fell out of favour, with G enera l 
Motors losing $1% to $47% and 
Chrysler dropping $i to $43%. 
In a related Issue, Goodyear 
Tire shed $% to $32%. 

Georgia-Pacific was a bright 
spot, thanks to a favourable re- 
rating by Kidder Peabody. The 
stock jumped $2% to $73%. 

In the technology sector. Dig- 
ital Equipment was marked 
down $2% to $26% on a down- 
grading by PaineWebber, 
which said the stock was over- 
valued. 

In early trading, shares in 
Micron jumped $1% on news 
that its net income in its fiscal 
fourth quarter nearly doubled. 
But the gain eroded as the 
morning progressed, despite a 
“strong buy” recommendation 
by Fahnestock & Company. 
The issue was trading up a 
scant $% at $38% by early after- 
noon. 

On the Nasdaq, most com- 
puter stocks suffered setbacks. 
Intel was down $1% at $83%, 
Sun Microsystems retreated 
$1% to $28% and Oracle gave 
back $% to $43. 

Canada 

Toronto was mixed in sluggish 
midday trading as investors 
remain sidelined ahead of next 
week's US Federal Reserve pol- 
icy committee meeting. 

The TSE-SQO index eased 2J> 
to 4,360.00 in volume of 39.2m 
shares. 

Advancing issues beat 
declines 277 to 250 with 803 
stocks fiat 

Eight of the market's 14 sub 
indices were easier. 

Metals and. minerals led 
gains with Rio Algom rising 
C$% to C$26% in volume of 
l.5m shares. Transportation 
and consumer products were 
among the weakest groups 
with Cott Carp losing C$% to 
C$19%. 


SOUTH AFRICA 

Gold shares closed with cau- 
tious gains while the stronger 
financial rand had a dampen- 
ing effect on activity. Industri- 
als ended firmer but the 
undertone, brokers said, 
remained nervous. 

The overall index added l to 
5,755, the gold index made 13 
to 2,468 and industrials 18 to 
6,358. 

De Beers fell R2 to R103, 
Kloof put on RL25 to R73 and 
Freegold fell 50 cents to 
R73J50. Pick n Pay lost Rl.25 
to R10 after disappointing 
annual resnlts. 


Mexican equities open 
session with sharp gains 


Mexican Etocks opened sharply 
higher helped by good eco- 
nomic data announced late on 
Thursday. 

Confidence stemmed from a 
commerce ministry announce- 
ment that foreign investment 
was up 29 per cent in the first 
eight months of the year 
against the same period in 1993 
and from satisfactory first-half 
September inflation figures. 

The IPC index was up 29.85 
at 2,858.36 in turnover of 
1613m pesos. 

Traders said Telmex, the 
national telephone monopoly. 


was leading the advance. The 
L series shares - those avail- 
able to foreign investors - 
were up 1.1 per cent at 11.02 


Brazil 


Shares rose L6 per cent in 5&o 
Paulo on heavy early monring 
trade as two new opinion polls 
showed that Mr Fernando Hen- 
rique Cardoso was likely to 
win Brazil’s presidential elec- 
tions in the first round. 

The Bovespa index was up 
885 at 54^37. 


FT-ACTUAJRIES WORLD INDICES 


In spite of a less volatile day's 
trading in Europe yesterday 
worries remained over a possi- 
ble rise in US interest rates 
next week. 

As a consequence Nomura's 
strategists have advised fur- 
ther selling of equities for 
cash, with or without a further 
rise in short term rates. 
“Eq lutes are an each-way 
loser," says Nomura. “Even 
higher bond yields and the 
equities dive; bond rallies bom 
out of further short rate rises 
andjor switching out of equi- 
ties have exactly the same 
effect - note that the Dow fell 
last Tuesday night after the 
bond market had rallied. " 

Nomura is pessimistic and 
has recommended reducing a 
global equity allocation by 10 
per cent to 50 per cent and 
raising cash to 30 per cent, 
while aiming to buy bonds 
between now and the end of 
the yea r. 

FRANKFURT moved higher 
on encouraging state inflation 
data and strength in the bond 
markets. The Dax index fin- 
ished Up 16.09 at 2,039.12, 
before rising further to 2,092.75 
in the Ibis. Turnover on the 

ASIA PACIFIC 


day was DM5.7bn and the mar- 
ket gained 1.4 per cent on the 
week. 

Activity again remained low 
with corporate news only 
patchy. There were reports 
that Daimler's long term debt 
ratings had been downgraded 
by Standard & Poor's which 
left the shares off 90 pfennings 
at DM779 in the Ibis. 

PARIS recovered some of the 
losses of the previous sessions, 
ending the session, also the 
last day of the account, some 
1.5 per cent higher and 
unchanged over the week. 

The CAC40 index dosed up 
2758 at 1,927.35. 

The account ended with a 
loss of nearly 4 per cent 

Recommending a neutral 
stance on the French market 
fQeinwort Benson noted that 
foreign investors, who sup- 
ported the market in 1993 by 
investing some FFr75bn. have 
now gone underweight in 
favour of Germany. 

Credit Lyonnais CIs 
remained under pressure after 
the group’s postponement of 
first-half figures. The CIs, 
which are thinly held, dipped 
FFriUJO to FFr395.20. 


|ft-se Ac 

;tmries\ Sri'are Indices 




J 

Sop 23 



THE EUROPEAN SERIES 

Hourly duw» 

Open 

ICL30 1180 12KD 

1380 

1480 

1580 

Owe 

FT-SE Bmftacfc 100 
FT-SE Etntrack 200 

133777 

138084 

1340.00 134032 134380 
1383.44 1383L58 138682 

1346.74 

138987 

1346.06 

1388J9 

134387 

138740 

1343.73 

138886 



Sep 72 Sag 21 Sep 20 

S« 10 

Sep 16 


FT-SE Guroucfc tQO 133432 134034 134Z33 135090 135051 

FT-SE EuratKk 2Q0 137734 138352 138074 140055 140026 

fttf* MM p&HIWOJ; MgMfcp too - VM7.8tL an ■ imi5L«*: loo- 1SV.77ZOO- tSKLMt tartU 


MILAN overcame early dis- 
appointment over the faflure of 
the government and unions to 
agree on pensions reform at a 
meeting on Thursday as hopes 
rose for a break in the dead- 
lock on Monday. 

The Comit index registered a 
2^4 fall to 668.19, taking the 
week's loss to 1.5 per cent. 
However, the real-time Mibtel 
index rose 48 on the day to 
10,737. 

Olivetti was up L40 at 12,053 
after pnnnuTira'ng better than 
feared six-month figures on 
Thursday. Pirelli was LIS 
higher at L2.607 ahead of the 
release of Its first-half results 
this afternoon. 

Generali was down L2S9 at 
L39.374 after reporting weaker 
than expected first-half results. 


ZURICH nudged higher in 
low volume, supported by 
firmer bond fixtures, and the 
SMI index rose &2 to 2,609.1, 
little changed over the week. 

Insurance issues, which had 
an active week, closed mixed. 
Swiss Re, the subject of specu- 
lation that it aims to acquire 
Elvira, added to the week's 
advances with an SFr8 rise to 
SFr571, although analysts 
noted that the share had fallen 
by 30 per cent since the begin- 
ning of the year following vari- 
ous sell recommendations. 

Merkur, the retailer, put on 
SFr4 to SFr361, ahead of its 
announcement of better than 
expected first-half profits and a 
forecast of unproved Adi year 
figures. 

AMSTERDAM was another 


beneficiary of the better mood 
across the continent yesterday. 
The AEX index improved 325 
to 403.61m but down almost 1 
per cent on the week. 

Heineken was unchanged at 
FI 238. Klein wort Benson has 
downgraded the stock from a 
boy to hold on the basis that 
the shares are now fully val- 
ued. The brokers commented 
that store July the shares have 
appreciated by nearly 16 per 
cent and have outperformed 
the Dutch market by 9 per 
cent. 

MADRID saw an end to Its 
five-day losing streak, picking 
up L5 per cent in response to 
firmer government bond 
prices, short-covering, and the 
opening gains on Wall Street 
The agreement between the 
minority ruling Socialist party 
and the CiU centre-right Cata- 
lan nationalist party over the 
1996 budget also gave support 
to bond and equity markets. 

The general index closed 4.36 
higher at 298.82 in volume of 
Pta25.9bn. The market was 
down 0.8 over the week. 

Blue chips led the market 
higher, with Telefonica up 
Pta60, or 3.6 per cent, at 


Ptal,7B0. Endesa added Ptaltio 
to Bta&fSQO and Repsol gained 
Pta75 to Fta33i5. 

Bankinter added Ptal90 or 
1.7 per cent to Ptall.520 after 
the bank said it planned to pay 
a second 1994 gross dividend of 
Ptallfi pesetas, up 9.5 per cent 
from 1993. 

OSLO fell back on fears that 
the country might reject EU 
membership to a November 28 
referendum. 

The All-share Index lost 2.46 
to 596.62 in spite of higher 
prices for North Sea oil and 
lower interest rates. Turnover 
was NKr529m. 

Norsk Hydro shed NKr2 to 
NKT23S. 

STOCKHOLM improved 
helped by strong financial 
stocks. The Affersvarlden gen- 
eral index rose 12.0 to 1,428.3, 
off 1.5 per cent on the week. 

Turnover was moderate at 
SKr2.7bn. 

The banking and insurance 
index rose 2.5 per cent S-E- 
Banken A shares gained 
SKrl.20 to SKr47. while Skan- 
dia put on SKr4 to SKrl25. 

Written and edited by Joiut Pitt 
and Mctwei Morgan 


Region pessimistic on fears of further US rate rise 


With the tear of a further 
tightening of US interest rates 
next week weighing on inves- 
tors' worldwide, the Pacific 
Region took the view ahead of 
the weekend that there was lit- 
tle to be optimistic about 

Tokyo was closed yesterday 
for a public holiday. 

The consensus among ana- 
lysts seems to be that the US 
Federal Reserve is likely to 
move interest rates 50 basis 
points higher at its Tuesday 
meeting, with the consequent 
knock-on effects throughout 
the world. 

However, there is also a view 
among analysts that the US 
does not need to take further 
action because the threat of 
rising inflation in the country 
r emains s mall 

Credit Lyonnais Securities 
Asia, for instance, remarks 
that improvements in produc- 
tivity mean that the US econ- 
omy can grow more quickly 
without generating inflation. 
“With productivity at world- 
beating levels, there Is just no 
evidence that inflation is a 
potential problem in the 
US . . . Rates have already 
gone up 175 basis points this 
year which will slow the econ- 
omy. When this starts to hap- 
pen long bond yields will fell 
towards more sensible levels, 
ones which reflect the low 


inflation outlook for the US 
economy." 

Ctridit Lyonnais believes that 
in this situation the outlook 
for Asia would be good, also 
because high inflationary 
expectations from weak Bund 
sales and excessive monetary 
growth in Germany should 
weaken confidence in the Euro- 
pean currencies. 

“The upshot will be a rise in 
US equities aru ^ bonds a nd a 
movement of funds out of 
Europe and into the Asia 
markets. But to keep funds 
long term in the region, 
Asian governments need to 
address any threat to their 
export competitiveness,’’ It 
Conc lu de 

SINGAPORE saw some life 
return to the market as selec- 
tive foreign buying boosted the 
Straits Times Industrials 15.96 
higher at 2,302.05, Uttle 
changed on the week. 

Brokers said investor senti- 
ment has firmed on the pros- 
pect of new foreign money 
coming into the market in the 
form of Asian equity mutual 
funds. 

KUALA LUMPUR closed 
lower as funds cashed out after 
a strong run, although 
speculative demand was still 
evident 

The composite index lost 9.56 
to 1,170132, for a L3 per cent 


HK announces companies 
to replace Jardine group 


Trading of index-related stocks 
is expected to dominate the 
Hong Kong exchange on Mon- 
day as investors react to the 
choice of seven companies to 
replace five Jardine group com- 
panies in the Hang Seng index, 
Reuter reports from Hong Kong. 

However, analysts said there 
were few surprises in the index 
changes, which were 
announced on Friday. 

Joining the index on Novem- 
ber 30 are Amoy Properties, 
Guangdong Investment, John- 
son Electric Holdings and Ori- 
ental Press Group Ltd. 

On February 28, Shangri-La 
Asia, Sino Land and South 
China Morning Post (Holdings) 
will join the index. 

Textile companies Lai Sun 
Garment International and 
Winsor Industrial Carp will be 
deleted from the index on 
November 30. 

Analysts said that investors 


might be disappointed b; the 
failure of banking group Guoco 
Group, investment company 
Henderson Investment and 
First Pacific to make it into the 
index. Their shares had 
recently risen on confidence 
they would be included. 

Brokers said the new constit- 
uents were capitalised at 
around Sllbn, compared with 
around $23bn worth of stocks 
departing. However, the Hang 
Seng index as a proportion of 
the market would stay roughly 
the same without the Jardine 
group. 

The revised Hang Seng Index 
will cover about 70 per cent of 
the market in value terms. The 
total number of constituent 
stocks will remain at 33. 

Jardine Strategic and Jar- 
dine Matheson will delist in 
December. Land, Mandarin and 
Dairy Farm will delist next 

Marrh 


jokitty compUM by The Hfunrfal Ttares LCCL. QoWnan. Sachs X Go. and NatMtaat Sectxttee lid. b» conjunction wHh the Institute of Actuaries and the Facutty ol Actuates 

NATIONAL AND 
REGIONAL MARKETS 
Hour* In poiwithww 
show lumbar of 8naa 
of ototik 


THURSDAY SEPTEMBER 22 199 


US 


Days Pound 


Dollar Chang® Sertno 


Index 


index 


Yen 

Index 


DM 

Index 


Local Local 
Currency % chg 
Index on day 


Qua 

Oh. 

YMd 


— WEDNESDAY SEPTEMBER 21 1894 — 
US Pound 

Yen 
Index 


□alar Staring 
Index Index 


DM 

index 


- DOLLAR MDEX 

Local Year 

Currency 52 week 52 weak ago 
Index rtflh Low (approx) 


Australia (88) . — ... 

AusMi |1fl) 

Brit**" (37) 

Canada (103) — - 

Oanmari (33) 

FMand p4) 

Franca (07) - — 

Germany |W) — 

Hong Kong (56) — - 

WanatMJ — 

ttdJyCW). 

Japan (469)--— 

MoteysM (97) 

Me*CO(19) 

NetMrtand (27)..- 

New Zealand (14) 

Norway (33) - • 

Singapore |®4) - 

Scum Attica (58) 

Spam (42) 

Sweden (30) — - 

StriUortand (47) - 

United Xmgaom (304) 

USA (516) — - -: 


17026 

187.05 

.....16089 

138.84 

.... 25130 
173.14 

.. ..ies.86 

142 25 
_ .396.13 

209.27 

..... 82.02 
.. ..1S1.7S 

.588.62 

.2331.23 

....J06S7 

71.81 

195.82 

...369.39 
..-30* 78 
.... isreo 
...223.93 

16S80 

. . 184.16 
188.21 


-.218.23 
.. 171.58 
...170.48 
-185.12 
.. 152.08 
.,268.82 
...172.38 
_ 174.80 
...175.60 

...iaaei 


EUROPE (717) 

Noiric (US) 

Pacific Seam (748) 

Eura-Padfc (1465) 

Norm America tfliej 

EiMpa Es. UK (513) >— ■ 
fete &■ Japan CM*.. 

World Ex US (1645) 

World Ejl UK {1857} .. 

WotWEx. Sa At (2102) 

Wgrfd Ex- Jnp«i (1683; 

Th» world index (2151)- __ — 

CcmtaM. TM FmWI mw H"***^. 

EEtp»c w-rtt. Ak •» ***"■ 


no 

- 0.1 

-03 

02 

-0.4 

- 1.1 

-03 

-0.5 

-1.7 

-OS 

-2.6 

-04 

-ia 

-os 

-0.7 

-08 

-08 

-02 

-1.5 

-0.5 

-Ol 

0.J 

-0.1 

-04 

-as 

-05 

-OS 

- 0.1 

-as 

- 1.0 

-06 

-04 

-03 

-03 


160.13 

175.93 
16097 
130.40 
23082 
1624)5 
15084 
133.82 
374.47 
19083 

77.16 

152.14 

551.94 
219204 

19509 

6705 

184.18 

347.43 

28068 

129.42 

209.87 

15084 

182.64 

177.02 


105.56 

137ns 

163.78 

08 

881 

17029 

15988 

105.17 

136.73 

IS3.7B 

189.15 

T4184 

14198 

115JK 

1GOS2 

16085 

Ol 

197 

18787 

17584 

115^ 

15041 

15094 

19899 

184.64 

167.72 

103.46 

13428 

131.16 

-Ol 

481 

187.40 

15727 

1039a 

134.45 

13196 

177.04 

14392 

14005 

85.95 

111.64 

13486 

08 

281 

13033 

12 996 

85.43 

111.10 

134.59 

14591 

12064 

12X10 

166.16 

20283 

208.79 

-aa 

1.42 

25285 

23785 

15821 

203.18 

209.12 

276-70 

22384 

22009 

10784 

139.41 

178,71 

-09 

079 

175.15 

19486 

108.17 

14088 

18099 

181.70 

104.28 

104.28 

103.44 

13485 

138.60 

-0.1 

3.18 

167.40 

15788 

10398 

134.45 

138.67 

18597 

15994 

10591 

6&21 

11486 

11486 

-08 

1.79 

14394 

13499 

8894 

11489 

11489 

15040 

12499 

12041 

240.62 

32088 

385-02 

-1.7 

Oil 

405.07 

38087 

25016 

32595 

40186 

50888 

29056 

29083 

129.74 

16681 

18981 

-ai 

397 

21021 

19780 

12982 

18884 

189.48 

21680 

18184 

18395 

6085 

6005 

8588 

-1.8 

1.62 

84.09 

79.01 

5183 

8784 

9789 

97.78 

5798 

run 

100.28 

13025 

10088 

-ai 

078 

16X46 

152.63 

10092 

13048 

10092 

170.10 

12494 

16194 

363.80 

47282 

577.87 

-18 

1.45 

59470 

55079 

36791 

477.71 

58593 

821.63 

39293 

39293 

144SZ3 

1677.10 

6037 SS 

-as 

1.18 

234X11 

220044 

7448.42 

1881.12 

871038 

264799 

161011 

1615.11 

120-18 

167.78 

165.13 

-08 

389 

209.81 

197.12 

12987 

16882 

18598 

218.19 

18025 

181.13 

4L39 

5786 

8X36 

-06 

3.77 

7X05 

B7.7D 

44.50 

5787 

63.71 

7789 

5022 

5993 

121A0 

15787 

15040 

-as 

183 

167.42 

18S.4B 

12 180 

158.56 

181.40 

211.74 

105.52 

17192 

220.00 

297.44 

26186 

-02 

1.68 

37021 

347.92 

22883 

29795 

251. S3 

37092 

29591 

28591 

188.94 

245.41 

285.10 

-08 

2.17 

309.41 

290.09 

19196 

24881 

29689 

31494 

18499 

16499 

as JO 

jm7» 

133.75 

-02 

481 

138.42 

13005 

35.48 

111,17 

134.04 

156.70 

12898 

18020 

13820 

17980 

246.18 

-08 

182 

22498 

21083 

13899 

17988 

24063 

231.35 

17593 

18393 

102.76 

13380 

13284 

04 

184 

166.02 

15597 

10283 

13394 

131.68 

17686 

13089 

137.70 

i?py» 

15886 

16284 

02 

4.14 

19499 

18295 

11987 

155.89 

18295 

21488 

181.11 

18027 

11068 

15154 

188.21 

-Ol 

289 

18032 

17883 

11690 

15198 

18892 

19004 

178.95 

18064 


158.1S 

20137 

16138 

18035 

174.12 

143.04 

25086 

162.14 

164.50 

16035 

170S2 


104 £3 

134.05 

10036 

105.69 
114.77 

94328 

165.41 

10087 

108.43 

108.98 

115.69 


13029 

174.11 

138.17 

137.27 

14008 

122.48 

21445 

13081 

14089 

141.55 

15026 


148.72 
204.65 
111.43 
12084 
1S4M 
130 JR 
237.37 
13073 
146.07 
147.45 
17083 


- 0,1 

-04 

-02 

-02 

-Ol 

-03 

- 1.0 

-02 

-02 

-Ol 

-02 


3.10 

145 

1-06 

1-93 

237 

248 

2.74 

1A4 

lot 

9.97 

ZS1 


160.90 

21748 

17249 

17127 

18521 

163.05 

26940 

17018 

17053 

17035 

187.13 


159.62 

20442 

162-06 

160.81 

174.07 

143.78 

253-20 

182.72 

16482 

165.68 

17581 


104 S3 
134 J7 
108-53 
105.77 
11438 
9462 
16644 
10588 
10840 
10831 
11557 


136.46 

17J.7E 

13054 

13756 

14078 

122.52 

21046 

13010 

14098 

141.64 

150S0 


149.91 

20542 

111.65 

127.05 

134.60 

13040 


13033 

14531 

147.64 

177.13 


17098 
222.18 
17586 
17514 
182.73 
15012 
29821 
170 GS 
17059 
18003 
19020 


15086 

173.10 

13479 

14088 

17567 

13497 

201.05 

14558 

15596 

15054 

17411 


15558 
174.27 
158.47 
15000 
18256 
13014 
201.05 
ISO 02 
16018 
16521 
17418 


..... 17681 


1Q949 14221 14883 -Ol 227 177-18 16647 1M4g 14231 14073 18080 15885 18522 


fall on the week. Volume was 
again heavy at 549m shares. 

KLI Holdings was in the 
limelight, gaining M$1 .38 or 30 
per cent to M$5.90, driven by 
rumours of a M$Ibn property 
development deal In Sabah 
state. 

Acidchem jumped 80 cents to 
M$8£0 on speculation that the 
company was to be taken over 
by a prominent businessman, 
while continuing rumours of a 
change of ownership pushed 
Yeo Hiap Seng up another 
M$L70 to M$15£0. 

BANGKOK saw selling of 
blue chips which pushed the 
SET index off 25^7 at L506.06 
on turnover of Bt8.9bn, a 
week’s decline of 2.6 per cent 
Siam Cement lost Bt30 to 
Btl,288. Telecom Asia lost Bt2 
to Btl04 and Bangkok Bank 
tumbled Bt6 to Btm 
HONG KONG finished easier 
after some late program selling 
triggered by weakness to over- 
seas bourses. The Hang Seng 
index fell 3S.67 to 9,632.47. tak- 


ing the week's decline to 3.4 
per cent. Turnover was 
HK$3.07bn against Thursday's 
HK$4£7bn. 

HSBC Holdings fell 50 cents 
to HK$87.75 and Hang Seng 
Bank eased 25 to HK$5L50. 

Against the trend, Cepa rose 
60 cents to HKS18.60 after it 
signed a deal to build power 
plants in India. Its parent. 
Hopewell, gained 15 cents to 
HK$7.25. 

SEOUL saw a continuation of 
the consolidation in primary 
blue chips which led the mar- 
ket's record-breaking rally to 
the early part of the week. The 
composite index closed 3.02 
lower at 1,030.99, but was still 
3.0 per cent higher over the 
week. Volume was active with 
4&3m shares traded, up from 
Thursday’s 43.44m. 

TAIPEI finished slightly 
higher, recovering from Thurs- 
day’s sharp correction, and 
brokers commented that the 
market would continue to con- 
solidate below the 7,000 level. 


The weighted index finished up 
40.40 at 6JK0.28, for a week’s 
loss of 0.7 per cent. Turnover 
was thin at T$49.4bn. 

The plastics sector supported 
gains, with Union Petrochemi- 
cal rising T$4 to T$68J>0 and 
Taiwan Polypropylene up T$5 
to T$83.50. 

MANILA maintained its posi- 
tive tone helped by strong gold 
prices. The composite index 
advanced 25.00 to 2J5936 on 
volume of 3.7bn shares worth 
1.90bn pesos', after 5.26bn 
shares worth 4.67bn pesos on 
Thursday. The week’s rise was 
0.6 per cent 

Philex Mining led second-line 
gains, rising nearly 7 per cent 
to 3.10 pesos. 

BOMBAY trading was aban- 
doned after a fire broke out in 
a building adjacent to the 
bourse. 

Trading stopped after mid- 
session when tiie BSE 30-share 
Index was 44.75 higher at 
4,49&53, a 16 per cent fell over 
the week. 


SYDNEY was slightly weaker 
but the decline was moderated 
by a rise in gold issues. The All 
Ordinaries Index dropped 0.5 to 
2,027.7, down 1.5 per cent over 
the week. 

The gold Index supported 
sentiment, with the index ris- 
ing 56.3 to a six-month high of 
2,386.5. Among gold stocks. 
Placer Pacific added 15 cents to 
a seven-year high of A$4.05, 
and Poseidon Gold rose 22 
cents to a seven-month high of 
A$4.04. Newcrest Mining rose 
17 cents to A$6JJ5. 

The All Industrials index fin- 
ished 2.0 lower at 2J172.0, while 
the All Resources edged 0.7 
higher to 1,402.0. Volume was 
185.9m shares. 

BHP lost 14 cents to A$19.74 
following lower than expected 
first quarter results. 

WELLINGTON made ground 
although volume was light. 
The NYSE -40 capital index 
added 14.10 to 2,080.53, a 
loss of L4 per cent across the 
week. 


LONDON EQUITIES 


UFFE EQUITY OPTIONS 


RISES AND FALLS 




_ 

cat 

— 


Pub 

- 

Optm 


Ori 

Jten 

Apr 

Oct 

Jaw 

4jr 

MM Deuce 

5*0 

42 


- 

3W 

_ 

- 

rS74) 

589 

11H 

- 

- 

23 

- 

- 

Agri 

260 

15M 

22K 

29% 

fi 

14 

18% 

CX7 ) 

280 

5% 

13 

19% 

17% 

25% 

30 

flSOft 

KO 

41i 

714 

8% 

2W 

5 

6 

rei ) 

ro 

ra 

3 

4% 

10 

II 

12 

BriMwaye 

380 

22 

32 

*214 

6% 

IB 

20% 

(*373) 

390 

GH 

1714 

28 

23 

32 

36% 

taaitaM 

420 

21» 

34 

43)4 

9 

19 

26 

r«i ) 

460 

1 

4 

8% 

89 

88% 

91 

Boob 

500 

34tt 

44 

55 

4 

14 

21 

rS2B 1 

550 

B» 

1814 

31 

sa 

«% 

46% 

BP 

390 

IBM 

2914 

37 

7% 

15% 

21 

rasa) 

420 

5 

*5)4 23)4 

28 

3254 37J4 

&S{te Stoi 

160 

10 

MW 

20 

4% 

B% 

11% 

na«) 

180 

tv, 

6W 

11% 

17% 

20%: 

22)4 

Baas 

500 

48 

55 i 

B0% 

4 

15% 

19% 

rssa ) 

550 

13 

22W 

32 

21H 

39% 

45% 

Cttnaan 

390 

77V, 

40M 

SZ 

6 

19 

25 

i 

420 

iiK2 m 

37 

23% 

34 ; 

Jfl% 

CounmAb 


10 

32 

41 

11% 

M : 

28% 

r«2i 

500 

4rt 

14% 

24 

41 

50! 

S3% 

CBnirolWoo 

433 

18 

36 

*1% 

11 

19 

3) 

rw) 

543 

4 

13% 

raw 

48%. 

51% 

64 

n . 

800 

39)5 

82% 

raw 

12 

27 

41 

1*823 ) 

850 

13»35ft! 

50% 

V 

53 

68 

Khgfldier 

4B0 

32» 

4714! 

50% 

7% 

16%; 

23% 

P481 ) 

500 

12 

25 : 

m 

26 

38 

43 

Lend Stax 

600 

27H 

38W 

St 

6W 

16%: 

n% 

(VIS) 

650 

014 

1414 

27 

38 

48% 

«% 

MariB& S 

390 

2414 

13 

42 

4 

10% 

14% 

(MOB) 

420 

8 

17% 

28 

17% 

25 

29 

KatWust 

460 

2Btt 

41% ! 

51% 

8 

18% 

SB 

f-477 ) 

600 

8 

21 : 

n% 

29 

36 

50 

Satalxxy 

390 

IBM 

so : 

aw 

9 : 

2i%: 

24% 

r397 | 

420 

5)4 

18% 

25 

28% 

38 

41 

9rt Trans. 

700 

14V4 

31% 

41 

18% 

28 39% 

(-706 ) 

750 

214 

13 ; 

20% i 

BOW l 

62% 72% 

anreinaa 

200 

11 

17 21% 

4M 

0 

13 


220 

214 

7W 

12% 

IB' 

21% 

25 

IteMgar 

n 

10 

12 ' 

14% 

2 

S 

5% 

C87 ) 

90 

3 

8% 

9 

e 

9% 

11 

Ww 

110 0 

am 

49 

89 

22 

42 

SB 

nmo) 

1150 

Bit 

26 

46 

58 

T1»85% 

zeoecB 

900 

37W B1W : 

ra% 

11 

24 

39 

razaj 

850 

12» 

34% 47%; 

38% 

50 

66 

OpOtn 


80* 

Fdb 1 


HD* 

h® 1 

Hay 

Grand Mel 

390 

28: 

34% 41% 

ioh: 

21% 

24 

r«o» 

420 

3 

8' 

(4% 

63 i 

B9W 

70 

Uttmte 

140 

24 

28 

31 

2» 

4% 

6 

pise) 

160 

1K4 

18 28% 

9 

13 

1/ 

UUBtaariB 

300 

1414 

23 : 

20% 

14 

17% 

SB 

rani 

330 

4 

11 14% ; 

38% 

38 

46 

Optai 


Sap 

Dae 

Her 

Sep 

Dec 

Mat 

Ram 

no 

10U 

14% ■ 

17% 

i 

5% 

7 

rtiaj 

120 

214 

8K 12% 

4 

10% i 

12% 

OpBon 


Nw 

tab 1 

fol 

No* 

Feb 1 

Hay 


am too 460 28ft 45W BZrt 24 32ft 43 

(-4GS) MO 12* 23 35)4 SO 57W 66 

BATkxta 3M 37 a»4 S«H 7 12 21 

r*is} 4» wh « am mmhssk 

BTR 300 23W J2S4 37 6H lift 17 

(*313 ) 330 8M IB 72sfi 22M TJ 33VJ 

BrtTAaaw 360 & 27» 34w 7 15 18 

(*371 ) 390 8 t3 26 23H 32H 3S 

Cattail SOI «0«H57» *> 3 7 13H 

450 UK 32 37K !5H 2IM 30 


Earn aec 750 46H B7% 81 2B» 4049M 
1*783 ) BOO 23H 44 87 S4K B9 76» 

Wmw* 420 37h 54 5H 11 17k 

t*4S1 ) 460 14 26 SQM 23 29 37 

GEC 280 17 M 27W 7 11H 14M 

(*297 ) 300 7 12 18 18 2ZH 2S 






CMS 




Ms 

-1.. . 

onte 


Nov 

tab 

Hat 

Nov 

tab 

m 

Huh 

220 

18% 

20 

22% 

4% 

7% 

ii 

(•230) 

240 

5% 

9% 

13 

14% 

10 

21% 

Lasmo 

134 

23 

- 

- 

3 

- 

- 

P«1 

154 

10 

- 

- 

11 

- 

- 

Lucas Ws 

180 

19% 

23% 

27 

6% 

9 

13 

n») 

200 

8 

14 

17% 

16% 

20 

23% 

P 6 0 

600 

M 

71 

79% 

9 

17% 

30% 

(-837 ) 

650 

23 

41 

82 

29 

30 

55 

Rtinafin 

130 

13 

M 

am 

7 

ion 

14% 

(183) 

200 

4 

7 

12 

SI 

23% 

25% 

Prudenftfl 

300 

14 

20% 25% 

13 

18% 

23% 

f3M) 

330 

3% 

8 

13 

34 

38 

43 

H1Z 

950 

54% 

7B 

89 

16 

2B 

43 

<*888 1 

900 

25% 

49% i 

52% 

39 

51% 

67 

HKtewJ 

500 

25 

39% 

48% 

19 

25% 

39% 

rsn > 

550 

7 

19%: 

27% 

54 

67% 

72 

Royal taste 

250 

23% 

32% 

37 

8% 

13% 

18 

PS72) 

280 

12% 

22%; 

28% 

17% 

23 

28% 

Tosco 

220 

17% 

23% 

29 

6% 

10% 

14 

PZ32) 

240 

7 

13% 

18% 

14% 

20% 

24% 

VOdrian 

183 

Zf 

25% 

— 

4 

7%. 

- 

(198) 

200 

11% 

w%: 

21% 

11 

15% 

18% 

warns 

32» 

17% 

ta 

— 

8% 

- 

— 

(*331 > 

354 

5% 

- 

- 

27 

- 

- 

OpOon 


Oct 

■lam 

Apr 

Oct 

Jan 

Apr 

BAA 

475 

19 

28 : 

38% 

9 

17 

20% 

(*‘*82 ) 

5110 

8% 

16% 

2B 

23 

30% 

34 

Donee In 

480 

44 

SO 

63 

3 

13% 

15% 

T437) 

500 

18 

28%: 

34% 

15 

29% 

33 

Octal 


ta 

Den 

Her 

Sta 

Dec 

liar 

Abbey Ns8 

390 

7 : 

23% 32% 

G 

16% 

28 

(-390 ) 

420 

I 

9% 

19% 

32 

36 

«% 

Aortal 

25 

5 

8 

8% 

1 

1% 

2% 

r») 

X 

1 

3 

4 

2 

4 

5 

Bstsays 

550 

10% 

35 

48 

4 

21 

32 

{*557 ] 

600 

1 

13%: 

25% 

45% 

51 1 

B1% 

Bhia ditto 

280 

18% 

27% 

SB 

1 

7% 

13 

(-775 I 

280 

3% 

16 24% 

7% 

ibm: 

22% 

Brtfch Baa 

300 

5% 

14 

22 

4% 

18 

20 

(*301 ) 

33Q 

1 

8 11%: 

30%: 

36% 

41 

DCrata 

18Q 

M : 

23% 28% 

1 

7% 

12 

1*191 ) 

200 

1% 

12% 

16 

11 

17% 22% 

Httadmn 

in 

20 

23 

27 

1 

3 

9% 

P78) 

180 

2 

o% : 

15% 

4 

11 

13 

Lota bo 

130 

6% 

12% 

17 

2 

7 

11 

H34) 

140 

1% 

7 

12 

8 

13 

IB 

tut Paw 

420 

39% 

48 

87 

1 

8% 

15 

r«e i 

460 

s: 

23% 34% 

9 

25% 

3C 

Scot nmr 

360 

30 

43 

59 

1 

9% 

13% 

(-387 1 

390 

s : 

25% 33% 

3 

22 : 

ffi% 

Seen 

m 

9% 

11%' 

18% 

1 

4 

5 

(-107) 

no 

1% 

B 

fi 

5 

9 

IOH 

Farm 

zoo 

is : 

24% 

29 

1 

5% 

9 

rein 

220 

7% 

1317% 

8 

15 

18% 

Tarmac 

140 

ID 

15% 21% 

1% 

9 

11% 

(*147) 

160 

1% 

8% 12% 

15 

22 23% 

Thom 96 

950 

61 

77% 

99 

1% 

16% 

29 

CBOSf 

too 

9 

48 

81 

13% 

39 

52 

tsb 

200 

16% 

23 27% 

1 

0 

11 

(*214) 

220 

2 ' 

11% 16% 

8 

is : 

21% 

rantow 

200 

17! 

24% 28% 

1 

s 

8% 

(VIS) 

220 

a ■ 

(2% 

19 

a 

14 

19 

Mtcorne 

B30 

sa 

85 

98 

2 

22 

34 

res3) 

700 

B 

34 

68 

22 

45 

58 

□pan 


Oct 

-Ian 

Apr 

OCt 

Jn 

Apr 

Boo 

550: 

39% 

57 

89 

11 

23 

34 

(*573) 

BOO 

11 %: 

M%43% 

37 

49% 

n , 

rang* 

700 

30 

5B 

77 2BU 

46 

87 

(-702 ) 

750 

11%: 

D% 55% 1 

58%' 

74% 

97 | 

Reuters 

462 

21 

- 

- 

13 

- 

- 

("485 ) 

<75 

13% 

- 

-1BK 

- 

fey | 

Option 


Ha* 

tab 1 

Hey 

NM 

tab 1 


Mte-ffcyoe 

in 

23 

27 

30 

2% 

8 

B 

ri77) 

190' 

10% 

10% 

19 

10 1 

14% 

18 1 


... On FHday 

Man Mto 


Santa 


• On the week — — 
Rtam Fata Sara 


Brfttah Funds 

B1 

2 

7 

100 

112 

48 

Other Fixed Intranet 

1 

0 

14 

a 

7 

62 

Mineral Extraction 

07 

48 

81 

301 

299 

388 

General Manufacturers 

100 

160 

385 

430 

908 

1388 

Consumer Goods 

37 

37 

113 

150 

259 

526 

Services 

S3 

104 

330 

277 

688 

1323 

UlHtles 

13 

23 

9 

70 

102 

53 

Hnenctata 

88 

100 

198 

318 

563 

943 

Investment Trusts 

S3 

92 

315 

178 

902 

1i50 

Others 

32 

47 

23 

134 

285 

09 

Totals 

501 

613 

1,475 

2.054 

4,123 

6,784 


Data baa ml on Ian conpaniaa Rarad on iti» London film Some*. 


TRADITIONAL OPTIONS 


First Darings 
Last Doofinga 


September 12 Expiry 

September 23 Setflament 


December 8 
December 22 


CaBK Aran Energy, Bfcfay (Jj, BTR Wlrta. 98/88, Bulgln A, Maxi, utd. Energy Put: 
Next 

LONDON RECENT ISSUES: EQUITIES 


taaue 

price 

P 

Amt 

paw 

«4> 

M(L 

cap 

Pnj 

1994 

Ugh Low Stock 

Ctosa 

Brice 

P 

+/- 

Net 

dv. 

Oh. 

CO*. 

Os 

yu 

P/E 

net 

100 

FJP. 

i&i 

102 

95 Beeoon Inv Tst 

95 


- 

- 

- 

_ 

- 

FJ>. 

1-52 

48 

39 Da Warrants 

40 


- 

- 

- 

- 

§125 

F.P. 

184 

130 

123 Compel 

123 

-1 

WN4.0 

2.1 

4.1 

112 

- 

FP. 

1J0 


1 Conti Foods Wrts 

1<4 


- 

- 

- 

- 

- 

FJP. 

24.4 

02 

61 Emagtag Mkts C 

61 


- 

- 

- 

- 

120 

FP. 

31.2 

120 

118 independent Parts 

119 

+1 

LN44 

2.1 

42 

14.4 

80 

F P. 

24.1 

05 

70 Hyland 

85 


LNXS 

1.7 

5.1 

14J> 

ra* 

FP. 

3L39 

44 

27 Star Vlkts B8AM 

29 

+1 

- 

- 

- 

- 

- 

FP. 

11BJD 

379 

374 Templeton E New 

375 

♦1 

- 

- 

- 

- 

- 

FP. 

12.6 

212 

102 Do. VMs. 2004 

204 


- 

- 

“ 

- 


RIGHTS OFFERS 


Issue 

price 

P 

Amount 

paid 

143 

Laura 

Reran. 

date 

1994 

Hjjti Low 

Stock 

475 

Ml 

4/10 

59pm 

15pm 

Commercial Union 

360 

M 

21/10 

48pm 

13pm 

EMAP 

160 

NS 

17/10 

3pm 

6pm 

Jermjn Irw. 

252 

M 

11/11 

34pm 

IStTapm 

Weir 


Closing *«■ 
price 
P 


24pm +3 
13pm -2 
7pm 

l2*2Pm J 2 


FINANCIAL TIMES EQUITY INDICES 

3op 23 Sep 22 Sop 21 8ep203ap19 Yrogo High "Low 

Ordnary Share 2347-2 23402 2337.6 23588 2389-5 2309.1 27138 2240.6 
Ord. db. yield 
Earn yid. 96 ful 
P/E ratio net 
P/E ratio ni 

Tor 1004. OnSrary Stan Index shea OT Xi tado a Mgh 27134 2/024H: kw 04 2B/B/40 
FT Onftwy Stm Mm btm dot 1/705. 

OnBmay Sim howly changes 
Open OOP 1080 11-00 1000 


437 

439 

4.40 

436 

430 

4.03 

4.48 

3.43 

830 

6.34 

630 

635 

8.13 

4.75 

634 

3.92 

1731 

1730 

1634 

17.07 

17.41 

2638 

33.43 

16-94 

17.78 

1737 

1731 

1739 

1830 

24.79 

3030 

17.09 


13.00 1480 1580 1080 High Low 


2338.7 2326.6 23338 23408 23468 2352.7 23518 23478 23478 23512 2322.5 
Sep 23 Sop 22 Sep 21 Sep 20 Sep 19 Yr ago 


• UnOertylnB security price. Piamuma ttxiwn i 


SEAO bargains 23814 23^63 24811 24^55 

Equity turnover (Em)t - 13378 13558 1333.5 

Equity twgtenaf - 20204 27.107 27,071 

Shares traded (ml)t 4898 4758 496.4 

ttaduang hba-martet Budnata and ovaaeos tunxiw. 


24812 26842 

9508 1459.9 

26841 30,107 

827.0 481.1 


8eptembar 2S.Total eamracta: 41,787 Cals: 
16834 Pubc 25.453 


FT GOLD MINES INDEX 


*p 

22 


%CUg Sap 
on day 21 


fop 

SO 


Ynr 


Grata At 
liaUft 



27UU 

*07 

296051 224738 189437 

131 

8367,48 107X83 

343736 

-13 

348738 344Q.14 2237.14 

432 

348738 220818 

2835.09 

+23 

277097 2758.41 18B8J7 

133 

901339 192936 

1B5321 

+1J 

182230 1821.92 150832 

0.71 

203935 1458.45 


SaoMUaUnOti M67 


Capyrittf. The Rnandal Tanas UmMri 1084. ___ 

Hun h HCMea Mxm nnur m axnpanles. Beta US Dotan. Baaa ttuc lOOOJU 31/1092- 
neMeaem OoU Mnaa Indnc £3: 284 ^ ; -U pdrta; Vaor ego; ITSJfPWta 
Laeal prices umweaUa tx Ms adden. 


FT/LES ECHOS 

The FT can help you reach additional 
business readers in France. Our link with the 
French business newspaper, Les Echos, gives 
you a unique recruitment advertising 
opportunity to capitalise on the FTs European 
readership and to further target the French 
business world. For information on rates and 
further details please telephone:.;.-. . 
Philip Wrigley on +44 71 8733951 






,vi ,va 




































































































































Consumer group finds low-temperature damage Government 

Unilever detergent comes pl ? n , to i ifl 

o rphutp for 

under renewed criticism private 

By Diane Summers, Unilever was attempting in the further tests, which involve a flpflCSiniKk 

Marketing Correspondent UK to play down an admission on panel of consumers wearing IJrlw'JUvJiVJUSl 

mil ■ ■■■ i ■ J !■■■ tur Ufa knlrn nlnflinn flmn fnlriviiV fliinM Am* 


By Diane Summers, 

Marketing Correspondent 

Unilever, the Anglo-Dutch group, 
suffered a fresh attack on its 
□ew-generation washing powder 
yesterday. 

The influential Consumers' 
Association in Britain said the 
first version of the detergent pro- 
duced “substantial damage to 
some clothes” in laboratory tests, 
even when “normal recom- 
mended low- temperature pro- 
grammes" were used. 

Unilever admitted on Thursday 
that the detergent - sold in 
Britain as Persil Power and in 
continental Europe as Omo 
Power - was "defective", but said 
problems arose only if U was 
used at high temperature. 

The original version was 
launched this spring but replaced 
in June after Procter & Gamble, 
arch- rivals in the £6bn-a-year 
European detergent market, said 
tests by it showed the detergent 
could “rot" clothes. The latest 
version contains less of the man- 
ganese catalyst “accelerator" 
which is the powder's patented 
ingredient. 

Yesterday's attack came as 


Unilever was attempting in the 
UK to play down an admission on 
Thursday by Mr Morris Tabaks- 
blat its Dutch coohairman. that 
the company had failed to apply 
“appropriate safeguards" in tests 
before the launch. 

Unilever said yesterday that 
laboratory tests gave only a dis- 
torted picture of how the deter- 
gent performed. “The defect the 
chairman referred to was only 
evident under extreme and 
destructive laboratory condi- 
tions; it was quite irrelevant in 
real conditions in consumers' 
homes. This product underwent 
field tests among 60,000 consum- 
ers throughout Europe over a 
period of two years.” 

However, Mr Derek Prentice, 
Consumers' Association assistant 
director, said it was “nonsense" 
to claim that it was only extreme 
conditions which caused damage. 
"Our independent tests on behalf 
of the consumer have shown that 
there can be substantial damag e 
to some clothes, under Ear from 
extreme laboratory conditions 
designed to imitate normal wash- 
ing, as far as possible, without 
wearing." 

The association is conducting 


further tests, which involve a 
panel of consumers wearing 
clothes and then taking them for 
laboratory washing. These tests, 
unlikely to be complete before 
December, will be on the old and 
new formulations of the product 

"Thousands of consumers are 
still using old and new formula- 
tions of the detergent" Mr Pren- 
tioe said. "They deserve a little 
more plain speaking from Uni- 
lever." 

Unilever said it believed very 
little of the original detergent 
was still in use It was "baffled” 
about why CA had intervened 
when its own tests were incom- 
plete. "We reiterate that any lab- 
oratory tests do not reflect real 
life.” it said. 

Mr Tabaksblat who made his 
comments in China, provided the 
first explanation from Unilever of 
the problems with the powder. 
He said on Thursday: "I think we 
were very enthusiastic about an 
exciting new product . . . and 
did not look closely enough at 
the negatives. Somewhere 
between research and marketing, 
something went wrong ... un- 
der the normal pressure to be 
first to the market” 


Brussels may act to curb bank 
charges for money transfers 


By Emma Tucker in Frankfurt 
an dor Oder 

European Union banks may face 
increased pressure to limit dou- 
ble charging and hidden costs on 
internal cross-border payments 
and speed up the rate at which 
they are carried out 

Such pressure, from the Euro- 
pean Commission, might take the 
form of an EU directive. It would 
be aimed at easing the costs on 
consumers and small businesses 
that rely on b anks to make trans- 
fer payments within the EU, and 
would remove an obstacle to the 
smooth functioning of the single 
market 

Mr Raniero Vanni D'Archirasi, 
commissioner responsible for the 
single market told ministers at a 
meeting in eastern Germany that 
the pressure on banks to stop 
double charging - imposing fees 
at the sending and receiving end 
of a transfer - had to be stepped 
up. 

However, he sought to allay 
bank fears by emphasising that 
any legislation would not be 
"heavy or intrusive” but the min- 


imum necessary to improve the 
current situation. 

The need for action follows a 
survey, ordered by the Commis- 
sion, which found that many 
banks were not complying with 
EU targets, set at the rad of last 
year, on double charging trans- 
parency and the time taken to 
complete a transfer. 

The targets decreed that cross- 
border transfers should not 
attract double charging and that 
banks had to provide clients with 
complete written information on 
the costs involved in payments. 
An initial report last year said 
charges were duplicated in 43 per 
cent of transactions. It found 
found that “on average a 100 ecu 
cross-border transaction cost 20 
ecus”. 

Banks were also required to 
complete the cross-border trans- 
action on the first working day 
after receiving the request. 

Mr Vanni D'Archirasi's inclina- 
tion to take legislative action is 
likely to lead to a row in the 
Commission. Mrs Christiana 
Scrivener, commissioner respon- 
sible for consumer affairs, 


believes a voluntary code of con- 
duct for banks would be more 
appropriate. 

The banking lobby has also 
mounted an effective campaign 
against legislation, arguing that 
regulation might result in banks 
withdrawing their services alto- 
gether. They argue that tough 
requirements on speed might 
cause banks to refuse to execute 
payments to EU countries with 
less efficient payment systems. 

The European Community 
Banking Federation wrote to Mr 
Vanni D’Archirasi in the summer 
urging pragmatic joint action 
between Hanks and the Commis- 
sion and objecting to a draft plan 
on cross-border payments. On 
double charging, the federation 
argued that the Commission 
should recognise the merits of 
offering customers a choice of 
charging arrangements. 

However, not all banks oppose 
legislation. Some believe that the 
present arrangements discrimi- 
nate against banks that stick to 
the guidelines. They would like 
legislation to make standards 
conform. 


By Norma Cohen, 

Investments Corre sp ondent 

The government intends to 
increase the rebate it will pay 
after 1997 to people who take out 
private pensions, to compensate 
for the high commission and 
charges levied by insurance com- 
panies. 

While the move will benefit 
personal pension holders, it is 
bound to be controversial 
because it protects insurance 
companies at the expense of the 
taxpayer. The rebate returns to 
personal pension holders a por- 
tion of the national insurance 
contribution they currently pay. 

Bat because the government is 
eager to encourage contracting- 
out through personal pensions, it 
is determined to press ahead 
with additional payments to 
cover providers’ costs. 

The government Actuary's 
Department is working out how 
much additional rebate will be 
paid. 

"The problem is that unless a 
rebate incorporates the costs of 
the provider, it will never be 
‘best advice’ to urge someone to 
contract out- of the state eant- 
ings-related pension scheme 
through a personal pension,” 
said one government official 
familiar with the discussions. 

The social security department 
said yesterday it had decided not 
to use its powers under personal 
pensions legislation to cap insur- 
ance company charges. 

Instead, it intends to rely on 
the regime due to be introduced 
in January, which will disclose 
to customers how much they are 
paying in charges and commis- 
sions when they take out a per- 
sonal pension. 

Actuaries at W illiam M. Mer- 
cer and Co estimate that people 
who make no contribution to 
their personal pension other 
than the national insurance 
rebate pay between 4 per cent 
and 13 per emit of it to the insur- 
ance company in costs. However, 
some life insurers also impose a 
flat-rate monthly charge of £2 to 
£4 - revised upwards annually, 
usually according to inflation. 

The roughly 40 per cent of per- 
sonal pension holders who make 
additional contributions to their 
fend have such monthly charges 
levied automatically. In addi- 
tion, they pay annual fund man- 
agement fees. 

A personal pension holder 
earning a rebate of £100 per year 
could lose as much as £61 of it in 
charges. 


Ukraine and IMF reach initial economic agreement 


Continued from Page 1 

Ukraine in the cabinet of minis- 
ters and the communist-domi- 
nated parliament would support 
the deal, which, he said, had cre- 
ated “an unprecedented political 
consensus on the need for 


reforms in Ukraine”. Mr Yush- 
chenko said that Mr Vitalii 
Masol. the Ukrainian prime min- 
ister, was likely to sign the agree- 
ment with the IMF. 

The agreement with the IMF, 
and the brightened prospect for 
far-reaching reforms in Ukraine. 


suggest that the country’s pro- 
vincial and often instinctively 
conservative political 9Utes 
have realised that without an 
improvement in Ukraine's col- 
lapsing economy the nation is 
unlikely to survive as an inde- 
pendent state. 


Professor Anders Aslund, the 
Swedish economist who has been 
advising the Ukrainian govern- 
ment, said that "there is now the 
best chance yet for a commit- 
ment to reform by the Uk rainian 
government. There is now the 
clear will to move forward.” 




Europe today 

A vigorous low pressure system will 
circulate ran and cloud around the Gulf of 
Biscay. All western France will have rain, 
as wdl southern Britain. There will be a 
bond of rain and thunder storms over the 
Alps, southern France and the western 
Mediterranean. Much of continental 
Europe win be influenced by high pressure 
over Germany and Poland. It will remain 
dry and mainly sunny with temperatures 
from 1 SO in northern Europe lo 30C in 
southern Italy and Greece. An active low 
pressure system over northern Norway will 
cause rather unsettled conditions over 
northern and western Scandinavia. 

Five-day forecast 

The low pressure over the Gulf of Biscay 
will move across the Low Countries 
towards southern Scandinavia. Meanwhile, 
an area of high pressure will build west of 
Ireland. This wffl cause Increasingly 
unsettled and coaler conditions in western 
Europe. A strong north- westerly flow win 
develop over the North Sea and 
Scandinavia. Sweden and Norway will 
have plenty of rain next week and it win be 
windy at times. 

TODAY’S TEMPERATURES 


FT WEATHER GUIDE 


1020 1010 




J 5^7 ** 


r-.u-i''-’ L-— 
v I B ~ .-j — -r 


Wjr:- 


: r-;J 




• 18 7 


A 






24 kU 


23 









Maximum 

Being 

am 

26 

Caracas 

shower 


CcWm 

Belfast 

fair 

18 

Cardiff 

rein 

Abu Ohara 

sun 

41 

Belgrade 

loir 

26 

Casablanca 

shower 

Accra 

cloudy 

32 

Berlin 

tor 

23 

Chicago 

rain 

Algiers 

shower 

27 

Bermuda 

fair 

S3 

Cologne 

tor 

Amfilorim 

(air 

24 

Bogota 

lair 

19 

Dakar 

Shower 

Athens 

lav 

29 

Bombay 

fair 

31 

Dallas 

sun 

Atlanta 

thund 

24 

Brussels 

fair 

25 

Delhi 

nun 

8. A«P99 

thund 

IB 

Budapest 

fair 

24 

Dubai 

sun 

B.ham 

ShOwOr 

21 

CJiagan 

bur 

18 

Dutan 

Shower 

Bangkok 

tar 

33 

Cairo 

sun 

33 

Ojbrovnik 

tor 

Hwrotorw 

shower 

22 

Capo Town 

cloudy 

IS 

Edinburgh 

tor 


No global airline has a younger fleet. 

Lufthansa 


| WarnifrentAA Cold front Jk. Jk. HW speed In KPH " - 

Staianon at 12 GMT. Temperatures maxmunt tar day. F oreca st s by Mateo Consult ofOw Netherlands 

Caracas shower 31 Faro fair 22 Madrid to IB Rangoon 

^ A? Frankfurt fas 26 Majorca shower 25 Reykjavik 

Casablanca shower 23 Geneva shower 23 Malta Mr 30 Rio 

Chicago rafri 17 Gibraltar Fair 23 Manchester shower 21 Rems 

cotogne tab- 26 Glasgow fair 17 Mania Mr 32 S. Frsco 

Dafcir shower 28 Hamburg tar 22 Melbourne shower 17 Seoul 

Mbs sun 22 Helsinki fair 10 Mexico City lor 21 Singapore 

Ddhi sun 34 Hong Kong rain 29 Mom, Ur 32 StocWidkn 

S™" * jn *9 Honolulu shower 31 Man shower 23 Straabowg 

£**" 1® Istanbul fair 26 Montreal shower 17 Sydney 

Dubrovnik fair 2fl Jakarta fair 32 Moscow Mr 19 Tangiw 

fair 16 Jersey ra in 17 Munich Mr ZS TeiAviv 

Karachi Mr 32 Nairobi Mr 27 Tokyo 

Kuwait aun 37 Naples fair 30 Toronto 

l_ Angeles sun 27 Nassau thund 32 Vancouver 

Las Palmas Mr 26 Now York shower 22 Vmka 

fair 23 Nice shower 24 Vienna 

Ustofl Mr 21 Nicosia sun 35 Warsaw 

London fair 22 Oslo Mr 18 Wastifagior 

Lux.bourg cloudy 25 Parts shower 23 WeBngton 

Lyon rain 24 Perth Mr 22 Winnipeg 

Madera shower 25 Pramte fc* m 7urfeh 


THE LEX COLUMN 


Growth accelerates 


At first glance yesterday’s second 
quarter UK growth figures suggest 
consumers have been literally tighten- 
ing their belts since April's tax rises. 
Spending on food fell a striking 3-6 per 
cent during the quarter. The usual 
worries over seasonal adjustment, 
however, mean such data must be 
taken with a pinch of salt The data 
may aisn again understate the savings 
rate, but the broad message is clear. 
Thanks not least to a robust export 
performance, the economy is growing 
at a rigorous clip and, despite a fell in 
teal disposable Income, individuals 
seem willing to reduce their net sav- 
ing to fmnnrg consumption. 

The question is whether this 
increased propensity to borrow 
reflects a lasting improvement in coo- 
I fidence. Perhaps tax increases have 
taken cash out of consumers' hands 
before they have had time to adjust 
their spending habits. If so, private 
consumption may soon decelerate 
markedly, especially now that base 
rates have risen. Despite yesterday's 
strong figures the authorities have 
grounds to wait a while before consid- 
ering another increase. 

Clearly, thoug h, the overall rate of 
growth will remain derisive. Even if 
consumer demand is not overheating, 
export-led growth still m«ms the out- 
put gap is dosing. Capacity nse is 
ti ghtening and manufacturers have a 
greater inclination to pass on cost 
increases. The authorities would 
almost certainly prefer growth closer 
to 3 per cent Easing it back to that 
level without trampling on consumer 
confidence in the process will be a 
delicate t*»ck 

Building societies 

Yesterday's UK Treasury document 
on building societies smacks of regula- 
tory capture. Though the aim is to 
solicit opinion about future regulation, 
the tone suggests support for further 
liberalisation with only token gestures 
on accountability. The paper is quick 
to point, for example, to the need to 
bar “obstructive” member-nominated 
directors. Doubtless society boards 
would like freedom without more 
responsibility, but one must also ask 
why the debate about deregulation has 
arisen in the first place. 

The market in which societies oper- 
ate is no longer just concerned with 
housing finance. What was once their 
main activity has been subsumed into 
a broader retail financial services 
industry in which the societies com- 
pete with banks. In the interest of fair 


FT-SE Index: 3028.2 (+7.0) 


Eurotunnel Units 

Share price (pence) 

600 r . 


450 


350 - j ai285p rTJv 


Jan . 1994 Sap 

Sauce: FT.OnpMa 

competition it would make sense for 
all players to come under the same 
regulatory framework. That might 
involve lifting restrictions an building 
societies, so that they can make syndi- 
cated loans to bousing associations. 
But it then becomes hard to justify a 
corporate structure which exempts 
them from paying dividends to their 
owners and makes them almost 
hwnumw to outside takeover. 

One step towards improved account- 
ability would be to require society 
boards to be elected by a general meet- 
ing with members’ votes weighted by 
size of deposit and length of associa- 
tion. Another would be to insis t that 
hostile takeovers are communicated to 
members immediately, not simply "at 
the next general meeting” as the gov- 
ernment is proposing. Alliance & 
Leicester already owns a bank, ft 
would be unsatisfactory if Lloyds 
Bank proved with its bid for Chelten- 
ham & Gloucester that banks are in 
effect barred from owning a society. 

Eurotunnel 

The muted reaction of Eurotunnel's 
share price to this week's news that a 
full shuttle service for drivers and 
cars will be phased in from November 
is understandable. The tunnel has 
been dogged by colossal risks ever 
since the project was conceived. Now 
the worry is focused on the risk that 
the project will not be able to generate 
the returns necessary to cover its 
operating costs and to service a fend- 
ing requirement calculated to be 
£10.1bh at its peak. As the maximum 
commitment Eurotunnel has teased 
out of its bankers is £10.5bo, there is 
only limited room for manoeuvre. 


"We moved to York 
because we don't believe London 
is the centre of the universe. 
Transport and communications are 
excellent, we found uieal premises for 
our work, and we are saving money 
on selection of staff. " 

Jane Carter 

General Secretory 

United Nations Association [International Service) 


However, don' f just 
fake oar word tar it. 

lake die train free and see for yourself. 


f Simply complete the coupon and we'H send you o free First Class 
return rail ticket so you can explore the York option for yourself. 

^^Name: 

f Position: 



YORK 


THE DISTINCT ADVANTAGE 



On the basis of assumptions made In 
. April, when the project was rescued 
with a rights issue, Eurotunnel hopes 
to make a small pre-tax profit in 2002 
and a declare a dividend for the fol- 
lowing year. But some of the assump- 
tions on revenues and interest rates 
made then already look questionable. 
For example the delay in opening the 
shuttle service has meant that Euro- 
tunnel missed the peak summer sea- 
son; details of the resulting shortfall 
will be disclosed at the interim stage 
next month. Eurotunnel may soon 
breach its banking covenants, possibly . 
requiring shareholders to stump up 
fresh equity for the fourth time since ; 
the project was launched. 

Completion of the tunnel is i 
undoubtedly a historic achievement 
which may one day prove lucrative to 
its owners. But the debt burden is so 
great that this generation of share- 
holders is unlikely to enjoy a bonanza. 

New issues 

This has been a bad week for new 
issues. On Thursday, the share price 
of MDZS. a software group floated in 
March, halved after it reported profits 
below expectations. The day before 
Aerostructures Humble, an engineer- 
ing company floated in May, saw its. 
shares fall 40 per cent after a profits, 
warning. Both companies were opti- 
mistic about prospects in their pro- 
spectuses. What should investors con- 
clude from such fiascos? Certainly not 
that new issues are to be avoided. 
While new issues are not the easy 
route to a quick profit that many used . 
to think , there is no need to swing to 
the opposite extreme. On average, 
companies floated this year have 
slightly outperformed the market 

Investors should also resist the 
temptation to call for more regulation. 
The regulations are already tough 
enough. Under the Financial Services 
Act, companies and their advisers are 
liable for damages if they are negli- 
gent In preparing a prospectus. Of 
course, it is hard to prove negligence, 
meaning investors have little practical 
recourse. But tighter regulation would 
tie companies and their advisers up in 
more red tape without giving inves- 
tors any complete guarantee. Nothing 
will change the fact that equities are a 
risky investment The best sanction Is 
to keep a close eye on the banks that 
sponsor issues that flop and avoid 
their deals if a poor track record devel- 
ops. For the record, MDIS’s bank is 
Barings, while Aerostructures’ is N M 
Rothschild. 







SECTION II Weekend September 24/September 25 1994 


D-Mark, D-Mark, ixber alles? 


When Germany was reunified, Europe trembled. David Marsh 
investigates whether those fears are being borne out 



V isions of a united and aggres- 
sive Germany, economically 
far stronger than the Third 
Reich, have worried many 
others besides Lady Thatcher, 
the former British prime minister. 

After the collapse of the Berlin Wall in 
November 1989. such fears were voiced 
throughout Europe. They were a strong 
motive behind the plan sponsored by the 
French government and the European 
Commission to create a single European 
currency under international control, and 
so limit the new Germany’s economic 
independence. 

But monetary union appears increas- 
ingly uncertain, not least because of 
doubts in Germany; meanwhile the Ger- 
man economic machine is moving once 
again steadily forward. 

So how long will it take for the eastern 
^ and western parts of the nation to grow 
together? Will the Germans rediscover a 
sense of national identity after 40 years of 
division? And then, most important, a nd 
potentially alarming; will the Germans 
again dominate Europe? 

Four years after the two Germanys were 
united, the answers are starting to crystal- 
lise. First, although economic growth has 
resumed after the early shock of unifica- 
tion, eastern Germany will not catch up 
with the west until 2010 at the earl ies t - 
far later than the optimists (incl ud ing 
Chancellor Helmut Kohl) forecast in 1990. 

Second, national solidarity seems to 
have diminished rather than strengthened 
since 1989. Mass unemployment in the 
east, and the heavy cost to west German 
taxpayers of DMISObn in subsidies paid 
annually to the east, have caused resent- 
ment on both sides of the Elbe. 

A recent opinion poll indicate! that only 
28 per cent of Germans in the east, and 47 
per cent of those in the west, regarded the 
German nation as “one people” - many 
fewer than four years ago. The poll also 
showed a strong consensus that the 
D-Mark should not be abandoned in favour 
of a single Euro-currency. 

Third, united Germany is not in a domi- 
nant mood - nor does it look likely to be. 
Although larger than the old Federal 
Republic, it is weaker in political balance, 
in economic structure, in ability to govern 
itself, in capacity to exert patient influ- 
ence on its neighbours. Indeed, a wish to 
preserve the D-Mark seems to symbolise a 
ibsiite for national continuity rather than 
the dominance of others. 

£ Some of the anxieties of Germany’s 
' neighbours were allayed by the greater 
than expected problems which it faced 
after unification. The country is neither 
flourishing, as Kafil forecast, nor domi- 
nant, as Thatcher feared. This summer. 
Douglas Hurd, the British foreign secre- 
tary told the German magazine Der Spie- 
gel that his former boss’s Tears were “her 
chief foreign policy* mistake after the fall 
of the Berlin Wall.’’ 

Indeed, Germany’s energies will be 
largely absorbed by its domestic chal- 
lenges at least until the end of the cen- 
tury- During four decades of division, the 
Federal Republic, closely integrated with 
the West, grew wealthy, comfortable and 
indecisive. U became a country of effi- 
ciency and self-effacement its speciality 


was no longer motorised war but moto- 
rised holidays. As the events of 1989-90 
showed, it was not a country that could 
carry out the radical reordering of 
national priorities made necessary by the 
huge task of unification. 

Although Kohl's stature gained greatly 
from the triumph of unity, it was weak- 
ened by the difficulties which followed. If 
the chancellor's position is further under- 
mined in the October 16 general election 
opportunities for vigorous government 
leadership could diminish farther. 

Those still anxious about Germany 
might consider the following statistics: In 
1970, West Germany accounted for 29 per 
cent of the total income of the 12 countries 


now in the European Union. In 1993 united 
Germany’s share of the ElTs income was 
slightly lower at 28 per cent United Ger- 
many's share of world output last year 
was about 7.5 per cent compared with 9 
per cent in 1970 for West Germany alone. 
(The US’s share last year was 27 per cent 
Japan’s 16 per cent) 

The takeover of moribund East Ger- 
many has made the Federal Republic - for 
the time being - a poorer country. 

A good place to see how Germany has 
been transformed is the town of Jena, in 
Thuringia, in eastern Germany, the home 
of Carl Zeiss, the world-famous optical 
group. This was one of the successes 
among the German Democratic Republic’s 


battered industrial enterprises. Tower 
cranes soar over rubble-strewn building 
sites, while excavators and sparkling new 
glass offices glint against the still-drab 
background of pre-war apartment blocks. 
Zeiss has benefited from DM3bn in public 
sector grants, yet - as the result of mass 
layoffs since unification - unemployment 
in the town has risen to nearly 30 per cent 
Jena's future Is unquestionably brighter 
than five years ago. But people shopping 
in the sunshine last week made no secret 
of their disillusionment. A middle-aged 
dental assistant spoke of the “misery" of 
her unemployed friends, while a young 
pram-pushing mn tbar said east Germans 
had been unprepared for the hardships 


that followed unification. 

Lothar SpSth. the chairman of Jenoptik, 
the company set up by the Thuringian 
state government to run part of the old 
Zeiss activities, admits that the Bonn gov- 
ernment underestimated the size of the 
task. Three years ago, Spdth, a one-time 
ally of Helmut Kohl and former premier of 
the prosperous west German state of 
Baden-Wurttemberg, took on the job of 
trying to attract hi-tech investment to 
Thuringia. 

In a coolly-furnished office high in Jen- 
optik's renovated headquarters in central 
Jena, Sp5th says west Germans must 
accept the need to subsidise the east for 10 
to 15 years, although at a declining rate. 


Spath says, with a Swabian chuckle, 
that west Germans' reluctance to take 
decisive action to help overcome cast Ger- 
many’s difficulties may have added 
DMlOObn to the reunification bill. How- 
ever, this has brought some advantages. 
“Our neighbours would have been far 
more nervous if, with typical German 
thoroughness, we bad all been read y to 
make big sacrifices. I am not unhappy that 
there was no great national enthusiasm. It 
is good that wc can point out to foreigners 
that the west Germans are speaking badly 
about the east Germans, ami vice versa." 

As for the worry that Germany will flex 
its economic muscles on its neighbours. 
Spilth says: “We will be the leading econ- 
omy in Europe, but we will not be domi- 
nant. The big international corporations 
are taking ever less consideration of 
national boundaries. In future, a lorry 
driver in Australia will never know tliat 
the axle comes from Brazil, the coachwork 
from Indonesia, the motor from Hungary 
and the know-how, perhaps from Ger- 
many. This globalisation means that wc 
will no longer be able to folk of countries 
running dominant economic policies - 
which will be for the good of Europe." 

Jochen Bergmann, the head of the Jena 
Chamber of Industry and Commerce, takes 
a similarly Internationalist line: “I don’t 
understand all this talk of domination. We 
need a strong Germany, a strong France 
and a strong Britain to stand up to the 
competition from China.” 

The German economy now looks n great 
deal more healthy following the sharp 
1992-93 recession in the west and the shat- 
tering 40 per cent economic contraction in 
east Germany in 1990 and 1991. Germany 
is now on course for 15 per cent expansion 
this year, while east Germany - where per 
capita income is still only 40 per cent of 
levels in the west - is growing at an 
annual 8 per cent to 10 per cent. 

However, earlier reluctance to reduce 
the high costs of Germany’s manufactur- 
ing base has stored up pain for the future, 
according to Roland Berger, who heads the 
Munich-based firm or management consul- 
tants bearing his name. 

Berger, whose company is owned by the 
Deutsche Bank, says high wage rises in 
the early period after unification have fur- 
ther reduced Germany’s international 
competitiveness. He says west Germans 
need to cut their living standards further 
during the next few years. And he fore- 
casts that manufacturing industry will 
become relatively less important in the 
economy, as employment is switched to 
low-cost manufacturing sites abroad. 
Although Berger forecasts an increase in 
employment in the under-developed ser- 
vice sector, he believes that 2m jobs may 
be lost in the vulnerable sectors during 
the next three or four years. 

Herbert Henzler, chairman of the Ger- 
man operations of the McKinsey manage- 
ment consultants, also takes a gloomy 
view. In spite of this year's much better 
than expected German export perfor- 
mance, he says, “A 30 to 40 per cent gap in 
production costs [compared with competi- 
tors in Asia and the US] cannot be made 
up in a few months.” 


Continued on Page DC 


CONTENTS 


Family finance : How pensioners 
can raise cash III 

Sport s Grand Prix drivers learn to 
drive again XJ V 


Books : Gunboats off Haiti, a history 
of US intervention XV 

Arts s The Jerwood prize - rich and 
boring XVfl 

Food & Drink: Broking bread, 1990s 
style XX 

Inter v ie w : A warm breeze blows 
from Moscow XXII 





Bears, birds, otters and elephants: on 
safari from Amazonia to the 
Sheilands X & XI 


Art* 

BtUg#, Cfc-w. Crosawonl 
FjsWon 

Fliumi' A Iho (• unity 
Food Admit 
&VI*3TftU 

How to ** 

Ini.tvKw 
Mart eh) 

The N.ittU.1 Ol Thrtjs 
JJjlM MOfJJii 
MwlO/ov) 

SnuD fliroiwaa 

T» IK 4 
IV 5 


JCVI-XVB 

XV 

XXI 

xvtn 

HI-K 

XX 
XM 
tax 
XXX 

II 

XXB 

Xffl 

m 

XIV 

sc 

XIV 

XXI 

XXI 


The Long View / Barry Riley 

When numbers deceive 



Truth is an elusive 
concept, in the financial 
markets as anywhere 
else. Whatever the 
scope for developing 
measurement standards 
oE P recise technical 
mjjr accuracy, the commer- 

w Sr cial pressures will often 

dictate a blurring of the 
lion. Harsh numbers can create dis- 
ci tent, unless tweaked or evaded. 

This week, I have spent an instruc- 
re few days in Edinburgh at a con- 
ess of European financial analysts 
ro are, rightly, concerned about 
lether the companies in which they 
vest are telling the truth about their 
rformance. But, too often, the ana- 
ds are in turn busily pulling the wool 
er the eyes of their own clients, 
tether nension Dlans or investors in 


mutual funds. 

The argument for accurate financial 
reporting by listed companies is simple 
and powerful. Only if clear and honest 
numbers are reported can share prices 
be set accurately by the markets, so 
that capital can flow in an efficient way 
to the most attractive investment 


opportunities. At the same time, it can 
be withdrawn from enterprises that 
have large quantities of capital 
employed but can only achieve low 
returns. 

In the real world, however, compa- 
nies rarely produce strong and progres- 
sive profit figures. There are awkward 
Quotations, even in the profits of suc- 
cessful companies. So, finance directors 
are tempted to iron out the variations, 
to generate the nice, smooth sequence 
of profit numbers that the stock market 
appears to want 

One of the dodges employed by Brit- 
ish companies has been to use take- 
overs as a cover for profit smoothing. 
The rules of acquisition accounting 
have, until now, permitted companies 
to set up large balance sheet provisions 
to cover the direct costs of acquisitions 
and the subsequent expenses of 
restructuring. 


Far from mergers being expensive 
and disruptive, which is the economic 


reality, the accounting presentation has 
been that takeovers often generate 
immediate earnings gains. Hence the 
uproar this week when finance direc- 
tors attacked the restrictive new draft 
accounting standard, FRS7, which 
curbs the ability of acquisitive compa- 
nies to shuffle take-over costs from 
their profit and loss accounts and bury 
them in their balance sheets. 

In Edinburgh, tha> rhairtnan of the 
Accounting Standards Board, Sir David 
Tweedie. pointed out to the analysts 
that this was simply one more stage in 
the process of eliminating creative 
accounting. Already, the “extraordi- 
nary” items which used to Utter the 
accounts of British companies have 
been eliminated. 

The old rule was that exceptional 
items counted towards earnings per 
share but extraordinary items did not 
Oddly enough, exceptional almost 
always seemed to be positive but 
extraordinaries were negative. It is, 
however, still possible to play a game 
with exceptional items, as is shown by 
the practice of “big bath” provisions. 

T he stock market can, perhaps, 
be persuaded that so-called 
“charges" set up in anticipa- 
tion of restructuring expenses 
or redundancy costs are unusual and do 
not reduce - indeed, may even improve 
- the future earnings potential. Grand 
Metropolitan tried this one on Monday 
for the second time in less than a year. 
But if such provisions become routine, 
how can they be described as excep- 
tional? 

Fragile accounting concepts can take 
a terrible battering when major com- 
mercial objectives are at stake. But do 
the financial analysts have their own 
hostages to fortune here? Murky things 
can also go on when fund managers 
present their own investment returns, 
and It is interesting that the European 
analysts have set up their own commis- 
sion to attempt to raise standards in 
this area. 

Often, the whole embarrassing sub- 
ject of investment performance is 
avoided carefully. During the Edin- 


burgh conference, for instance, four 
Scottish investment institutions - Stan- 
dard Life, Scottish Widows, Murray 
Johnstone and Baillie Gifford - out- 
lined their achievements and their 
strategies. None offered performance 
data of any kind, an omission equiva- 
lent to four major listed companies giv- 
ing presentations without mentio ni ng 
their profits or their returns on capital. 

The uncomfortable underlying truth, 
of course, is that most fund managers 
produce unexciting results: Indeed, by 
mathematical principle, the average 
manager cannot beat the index. More- 
over, academics have shown that most 
managers who do outperform for short 
periods do so simply by chance. 

(Incidentally, on a slightly different 
subject, a French professor, Bertrand 
Jacquillat, presented a study which 
indicated that analysts working for bro- 
kers who attempt to forecast company 
profits also show no signs of consis- 
tently beating the herd. Such results do 
not show that the analysts are incompe- 
tent but, rather, that the markets are 
efficient). 

The European analysts - the Euro- 
pean Federations of Financial Analysts' 
Societies, to give them their full title - 
are setting up a commission to try to 
sort out the jungle of performance mea- 
surement At present, it is notorious 
that investment houses tend to cherry- 
pick their best-performing funds and 
individual managers and present them 
as representative rather than excep- 
tional. Weak funds are, somehow, 
dropped. Everybody in the fund man- 
agement business, if you believe the 
claims, has a better-than-a verage per- 
formance, at least over some carefully- 
selected period or other. 

If chance and the law of averages are 
indeed the dominant influences, it 
might be better to choose a below-aver- 
age fund manager whose fortunes may 
be on the turn rather than a top per- 
former whose lucky streak is about to 
run out Ironically, the better and more 
reliable the performance numbers 
become, the more irrelevant they may 
be seen to be. Truth may be less influ- 
ential than fiction. 



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offers investors a good opportunity to establish long term 
positions in some of the world’s fastest growing economies. 
Over the eleven weeks since the fund's launch on 30 June 
199-1, the offer price of the fund has risen by 10.6%*, giving 
investors a return, to date, of between 4.7% and 9.1% 
depending on initial charges paid. 

Now is the last opportunity to take advantage of the 
discount offer period. Until 30 September 1 994, there is no 
initial charge on the fund for investments of £30,000 or above. 
Investments of less will receive a 1% discount off the fund's 
normal initial charge of 5%. 

Call our Investor Services Department on (44) 481-712176 
or contact your financial adviser. 

GUINNESS FLIGHT 


GLOBAL EMERGING MARKETS FUND 


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!I WEEK-END FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


MARKETS 


London 


Diminishing returns 


A glimmer in the 
September gloom 


FT-SE-A Sectors (total return). change 31/12/93 to 22/9/94 


Printing, Paps A Packaging ; 
Of fitpteatton 4 Production • 
Engineering. VeHcta ■« 
Oft* Services & Businesses j 
Extractive induatries : 
enemies*) 


1 i 


Clay Harris , financial news editor 


T he stock market's 
black September 
lightened a touch 
near the week’s 
end, but equities 
continued to feel sore from a 
whiplash of shunts from the 
US and bumps from Germany. 
There was little domestic com- 
fort either, as it became clear 
just how decisively last week's 
interest rate rise has trans- 
formed the investment outlook. 

Until the modest recovery on 
Thursday and Friday, Septem- 
ber had developed into the cru- 
ellest month for equities in 
1994. with the ET-A All-Share 
index already showing a bigger 
decline than the 6.78 per cent 
drop it suffered in March. 

As well as equinoxes and 
unsettled weather, those two 
months also mark the high 
tides of corporate reporting. 
The September peak has 
passed, with most companies 
providing little grounds for 
optimism to offset the prevail- 
ing malaise. 

On Wednesday, Kleinwort 
Benson Securities translated 
this sentiment into hard num- 
bers. cutting its forecast for 
earnings growth in 1995 from 
10 per cent to 8 per cent and 
counselling clients to look 


towards bonds rather than 
equities for the time being. 

It will not be easy in bonds 
either. The yield on 10-year 
gilts breached 9 per cent on 
Tuesday for the first time since 
October 1992. By yesterday, 
however, it was down to 8.86 
per cent. The government 
bonds market took in its stride 
news both of a £2bn gilts auc- 
tion, on the low side of expec- 
tations in terms of size, and 
the German announcement of 
a rare issue of floating-rate 
bunds. The latter proved a puz- 
zlement. giving no explicit 
pointers to the timing - or 
direction - of the Bundes- 
bank's next interest rate move. 
London was evenly divided 
between judging the move des- 
perate or clever. 

Figures published on Tues- 
day showed a lower than 
expected rise in bank and 
building society le ndin g and a 
fail in lending to the corporate 
sector in August. This helped 
to allay worries of inflationary 
pressures, although the British 
Bankers Association also noted 
a jump in lending to individu- 
als and a fifth monthly rise in 
consumer credit, suggesting 
that the April tax increases 
were beginning to be felt in 


household budgets. 

Friday's GDP figures not 
only appeared to bear this out. 
but indicated the squeeze had 
begun even earlier. According 
to these data, real personable 
disposable income fell by 1.8 
per cent between the first and 
second quarters of 1994. the 
biggest such decline for 13 
years. But some analysts noted 
that the figures were contra- 
dicted by strong retail sales 
data in the second quarter. 

Never mind the ambiguity, 
equities found solace in even a 
hint of news that arrested the 
slide. The FT-SE 100 index 
gained 7 to 30282 on Friday, to 
limit its loss for the week to 
36.9 points. 

The worst day was Tuesday 
when a widening US trade defi- 
cit spooked markets every- 
where and cost the FT-SE 100 
412 points. But the next day 
brought better than expected 
German money supply figures, 
which gave London a respite, 
before US housing statistics 
knocked shares down again. 

While most of the market 
was in the dumps, Browning- 
Ferris Industries of the US 
thought it could find treasure 
in trash. It launched a surprise 
takeover bid for Attwoods, 


04, Wfirgrafad - 
Electricity < 
Po odflMaUOT ! 
Engtaaring , 
Lenm&HoMs - 
OttMr Hrt*ndal : 
Breweries : 
Genwjri Manufacturers > 
Health Care ; 
Food Manufacturers ■ 
Media : 

Phsnnaceuriceto 
Noft-flnanew ; 

Gas Bstribution ; 
Consumer Goods . 
SwesSoent Trusts ! 
FT-SE-A AK-Stiara ; 
Boctrenic & Electrical Equipment j 


Support Smtoee j 
Sputa, wines & Ctdera j 
Drversitad Wustrfate J 


TexMes A AppM v 
Merchant Bento t 
UfeAssumce ; 
Household Goads j 
Transport s 
BUkflng Materials & Merchants : 

General Retatos ; 
□tatributerc : 
Biticing & Construction { 



• Property 
T al e cc nwnicaMons 
Swots 
Insurance 
Tobacco 





Source; B s testwn 


-25 -20 -15 -10 -5 


10 16 


HIGHLIGHTS OF THE WEEK 


Price 

y*day 

Change 
on week 

1994 

High 

1994 

Low 



FT-SE 100 Index 

302 8-2 

-36.9 

3520.3 

2876.6 

Interest rate worries 


FT-SE Mid 250 Index 

3560.9 

-55^ 

4152.8 

3363.4 

Buyers withdraw 


Aerostructures Hamble 

72 

-51 

126 

72 

Profit worries 


Argyll Grp 

268 

-22 

315 

22216 

Fears of price war 


British Airways 

373 

-9U 

496H 

36416 

Air fare wars 


Granada 

SOI 

+15 

598 

475 

Analysts recommendations 


GUS 

559 

+18 

853 

524 

Share buy-back speculation 


Kleinwort Benson 

466 

-28 

693 

424 

Turbulent markets 


London Beet 

714 

+26 

753 

534 

‘Rees' rally 


McDonnell Into. 

109 

-110 

264 

109 

Dismal Interim figures 


Midlands Beet 

790 

+17 

840 

547 

Share buy-back expected 


Sainsbury (J) 

397 

-40 

480 

342 

Fears at price war 


Scottish Tefevston 

491 

+47 

574 

355 

Mirror buys 15% stake 


Tesco 

232% 

-16 

2S5 

20016 

Fears of price war 


Vodafone 

198 

+11 Vi 

212 

157% 

Hoars Govett positive 




which has attracted as much 
attention over the years for the 
colourful characters on its 
board and in its orbit as for the 
garbage business Itself. 
Attwoods said “rubbish”, in 
Cityspeak, to the £564m bid 
and its shares now stand at 
116p, against BFTs 109p offer. 

A dawn raid by the Mirror 
Group picked up 149 per cent 
of Scottish Television's shares 
for £37.4m. Although Mirror, as 
a national newspaper pub- 
lisher, faces a 20 per cent regu- 
latory cap on its potential 
stake in the ITV company, the 
shares of other medium-fry 
regional broadcasters jumped. 

Another rare pillar of sup- 
port came in the electricity dis- 
tribution sector where North- 
ern Electric helped to buoy 
sentiment by buying in 10 per 
cent of its shares. 

And drugs proved a more 
pleasant distraction than for 
the Liberal Democrats in 
Brighton. Speculation about a 
merger between pharmaceuti- 
cal giants Zeneca and Well- 
come pushed their respective 
shares 1.4 and 4.1 per cent 
higher on the week, although 
their attractions faded as the 
general market firmed. 

Spirits were not as high at 
Guinness and Grand Metropoli- 


tan. United Distillers, on which 
Guinness relies for two thirds 
of its profits, saw first-half 
operating profits fall by more 
than 4 per cent to £258m. 
GrandMet devoted more than 
half of a £280m restructuring 
charge to a shake-up at Inter- 
national Distillers and Vint- 
ners, the world's biggest spirits 
producer. Speaking of dog's 
breakfasts, GrandMet also sold 
its US pet food brand Alpo to 
Nestle for $S10m (£325m). 

British Aerospace trebled its 
interim underlying profits to 
£90m, but worried the market 
with increased losses on 
commercial aircraft and a 
£115m cash outflow in spite of 
selling Rover to BMW for 
£80Qm. Its shares initially fell 
26p bo 445p, but recovered most 
of the Loss by Friday. 

A BAe spin-off was one of 
two recent flotations whose 
price charts now resemble 
Niagara Falls. Aerostructures 
Hamble, bought by 
management from BAe in 1990, 
fell 50p to 73p after warning of 
problems with contracts. It 
floated at I20p barely three 
months ago. McDonnell 
Information Systems, which 
came to market in March at 
260p, saw its price cut in half 
to H2p on poor interim results. 


Serious Money 


Freeing trusts to 
roam the world 


Gillian O’Connor, personal finance editor 


T he Securities and 
Investment Board’s 
creeping overhaul 
of the unit trust 
industry’s ratebook 
combines deregulation with 
improved disclosure. The Brit- 
ish nanny mindset Is giving 
way to the American Idea that 
the investor can be expected to 
look out for himself provided 
he is given all the relevant 
information. 

This week’s tinkering came 
from two directions. The SfB 
itself (the top watchdog) pro- 
posed changes to several 
aspects of the ratebook. And 
its offshoot, the Personal 
Investment Authority (con- 
cerned with products sold to 
the public) published its disclo- 
sure proposals for unit trusts. 

The PIA’s disclosure propos- 
als are discussed on page VII, 
where they get a "beta minus”: 
generally OK but the informa- 
tion on the effect of charges on 
your investment needs to be 
far more clearly set out. 
Charges on an average long- 
term investment in a unit trust 
have roughly trebled in the 
last 15 years. And although low 
charges cannot turn a dud 
fund into a star, the; can drag 
a star down to earth. Would it 
not be helpful actually to illus- 
trate the effect of such 
charges? 

The SIB’s loosening of its 
controls on authorised trusts 
does three things: it allows 
unit trust managers the charg- 
ing freedom already enjoyed by 
managers of unit trusts 
wrapped inside a Personal 
Equity Plan; it gives them 
greater freedom to decide 
where to invest; and it simpli- 
fies the price information 
which trusts are required to 
publish. 

The price simplification gets 
rid of the requirement to pub- 
lish the cancellation price, and 
is part of “moves to a more 
user-friendly terminology”. 
Fair eno u gh , although thn can- 
cellation price was actually 
useful to the handful of unit 
trust investors who understood 
it If the bid price (what you 


get when you sell your units) 
is the same as the cancellation 
price, it means you are getting 
the lowest possible price the 
manag ers are allowed to pay. 
When share prices are gener- 
ally on the rise fund managers 
pay slightly more than the 
minimum when buying units - 
so that they can also charge 
the maximum permissible 
when selling units. 

The relaxation in investment 
restrictions is In many ways 
the most interesting change - 
for It may allow managers of 
emerging markets funds to do 
a better job. At the moment 
authorised unit trusts have to 
keep 90 per cent of their money 
in markets on the SIB’s rather 
staid “approved" list Only 10 
per cent can go into unap- 
proved markets. 

But most of the stockmar- 
kets in south east Asia and 
South America are not on the 
list. So unit trust managers 
wanting a broad spread across 
markets in these areas have 
two choices: they can run the 
trust from an offshore centre 
such as Dublin or Luxem- 
bourg, which has different 
rules; or they can use circu- 
itous (and probably costly) 
routes to get the same portfolio 
spread. 

The SIB change will push 
responsibility for deciding 
which markets are suitable on 
to the fund managers and their 
trustees. They will stUl be 
bound by the 90-safe; 10- hairy 
rule. But it will be up to them 
to define the boundaries. It is a 
welcome change, but. like all 
freedoms, capable of being 
abused. So keep a dose eye on 
the lists of “eligible markets” 
that many funds will start pub- 
lishing later this year. 


□ □ □ 


Creative accountancy is like 
plastic surgery: it does not of 
itself delay the final reckon- 
ning, but it stops the outside 
world noticing mortal decay at 
work. And an appearance of 
youth may help the moribund 
to cut a few final capers. 


AT A GLANCE 


Finance and the Family Index 

Maximising income in retirement Ill 

The Week Ahead/New issues /Directors’ dealings IV 

The new market for smaller companies - VI 

Unit trusts: yields, charges, new regulatons/New trusts .......... VII 

Pensions/ Mortgages/National Savings/Highest rates VIII 

Q& A briefcase IX 


Building Societies 


Net racoipts. 
Cm 



Net new commi tm ents, 
annual % change 

- - - 50 



-SCO 


Aug 1993 

KM 


94 Sep 


Aug 1993 


94 Sep 


i-10 


New net lending by 
building societies falls 


New net lending by building societies foil In August to C3.02bn 
irem C3 2-lbn in July, underlining (ears of a halt in the recovery of 
the housing market. Net new commitments are loans agreed but 
not yet undertaken and the figure is an important forward -fooking 
indicator, since commitments made in one month tend to 
!rans!;;te into loans in the following few weeks. 

Building society savings levels also tell In August compared to 
the previous month with net receipts down to C91m compared to 
E2S6ni in July. Mortgages, page VIII 


Watchdog’s deregulation call 


The Soc unties and Investments Board, the chief City watchdog, 
this week proposed greater deregulation m the unit trust Industry 
with a senes of measures which are to come into effect on 
November 1 . Unit trusts will be able to impose exit charges and 
will not have to publish the cancellation price - the lowest price 
at v.-hich units can be sold - in the national press. 

In addition the terms "offer' - the price at which units are bought 
- and “bid' - the price at which they are sold - have been 
removed from the regulations in an attempt to move towards 
more user-fnmdty terminology. Serious Money and page VII 


Swan Hunter pension example 


Pensioners who are counting on the government’s proposed 
minimum solvency requirements as insurance that their pension 
benefits will be paid in full should consider the case of Swan 
Hunter. The shipyard, now almost certainly facing receivership, 
has had ;o tefl its members that as much as 40 percent of their 
pensicn entitlement will be lost The irony is that according to the 
scheme's actuary, it technically is nearly 100 percent fully fended 
as measured by the new solvency requirement. 


Smaller companies decline again 

Shares m smarter companies continued to decline this week. The 
Hoar* Govett Smaller Companies Index (capital gains version) 
dropped 1.6 per cent to 1661 .52 over the week to September 22. 


Next week’s personal finance 

A decision is expected next Wednesday on which of Cofarofl’s 
lomwr employees are entitled to get what from the former 
high-flyer’s pension fend. It win be a test case In the argument 
over pensions equality. 


Wall Street 


. . . but the threat of October chill looms 


I t has proved an uneasy 
truce. A little over a 
week ago, the resolve 
was there: the course was 
set, the direction seemed dear. 
So why, so soon after, are we 
back to that old prevaricating 
uncertainty, the vacillation 
and the lack or conviction? 

That question is not only 
being asked in US foreign pol- 
icy circles, after President Bill 
Clinton’s apparent compro- 
mise with Haiti’s military 
leaders a week ago. The stock 
market, which also seemed to 
have achieved a new resolu- 
tion, has performed a flip-flop 
of its own over the last 10 
days. Was it really less than a 
fortnight ago that the Dow 
Jones Industrial Average put 
on nearly ioo points over 
three days to rise above 3,950, 
flirting with its all-time high? 
By midday yesterday in New 
York, it was back to 3,835. 
What went wrong? 

The loss of nerve (Wall 
Street’s, that is) is the latest In 
a series of such twists and 
turns this year. Investors and 
traders just cannot make up 
their mind about bow serious 
the threat of renewed inflation 
in the US economy Is - or how 
aggressive the Federal Reserve 


will be in trying to kill it off 
before it becomes a problem. 

A belief that the inflationary 
bogey was retreating helped 
ftxel that earlier, brief rise in 
share prices. But as last week 
dosed, the Cassandras were in 
the ascaidant again. 

Foremost among the pessi- 
mists were Wayne Angel), the 
Bear Stearns chief economist 
and a former Federal Reserve 
Board governor, and Robert 
Giordano, director of economic 
research at Goldman Sachs. 
Both said the; expected 
another rise in US interest 
rates after the Federal Open 
Markets Committee, the key 
policy-making group which 
determines interest rate pol- 
icy, meets on Tuesday. If they 
are right, that would make the 
sixth interest rate increase 
since the Fed started nudging 
rates up in February. 

Their views were based on 
such factors as the last set of 
producer price inflation num- 
bers, which have been oat for 
a fortnight, and a rise In 
industrial production and 
capacity utilisation, which 
was announced a week ago. 
Although consumer price 
inflation seems subdued at 
present, such forces will even- 


Dow Jones Industrial Average P^e devastated share 

prices. Since then, though, the 

4.000 stock market has adapted to 



■3,600 *- 


Jul 

Source: FT Graphite 


tuaiiy feed through into 
higher prices In stores, the 
skeptics fear. Angell has also 
been sounding alarms all year 
about the rising gold price, a 
market indicator that Alan 
Greenspan, the Fed chairman, 
has said he watches closely. 

Higher interest rates hurt 
stock prices because they 
reduce companies’ profits, 
adding to the costs of servic- 
ing their debt while 


this new phase of the market: 
by marking share prices down 
tn anticipation of an interest 
rate rise, traders leave less 
room for surprise. The bad 
news, when it comes, is at 
least pat behind the market 
That, at least was the reac- 
tion to the Fed’s last two rate 
hikes, on 17 May (when the 
Dow jumped 50 points) and 16 
Augnst (when It rose 25 
points.) Each time, it seemed 
that the Fed would not have to 

act again for some months. If 

~~ rates go op for a sixth time 
next week, though, how confi- 

1 dent will the market be that 

!>ep this time really is the last? 

Whatever the short-term 
reaction, it seems likely that 
restraining consumer demand the stock market will have 
for their products. Also, they trouble rallying ranch until 
increase the attraction of keep- bond investors regain some of 
ing money in the bank or tn their lost confidence. While 
short-term debt instruments, stocks have continued to bump 
relative to holding shares. along close to their all-time 
If the Fed committee does highs, tn spite of the volatility, 
decide that rates should rise, it bonds have slid steadily. At 
could, paradoxically, give the 7.8 per cent, up around 13 
stock market something of a basis points (hundredths of a 
lift. The first two US Interest percentage point) on the week, 
rate bikes, in February and the yield mi 30-year govem- 
March. caught traders by sur- ment bonds is at its highest 


Aua 

1894 


level since for more than two 
years (lower prices equate to 
higher yields.) At yesterday’s 
level, the yield on longterm 
bonds is 3 percentage points 
higher than at the peak of the 
market’s peak last October. 

Over the same period, the 
dividend yield on shares has 
remained essentially flat, at 
less than 3 per cent As the 
gap between bond and equity 
yields widens like this, it 
becomes ever-harder to justify 
holding shares: either bond 
prices will have to rise (bring- 
ing the yield down,) or share 
prices will have to fell (lifting 
the dividend yield.) 

Against this background, 
warnings of a 10 per cent “cor- 
rection” (to you and me, that 
means fall) in share prices . 
continue to echo around Wall 
Street And, as one or two 
commentators are beginning 
to point out, it is nearly Octo- 
ber again - the stock market’s 
favourite month for a collapse. 


Richard Waters 


Monday 3936.72 + 0887 

Tuesday 3869.09 - 67.63 

Wednesday 3851.60 - 17.49 

Thursday 3837.13 - 14.47 

Friday 


O ver the next few 
weeks, investors 
will be bombarded 
with share offers 
from companies floating on the 
stock market as the autumn 
season of new issues gets 
under way. Recent events may 
make them think harder before 
signing the cheque. 

On Wednesday, shares in 
Aeros fractures Hamble almost 
halved when the former Brit- 
ish Aerospace aircraft compo- 
nents subsidiary, which was 
floated in May. issued a profits 
warning. The next day, there 
was an even more dramatic 
slump at McDonnell Informa- 
tion Systems (MDIS). which 
came to market at 260p in 
March. Following its admission 
that profits would fail this 
year, the shares tumbled to 
112p. 

"Told you so,“ said those 
who had warned that this 

year’s bumper crop of flota- 
tions contained a number of 
over-priced, over-hyped issues 
that would soon go bad. There 
have been plenty of disappoint- 
ments already, including the 
high-profile problems of MAID 
and the even more spectacular 
flops of DRS and Coda. But the 



The Bottom Line 

the new-issue blues 


evidence suggests that the suc- 
cesses still outweigh the duds. 

The table shows the best and 
worst performers among the 84 
UK trading companies worth 
over £iora which have floated 
so far this year. The share 
price performance is measured 
against the FT All-Share index 
from the first day of dealing 
until the close of trading on 
Thursday. 

The average is a gain of 5.8 
per cent. This is influenced 
heavily by some spectacular 
increases from very s mall com- 
panies such as Magnum Power 
and Waste Recycling. But the 
average, weighted by market 
value, would also be ahead 
thanks to good increases from 
3i (up 34-7 per cent) and House 
of Prase- (up 19.6 per cent). 

Yet. the gain is hardly 
impressive given that new 
issues are priced to give a rea- 
sonable premium on first deal- 
ings. For private investors, the 


Float or sink? 

Best performers 


Worst performers 

%- 

Magnum Power 

407.8 

DRS 

-5A9 

Waste Recycling 

+53J 

MDIS 

-sis 

Trafllcmaster 

+46.7 

Coda 

-50.0 

Inspec 

+41 J5 

Aerostructures 

-38.7 

My Kinda Town 

+41.5 

MAID 

-35.0 

Domnick Hunter 

+39.5 

CWroscience 

-325 

GRT 

+30.4 

United Canters 

-26.5 

Partco 

+30.4 

Wainhomes 

-24.2 

Alpha Airports 

+273 

Nottingham 

-22.7 

Idea! Hardware 

+25.4 

Beazw Homes 

-20.2 


Average 


tSfwra po cn p eBbnaanai serin na FT-A M-Otma bo kx. tAm ya at *0 UK nfng <xxr p» * vt 
tduea at onr ClOn ftantf In l$M 


evidence is less encouraging 
still Of the top 10 performers, 
all but two - (nspec and Alpha 
Airports - were pla rings with 
institutions, whereas half the 
worst performers were mar- 
keted to the public. The aver- 
age for those flotations in the 
sample, where there was either 
an offer direct to the public or 


through intermediaries, was a 
decline of 1.3 per cent 

This squares with most aca- 
demic studies of initial public 
offerings which show that, 
despite the initial premium, 
they perform much in line with 
similar companies that are 
quoted already. 

One possible explanation is 


that companies tend to come to 
market when their profits are 
strong and their sector is in 
fashion. But fashions change - 
as those investors who bought 
some of the flood of electronics 
issues early in the 1990s found 
to their cost. 

One of the attractions of buy- 
ing shares in a flotation is that. 
In theory, the company should 
have been scrutinised carefully 
by Its advisers. But. as last 
week shows, the fact that 
names likes Baring or Roths- 
child appear on a prospectus 
does not make something a 
risk-less Investment 

When It comes to assessing 
those risks, it is tempting to 
look for patterns In the recent 
flops. Certainly, it is striking 
that both Aerostructures and 
MDIS were recent management 
buy-outs, and some observers 
argue that the relatively poor 
performance of this year's new 
issue crop reflects the many 


MBOs. Yet, studies in the US 
suggest that MBOs tend to out- 
pace other companies after flo- 
tation - and the fourth-best 
performer this year has been 
Inspec, the specialty chemicals 
company which was a manag- 
ment buy-in/buy-out Grom BP. 

It would also be wrong to 
read too much into the poor 
performance of computer and 
technology companies. DRS, 
MAID, MDIS and Coda ail 
made the bottom 10 and Chi* 
rosdence was the latest of tee 
bio-technology flotations to dis- 
appoint But Ideal Hardware. 
Radstone Technology, Unipalm 
and Cedardata all made good 
progress while Magnum Power, 
which developed a cheap 
power supply for personal com- 
puters, made the top spot 

Magnum, a four-year-old 
company which lost £L23 m on 
turnover of just £59.000 last 
year, was probably the most 
risky of this crop of flotations. 
But it has been the most 
rewarding. In most respects, 
new issues are no different 
from other shares. Investors 
should judge them on the same 
basis. 


David Wighton 



Indeed, in a company con- 
text, a hyperactive bid pro- 
gramme can sometimes be a 
sign that the company cannot 
afford to slow down. 

Take CoIorolL This acquisi- 
tive little conglomerate bad a 
market value of just £37m 
when It was floated In 1985. 
Over the next four years it 
spent £400m on a raft of acqui- 
sitions, exploiting acquisition 
and merger accounting tech- 
niques in order to enhance 
profits to the detriment of its 
balance sheet* 

Its most startling ploy was 
spending £2 13m on a textile 
company called Crowther, and 
promptly knocking £224m off 
its balance sheet value. The 
point of this masochistic-seem- 
ing manoeuvre was that these 
massive provisions were then 
available to absorb future 
costs, and so boost future prof- 
its. Fine, but eventually the 
grim reaper caught up with 
CoIorolL- in 1990 the company 
went bust. 

This is one of the more lurid 
examples of the kind of abuse 
two new accounting standards 
outlaw. The standards from 
the Accounting Standards 
Board, catchily entitled FRS6 
and FRS7, demand that provi- 
sions be charged against prof- 
its. Most investors can spot a 
charge against profits; they are 
less likely to notice balance 
sheet shenanigans. 

Critics argue that charging 
capital costs against revenue is 
as bad as sweeping revenue 
costs into tee balance sheet 
Maybe. But if thnt means that 
managers are forced to pat 
clearer explanations into the 
annual report, that is all to the 
good. And if it stops them mak- 
ing silly acquisitions at all, 
that Is even better. 

Creative accountancy is only 
necessary if the managers have 
something to hide. If they 
remain paragons of common- 
sense and long-term planning , 
they should have no qualms 
about showing alL 
■ See Accounting for Growth 
by Terry Smith, published, by 
Century Business. 



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FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


WEEKEND FT 


III 


FINANCE AND THE FAMILY 


Make the most from your home 

Scheherazade Daneshkhu and Bethan Hutton explain how retired people can maximise their income 


A s people live lon- 
ger and retire 
earlier, they may 
find that, 
towards the end 
or their lives, they do not have 
enough money to live on. 
Savings become depleted and 
inflation eats gradually into a 
pension. 

Some may even have to con- 
sider going into residential 
care and will need to plan how 
to meet the costs (see below). 
Those who no longer have any 
savings may find that then- 
last precious asset is then- 
home. 

Depending on its value, it 
could be worth trading down. 
But many people under-esti- 
mate the costs of moving, 
while others find the idea too 
traumatic. How, then, to bridge 
the income gap? 

■ Home income plana These 
have had a terrible name since 
the late 1980s when unscrupu- 
lous advisers encouraged many 
elderly owners to take a mort- 
gage and invest in risky, equi- 
ty-related investment bonds to 
pay off the mortgage and pro- 
duce an income. Many inves- 
tors were left with large debts 
or even lost their homes. Some 
are still c laimin g compensation 
(see right). 

There are, however, more 
secure plans on the market. 
The Safe Home Income Plan 
(SHIP) campaign, launched in 
1991, has a code of practice for 
companies selling them. Mem- 
bers are All churches Life, Car- 
lyle Life, Home & Capital and 
Stalwart Life. 

The two main type of home 
income plan are: 

□ Mortgage annuity scheme. 
You raise a mortgage on part 
of the property, usually up to a 
maximum of £30.000 (so that 
the loan attracts mayimum tax 
relief), and invest the money in 
an annuity which pays a 
monthly income after deduct- 
ing interest payable on the 
loan. The annuity should be on 
a “last survivor” basis so that 
it continues until the death of 
the second partner. Owners 
retain legal possession of the 
home, which is sold when they 
die to pay off the loan. 

According to Cecil Hinton of 
financial adviser Hinton & 
Wild, a London-based firm 
which specialises in the home 
income plan market, it is best 


Hea lth funding crises 


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to fix both interest and Income 
payments. The higher your 
age, the more income you can 
expect from the annuity - 
there is little point in thinking 
about such a scheme unless 
you are at least 70. 

Hinton says a single man 
aged 75 who is a basic-rate tax- 
payer could expect about £1.870 
a year, and a single woman of 
the same age around £1,200, on 
a £30,000 loan. A married cou- 
ple aged 75 would receive £770. 
Non-taxpayers getting state 
benefits must take into 
account the effect of the addi- 
tional income on their tax sta- 
tus and benefits. 

□ Home reversion schemes. 
You sell your home to the com- 
pany, giving up your right to 
the property, and are given 
either a lump sum or an annu- 
ity income. But since you 
could live a long time, the 
reversion company will not 
pay the full market value of 
the home - only a fraction. 

According to Age Concern*, 
which has a fact sheet on rais- 
ing income from your home, 
the cash sum can be 35 per 
cent or less of the home’s value 
and will rarely be more than 60 
per cent, even for those over 
SO. You will not benefit fro m 
any rise in the property’s value 
once you have sold it. 

A single man aged 75 (25 per 
cent taxpayer) could expect to 
receive a £24,500 lump sum or 
an annual annuity income of 



£3,400 while retaining a half 
share in a house valued at 
£100,000. A single woman of the 
same age would receive about 
£23,400 (lump sum) or £2,600 
(annuity income). The corre- 
sponding figures for a married 
couple would be £22,300 or 
£1,900, according to Hinton. 

■ Paying for care. Most 
elderly people want to stay in 
their own homes for as long as 
possible. But with longer life 
expectancies, a growing pro- 
portion cannot avoid spending 
their final years in a nursing 
or residential home. The prob- 
lem then is finding the money 
to pay for the care. Typical 
weekly nursing home costs of 
£300 to £400 exceed the 
incomes of most retired people 
and the state does not provide: 
anyone with assets of more 
than £8,000 (including their 
home) has to meet the full cost 
of their own care. 

In most cases, owners going 
into care have to sell their 


homes to cover the fees. But 

simply galling Up, pu tting the 

money in the building society 
and paying nursing home fees 
out of the income and capital 
is not an efficient way to pro- 
ceed - it does not take many 
years of fees at £20.000 per 
annum to consume the pro- 
ceeds. Proper planning is 
needed. 

One recent development is 
special schemes designed to 
meet the immediate need for 
care and to cope with rising 
fees. Most use part of a cash 
lump sum (usually from the 
sale of a house) to buy an 
annuity, and invest the rest to 
try to replenish capital. 

Insurers offering schemes 
along these lines include PPP 
Lifetime. Commercial Union, 
Eagle Star, Clerical Medical 
imd Scottish Amicable. But 
since these are complicated 
financial products, it is essen- 
tial that you obtain indepen- 
dent financial advice before 


making any sort of commit- 
ment 

A number of finan cial advis- 
ers around the country now 
specialise in providing advice 
on paying for care. Philip 
Spiers, a partner with the 
Nursing Home Fees Agency, 
looks at income, assets, entitle- 
ment to benefits and all other 
circumstances before working 
out the best way to cover fees. 
This could involve one of the 
plans mentioned above or a tai- 
lor-made solution. “Every case 
is completely different,” he 
says. 

Other specialists include: 
London-based Advisory & Bro- 
kerage Services, which offers 
fee-based advice an both the 
choice of home and funding 
methods; Morton-Wilson, of 
Nuneaton, Warwickshire; and 
the Kleinwort Benson private 
bank. 

Many elderly people are 
reluctant to sell their homes to 
pay for care because they want 


their children to inherit - but 
recent legislation makes this 
impossible. If an elderly person 
does not have other assets or 
income to pay for care, but 
does own a house, the local 
authority can put a charge on 
the property and recoup the 
cost of care when eventually it 
is sold. 

Transferring ownership of 
the property to the next gener- 
ation does not prevent this. If a 
court decides that a person has 
disposed of assets to increase 
his entitlement to state help, 
he is treated as if he stUl 
owned the property. 

WAge Concern England, Astral 
House, 1268 London Road, Lon- 
don SW16 4ER (tel: 081-679 
8000): Age Concern Scotland, 
54A Fountainbridge, Edinburgh 
EH3 9PT (031-228 5656). For a 
free fact-pack on paying for 
care, write to Nursing Home 
Fees Agency, Freepost. Old 
Bank House, 95 London Road, 
eadington, Oxford OX3 9AE 


If you were 
a loser... 

Paul Cooper tells what to do 


Sales of risky home- in come 
plans late in the 1980s have 
led to a flood of compensation 
claims. If you were advised to 
borrow for speculative 
investment, and could not 
afford the risk of losing 
money, you should have a 
valid case. Here is what to do: 

□ Was the person who gave 
the advice authorised to do 
so? If so, compensation 
should be available - but 
there Is no compensation for 
unauthorised advisers. You 
could sue but, in most cases, 
this is not worthwhile. 
Negotiations with the 
mortgage lender might help; 
so might professional aid. 

Ask Age Concern for its list 
of specialist lawyers. 

Some advisers practised 
before their application for 
authorisation was approved. 
Hie Investors Compensation 
Scheme (ICS) excludes 
pay-outs even if the advisers 
qualified later - unless you 
can show advice also was 
given after authorisation. 

□ Was the salesman 
authorised by Fimbra or 
Lautro (the regulatory 
bodies)? If the answer is 
lautro, you are lucky. You 
will get more compensation, 
faster, because the Lautro/ 
insurance ombudsman 
bureau guidelines have a 
clear procedure for such 
cases. The insurance 
ombudsman normally makes 
distress awards of up to 
£5,000 (the average is around 
£1,500). especially where the 
life company has taken a 
year or two dealing with the 
complaint (although this is 
normal). 

Since Lautro members in 
breach of the rules must 
ensure that clients are not 
worse off because of their 
investments, the ombudsman 
does not subtract money 
spent by investors when they 
were led to believe there were 
no risks attached to doing so. 
Investors spent the money 
they received believing it was 
interest on their home’s 
capital In reality, they were 
consuming the capital itself. 


If, however, the adviser 
was authorised by Fimbra. 
you are likely to receive less 
since there is a compensation 
ceiling (of £48,000 per claim) 
and there is no obligation to 
return people to the position 
in which they would have 
been had they not invested. 

□ What should I do? Having 
established whether the 
person giving the advice was 
authorised or not, make a 
complaint about the advice 
received to the insurance 
company or the Fimbra firm, 
asking for compensation. 

□ What are the pitfalls with 
a Lautro firm? It might resist 
your claim or take a lot of 
time investigating it. If there 
are no results after two 
months, take your claim to 
the insurance ombudsman or 
the recently-started FLA 
ombudsman. Do not accept 
any offer without insisting on 
a review by the ombudsman. 

□ What are the problems 
with a small Fimbra firm? 
There is a danger that it 
might not exist, given the 
number of firms which 
Fimbra has de-recognised 
over the past few years. Call 
Fimbra (071-538 8860) to 
check, giving the Gnu's 
postcode. If the firm bas 
ceased trading, ask if the ICS 
has declared a default. If it 
has, write to the ICS at 2 
B mihfll Row, London EClY 
8SR. registering your cl aim. 
Expect compensation within 
nine-18 months. If not, tell 
the ICS your problem and ask 
for a default declaration. 
Expect compensation within 
two years. 

□ What are the problems 
with a larger Fimbra firm? If 
the firm is still trading and 
disputes liability, you can 
either get legal aid and sue; 
apply to the PIA ombudsman; 
or, in certain cases, apply for 
Fimbra arbitration. 

□ What are file risks of 
arbitration? It is a binding 
legal procedure and awards 
cann ot usually be appealed. 

■ Paul Cooper is principal of 
CLAIMS, which investigates 
cases of bad advice. 


.V. 

V * 

y# 


Morgan Grenfell. 

UK Performance Tax-Free, 


UK EQUITY INCOME T 




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TOTAL RETURN ON £1,000* 

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V 

MORGAN GRENFELL 
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SECTOR AVERAGE 

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IV WEEK-END FT 


FINANCIAL TIMES WEEK-END 


SEPTEMBER 24/SEPTEMBER 25 


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FINANCE AND THE FAMILY 


MONDAY: This year has not 
been a happy one so far for 
Inchcape, the International 
motors, marketing and busi- 
ness services group: Its share 
price has fallen by a third 
since January and analysts 
will be anxious for reassurance 
when the UK-based organisa- 
tion reports results for the six 
months to June 30. Analysts 
expect pre-tax profits of about 
£U5m-£120m. compared with 
£130m last time. 

MONDAY: The stock market 
will be waiting to see if Ham- 
merson provides details of the 
planned sale of its £175m Aus- 


The week ahead 


Inchcape falls back 


tralian property portfolio along 
with its interim results. With 
around 50 per cent of its assets 
overseas, Hanunerson is 
amon g the most international 
of UK property companies, so 
its comments an market condi- 
tions in Australia and Canada 
- where it acquired three shop- 
ping malls in July - will be 


DIRECTORS 1 SHARE TRANSACTIONS IN THEIR 

OWN COMPANIES (LISTED & US U) 





No at 

Company 

Sector 

Shares 

Value 

cfrectora 

SALES 





Alrsprung — 

. — .HGcd 

9.000 

24 

1 

Haggas tfl — — 

Text 

30300 

4 

2 

Haynes Publ 

— MrSa 

100,000 

445 

1 

Legal & Gan 

LHA 

2,500 

11 

1 

UDeahaJI — . 

~BM&M 

7300 

11 

1* 

Logtea ... 

SSer 

3,750 

12 

1 

Prm Financial — 

OthF 

7^00 

41 

1 

Ptarmigan urn — 

InvT 

50300 

120 

1 

Watmoughs 

_PP&P 

180,000 

701 

1 

PURCHASES 





BET 

SSer 

30.000 

32 

1 

Berisford Inti ._ 

_BM4M 

20,000 

39 

1 

Blenheim (cu.cv.pl) 

Mdto 

423,000 

315 

2 

Coutts Consulting 

SSer 

35.000 

19 

3 

Bdridge. Pope A 

Brew 

6324 

13 

2# 

FSofcuc 

— OS&B 

20,000 

42 

1 

Forth Ports — 

Tran 

5,000 

24 

1 

London Forfaiting 

OthF 

300,000 

348 

1 

Mercury Ast Mgt — . — . 

OthF 

16,000 

100 

1 

Nestor-BNA _.. - 

Hth 

50.000 

23 

1 

RTT Capital Ptnrs 

InvT 

2SQ.00Q 

470 

1 

Ryt BK of Scotland 

Bnks 

11.810 

49 

1 

Slebe — .. 

Eng 

3300 

20 

1 

WDOs Cartoon 

Insu 

40.000 

64 

1 


value axpraaaad In EOOQa. THa Hal contains afltransactions, etetudng tha eMercfee ol 
options ft X 100 % s ubsequently add. wtth a valve over £ 10 . 000 . 4 oomqrttte 
preference; (B ordinary. Information released by the Stock Exchange September 12-18 
1994. 

Source Directus Ud. The toskfe Track, Edntiugh 


Directors’ transactions 


Watmongfas, the printing and 
binding company, has just 
announced interim results that 
were fairly strong and Patrick 
Walker, the chairman and 
chief executive, gave an up- 
beat statement reflecting 
improved demand. Following 
the announcement, he sold 19 
per cent of his holding: 190,000 
shares at 369p. He is left with 
more than 800,000. 

□ The considerable sale by 
John Haynes, chairman of 
Haynes Publishing, Is a good 
example of how important it is 
to judge a share transaction in 
terms of the director’s existing 
holding. Haynes holds about 60 
per cent of the company, which 
is capitalised at £69m. His sale. 


therefore, represents only 1 per 
cent of his holding. 

□ Blenheim Group, the com- 
pany that organises exhibi- 
tions and conferences, used to 
enjoy a golden spot in the mar- 
ket as its growth rocketed. But 
the momentum slowed and, 
over the past year, the stock 
has underperformed by 32 per 
cent Since January, directors 
have been buying their own 
shares, and the most recent 
transaction is by chairman 
Neville Bach. He bought 15.000 
ordinaries and 400,000 convert- 
ible cumulative preference 
shares to take his holding to 
more than 5,340.000 shares. 

Vivien MacDonald. 

The Inside Track 








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watched closely. Analysts are 
expecting pre-tax profits of 
around £22m, against £l{L2m 
last time, and a dividend 
unchanged at &5p. 

TUESDAY: Multi-media will be 
the buzzword when Dorling 
Kindersiey. the publisher of 
highly illustrated reference 
books, reports its annual 
results. Distribution problems 
last autumn are expected to 
have cut pre-tax profits from 
£9- 7m to about SSJSm. But most 
interest will focus on prospects 
for the group's latest CD-ROM 
products: five educational 


New issues 


ED&F Man, the 200-year-old 
commodities broker, will be 
valued at £462.6m when it 
comes to market next month 
through a placing and public 
offer at 180p a share, writes 
Peggy HoUinger. About SllOm 
In shares are being sold, of 
which £27.5m are being offered 
to the public. This represents 
about 24 per cent of the total 
enlarged share capi tal , 

Man was forced by the 
recent stock market fall to 
pitch its share price substan- 
tially lower than had been 
hoped. It had expected to float 
on an historic price/earnings 
ratio of about 12 but the shares 
will start on a multiple of 9.5. 


The share price reduction 
has left Man with what 
appears to be an attractive 
notional yield of 6 per cent 
But analysts are not convinced 
the group will be able to sus- 
tain such healthy dividend 
payments. “If you look at the 
operational cash flow over the 
past four years, they have 
moved from hugely negative to 
quite positive,'’ said one. 

The price announced yester- 
day may leave the shares 
looking cheap if only the p/e is 
taken into arrmmt. But there 
are several concerns over the 
quality of Man’s earnings 
which mean the jury could be 
out for some time. 


TAKE-OVER BIDS AND MERGERS 


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RESULTS DUE 


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14> 


Forte 

Sham price rdativa to tt» 

FT-SE-A All-Share Index 
110 


packages which combine text, 
sound and vision for use on 
hom e computers. 

TUESDAY: Exceptional re- 
structuring costs obscured last 
year’s results from Sears, the 
clothing retail group. But. on a 
directly comparable basis, it is 
forecast to report an increase 
In interim pre-tax profits from 
£39£m to about £46m. Interest 
charges are likely to be down 
and both British Shoe Corpora- 
tion Selfridges department 
store are expected to show 
strong performances, but the 
picture from the clo thing mul- 



TMdenas m sfown rat p«n» parshn and «a abused tor «iy Mprentos aerip tosua. 
Repgto and aocartB are not normally wafletfa una about 6 wraka Mtor tin bovd m oo ti ng a 
;pprow praMnay ra aufta. ft 1st quartariy. ♦ 2nd qustorfy. * M Quartorfy 


tiples is likely to be mixed. 
TUESDAY: Half-time pre-tax 
profits tram Tarmac, the bous- 
ing and construction group, 
are expected to fell within the 
range of £l9m to £25 tn. Last 
time, profits were £2 -5m. It is 
thought that the dividend will 
be rwqmferinBri at 3p. The hous- 
ing division and aggregates 
market are forecast to produce 
improved performances. 
WEDNESDAY: Good results 
recently from house-building 
compa nies are expected to be 
repeated when Beazer Homes, 
floated out of Hanson in Febru- 


ary. reports interim results. 
Analysts are forecasting pre- 
tax profits of between £28m 

THURSDAY: Improved half- 
time results from RaUand are 
forecast, with the building 
materials group expected to 
turn in pre-tax profits of 
around £130m, against £108m 
last time. The continued recov- 
ery in the continental Euro- 
pean building market is likely 
to be a key component of any 

improvement 

THURSDAY: Forte announces 
half-year results, with pre-tax 
profits of between £50m and 
£55m expected compared with 
£37m last time. The results 
come at the end of one of the 
most momentous months tn 
the hotel and restaurant 
group's history. It has been 
given a formal say in the man- 
agement of the Savoy group, 
although it has not won overall 
control. 

More significant from a com- 
mercial point of view, it won 
control of Meridien hotels, the 
Fre nch f-hflin controlled by Air 
France. Attention is likely to 
focus on Forte's success in 
holding on to contracts to man- 
age Meridien properties. 


PRELIMINARY RESULTS 


Company 

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to 

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profit 

(8000) 

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rights issues 


Dragon <H a to min in corjjcfcr aftn va a i&to beue ol 1 inf tor * ads* 


40 


OFFERS FOR SALE, PIACINGS A DflRODUCTIOMS 


b «°^^13mvBaptacn 9 oi3.74nigTOM3nfa 

OrtraniediBtonraeaptoSSmvtoAlaUon. 

Doboo Ol is to ptxe 165m into at 4p. 

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FBtnrtc Ccxank b to ram E25m «ia a ptaefew. 

ffl0m * *(fack« 

WaftB qs^» s b /* s O02rrnito a ptocta ana tjifcr of fit™. 


4 
































FINANCIAL TIM ES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


WEEKEND rr V 



WAIT WAS 


WORTH IT. 


' *«.» ■ ‘ . 
i . • ■ ■ ■ . 


Ax-.’ 


AFTER TWENTY YEARS OF CONSISTENT INCOME GROWTH, 


%\ * t . 


WE ARE PROUD TO ANNOUNCE OUR BRAND NEW 


INCOME 


INVESTMENT TRUST. THANK YOU FOR YOUR PATIENCE . 


good things come to those that wait, 
then our new trust is no exception. 

At last, you now have the opportunity 
to aim for rising income and an 
appreciable growth in your capital with 
Prolific’s UK equity income specialists 
through our new investment trust. 

Indeed, since launch our three equity 
income funds have outperformed 90% of 
our competitors*. 

So with good reason, the new trust 
will be managed by the same team who 


concentrate on those income funds. 

What’s more, the trust is fully eligible 
for inclusion in a PEP. And, for every five 
ordinary shares subscribed for, you will 
receive one free warrant. 

For a mini-prospectus, either contact 
your financial adviser, complete the 
coupon or call the 

Prolific Prospectus Line 
on 

0800 99 88 55 

Weekdays 9am-7pm Weekends 9 am- 5 pm 


Because this is the one you’ve been 
waiting for. 


rw : Prolific Income PLC Prospectus Service, 

| FREEPOST, Lorulnn F.C4-B IJY. 

| Please send me . . mini-pruspectus(es) for Prolific 

i Income PLC. 


n 


MR.MKS.MS . . . INITi.US 


.SL KNUIK 


I pi*fn:«ipR _ ihi. 

»T'iiui.n 

I Frolific 

Concentrating on investmentj 


,Crt,| fr(V as ficures - Mcropat, offer to bid. net income reinvested (gross income ii the case of Protfic UK Erpiity tame Fund) to 1st August, 1994. Over 5 years, Probfc tfgti Income Unit Trust (lawched 2.9.19741 is 29th out of 94 and ProSfic Extra Income Unit Trust (launched 26.10.19841 is 19th out of 30. 

^ * ‘ Pro5 lie UK Eoufiv mcome Fund was launched on 16.12.1991. 

Please remember that the value at shares and the income from them can go down as wel as up aid investors may not get back the fuB amount rrvesled. Past performance is not necessarily a glide to the future. Information on PEPs is based upon current tax legislation and may change. The benefits of a PEP depend upon the individual 

drcumstances of investors. investment it warrants hvohes a high degree of gearing so that a relsively small movement in the price of shares may result in a isproportionareli’ large movement, unfavourable as wefl as favourable, n the pnee of warrants. 

The rfoimabon contaned herein is neither a prospectus, nor an offer of. nor an bwtatoi to apply for, shares or warrants. Applications for glares in Prolific Income PLC may be made only on the basis of the Listing Particulars relating to the Company. 

bare o> Prate hie. VT^ntr 8£3ne» Raisa. 23 Ba&Hk. L«fcn EC4TI 810. A raeneer of MM 






1 


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Investment 
Trust plc 



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FINANCIAL TIMES 

FINANCE AND THE FAMjXY_ 


The AIM is excellence' 

Norma Cohen examines the market proposed to replace the US ■ 


Norma Cohen examines the market proposes iu 

N tock exchanges every- Portfolio investor: tax breaks in dif ferent mari cats _■ 

k where face a common „ . ~.Z 7^1* Rule 4 z 

Tax reset Full quote 


S tock exchanges every- 
where face a common 
problem: the need to 
protect investors while 
creating an environment 
where small companies, Is par- 
ticular, can raise capital at an 
affordable price. 

In Br itain, the London Stock 
Exchange earlier this month 
produced a plan which tries to 
strike a balance. Its Alterna- 
tive Investment Market (AIM), 
intended to replace the 
Unlisted Securities Market 
whan it expires at the end of 
1996, will allow the UK's small- 
est companies to seek an 
exchange listing without meet- 
ing any minimum require- 
ments. 

There will be no minimum 
level of capitalisation, no mini- 
mum level on the amount of 
shares in public hands, uo min- 
imum trading record require- 
ment and, most controversial 
of all, no requirement for a 
“sponsor” - usually, an invest- 
ment hank which checks the 
documents accompanying a flo- 
tation to see they are accurate. 

The trading and reporting 
requirements for AIM compa- 
nies will, broadly, be similar to 
those of others on the stock 
exchange. Once listed, they 
will have to disclose informa- 
tion in much the same fashion 
as companies on the 
exchange's offic ia l list 
The question being debated 
is how to encourage investors 
to put capital into small com- 
panies without raising the cost 
of complying with investor pro- 
tection regulations to unrealis- 
tic proportions. 

S pecialist s in small compa- 
nies say in vesting in the sector 
is high risk, anyway. “But you 
have got to makp a distinction 
between rules which protect 
against business risk and those 
which protect against fraud,” 
says Marc Cramsie, head of 
corporate finance at stockbro- 
ker Singer and Friedlander. 
The latter are the most impor- 
tant, he adds. 

Brokers, venture capitalists 
and others have looked with 
envy across the Atlantic to the 
Nasdaq market’s small capital- 
isation stocks listing. In partic- 
ular, the participation of US 
retail investors at this end of 
the stock market is striking. 

Nasdaq argues that its own 
minimum entrance require- 


Wwitance tax _ , 

Business property reflef (50% unless 
hokfing exceeds 25%) 


Capital pains tax 

Reinvestment refer 


Holdover relief on gift of shares** 


May quafify as investment trust (so 
that company’s gains are exempt) 


As for 
full quote 
No 


Income Tax 

Relief for loss on shares subscribed 
(te, primary market) 


Relief for Interest on loan to 
acquire shares 


As for As for 
fid quote ful) quote 


Income tax and capital gains tax 
EIS tre a tment 


BES treatment (existing cos only) 


Purchase or redemption of company’s 
own shares: treatment as disposal for 
CGT rather than distribution for 
income tax 


Can it be putina PEP? Yes Yes No 

"so that gain on disposal of any asset may bo deferred by reinvesting in 
snares bi suitable company; — so thai gain may be deferred until donee 

sells shares In certain circumstances; tunless Investor owns more than 

five percent of capital; ttunless company Is dose and investor owns 
more than 5 percent of capital. Source: Touche floss 


The table, oompfled by Touche Ross, sets out how the tax 
treatment of investors in the three di ff er ent stock markets varies 
at the moment Investing in companies quoted on Ride 42 has 
considerable capital gains tax advantages, but they are not 
considered suitable for a personal equity plan. Both Unfisted 
Securities Market and Rule 4J2 companies have Inheritance tax 
advantages not shared by companies with a fUU quote. AIM’s 
position remains to be clarified. 


merits for listing have been a 
crucial factor in encouraging 
investors into small compa- 
nies. “If you are going to main- 
tain the confidence of investors 
and confidence in the markets, 
you need to maintain some 
mmimiwn standards,” says Joe 
Rardiman. its chief executive. 

Getting an initial spot on 

Nasdaq's small companies lis t 

requires registration with the 
US Securities and Exchange 
Commission, total assets of 
$4m. an initial flotation of 
100,000 shares with a total min- 
imum value of 51m, and at 
least 300 shareholders. Like the 
AIM, though, there is no for- 
mal requirement for a sponsor 
with the duty to provide a “due 
diligence” review of informa- 
tion filed. 

As a practical matter, Karth- 
man says, “only a tiny frac- 


tion” of Nasdaq Small Cap 
companies have no sponsor 
because each is required to 
have two market-makers 
(share wholesalers) prepared to 
buy and sell the stores in all 
market conditions. He points 
oat that no sane market-maker 
would agree to take on a com- 
pany without having checked 
it out thoroughly. 

The proposed AIM market 
will require only one market- 
maker. a rule which also could 
prompt the majority of compa- 
nies which list there to use a 
sponsor as welL 

Cramsie argues that the dan- 
ger of dropping the require- 
ment for a sponsor is that com- 
panies wifi, seek listings on the 
AIM mostly to have a publicly- 
quoted price for their stores - 
useful for those seeking a pub- 
lic valuation or wishing to 


reward employees with profit- 
sharing arrangements, Those 
genuinely seeking new capital 
will join the official tot or. 
worse, choose to hst in another 

country. 

-It’s going to be very useful 
for a lot of companies simply 
to have a trading price some- 
where for their shares,” Cram- 
sie says. “But the stock 
e x c h ange really should try to 
make the AIM a market where 
people actually are going to 
raise money.” 

Brian Winterflood. managing 
director of Winterflood Securi- 
ties - which specialises In 
small company stocks - says 
he is uneasy about whether 
AIM rules will be too loose to 
encourage retail investors to 
tftko part in the long run. 

In particular, he adds, the 
goal of the AIM should be to 
create a US-style store-buying 
public instead of oue which 
chooses “race-courses and 
bingo halls”. He Tears that if 
too many AIM-listed compa- 
nies turn out to be run by peo- 
ple with dubious credentials, 
the entire market will be dis- 
credited. 

David Jones, chairman of 
Sharelink. a share-dealing ser- 
vice for private investors, says 
he believes bis clients want to 
invest in small companies. 
Moreover, he feels the absence 
of minimum requirements for 
companies seeking a listing 
should not be a deterrent so 
long as investors understand 
the nature of the market 

“What private investors like 
is clarity,” Jones says. “The 
proposition that you need lots 
of regulation to encourage 
them is untested. We think the 
proposed AIM will make pri- 
vate investors much keener to 
go Into this sector.” 

Instead of more regulation, 
Jones suggests that better com- 
munications between share- 
holders and company directors 
would improve matters. He 
feels directors should meet 
more often with investors to 
answer their questions about 
trading conditions. “We need a 
completely new approach to 
communication,” he stresses. 

Jones adds that, if anything, 
new rules designed to protect 
investors by limiting opportu- 
nities for insider dealing serve 
only to frustrate this height- 
ened level of communication. 


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FINANCIAL times WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


WEEKEND FT 


FINANCE AND THE FAMILY 


Don’t take unit trust 
yields at face value 

Investors should be cautious over higher returns , says Barbara Ellis 


Wnager (TdfejSund 


NEW INVESTMENT TRUST LAUNCHES 


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Sw Sen ST Emerging Mkts 1:5 40+ nla No No lOOp S6p - 125% n/a n/a 25/10/94-4/11/94 



N ewly- launched 

income unit trusts 
have been taking 
advantage of a 
technical rule change allowing 
them to publish higher yields 
than before. Earlier Hife year, 
. the Securities and Investments 
Board (SIB) - the chief finan- 
cial services regulator - 
decided that fund management 
groups could take their annual 
m an a gement fee out of inves- 
tors’ capital instead of income, 
which can boost yield figures 
by up to 50 per cent. 

Save & Prosper launched an 
Extra Income unit trust, with 
an initial yield of 6.25 per cent, 
earlier this month while Mer- 
cury Income Portfolio was 
launched last month with an 
initial gross yield of 5.25 per 
cent Both groups have taken 
full advantage of the SIB 
change, which adds up to 1.5 
percentage points to the yield 
figures they could otherwise 
have shown. 

The change affects unit 
trusts aiming mainly for 
income, or emp hasising income 
and capita] growth equally. 
Unit trusts are being told to 
disclose the method of charg- 
ing fees against capital, noting 
clearly that this could impair 
future capital growth. Existing 
unit-holders are entitled to 
three months' notice of a 
change of charging method. 

Management groups are 
divided over whether existing 
unit trusts should convert to 
the new treatment, pointing to 
possible tax disadvantages for 
investors as well as managers. 

The main catch is for higher- 
rate taxpayers who may not 
want the higher yield. They 
will find themselves paying 40 
per cent on the excess income 
unless they move to a differ- 
ent, lower-yielding hind. 

Although most managers 
c laim there is little possibility 
of investors being confused or 
misled, some are nervous 
about the appearance in close 
proximity of figures estab- 
lished on different bases, and 
stress that total return Is what 
counts. They urge investors to 
probe beyond headline yield 
figures to find exactly how 
returns are being achieved. 

Peter Edwards, of Premier 
Unit Trust Brokers in Bristol, 
thinks most unit trust groups 


eventually will join the charge- 
to-capital did), whatever then- 
present attitudes. “It’s a very 
competitive world - they will 
see this as something they 
have probably got to do." 

The danger of charging fees 
to capital is that it might be 
eroded or future growth con- 
strained, but Edwards believes 
ordinary investors are not con- 
cerned with the allocation of 
management fees. “People 
don't honestly give a hoot 
about this. Most people just 
want that dividend cheque." 

S&P is expecting Extra 
Income to pull in more than 
£50m in its initial offer period. 
S&P's literature notes that 
“...it is likely that some or all 
of the annual management fee 
will be charged to the fund as 
capital” 

J ulian Tregoning, director 
of investment products 
at S&P and chair man of 
the Association of Unit 
and Investment Funds, says 
this is merely the required 
form of words. In practice, the 
full 1JS per cent will be charged 
to capital. 

He says S&P might alter 
some of its existing income 
funds so that only part of the 
management fee is set against 
capital. “It will depend on the 
income requirements. We want 
to make sure we maintain 
income." 

Management groups with 
income funds at the top end or 
the performance tables are tak- 


ing a cautious approach to the 
rule change. Peter Reeve, man- 
aging director of Jupiter Tyn- 
dall Merlin, says he and the 
trustees have decided against 
any imm ediate alteration to 
the group’s income fund. 

This is the top performer in 
the US equity income sector 
over five; three, two and one 
years to August 1 (source: 
HSW, offer-to-bid, net income 
re-invested}. Reeve says: “We 
shall have to see how our near- 
est competitors in the perfor- 
mance tables deal with this. 
We are not rushing into any- 
thing." 

At GT Unit Managers, also a 
consistent high performer, 
managing director Martin Har- 
rison says the new charging 
method will not be adopted for 
the existing income fund. But 
the group might well fannrih a 
new unit trust using it, g iv e n 
the very strong demand for 
income. 

Perpetual does not plan any 
immediat e chang e s Marketing 
director Roger Comick 
explains: “We are not rushing 
to tell investors we can possi- 
bly squeeze a drop or two of 
extra income. I think groups 
with the greatest need for 
improved yield figures will 
probably make use of the 
relaxed rules most quickly." 

M&G also is making no 
changes. Communications 
manager Rachel Medill points 
out “By taking charges from 
capital, you get a high yield - j 
but you are no better off in 


Spelling out the risks 


F ollowing publication 
in April of disclosure 
proposals for life 
assurance products, 
the Personal Investment 
Authority - the new regulator 
to protect the private investor 
- this week published propos- 
als for unit trust disclosure. 

As with life assurance disclo- 
sure, the basic format is a sim- 
ple. four-page leaflet. This sets 
out the aims of the fund, the 
commitment asked from the 
investor, the risk factors 
involved and, most impor- 
tantly, the effect of the charges 
on the value of the investment 
For unit trusts, providing 
clear details of a product’s 
aims always have been an 
essential part or disclosure 
although, compared with any 
long-term, front-end loaded 
insurance product, the amount 
of commitment involved in a 
unit trust investment is mini- 
mal Risk factors and the effect 
of charges arc more difficult. 

On risk, the P1A goes well 
beyond the hallowed formula 
about fluctuating values - "the 
price of units and the income 
from them can go down as well 
as up" - to include all the fac- 
tors which might have an 
adverse effect on performance 
or are otherwise relevant to a 
decision to invest. 

The most controversial pro- 
posals will undoubtedly be 
those on the effect of charges. 


PiA formula for showing 
charges (on £1 f OOO) 

End of year 

Etta of forges 

No gnwtt 7.5ft pcmfli 

1 

64 

68 

3 

90 

112 

5 

116 

167 

10 

178 

367 


These have been rising steadily 
since they stopped being regu- 
lated in 1979. Before then, the 
initial charge and the annual 
charge added together could 
not exceed 13.25 percentage 
points over 20 years (say, 325 
per cent initially and 0.5 per 
cent a year). 

Today, the typical unit trust 
charges 6 per cent initially and 
15 per cent a year. This adds 
up to 36 percentage points over 
20 years - nearly three times 
what used to be permitted. 

The unit trust movement is, 
rightly, proud of the fact that 
charges always have been 
stated clearly. The problem has 
been that the effect of those 
charges is never set out And 
while the numbers seem very 
small they have a big impact. 

After all. a 1.5 per cent 
charge will reduce the returns 
from a growth rate of 7.5 per 
cent by 20 per cent and from a 
5 per cent growth rate by 30 
per cent. The PLA proposals 
sby away from explaining this. 


The clearest way of showing 
the effect of charges is to give 
the value of an investment at a 
fixed growth rate, assuming no 
charges, and to compare it 
with the value after making 
allowance for charges. This 
could be done in a simple two- 
column table using a standard 
£1,000 investment, periods of 0, 
l, 5, 10 and 25 years, and a 
sensible growth rate of perhaps 
5 per cent 

The proposals reject the idea 
of showing these two growing 
values side by side. Instead, 
they set out a table of charges 
(see column two) extracted 
from a £1,000 investment over 
1, 3. 5 and 10 years assuming 
no growth, and a similar table 
showing growth at the optimis- 
tic rate of 7.5 per cent (or 9 per 
cent for personal equity plans). 

Dangling the effect of 
charges in this way begs the 
question: effect on what? And 
the useful addition of showing 
the effect of any spread with 
returns at 0 years is rejected 
on the ground that very few 
people ever sell them: invest- 
ment on the day they buy it 

True. But few people sell 
their new car as they drive out 
of the showroom - yet no one 
thinks it odd to show its imme- 
diate depreciation in that way. 

Tim Miller 

■ Tim Miller is chairman of 
Portfolio Fund Management 



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1995 


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Innovative trust planning to invest in “information infrastructure" m emerging markets 

■ I nynrrl Brewers 

Lazard hvestors (071 614 3065) 

Grajg Wtkfieton UK Genoa) 1:5 50m 3% Yus nte lOOp 96p n.DOO 1% n/a n/a end Sept lor 3 nh$ 

Specialising in regional brewers, pub companies and others involved in the production or sale of drinks 

■ Prolific Income 
Prolific (0800 998855) 

James Capd UK Inc Growth 1:5 40+ 4 %+ Yes Yes lOOp 95.1p 2.000 0.8ft 2,000 1.6ft 229/94 -13/10/94 

Similar Investment strategy to existing Proliflc High Income unit trust, ranked 30th of 94 funds over five years 

NEW UNIT TRUST LAUNCHES 

Target Fun Samgs - Chargee outs** 19 - Mrtmum - Dopes ns toe PH* - Mntaom Speed oiler 

Ytott PB* Schemes MUd Aimal Oher InM. mat Aouai Other hr* Decani Fxmd 

manager (Telechone) Seen ftOuaiawmiftftftEftftftCft __ 

■ Extra income Fund 

Save & Prosper (0800 282101) UK Equity Income 6^5 Yes Yes 2 1.5 No 1,000 2 1.5 No 1.000 * KV9/&4-30/9.-94 

The annual charge is taken out of capital to boost income. About 55 per cent will be invested in btuechips, the rest in fixed-interest slocks. 

• > pmzxnaga pant mscounf on InmtmMa or tSOOfrOftSM: no mOal ermpo On CTftOOP ana 

■ Managed Growth Fund 

M&G (071 626 458® Red of Funds 1 Yes Yes 5 1.5 No £500 0 1.5 Yes" £1,000 &■ 10/94 -28; m'94 

M&G’s second fund of funds, this one concentrates on long-term growth. It is also the second M&G no-lnhial -charge Pep 

“ IW»>a— I eftapm on a tUng acate bum 4£ par cert n Are? yrar demr, tp o attar tha end oi mo Wi iw 


Withdrawal symptoms 


total return terms." She was 
vague, however, on whether 
this would be long-term policy 
for M&G. saying the pressures 
OI competitive life made a defi- 
nite forecast difficult. 

Schroder is to write to the 
14,500 holders of its £128m 
Income fund in November tell- 
ing them that the fund will 
begin taking its 1 per cent 
annual charge out of capital 
next February. This will lift 
the yield by 28 per cent, from 
3.6 to 4.6 per cent Unit-holders 
who object will be offered, a 
free switch into another of the 
group's funds. 

According to Bridget Clev- 
erly, assistant director of mar- 
keting, the group thinks the 
change will be tax-neutral “It 
will make our income fund 
much more attrac t i ve for peo- 
ple looking for income cot 
total return," she says. Schro- 
der also is considering a simi- 
lar move involving its gilt and 
fixed interest trust and global 
bond fund. 

Both Fidelity and Gartmore 
have decided against altering 
any of their existing funds at 
present. But at Prolific, which 
has yet to decide, marketing 
director Mike Webb says there 
is a very sound investment rea- 
son for charging fees to capital. 

It is, he explains, easier for 
the fund manager to achieve a 
yield by investing in compa- 
nies lower down the yield 
curve than is possible when 
fees come out of income. This 
means the fond manager is 
able to buy shares with better 
prospects for long-term capital 
growth. 


M&G is about to launch a 
personal equity plan with no 
initial charge - the second 
since its successful Managed 
Income personal equity plan in 
January, writes Scheherazade 
Daneshkhu. Instead, M&G will 
make its money from its 
annual charge of 1.5 per cent 
and withdrawal fees. 

These are intended to 
encourage long-term invest- 
ment You would pay 4J> per 
cent for redeeming in the first 
year with a tapered structure 


of 4, 3. 2 and 1 per cent over 
the next four. There would be 
no exit charge after the fifth. 
The Pep is based on a new 
fond. Managed Growth, which 
will invest in other M&G funds 
aiming for capital growth. 

Fidelity is aiming to go one 
better. From Monday, it will 
drop the initial charge on its 
Moneybuilder Pep. which does 
not have a withdrawal charge. 
Moneybuilder is also a fond of 
funds and is in the top five in 
the sector in the five, three and 


two years to August 1 (source: 
HSW; offer to bid, net income 
re-invested), although perfor- 
mance has slipped since then. 

Investors will have to pay an 
annual management fee of up 
to 1.75 per cent, since Fidelity 
is chargin g 0.5 per cent in addi- 
tion to the annual fees of the 
underlying fnryfe 

Fidelity pioneered with- 
drawal fees in June 1992 but. 
along with Gartmore, dis- 
pensed with them earlier this 
year. But the Securities and 


Investments Board, the chief 
financial regulator, announced 
this week that unit trusts will 
be able to impose exit charges 
from November l (previously 
the trust had to be within a 
Pep to be able to do so), a move 
which the industry welcomes 
as giving it more flexibility. 

Unit trusts will not be able 
to charge more, though: a com- 
bination of initial and exit fees 
must not exceed more than the 
present maximum of 7 per cent 
initial charge- 


INVESCO-Logical 





Science has brought us new criteria 
against which we measure the world around us. Robert 
Hooke, for example, changed the way we view life when 
he discovered cells through microscopic observation. 

The same minute observation is applied 
at INVESCO to international investment opportunities. 
The result is products such as the Managed Fund, that 
could change the way you see investments. 

As global investment specialists, wo 
research activity across the world, looking for the regions, 
like the Far East. Europe or North America, that offer 
the most promise for investors. Economies are then 
measured and analysed, sector by sector -for example, 
is communications more attractive than construction? 

These results are put under the micro- 
scope as we look for the actual stocks that offer 
the best opportunities - like the Japanese equivalent 
of British Telecom. 

Finally, this accumulated knowledge, 
gathered and analysed by up to 135 fund managers 
across 35 countries, is applied to the Managed Fund. 

It is because we understand that our 
clients' long-term objectives are best met by consistent 
results that each one of our investment judgements is 
made on a scientific basis. 

As one of the few global investment 
specialists, wc believe that research, analysis, measure- 
ment and understanding must always be applied 
to investment. 

We don't believe in instinct alone, 
because what we aim to do could affect your future 
as profoundly as any scientific breakthrough. 

If you'd like to know how INVESCO's 
scientific approach can benefit your long-term invest- 
ment objectives, please complete and post the coupon, 
or call us free on 0800 010 333. Alternatively, contact 
your Independent Financial Adviser. 



INVESCO 

The scientific approach to investment 



RESEARCH - — r ANALYSIS - — * MEASUREMENT - — *■ UNDERSTANDING 

Please send me more details on (tick as appropriate):;... □ MANAGED FUND Q INVESCO , 

Surname ^ . ■- (M^MrsiMiss/Afe) — -J -1 Initials 

Address - ■=' * • - '* — ;* f- V >! ' "It 

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Please complete and post to INVESCO, FREEPOST, 11 Devonshire Square. London EC2B 2TT. u-nin 


INVESCO is the marketing name of INVESCO fund Managers Ltd. The value of investments and any income from them can fall as well as rise and you may 
not receive back the amount invested, particularly in the case of early withdrawal. Overseas investments may also fall or rise due to currency fluctuations 

INVE5CO Fund Managers Ltd. is a member of IMRO. LAUTRO and AUTlf. 



VHl WEEKEND FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 


24/SEPTEMBER 


25 Z994 


FINANCE AND THE FAMILY 


Charges to watch 

Personal pensions and you: Debbie Harrison reports 


W hen you take out 
a personal pen- 
sion, it is tempt- 
ing to assume 
that if the provider is a house- 
hold name and its performance 
record Is up to scratch, you are 
on to a winner. But this i is sim- 
ply not true. 

Performance, arguably, is 
the most important criterion 
but the provider's charges 
come a close second. Where 
charges ore high, the perfor- 
mance must consistently be 
outstanding to compensate. 

Yet, the latest survey from 
Money Management magazine* 
reveals just how many sec- 
ond-rate products are avail- 
able. Hearts of Oak friendly 
society deducts just under 40 
per cent of your premiums In 
charges while its performance 
is unexceptional, to say the 
least. By comparison, one of 
the lowest chargers. Abbey 
Life, deducts about 14 per cent 
Other high chargers identi- 
fied in the survey include 
Royal London, Eurolife, British 
Life Office. Lifetime, Refuge, 
Ac uma, Colonial Mutual, 
Hambro Guardian, Crown Life. 
Gartmore, Providence Capitol 
and Windsor Life. 

Analysis of charges is partic- 
ularly important when, as at 
present, there is a marked lack 
of consistency in performance 
league tables. In the survey, 
several household names failed 
to match up to expectation. 

Standard Life's with-profits 
plan is one of the worst per- 
formers over 10 years as is 
NPPs, which only just avoided 
the bottom five category. 
National Mutual’s overall per- 
formance, one of the best in 
Money Management's March 
1994 survey, took a nose-dive in 
the latest tables. 


Lowest and 
highest chargers 


Lowest five 


Abbey Life 
Equitable life 
Rothschild AM 
NFU Mutual 
Guardian Ass 


34,830 

34,781 

34,444 

34,299 

34.285 


Highest five 


Hearts of Oak 

28.772 

Refuge 

29,490 

Lifetime 

29,565 

EuroUfe 

29.837 

Floyal London 

30.487 


n» teth eharm mhm yam hnd mould be \eerO> 
aher chargn f you Inmst £300 a month hr 10 
yean In * utMnM (San. a oa u m h g a snwffi 
am a! 9 par cant Sara* honey Management 


Top and bottom 

performers 


Top five 

£ 

Sun Life 

57,297 

Floyal London 

58,131 

Co-Operative 

54,739 

Scottish Mutual 

54.210 

Scottish Eq 

53,714 


Bottom five 


Guardian Ass 

39,014 

London Life 

40,797 

Standard Life 

41,214 

Floyal Life 

41.288 

Prudential 

42^79 


7 Ha UM den Ota amrt pofcf out after 
chmgto 1 you tomaetf EMC per month hr to 
yen in a wth**oAi P km - 
GotMCtc Money Management 


But while high charges can 
undermine a good performance 
elsewhere, charges alone do 
not guarantee good value. Sev- 
eral of the lowest charging 
offices also achieved notably 
poor returns. Guardian Assur- 
ance and NPI fall into this cat- 
egory. 

Personal pensions have 
attracted a lot of criticism 
since their launch in July 1988. 
Nevertheless, more than 5m 


have been sold to the self-em- 
ployed and to employees who 
are not in a company scheme. 

Although there is nothing 
wrong with the concept of per- 
sonal pensions, the high com- 
missions and charges associ- 
ated with them mean they 
have been mis-sold widely to 
employees who would have 
been better off in the state 
earnings-related scheme 
(Serps) or their company plan. 

Despite the adverse public- 
ity. however, there are still 
more than 100 financial institu- 
tions selling these products. 
Surveys such as Money Man- 
agement's indicate that over 
half are not competitive. 

Clearly, it is vital to shop 
around to get the best value 
for money (see below). Until 
January 1995 this will not be 
easy because, at present, pro- 
riders do not have to teD you 
what their real charges are. 
Unless your adviser consults 
the latest surveys and has a 
comprehensive database on 
charges and performance, the 
advice will be worthless 

It will continue to be worth- 
less if, when the new rules 
come into force and providers 
must tell you their true 
charges, these are not com- 
pared with those of competi- 
tors. 

Yet, according to the Associ- 
ation of British Insurers, the 
vast majority of regular-pre- 
mium personal pension plans 
continue to be sold by direct 
salesmen or companies that 
agree to sell only one provid- 
er’s products and do not have 
to tell you that you can do 
better elsewhere. 

* Money Management, FT Busi- 
ness Magazines, Greystoke 
Place, Fetter Lane, London 
EC4A IND (tel: 071405 8969). 


Points to consider before you decide 


Before taking out a personal 
pension you should take 
advice, preferably from a fee- 
based independent adviser who 
will not be influenced by the 
amount of commission he can 
earn, unites Debbie Harrison. 
And you should consider these 
points: 

■ Will the provider remain 
strong financially over the 
long term - or does the organi- 
sation look a potential target 


for a takeover bid or a merger? 

■ Is the performance consis- 
tently good over the long term? 

■ Is the investment team t h a t 
achieved this performance still 
in place? 

■ How much of my premiums 
will disappear in charges? 

■ Does the adviser have a 
good software system to check 
providers’ real Charges? 

■ Are the contract conditions 
flexible? Can I increase. 


decrease or stop payments 
without penalty? Can I retire 
early/late without penalty? 

■ Will the adviser ensure that 
all commission payments are 
stripped out of the plan if I pay 
on a fee basis? (If you pay on a 
commission bads, then opt for 
a series of one-off or "stogie" 
premiums to avoid the high up- 
front charges associated with 
long-term, regular-premium 
plans). 


H alifax decided on 
its new standard 
mortgage rate this 
week, emboldening 
a host of other building societ- 
ies to do the same. It has 
passed on almost the full half 
percentage point rise in base 
rates by increasing its stan- 
dard variable rate to 8.1 per 
cent from 7.64. This applies 
already to new bo r r o w e rs and 
for existing borrowers from 
October!. 

Other building societies 
which have raised their stan- 
dard variables rates to 8.1 per 
cent include Alliance & Leices- 
ter, Bradford & Bingley, Chel- 
tenham & Gloucester and Chel- 
sea. Barclays Is one of the few 
banks to have announced its 
new rate, also of 8.1 per esnt, 
with effect from October 1 for 
new and existing borrowe rs . 

Another batch of lenders are 
clustered around 8.14 per cent 
These include Bristol & West, 
Britannia, Leeds, Nationwide 
and Northern Rock. Abbey 
National and National & Pro- 
vincial are on 8.09 per cent, 
while TSB and Bank of Ireland 
are at the lower end of the 
market with &05. 

The TSB rate represents a 
rise of 0.6 of a percentage point 
- higher than the base rate 
Increase - and comes into 
effect for new and existing bor- 

National Savings has launched 
new issues of its fixed-rate 
products a week after the gov- 
ernment put up base rates by 
half a percentage point, writes 
Scheherazade Daneshkhu. Vari- 
able-rate products are unaf- 
fected. 

■ Savings certificates: The 
new 42nd issue pays a tax-free 
5.85 per cent a year compound 
when held for five years. The 
return is equivalent to an 
attractive 9.75 per cent gross 
for a 40 per cent taxpayer (7.8 
per cent gross for a tower-rate 
taxpayer). 

■ Index-linked certificates: 
The 8th issue pays the same as 


Lenders rush to 
follow Halifax 

Scheherazade Daneshkhu on mortgage rates 


rowers from October 20. Wool- 
wich Is the largest society yet 
to announce Us new rate and 
most of the banks also are 
undecided. 

■ Discounted rates 
You can avoid the higher rates 
by taking advantage of dis- 
counted rates still available 
from a large number of lenders 
including Abbey National, Alli- 
ance & Leicester, Bristol & 
West, Cheltenham & 
Gloucester, National & Provin- 
cial and Woolwich. These offer 
a percentage reduction on the 
variable rate over various peri- 
ods and can represent substan- 
tial savings for new borrowers. 

Cheltenham & Gloucester 
offers a three percentage point 
discount for 12 months to those 
with a deposit of at least 20 per 
cent, or one of 2 per cent to 
those borrowing up to 95 per 
cen t of the value of their home. 





The three percentage print 
discount amounts to a saving 
at present of £110 a month on a 
£50,000 interest-only loan, and 
of £235 a month on £100.000. 
These amount respectively to 
SL320 and £2£20 over the year. 


Lenders, however, are using 
discounted rates to increase 
their market share rather than 
provide a better service to 
their customers. This is 
because they are available only 
to new borrowers (although 
some lenders, such as Halifax, 
do not ma ke them available for 
re-mortgages at all). 

This means that existing bor- 
rowers are being left out. “It 
has caused us the occasional 
slight h eadache, since some of 
our borrowers are raising their 
eyebrows over this,” says 
Abbey NationaL “But we do 
not think it would be right to 
let our borrowers switch to 
tower rates just because it hap- 
pens to be better.” 

What can existing borrowers 
do? Many lenders are offering 
to cover some of the re-mort- 
gage costs of those tempted to 
switch lenders. Abbey National 


National Savings quick to launch new issues 


the one it has just replaced - a 
return of 3 per cent a year com- 
pound in addition to inflation 
when held for five years. The 
new issue has been released 
because purchases above the 
minimum no longer have to be 
Tnnrfo in multiples of ms - they 
can now be in any amount. 
The same applies to the 
savings certificates. 

How attractive you find 
index-linked certificates 
depends on your view of Infla- 
tion over the next five years. 

■ Yearly plan: The tax-free 
five-year return is increased to 


5B5 per cent a year compound. 
The phm is Hftg jgnori to help 
those who want to buy a 
savings certificate through, reg- 
ular instalments. Monthl y pay- 
ments of between £20 and £400 
are maria by standing order for 
12 months to buy a four-year 
Yearly Plan certificate. 

■ Capital bond: This taxable 
fixed-rate product is aimed at 
non-taxpayers, since the return 
is paid gross. The new series I 
pays 7.75 per cent a year com- 
pound if held for five years. 
But given that the returns are 
tavahia and the money is tied 


up for five years, many people 
may find even the new rate 
relatively unattractive. 

■ Pensioners guaranteed 
income bond: The new Issue 
pays 7£ per cent a year gross, 
fixed for five years and paid 
monthl y on a minimum of £500 
to those aged 65 and over. 
Interest is taxable but is paid 
gross. There are few products 
paying monthly income on 
such a small deposit but took 
first at fixed-rate building soci- 
ety rivals. 

■ Children’s boons bond: 
Issue G now pays 7.85 per cent 


itself is offering to pay up to ^ 
2320 towards the valuation and 
£250 towards legal fees. 

It is almost certain to be 
worth taking advantage of 
such offers to order to got tho 
reduced variable rate, although 
it is important to calculate all 
the costs and balance these 
against the savings to see if it 
is worth switching- 

But one FT reader, reluctant 
to leave his present lender, 
claims he could move to 
another offering a discounted 
rate and then switch back to 
bis original lender as a “new” 
borrower, entitling him to get 
its discounted rate while incur- 
ring minimal costs. 

Before going through this 
rigmarole, though, It is worth 
pik ing to your lender - partic- 
ularly if you are a highly-val- 
ued customer - to see if you 
can get the discounted rate. 
Cheltenham & Gloucester says 
the only way existing custom- 
ers could secure the discounted 
rate is by re-mortgaging with 
the society. 

Abbey National is reluctant 
to endorse a similarly absurd, 
but at least flexible, position. It 
hopes that its customers will 
realise there is more to a mort- 
gage its interest rate, and 
that having a long relationship 
with a lender can reap benefits 
- such as further loans. 

a year when held for five years # 
on £25 up to a maximum of 
£1,000. The bond is a useful 
way for parents to give to their 
children as it is tax-free. 

■ First Option bond: Aimed at 
taxpayers, returns on this 
bond, which are fixed for one 
year, are paid net of basic-rate 
tax. The new issue pays 6.4 per 
cent gross, equivalent to 4J8 
per cent net, on £1,000^19,999. 

The rate goes up to 6.8 per cent 
gross (5.1 per cent net) on 
£20,000 up to a maximum of 
£250,000. The rates are competi- 
tive but not overly so. Look 
first at building society fixed- 
rate products. 


Annuities 


Rates reach year’s best level 


Annuity rates are at their 
highest since the start of the 
year, having risen by an 
average of 16.5 per cent This 
week, some life companies 
increased their rates against a 
background of rises in 
long-term gflt yields. 

These were fL9 per cent on 



Consider one simple thought: your retirement could easily last as long 
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We’ve prepared a full information pack which spells out how it's 
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Find out how you can: 

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the full benefits of a successful 
career when you ret i re 

■ strike the right balance 
between your current 
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needs 

■ create a plan with the 
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changes in your fife 


FREE INFORMATION PACK 



Call Free on 0800 80 60 60 


Lines open 8am to 8pm Mondays to Fridays and 9om to 5pm Saturdays and Sundays 


Vos Pfeaw send me an Information Pack free of charge on financial planning with Provision 
Fosi today, without a stamp, to: Clerical Medical investment Group. Financial Planning Centre. 
FRfEPOST, Narrow Plain, Bristol 8S2 <3AB. 


PRO 


Title iMr/Mre/M m/Ms/O thor) 


Name 


, Financial Planning for the Professional 


Address 


Postcode 


Independent Financial Adviser Of any) 


Clerical Medical 


Telephone (home) 


(work) 


67/22 


INVESTMENT GROUP 


■l*' •*" piiwjr i*i Pm l.,m itwy tf hett Omul VrM on computer, m may Hr <nM la wg mi riontd rtmui fpttucn *■! xma p- u wded b* vn ml «h« myn u iiWi w 

IW wft l» ol n«ni to you P you ■ to* to titnr Ihri * ita r rt uMn. deast wife to it J! Btr Jbne adftra. 

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Aiwskp «id ik iutr*tunr, iwiici j w* unqr cl «»hi w ih wd pw*a paduen 


September 12 - the day the 
Chancellor, Kenneth Clarke, 
announced a half percentage 
point increase hi base rates - 
and had risen to 9.25 per cent 
by September 20. 

As the table shows, Royal 
Life is looking very 
competitive, having raised all 
its annuity rates on September 
2Q. Sun Life Of Canaria and 
Canaria life have also 
increased theirs. 

Since the start of September, 
annuity levels at Canada Life 
have increased by around 2 
per emit, at Royal Life by 
around 4J3 per cent, and at 
Sun Life by around 2.4 per 


cent. These rates cover a male 
aged 60 on a particular set of 
benefits. 

The uncertainty of how 
long-term interest rates wiQ 
perform and this week's fall in 
bonds are, however, beginning 
to affect the annuity market 

And while annuity rates are 
quite high at the moment, 
most actuaries are expecting 
them to fall slightly as the 
year draws to a dose. 

Thus, it is imperative for 
you to shop around for the 
annuity best suited to your 
needs. 

Peter Quinton, 
The Annuity Bureau 


LATEST ANNUITY RATES 

Compulsory purchase level annuity 

Male age 65 

Royal life 

Sun Ufe of Canada 
Prudential 

Annuity 

S1A3S8J5 

£10.210.73 

£10.12356 

Female age 50 

Royal Ufe 

Prudential 

Sun Ufe of Canada 

Annuity 

£9,44524 

£9,161.64 

£9.15535 

Mate age 60 

Royal Lite 

Sun Ule of Canada 
Prudential 

Annuity 
£11.211.59 
. £11,07925 
£10.829.48 

Female age 60 

Royal Lite 

Sun Ufe of Canada 
Prudential 

Annuity 

£10.417.17 

£10,10094 

C10.058.7S 

Male age 70 

RNPFN 

Royal Life 

Canada Lite 

Annuity 

£14,492.76 

£14,389.44 

£14.180.04 

Female age 70 

Royal Life 

RNPFN 

Canada Ufe 

Annuity 

£12,683.00 

£12^12^2 

£12JZ95^4 

Joint Lite - 100% spouse's benefit 

Mate 60/Femate 57 
Royal Lite 

Sim Life of Canada 
Prudential 

Anrnity 

££529.18 

£9,25301 

£9234.12 

Mete 65/Femate 33 
Royal Ufa 

Sin Life of Cmada 
Prudential 

Amity 

£10.11983 

£9.81537 

£9.777.72 

AS poyamnh aim mouHf In advance. AMm moot at September 70 I9M ffjuai anuma ■ jMCftn* 
prt» or tnojOOO and me ehoem gnm. UrtRfiV mM *» uU only U those in tfw ruthg mO 
mad pnOouhne. Ffeuai auopfad by to Annuity Bunai UhSkC DOmprlto House, SOUS Upper 
Ground, lartn SB Jte Iw 071 4DB0 


Savers 

must 

wait 


A s the dust settles 
after the base rate 
rise, long-term fixed- 
rate products con- 
tinue to flourish: Cheshire 
building society, for instance, 
has introduced a bond paying 9 
per cent until December 12 
1999. Escalator bond rates also 
continue to rise. 

But savers hoping their 
income from everyday 
accounts will be unproved may 
be disappointed. Of the high 
street banks, only Barclays has 
moved to increase rates to sav- 
ers - on average, by the full 0.5 
per cent 

When rates fell in February 
and banks were able to pay 
savers less, the rates were 
changed much more quickly. 
But it is usual for bank savings 
rates to rise or fall in line with 
the base rate change, anri rises 
can be expected eventually. 

This is not the case with 
building societies. With the 
rise in base rates, mortgage 
rate increases have been 
announced relatively quickly. 
The average rise at present is 
0.4 per cent, immediate for new 
loans and from the beginning 
of October for existing borrow- ' 
ers. 

The few savings rates that 
have been announced are up 
by an average of only 0.2 per 
cent and, again, these wifi be 
paid from the beginning of 
October. 

Most societies are waiting for 
the bigger players to make a 
move on savings rates and will 
then follow. In any case, delay- 
ing an increase in savings 
rates means they will be col- 
lecting more interest from 
mortgages than they are pay- 
ing out on savings. 

If, however, building societ- 
ies do delay rises In savings 
rates and then increase their 
margins, returns from National 
Savings will start looking more 
competitive. 

Christine Bayliss, 
Moneyfaets 


HIGHEST RATES FOR YOUR MONEY 




Notion/ 

Wntaum 

Rato 

bit 


Account 

Telephone 

term 


% 

paid 

INSTANT ACCESS A/cs 

Portman BS 

Instant Access 

0202 292444 

Instant 

£500 

5jQ0« 

YV 

Manchester 8S 

Money-ty-MaB 

081 834 9455 

Postal 

£1.000 

5.80* 

viy 

SHpeonSS 

3Hgh Street 

0756 700511 

Instant 

C2J000 

6.10* 

VY 

Manchester BS 

Money-by-Mafl 

061 834 9465 

Postal 

£25,000 

6.40% 

Y!y 

NOTiqe A/cs and BOMDS 

Bradford & Bfngley 

Bract Notice 

0345 248248 

30D«y(P) 

£1,000 

6.00* 

Yiy 

Northern fioc* 8S 

Postal 60 

0500 505000 

eODajrfP) 

£10,000 

655* 

Yly 

Universal BS 

1 Yr. Ms* Option 

091 232 0973 

90 Day 

£10.000 

8-80% 

'hi 

Chaste* BS 

MferAan Band 

0800 243278 

31.124)9 

EL000 

9.0Q96F 

Y* 

MONTHLY BIIIHUT 

Britannia BS 

Capital Trust 

0638 391741 


£2,000 

' 537* 

Mr 

Bradford & Bftgey BS 

Direct Notice 

0345 248248 

30Oay(P) 

£10.000 

630% 

My 

Universal BS 

1 yr. Hgh Option 

091 232 0973 

90 Day 

£1.000 

535* 

My 

Raffia BS 

Guaranteed Rasrve 

0422 333333 

3 Year 

£10400 

&46*F 

My 

TESSA* (Tax Reel 

Market Hartwrough BS 


0858 463244 

5 Y*r 

£9,000 

730* 

VV 

Hrektoy i Rugby BS 


0455 251234 

5 Year 

ra.oooA 

735* 

V h 

Hobneadde BS 


0737 245718 

5 Year 

£1 

7.15% 

Yly 

Nottingham BS 


0602 481444 

5 Year 

£1 

7.10% 

Yiy 

MGH INTEREST CHEQUE A/cs (Gross) 

Wbohrlcti BS 

Current 

0800 400900 

Instant 

£600 

330% 

Yly 

HaSax BS 

Asset Reserve 

0422 335833 

fostant 

£5,000 

430% 

ay 

Chelsea BS 

Classic Postal 

0800 717515 

tnstent 

£2.600 

5.75* 

YV 





£2S£00 

6.00% 

Yiy 

OFFSHORE ACCOUNTS (dross) 

WooMch Guernsey Lid 

International 

0481 715735 

fostant 

£500 

5.75% 

Yly 

Portman Channel Islands 

- Gold Plus 

0481 822747 

90 Day 

£20,000 

6.65% 

Y»y 

Yorkshire Guernsey Ud 

O’shora Key £ 

0481 710150 

180 Day 

£50,000 

7.00% 

viy 

HattnBS 

Fixed Rate 

0534 58840 

5 Year 

£10,000 

8.60% 

Yiy 

GUARANTEED MCOME BOBS (Met) 

liberty Ufe 


081 440 8210 

1 Year 

£25,000 

5.60%F 

ny 

General FortfoBo 


0279 482839 

2 Year 

£20,000 

&30HF 

YV 

Premkm Lite 


0444 458721 

3 Yew 

£1,000 

BJ90%F 

viy 

General Portfolio 


0278 462839 

4 Year 

£10000 

r. 30%F 

Yly 

Generd Portfolio 


- 0279 482838 

5 Year ■ 

£50.000 

7.70%F 

viy 

NATIONAL SAVMQS A/Cm A BOWS (Cross) 


investment A/C 


1 Month 

£20 

535KG 

V H 


Income Bonds 


3 Month 

£2^00 

830% H 



Capital Bonds 1 


5 Year 

£100 

7J5*F 

0M 


First Option Bond 


12 Month 

£1.000 

6l«G*B 

Yiy 


Pensioners GIB 2 


5 Year 

£500 

730*F 

My 

NAT SAYINGS CERTOCATES (Tax Pres) 





• - 



41st Issue 


5 Year 

£100 

6.85%F 

OM 


7th index Linked 


S Year 

£100 

1QQ*F 

0M 


ChSdrens Bond Q 


5 Year 

£25 

fWti 

735%F 

0M 


this table covers m$ar banks and BuMfng Societies only. AH rates (except those imier baad&w Guwwiteed Income 
Bond^aresfwwn &oss. Fixed Rgte^i other are *yiabta) OM . Interest pad onStty. N- Net Rata. P* 
By Post only. A = Feeder aocourtabo required. B* 7 day loss of interest on an withdrawals. G- S.75 per cant on 
SS00 and above; 6 per cent on £25,000 and above. H= 6.75 per cent on £SS.000mdaS«. h 6.60 par cent® 
£20.000 end aboy aSoy ce: MOfeVT ACTS, Die Monthly Guide to Investment and Mortgage Rates, Laundry Loko, 

SnplIe^wvS G^S?^ R to94 BD ‘ ****** can 0bta,n m lntrodljCtaf > “PV by pSwring 0582 500865. Figures 


Who said your 
business can't 
have free banking 

and earn 4.00% 

gross pa? 

CaB 071-2031550 during office hours or 24 hour line 071-626 0879 



You can have 60 free 
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AJ..LJ E D f TR U5j 

Cjw» Brftfc.*, OongK H*. lotion K« »I 


V 




to 


HNANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


PERSPECTIVES 


WEEKEND FT IX 


-4? 'V;;i , 


*■" -i-*T 




Mind ing Your Own Business 

Trains on 
the school 
timetable 

Paul Cheeseright visits a station 
and travel agency run as a going 
concern by Shropshire schoolgirls 


M oreton Ha Li 
Travel defies 
the canons of 
business 
orthodoxy. 
No business plan, just an idea 
or two about expansion. No 
stable management, just execu- 
tives passing through. But, as 
its first financial year comes to 
an end, it shows a profit. 

At one level, Moreton Hall 
Travel is an educational play- 
thing. At another, it is a seri- 
ous concern; serious enough to 
I lave handled £262,000 during 
the year to July. 

It is in fact a business run by 
students of Moreton Rail, a 
£l0,000-a-year girls school near 
Oswestry, Shropshire. The stu- 
dents. under the eye of David 
Lloyd. a geography teacher, 
operate primarily as agents for 
British Rail but are starting to 
diversify the business into 
other forms of travel. 

“Everything has been going 
slowly, one step at a time, so 
that if we got into financial 
difficulties, we could ease out 
of it.” said Uoyd. 

The first step was taken 
eight years ago. The school 
" booked rail tickets for the 
pupils, the youngsters paid and 
British Rail sent the tickets 
back, plus 9 per cent commis- 
sion. The funds accumulated to 
the extent that the school had 
enough money to construct a 
little travel agency in the geog- 
raphy room. 

That provided an opportu- 
nity for work experience in an 
undemanding environment. 
But a year ago, the school 
made a leap into the wider 
commercial world. It kept the 
geography room travel desk 
working, but took over the 
booking office at nearby 
Gobowen station. 

Gobowcn. on the Shrews- 
Imry-Chester line, is the rail- 
head for Oswestry. The build- 
ings at the station are owned 
and have been refurbished by 
English Partnerships, the gov- 
ernment regeneration agency. 

.. The school provided £1,000 to 
help equip the booking office. 
"We lease the booking office. 
— We have no jurisdiction over 
the platforms, but the Wom- 
. en's Institute provides tbe 
dower tubs. We haven’t taken 
over the station as such," 
Lloyd explained. 

With the booking office 
Moreton Hall Travel found 
itself with responsibilities. It 
needs, for a start, to find £3J>0G 
to rent tbe building. It pays 
£170 a week to tbe booking 
office manageress. Ceinwen. 
Lloyd's daughter who is spend- 
ing a year at Gobowen before 
going to university. There are 
the water, electricity, tele- 
phone and rates bills. 

The responsibilities shift 
from year to year. Girls from 


tbe upper sixth direct. Most of 
tbe work is done by the lower 
sixth, which trains the upper 
fifth. The inner circle of cur- 
rent directors is Sabrina Harts- 
horn, Deborah Pratley. Emma 
Sharp and Emma SherraxtL 
"We’re being shadowed by 
Mr Lloyd but we have a large 
say in what goes on. We can 
take the initiative. The deci- 
sions are taken as a team," 
said Hartshorn. 

This team is of an expansion- 
ist frame of mind. "The first 
thing is to get into a larger 
building so we can get more 
people working here.” Sharp 
said. “With more room we 
could attract larger support,” 
added Hartshorn. 

The immediate snag is the 
railway timetable. "At the 
moment with British Rail in 
such disarray, you're not sure 
where you stand,” said Pratley. 
"Future revenue depends on 
the timetable. It’s not too good 
so it loses us customers,” said 
Sharp. 

The railway agency business 
accounts for 90 per cent of 
Moreton Hall Travel’s revenue. 
The only British Rail services 
which Moreton Hall Travel 
cannot sell are season tickets 
and warrants for the armed 
forces. But the railway traffic 
provides a public which may 
buy other travel needs and 
forms one part of a firm cus- 
tomer base. 

Another part of that base is 
the mass of the pupils’ parents 
and parents' friends. With such 
a base, hopes of diversification, 
nursed by the directors, look 
encouraging. 

An obvious step is expansion 
into forms of travel other than 
the railways. Moreton Hall 
Travel takes air bookings but 
places them through Brian 
Bass, the Shrewsbury travel 
agent The difficulty is that the 
commission is just 2 per cent 
There are plans to use 
Gobowen station as a tourist 
information point for Oswestry 
Borough Council, which would 
generate income from the pro- 
vision of the service, and to 
establish an extension of 
Oswestry’s railway and bicycle 
museum. This is where the 
need for extra space comes in. 

Leasing a second building at 
Gobowen, which Lloyd thinks 
would add SO per cent to the 
rent bill, would provide the 
scope for the additional enter- 
prises and provide a place 
where pupils could study for 
vocational qualifications in lei- 
sure and tourism, while gain- 
ing their work experience on 
the spot. "We need to start 
creating some employment 
ourselves." said Sherrard. 

All of this is going to make 
Moreton Hall Travel a more 
complicated enterprise. The 
business, which has no capital 



Directors from the Upper Sixth; Deborah Pratley, Sabrina Hartshorn and Emma Sherrard of Moreton Had School at Gobowen Station 


Tony Andrews 


Germany 
out of step 


Continued from Page I 

Germany's economic problems 
reflect insufficient innovation 
and dynamism, he says. "Not 
enough is coming out of our 
research centres. For an aver- 
age young German business 
studies graduate, the idea of 
rolling up his sleeves, starting 
a business with his wife and 
possibly working himself to 
death is much too abstruse 
even to be considered." 

Ludolf von Wartenberg, gen- 
eral manager of tbe Federation 
of German Industry (BDI), is 
less pessimistic - but admits 
that German industry’s drive 
to become more competitive is 
taking its toll on employment. 

"In two or three years’ time, 
German industry will have 
recovered brilliantly. The 
share of manufacturing will be 
lower, but we will be fully com- 
petitive. We will preserve the 
heart of our economic system. 
But the concept of ‘Made in 
Germany* will be replaced by 
’Designed in Germany*." 

Back In 1990, Europe's lead- 
ing statesmen were so anxious 
about renascent Germany’s 
economic strength that they 
agreed in Maastricht that 
European economic and mone- 
tary union should begin as 
early as 1997 or 1999. As 
France's former president, 
Valery Giscard d’Estaing put It 
earlier this year "We need an 
organised Europe to escape 
German domination." 

In spite of tbe domestic 
unpopularity of the plan. Kohl 
agreed to monetary union. He 
wanted to show that united 
Germany would r emain a firm 
supporter of western European 
integration. Now. however, 
scepticism about a common 
currency in the business com- 
munity and among ordinary 
Germans, makes that timetable 
highly questionble. 

Karl Lamers, a Christian 
Democrat Bundestag deputy 
and foreign policy specialist, is 
one of those who suggested a 
controversial plan earlier this 
month that a common cur- 
rency should apply at first to a 
"core group” excluding Italy. 
Even an enthusiast for mone- 
tary union like Lamers says 
that prospects for a single cur- 
rency will recede unless 


Europe’s leaders make prog- 
ress towards the idea of politi- 
cal union and a "federal” 
Europe when they meet to 
review the Maastricht treaty in 
1996. However, polls show that 
a large majority of Germans 
agree with Euro-sceptics in 
Britain and elsewhere that 
they do not want a "United 
States of Europe". 

Holger Schmicding, an econ- 
omist from Kiel university, 
now senior strategist at Merrill 
Lynch’s Frankfurt office, 
believes the original rationale 
for monetary union is now out- 
dated. There is no longer a 
need, he says to "bind" Ger- 
many to western Europe to 
stop it turning eastwards. “Tbe 
idea of Europe being divided 
into east and west is outdated. 
Poland and the Czech Republic 
will soon become normal coun- 
tries." 

Germany might, indeed, sug- 
gest that monetary union 
should be postponed to allow 
as many countries as possible 
- including those from central 
and eastern Europe - eventu- 
ally to join n single currency 
area. Under such an outcome, 
in view of Germany's large and 
growing economic influence 
over the former communist 
countries, the single European 
currency would become little 
more than an enlarged D-Mark. 

Would the outcome of 
“D-Mark Ober alles" confirm 
the worst nightmares of 
Thatcher and Giscard d’Es- 
taing? Or could n strong and 
stable D-Mark, extended to 
other countries under the guid- 
ing hand of the German Bund- 
esbank. prove tbe most solid 
basis for expanding Europe's 
prosperity? German financial 
and economic power will 
unquestionably grow rapidly 
during the next two decades. 
Germany's task, in concert 
with its neighbours, will be to 
ensure that, for the first time 
in history, the power of united 
Germany Is deployed benignly 
rather than for ill - and that 
the nightmares never return. 

■ David Marsh's book Ger- 
many and Europe: The Crisis of 
Unity is published by William 
Heinemarm on September 26. It 
appears in German as Der zau- 
demde Ries& : Deutschland in 
Europa (C Bertelsmann). 


structure, has never had a 
loan. In this financial year it 
will make a surplus of around 
£5,000, and will have to aban- 
don informality. 

The school is appointing an 
enterprise manager who will 
take formal control of Moreton 
Hall Travel and run the other 
little businesses associated 
with a boarding school, such as 
the tuck shop. A holding com- 
pany will be set up. Moreton 
Hall Travel will have to come 
to terms with VAT and tbe 
requirements of Companies 
House. 

That will pose interesting 
questions for the schoolgirl 
directors. How will they pay 
the school for Lloyd's time, 
how will the school pay the 
company for tbe use of its 
premises to study for the lei- 
sure and tourism NVQ? Expan- 
sion carries with it the loss of 
innocence. 

■ Moreton Hall Travel. The 
Gatehouse. Gobowen Station. 
Oswestry. Tel and fax: 
0691-679N3. 


Wife’s gift of money 


My wife and l have been 
resident in the UK for dose to 
six years and have been 
deemed ordinary residents for 
tax purposes- But, as nationals 
of two different European 
countries, we believe wc arc 
still considered as domiciled in 
our countries of origin. 

My father-in-law. also a for- 
eign national, intends to give 
her some money. Is she likely 
to have to pay any tax on it 
(the gitt is foreign currency, to 
be converted into sterling)? 

Does it make any difference, 
in tax terms, if she transfers 
the whole amount straight to 
her UK bank account, or 
deposits it in a foreign account 
(in tiie currency of her choice, 
including sterling) and then 
transfers money to the UK? 

■ ir vonr rather-in-law makes 
the gift in sterling, the answer 
to your first question Is no. 
The answer to the second ques- 
tion is no, except that the 
interest ou the deposit account 
would be assessable on the 
remittance basis if the account 
were outside the UK. 

If the gilt is made in foreign 
currency, there could be a capi- 
tal gains tax liability if there is 
anv favourable movement in 
the exchange rote between the 
day of the gift and the conver- 
sion into sterling. 

If Hie foreign currency were 
deposited in a bank outside the 
UK. Hie exchange-rate gains 
would be assessable on the 
remittance basis, but any 
exchange-rate losses would be 
disallowed. The gains would be 
eligible for indexation relief. 



No logoi msp a m bUy can t* accepted ty trig 
hnmta rimes Mr ms siimw pv on to mass 
cotnrs. fd hqiwws w* he teteumd Or post at 
soon as pcvatet 


regardless of where the cur- 
rency was deposited. 

As you are both domiciled 
overseas, you ought to have 
been making tax returns on 
the special form (UK) designed 
for people with overseas domi- 
cile. If you have not, remind 
your tax office to send you this 
form in future. 

No allowance 
for inflation 

Is any allowance made for 
inflation in the differential 
between the immediate inter- 
est rate and the redemption 
note in government stock? I 
ask because I have a quantity 
of Treasury stock I3J per cent 
2004-08- 1 bought it to yield an 
imminediate 10.5 per cent and 
a redemption yield of 8.7 per 
cent. 

If I bold it nntil maturity, I 
am being paid 10.5 per cent in 
1994 money. If no allowance is 
made for inflation, then my 
capital loss in 2008 will bring 
my overall yield to 8.7 per rent 


and will be in 2008 money 
which, even at today’s low 
inflation rates, will be worth 
some 35 to 40 per cent less. 

■ No allowance is made for 
inflation in the differential 
between the immediate inter- 
est rate and the redemption 
rate in government stock. But. 
as you will know, dealings in 
government stock are free of 
capital gains tax. 

(Answer by Murray Johnstone 
Personal Asset Management). 

A transfer 
too late 

1 bought 2,000 shares in an 
investment trust and received 
400 free warrants. I had 
intended to place 1,500 shares 
in my general Pep within the 
prescribed 42 days, and I 
understood that 300 warrants 
could also be put in. But my 
broker told me this was not 
posable because trading in the 
warrants bad began already. 

■ If shares resulting from an 
investment trust launch are 
offered as a "unit" with war- 
rants attached, then both the 
shares and the warrants may 
be transferred into a general 
Pep until the day before the 
warrants are traded separately. 

On or after that day, and up 
to and including the 42nd day 
since the date of allotment of 
the unit, only the shares may 
be transferred. Warrants may 
not be bought directly from the 
“market" for a general or sin- 
gle company Pep. (Murray 
Johnstone). 


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FINANCIAL. TIMES WEEKEND SEPTEMBER 2- 


TRAVEL: ON SAFARI 


^SEPTEMBER 23 1994 


Come on safari with me, says Michael J. Woods, who likes to go in search of the simple bear necessities 


* 


The black bear waddled across the 
Forest road. He was a rotund bear, 
ready for his winter sleep. Under 
his thick, dark coat, rolls of fat 
shimmied as be walked. 

He moved unhurriedly through 
the trees for he was a smog, snug 
bear. Before long he would be drop- 
ping off in his den. leaving the 
woods, still aflame with their fad- 
ing red and golden foliage, and 
waking to bursting bads and bird 
song. 

He was my very first bear after a 
quest which 1 had pursued for 
years. And he bad turned up in a 


totally unexpected location, just 
three miles from a large slumping 
complex in New Hampshire. 

My search for bears had taken 
me to Yellowstone and Yosemite 
national parks in the US, to the 
Canadian Arctic, to Spitsbergen 
and to Italy's Abbruzzo national 
park, hi some of these places bears 
were rare, in others they merely 
avoided me, but I was never disap- 
pointed: other wildlife more than 
made up for their absence. 

A British Airways Holidays fly- 
drive trip took me to both Yellows- 
tone and to Yosemite. to Yellows- 


tone I had excellent views of large 
buffalo herds, of elk, white-tailed 
deer, moose, coyote and a whole 
regiment of squirrels and chip- 
munks, as well as a magnificent 
range of thermal effects, including 
Old Fatthfbl. 

Yosemite was equally exciting. 
Although the wildlife was not as 
prevalent, it was very tolerant of 
people. 

Furthermore, Yosemite has beau- 
tiful landscapes, a wonderful vari- 
ety of massive granite domes and 
more record-breaking waterfalls is 

a small area than anywhere in the 


world. 

I came dose to seeing polar bears 
in the Arctic when, travelling over 
tiie sea ice around Baffin Island 
with several Eskimo, we came 
across the bloody remains of a seal 
and great flat-footed tracks pad- 
ding away through the snow. 
Again, the area had much to offer, 
from nesting guillemots and rest- 
less old squaw docks to gyr falcons 
and even, lying Dublin king among 
the U chens of the newly-exposed 
spring tundra, a human skull. 

Spitsbergen, or Svarlbad, Is a 
Norwegian archipelago which lies 


well within the Arctic circle to the 
north of Norway. In the winter it Is 
ice-locked, so I went there In the 
summer with NSR Travel to join a 
ship called Polar Star and cruise 
around the islands. We watched 
reindeer among the ruins of old 
polar explorers’ camps, admired 
walruses on ice floes and enjoyed 
dolphins playing under our bows. 

ItaUatour took me to Abbruzzo 
national park where a tew Euro- 
pean brown bears still survive just 
100 miles from Rome. Although I 
searched for almost a week, they 
eluded me. But walking in the 


mountains I had my best-ever 
views of chamois and enjoyed the 
of spring flowers of this 
surprisingly empty area. 

Koalas, of course, are not stnctly 
hears, so perhaps that Is why I 
found them easy to see, especially 
on Kangaroo Island, off southern 
Australia, a paradise for those keen 
on wildlife. This is the third big- 
gest Australian island, and has a 
large breeding colony of sea lions; 
visitors to their beach can get 
wi thin yards of mothers with pups, 

m mil nc hullo. 


sea eagles and ospreys, while a 
range of waterbirds lives in the bil- 
labongs. Craig Wickham, who nra 
safaris on the island, also takes cli- 
ents looking for echidnas and pos- 
sums at night. 

New Zealand has no bears. 
Indeed, it had only two mammals 
of its own. Then man introduced 
some more which promptly set 
about destroying the native lizards 
and ground-nesting birds- The 
Department of Conservation, anx- 
ious to save the country's native 


Continued on opposite page 



Late for a date: a whim-backed vulture John friends for listch isduai x wood. 


African walkabout 

experience, offered by Ker and Dow- 
ney, enables visitors to experience 
the joys of travelling through the 
Delta aboard t he mammalian equiv- 


T he deep nimb le made 
by one elephant tanring 
to annther is a sound 
which.- once beard, is 
impossible to forget. 1 
had come across it before, sitting cm 
a Ugh hank above the River Ruaha 
in Tanzania and looking down on 
an extended family group of ele- 
phants at sunset 
lit by the fiery orange of the last 
tight of the day, they drank and 
browsed, played and greeted one 
another, totally relaxed and at 
peace. I had even had the privilege 
of feeling it during an elephant 
back safari in the Okavango Delta, 
for that rumble sends the whole 
body of the elephant quaking. 

Bat the biggest surprise came 
during a walk in Zambia when the 
gama mm hie reached me unexpect- 
edly from just the other side of a 
dense thicket We left the termite 
mound we were inspecting and 
withdrew quietly and quickly, keep- 
ing the elephants upwind and leav- 
ing them to their own devices. 

African safari companies are 
becoming increasingly bold and 
imaginative in the methods by 
which they encourage their clients 
to come close to wildlife and to 
appreciate their surroundings, 
rather than simply to concentrate 
on seeing and photographing the 
large or dangerous mammals . The 
rise of open vehicles with a thin 
canopy and neither sides nor doors 
in southern Africa is a world away 
from the enclosed mini -buses 
employed in east Africa but an even 
more significant step forward, liter- 
ally, is a walking safari. 

At first, forsaking a vehicle in the 
bush feels about as crazy as aban- 
doning a life raft in the open sea. 
But there is no doubt that walking 
is one of the most exciting ways of 


enjoying tha bush. 

You may not come away with the 
greatest photographs of larger ani- 
mals, because they tend to be more 
wary of people on foot, but your 
appreciation of the smells, the space 
and simply the feel of the place will 
remain in the memory. 

Ta mhi a Hao long been co nsider ed 
Africa's walking mecca, for this 
activity has been a major feature of 
safaris here for many years (try 
Twickers World). But the walking 
opportunities in other countries are 
growing rapidly as governments 
alter park rules to permit them and 


alent of an all-terrain bu s. 

There are new opportunities to 
watch go rillas in Uganda which has 
seen a regeneration, of its tourist 
industry. Not only does it have 
gorillas, together with a range of 
other primates, but some of the 
most picturesque national parks in 
Africa and good walking in the 
Ruwenzori Mountains. Try Aber- 
crombie and Kent, Twickers World 
and African Explorations. 


in greater measure than probably 
any other African country, is the 
nhnnrg of independent travel. With 
its excellent infra-structure, accom- 
modation and services and with its 
amazingly rich variety of land- 
scapes and wildlife, it is well worth 
investigating.Namibia. just over the 
border, is also an exciting destina- 
tion for the independent traveller. 
Try Sunvfl for a fly-drive and assis- 
tance with an itinerary. 

For the more rugged. Safari Drive 
will provide a fully equipped Land 
Rover, complete with all camping 
equipment including a tent pitched 
on the roofrack, to enable you to 
travel through Botswana and Zim- 
babwe on roads suitable only for 
four-wheel drive vehicles. 

If independent travel is not for 
you. but you are looking for some- 
thing special, there is a growing list 
of safari operators, such as Aber- 
crombie & Kent and Safhri Consul- 
tants, who have wildlife tours led 
by specialists from Britain and 
Africa. 

Other safaris include those con- 
centrating on photography or orni- 
thology (try Hartley's Safaris) while 
Art of Travel provides the chance to 
te ke a p ainting and drawing and 
even a wildlife writing safari. 

■ Information: 

Abercrombie & Kent 071-730 9600. 
African Explorations 0993-822443. 
Art of Travel 071-738 2038. 
Cazenove & Loyd 071-376 3746. 
Hartley's Safaris 071-584 5005. 

Ker & Downey 071-629 2044. 
Rattray Reserves 071-584 0004. 
Safari Consultants 0787-228494. 
Safari Drive 071-622 3891. 

Stmvil 081-568 4499. 

Twickers World 081-892 8164. 
Wildlife Safari 0737-223903. 
Worldwide Journeys and Expedi- 
tions 071-381 8638. 


Travelling on foot is just one of many ways 
of seeing the bush , says Michael J . Woods 


as safar i guides g ea r themselves up 
to this new discipline. 

Richar d Bonham (booked through 
Worldwide Journeys and Expedi- 
tions) guides walks in the Selous 
Game Reserve in southern Tanzania 
and it is possible that this opportu- 
nity will be extended to other parks 
in that country especially now that 
a regular air charter has been estab- 
lished - contact Wildlife Safari. 
Good walking is also available in 
Botswana, Zimbabwe and South 
Africa. Safari Consultants and Caze- 
nove & Loyd Safaris are among oth- 
ers who offer this opportunity. 

Alternatives to walking, which 
avoidmotors, are also growing in 
popularity. Horse-riding safaris, 
mainly for those who ride regularly, 
are available in Botswana, Kenya 
and South Africa. (Cazenove & Loyd 
Safaris). You do not have to be a 
regular elephant rider to enjoy an 
elephant bads safari in Botswana's 
Okavango Delta, though, and this 


And then there are the opportuni- 
ties available in the new South 
Africa. By the increasingly exacting 
standards of Western Europe, some 
safaris on offer here are quite dated. 
If you are looking for a single night 
in an air-conditioned safari camp, 
with game drives evening and 
morning during which you might 
experience, as I did. radio-linked 
drivers relentlessly pursuing the 
Big Five in order to provide you 
with a certificate and a free T-shirt, 
then Mala Mala is for you (Rattray 
Reserves). 

If, on the other hand, you are 
looking for rather more from your 
African experience - starlit nights 
in the bush, peaceful and unobtru- 
sive game drives - and a good guide 
then you are probably looking for a 
tailor-made itinerary offered by 
many of the smaller operators such 
as African Explorations, Art of 
Travel and Safari Consultants. 

But what South Africa does offer. 




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financial TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


WEEKEND FT XI 


TRAVEL: ON SAFARI 


°f tifer from Yellowstone and 


Continued from previous page 


wildlife, has removed introduced 
mammals from the island of Tirifr 
ri-Matangi in Hanraki Golf mari- 
time park. 

Visitors can see projects for reaf- 
forestation and for the rein trod no- 
tion of native birds such as kiwis 
and takahes. as well as a number of 
other endangered species. Similar 
proposals are in hand for other 
islands in this Park. 

There are no bears in Antarctica, 
either, but if yon want to see wild- 


life at close quarters In a wilder- 
ness of beauty on an unimaginable 
scale, then the Antarctic is hard to 
beat A cruise ship like the World 
Discoverer will drop yon among 
bustling penguins in noisy, chaotic 
colonies hundreds of thonsands 
strong. 

You can drift in dinghies past 
lounging crab-eater seals, menac- 
ing leopard seals and ill-tempered 
elephant seals, and watch whales 
under your very nose. 

A notable bird of the Southern 
Ocean is the wandering albatross, 
one of the world’s largest birds. 


Yosemite national parks in the US, to the Arctic, Italy and all of Africa 


with a wing-span of almost 12ft. 
Among the smallest are bumming 
birds. Many are found in the Carib- 
bean and 18 species can be seen at 
Trinidad's Asa Wright nature cen- 
tre. 

Although generally considered 
elusive, Britain's mammals, which 
no longer include bears, can be sur- 
prisingly easy to see. During the 
autumn rut toe three largest deer 
species - fallow, s£ka and red - are 
at their most striking. As they are 
preoccupied with securing mates, 
they are both dramatic to watch 
and often unguarded. 


The Scottish highlands, Exmoor, 
the New Forest or any one of the 
deer parks throughout Britain 
should be fruitful places to visit 
For more information mammals, 
a useful booklet, Where To Watch 
Mammals, is published by the 
Mammal Society. There are numer- 
ous wildlife holidays available in 
Britain, and some of the best are 
ran by universities such as Exeter, 
Nottingham and Bristol, and by the 
Field Studies Council. 

None, however, includes bears. It 
will be a long time before I experi- 
ence another wildlife sighting as 


exciting as my black bear in New 
Hampshire, US. 

■ Information: Discover New 
England, Park Farm, Folkestone, 
Kent CT19 6DZ (0303-226608). 
British Airways Holidays 
(0533463311). 

Eclipse Sound OntFitting, Pond 
Inlet, NWT, nanniia (819-899 8790). 
NSR Travel, 21-24 Cockspur Street 
London SW1Y 5DA (071-321 2048). 
Italiatour, 204 Holland Park Ave- 
nue, London Wll 4XB (071-371 
1114). 

Craig Wickham, Wanderer’s Rest 
American River, Kangaroo island. 


South Australia (0848-33140). 

New Zealand Tourism Board, New 
Zealand House, Haymarket London 
SW1Y 4TQ (071-173 0360). 

World Discoverer, Clipper. Snite 
301, Albany House, 324-326 Regent 
Street, London WIR 5AA, (071-438 
2931). 

Trinidad. Tobago and Guyana tour, 
World of Wildlife. Abercrombie and 
Kent. Sloane Square House. Hol- 
bein Place. London SW1W 8NS 
(071-730 9600). 

Where to Watch Mammals. The 
Mammal Society, 15 Cloisters Busi- 
ness Centre. 8 Battersea Park Road, 


London SW8 4BG (07149S 435S). 
Department of Continuing and 
Adult Education. University of 
Exeter, Cotie y Streatham Rise. 
Exeter EX4 4PE (0392411902.) 
Learn at Leisure, University of Not- 
tingham, 14 Shakespeare Street, 
Nottingham NGl 4FJ (0602-516526). 
Department for Continuing Educa- 
tion, University of Bristol. 8-10 
Berkeley Square, Clifton Bristol. 

BS8 1HH (0272-287172). 

The Field Studies Council. Preston 
Montford. Montford Bridge, 
Shrewsbury, Shropshire SY4 IHW 
(0743-850674). 



Fishing in drotee: Peruvian Indians cast nets into the Amazon. Rsh are so numerous every east brings a catch Mk*«i j Mm* 

Afloat in the deep jungle 


I was alone, paddling a small 
dug-out canoe through Hooded 
rainforest. The boat was bor- 
rowed, the paddle my own. traded 
with toe Jagua Indians for valued 
T-shirts, and the forest was immense, 
writes Michael J. Woods. 

The low afternoon sun penetrated the 
riverine trees, illuminating trunks whit- 
— ened by lichens and the greens of thin 
palm fronds and huge leaved epiphytes. 
These, in turn, were reflected in the 
_ Amazon's motionless waters which, in 
spite of a patina of dust, leaves and 
twigs, formed a perfect reverse image. 
A ringed kingfisher flew across the 
- water, a large bird with chestnut belly, 
white collar and determined manner, 
while a crimson crested woodpecker, in 
black with a red cap, pecked delicately 
- at a dead stump. 

The Amazon near Iquitos in Peru, 
still 1.200 miles from the sea and nor- 
mally five miles across, was flooded to 
almost twice its width. Banana fields 
were submerged, the houses, all on 
stilts, stood just above the flood, and 
water lapped deep into the forest. 

From Iquitos. a small town of crumb- 
ling facades, rusty corrugated iron and 
an atmosphere redolent of Greene and 
Conrad, we motored downstream to the 
Kxptorama Camp in a long narrow boat 
thatched against sun and rain. 

This was the first of three camps I 
visited, all designed in fundamentally 
the same simple and unobtrusive way 
with bedroom blocks linked by covered 
walkways to showers, toilets and com- 
munal areas festooned with hammocks. 


There is no electricity, little plumbing 
and tiie limited privacy in toe bed- 
rooms, which are designed to encourage 
a flow of air. The locations are perfect, 
the food good and the beds comfortable 
and well-netted to prevent mosquitoes 
“Binging a private song In your ear", as 
Julio Parano, our Peruvian Indian 
guide so aptly put it 

Visiting at a time of high water had 
its advantages, for though the jungle 
walks were curtailed, we made up for 
Chat with river cruises in open boat 
The rivers, twisting, caramel-coloured 
and soupy with silt, are the highways of 
the rainforest There is constant traffic 
ranging from overloaded banana boats 
labouring upstream to the quick canoes 
of children which, on school days, line 
the shore by the schools. 

Parano, now a conservationist and 
guide, was raised as a hunter in the 
jungle and has senses appropriately 
honed. From the water his keen eyes 
spotted greenish coloured three-toed 
sloths clinging motionless to bankside 
foliage; he pointed out a bushy-tailed 
squirrel which scampered high into the 
tree tops; and once, identifying a pygmy 
marmoset by its squall, scoured the 
vegetation with his binoculars until he 
located its tiny form. Swallow-tailed 
kites wheeled above the trees, egrets 
hunted the shallows and parrots 
screeched past on whirring wings. 

One afternoon Julio took us In search 
of the hoatrin (pronounced watson), a 
noisy chicken-sized bird of some scar- 
city living on a lake in the centre of a 
forested island. High water had joined 


the pool to the river but. our tong boat 
was too big to penetrate toe trees. 

Unperturbed, Julio intercepted a local 
lad who was paddling past and hired 
him to cany us in pairs in his canoe, 
weaving deftly through the trunks, to 
spot several hoatzins as they squawked 
to one another in the twilight 

Life with Julio was never dull Unan- 
nounced. we would pull into villages to 
see what was going on. We were invited 
into houses to watch the cooking of 
manioc and the salting of fish; we 
weaved thatch, paddled canoes and 
joined local men in netting fish. 

Holding the heavy folds of the net in 
hands and teeth with a loop over one 
elbow, we whirled it outwards to open 
like a parachute, theoretically hitting 
the water in a circle and sliding 
through the surface to trap fish in its 
mesh belL Although in practice the cir- 
cle was often far from perfect, the fish 
were so numerous that every cast was a 
success. 

Everything in the rainforest seems to 
have grown to excessive size. Lily pads 
were like tea trays, insects as big as 
mice, butterflies the size of bats and 
hats as large as crows. 

But for a habitat as rich and varied as 
this, there is surprisingly little to see at 
ground level for most of life goes on in 
the tree- tops. Fortunately, the Amazon 
Centre for Environmental Education 
and Research offers an opportunity, 
unique in South America, to wander 
around the canopy more than 100ft 
above the ground on a series of swoop- 
ing suspension bridges. 


As I looked down, the jungle hummed 
and whined like a very bad inter na, 
tional telephone line, interrupted peri- 
odically by pings and buzzes, yelps and 
yaps, while at my feet stretched a bil- 
lowing carpet of leaves in every imagin- 
able shade of green, from the palest 
celery to the blackest spring cabbage. 

Brightly-coloured birds stood out 
from its surface - azure-spangled cotin- 
gas. golden woodpeckers, green honey- 
creepers and red-throated caracaras. I 
watched a centipede make its sinuous 
way over the crevasses of bark and 
wondered idly if this was a species pre- 
viously known to man. 

After the still dark, humid oppres- 
sion of the forest floor, the canopy 
walkway supplied a breath of fresh air. 
But the best moments were on the river 
as day broke. 

The soft light of dawn cast everything 
in a greeny-grey shade, a veil of mist 
shrouded the tree-tops and their perfect 
reflections wrinkled in our wake. 
Fishermen cast their nets with gentle 
splashes and blue-grey woodsmoke rose 
from rekindled fires. Apart from the 
quiet calls of children in their red cedar 
canoes, the only other sound was the 
dripping of water from up-raised pad- 
dles as we glided slowly through the 
Amazon jungle. 

■ Michael Woods flew to Miami with 
British Airways and then travelled to 
Peru and the jungle camps of Explor- 
ama. Explomapo and ACEER cjo Wild- 
life Discovery: The Old Bakery, South 
Road, Reigate. Surrey RH2 7LB (teL 
0737-223903). 


Along the trail 
of the trappers 


T he minke whale was 
heading west. Marine 
Atlantic’s ship North- 
ern Ranger was going 
east. We passed each other 
near Black Island at the mouth 
of the Churchill River on the 
coast of Labrador, each going 
about our business with sin- 
gle-minded concentration. The 
whale was pushing purpose- 
fully through the water and 
rising to breathe with a mini , 
mum of effort. 1 saw it only 
twice and then it was gone. 

The Northern Ranger had 
just called at Rigolet to dis- 
charge cargo and take on pas- 
sengers. Now, just after 6am, 
the sea ahead was like silk - 
grey, glinting, smooth. The 
ship tore it apart and left it in 
shreds and tatters astern. 

Labradoreans rely on. water 
- lakes, rivers or sea. liquid or 
frozen - to get about Labrador 
has plenty of wilderness and 
few roads, fewer of them are 
surfaced. The trans-Labrador 
highway slashes across the 
widest part a bumpy 350 miles 
from Labrador City to Goose 
Bay, and that is about it To 
reach any of the coastal settle- 
ments yon must take toe 
coastal steamer in summer or 
drive a snow -mobile over the 
ice in winter. Or you can fly. 

Heavy toads come by boat 
The forward hold of the North- 
ern Ranger contained snow-mo- 
biles, all-terrain vehicles, bun- 
dles of timber, great bags of 
sand and gravel a three-piece 
suite, a kitchen and various 
domestic items. We passengers 
travelled behind. My roomy 
cabin had the widest bunk I 
have ever slept in. 

A favourite way to see the 
coast is to take a two-week 
return trip from the base at 
Lewisporte. Recognising this 
leisure use of their boats. 
Marine Atlantic, asked Labra- 
dor Scenic to provide a guide 
and a full itinerary for their 
holidaying guests. I joined at 
Goose Bay, a settlement 
founded around an airbase. 

From here we were taken in 
small boats across the Chur- 
chill to Mud Lake, the unallur- 
ing name of an attractive little 
village beside the lake. Narrow 
paths through tall grasses and 
groves of pink wiltowherb led 
from one colourful clapboard 
house to another. Huskies, in 
summer retirement, barked 
from their moorings in the sur- 
rounding woods and chortling 
children played by the river. 

We rejoined the Northern 
Ranger just before dark and at 
10pm- She coiled her ropes 


aboard and we steamed away 
towards the north. As we went, 
the scenery changed. Trees 
became more infrequent and 
bare bed-rock, ground down 
flTiri smoothed by millennia of 
ice, increased. Icebergs hov- 
ered on the horizon. 

We received word that three 
polar bears had been seen on 
the previous day on Quaker's 
Hat, an island noted for its 
thousands of breeding sea 
birds. Crowds hung over the 
rails as the ship drew near but 
the bears had gone. The ship 
hooted loud and long as we 
passed and the sky filled with 
anxious sea birds. 

At each settlement the ship 
became lighter as the hold 
emptied. This gave time for the 
passengers to look around 
although, although for some, it 
was never quite enough. Twice 
the ship had to return and pick 
up a lonely figure waving for- 
lornly from the pier. 

Nain is the most northerly 


Michael /. Woods 
sails and canoes 
up the rivers and 
coast of Labrador 


settlement on the coast and the 
turning point for the ship. 
After a tour of the town’s 
sandy streets to see its sports 
hall, television station, fish 
plant and Moravian church, I 
walked up the hill behind. A 
short steep climb gave me a 
view north over wave after 
wave of inlets and islands 
much like those we had 
already passed. 

The thousands of miles of 
apparently empty countryside 
are home to bears and wolves 
and the largest caribou herd in 
the world. These animals, 
together with smaller fry such 
as foxes and martens, were the 
quarry of trappers and hunters 
who would spend ail winter 
amassing meat and skins. 
After more than six months 
away from home in the tough- 
est conditions - the tempera- 
ture often hit 40 below - they 
would load their Canadian 
canoes to the gunwales and 
paddle home with the spring 
thaw to wives wondering anx- 
iously if they had survived. 

Joe Goudie comes from such 
a family, his father and his 
uncle were trappers and Joe 
still has hunting in his blood 
along with a dash of Welsh, 
Scottish and Cree Indian. One 


time MP and now Native Liai- 
son Officer for Canada's 
National Defence. Joe also 
leads canoe safaris down the 
Churchill River. 

After a night in a log cabin 
set in open spruce woods, we 
put the boat in the water, 
loaded it with tent, wood-burn- 
ing stove, rood, axe and saw 
and paddled away. The river 
was flowing quite swiftly espe- 
cially in the early part of the 
journey where the water was 
most exciting although never 
dangerous. After that it was 
easy paddling and we passed 
gently through the wilderness. 

We kept our eyes open for 
moose and bear, drifted up to 
great northern divers and Can- 
ada geese and watched ospreys 
patrol overhead. The river wid- 
ened into lakes and then closed 
around us a gain dark walls of 
spruce and fir lightened by the 
brighter green of willow, alder 
and white trunked poplar by 
the waterside. 

On one high bank the trees 
were tipped at crazy angles, 
their bark torn from their 
trunks. This was the work of 
ice, said Joe, carried down on a 
river vastly swollen by the 
thaw and shredding any obsta- 
cle in its path. 

Distant spruce trees marked 
the site of our camp, their dark 
knobbly tops looking like the 
spires of a medieval cathedral 
We pulled out on to a sandy 
beach from where we watched 
the sunset as we ate salmon 
and trapper's bread. Only tbe 
black flies, which plagued us 
briefly as an evening calm 
descended, marred an other- 
wise perfect spot 

A side trip up a stream to 
visit a beaver lodge left only a 
couple of hours paddling before 
the end of our voyage just 
above Muskrat Falls. Here the 
twisting, coiling water of the 
river was transformed into a 
roaring fury of foam. Joe 
picked up the 701b canoe, 
swung it easily on to his shoul- 
ders, and carried it up the 
steep path which marked the 
portage route the trappers used 
to avoid tbe falls. To them it 
was just a brief interruption in 
their long journey along this 
river road. 

■ Canadian Tourist Office 
Information : 071-539 2299. 

■ Marine Atlantic, Reservation 
Bureau . PO Box 520. Port aux 
Basques, Newfoundland, Can- 
ada AOM ICO (709-695 1209). 

■ Labrador Scenic Ltd. PO 
Box 233, Northwest River. Lab- 
rador, Canada AOP IMO 
(7094978326). 


Where waves crash and otters frolic 


F ar below me among 
the grey, wave-worn 
rocks of the inhospi- 
table shore were the 
tiny white forms of young 
seals. They appeared lifeless: 
their puny bodies must surely 
hove been shattered by the 
tumultuous ocean as it beat 
upon the island and flung 
them among the hard stones. 

However, through binoculars 
I could see an occasional move- 
ment. 1 also spotted several of 
the rocks shifting, too. for 
some of the “rocks'* were adult 
grey seals. They had come to 
give birth on this nursery 
beach and now some of the 
mothers were suckling pups. 

Giving birth in the grey seal 
world is closely followed by 
ranting, for it is the one time in 
the year that bulls can find 


groups of cows gathered 
together. From my cliff-top 
vantage point 1 had an excel- 
lent view of the action as 
males skirmished with males, 
h ulls pursued cows and moth- 
ers protected pups. 

These dramas were unfold- 
ing in the Shetland Isles, the 
archipelago of about 100 
islands which makes up the 
most northerly point of 
Britain. As close to Bergen in 
Norway as to Aberdeen. The 
Shetlands are Inhabited by a 
people whose musical tongue 
seems to owe as much to Nor- 
wegian as it does to English 
and who are the first to 


acknowledge their strong links 
with Scandinavia. Including 
Mainlan d, there are five nota- 
ble islands in this wind-swept 
but mild northern outposl and 
each appears to have a wildlife 
speciality of its own. 

The northernmost island is 
Unst. The Burra Firth forms a 
deep cleft in its north coast 
and on one side of this fiord is 
Hermaness national nature 
reserve, the spring-time breed- 
ing site lor thousands of sea 
birds. Of these, the most sensa- 
tional are the gannets: goose- 
sized birds which fish by 
plunging into the ocean from a 
considerable height. 


I watched them hunting for 
over an hour as bird after bird 
folded its wings back against 
its body and plummeted like 
an arrow deep into the water. 
Both great and arctic skuas 
nest here. too. Unmerciful 
pirates, they will harry the 
other birds until they disgorge 
the fish they have caught 

Fetlar is the smallest of the 
main islands. With fewer than 
100 people, it struggles con- 
stantly to maintain its human 
population, though matters are 
reversed in the summer when 
bird-watchers arrive because of 
two rare visitors. 

Beautiful snowy owls nested 


here for a number of years 
until 1975. The females of these 
white, amber-eyed birds still 
return each summer, though 
sadly not to breed. Seventy per 
cent of the British population 
of red-necked phalaropes. a 
small swimming wader, breed 
on Fetlar. The Royal Society 
for the Protection of Birds has 
a large reserve and a public 
viewing hide. 

Yell with its high heather 
moorland and convoluted 
shoreline, is reputedly the 
otter island of Shetland, 
although 1 caught sight of 
otters on all the islands apart 
from Fair Isle. Shetland is 


home to around 1,000 otters - 
one of the densest populations 
in western Europe. 

Otters turn up in the shel- 
tered voes or fiords around 
Yell's coast. I watched one ani- 
mal playing exuberantly in the 
wake of my ferry. Those who 
are patient should have good 
views of these lovely mammals 
as they swim and dive or feed 
along the shore. 

Mainland is the largest of the 
islands. Its southern-most 
point hit the headlines in Janu- 
ary 1993 when the oil tanker 
MV Braer went aground releas- 
ing 84,000 tonnes of crude into 
the sea. The effect on Shetland 


and its wildlife appears to have 
been slight, and there are still 
big sea-bird colonies on the 
cliffs of Sumburgh Head. 

Much of Shetland’s coastline 
consists of dramatic cliffs, 
some of the finest are on the 
west coast at Westerwick. 
These are good spots to watch 
for cetaceans. Killer and pilot 
whales have been seen from 
here and several species of dol- 
phin occur around Shetland. It 
is said that the Good Shepherd, 
Fair Isle's boat, encounters dol- 
phins on almost half its sum- 
mer voyages. 

Spring and early summer are 
the best times to catch the 


large colonies of nesting sea 
birds but autumn can be good 
for other reasons. It is the time 
when migrants, flying south 
from the Arctic Circle, pass 
through- October is when grey 
seals pup and mate and there 
is much seal activity in many 
hidden coves and caves. 

■ Shetland Islands Tourism. 
Information Centre. Lenoick, 
Shetland ZE1 0LU (0595-3131). 

■ Busta House Hotel. Busta, 
Brae. Shetland ( 0S0622 506 ). 
( Contact Busta House for inclu- 
sive packages). 

■ DA Study Tours. Williamton 
House, Ctilross, Fyfe 
(03S3-8S2200). 

m M Phillips. Nature Guide 
Caledonia. Shires Hill. Dunfer- 
meline, Fyfe (03S3-S80381). 

MJ.W 


mong the Lesser 
Antilles in the 
Caribbean, Nevis is 
, one of the smaller 
t is sister island to St 
i-is is very much the 
ter, a village or an 
000 people clustered 
a dormant volcano 
sea lapping at their 
js Michael J. Woods. 

5 in the group known 
eward Islands, which 
mean little for the 
ws constantly, espe- 
in the hills, and keeps 

Idity nl comfortable 
e perfect climate for 
■. 1 thought, for I am a 
soul and cannot be 
h endless days on the 

ray of its neighbours, 
s a history or sugar 
ns dating from the 
urv. The remains of 


Under the idyllic volcano 


some of the sugar estates are 
still found. I visited sev- 
eral in the company of a local 
guide. David Rollirtson. Each 
had a windmill built like a 
nuclear silo to withstand the 
battering of hurricanes and the 
agitation of earthquakes - the 
price to be paid for living on an 
otherwise perfect island 

Tim Johnson, another guide, 
led me to a sugar mill ruin he 
bad only recently discovered, 
buried in a secondary growth 
of jungle, ’hie remains of the 
private chapel were almost 
filled with living pillars of 
weeping fig stems. 

The weeping fig is a fast- 
growing and prolific tree, and 
there is a great spreading 


example at the entrance to 
Montpelier Plantation Inn 
which was my home for the 
week. It casts dense shade over 
the front of the main building, 
once part of a sugar factory. 
The great house no longer 
exists but is notable for being 
the place where Nelson mar- 
ried Frances Nisbet in 1787. 

The Montpelier is perfectly 
located on a saddle on toe 
lower slopes of Nevis' volcano. 
It has such a relaxing atmo- 
sphere that I could feel my res- 
olution to be active seeping 
away as each day passed. 

Like many similar islands, 
Nevis has suffered from the 
damage caused by imported 
mammals. Goats, sheep, pigs 


anil donkeys do little for the 
indigenous flora while mon- 
gooses. and the rats they were 
brought in to control have 
e liminated the native agoutis, 
ig uanas and edible frogs. 

While tbe bird life is limited, 
there were enough fish to sat- 
isfy anyone. To see them, 
Johan Rigby took me in his 
boat across the two-mile strait 
to St Kitts. 

Fish, mainl y small and in 
electric blues and yellows, 
played and fed among the coral 
and sea Dans, Occasionally I 
would glimpse something more 
subtle, a flat fish rippling 
beneath the sand, for instance. 
Sometimes it was more sinis- 
ter: when five larger, almost 


circular fish, in silver edged 
with blue, swam through in 
line astern, every inhabitant of 
this underwater world fled. 

St Kitts was also the location 
of my most active exploit of 
the week, climbing Mount Lia- 
muiga. This is St Kitts’ vol- 
cano, 3,700ft high and topped 
with cloud forest The route we 
followed was carved out of the 
mountain-side through the rain 
forest by slaves in 1890. Greg 
Pereira drove us in his Lan- 
drover through steep cane 
fields to the edge of the forest 
where we stopped for a picnic 
breakfast. We were already 
promisingly high. From here 
he pointed to our destination 
on the crater rim, 1,000ft below 



the summit proper. 

The forest was cool and 
delightful full of tree ferns and 
palms. Some tall trees had but- 
tress roots and others had been 
overtaken by strangler figs, 
while the ground was green 
with soft club moss. The path 
steepened until at timps, we 


were climbing ladders of roots. 
But the views both over the 
island and down into the for- 
ested crater, with its occa- 
sional sulphur-fringed fumer- 
oles, were worth the climb. 

On my last day I went to find 
Nevis’ water source, up a track 
spiralling around the moun- 


tain. But, after an hour or so, 
the attraction began to fade 
and 1 found visions of a cool 
dip and a leisurely lunch by 
the pool at the Montpelier 
floating into my mind. 

The sun seemed to get hotter 
and the hills became increas- 
ingly steep. I never did reach 
that spring. 

■ Michael Woods was a guest 
of Montpelier Plantation Inn, 
PO Box 474. Nevis, West Indies. 
1 let 809-4693462). His visit was 
arranged by Caribbean Connec- 
tion (UK tel: 0244-341131), whose 
prices for seven nights at Mont- 
pelier start at £916 per person, 
including flights and breakfast 

David Rollirtson runs Eco- 
tours Nevis IS094692091): Jim 
Johnson can be contacted on 
809-4695571' and Julian Rigby 
on S094699690. Greg Pereira 
organises walking tours on St 
Kitts, (8094654121). 





XII WEEKEND FT 


FINANCIAL TIMES WEEKEND 


SEPTEMBER 24/SEPTEMBER 25 1994 


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setview. vat and UNLIMITED FREE GOLF 

OVER 10 MILES OF SALMON 
& SEA TROUT FISHING 
Indoor & outdoor heated pools, outdoor & INDOOR tennis. 
Squash, croquet, billiards, sauna, steam room, sunbed, spa bath, 
indoor pulling, nine-hole par thirty-one golf course (resident 
professional). Executive conferences max 20. 

Children over 8. 

RIVERSIDE LODGE 4 ensuite bedrooms 
self catering (services available). 

85 acre ancient woodland. 


Telephone 0769 540561 


23 


ROYAL 
WINDSOR HOTEL 

"A Leading Hotel in a Leading Location " 

275 fully Ajr-eondiiioncd Guest Rooms and Suites. 
Gourmet Restaurant and Bars. 

Fitness Cluh, Night Club, and Underground Parking. 


Rue Daqaesnqy 5 - 1000 Brussels 
Tel: 02/505.55.55 Fax: 02/505.55.00 


Member of "The leading Hards of the World " 



Amber-ley Castle b the only 
hotel in the wadd inside a 
900 year old mediaeval castle. 

Come and take dinner with us, 
Sunday through to Thursday, 
during November. We wiQ then 
offer you a double room for two 
people for only WO per person, to 
indude full English breakfast, 
newspaper and VAT. 

To make y our reservation 
telephone Entity on 01798 831992 1 

AMBERLEY CASTLE, 
AMBERLEY, Nr ARUNDEL, 
W. SUSSEX, BN18 9ND 




10 COTSWOLDS 


The Old Swan is recognised as 'one 
of the finest hotels in the Cobiwolds' 
and has been welcoming visitors for 
over 600 years ( including Richard D2 
according to the stories). Our 16 
bedrooms are individually furnished 
and the restaurant renowned locally 
for its personal service and 
quality of food. 

Price: £55.00 per person per night 
inclusive of Dinner, Bed and Full 
English Breakfast 

AUTUMN OFFER 
THREE FOR TWO 

Book hua nights and stay Ike third night 
inclustoeaf dinner completely free 
(Sun-Thun) 

The Old Swan 
Minster Lovell 
Nr. Burford 
Oxfordshire OX8 5Rn 
Telephone 0993 774441 


rThe Clifton HoteL-i 

[a*1 *-*-* 6aC1 
FOLKSTONFS PREMIER HOTEL 

Began Regency-Style dBT tap hotel 
BO bedrooms en-aufte. sataSte TV. 
wticome tray, telephone. Sriartum. 
CLIFTON WEEKEND BREAKS 
2 MB £65 pp-2ny* 0BSBE94 pp 

Snghts DBAS (must include a Sunday) 
£132 pp including VAT 
CHRISTMAS FESTIVITIES 
4daffdtylnchahv£3B8pvpenn) 

7 day My hdusnw £314 per penon 
NEW YEARS EVE DiNNBi 
DANCES CABARET. 

2 nights £135 pp 

3 nights £177 pp 

Tel: (0303) 
b 851 231 



WILLET HOTEL 

32 S loans Gardens 
London SW1W 8DJ 
Telephone: 071-824 8415 
Fax:071-730 4830 
Telex: 926878 

Small character town 
house, oft Sloane Square. 

All modem facilities. Full 
English breakfast inclusive 


of very modest rates. 


21 


THEBLAKENEY 

HOTEL 

ETB » « •« A.VRAC ★** 
Btakency. Sr. Hob, Norfolk 
Traditional privately owned 
friendly hotel overlooking 
National Trust Harbour. 
Healed indoor pool, spa 
bath, saunas, mini gym. 
billiard room. Visit to relax, 
sail, walk, and explore 
the Norfolk villages, 
countryside and coast. 

SPECIAL FESTIVE 
ARRANGEMENTS FOR 
CHRISTMAS AND NEW YEUt 

Brochure: 0263740797 




If you want to promote 
hotel lo a discerning & affluent 
audience don't miss the next 

ESSENTIAL 
HOTEL GUIDE 

29th October 1994 

For further details or to reserve 
yarn space please telephone 


ROBERT HUNT on: 071 S73 44IS 
or fax details 
on: 071 $73 3008 


\ 


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7 GOURMET WEEKEND BREAKS 

2 J r 02L < lME TfRJCE 07 1 

Delightful Georgian Hotel in Exeter Gty centre. 
Walled garden. Award winning restaurant Warm 
welcome. Half price offer of £55 per couple per 
night in twin/ double B&B. Dinner to be taken 
on at least one night of minimum 2 night stay. 
SL Olaves Court Hotel Tel (0392) 217738 
AA AA. 2 Rosette, Hospitality Award Johansens 


y 


AA*” 

me— 
Eta ore 


€ 


BOON RONAV 
LESROimER 




Cornwall's Premier Country House Hotel 

We invite you to join m Gar ■ break in n bcmoftdty n e fuibish ed historic manor. 

34 en-saito bedrooms, sunmraoos tbod renowned for its excellence, tog tire, 
friendly staff and six acres of wooded gardens. 

Special weekend breaks for £45 per penon - to indude a roar comae dinner, 
ovemigki accommodation. bitskfist. newspaper and VAT. 

For a brochure. Teb 01872 76633 Free 01872 222989 


\ 


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A Christmas to remember 

Three nights of luxury with three days 

of the very best of Ixaditional hospitality. 

£2754)0 per person 
(folly inclusive programme) 

For our Christmas brochure please contact Wendy Grierson 
Telephone 0628891010 



Danesfleld House 

Marlow, Buckinghamshire SL72EY 

Em deluxe 


EGON RONAY 


AA**** BAC 


Luxury Breaks 
THE 


HOTEL 

Victorian Manor House. Set in 300 acres of hillside woodland. 
Ideally located for exploring the beautiful Gwent Countryside. 
With cuisine prepared by Trefor Jones, Welsh Chef of the Year. 
Indioor Fool & Leisure Facilities. 

£50.00 per person per night Dinner, Bed and Breakfast. 
(Fri, Sat or Sun) 

The CelLic Manor Hotel 
■ Coldra Woods • Newport 
• Gwent * NP6 2YA 

IS TEL: 0633 413000 


LONDON SWI 



ELIZABETH 
HOTEL 


22/22A 


& APARTMENTS 

37 ECCLESTON SQUARE, VICTORIA, 
LONDON SW1V 1PB. 

Tel: 071-828 6812 

Friendly, private hotel in ideal, central, quiet location overlooking 
magnificent gardens of stately residential square, close lo Belgravia. 
Comfortable 
Singles from £36.00. 

Doables/Twins from £58.00 and Family Rooms from £75.00 
including good 

ENGLISH BREAKFAST & VAT 

Also luxury 2 bedroom & studio apartments (min. let 3 months) 
COLOUR BROCHURE A VAILARLE 
Egon Ronay/HAC Recommended 



lira 

OFF I 


LONDON IN STYLE 



1 13ft 
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At This Superb Town House Hotel 

CORPORATE ROOM RATES FROM JUST £55 FULLY INCLUSIVE 
WITH COMPLIMENTARY CHAMPAGNE WELCOME OFFER 

* Overlooking Hyde Park * Private Car Park 

* S3 Personalised Rooms * Restaurant & Bar 

* Deluxe Rooms & Suites * 24 Hour Room Service 

LONDON ELIZABETH HOTEL 

Lancaster Terrace, Hyde Park, London W2 3PF 


25 


Tel: 071-402 6641 Fax:071-224 8900 


Ly the Hill Hotel 

Privately owned 14th Ceatnry country botd 
in the heart of the Surrey bills. 


and feeAnbgggdeFemoeKesta tmnl 


4 EMUm load nri floe wfnes 

* Lnxa/iom twbWSBM tadndhlg 14 ratift* 

* Friendly nd cfljcienl dafT 
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2 AA Rnreon Awfled fiir bod 
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HorfDikiM»eiteMCUaaiAi 


W2S 65123 1, FttwoNi Road, Hasctmcfe, Storey CUS7 3BQ, 



Suffolk Heritage Coast 


Wood Hall Hotel & Country Club 

Woodbridge Road IP12 3EG 
ETB * *■* * Highly Commended 
Come and enjoy the ambience that only a Listed HUttoric 16th 
Century Elizabethan Manor House can provide. Set in 10 idyllic 
acres in a designated area of outstanding natural beauty with 
roaring real log fires, candlelit dining, luxurious accommodation 
and much much more. The picturesque riverside town of 
Woodbridge provides the ideal base to explore the tranquil 
villages and hamlets of undiscovered Suffolk. 

•Where Countryside meets the Sea m 
TWO NIGHT AUTUMN BREAKS FROM £45 PWN, DB*B 

SPECIAL OFFER, atey 5 uislits onfy pay Cur 4, (Soa-Tnun) 

(b*ed On too people Soring) 2 



• Grand Regency country house set in 15 acres of grounds 

• Easy walk from centre of historic town with best shopping in 
the South East 

• E xcellen t leisure facilities including beauty therapy dime 
- Visit a wealth of historic houses, castles arid gardens 

• Enjoy superb cuisine 

• Owned and run as a private hotel by The Goring Family. 

Special rates now on offer.- 
Christmas 3 Day Package £350 
Winter Breaks from £59-50 per person per night, to include 
table d'hote dinner, bed and full English breakfast (including 
VAT @175%). 

Residential Conferences from £85.00 
Tel: 01892 520331 




16 


Autumn Breaks Polurrian Hotel 

Set in an BndMnang pasta overioofcing sandy cow. Surrounded by National Tiust GoasOra 
sea and treah Cornish sir. Excaptana! indoor and outdoor tenure tatties *Mi 
registered nanny and creche. Goflhg breaks awatebta. 

A sense of calm and seclusion in a bust/ world. 

For further WomaBon & colour brochure Tet (0326) 240421 • Foie (0326) 240043 
« mOa: Fakretan Hotel. Mdfal. Lizard Fa ninsula, South Comma TR127&I 



Take a Break 

Beautifully restored 
17th Century manor 
house in the heart of the 
West Country. 
Enchanting bedrooms with 
full facilities. Warm & cosy 
atmosphere. Log fires, 
exquisite home cooking 
with fine wines. 

ilfthiqbmt iRttnur 

UTouutru Hotel 
Ashwattr, Seaworthy 
Devon EX21 SDF 
Tel: tM09 211224 
Fax: 0409 211634 





COUNTRY HOUSE 
HOTEL 


Award winning Georgian Manor 
set in aver 300 aens of deer pari, 
lakes and gardens and within 
half an huuns drive of the South Coast 

2 nights Dinner, Bed 
& Breakfast from 
£ 105 per person 

inclusive nf VAT and use of our 
health clab and healed outdoor pool 
Crousnus 41 New Ybak Butcaaee 
Sent Wrru Plea subs 
Buxted, Uckfield, East Sussex 


u 0825 732711 


Four Day Christmas 
13 House Party at 

St. Brides 
Hotel 

SAITNUKRSFOOT 

SAC99NB 

AAXSX BMSCOC 

4 (TOWN mORLT COMmNDD 


from December 25th 

£275 per person 

and the opportunity to be 
awarded a 7 day 
FREE holiday in a superb 
IL4JLDERI Villa in 
Europe or the Caribbean 


Write or phone for 
brochure & details 

0834 812304 


ESSENTIAL HOTELS 
BROCHURE GUIDE 
ORDER FORM 


Please enter the appropriate number for the hotel brochures you 
would like to receive, enter your own name and address and then 
send or fax this coupon to the address shown. Replies must be 
received no later than 29tb October 1994. 


1. 

Island Hotel 

□ 

15. 

Danes field House 

CJ 

2. 

Wood Hall Hotel 

□ 

16. 

Polunian Hotel 

□ 

3. 

Blagdon Manor 

□ 

17. 

Cashel House 

□ 

4. 

Vermont Hotel 

n 

18. 

The Clifton Hotel 

□ 

5. 

Amberley Castle 

□ 

19. 

The Celtic Manor Hotel 

□ 

6. 

The Spa Hotel 

□ 

20. 

Selsdon Park Hotel 

□ 

7. 

SL Olaves 

a 

21. 

The Wiliet Hotel 

a 

8. 

Buxted Park 

□ 

22. 

Elizabeth Hotel 

□ 

9. 

Hanbury Manor 

□ 

22a. 

Elizabeth Hotel & Apartments 

□ 

10. 

Old Swan Hotel 

a 

23. 

Highbullen 

□ 

11. 

Alverton Manor 

a 

24. 

The Blakeney Hotel 

a 

12. 

The Marcliffe at Pitfodels □ 

25. 

London Elizabeth Hotel 

□ 

13. 

SL Brides Hotel 

□ 

26. 

Royal Windsor Hotel 

□ 

14. 

Combe Grove Manor 

□ 

27. 

Lythe Hill Hotel 

a 


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FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEM8eR 25 1994 


WEEKEND IT XII! 


* 



PERSPECTIVES / OUTDOORS 


As They Say In Europe 

Does British philosophy exist? 

James Morgan explains why the death of intellectual Sir Karl Popper made news abroad 

mere mention of such matters pro- 


T aking up from where we 
left off last week - the 
inadequate intellectual 
agility of the En g lis h - we 
see the same phenomenon high- 
lighted in an important story this 
week. Sir Karl Popper died a week 
ago: he was. according to the Nobel 
prizewinner. Sir Peter Medawar, the 
greatest philosopher of science 
“who has ever lived". His work 
extended beyond that area, but for 
the British his death was a matter 
largely For the obituary pages. On 
the continent Popper’s death was 
news. 

Like most British intellectuals of 
his generation. Sir Karl was bom in 
Vienna in the first decade of the 
century. He left for New 
initially, to avoid the Nazis. He was 
a member of the famous Vienna Cir- 
cle which gave logical positivism 
and the verification principle to an 
unsuspecting world. To British jour- 
nalists. the verification principle is 
a tool employed by a ruthless man- 
agement in any crackdown on 
expense claims. To continentals the 


vidfis the occasion for a flashy dis- 
play of intellectual skills. 

Few there would admit any defi- 
ciency in their acquaintance with 
the course of 20th century philoso- 
phy. This was nowhere better illus- 
trated than in Vienna itself. Among 
the massive tributes paid to Popper, 
the article by Pia Maria Plechl, a 
leading local columnist and lumi- 
nary, in Die Presse, stood out. She 
opened with an alleged quotation 
from the philosopher, which, in one 
formulation, concerned a black man 
searching for a black hat in a black 
cellar. A fruitless search might 
have led him to conclude, “It’s 


really not there." Popper had shown 
the world that the correct response 
was, "Maybe it’s really not there.” 

Maybe the commuter on the rush- 
hour tram from Grinzing under- 
stands this sort of thing but it left 
me puzzled. Why does the man have 
to be black, for example? 

In Vienna, Popper mixed with the 
logical positivists. Another noted 
philosopher. A J Ayer, when asked 
on television why he had ceased to 
be a logical positivist, replied: 
"Because it was all rubbish.” 

This statement caused a sensa- 
tion in the British philosophical 
community which speculated for 
some years on its exact meaning. 


In southern Europe television 
dominated many of the Popper-in- 
spired stories. The reporters there 
wisely kept to philosophies they 
could understand. Sunday's La 
Stampa pretended it was really 
interested in Popper’s seminal work 
of 1945. The Open Society and its 
Enemies, but did not take long to 
get round to his view that television 
was the real enemy of democracy 
and that it encouraged violence 
among the young. 

El Pais on Monday was so 
entranced with this topic that it left 
Popper to its television critic, who, 
ancler the headline, "Popper No” 
said he did not uiw» the man. 


“I do not want the dogmatism of 
the anti-dogmatists, and I do not 
like those who not only believe the 
US model is the least worst of all 
possible models but usually believe 
it's the best." 

The writer went on to argue: “The 
attribution of crime to television is 
a matter for minor popular psychol- 
ogists.” 

But the adjacent listings showed 
Popper was right: la Ley de Los 
Angeles (LA Law) jostled with bull- 
fighting and westerns for the atten- 
tion of the Spanish public that 
evening. 

An editorial, entitled "Popper’s 
Hour”, appeared on the front of the 


Frankfurter Allgemeine Zeilung. In 
Paris. Liberation devoted a page and 
a half to the great man - “We lose 
Popper". They both grandly noted 
bow he had been able to translate 
the principle of CalUbilism from sci- 
ence to philosophy. This roughly 
states that notiiing can prove a the- 
ory to be absolutely true, because 
something might come oloug that 
falsifies it. but only one thing needs 
to go wrong for it to be proved false. 

This is the philosophical version 
of Murphy's law and has certain 
compelling qualities. But the falli- 
bility principle must presumably 
apply to the theory that watching 
television makes you violent. And 


equally to the theory that watching 
television does not make you vio- 
lent? (As you will gather. I did not 
emerge from my philosophy finals 
covered with glory.) 

It was probably the Frankfurter 
AUgemeine that produced tin- most 
impressive testimony as tu Popper's 
influence: “He played n significant 

role in the westernisation of the 

Federal Republic." 

This had happened because the 
Torraer chancellor, Helmut -Schmidt, 
had discovered him early on and 
then helped push his Social Demo- 
cratic Party away from dogmatic 
Marxism. 

I cannot believe that it is usual 
for the death of a philosopher to 
make such an impact on European 
commentators. Nor that there has 
in recent years been a such a man 
who has spoken from bevoiui the 
grave in so many voices. And in so 
many languages, apart from 
English that is. 

■ James Morgan is economics corre- 
spondent of the BBC World Service. 


Gardening 

After the massacre, the narcissi 


T HIS weekend, it is 
time to plan the 
annual bulb massa- 
cre. During the past 
30 years, I have sent hundreds 
of them to their death: tulips, 
anemones, iris, muscari - and 
my latest victims, 200 ipheions, 
which were planted lovingly 
on a warm October day last 
year and responded by sending 
up two green shoots between 
the lot of them in March. 

Gardeners like to forget the 
mass murders buried in their 
gardens because hope springs 
eternal; if only the Triumph 
tulips would do the same. But I 
want to share 35 years* experi- 
ence of such things with those 
of you who cannot confess to it 
or are starting out with high 
hopes, coloured photographs 
and bulb catalogues which talk 
of naturalising. 

This year is the tulips' 400th 
anniversary. I send my happy 
returns to the family al thou gh, 
as individuals, J have seldom 
had one which has reached its 
fifth birthday. But since tulips 
should not be planted until late 
October, I will reserve a sepa- 
rate week for their birthday 
obituary'. 

How. though, do wise gar- 
deners spend their money with 
better prospects of success? My 
successes have always been 
narcissi . This year, the trade 
has not found narcissi easy 
because many of the bulbs did 
not grow on well in a year of 
peculiar weather. 

I follow firm narcissus rules. 

I put the tall, hybrid varieties 
in grass, chosing them to cover 
their widely differing seasons. I 
swear by the early Icy Follies, 
followed by Barrett Browning 
and the late Pheasant’s Eye. 
These narcissi, with a white 


base to the flowers, persist bet- 
ter in grass than the tempting 
all-white daffodils. 

Order them in 25 kg bulk for 
country planting and do not 
economise by starting with a 
few and seeing what happens. 
They grow almost everywhere, 
bat you should segregate the 
varieties in separate clumps 
because they flower at differ- 
ent seasons. They look misera- 
ble if they open when their 
neighbours have gone brown. 

Small narcissi also are excel- 
lent and persist well, but the 
catalogues mislead you by rec- 
ommending th«n for naturalis- 


ing. Why not? you might think; 
after all, some of them grow 
wild on the Welsh borders or 
in the Yorkshire dales? 

The best method is to plant a 
few, see if they like you and 
allow them to colonise. Vigour 
varies widely but you should 
start with some small, experi- 
mental clumps of February 
Gold. TCte a Tate and the 
native Lent Lily. They all 
flower early, allowing you to 
mow the grass much sooner in 
the year. 

I have known gardeners 
whose grass has been colonised 
by these strong varieties after 
three years. If they start to 
spread, the best method is to 
lift and divide them after flow- 
ering when they are still in 
leaf: they move much better 
late in April, the season when 
no supplier can send them out 

We all buy dry bulbs which 
need to be planted quickly. 


Next year, there is no particu- 
lar merit in dead-heading 
them, but it really does help, 
after flowering, to spray the 
leaves with liquid fertiliser 
once a fortnight. 

Most of the small narcissi 
which I have not murdered are 
used in small groups, in flower 
beds. They bloom early and the 
small leaves are unobtrusive 
when they die. The prettiest, 
but not the cheapest, is Dove 
Wings, although groups of a 
dozen bulbs go a long way. 

Generally, you can make as 
much of an impact with small 
clumps, spaced well down the 


length of the bed, rather than 
with an expensive total cover- 
age. February Gold is the 
strongest form of all (although 
it is not gold and does not 
flower in February). Jack 
Snipe is almost as good and 
Peeping Tom also has stamina. 

Never try to naturalise jon- 
quils in grass: they are better 
in dry ground below a wall 
The pure white forms are 
extremely pretty and we have 
had sensational success with 
the pure white Thalia, planted 
to face due north at the foot of 
Oxford’s ancient city walL It is 
supposed to prefer a warm, 
sheltered place but it has 
spread by the hundred in this 
unlikely site. 

Narcissi grow well on heavy 
soil but, in light gardens. I 
would choose anemone Blanda 
as a carpet instead; its starry 
flowers open at ground level In 
pink, white and blue (or simply 


blue, if you prefer). They arrive 
like dry, black nuts from the 
suppliers and Z have learned 
the trick to them. Soak them 
for 24 hours in a bowl of cold 
water before planting, and do 
not worry if you are not 
entirely sure which side of the 
conn should be uppermost. 
Somehow, they right them- 
selves. 

They are excellent for the 
front of beds which will be 
semi-shaded when leaves 
return to the trees but where 
they can open in the spring 
s unshin e meanwhile. They will 
often spread quite happily and 


the leaves are not a bother. 

Crocuses are harder to kill if 
you are not too experimental 
Despite a few triumphs, 1 have 
vowed to follow narcissus rules 
with this famil y, too. Almost 
the only ones to go into grass 
will be the strong Dutch 
hybrids, which persist if you 
do not mow them before the 
leaves have died away. 

The whites and yellows are 
chosen easily, but the blues are 
more tricky because the best- 
known are purple or striped 
annoyingly. My favourite is 
Sky Blue - but squirrels and 
mice like all these crocuses, 
too, and I know of no protec- 
tion except the shotgun. 

Small-flower crocuses usu- 
ally dwindle in grass, except 
for the vigorous Tommasini- 
anus; this variety is the other 
great bet for a future carpet in 
the lawn. Other small varieties 
include flowers which I might 


well choose to take to my des- 
ert island: Blue Pearl and 
Cream Beauty are of unsur- 
passed beauty and show great 
stamina along the front of 
flower beds out of season or at 
the foot of hedges of roses. On 
open ground, they persist and 
multiply, but grass Is too much 
for them. The best multiplier 
of all in a flower bed is the pale 
blue veraus Vanguard - not 
the cheapest, but much your 
best hope of total cover. 

Leave aconites alone in 
quantity. They are better 
bought in green leaf in the 
spring and planted in small 
samples to see if they are 
happy. The same is true of 
snowdrops, which few people 
establish from dry bulbs 
planted now. 

Better bets for the bigger 
cheque-book are the milk-blue 
and white chionodoxa Luciliae, 
which spreads rapidly, and the 
wonderfully early sc ilia Spring 
Beauty, which makes clumps 
but is essential because it (low- 
ers so early. Bluebells are a 
romantic menace and you 
probably want no more in your 
life. 

I would like to have ended 
on a positive note. For 20 
years, my best early spring 
bulb was the wonderful Iris 
Histrioides Major, which flow- 
ers in a brilliant blue at a 
height of 6in and resists any 
weather. I have never been 
able to kill it, whereas its other 
small relations split into small 
bulbs and dwindle after two 
years. 

Now. the nurserymen have 
killed it instead. Its two main 
suppliers in Holland allowed a 
virus simultaneously into their 
stock, and this admirable bulb 
is now off the market 


Robin Lane Fox has some advice for bulb enthusiasts who 
want to spend wisely and see tangible evidence of success 



An early risen narcissus February Gold, the strongest form of afl a»«vm lomm 


Motoring / Stuart Marshall 

Citroen discovers a 
cure for the bends 


r. 


3 pen most motoring 
magazines and you 
will see pictures of 
family-type cars 
ng cornered savagely, with 
wheels on one side pushed 
under the body and hanging 
vn on the other. Pity the 
rtographer who has to make 
id-on action shots of the lat- 
Citroen Xantia Activa. 
?y will look as if the car 
■e stauding stilL 
lowevcr hard it is cornered, 
Activa refuses to roll. If 
i look closely at the tyres, 
i might see a tiny amount of 
Mvall distortion - but that 
uld be all. 

ho secret? The Activa has 
electronically controlled roll 
Ration system. As soon as 
body inclines by half of one 
roe. sensors activate a pair 


of hydraulic jacks. Working in 
conjunction with Citro&n’s 
unique gas /hydraulic suspen- 
sion, they keep the body as flat 
as it would be on a car with no 
springs at all - without com- 
promising ride comfort in any 
way. 

Although Citroen is reluc- 
tant to admit it, the roll-stifling 
system makes it possible to 
drive the Activa round bonds 
faster than ever. “That is up to 
the driver," the company says. 
“We see it as a useful innova- 
tion that improves handling 
and gives the driver greater 
control." Quite so. 

A Tew days ago, in the Massif 
Central, I swooped along curv- 
ing mountain roads in a 
Citrodn Xantia Activa at 
speeds no sensible family man 
- or even a company rep in a 


END OF LEASE 

(GENUINE) 

CLOSING 
DOWN SALE 

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Tel: 071-493 0126 Fax: 408 2496 


hurry - would contemplate. It 
remained undramatically con- 
trollable. To drive it like this, 
however, is to miss the point of 
active roll limitation. 

At realistic speeds, the ride 
was even more tranquil than 
that of the normal Xantia XVS 
turbo-diesel, which is my pres- 
ent personal transport That is 
because the absolute lack of 
body roll makes winding roads 
feel almost straight, a fact pas- 
sengers appreciate even more 
than drivers. 

The Activa (effectively, the 



Cttro&i’s Xantia Activa... vwKSng roads feel almost straight 


top XVS two-litre, 16-valve, pet- 
rol-engined model) with its 
active anti-roll system, makes 
its debut at the Paris Mondial 
de l’Automobile opening on 
October 6. 

Active anti-roll suspension 
was previewed on Citroen con- 
cept cars at the past two Paris 
motor shows, in 1590 and 1992. 


It will be featured at this year's 
show on a startling, though 
practical, concept car called 
the Xanae (call it Zan-eye-eh). 

Citroen says the Xantia was 
designed from the outset to 
take active anti-roll suspen- 
sion, but there is no reason 
why the big XM should not be 
adapted to have it, too. 



ifc Wi , ■■■ I I M ill n ii ■■■ m ■ ■ mm i i .u ■ m i i 

Honda prepares to take on Europe’s 


This is the latest Honda Civic, 
designed and developed In 
Britain and Germany for 
European markets and about 


MOTORS 


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to go into production at 
Swindon, Wiltshire, writes 
Stuart Marshall. 

It will be tmveiled In Paris 
in two weeks and will put 
Honda into contention with 
Europe's mainstream 
car-makers. 

At prices between £11,000 
and £14,000, the Civic will 
compete with up-market 
versions of cars like the Ford 
Escort Opel/VauxbaD Astra, 
Peugeot 306 and Volkswagen 
Golf. 

All Civics are fitted with 
power steering, and the top 

nuultle havA mnnvh wnnd 


veneer interior trim to make 
former Jaguar owners feel at 
home. 

Four engines - of 1.4 and 
1.6-litre capacity - will be 
offered, two of them with 
Honda's exclusive VTEC 
variable valve timing. 

Every Civic will have twin 
air-bags - a first in this class 
of car, according to the Honda 
company. Automatic 
transmission and 
airconditioning will be extras, 
although priced reasonably. 

Sales start next month. A 
new. Civic-based Rover 200 
will be launched eariy in 1995. 


Country View /Michael Woods 

Why cats get the bird 


T he news that, in 1994 
for the first time, 
magpies have moved 
into the top ten gar- 
den birds will be greeted with 
cries of horror in some quar- 
ters. 

The survey, carried out by 
almost 20,000 members of the 
Young Ornithologists Club, 
shows an overall fall in the 
numbers of songbirds visiting 
our gardens. No doubt there 
will be some who blame the 
magpie for the loss. 

Certainly this fine bird, with 
its beautiful black and white 
plumage, tinged with metallic 
green and blue, and its bold 
piratical manner, bas done 
extremely well during the past 
30 years for its numbers have 
trebled. 

On the other hand it has 
made a come-back from 
extreme scarcity and there was 
a time when it was most 
unusual to spot a magpie as 
they were heavily controlled 
by gamekeepers. 

Bven today, in areas with 
large shooting estates, it is a 
rare occurrence to see one of 
these birds. But neither the 
Royal Society for the Protec- 
tion of Birds nor the British 
Trust for Ornithology con- 
demns the magpie. 

Jn the poor habitats provided 
by some gardens, which offer 
little cover for songbird nests, 
magpies can be devastating 
but, generally-speaking, their 
bad reputation Is unwarranted. 
Research shows that in rural 
areas an increase in the num- 
ber of magpies has been 
matched by an increase in 
songbirds and even the recent 
YOC survey indicated that 
chaffinches and coal tits were 
also moving up in the top ten. 

The real reasons for the 
decline in our songbird popula- 
tion are much more difficult to 
pin down and probably result 
from a complex mix rather 
than one single determinant. 

Blaming the magpie merely 
masks the real causes and 
diverts attention from a proper 


investigation. Various explana- 
tions have been put forward 
including the increased use of 
slug pellets. 

One significant cause is 
likely to be the domestic cat, 
the population of which, in 
Britain, now numbers around 
8.5m. While the magpie emp- 
ties a nest by removing nes- 
tlings one at a time with a 
great deal of noise and distress, 
it is generally taking nature's 
doomed surplus, the young of 
incautious or incompetent par- 
ents, Often, the theu wiser par- 
ent birds nest elsewhere and 
successfully raise a second 
brood. 

Cats, nn the other hand. 


move silently by night and 
eliminate the parents, leaving 
the chicks to perish and 
thwarting any chance of a sec- 
ond brood, a mucli more devas- 
tating blow. 

So rather than blame the 
magpie, why not contribute to 
The Cats Protection League 
which works hard to persuade 
cat owners to liave pets neu- 
tered? The spaying of a single 
female could prevent thou- 
sands of unwanted kittens and 
help many more garden birds 
to survive. 

■ Information: Cats Protec- 
tion League, 17 Kings Road, 
Horsham, West Sussex (tel: 
0403-261 947). 


c-// 

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FINANCIAL TIMES 


X 



XIV WEEKEND FT 


WEEKEND SEPTEMBER 24 /SEPTEMBER 25 1994 


SPORT 


Motor Racing 

More power to 
your right foot 

The Formula One year is building to a finale which 
will be decided by driver skill, writes John Griffiths 


B izarre as it may seem 
the outcome of this 
year's Formula One 
world championship, 
still the technological pinnacle 
of motor racing, may prove to 
have rested on the thickness of 
a short plonk. 

Made of wood, bolted to the 
underside of the Benetton-Ford 
of current championship leader 
Michael Schumacher - as it is 
every grand prix car - its pur- 
pose is to make the cars ride 
higher and thus lose some of 
the downforce which has 
allowed them to corner at 
G-forces for which most cir- 
cuits had never been designed. 

The plank forms a small part 
of the intended safety dividend 
from that black day in May 
when the late Ayrton Senna's 
Williams-Renault speared trag- 
ically. and still not wholly 
explicably, into the unyielding 
concrete wall of Imola's infa- 
mous Tamburello curve. 

Had the plank under Schu- 
macher's Benetton been a few 
millimetres thicker when it 
was measured by race officials 
at the end of the Belgium 
grand prix, he might he watch- 
ing tomorrow's Portuguese 
round from the sidelines rea- 
sonably confident that Damon 
Hill had little chance of chal- 
lenging his lead in the four 
remaining grands prix. 

Schumacher would have had 
that confidence even though at 


the Estoril circuit he will be 
sitting out the second race of a 
two-race ban for ignoring the 
stewards’ black flag for a mis- 
demeanour in the British 
grand prix at Silverstone. 
Instead, the plank's missing 
millimetres, bringing the car 
closer to the ground and thus 
making it more aerodynami- 
cally effective, were construed 
by officials as more than could 
be explained by scraping over 
the kerbs. Schumacher lost all 
his points for first place. If HQ1 
takes bis Renault- Williams to 
victory tomorrow, as he has 
vowed he will, the young Ger- 
man's lead will have been cut 
to just one point. 

In the season's final three 
races Schumacher will have to 
cope not just with Hill and the 
other rivals who he has out 
paced so easily this season . 
but the fiercely competitive 
former FI and IndyCar cham- 
pion Nigel Mansell. 

At 41 Mansell, returning 
from IndyCars to his old Ren- 
ault- W illiams seat, has some- 
thing to prove. Currently 
enduring media taunts that he 
is over the hill, he will almost 
certainly prove Schumacher's 
most formidable challenger. 

Benetton was also fined in 
connection with the black flag 
incident. It has been involved 
In disputes with the authori- 
ties over its in-car computer 
software and its pit-stop 


refuelling equipment There is 

a risk that for both Benetton 
and Schumacher a season 
which began as a tour de force 
may end as fiasco. If so, it will 
be a debacle for Benetton only. 
Spectators, media and spon- 
sors. are more likely to relish 
an ting fight to the finish. 

Better yet, this season's rule 
changes, embracing a “technol- 
ogy ban", and safety changes, 
are having an almost entirely 
positive effect on grand prix as 
competition and spectacle. It 
may still not offer the wheel- 
banging closeness of touring 
car racing, but the huge tech- 
nology advantage of leading 
trams has been much dimin- 
ished. In particular, the ban- 
ning of traction control, that 
odious computer device which 
limited power to the rear 
wheels while accelerating out 
of a comer, has tilted the bal- 
ance of power firmly back to 
the driver’s right foot. No lon- 
ger is he protected by technol- 
ogy from his own over-eager- 
ness. Recently, we have 
witnessed even the demi-gods 
pirouetting into the gravel- 
traps as they re-leam the trac- 
tion control through human 
perception and reflexes. 

There are those who argue 
that the traction control ban is 
a step backwards in terms of 
safety, and perhaps it is. But 
balancing power against avail- 
able tyre grip is one of the 



most fundamental of racing 
driving skills. Its absence had 
served to diminish a sport 
which, by its very essence, can 
□ever be wholly safe. 

The changes have also 
helped brave and skilful driv- 
ers escape from the relative 
obscurity of file middle pack. 

No-one, for example, could 
fail to be impressed by Ukyo 
Katayama thrusting the Tyrell- 
Yamaha team back to promi- 
nence and harassing even the 
Williams-Renaults in the most 
recent grand prix, at Monza. 


The hard-charging of Rubens 
Barrichello with the Jordan- 
Eart and Ferrari, with Jean 
Alesi and the ever-cheerful 
Gerhard Berger, are also bene- 
ficiaries of the levelling of the 
technological playing field. 

With Estoril the latest circuit 
to have comers tamed and run- 
off areas increased, tomorrow’s 
drama should be confined to 
the race itself. It should never- 
theless contain plot and tex- 
ture enough for the most 
demanding aficionado. 

In the past few days. Hill and 


Schumacher have re-signed for 
their teams. Their immediate 
futures are assured. But the 
young Scot, David Coulthard, 
who must give up his Williams 
seat to Mansell for the last 
three grands prix, will he out 
to prove that it is he, not Man- 
sell, who deserves to drive 
alongside Hill next year. He 
pressed Hill hard at Monza and 
will probably do so again 
tomorrow. Hill himself is 
uncomfortably aware of a 
growing tide of “Coulthard is 
faster ” comment. The coming 


months for the likeable Hill 
will be uncomfortable indeed if 
tomorrow Coulthard remains 
behind him only on the basis 
of team orders. 

Neither wifi gain much relief 
from Ferrari. Alesi, after lead- 
ing so easily at Monza until 
mechanical failure intervened, 
lusts for his first win. 

Trying hardest of all will be 
Johnny Herbert It has been a 
miserable couple of seasons 
with Lotus for the undoubtedly 
rapid Englishman. Lotus’ 
deteriorating financial position 


led at last to the appointment 
of administrators a few days 
ago. Ironically, this coincided 
with the arrival of new Mugen- 
Honda engines. At Monza Her- 
bert headed even the Williams 
cars away from the start The 
brief challenge was ended by a 
collision with the fiery Irish- 
man, Eddy Irvine. But if Her- 
bert can prove tomorrow, in 
front of several potential spon- 
sors. that Monza was no flash 
in the pan he may save not 
only his own career - but Lotus 
itself. 



Soccer 

Oh lucky man 

Peter Berlin looks at Keegan’s Newcastle 



Tyneside saviour. Beardsley has retained to lead Newcastle to the promised land eew aun*a 


T yneside is gripped by mania. 
Newcastle United lead the 
league. One Geordie. among 
the Arsenal fans in the West 
Stand at Highbury on Sunday, 
explained that if he wanted to see his 
team play he had to travel to away 
matches to do it. His brother said: “See- 
ing Newcastle on top of the table seems 
unreal. It's like having a Labour Gov- 
ernment with a thumping majority." 

Tyneside has not been touched by 
football glory for 20 years. In 1974, New- 
castle reached the FA Cup final They 
were outplayed by Liverpool and lost 
3-0. Kevin Keegan inspired the winners 
and scored twice. The game represented 
a turning point for both dubs. 

Liverpool had won the league two 
years earlier, but the cup victory sig- 
nalled the start of a period of unprece- 
dented domination. In the next 15 sea- 
sons they won 10 league titles, they also 
won four European cups; the first 
inspired by the irrepressible Keegan, 
the last three master-minded by his 
replacement. Kenny Dalglish. 

Newcastle went into decline. They 
sold Malcolm MacDonald to Arsenal 
and Terry McDermott and Alan Kenn- 
edy to Liverpool and were relegated in 
197S - one year before the last Labour 
government fell. They returned to the 
first division in 1984. inspired by Kee- 
gan. Chris Waddle and Peter Beardsley. 
The euphoria was short-lived. Keegan 
retired. Dalglish, now manager of Liver- 
pool. bought Beardsley. Newcastle were 
relegated again in 1PS9. By February 
1992 they had slid into the debt and to 
the botinm of the second division. The 
club turned to Keegan again. 

•Just as Keegan, the player, provided 
the yardstick by which Dalglish was 
measured. So Keegan the manager 
must measure himself against what 
Dalglish has achieved. Dalglish was 
more extravagantly gifted but lacked 
the ebullience which made Keegan a 
talisman wherever he played. Dalglish 
won lu2 caps for Scotland, yet, unlike 
Keegan, a sense of undcrachicveraent 
hangs over his international career. 

A similar doubt surrounds his time as 
manager of Liverpool He managed the 
club to three championships, the side of 
1987-8. was perhaps flic greatest Liver- 
pool team. Yet he could not avert the 
decline of the Liverpool empire. 

At Biackhum. Dalglish has hardly 
put a foot wrong. Arthur Cox and Roy 


MacFariand at Derby, Graham Turner 
and Graham Taylor at Wolves, have 
also spent heavily from the pockets of 
benefactors, without lifting their dubs 
out of division one. Dalglish steered 
Blackburn to promotion within eight 
months of arriving and then to second 
place In the Premiership. But he plod- 
ded up the ladder. Keegan scampered. 

The team Dalglish built with Jack 
Walker’s gold, possesses a leaden qual- 
ity; witness their grimly uninspired 1-0 
loss to Trelieborgs of Sweden in the 
UEFA Cup. On the same night Newcas- 
tle gave a golden performance away to 
Royal Antwerp. Newcastle won 5-0. 
They have won all six league games, 
scoring 22 goals and are four points 
ahead of Blackburn at the top of the 
table. They are playing dazzling foot- 
ball. Today they are at home to Liver- 
pool whose fans could remind Keegan 
that Newcastle will not be a great team 
until they can sustain their form in the 
first eight matches over eight months. 

Even so Keegan's achievement is 
already striking. He took over at New- 
castle four months after Dalglish did at 
Blackburn. And he took over a team 
much lower down the league. Dalglish 
has spent about £30m in three years. 
Keegan lias spent £l7m in 30 months. 
But where Dalglish has bought blue 
chippers and bargains. Keegan has 
gambled - but then taking over New- 
castle when he did was a gamble. 

Dalglish spent £L2m on Tim Flowers, 
an England goalkeeper. Keegan spent 
£300.000 on Pavel Smicek from the 
Czech Republic. Smicek dominated at 
Arsenal. Dalglish spent £S.3m on his 
twu first-choice forwards, Alan Shearer 
and Chris Sutton. Keegan has spent 
just over £6m on Beardsley, Andy Cole, 
Robert Lee and Ruel Fox. Beardsley 
was 32 and Newcastle's chairman. Sir 
John Hail, opposed the deal. Cole had 
played just one top-division game and 
had a poor personal reputation. 

Players blossom at Newcastle. At 
Norwich. Fox rarely ran at defenders. 
This season he is a born-again dribbler. 
Cole is now creator as well as goal- 
scorer. Lee, who scored roughly a goal 
every five games at Charlton, is emerg- 
ing as a game-winner, scoring eight 
goals in eight games. 

Newcastle’s success is based on more 
than on eye for untapped talent The 
team has a style. Where Blackburn are 
solid and functional, Newcastle have a 


distinctive personality. 

Last Sunday they posed insuperable 
problems for one of the league's most 
sophisticated defences. Newcastle are 
not the only team in the Premier 
League dedicated to attack, they are not 
the only quick, intelligent, passing 
team. Cole is an exceptional goal-scorer, 
but there are half a dozen of them in 
the division. What makes Newcastle 
special is their relentless running - into 
attack and back into defence - and the 
ability of their front four to dribble. 

A good passing game is based as 
much on the effort of the players off the 
boll as the perception of the man with 
it On Sunday, one sweeping Newcastle 
counter-attack ended with John Beres- 
ford, the full-back, appearing unmarked 
at the far post to make a header. He 
then turned and sprinted back 90 yards 
to his defensive position. Opposing 
defences must chose between picking- 


up the runs from deep of Beresford, 
Marc Hottiger, Scott Sellars and Phil- 
ippe Albert and double-marking Cole, 
Beardsley, Lee and Fox. 

For Arsenal. Martin Keown marked 
Cole, while Tony Adams burst forward 
into the space in front of the penalty 
area from which Beardsley, in particu- 
lar, likes to plot mischief, to break up 
attacks. Cole did not score but Keown, 
stretching and twisting all afternoon, 
did, twice, in his own net 

Newcastle's other goal in a 3-2 win 
came from a generously-awarded pen- 
alty. but Keegan brushed aside sugges- 
tions that his team had been fortunate. 
Football coaches who want their play- 
ers to shoot more tell them they must 
buy tickets to win the lottery. Newcas- 
tle’s ceaseless, sharply-pointed attacks 
bring a lot of tickets. They are bound to 
earn themselves same luck and Keegan 
has always been a lucky man. 


Skiing/ Amie Wilson 

Just the ticket, mate 


Atv:c Wilson and Lucy Dicker 
arc trying to ski every day of 
199-1 on n round-the-world trip. 

I t would seem natural, we 
were told, “for Julie And- 
rews to suddenly cavort 
through the wild, flower- 
strewn hills" at Thredbo. New 
South Wales. Sadly, during our 
visit, she appeared to have 
stayed at home in Gstaad. Still, 
you can understand the 
attempts by the resort's mar- 
keting department to depict It 
as something out of the Euro- 
pean Alps, in spite of the ubiq- 
uitous snow gums and crimson 
rasellas. 

It does have a most attrac- 
tive mountain village and the 
skiing, on balance, is probably 
the best in Australia, But it is 
debatable whether “hot runs 
like Cannonball, Funnel Web 
and Michael's Mistake" have 


“world-wide reputations", good 
as they are. and whether 
"every metre is groomed like a 
Test match wicket". This kind 
of hype is encouraged by 
intense rivalry between 
Thredbo and its biggest rival, 
neighbouring Perisher Valley. 

Until recently, Perisher 
claimed the highest lift in Aus- 
tralia: the Mt Perisher double 
chair. Then, Thredbo had it 
surveyed on the sly and 
announced that, because the 
lift did not quite reach the 
summit, it had the highest - 
Karel's T-bar. at just under 
6.675 ft - by just over one ski- 


er’s height: 6ft 61* in. 

Our last resort in Australia 
was Perisher’s other big rival 
Mount Blue Cow. Built only 
seven years ago, the name is 
said to be inspired by a cow 
belonging to a stockman’s wife 
which strayed into the high 
pastures one autumn and was 
found frozen to death the fol- 
lowing spring. 

Recently. The Cow, Austra- 
lia’s newest resort, bought one 
of the oldest - its neighbour. 
Guthega. It was here that we 
skied our last trails in Austra- 
lia. Wombat’s Lament and 
Mother-In-Law, after that we 


headed for Sydney en route to 
New Zealand's South Island. 

“No dramas, mate,” is a com- 
mon saying Down Under. But 
suddenly, there were. While we 
were having breakfast over- 
looking Sydney harbour, our 
flight to Christchurch was tak- 
ing off without us. 

Our tickets were printed last 
year - and Air New Zealand's 
schedules had changed so that 
our flight left at Sam instead of 
H JO. At the airport, we were 
told the next flight would not 
get us to Christchurch until 
after midnight The grim pros- 
pect loomed of a 300-mile drive 


back to Thredbo to ski. 

"Do you have a flight going 
anywhere in New Zealand?" we 
ashed, desperately. There was 
one to Wellington in half an 
hour. It was not where we 
wanted to go, but we grabbed 
it As long as we could fly on 
to Christchurch and reach Mt 
Hutt before midnight, we 
would ski that day. 

By the time we had neared 
the bottom of the long, wind- 
ing dirt road to the mountain, 
it was 9pm. Would the road be 
open? Would we be able to 
reach snow? Would there be 
anyone there? 

To our relief, the place was 
h umming . Soon Lucy and I 
were rumbling up the moun- 
tain in snow cats for two mile- 
long descents, our paths lit by 
powerful arc-lights on the 
machines. Our n£Ord of skiing 
every day was intact - just 


Rugby 

Four views of the 
southern stars 


T wo weeks ago, I 
took one of the 
Sydney's new dou- 
ble decker trains to 
North Sydney to 
watch the rugby union semi-fi- 
nal between Waningah and 
Gordon. 

The ground has a Field of 
Dreams quality to it it is a 
quaint and mellow oval which 
could easily double as a home 
for a Palm Court orchestra and 
it is owned not by Waningah 
or Gordon or by the Sydney or 
New South Wales RFUs but by 
the local council As such it 
plays home at weekends to the 
North Sydney professional 
rugby league team and a host 
of rugby union sides, some- 
thing we, in England, find 
unacceptable, although why 
we do, is hard to fothom. 

Although Gordon caused an 
upset last year by winning the 
Grand Final - Randwick, the 
best side, had done a Bath, los- 
ing their concentration, and 
the mflteh, in an early round - 
this year they have been a 
shadow of themselves. Warrin- 
gah, with a strongish pack and 
fielding the best player, Mark 
Catchpole (son of the legend- 
ary Ken Catchpole), at scrum- 
half, were favourites. 

The game was played under 
floodlights to attract a larger 
crowd; the first rugby league 
semi-final, which drew 40,000 
to the Sydney Football Ground 
that afternoon would have 
offered over-powering 
competition. 

As I watched Gordon and 
Warringah my mind wandered, 
the game had little attraction 
for the neutral spectator and I 
kept thinking that I had seen 
parts of the ground before. It 
was not until later that it 
dawned on me that the stands 
had come from the Sydney 
Cricket Ground when the 
“hill” was dug-up. 

In the end, in front of 8.000, 
Warringah. emerged the win- 
ners by 29-18 though Gordon 
were much the better side. 
Waningah went on to lose to 
Randwick a week later. 

It was an unfair comparison 
but a week earlier I had been 
in the Bosch hospitality suite 
at Ellis Park in Johannesburg 
to watch Transvaal narrowly 
beat Western Province in the 
lion Cup, South Africa's equiv- 
alent of the Plkington Cup, in 
front of 42,000 spectators. That 
day, there were 20 prospective 
international players on show. 
At North Sydney there were 
none. 

Sydney is essentially a vil- 
lage. you go to a bar or restau- 
rant and hump into the stran- 
gest of people. I ran into Sir 
Nicholas Sbehadie who was 
Lord Mayor of the city when I 
first visited in 1975 with the 
England rugby team. He 
invited me to a game that 
weekend, the major rugby 
league semi-final between Can- 
berra and Canterbury at the 


SFG, where a month earlier, 
the Wallabies had beaten New 
Zealand in the Bledisloe Cup 
with that tackle by George 
Gregan. 

There was a buzz in the air. 
The media was excited and at 
the many breakfasts, brunches 
and cocktail parties that 
morning, the talk was of the 
game. 

The ground, by Australia’s 
best known architect, Philip 
Cox, ranks alongside those at 
Murrayfield and Old Trafford. 
Sir Nick chairs the trust that 
also looks after its neighbour, 
Sydney Cricket Ground. 

We were joined at his table 
for lunch by, among others, a 
cabinet minister and David 
Campese, the Wallaby back, 
fresh, or rather, unfresh from 
his Ftench Barbarian appear- 
ance in Paris against the Bar- 
barians. 

Big-spending rugby league 


Derek Wyatt saw 
the best of the 
League and 
Union seasons 
below the equator 


club. Canberra Raiders, have 
bad the most brilliant season. 
Their full back, Brett Mullins 
is the best player in the world 
and their fine up also includes 
Mai Meninga, although he is 
well past his sell by date. 

Canterbury on the other 
band are the local side made 
good, deeply embedded in the 
culture of their south Sydney 
suburb. It is not unusual for 
them to hold Greek or I talian 

family days. They have estab- 
lished a strong link with the 
underclass in Sydney and they 
have carefully exploited their 
underdog position. 

The game was played in per- 
fect conditions In front of a 
capacity crowd of 43,000. With 
just under two minutes to go 
to full-time, Canterbury led by 
17-12. At the last, they suc- 
cumbed to a try by the post 
and with the scores level, the 
game went to over-time. 

It was he art -in- th e-mo nth 
staff and a replay seemed on 
the cards until Canberra's Dar- 
ryl Harrigan, a former New 
Zealand rugby union player, 
squeezed in a drop goal late-on 
to take the game by one point. 

All the talk - in South 
Africa, in Australia and in 
New Zealand - is about how 
rugby union will go open. No- 
one, that is no one administra- 
tor or player, has a blue-print 
that works beyond their own 
country. 

In South Africa, the revenue 
from the provincial games runs 
into millions of pounds. As a 
result, players are tr aining five 
days a week and being appro- 
priately enriched for their 


full-time commitments. 
Nowhere else in the world, 
except perhaps France, is this 
possible. 

In Australia, Nick Farr- t 
J ones, the captain of the 1991 
Rugby World Cup winners, 
suggested that the best solu- 
tion for union, very much the 
poor relation to League, was 
to: “replicate the cricket sce- 
nario. We have grade cricket, 
Sheffield Shield matches and 
internationals. The grade 
cricketer gets nothing, the 
state cricketer receives appear- 
ance money and the interna- 
tionals are paid welL 
“Rugby must do the same - 
club rugby doesn’t have the 
support to pay players; state 
and national rugby does. We 
must find a way to compensate 
the players fairly for their 
efforts hut 1 would advise 
against the players giving up 
their day-job." 

FansJones does not believe it 
would be wise for players just 
to play rugby and not have 
some regular employment. 

David Kirk, the All Black 
captain of the 1987 world cup 
winners, said in Wellington, 
where he works as the adviser 
to the Prime-Minister, Jim 
Bolgen “The change in empha- 
sis in the game where players 
are seeking payment has 
brought a greedier, less intelli- 
gent player into union. 

“Too many of our current 
squad are unemployed or 
euphemistically employed by 
unions or self-employed work- 
ing somewhere in the so called 
sports business." 

Last Saturday, I watched 
quite the best game of rugby 1 
have seen since the All RaHtw 
demolished London at Twick- 
enham a year ago, when I 
attended the Auckland versus 
Otago match in New Zealand. 

The score, 46-30 to Auckland, 
belies the quality of the skills 
on show. This was, I was told, 
how Auckland, last season’ 
champions, have been playing 
for three seasons and is the 
legacy of a previous coach, 

John Hart 

I was fortunate to arrive in 
time ft> the NZRFU Council's 
vote to decide on who would 
coach the All Blacks for next 
year’s world cup. 

Laurie Mains, the incum- 
bent, having lost an unprece- 
dented four out of six Tests 
this season was returned by 11 
votes to eight Poor John Hart 
was defeated for a third time 
and will not stand a gain 
The debate about the 
“coach" has dominated the £ 
news for three weeks and the * 
decision to re-appoint Mains 
became the lead story for the 
1 pm, 6pm and late evening 
news programmes on all three 
TV networks. 

That night, I saw a piece of 
graffiti.' “To win the world cup 
to ’gs, NZ needs a coach not a 
Lawrie.” But do not write off 
New Zealand yet 


i 

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FINANCIAL TIMES 


WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


WEEKEND FT XV 


BOOKS 


H 


arti's first leader. Jea n- 
Jacques Dessallnes. 
said: “Pluck the chicken 
.-as lent as it does not 
successors have been 
enthusiastically following his 
advice for 190 years. 

That the chicken is now hardly 
worth plucking is not die achieve- 
ment of Haiti’s corrupt leadership 
alone, however. As US troops once 
more land on Haitian soil, it is 
worth remembering that 
ewy foreign intervention in this 
natio n’s history has ended in 
recrimination - for both sides. 

For the'US, which sent gunboats 
into Haitian waters, two dozen 
times between 1849 and 1913 and 
occupied the country for 19 years 
this century, Haiti bas been me of ' 
the most troublesome countries in 


Crisis in the Caribbean backyard 

Stephen Fidler on intervention, ambivalence and recriminations on the island of Haiti 


its Caribbean backyard. 

This book, fortuitously published 
as Hie US prepared its invasion 
force, suggests it will continue to 
be. For those confused by last 
week’s developments, this eclectic 
ooQectian. of essays, documents mh? 
chronology is foil of insight. 

Its editor, James Ridgew ay, i s a 
columnist on New York’s Village 
Voice. He provides two chapters: on 
Haiti’s ruling famili es and the 
extension of Haitian government 
terror tactics to New York. The 


book’s viewpoint is predictably 
politically correct, but the t a rgets 
at which it takes aim - the coon- 
try’s mulatto oligarchy, its drug- 
nmning army and police, the Duva- 
tters and the US government and 
Its agencies - are legitimate. 

While some may want to (Hseard 
the more egregious conspiracy the- 
ories, what comes through strongly 
is the ambivalence at the heart of 
the US government about Haiti pol- 
icy. It is an ambivalence that con- 
tinues even with US troops on 'the 


.. THE HAITI FILES: 

DECODING THE CRISIS • 

* edited by James Ridgeway 

Latin American Bureau £9.99. 

. 243 pages 

ground. Here is current commerce 
secretary Ron Brown, who as part- 
ner in a Washington law Ann rep- 
resented the Haitian government of 
JeaiKHande “Baby Doc" Duvalier 
in the US for the four years untfl 


just before Baby Doc was kicked 

out of the country in 1986. 

The US military’s preference for 
their brothers in uniform - led by 
West Point graduate Lt Gen Raoul 
Cddras - over the poor illiterate 
people who make up the majority 
of mled President Jean-Bertrand 
Aristide’s support, is also clear. 
Last year, when lightly-armed US 
troops were heading to Haiti to 
back an accord to return Aristide 
to the island, a Pentagon spokes- 
man helpfully said: “One shot and 


we're out of there.” Unsurprisingly, 
the government organised a riot by 
armed thugs in Port-au-Prince as 
the US army was to arrive, and the 
troop carriers turned back. 

Now as US generals emphasise 
- the patriotism of C6dras and the 
Haitian military leaders, US troops 
are fanning out through Haw with 
the help of the Haitian military. Yet 
were not these the people the TJS 
was determined to oust mily a week 
ago? If it is the biggest part of the 
problem, how can the Haitian army 


be part of the solution? 

In one chapter, a supporter of the 
Haitian military government 
argues that the man the US has to 
fear most is not Cddras, but police 
chief Michel Francois who runs the 
so-called attaches - thugs attached 
to the police — and is cited as being 
linked to Colombian cocaine bar- 
ons. 

“Michel Francois is sworn not to 
let Aristide come back. You're not 
going to work a deal with him ... 
They [the US intervention force] 
are going to have to kill Francois.” 
FOr a US administration anxious 
not to repeat the mistakes of its 
intervention in Somalia - when a 
witch hunt for clan leader 
Mohamed Farah Aideed ended 
disastrously - this most he a chill- 
ing thought. 




Muddles 
and moral 
certainties 

Anne Appleboum on two curiously 
complementary views of Russia 


H ere we have two 
books. la one, a Daily 
Telegraph journalist 
describes three years 
spent in Moscow, 
reporting on corruption and eco- 
nomic decay; in the other, a 
would-be fascist propounds a nar- 
row vision of Russian economic and 
military superiority, making liberal 
use of aphorism and epigram. An 
odd pair, hut together, John Kampf- 
ner’s Inside Yeltsin’s Russia and 
Vladimir Zhirinovsky’ s little Jfbtk 
Book shed light on one another in a 
curious and unexpected fashion. 

Inside Yeltsin’s Russia is typical 
of its genre, opening with Kampf- 
ner’s memory of student days in 
Russia, and concluding with a fore- 
cast of Russia’s future, hi between. 
Inside Yeltsin's Russia is sometimes 
muddled, occasionally switching too 
quickly from businessmen to politi- 
cians and then back again. * ' 

But it may be that the book's 

INSIDE YELTSIN’S RUSSIA 
by John Kampfner 

Cassell £17.99, 288 pages 

ZHIRINOVSKY: THE 
LITTLE BLACK BOOK 
edited by Graham Fraser 
and George Lancefle 

Penguin £5.99. 173 pages 

structure reflects flje^confudng 
nature of its subject with deadly 
accuracy. Yeltsin's Russia was and 
still is a Russia in which nothing is 
quite as it seems. A business is not 
necessarily business, but might be a 
mafia front; a bank is not always a 
bank, but a means to launder 
money. Businessmen are not neces- ' 
sarQy businessmen, and politicians 
are not necessarily politicians. 

Kampftier writes that “ideological 
differences played a part, but not 
the most significant part, in the 
power struggle that dominated Yelt- 
sin’s first years in power. Politics 
was largely a means to an end, and 
that end was economic control." 
Economic control is a polite way to 
say that politicians were primarily 
interested in self-enrichment, that 
politics were largely about money, 
and that most of what looked like 
political debate was, in fact care- 
fully controlled stealing. 

Take, for example, Karopfner's 
convincing explanation of the 
power struggle between president 
Yeltsin and vice-president Alexan- 
der Rutskoy. Although this struggle 
began in the autumn of 1992 and 
culminated in the storming of the 
Russian parliament a year later, its 
origins lay not in a political diff e r - 
ence, but in a bitter disagreement 
over whose aides and followers 
were stealing the most 


. Rutskoy’s Kremlin office was fre- 
quented by businessmen who 
“would barge in unarm mm red, call- 
ing Mm ‘Sasha’ *tiH giving him 
orders”; yet Rutskoy had a habit of 

c innmmrrng Mg pnH tinal ad v ersari es 

to meetings, claiming to possess 
ffn m pmmijrfn g material about their 

own business deals, and demanding 
favours in exchange for keeping 
quiet IT Rutskoy really was ever 
interested in constitutional issues - 
iivsay. upholding the principle leg- 
islative rule in the battle against 
executive power - he did an excel- 
lent job of con oeaTIng it 
. Yet pot down Kampfaer’s book 
and pick up Zhirinovsky: The little 
Black Book, and all of the confusion 
mflts effortlessly away. True, The 
little Black Book is not quite what 
it appears to be either. Although it 
also looks, on the surface, like a 
classic of its genre, ahnr-frig its epi- 
grammatic format with Man 1 * tmi* 
Red Book and Nietzsche’s collected 
works, it is only a compilation of 
Zhirinovsky's sayings, put together 
by Graham Fraser and George Lan- 
celle, two non-Russians who are 
(not surprisingly) unsympathetic to 
the man and his amHtlmw. ; 

But although in translation and 
surrounded by critical editorial 
comment 'Zhirinovsky's actual say- 
ings are concise, and his i deas are 

clear. 

Are both Yeltsin and Rutskoy cor- 
rupt? Well, says Zhirinovsky, “the 
rally party with dean hands and a 
dear conscience - we are unsullied 
and unmarked by a single drop of 
blood - is the Liberal Democratic 
Party of Russm," the party led by 
Zhirinovsky himself. Do people fed 
economically insecure? Under a 
Zhirinovsky government “some of 
the population will live very well 
because people will have the oppor- 
tunity to work honestly and. after 
that, to enjoy a secure old age." 
Foreign policy is simple too: “Why 
shooid we inflict suffering on our- 
selves? Let others suffer." 

In Zhirinovsky’s speeches all of 
the muddle and moral uncertainty 
which are so evident in Kampfner’s 
account of life in modem Russia are 
swept away- and that, of course, is 
precisely Zhirinovsky’s appeal to 
the “lumpenized masses”, in whose 
name he claims to speak. 

His star may already be fading, as 
even the “lumpenized ma sses” learn 
to see through him, but Zhirinovsky 
will undoubtedly be followed by 
others who see the value of dear 
speech and ideas. While Yeltsin 
dithers, hiring more old appara- 
tchiks to work for him, others with 
better intuitions about what Rus- 
sians want to hear will, for better or 
for worse, capture the public’s 
attention. Having read these two 
books, no one would find it difficult 
to understand why. 



Tito Capuchin Cwrmtaiy hi Roma, photographed la 187(h one of 366 axtreonfnwy images torn The Body: PhotoworkB of the Hunan Form* by WMam A Ewing (Thames and Hudson, £1895, 432 paga^- The pictures 
- beauflftd, Karra and p o m e — a a bfutal - apan Victorian erode a. medkal photograph*. HM— pto-opa, aarty a nt hro pological studies and a m ree iat explorations of nude portraiture. 


Fiction/Carlo Gebler 


Thwarted dreams of perfection 


S ignals of Distress is the 
fourth novel from the high- 
ly-talented Jim Crace, but 
the first which could be said 
to be realistic. The setting is Wher- 
rytown. a miserable fishing vQtege 
on the Cornish coast, and the time 
is the 1830s. 

Kntpr an American sai l in g ship 

with a slave aboard, and a London 
freethinker and emancipationist, 
Aymer Smith. The impact of these 
arrivals on the chapel culture of the 
village leads, inevitably, to conflict 
Aymer Smith is the novel’s ful- 
crum. His utopianism is a fraud; 
everything he does - while ostensi- 
bly for others - is in foct done to 
enhanc e his self-esteem. Vanity and 
self-love lie at the root of his deeds. 

The author’s portrait of this spin- 
dle-shaped, boring windbag, who 
sines on his fellow guests as they 
make love and is totally and irre- 
deemably unlovable from start to 
finish, is fantastically achieved, a 
tour de force. It is also strangely 


unsatisfying because Aymer at the 
end knows nothing more than be 
did at the be ginning . 

In short, Aymer is a cipher who 
belongs in the canon of revolting 
men to which the writer Ian 
McEwan and the film maker Peter 
Greenaway, for instance, have con- 
tributed many examples. Ostensi- 
bly, their creations, who are men at 
their very worst, are intended to 
satisfy a liberal, pro-feminist con- 
stituency: in fact they are anti- m ale. 

After 270 pages in Smith’s com- 
pany, I was left with the feeling 
that this horrible character, and the 
fact of having created him warts 
and all, is ultimately less a com- 
ment on an autonomously created 
character than an intended reflec- 
tion of the author’s integrity. But 
putting aside this reservation, there 
is no doubt that he can write bril- 
liantly and move his enormous cast 
around with formidable panache. 

Some of the themes of Crace’s 
novel - notably that mankind’s 


SIGNALS OF DISTRESS 
by Jim Grace 

Wring £15. 

277 pages 

FREELAND 
by JJD.F. Jones 

Sindair-Sievenson £14. 99. 

293 pages 


imperfect nature will always sabo- 
tage aspirations to utopianism — are 
explored in JD.F. Jones's first novel 
Freeland. Both works are also mer- 
cifully free of the trickery and ver- 
bal showing off so common in nov- 
els today. 

The Freeholders of the title are a 
motley band of idealists who intend 
to settle in the Kenyan highlands 
and establish an ideal and just soci- 
ety, crime free, with collectively 
owned property. 

But to get where they want to go 


they must first pass through Laura, 
an island off the East African coast 
and an anripnt lan dfall for mariners 
on the Indian Ocean. The place is 
half-Arabic, half-black, civilised, 
corrupt, corrupting and every bit as 
confusing and dangerous as the 
European cities which they have 
left behind. 

As the narrative unfolds it 
becomes clear that our dreamers 
are hopeless at holding onto their 
beliefs amid the whore houses, the 
transvestites, and the slave traders 
of Lanru; they become ensnared in 
local plots and most never even get 
to Africa proper. To point up the 
unbridgeable gap between the 
dream and the sordid facts of 
human nature, every chapter begins 
with a quotation from the silly Uto- 
pian novel of the movement’s 
founder. 

Freeland is part of the long tradi- 
tion in literature whereby Euro- 
peans dumped in tropical climes 
behave foolishly, dangerously or 


criminally and thus reveal that 
their civilisation is only deep. 
The most s ublime example of this 
form is Lord of the FKes. 

The cast in Freeland is very large, 
for besides our 20 or so settlers, 
there is also the local Arabic ruler 
and his clan, the local British 
administrator, and an Englishman 
of dubious provenance who joins 
the visitors in order to spy <m them. 
The author does not always move 
them about gracefully. He is also 
somewhat inclined to salt the 
letters of his characters with asides 
to the effect that everything is fall- 
ing apart, rather than revealing this 
foci 

Yet there is much pleasure in this 
book for readers who like their fic- 
tion straight up, unadorned, with- 
out linguistic flights of exhibitionist 
fancy and no gratuitous mise en 
seine designed to expose either the 
reader's queasiness or the author's 
bravery in reporting on the disgust- 
ing. A decent read. 




E noch Powell courts 
controversy. That is 
no bad thing, except 
that he seems to have 
a Quixotic talent for picking 
fights he is bound to lose 
badly, in this book - a new 
tr ans lation, with commentary, 
of the gospel according to St 
Matthew - he does so by 
returning to his roots as a clas- 
sical scholar, to tilt at the 
windmills of New Testament 
scholarship by proposing a rad- 
ical new thesis about the Gos- 
pels. 

There are a number of 
accounts oT the life and teach- 
ings of Jesus, of which four 
. were made official by the e arly 
Church. One of these, the gos- 
pel called “John", is a sophisti- 
cated theological work written 
much later than the others. 
The others, known as the ^yn- 
optic" gospels, are more histor- 
ical in character, ff the vehe- 
ment world of biblical 
scholarship has a standard 
view about these writings, it 
goes somewhat as ftUpvfc 
The earliest is Marl i ■ ^ 
was written in the late fifties 
AD. in Rome, perhaps under St 
Peter's supervision. It seems 
originally to have contained 
neither the nativity ^resur- 
rection stories. Itorhs pur 
pose was to persuade Roman 


A tilt at the 
New Testament 


converts that Jesus's crucifix- 
ion - a Roman punishment for 
terrorism - was the result of a 
plot by Jewish leaders, who 
were too afraid of the populace 

to stone him for blasphemy. 

“Matthew” and “Like”, the 
standard view continues, were 
written independently of each 
other at least two decades after 
“Mark”, and were based both 
on “Mark” and a separate 
source of anecdotes and say- 
ings, now lost which scholars 
call “Q"- 

Any discriminating reader of 
the gospels will notice farther- 
points. “MarkT is a crude work, 
a record of miracles and deeds, 
with little of Jesus’s teachings 
in them. “Luke” is a skflfal 
literary work, whose author 
explores motivation in hts 
characters and crafts a coher- 
ent narrative. “Matthew” is 
clumsy, a poorly edited compi- 
lation from unordered and 
overlapping materials. But 
“Matthiw” has the virtues of 
its vices; alone among the . gos- 
pels it records great tranches 


THE EVOLUTION OF 
THE GOSPELS 
by Enoch Powell 

. Yak University Press £16.99. 

224 pages 

of ethical teachings, as if its 
wr i ter (or compilers) had rim- 
ply transcribed much of “Q”. 

Powell’s controversial dis- 
ruption of this standard pic- 
ture is that “Matthew" is the 
original gospel, and “Luke” 
and “Mark” both derive from 
it and from lt alone. Matthew 
itself is a composite work, Pow- 
ell claims, consisting of an 
early document with later 
additions and changes. The 
early document justifies 
Peters mission to the Gentiles, 
the later changes were made to 
please Peter’s opponents, the 
Christians who wished to 
remain within Judaism, in 
thus witnessing doctrinal 
struggles in the early c h urch, 
says Powell, Matthew is 
uniquely Important 


TO establish his theses Pow- 
ell uses techniques of textual 
criticism. Although singularly 
brief his argument cannot - 
alas! for it is fan to delve 

among such arguments - be 
rehearsed here. But one does 
not have to be a Greek scholar 
to see that it foils. For every- 
thing Powell says is con si stent 
with the standard view that 
"Matthew” and “Luke” derive 
from “Mark" and “Q" - with 
Luke perhaps adding some- 
thing of his own. 

On the second thesis - that 
“Matthew" is a heavily 
emended text - Powell is less 
do gmatic, and more plausible. 
There is little doubt that the 
gospels were doctored as 
Church politics required, and 
“Matthew" seems worst 
affected. But this too is consist- 
ent with the standard view; it 
would only be significant if 
“Matthew” were indeed the 
first gospel. 

Powell ignores the standard 
view, and he also ignores an 
even more important matter, 
which is that the real first gos- 
pel is actually Paul’s epistles, 
written - the standard view 
again - two decades before 
“Mark” 

A.C. Grayling 


S ocrates has a great deal 
to answer for. Thanks 
to him, and to follow 
ancients Plato and 
Aristotle, the west has got 
stuck in an adversarial way of 
thinking, in which creativity 
has been stifled and destruc- 
tive criticism has flourished. 

In Parallel Thinking; Edward 
de Bono suggests that we put 
the last 2f09 years behind us 
and start looking at the world 
in a new way. No longer 
should we be preoccupied with 
truth and falsity, definitions 
and Judgments, but we should 
thin if in terms of possibilities, 
laying before us a number of 
parallel Maas, using ' them to 
design a way forward. 

This is his boldest attempt 
yet to change the way our 
minds work. The deluge of 
books from de Bono over the 
last 30 years has introduced 
the world to lateral thinking, 
to water logic and to a large 
number of other thinking tech- 
niques. This tinv> he is doing 
s omething more radical; sug- 
gesting that we throw out our 
entire thinking machinery and 
adopt his ways instead. 

To take such a bold step, we 
are going to need some per- 
suading. He tells us that west- 
ern thinking, which assumes 
conditions are stable, is 


Judgment in 
the balance 


increasingly ill-equipped to 
deal with a changing world. He 
rfafiTw it encourages us to be 
destructive and discriminatory 
in our habits and institutions 
(be just stops short of making 
Socrates responsible for rac- 

PARALLEL THINKING 
by Edward de Bono 

Wang £16,-240 pages 

ism, but does blame him for 
the pointlessly adversarial 
nature of the British parlia- 
mentary system). Western 
thinking also makes us com- 
placent, because we build 
everything around the status 
quo; and arrogant because we 
view the truth as absolute. 
These tendencies mean we can- 
not accept that the whole sys- 
tem is flawed. 

Instead, if we could only stop 
viewing events in terms of is/is 
not and aiways/never and con- 
centrate an sametimes/usually/ 
maybe the world will open up. 


and new ideas and initiatives 
will fall into our laps. De Bono 
is not so unrealistic to assume 
that adults can make the tran- 
sition easily or quickly. He 
insists that all schools should 
teach these new ways of think- 
ing to children, that govern- 
ments should set up special 
thinking departments, arid that 
the United Nations should 
even establish an Office of Cre- 
ativity. 

De Bono is right to point out 
the dangers of a system that 
relies excessively on criticism. 
He is right that new ideas need 
encouragement, they do not 
just happen. It may also be 
true that we are excessively 
preoccupied with putting 
events into boxes, rather then 
viewing them from all sides, 
and wondering what they lead 
to. 

Yet he overstates his case. 
As ever with de Bono, the 
whole' is produced with breath- 
taking arrogance. The sub-title, 
"From Socratic to de Bono 


Thinking”, gives a flavour of 
what is to follow. Every one of 
the footnotes refers to his own 
works, and the text is written 
in a style of one that brooks no 
opposition. This Is made 
harder to swallow by the fact 
that parallel thinking is mean t 
to be about humility and alter- 
natives. 

There seems no reason to 
view the Socratic and “de 
Bono” methods as rivals. Imag- 
ine the chaos if for every 
minor thought we had to lay 
out all the possibilities in par- 
allel and design a way forward. 
For the vast majority of our 
thoughts our accustomed 
machinery suits us well, mak- 
ing it possible to get through 
the day at all. Certainly we 
should try to be less inflexible 
in our judgment; but Socrates 
would hardly have had a prob- 
lem with that 

Lucy KeUaway 


NEW AUTHORS 

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All SUBJECTS CONSIDERED 
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Reagloas, PW*y. CMfcms 
AUTHORS WDRLD4MOE INMTED 
write on sbjo vow mamjscwpt to 

M INERV A PRESS 

lauanmiiiuaBMwiia 


\ 






XVI WEEKEND FT 


FINANCIAL TIMES WEEKEND SEPTEMBER 24 /SEPTEMBER 25 1994 


★ 

ARTS 


Entertaining road to hell 

Martin Hoyle enjoys ‘Don Giovanni and ‘Eugene Onegin ' in Belfast 


N ature, or rather town 
planning, has done 
Belfast’s Grand 
Opera House no 
favours. Next to the 
headquarters of the Ulster Union* 
ists and across the street from the 
Europa Hotel, the charming theatre 
has been the innocent bystander in 
more than one bomb incident aimed 
at its neighbours. 

Last Friday opera returned to the 
theatre after postponement through 
bomb damage. Two Johns visited 
Belfast that day: Major, hill of good 
intentions, and Mozart's lascivious 
Sevillian who took the less well- 
paved but more entertaining road to 
helL Don Giovanni was played out 
in the unusually intimate splendour 
of a fin-de-sticle interior, at first 
glance a conventional Frank Mat- 
cham froth of gilt, cream and red, 
but with Intriguing eastern decora- 
tive motifs: Moslem sages jostle 


trumpet-playing cherubs on the ced- 
ing, cartouches frame Hindu gods, 
and elephant-heads form the capi- 
tals of pillars. 

This production is the result of 
cooperation between Opera North- 
ern Ireland and Bath and Wessex 
Opera. There were reportedly some 
technical hitches at the first night 
in the west of England, and in Bel- 
fast the odd off-stage crash and on- 
stage flash bespoke tire occasional 
gremlin. But Roman Terleckyj’s 
production is as tithe and swift as 
its young cast David Myerscough- 
Jones’ set is dominated by a huge 
grille that parts, ringing changes on 
the basic theme of a closed-in soci- 
ety, with visual allusions ranging 
from Piranesi-like nightmare pris- 
ons to the Marat-Sade spectacle of 
panicky p easan ts cl am berin g up the 
bars in an effort to escape the 
avengers in the ball scene. 

To judge by both Giovanni and 


the following night's Eugene 
Onegin, there is no shortage of good 
baritones today. The Danish Johan- 
nes Mannov was a plausible philan- 
derer and a stylish Mozartian: his 
honeyed opening of “La d darsm la 
mano" with the sweet-voiced Zer- 
tina of Yvonne Barclay turned it 
Into a real seduction. Erie Ash- 
craft's Ottavio was much less wim- 
pish. than usual, Christopher 
Purves' light-voiced ban tonal Lepo- 
rello had the stage commuzucatiro- 
ness expected from an ex-Wallban- 
ger (as in Harvey and the ditto), 
John Hall's Commends to re was 
young and vigorous. 

Musically Roy Goodman directed 
a fleet performance from the Ulster 
Orchestra. Most stylish of all was 
the Elvira of Elizabeth Gale, once a 
memorable Zerlina. There have 
been fuller voices in the role, but 
she knows what the character and 
Mozart are about. 


If Dim Giovanni was convention- 
ally enjoyable, Onegin had much in 
it that reminded the English visitor 
of Pountneyesque ideas from END'S 
glory days. A little girl, Alice-like, 
wanders through the action: the 
child Tatyana was? The innocence 
that never quite died? Invisible, all- 
seeing, she firmly shuts a book over 
the grieving Onegin, as if the char 
acters' destiny had been already 
decided in the past. Between scenes 
a wind whistles across the stage, 
domin ated by the autumnal crim- 
son of Virginia creeper. There may 
be a tendency to think of Pushkin's 
“lyric scenes" as anticipating Chek- 
hov. However, only 48 hours after 
seeing a stage adaptation of Emma I 
was struck how much Tatyana and 
her circle had in. common with Jane 
Austen's small, intensely-felt world 
of emotional ripening and develop- 
ing moral awareness. 

The later romanticism is all 



Seductive voices: EUzabafl) Sale and J o ha nnes Mannov bi ‘Don Giovanni' 


Tchaikovsky's own, and the Roma- gant dancers. As a way of dramatis- 
man production team t director Ion ing an opera that can unfold slowly 
Caramitru, designer Maria Miu) on stage, whose conflicts are Inter- 
play up the element of regretted . nal and psychological, the produc- 
opport unities, vanished hopes, tion strikes a happy and tactful bal- 
unrecapturabie youth. The St ance between theitricality and the 
Petersburg ballroom, is full of introspective beauties of the score, 
ghosts - the tired nurse. Olga. The American Kimm Julian is a 
Ma dame T-arina , the dead Lensky, mature Onegin, a stiff avuncular 
his pistol raised as la that fatal duel figure, perhaps a foretaste of one of 
- pass Him wraiths through the ele- Henry James's more icy creations. 


finely sung. Intelligently acted. 
Melanie Armitstead's dignified bear- 
ing and veiled vocal quality were 
better with the grande dame than 
the Impulsive girl. Mark Beudcrt, 
another American, provided Lensky 
with Itaiianate tone, after initially 
uncertain intonation- and made a 
handsome young poet, Kate McCar- 
ney. a glamorous Oiga, Colette 
McGftbon’s loving Larina and Enid 
Hartle’s experienced Nurse filled 
the lesser roles from strength. 

Robust playing for Kenneth Mont- 
gomery was seconded by the splen- 
did ONI chorus, amazingly on ama- 
teur body. This recalls Welsh 
National Opera, originally built 
around an amateur chorus, but 
WNO was able to grow through the 
backup of English besides Welsh 
touring. Dreams of one central 
organisation providing opera for 
Belfast, Dublin and Cork are still “a 
political hot potato". Meanwhile 
ONI prepares a touring version of 
Oon PasQuale, looks forward to EH- 
sir and aspires to next year's double 
of Boh&me and Cunning Little 
Vixen. As the company admits, Jan- 
afiek is a box-office risk, but “it's 
the sort of opera that people can 
come to and fall In love with". 


A lingering 
gaze into 
the well of 
loneliness 

Alastair Macaulay on Heilman's 
theatrical exploration of lesbianism 



Tragedy of unjust scandal: Harriet Walter and Clara Higgins in The Ctrikfran’s Hour* 


Off the Wall/Antony Thorncroft 

British art set 
fair for revival 


H ow wonderful: a new 
production of an old 
play that - despite 
(or rather because of) 
the general excel- 
lence of its acting and staging - 
sends us out talking about the play 
itselt And how wonderful- at lart, a 
play about homosexuality (after a 
million other plays about homosex- 
uality we have seen this year) that 
is neither agitprop nor sentimental 
nor evasive. The play, i-Hlian Hell- 
man's The Children’s Hour, will be 
60 years old this November, and 
Howard Davies's production makes 
us see that it works on. three levels. 

On level one, it Is about the 
unjust scandal caused by accusa- 
tions of homosexuality among 
teachers - unjust because those 
accusations are unfounded. This is 
the level that almost any audience 
can take, and Heilman was able to 
bring it to the movie version. These 
Three (1936), for which she wrote 
the screenplay. Karen Wright (Har- 
riet Walter) and Martha Dobie 
(Clare Higgins) are young women 
who run the school for girls they 
have founded. Mary (Emily Wat- 
son), a peculiarly evil 14-year-old. 
wrecks the school, to which her 
grandmother (Gillian Barge) has 
sent her, by accusing them of lesbi- 
anism. The accusations also blight 
the engagement of Karen Wright to 
the pleasant Dr Joe Cardin (William 
Gaminara). 

On the second level, it is about 
the unjust scandal caused by homo- 
sexuality among teachers - unjust 
because homosexuality is not a 
crime or sin that should cause 
social ostracism, even when one of 
the teachers finally admits to, or 
discovers, homosexuality in her 
own thoughts. This is the level that 
could not bo brought to the screen 
until 1962. . Martha Dobie is the one 
who confesses lesbian desires. Feel- 
ing that she has brought ruin upon 
everyone, she shoots herself. 

And on the third level, it is about 
the difficulties of repressing or 


admitting homosexuality in oneself. 
This is the level that has seldom 
hitherto been seen os a major 
theme in The Children's Hour. Hoe, 
however, we not only see it In the 
character of Martha; we also see it, 
at any rate in potential, in Karen - 
who has been delaying the mar- 
riage, who finally sends Joe away, 
and who almost lets Martha kiss 
her “that way”. 

Later, when Martha is dead and 
when Mary's grandmother (not 
knowing of the death) comes to 
start righting the wrongs that she 
has done the two teachers. Karen 
has moved beyond the issues of 
right, wrong and injustice. And, 
when she is then left alone, she 
mounts the stairs to the room 
where the dead Martha lies. It is at 
least possible that Karan means to 
join Martha in death; or that she 
wishes now at last to be united with 
her in desire. These are only possi- 
bilities, I stress. A contrary option 
is also possible: that Martha only 
thinks herself a lesbian and kills 
herself because of the intolerable 
pressure of the situation; and that 
Karen’s final ascent of the stairs is 
simply her wish to repent her own 
homophobia. 

The beauty of this production Is 
not that it forces us to think wor- 
thy, glib thoughts about the evils of 
repression, but that it brings these 
and other ambiguous interpreta- 
tions to the surface. So much so 
that Heilman, as never before, 
seems to be kin to Henry James. In 
Mary's disturbing influence on her 
educators and other children, one 
thinks of the evil things known by 
the child Miles in The Turn of the 
Screw (and here Martha Is also the 
victim of a tura-of-a-screw situa- 
tion); in the triangle of Martha-Ka- 
ren-Joe, one thinks of the Ollve-Ver- 
ena- Basil triangle in The 
Bostonians. 

Let me not sound carried away. 
The Children's Hour is. on the 
whole a melodrama. Its first act is 
far too diffuse, and Martha’s third- 


act revelation awkwardly sudden. 
But the play is given here, in 
almost all respects, with such fine 
fluctuations of tone and mood that 
it keeps going beyond melodrama; 
and Karen's final solitude - 
stressed in this production more 
than Heilman's stage directions 
suggest - approaches tragedy. 

If I have left little space to praise 
the performances. I hope my praise 


is already implicit. It is easier to 
cite the production's flaws. Jason 
Carr has provided film-type music 
to underline the big moments: can 
this please be cut? Some American 
accents have minor problems. 
Alison Fiske’s account of the silly 
old aunt applies too much vocal car- 
icature; Emily Watson does not sug- 
gest the most disturbing or most 
real aspects of Mary's evil and 


l 


Mat* UuT 

spoilt nature. However, to watch 
Harriet Walter, Clare Higgins and 
Gillian Barge in their roles is a rare 
privilege. There are a thousand tell- 
ing details in their performances, 
and all of them work together to 
make the stage world more absorb- 
ing. 


In repertory at the Lyttelton Thea- 
tre, Smith B ank. 


T he organisers of the 20th 
Century British Art Fair, 
which opens at the Royal 
College of Art on Wednes- 
day and runs until Sunday, have 
pulled in the Big One. London’s 
leading modem art dealer, Leslie 
Waddington, has agreed to take 
part He has withdrawn his pro- 
nouncement that London is artisti- 
cally dead and will show works by 
Henry Moore, Peter Blake. David 
Hockney, and more. 

Efts participation sums up a 
revivalist mood. The fair has grown 
to almost 50 exhibitors and concen- 
trates on British art which shows 
20th century progressiveness with- 
out lapsing into the conceptual 
avant-garde. Another important 
newcomer is the New Art Centre, 
with sculptures by Hepworth, 
including “Ascending Form (Glo- 
ria)” at 9300,000, Frink and Arnri- 
tage. 

The loan exhibition consists of 
paintings from the Financial Tunes 
collection. This is the first time 
works from, the collection have 
been on public view. 

The fair began in 1988, near the 
peak of the market, and was an 
instant success. One dealer sold a 
painting by SJ. Peploe, the Scot- 
tish Colourist, off his stand to a 
stranger for £275,000. This year 
Duncan Miller is offering a very 
fine Peploe, indeed the largest he 
painted, "Interior with seated girl*’, 
for £175,000. 

Julian Hartnell, who is showing 
"kitchen sink” artists like John 
Bratby, reckons that many prices 
are now only 50 per cent of the 
levels six years ago. Private collec- 
tors can now afford to buy again 
and anyone who dreamed of own- 
ing paintings by the likes of Wyn- 
dham Lewis, Carol Weight, Patrick 
Heron, Stanley Spencer, Graham 
Sutherland, Ivon Hitchens, Augus- 
tus John, in feet all the established, 
names of the century, should hurry 
along. 

★ 

It is a dumb arts organisation 
which is not launching a re-build- 
ing appeal in the hope of attracting 
National Lottery money. Most start 
their projects at film and then add 
a nought, or two. So it is refreshing 
that Leighton House in Kensington, 
the home of the High Priest of Vic- 
torian art, Lord Leighton, is only 
seeking £400,000. 

It wants the money not to build, 
but to return to the past, to recre- 
ate the garden, the grand Arab 
Hall, and the artist's studio as they 


might have looked on some mythi- 
cal day in the 1880s. Lord Leighton 
has just popped out and you idly 
wait in his home. His easel, 
brushes and props are all in place 
in the studio, and yon can just 
catch the conversation of his des- 
erted supper guests, murmuring 
away round the dinner table. This 
Is strictly heritage restored. 

With Sir Andrew Lloyd Webber, 
a Leighton lover since his school 
days, beading the appeal it stands 
little chance of failing, and the 
house should be ready for even 
more visitors. (H already gets 42,000 
a year) by January 1996, when 
there Is a big Leighton show at the 
RA to celebrate the centenary of 
his death. 

It would be interesting to open 


Prices are only 50 
per cent of the levels 
six years ago 

other artists studios in the neigh- 
bourhood. Val Prinsep, G.F. Watts, 
Marcus Stone, William Burges 
(with a particularly fine Pre-Rapha- 
elite interior) and Lake Fyldes, all 
lions in their late Victorian day, 
lived within pot throwing distance. 
Their homes are now occupied by 
such contemporary luminaries of 
the cultural scene as Led Zeppelin 
guitarist Jimmy Page and cine- 
matic foodie Michael Winner. 
h 

Once again British programme 
makers have triumphed at the Prix 
Italia, Europe’s oldest broadcasting 
festival. Standards among the 77 
television programmes competing 
for the three prizes have been 
higher in 1994 than at any time In 
the past 20 years. Yet the BBC won 
the main prize for drama with The 
Snapper, Roddy Doyle's sharp but 
hilarious story about teenage preg- 
nancy in a rumbustious Dublin 
family; and for music with Strange 
Fish, the television version of Lloyd 
Newson’s remarkable modern bal- 
let danced by the DV8 company. 
Furthermore, in the documentary 
category - the only one they did 
not win outright - the BBC won 
the special prize with Black Daisies 
For The Bride, a harrowing bat 
undeniably original programme 
dealing with Alzheimer's disease. 
Prix I talia and special prizes are 
each worth 15m lire (£8,000). Chris- 
topher Dunkley will report in fall 
in Wednesday's television col umn . 


The Mikado returns 


E nglish National 
Opera's all-white 
Mikado is one of the 
company's hardiest 
productions. Wednesday’s wel- 
come performance marked the 
opening of its sixth run since 


It was new in 1986 - David 
Bitch once again reviving Jon- 
athan Miller’s original - and 
everything in the Grand Hotel 
setting came np shiny and 
slick. The cast with one excep- 
tion ail returning to their 


roles, is now more more confi- 
dent than ever, though this 
inevitably means some loss of 
spontaneity. Still, most of it 
remains very fanny, not least 
Ko-Ko's amazingly topical Lit- 
tle List, which now includes 
references to the Hecklers, Jef- 


28th September - 2nd October 



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frey Archer, Mrs Bobbitt, and 
Mr and Mrs Michael Jackson. 

Indeed, Richard Soart’s 
Pythonesqne Ko-Ko, with his 
gallery of accents and 
twitches, remains the star of 
the show. Lesley Garrett's 
bubbly Yom-Yum - she sings a 


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ART GALLERIES 

SPINK. A PASTORAL UFH i M MirB OTU 
An wMWUon of prtfflB and Waitings by 
Robin Tanner [1904-1388). IStti-Mth 
SefllemWr. Mon-Td. 9-130, 5 Khg Street 

London 3W1 

HARIBOROUQH RNG ART 0 Abomado 
St W1. 0J1 B29 Stfli. Works txi wor by: 
AillUia. Auatbach. Branham, GampbaO. 
Conroy. Davto. Jcckfin, KM. total. Uacon, 
Ounon. Prarcro. Patrf and Hp* UnU 30 
Sept. BPfil 10*30. an 10-1230. 


sensuous “The son whose 
rays" - and Bonaventnra Bot- 
tone's coy Nanld-Poo (whose 
lyrical singing matches his 
twinkling characterisation) 
are not far behind in the show- 
stealing stakes. Anne Collins 
repeats her vengeful virago of 
a Katisha. Richard An gas his 
preening but absent-minded 
Mikado, Ian Caddy his 
Pooh-Bah, and Arwel Huw 
Morgan the plos-fonred clergy- 
man Pish-Tush. Completing 
the three little maids from St 
Trinians' are Ethna Robinson 
(Pitti-Sing) and - new to the 
cast - Mary Plazas (Peep-Bo). 

Sian Edwards, who has 
raised critical eyebrows for 
her seemingly ar ms-length 
musical directorship of the 
company, here maintained a 
firm grip on the score. She let 
the music sparkle, kept ensem- 
bles tight, and moat impor- 
tantly, since ENO’s resolve on 
tiie language issue seems set 
to waver, allowed us to hear 
almost every word. There are 
only five further performances 
of The Mikado tins season, not 
to be missed. 

John AUison 


Sponsored Ity Schroder Invest- 
ment Management and SG 
Warburg pic. 


M anfred Richer, 
founder/propri- 
etor of the 
Munich record 
label ECM, is not the sort of 
person to celebrate a 25th anni- 
versary with boxed set compi- 
lations or retrospectives. Never 
one to respond to the commer- 
cial mores which preoccupy 
others in the music business. 
Eicher even claims not to pay 
any real attention to how well 
Ills recordings sell. An auto- 
cratic and Idiosyncratic indi- 
vidual who controls every 
aspect of each recording, he 
says that to him, “popularity 
and appreciation is a ride bene- 
fit, almost". 

Started by Eicher as a jazz 
label in 1969, Editions of Con- 
temporary Music has become 
home to hugely successful art- 
ists as well as harder-to-clas- 
sify fringe IntrnmentaUsts. 
Helped in large part by the 
runaway success of American 
pianist Keith Jarretfs 1975 live 
recording, The ESln Concert 
which has sold two and a half 
minion copies, more than any 
other solo piano work, Eicher 
can afford to record with less 
commercial artists. In between 
refined jazz masters such as 
John Abercrombie, Dave Hol- 
land and Paul Motian, the ECM 
catalogue lists the diverse 
sounds of cellist David Darling, 
violinist Shankar and the Afri- 
can drums of the Moire Orches- 
tra among others. 

This mix of reliable sellers 


Jazz/Garry Booth 

A label for 
success 


and “outside" improvisation is 
constantly renewed. The 
immensely popular Norwegian 
saxophonist Jan Garbarek 

records for Eicher as does the 

successful “new” classical com- 
poser, Estonian Arvo Part But 
so does Heiner Goebbels, 
whose latest CD has the citi- 
zens of Boston reciting Edgar 
AUen Poe's Landscape with 
Argonauts on the sidewalk. In 
Twilight Fields Stephen Micus 
alternates between flower pots, 
a Bavarian zither and some- 
thing called a “nay”. 

Eicher has produced virtu- 
ally every one of the compa- 
ny's 550 recordings and, 
though he dismisses the idea, 
it shows. A wilfully solitary 
person outside the studio, 
Eicher cites film makers 
Godard, Tarkovsky and Berg- 
man as his influences inride ft. 
He is attracted by the bleak 
beauty of northern Europe and 
always records In the same 
Oslo studio. This aesthetic 
taste is carried through to the 
miring desk. 


If there is such a thing as the 
ECM sound, U Is characterised 
by judicious use of reverb and 
the stark clarity of each instru- 
ment’s voictngs. Detractors say 
it is old; someone once 
described It as the most beauti- 
ful sound next to silence. 
Explaining his studio tech- 
nique, Eicher, who is himself a 
conservatory trained violinist, 
says bluntly: “I seek only aus- 
terity and discipline. I da not 
impose a ‘sound’: the direction 
comes from the music itself." 

In the ECM New Series, 
which concentrates on compos- 
ers from Thomas Tallis to 
Steve Reich, Eicher says he 
has tried to bring some of the 
spontaneity and dialectic of 
jazz to written work. Part's 
compositions, which Eicher 
describes as "the music of 
slowly beating wings,” (Mise- 
rere in 1991 and Tabula Rasa In 
1984) have continued to sell 
especially weLL Now Eicher 
seems set for another success, 
this time with an unlikely 
experiment in early music. 


Etcher’s latest offering, Ofjl- 
dum (ECM New Series 1525 446 
369-2), sets Garbarek’ s distinc- 
tive yearning saxophone sound 
across the hymnal early music 
of a vocal quartet, the Hilliard 
Ensemble. Compositions on the 
album are from the 13th to 
I5th centuries and explore 
chants, early polyphony and 
Renaissance motets. After 
some initial confusion over its 
proper category, Offktam has 
entered the classic FM chart at 
number two and now promises 
to be as big a hit with the 
people who bought into monks 
chanting as it is with con- 
firmed ECM aficionados. 


Garbarek and the Hilliard tour 

nevt month 



3L. 


HOSPIC 

BAREST. HACKNEY, LON 
Qnrfrlfi.Ni.lH] 

So many arrio 
strangers, meaty 
and tearful of the i 
They gladly stc 
Mends, secure i 
embracing warmth, 
and cherished to \ 
with the help oi 
gnxe/ulgllh 
l thank you hii 
on their behc 

Sister Supe 






ANCUL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


WEEKEND FT 


XVI! 


ARTS 


V 


X" 


will 

§?###« 


■Betttohem Vase Sun Life 1 . 1933, by Cnurfe Aitehison 


Damned by lack of controversy 


William Packer lambasts the judges of the new Jerwood Prize for their unadventurous choice 


I sboaid have known it 
would happen. If only 
on the principle that if 
things can be got 
wrong, they will There 
is no such thing as a racing 
certainty, even of failure, as 
we should know from the 
example of the splendid 
Moonax, coming from the back 
of the field the other day to 
take the St Leger at 40:1. 

A couple of weeks ago I 
wrote In encouraging terms 
about the new Jerwood Paint- 
ing Prize - worth £30,000 to 
the winner - Just as the work 
of the six finalists went on 
show. While not intended as a 
direct reproach and rival to 
the Turner Prize, it fills a gap 
in the programme, being con- 
fined to painters, of which we 
have in Britain an Inordinate 
number, and whom in recent 


years the Turner selectors 
have largely ignored. The Jer- 
wood is also open to artists of 
all ages - Z mistakenly said 
the Turner age-limit is 40 
when in fact It is 50. 

And now, in Craigie Aitcb- 
ison, we have the first winner, 
and I can hardly believe the 
judges could have done such a 
thing. For Aitehison is at once 
the most unexceptionable and 
unexceptional of the bunch, 
neither unpopular nor unsuc- 
cessful. It is fiie safest and, as 
I can now see with hindsight, 
the most predictable of results. 
By this very lack of contro- 
versy and adventure, the prize 
is damned. 

Given the field the judges 
bad chosen, here was a won- 
derful opportunity for them to 
make a powerful statement to 
the world at large on the cur- 


rent condition of British paint- 
ing. Here too was the chance 
to establish the prize itself, at 
its inaugural test, as an event 
of the first importance. And 
they have blown it. 

in the particular and per-, 
sonal case it is as hateful as it 
Is Unfair to pillory Aitehison 
himself, for he is an inoffen- 
sive ami, in his own terms, 
accomplished painter. But it is 
the judges themselves who 
have thus set him up and 
exposed him. Do they really 
mean to tell us he is the one 
artist, not Just of the final six 
but of the 250 who entered for 
selection, who now stands, by 
the judges’ own criterion, for 
all that is truly excellent in 
modern British painting? 

Do they really believe, in 
direct comparison with the 
other five, that he is still the 


best, with his decorative man- 
nerism, his formulaic figura- 
tion, bis subjective sentimen- 
tality? Better than Ynko 
Shiraishi, shall we say, with 
her no less seductive surfaces, 
but infinitely tougher commit- 
ment to her own minimalist 
abstraction? Better than John 
Lessore, whose apparent reti- 
cence is belied by the ever 
more ambitious scale and 
scope of bis figure composi- 
tions? Better than that old 
war-horse of an abstract 
expressionist, John Hoyland, 
the one finalist to have 
achieved any international 
reputation and who, after 
some time in the doldrums, 
seems to be coming back to his 
true strength? And I did not 
think that even these were in 
with a real chance. 

I made, and make, no secret 


of my preferences. Had they 
chosen Maurice Cockrill, the 
prize would have gone to a 
late and still fast-developing 
artist, one who has never been 
painting better and will surely 
soon be stepping out onto tbe 
international stage. And had 
they given it to Euan TTglow, 
they would have been giving it 
quite simply to one of the best 
artists working anywhere in 
the world today. Where others 
dissimulate or. at best, fridge 
an accuracy of scrutiny and 
statement, he achieves it. But 
they didn’t, and I can hardly 
say how disappointed in them 
I am, at the opportunity they 
have thus thrown away. 

1 shall name names - Hilton 
Kramer, distinguished critic 
and editor of the New Crite- 
rion in New York who has 
been an enthusiastic supporter 


of Uglow in the past, is known 
to be deeply distressed at the 
result So too is Judith Collins, 
a senior curator at the Tate. 
Here then are the other four 
whose fateful decision U was - 
Sir Peter Wakefield, late of the 
National Art Collections Fund. 
Anna Ford of the BBC, Lord 
Gowrie of the Arts Council, 
and my opposite number on 
The Sunday Telegraph, John 
McEwen. Oh dear. 

Come back the Turner Prize, 
all is forgiven - well, possibly. 
Watch this space. 


The Jerwood Painting Prize: 
Winner and Short List Exhibi- 
tion; Royal Academy. Picca- 
dilly Wl, until September 2& 
sponsored by The Jerwood 
Foundation and The Sunday 
Telegraph, in association with 
Modern Painters. 


The drama of 
intimidation 



Mixture of the macabre and the sentimental: Anna Sawa and Jonathan Arun In *My Goaf, a political play about hostages in Lebanon by Michele Celeste Manor m* 


T here is an electric 
new production at the 
Tricycle. Michael 
Henry Brown’s The 
Day the Bronx Died starts with 
gunfire: a child being shot 
apparently without motive on 
a New York subway. Violence, 
physical and verbal, continues 
throughout, yet the piece 
passes a supreme test: never 
does it become violence for its 
own sake. This is a play about 
intimidation. 

It is not a documentary, but 
cannot be far from fact Here is 
the Bronx breaking up in gang 
warfare. There are two terrify- 
ing aspects. One is that the 
members of the gang are so 
young: it seems a matter of 
course to be sent a gun by your 
elder brother, who may be 
already in prison, on your 15th 
birthday and if you have it, 
you have to start using it 
sometime. The other is that 
intimidation works - even of 
the great and the good. 

Even in gangland, however, 
there are redeeming features. 
Officer Bream goes about the 
business of maintaining law 
and order with apparent 
self-confidence, though then he 
is shot. People try to bring up 
families and educate them - in 
Mozart and piano competitions 
as well as baseball. Blacks and 
Jews rub along together. As 
Big Mickey explains, this is - 
or was - the melting pot 
Big Mickey (Ewen Cummins) 
is a black who has made it to a 
smart apartment and is now 
being wooed to join the Repub- 
lican Party. On stage beside 
him is the young Mickey he 
was in the Bronx (Thomas 
Good ridge). Clearly the upward 
mobility was touch and go, lit- 
erally a matter of life and 
death. 


A great virtue of The Day the 
Bronx Died is that all this is 
presented without sentimental- 
ity, almost without comment 
When the violence in the 
Bronx becomes too much, 
those who can simply move on. 
The gang in the play looks Uke 
an offshoot of the ton tons 
macouies, led by a boy called 
The Prince (Freddie Anobil-Do- 
doo). The most dramatic 
moment comes when Officer 
Bream (Alan Cooke) breaks the 
Prince’s cane, but then of 
course, after slight hesitation. 


Malcolm 
Rutherford on 
three excellent 
fringe productions 


the boy feels obliged to shoot 
No-one will give evidence 
against him. 

Physical fighting comes 
about as dose as you can get 
to tbe real stuff on stage and 
the piece is magnificently 
directed - and paced - by Gor- 
don Edelstein. It deserves a 
wider outing. 

★ 

Bronx seems topical, yet politi- 
cal trends can be cruel to the 
theatre. If My Goat - a play 
about hostages in Lebanon - 
had been first performed just a 
few years ago, it might have 
looked like a sparkling politi- 
cal satire. As it is, it comes out 
as a mixture of the macabre 
and the sentimental but is still 
a fascinating piece, wonder- 
fully acted at the Cockpit. 

Michele Celeste, the Italian 
who wrote it, says that he took 
his original source not from 
the Middle East, but from 


Naples 1943, when Neapolitan 
women would pick up fleeing 
Germans as compensation for 
tbe loss of husbands and sons 
who had been transported by 
the Nazis. There developed a 

kind of tr ansfer mar ket in hos- 
tages, though there were also 
Some emotional attachments 

Much the same happened in 
West Beirut in 1982/83, where 
the action takes place. There 
are only two characters. A 
pregnant Arab woman, whose 
husband has been kidnapped 
by one of the warring factions, 
is in charge of a European 
archaeologist, innocently 
caught up in the process of tit- 
for-tat hostaging. The goat 
remains in the background: a 
substitute child competing for 
food and being fattened up to 
be ready for selling. 

If there is no symbolism in 
tbe names, it is a remarkable 
coincidence. The woman’s 
missing husband is called Yas- 
ser (after Arafat?). Hie man’s 
German wife is called Ulrike 
(after Meinhof?). And the Ger- 
man-Spanish archaeologist is 
called Carlos, a name to con- 
jure with in the world of ter- 
rorism. Moreover, Carlos is 
played (superbly) by Jonathan 
Arun in an unmistakable Irish 
accent 

The Irish dimension adds to 
the strange mixture of the 
primitive and the sophisticated 
which seems to dominate Leba- 
non. When the woman thinks 
she has traded her hostage, she 
finds she is gazumped because 
the market for Frenchmen is 
higher. 

The macabre comes in with 
the exchange of ears and little 
fingers as proofs of identity; 
the sentimental with a man 
and a woman locked np 
together. It is not very pro- 


found, but at times it is cer- 
tainly haunting. Anna Sawa 
as the woman has a memora- 
ble husky voice and is full of 
intensity. This is a fine perfor- 
mance. Burt Caesar directs and 
Tom Piper's set catches that 
sense of parts of the Middle 
East being permanently rebuilt 
and destroyed. 

■k 

The Royal Court has grown 
fond of cooking. A few months 
ago it stripped the stalls in the 
main theatre to revive Arnold 
Wesker's The Kitchen, though 
no food was actually served. In 


Joe Penhall’s new play, Some 
Voices in the Theatre Upstairs, 
food is lovingly prepared and 
sometimes appreciatively 
eaten. The suggestion seems to 
be, as in Wesker, that cooking 
provides a kind or therapy. 

Therapy matters, for Some 
Voices is a study in schizophre- 
nia. The voices are heard 
inside the head of a young 
unemployed man called Ray. 
At times they drive him close 
to suicide or murder, and in 
one memorable scene to dous- 
ing the kitchen and himself 
with paraffin. Yet the voices 


can stop just as mysteriously 
as they start Ray is saved, at 
least for the time being, by Ms 
elder brother Pete, the chef. 

The piece is a remarkable 
mixture of violence and tender- 
ness. I would guess that the 
references to schizophrenia 
have been carefully 
researched. Equally authentic 
are the scenes of drifting 
homelessness, of people who 
move in and out of mental 
institutions and those who sur- 
vive on a mixture of crime and 
social benefits. 

Despite the violence, it is the 


humanity that stands out. 
Movingly played by Lee Ross, 
Ray has a brief period of happi- 
ness with Laura (Anna Li via 
Ryan), a girl in tow to the 
flashy thug, Dave. Yet even 
Dave (Lloyd Hutchinson), who 
comes to a sticky end, has had 
his moments of feeling. 

None of tbe characters, 
including Ives (Tom Watson), 
the old man who says he has 
come to like his mental home, 
is flat Ives indeed has a scene 
of his own describing how the 
madness came upon him in an 
explosion at the gasometer 


where he worked: we never 
know whether this is true and 
nor does it matter. 

Best of the lot is Ray Win- 
stone’s Pete in his soothing 
care of his brother. At first 1 
thought this would be a dull 
part. It is a measure of the 
strength of Penhall’s writing, 
however, that it grows to 
become dominant. 

Penhall is a young play- 
wright to watch. Ian Rickson 
directs and the production is 
sponsored by The Jerwood 
Foundation which specialises 
in the welfare of the young. 


Music as a fashion statement 


T he South Bank's 
International Cham- 
ber Music season, 
which opened with a 
concert by the Endellion 
String Quartet and guests at 
the Queen Elizabeth Hall on 
Wednesday, has been image- 
brightened. One knew this 
from the orange, blue and 
pink spotlighting and the dim 
house-lighting. One knew it, 
too, from the players’ studi- 
ously informal attire. It was 
made explicit in a programme- 
note. and its fatal conse- 
quences were sensed when 


Andrew Watkinson. the first 
violinist, stood np before tbe 
account of Beethoven's Op. 127 
quartet to tell us what a privi- 
lege it was to be able to per- 
form such great music. 

This mawkish spiel had the 
insidious effect of making ns 
hear the Ende! lions being priv- 
ileged rather than Beethoven's 
direct utterance. Hie hall was 
full and people surely had not 


come to have Beethoven sold 
to them. Not surprisingly, it 
was bard to assess the Bn del- 
lions’ interpretation of this 
piece. Extremely skilful, cer- 
tainly, but not very startling 
or deep. Their account of Brit- 
ten’s early Three JNvertxmenti 
had been far more impressive, 
if only because a dazzlingly 
virtu osic handling of its won- 
derfully bare and simple tex- 


tures is “an” that this music 
demands. Interestingly, the 
violist, Garfield Jackson, was 
playing the same instrument 
used in the premiere of the 
work’s original version as Alla 
Quartette Serioso in 1933. 

This we learned from a 
chatty piece in the programme 
book, where the players gave 
their thoughts on the even- 
ing’s music to Anthony Bur- 


ton, and which confirmed 
one's impression that the con- 
cert and concert-series have 
been thoroughly Radio 
Three-d, which is to say. Clas- 
sic FMU Hie appearance of 
Jeau-Yves Thibaudet, pianist 
for Schubert's Trout Quintet 
(the double bassist was Dun- 
can McTier), confirmed one’s 
impression that music-making 
is becoming just another kind 


of fashion statement. His 
bejewelled suede slippers and 
seriously red socks threatened 
to draw attention entirely 
away from what his hands 
were doing; though his Umber 
and very speedy dexterity in 
tbe gorgeous fourth movement 
- tbe famous bird-twittering, 
fish-leaping Theme and Varia- 
tions - was a wholly musical 
adornment to the work; and 
the performance was alto- 
gether stylish, energetic and 
enjoyable. 

Paul Driver 


SOUTH BANK 

Tel/CC 0171-928 8800 10om-9pm daily 'Pcjc Chanty 


I ROYAL FESTIVAL HALL I 


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Frmix Welsor-MOot (cond) 

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ran, v?i, C17. ci3. ce. cs 


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ISCSop EHahu tnbtil icondl 
7 JO MnhlnSympMnvNo.9 

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Harold Hon LtdrSBC 


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2™** t* RusaoU. □ RWetaJL Burnt L'ArtOatenne Suite NO Si, 

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queen ELIZABETH HALL 

Concerto, door Symphony Hs.^ ^ 
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^ Quasi Konny Baker. A nevwr to ba tomotten 

C& GS.SO 

^ 12 1--— PURCELL ROOM 

rrto ln .«.£ff wG&wi SocWS Cordon ConttM Mg. 


Video/Nigel Andrews 

Confused question of censorship 


I n most places tbe end of 
summer is marked by 
slowing growth and the 
first signs of autumnal 
decay. But the home-viewing 
landscape is burgeoning sud- 
denly into a vast, bewildering 
jungle. 

There are exotic flora like 
Laser Discs and Digital Video, 
turning your TV room into a 
riot of hi-fi sounds and colours. 
There are the modest but mul- 
tiplying sense-experiences 
available on normal video. And 
there are corners of complete 
and tangled confusion, like the 
current state of video censor- 
ship. 

One recent development in 
this comer is worth note: the 
tendency for distributors to 
rush out large-screen (re)re- 
leases of controversial films 
while our censor dithers about 
video certification or our MPs 
haa^e over what we can watch 
in the privacy of our homes. 


Chess No 1040: 1 Nc4 (threat 2 
Ne3). If Kxc4 2 Qxb5. or Rxc4 
(or bxc4) 2 Qdfi, or Qh3 2 Bf7. 
or Rc6 2 Qxc6. Most of tbe 
expats fell for 1 Nc6? Rd7! 


Hence the recent reappear- 
ance of Quentin Tarantino's 
violent, powerful thriller Reser- 
voir Dogs at cinemas near most 
of us. Another Tarantino work. 
True Romance, may do the 
same since that too has been 
fingering in the censor’s office. 

Since Tarantino's last film 
Pulp Fiction won the Palme 
d'Or at Cannes, and since a 
ffhn adapted from a Tarantino 
story (Natural Bom Killers ) 
has been the talking point of 
the American movie summer, 
are British VCR-owners really 
happy to be subjected to this 
Mrs Gmndyish nonsense? If 
not. they should make their 
voices heard while the debate 
lasts. And if Britain's powers- 
that-be wfll not hear them, per- 
haps the EC's will- 

While some movies dawdle, 
others rush into the new for- 
mats. D.W. Griffith's seminal 
epic of world cinema The Birth 
Of A Nation (Connoisseur) may 
have taken 80 years to reach 
your VCR. also "via recent cen- 
sorship turmoils. But at least it 
means we can now travel at 
one bound to the origins of cin- 
ema. And you cannot stop glos- 
sier modem products like The 


Firm (CIC). Aladdin (Disney) 
and, soon, Jurassic Park (CIO 
from jumping almost straight 
into your sitting room after 
large-screen exposure. 

The Firm is this month's 
multi-format market leader. 
Already out on Laser Disc, it 
will have the first ever simulta- 
neous release on VHS and Digi- 
tal Video. The film is 2 >4 hours 
of John Grisham-based non- 
sense, with Tom Cruise battl- 
ing a corrupt and murder- 
prone law firm. Enter taining : 
even if there is a low-aim inevi- 
tability about the choice of a 
proven catchpenny hit for this 
trend-setting multiple release. 

We would hardly expect the 
honour to have fallen on a 
coterie masterpiece like Scor- 
sese's Edith Wharton adapta- 
tion The Age Of Innocence. But 
Daniel Day-Lewis and Michelle 
Pfeiffer will soon be romancing 
it on Laser Disc. Nor on genu- 
inely original movies like 
Brian De Palma's hallucino- 
genic murder mystery Raising 
Cam (on video only from CIC) 
or on the Terence Davies Tril- 
ogy (ditto, Connoisseur), a 
haunting 1970s apprentice 
work from the British maker of 


Distant Voices Still Lives, or on 
Peter Greenaway’s The Falls. 

This last, also from Connois- 
seur. is the pick Of the month. 
You will be old and grey before 
it gets to Digital Video or Laser 
Disc, but yon should try it now 
on VHS. It was the longest and 
greatest of Greenaway's pre- 
feature films before feme came 
with The Draughtsman's Con- 
tract. I almost said his “nonfic- 
tion” or “short” films. But both 
terms would be violent misno- 
mers. The Falls last three 
hours and its joke-documen- 
tary form - stories about a 
group of mysterious accident 
victims whose names all begin 
with "Fall" - is as Active as 
you could get without being 
arrested for aesthetic fraudu- 
lent. But relish Greenaways 
gleaming surrealist visuals, the 
po-faced epigrams of his narra- 
tor and the wondrous flair for 
briskly wagging shaggy-dog 
tales. 

The release of The Falls also 
proves that while other home- 
viewing systems may offer 
state-of-the-art sound and 
vision, you can still only get 
state-of-the-art art on VHS. 
That is: if our censor allows. 


The Official London Theatre Guide 


Supplied !?% The Sficiv'lv o f Li'/ndc 


A DEL mi Sir W T»l 071.1*4 AMS 

Same! Boulevard 

Tuh» OwintCnw Prk>. HSflUn TUMh.4Hmi 
AIJEK7.5lU.iilln,L<nr Tr)071 JM.17U. 

Lady Windermere's Fan 
Tm*-i.ni*a-ifr|iMn. in<j; Jn Tun * «.*mii 

ALDWYCII. kklirt.h MD7U1UIM. 

An Inspector Calls 

luhrlT.iymltji.len Pn.r.lJ.SlUJJ TmV, IJirWi 

*i™** SADO|K .*w- | St TrionjiMinmn. 
900 OneonU 

Tube ljniWerf .1 Pnre.LMJIKI7.4u TIHT* 4 HWIH 
APOLLO .ShiM'ivyA, r MP71.**L5Brz. 
Neville's Island rmw.mfc... r «n,tvii 
TuhrPm Cut I'm* a NKIv.Su Tits*. tKNIU 


PALACE, tfulInbnryAvmur 1 071.434040*. 

Les Miserable* 

Tuti- Lrwr>4rrS^mi P,l,p> r.Qu TOO IKNV 

rilOENn.CTunnECn^.RiijJ TrlOTl JW.I73J. 

Blood Brothers 

TuhermtKnh.mCi.giJ jWOjtglWtfcjlwli 

PICCADILLY tVnnunSl Tvlon.l4A 1744. 

■•xii as tuikunw 


i i ii.lt wnnunM mi 

Only the Lonely 

Tithe Ptf iftdilt, Ciitu, PninJ 


APOLLO VICTORIA. |». VWlunRil VIU71 41 

Starlight Express 

Tutbr Virturu l*rnrvC 


ȣll*Llai 


COUSf UMt. SlUtLTm', Ltnr TrlOTt ULIIU 
EncliU.hL.lhmt I Orwr, TO SC A 
THE MIKADO 

Tt^wLeiirMwSlmt. Prrtr. tp-W TTKV4VHIH 
COMEDY. r\anum Si Trl 071 JIA.177I. 

The Official Tribute to 
The Blues Brothers 

1*4— Pi.mliHTlIh.iA riw.-g.Lg'M TlUlimiwIu 
DOMINION. T.hlrnluimCi'unPii TrlD71.ll.40tO. 

Grease Nn. h..Am K r„- J . r ,-ws 

ralmlnnmKMMCl KJ rr»eJNI-C?tlTlTOn4E FIS| 
DUNMAAWAtEIIOLISE.CtrilutnN r.»71 JvT.lTR 

Design for Li ving umii Nutt 

Tuhr-CirctTMCtln fVht-. t lU^H THAU. 4TU4H 
TRL'SY LANE. Ctlhrm-Sliv-rt IrllPI 4*4 WEI 

Vfiss Saigon 

Turn Cmmli^inJ^n n*n CaAmZOJ liM>.41im4 
JUCHE5S. CtlhmiwMrrrl. lrluTi 444.W7S. 

Jo n't Dress For Dinner 

uN-CuTiTHCjiilm rn.n OLtlHfU TUftV. 41W I5 

H'U OF YOBIi'S.Si Mirim'. La. Trio-I JU4JTLL 
leauliful Thing 

■br-Leh^mrSqmir I’tur. « 50*10 lT»0.4m|n 
OITTJNE. Ku.tHI Si t.ihti tu I] 11 

The Worna n in Black 

uK- Ciwim CUn Pixev [h snf luff nm» lew? 

;iOBf_S7l*ll*>htar> Si, Trl 070444. J. 

The Winslow Boy 

oarri.L»MUyCiAtA. rtic^.r7 jticu Tm >4msi« 
IAYMAIKET.IM.it, trim II 1 071.-411 4400. 

krradia 

utv.ritnJilhCliLUL Pnmio-gJ Ton* 4 OOP 
IEA MAIEfTVS.HtvnurlrL TtllCI 141341111. 

'he Phantom ofihe Opera 
■I'T-Pifradiihciffu'. pi.m-LB.ni Tim iw:i 

HE ISLAND. PiiflUAalSl Tie I ITT 1 t*4JO«t. 

JoceonThis Island 

uK nmt-fti Tiua LIO-CS TiaGti 43UWI 

ONDOK PALLADIUM ArgyllSl 

fliri 4*4 SUM Oli VerlFmtqNu.nnPrr TS 

«iUr Qifeu lSl frifo ClD-Lln 

YBIC.StulMfeurY Amr.7rll771 4*4 5111* 
ire Guys Named Moe 
jk.rOTadillp^WBo Purrs CS- gTJgll IQS 4KW3 
ATIONAlTHEATBtr^nBihSanLIrnn.-aLJBK 
Hrwr-THE PE VI Li disci rLE 
ITE5EACULL 

Kn.OLNi-a: TiDCTti 4XH2a 
. nrtUhi.S4VE.ET HKD OF YOUTH 
KOKQvCLASS 

trrs Ol-SO-t:: Tnon 4.111*77 

nieJiH- LlCTO 
UniEJLFOHDOiSON 
K n EH JC .CLI ai t will OHM TjN- 
EWLON'DON.CWvUnr TrKTiailSJieTt 

ate 

itr Hidbrnw Tnit* tlil.VLClO TlHIa 4 JO*?* 
HE OLD VIC.WilrfliHi Ad. TrW71.4ZS.74Ik. 

he Sisters Rosensweig 

■Ur Wjirfim. rikrvtmna nucu. umjn 


PBJKCEIDIVARD.IIliJCmptinSi Trl *-1.7144*41. 
Crazy For You 

TuJi- Irurtmr Tniri tllNM. HI TIMJaLUVIi, 

PSINCE OF WALES Cm mn N Trlon AJ9J*S7. 
Coparabana 

TuN-JSir-dWIyCiriin fttfi* giKJli TT«jh4Wr 

QUEEPIS. ShtllvMvrt A. r Tr|071A44-S04a 

What a Perform a nee rn-Lin.Mn-mOi.TS 

TuHTtiOmnA TuN-r»«diEvCuty» hiw.iiig gMTIsJiiOWi 

SOYALCOUBTT.5kuniS<|uA>r THD717XJ743. 
Babies 

ThhrSLwmSqwm Pntet P-DS TOOA4U W 
SOYA LOPEKAHOUSEt Cm mlCjA. m»TTJW.*lia 
TUSANDOT 
LACENERENTOLA 

Ti*r- CunrBidnOm. TnOntSHII 

Ktn AlSKAKLSrCA R ECOt.EUrt*MiL IrVrUUotl 
lUAilin THE VENETIAN TWINS 
PncM-CJAUII TWIxLENUh 
ThrPir ION 

TuUr BtiEKan Ti.ntll TTW>. J3om7 
SADLER'S WELLS. Rrnt+rrv Air Trl 07L 774-1*14. 
Cu mb re Flamrnca UnhiOiD 
TuJh-AniyJ Firm ESC? S" 77WIA7.Y7WI 

ST MARTIN'S. ILV^I Sum TrlaTI.SJ4.I44]. 

The Mousetrap 

Tube Lturtln Sq — it rtlrr. 11LC77 TmV.I.SI*44 
SAVOY. Slltlkl. Trie71 J14.ISU. 

She Loves Me 

TuU»*C>>i»BnCiir.. ftkr. Liu- cm TWJMJBHg 
SHAJFTESBUm. StuUnhunrlir TrlP7MIJ3SI4 

OulofLheBlue iwimiui 
TuN-TihLCl »d r««e) tn-L2?5(l TISOft 4JIW4J 
STRAND. AMwyrti TrlOn.tlOAraD. 

Saint Joan 

rulmOltrmnC.n.. Pmr,.C*.Pil TIKT*43B*4S 

VAUDCVILlf.Sli.lHj Trl*7IAW*W. 

Dead Funny 

Tube OuMtCmu Pntr4.CJ4 C3SllTDIODiLUr4l 4 
VICTORIA PALACE, Vk'bwu^l 1r|B71JU4.1JI7 
Baddy N'nHiHiriLm R ieii u .y r i,jia)u 

luht-Vic»rM Prtrr. ( IQ-fTS TOJI.lt> 4PM7 

WTTfDH AM'S. OurlnrCnivv RJ TrJ07T.144.1734 

The Miracle Worker M.timdCriA 

TlWrjAhtMIrSt r7Ntf.4ll»T4l»t* TIN.Tr 430SMJ 
W3rNDHA4rs.LTuiinsCnA.Ra TrlSTI J**.17J4. 

Three Tall Women rmM.inmOnir 
TaN-LeicinlrrSif rnm HJQ -E3 

PKTnenumbrremlighltyjftRAl'cvurilthnrlUfgrd 
wbrnmjkingAiiedilrjrd Irlrphanebcokm^. 
Fhonrnumbersiniialia Oil may be Hipped 
tmioan jgem whochaigrs a boot ing lee. No 
charge for postal booking or personal callers 


t s Registered Charily 


Theatreline 

T-CalltheOmtjThratreltnenumbcmjiihis 
guide (or more mloimatlonand daily Mat 
a va i labil ity on each show. 

Calls cost J»p cheap rate or 49p stall other 
limes in UK 

Thoairelme is presented bv S O.L.T.in 
association with F.T. Cityline 

Fn r dail v seal a vailabilil v only call 0R36. 

<.W59 Plays 'UOHSthnftcra 
■D0%0 Musicals LWXJChiklren'sShows 
LWW.1 Comedies QperaBalLDante 







WEEKEND FT 


FINANCIAL TIMES 


WEEKEND SEPTEMBER 24 /SEPTEMBER 1994 



FASHION 


Off-the-cuff tales of men’s shirts 










MJ 


Avril Groom 

considers the 
s vexed question 
of choosing the jj| 
correct shirt ® 


-T‘k% - - 




S-«s 


''wi 


’.♦KV-fl 


Nick Straker in a rich cream cotton poplin double-cuff shirt. £38, woven silk tie, £36 both from Boden, 081- 


for brochure 


Nick Straker, stockbroker 
with Morgan Stanley: H I go to 
work very early and often 
dress in the dark. So I choose 
plain shirts which won't clash 
with whatever tie I’ve picked 


up. My suits, which are 
tailor-made, are mostly plain 
and single-breasted- 1 avoid 
City fads like really baggy 
suits or bright pink shirts, 
though there is now an 


interesting trend towards pale 
yellow. I like long shirts with 
plenty of tndk-in and room 
under the arms. Double cuffs 
look smart, with plain collars 
- working for an American 


firm I consciously don’t adopt 
the preppy, button-down look. 
I shop for myself but I also 
like mail order. I discovered 
Boden do extra long fittings 
and I have arms like a gibbon. 


Their shirts are high-quality 
traditional and I enjoy 
receiving parcels. 

My wife occasionally buys 
me a shirt She is more 
adventurous." 


The ffll of stress management by Austin Reed 


A A*. 







gfp-i ; t 








8 SR 


Vi- / ^ #4i 





\l Nil-tin lu'nl »r kilim niunil pn*ssuiv. H w«* diiln 1 . how t-i.nilil mi* uixl'Tsfuml leisure? So nliilr our SjiorlMiiuii 
1‘iillrrliou lonk- mu] Fi*i , U lotully ii*kiv‘H. wen* i»li.-<*>^Ki* uimnt ilctuil. it * snmi-thinv wr would just like to strvss. 


AUSTIN REED 


FROM THE SPORTSMAN COLLECTION: PLAID SHIRT C 45 . POLO SHIRT £N.«. CORDUROY TROUSERS CSV . TO RECEIVE OUR BROCHURE FREEFONE 0800 MS 47 *. 


‘ ' *' " ,r " J " ‘ ** w r * n(, '» • *niom:wik/ • (Uiir •*►.**' • ctNC-.-RZK mm • ;i«tvcci ii*or • s*;Nr '.*cr.j • HTAinfov. toi/iinais i 3 1 • itfimr shcw, also ai akadkn ■ mih ■ bibhiwwaw ■ ■ wuchton 

' " •‘•"wca • •. ,>„:uiihi iim^'ii. C4flw‘ - • (pflarH.-ai*.;. v?c,v tja-b.u. -ouiCCtf. • Cn-Ti^aw- mumsIi- ttru^m^-u^yn rwws - heds ■ LBOira- mmoistbi ■ ihihilii- ncui Mu.>tmctiF(K*wwi 

■ ’-"'t* 1 ' * w,,w • IrTU’HlHMJM . • t«4tFC«Ci . luNfOiCCt A|L., • WINSVC* • • :-r-l >. *1 HR/ "INI mrulMEM! At SRIAtTCE) OlFOPO IIWT. IONBON AMD A -.POItmUJ SHOP AT gEAmtl WOl. V|»X1H»TAW 


Shirts are subject to the subtle 
whims and codes which groups 
of men devise to malcp them- 
selves distinctive. 

According to Sir Hardy 
Amies, writing in his book The 
Englishman's Suit, the shirt is 
now "the fashionable, status- 
enhancing garment" for men. 
Yet a surprisingly large num- 
ber of British men apparently 
let their wives buy their shirts 
feu- them. 

Research by Van Heusen, 
which, aims to overturn its 
staid image this autumn, with 
a new range including both 
traditionally-made City -style 
shirts and modern, more 
relaxed designs, divides 
shirt-buying neatly Into 

thirds. 

Some 34 per cent of all men's 
shirts, it found, are bought by 
women. Another 34 per cent 
are bought with a woman pres- 
ent, or at least with her 
approval. The rest are bought 
by men alone, for reasons of 
speed, getting a better fit or, 
most tellingly, not wanting to 
be pushed into something 
unsuitably trendy. 

Men who shop alone are par- 
ticular about detail and more 
likely to buy the 3 per cent of 
shirts which cost more than 
£45. 

More than half of the shirts 
purchased in the UR cost 
between £15 and £30 with 
Marks and Spencer alone 
accounting for one-fifth of the 
market 

Chain and department stores 
are more likely to be the haunt 
of the shirt-buying woman, 
probably while she also shops 
for herself. A man is more 
likely to go to a specialist or 
designer shop. 

A straw poll of professional 
men with a sharp eye for a 
good shirt, showed only a 
minority who sought their 
partner’s advice, let alone 
expected her to buy their 
shirts. But the men come In 
two very distinct categories: 
the traditionalist and the trend 
follower. 

The traditionalist shops 
when his old shirts wear out 
He goes for good two-fold cot- 
ton and quality details. Once 
he finds a suitable source he 
sticks with it 

This includes mail order 
sources, as upmarket bro- 
chures from companies such as 
James Meade or Boden testify. 
In this case, wives often make 
the final choice and order. 

James Meade (tel: 0264433222 
for brochures) estimates that 
20 per cent of its sales are by 
this method and Johnnie 
Boden reckons “togetherness” 
is a plus for mail order, less 
stressful than shopping d deux. 

The trend-follower, on the 
other hand, is aware of labels 
a nd fashion conscious. He is 
likely to spend time window- 
shopping and retires his work- 
ing shirts as painting smocks, 
not because they are worn out 
but because he has gone off 
them. He is likely to work in a 
less conservative profession 
and is adept at bringing indi- 
viduality to the suit-shirt-tie 
uniform. 

Both groups demand style 
and lasting value, and their 
main gripe about cheaper 
shirts is their limpness after a 
number of washes. 

The debate about easy -care 
cotton and fused collars (where 
the interfacing is ironed on to 
the collar fabric which makes 
ironing easier but may eventu- 
ally distort the smooth line - 
Van Heusen fuse, Thomas Pink 
and Boden do not) is a sideline 
as few shirt enthusiasts laun- 
der at home. 

Small changes do not go 
unnoticed - traditionalists 
admit that the appearance of 
an unusual collar shape or 
shirt colour in the office still 
causes comment. Even the 
trends followed by the fashion- 
conscious point to classic looks 

- subtle checks, textured self* 
coloured weaves, button-down 
collars. 

In the world of the working 
shirt, tiny changes can be 
talking points. Because men 
now work Jacketless, Van Heu- 
sen puts a pocket for pens even 
on its most traditional, double- 
cuffed shirt Some men love it, 
others feel a plain front looks 
more professional But there is. 
as Daniel White, the compa- 
ny’s marketing executive, says, 

“a loosening up, a move 
towards individuality. 

“The 1970s were the great 
shirt years with a huge variety 
of shapes and patterns. The 
1980s boom brought a uniform ; 

- power stripes and double 
cuffs. Now people want a more 
personal touch but it should be 
subtly done." 

To test the thesis, we record 
the views of four keen shirt 1 
buyers, none of whom owns 
fewer than 30. Each clearly 1 
belongs to his own, mutually- i 
recognisable dub. i 

Photographer: Brendan Corr j 


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Dean Marsh wearing a red and wNte check cotton shirt, £52, 
tweed suit; £365, tie, £39, from Cording s, Plccadffly, SW1 


Dean Marsh, music business 
solicitor with David Wlneman: 
“ Because my clients are 
unconventional I get away 
with more than most lawyers. 
I like a stylish but informal, 
faintly Italian look. I have 
several sxdts by Oswald 
Boateng and this green tweed 
one from Cordlngs, a shop so 
traditional It has become 
trendy. 

“My problem was how to 
stop the suit looking too 


countrified - 1 always buy 
clothes with the overall Affect 
in mind. My girlfriend’s sense 
of style helped choose the 
shirt Checks are slightly 
informal but red is a town 
colour and the traditional 
collar and double cuffs are 
smart If I go for a drink with 
clients, this outfit is 
acceptable m some clubs 
where a straight City suit 
would not be. But I wouldn't 
wear It in court" 



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John Ittnk is wearing a green striped cotton doubte-aiff shirt, £4250 
from Thomas Hnk, Btorafwld Street, London EC2 and Jonnyn Street, 
London SW! and brandies with a s3k tie front Hemids 


John Rink, managing partner 
at Allan and Overy, City 
solicitors: "I shop for myself 
because I know what I want 
and my wife, who works, has 
no time. I go to specialist shops 
such as Thomas Pink where I 
would expect the fabric, finish, 
length and so on to be to the 
standard I require. Quality is 
more important than price. My 
usual style is double-cuffed 
with a partly cutaway collar. 


in really good, striped cotton 
and a comfortable fit without 
bagginess. This gives the 
professional look clients expect 
and looks smart in the office 
without a jacket I don’t 
attempt to be fashionable but 
ties can make a statement My 
shirts last well and are 
professionally ironed. I restock 
when they wear out or at 
sales. Shopping In the City is 
convenient. " 


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Alan W3kbison-Maten In a button-down shirt in biscuit cotton twffl bv 
Street W1, Andrew Houston of Cariisle and Watson Priekard of Liveipool 


Alan WlDonson-Marten, 
architect, associate at Norman 
Foster and Partners: “I buy for 
myself because Fm single but 
anyway I love browsing in the 
Kings Road and Co vent 
Garden. 

“Quality and style are 
important A shirt should be 
very simple - easy-fitting, 
finely-stitched In good cotton 
with interesting buttons. As I 
like plain white shirts, these 
details are important I pay 
more to get the right design. 
Adolfo Dominguez is my 


favourite but I like the very 
subtle patterns and good 
make-for-price of the new Van 
Heusen range. 

"I work with sleeves rolled 
up so double cuffs are not on. 
Jacket and tie are not 
necessary in the office hut for 
outside meetings a shirt mn# 
look good under an 
unstructured, Italian suit For 
work in the Far East a white 
shirt and jacket is the 
convention. I take cheap, 
short-sleeved ones but they 
don’t last long.” 




V 




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: J l 













5 ** 








FINANCIAL TIMES 


WEEKEND SEPTEMBER 


24/SEPTEMBER 25 1994 


WEEKEND FT XIX 


HOW TO SPEND IT 


Italians 
add style 
to vibrant 
streets of 
London 

Lucia van der Post finds that 
business is booming and that 
upmarket foreign companies 
are flocking to England 


T he official news is 
confusing - retail 
spending down, 
interest rates 
rumoured to be ris- 
ing, the stock market falling - 
but no-one seems to have told 
the shoppers on the choicer 
streets of London. They seem 
to be responding to an entirely 
different beat. There is an 
Infectious sense of optimism 
about New shops are opening 
all over town. In certain stores 
some of the winter lines have 
completely sold out and the 
end of September is only just 
in sight. So what exactly is 
going on? 

What seems to be happening 
is that there are pockets of 
great prosperity and success. 
Those who realised that there 
was more to the last recession 
than just the fact that many of 
us had less to spend, that there 
had been a sea-change in the 
way most of us viewed the 
world, and addressed that shift 
in perception seriously, are 
beginning to reap the rewards. 

The key to success in the 
1990s seems to be value for 
money - the absolute price 
scarcely seems to matter. High 
price-tags can move as fast 
as low ones provided they 
are perceived to offer real 
value. 

All over town, restaurants 
that get the formula right (Joe 
Allen. The Ivy. Christopher’s, 
Aubergine) are packed out. 
clothing lines that have a 
certain pizazz as well as 
attractive prices are sold out. 
everywhere the special, the 
out-of-the-way. the quality 


ranges are doing well Get it 
wrong and you might as well 
send straight out for Cork 
Gully. 

Much of the newly buzzing 
atmosphere has to do with the 
fact that the big department 
stores are falling over 
themselves to tempt the 
customers in - revamped 
buildings, personal shopping 
suites, free coffee and 
newspapers for the gold card 
set, new lines, special offers, 
exclusive ranges. 

Harrods, Selfridges, Dickins 
& Jones. Liberty, Harvey 
Nichols are engaged in a bitter 
struggle for our hearts and 
purses and there is nothing 
tike competition for improving 
the quality of the end product. 
New deals are being struck, 
exotic designers wooed, 
adventurous services broached. 

And it is not just the 
department stores - all along 
Bond Street the builders are 
busy, the skips are flill, once 
deadly Madame shops are 
being replaced by livelier, 
more contemporary, sharper 
names. 

The scene is also being 
enlivened by an influx of 
foreigners casting a concerted 
vote of confidence in London's 
importance as a sophisticated 
centre of shopping and 
bringing more than a touch of 
European brio to tbe scene. 

The last few weeks have 
seen a non-stop celebration of 
Italian style - from the haute 
sophistication of the menswear 
lines of Ermenegildo Zegna 
and the fastidiously refined 
stationery of Pineider to the 
eminently wearable ranges of 
Genny’s womenswear and the 
streamlined artefacts of 
Bugatti. 

Some of the names will 
already be known to you. some 
have had a small presence in 
London for some time but now 
that they have tested the water 
are encouraged to plunge in 
deeper while others, such as 
Pineider and the new Bugatti 
range, are complete 
newcomers. Here, then, on this 
page is a taster of what some 
of them have to offer. 


The Gemy look for winter: short wrap A-line skirt in grey mailed tweed, £146 with matching short giet, £275 
end longer block wool gflet, £430. Underneath b a fine black polo-necked body, £305 and the boots are £3151 


Zegna style: Checked waistcoat, from a large selection, starting at £115; cashmere tie, £70; cashmere scarf, 
£125; two front-pleat cotton trousers, £125 and cashmere and finen mix shirt to order 


GENNY is an Italian label that 
does not have tbe high profile 
of a Versace or an Armani but 
has become a favourite with 
many a busy, working woman 
as well as with same of the 
more lively glitterati of the 
Italian social scene. Monica 
Vittl Princess Pignatelli and 
Isabella Rossellini are just a 
few of Genny’s fans. 

For some time a small 
selection from the line has 
been available at Browns of 


South Molton Street and at 
Harrods but this week Browns 
has given Genny a separate 
shop at 18. South Molton 
Street London W1 where a 
much broader range of Genny 
can be seen. 

Besides her beautifully soft 
and understated suits for day 
which many a working woman 
adopts with a sigh of relief 
there are some delicious pieces 
for the evening - simple 
empire-line velvet dresses 


(around £400) and some flirty 
double-layered chiffon 
numbers in chocolate brown or 
black (£600). 

The hallmark of her 
collection is its simplicity and 
a new-found softness - many 
of the pieces are ageless and 
could become the main prop 
around which a wardrobe 
could be built 

The picture, above, perfectly 
sums op this winter's day-time 
look. 


ERMENEGILDO ZEGNA, the 
Italian menswear company, 
has for some years had a 
seriously sophisticated shop in 
Bond Street purveying its own 
high quality menswear. This 
week it opens another shop in 
Covent Garden (42. Shelton 
Street, London WC2) with the 
younger, slightly less formal 
man in mind. While the Bond 
Street shop concentrates on 
the more structured, 
“sartorial" lines, in Covent 


Garden there is a beautifully 
relaxed line of what Zegna 
calls its “soft collection". 

Zegna defines soft as 
“wearing pants in cotton or 
Donegal, mixing them with a 
nonchalant, easy checked or 
windowpane jackets" or soft 
could be an “updated Jacket, 
unstructured with lowered 
shoulders and shirt sleeves." 
The picture above shows 
exactly what “soft" is all 
about - that Italian gift for 


combining garments to create 
an air of understated chic. 

It has nothing to do with 
skimping on qnality. AH the 
fabrics are designed and 
manufactured by Zegna. It has 
everything to do with attitude, 
with wanting to wear more 
relaxed, more comfortable 
clothes. Aiming at the younger 
man, tbe new shop will have 
slightly lower prices - wool 
suits will average about £550, 
jackets start at £395. 






An oarty bookplate from the Florentine stationer Pineftfar 


Silk scarf with classic Bugatti motif, £125 


country renowned 
r and stationery, 
the must distin- 
e of ail. No young 
\itnna famiglia is 
an the world with- 
of beautifully 
siting cards, each 
ived with tissue 
Pineider. In good 

and aristocratic 
her-bound visitors' 
ineider sits upon a 
ic. The Pope has 
id Papal stationery 
r almost since the 
ilg 11774). 


Pineider was started in Flor- 
ence, an essential stopping-off 
point in the Grand Tour. In 
those p re- telephonic days fine 
writing paper, inks and pens, 
mattered. People of distinction 
bought them at Pineider. 

Most of the range can be 
seen and bought at The Mirabi- 
lia ltaliae at 16 Royal Arcade, 
Old Bond Street London W1 - 
look for the beautiful visitors' 
books, the photographic 
albums, the stationery, the 
cards. The famous engraving 
service will start in about a 
fortnight. 


peter dudgeon 

Broropton Place Knlghcsbrtds« SW3 Tel: 07! 589 0322 

The Sofamakers 

since 1947 


BDGATTl is one of those 
names that resonates through 
the years even for those who 
have never seen one of the 
legendary cars. Bugatti, we all 
know, stands for class, for cars 
that are tbe stuff of dreams. 

Though it is well over 100 
years since the Bugatti story 
first began, it was only three 
years ago that the family 
decided to create a range of 
products that would draw on 
tbe impeccable image and 
standing that Bugatti had 
throughout the world. 

The earlier generation of 
Bugattis were astonishing 
designers. Father Carlo- turned 
out hundreds of drawings for 
everything from furniture to 
silver and glass, while Bttore, 
who designed the 
unforgettable cars, also turned 
Ins hand to ships, aeroplanes 
and trains. With this rich 
archive to draw on the family 
decided to open a design 
studio in Ora, near Bolzano in 
Italy, and begin a modem, 
rejuvenated launching of 


Bugatti products. 

Almost everything the 
Bugattis do is linked, however 
tenuously, with the romance 
mid glamour of motoring, 
harking back to its golden 
days. Luxurious wraps of 
cashmere backed with softest 
snede are perfect for keeping 
delicate bones warm whilst 
driving in an open-topped car. 
Soft suede motoring trousers 
have subtle extra curving 
seams which can be let out so 
that there is plenty of room 
for the knees to bend and the 
trousers retain their shape. 

There are warm gilets. of 
softest suede or leather, 
exquisitely made, which by 
virtue of skilfully placed zips 
also double up (yes. seriously) 
as shopping bags or 
knapsacks. There is a 
beautifully designed 
shootmgstick-cnm-umbrelia 

and, of course, obligatory 
motoring accessories such as 
sun-glasses (Zeiss lenses in 
anti-glare tempered crystal 
and flexible hinges - all very 



Bugatti handbag, designed by EKora Bugatti for Ms wife in the 1S20s 


sleek), watches (Bttore Bugatti 
used to present watches to his 
victorious drivers), pens and 
leather goods. 

The Bugatti hand-bag is one 
of the few long-established 
products. Ettore Bugatti 
designed it for Ms wife, it was 
made for him by Hermes and 
has been a classic ever since. 
At the new Bugatti shop the 
basic design is untouched but 
two-tone versions in racing 
colours, for instance, can be 
ordered. The locks are in the 
shape of the car radiator. 

This may read Bke the stuff 
of every would-be luxury 
goods house but tiie quality 
and the attention to detail is 
exceptional. Leather 
notebooks, wallets and 
albums, for instance, have 
beautifully hinged covers so 
that the leather does not wear 
out Metals are carefully 
worked, fabrics the finest 
possible. Prices, of course, are 
not low - the cashmere and 
suede rugs are £1,900, the 
Bugatti bag starts at £808 but 


silk ties enlivened with motifs 
of old cars are just £48. The 
new Bugatti shop is at 20 
Beauchamp Place, London 
SW3 and - for serious 
collectors of special cars - the 
first new Bugatti car designed 
since 1952 is available (for 
£285.000) from the Bugatti 
showroom at 49/51 Cheval 
Place, London SW7. 


The Antique Wine Company 
of Great Britain 

Par a most unique gift. wc will 
supply a fine bollk of vintage wine 
( Laionr, Lafiie Rothschild, etc.), 
from tbe exact yea: of the recipients 
birth together with the original issue 
of (be London Times' newspaper 
from the precise day. Elaborately 
presented and delivered worldwide 
within days. 

TEL: UK 0827 830707 
Fuu UK 6827 830725 
Tbu. nuz raora/FAX ftom thl USA 
1806 827 7153 
UiMCKONGOtnx 
PHONE OT3 0870 FAX 973 



Baume & Mercier 

gen£ve 

MAiTRES HORLOGERS DEPUIS 1B30 



From leading jewellers throughout 
the United Kingdom or for your 
nearest stockist please call: 


Tel: 071 416 4160 
Fax: 071 416 4161 











WEEKEND FT 


FINANCIAL TIMES 


WEEKEND SEPTEMBER 24/SEPTEMBER 1994 


FOOD AND DRINK 


H ow the customer forms 
his or her Gist - and 
perhaps most lasting - 
impression of a restau- 
rant is a question which all chefs 
must address. 

The hey criterion for me is the 
bread. Invariably, if the restaurant 
offers good bread, the rest of ttae 
meal will be a pleasure. 

Yet, like all the seemingly simple 
thing s in life, offering fresh, appe- 
tising bread twice a day presents 
chefs with one of their biggest chal- 
lenges. A challenge that incorpo- 
rates culinary skills, logistics, tim- 
ing and cost appraisal. 

At a busy restaurant, such as The 
Greenhouse in west London, the 
annual bread bill is £25,000, an out- 
lay which does not generate any 
obvious profit. Supplying bread to 
restaurants Is a highly competitive 
business in which suppliers are 
judged by the quality of the last 
delivery. 

Ideally, all chefs would like to 
bake their own bread but, aside 
from a shortage of skilled bakers, 
bread-making requires kitchen 
space and time. The dough has to 
be mixed, rested, proved, moulded 
and developed before being cat. 


Broking bread, 90s style 


baked and rested again. To he 
ready for the lunch service this 
work most start at 7am and be 
repeated again in the late morning 
for the dinn er service. 

In south London, Gordon Ram- 
say, the chef at Aubergine, Park 
Walk, London SW10. has decided 
Hmt he win bake his own bread, 
some 160 rolls a day. and is already 
aware of one of the pitfalls - that 
the staff 1 might eat it before it even 
reaches the restaurant customers. 

Other chefs who bake their own 
include: Pierre Hoffman, at La 
Tante Claire, In Royal Hospital 
Road, London SW3; Sally Clarke, of 
Clarke's in Kensington Church 
Street, London W8, who now has a 
separate bakery in Notting Hill 
Gate; and Michel Rous, at The 
Waterside Inn, Bray, Berkshire. 

Until the early 1990s chefs had 
two other possible sources of bread. 
The first was to deal directly with a 
commercial bakery and the second 


to bay in partly-cooked bread. 

But, however good the quality, it 
does mean that the first food a cus- 
tomer eats is made outside the res- 
taurant And because there is usu- 
ally only one delivery, bread that 
has been made at Sam and deliv- 
ered at 7am will be offered as late 


brokers”. 

It was founded by Gall Stephens, 
who grew up in Israel, trained in 
catering at Westminster College 
and went on to cook at the Garrick 
Club, in Covent Garden, London. 

A chance encounter at a food 
exhibition in Wembley, north Lon- 


Stephens’ day begins at 3.15am 
so that she can meet her drivers at 
Park Royal, in west London, at 
4am. AH the orders for the various 
breads are then made up. Tradi- 
tional Italian breads, pugttese, cta- 
batta and grissim are boxed along- 
side English farmhouse loaves, 


Where there's a product , there's a market — and our 
daily bread is no exception, says Nicholas Lander 



as 10pm to a customer. 

To some ex tent the problem can 
be solved by using part-baked rolls 
and breads wbidi are pre-cooked 
and warmed immediately before 
serving. But these rolls are bulky 
and present considerable storage 
difficulties for a small kitchen. 

A new option for chefs presorted 
itself in 1990 with the formation of 
Gail Force, London’s first “bread 




don, with a specialist baker who 
was unable to supply all the inter- 
ested ootids, led Stephens to real- 
ise that here was a market waiting 
to be established: uniting London’s 
small new bakeries with the 
increasing number of chefs and del- 
icatessens who wanted to offer 
high-quality freshly-baked breads. 

To make this market requires 
expertise and dedication. 


while French fiosUes. baguettes and 
baules de campagne nestle next to 
Jewish diollas. 

The best, from the ovens of Bak- 
ova, in Coburg Road, London N22, 
Neal’s Yard, in Covent Garden and 
Beverley Hills Bak ery, Brompton 
Road, London SW3, which makes 
American muffins, are then on 
their way to the tables of the capi- 
tal's restaurants and delicatessens. 


such as Riva, in Church Road, 
Barnes Randall & Anbiu, in 
Soho. 

Stephens’ comments on her work 
are succinct “It’s a crazy business. 
Most of our customers are in cen- 
tral London but rents and rates 
there are prohibitive. We have to 
work on the periphery and organise 
our deliveries as best we can. Every 

half hour lost at the beginning of 
the day results in 1% hours delay 
at the end of the morning. 

“Every chef wants their bread 
delivered at the same time, never 
tatw than 7 am, and they all want 
the best quality at the lowest {alee. 
I can offer a delivery of a second 
bake in the afternoon but that is no 
guarantee that I will keep the busi- 
ness. 

“One late afternoon Qnaglino’s 
needed 500' rolls and I drove 
through London with them straight 
out of the oven. There was so much 
steam that I had to roll the win- 


dows down to sec where I was 
going. Qoaglino s girt their bread 
butshortly afterwards I lost their 

a< Stephens believes that the "bread 
revolution" which Britain has 
undergone over the past five years 
wlH continue and the only way for- 
ward is to pursue quality. 

She has now invested m the bak- 
ing skills of Philippe Dadd and his 
new bakery. The Bread Factory, in 
Stanmore, Middlesex.which win 
imfcg three times a day, at A30am, 
030am and 3pm, and whose rolls " 
are already gracing the tables of 
the Rite and the Inn on the Park in 
central London. 

In spite of all the inherent prob- 
lems Stephens is delighted to be 
dealing with a product that is so 
fundamental to the enjoyment of a . 
good meal and our general well-be- 
ing. she would like to see a baker’s 
drills more widely appreciated, to 
be able to operate on bigger mar- 
gins herself and find the one sup- 
plier missing from her price list - 
someone who makes particularly 
good doughnuts. 

■ Gail Force. 336 West End Lane, 
London NWS 1LN. Tel: 071-431 
5469. fox 071-431 6725. 







ll|&L- 


v v. 


m 


G rapes are a best buy 
in Britain just now. 
and best of all are 
the sort called Italia. 
They can be black or 
white and many countries now send 
supplies to the UK but. for my 
money, only white Italia grapes 
from Italy are truly enticing. The 
fruit from other sources never 
seems half so plump, muscat-sweet 
and fragrant 

While the season lasts, I am 
happy to eat these grapes round the 
dock. For breakfast I will tuck into 
a bunch on its own, or halve and 
seed a handful of the fruit to add to 
a bowl of yoghurt together with a 
few almonds and perhaps a drizzle 
of honey. 

For lunch, what could be better 
than a hot, lightly-curried chicken 
or fish broth aromatised with lemon 
grass, poured over a spoonful or 
two of steamed rice, and finished 
with a floating garnish of soured 
cream crowned with a few peel- 


Cookery 


In the grip of the grapes 

They’re at their best just now, says Philippa Davenport - and the luscious Italia variety is best of all 


-ed grapes for a cool and silky con- 
trast 

One of my favourite salads at this 
season combines grapes with 
prawns, the latter seasoned with 
toasted and ground coriander seed 
and tom basil leaves and laid on a 
bed or shredded little Gem lettuce. 
Also excellent is a salad of creamy, 
mildly tangy goafs cheese with cos, 
Italia grapes and t o a st ed pine ker- 
nels. 

In France, a typical bonne bouche 
of the grape-picking season consists 
of chicken livers southed and tossed 


with a few peeled and pipped 
grapes, wanned in butter with a 
splash of wine and served on soft 
rounds of toast. 

Delicious for a snack lunch or as 
a fairly substantial appetiser at din- 
ner. 

Those who prefer fresh fruit and 
competes to puddings proper may 
share my pnthnsiaan for an end of 
summer fruit salad made simply 
with sliced bananas, halved and 
seeded grapes, plus plenty of freshly 
scooped melon balls dressed in a 
light lemon or lime syrup infused 


with a couple of sprigs of m int. 

VENDANGE CHICKEN 
(serves 6) 

Soothing and pure, this is a prac- 
tical choice for a small party as 
most of the work can be done 
ahead. But be sure to re-heat the 
chicken only briefly, as described. 
That way. the meat will remain suc- 
culent and fresh. Prolonged re-heat- 
ing always risks over-cooking poul- 
try. making it stringy and dull. 

The chicken poaching liquor is re- 
used here to produce a copious 
quantity of intensely flavoured 


sauce. Make the most of it by serv- 
ing the bird in a generous ring of 
rice that win soak up every drop- 

ingredients: a high-quality 
roasting chicken weighing about 4 
lb; 6 oz white Italia grapes; 2 
glasses dry white wine; a bunch of 
fresh tarragon; % pt doable cream; 
i oz butter; 1 oz plain white house- 
hold flour. 

Wash the chicken and put it 
a flame-proof pot, preferably oval, 
which wfll hold it snugly. Pour on 
enough hot, not boiling, imsaited 
water to cover the thickest part of 


the thighs. There is no need to 
immerse the breast Cover tightly 
and poach gently for 5960 minutes. 

Transfer the covered pot to a sink 
containing enough cold water and 
ice cubes to come halfway or more 
up the sides of the pot Leave the 
pot in the sink for about three 
hours, replenishing the cold water 
and ice cubes from time to time to 
speed the cooling process. 

When the chicken is cold, strip oft 
and discard the skin. Lift the flesh 
from the bones, wrap it in grease- 
proof paper to keep it moist and 


r efri g erate it Degrease the cooking 
liquor, return the bones to the pot. 
half cover and simmer until 
reduced to 1*114 pt intensely dnek- 
eny stock. Season. -chill and de- 
grease again. (Do everything up to 
this stage the day before serving.) 

Boil the wine until reduced by 
half, then mix it with enough stock 
to make about 1% pt in alL Make a 
sauce with the butter, flour, stock 
and wine mixture, with cream and 
s easoning s to taste. Cover to pre- 
vent a skin forming and set aside. 
Cut tiie chicken into bite-size, quill- 
shaped pieces. Halve and seed the 
grapes; peel them if you wish. Chop 
some tarragon. 

Shortly before serving, bring the 
sauce back to simmering point Add 
the chicken, cover, and simmer 
very gently for eight-10 minutes. 
Stir in the grapes and tarragon. 
Switch off the beat cover and leave 
to stand for five minutes. Check 
seasoning, idle into a ring of boiled 
rice, and decorate with tarragon. 


Y.-> 

12.* 


5.19 i-“* 

- 

5 . 3 s fr'-’.V.- 

s.4 O '• 

*10 I 5 -"*' ' 


7.10 


8.00 C-n." 


8.50 tfs* ■ ! , 


10.50 H* 1, ' 

H Th.- 0JW’ ' ' 
12.40 Fim Su •; 


>v » 
U.' 1 ; •• 

120 

125 Cl'"*' 


7 jo r», ■■ 

7.40 n* 

lost wici • 1 '■/ ■ 

Htr tOJC . -< : r 

12.00 CihwW> 

1Z2S W.mim • ■. 

Noun 

12.30 Hjrry .»-.l rr- r- 
1.00 C.K«i’iwi 
1X5 Slov'-r? • 

tvn. 

1.50 

2.50 FNiIi. ri-i-V V.i . 

0v* Mui&i’- lVr‘ 

fn;V..j . :i. . . 

4-25 Junior M.»:! . 

Got. *.i . . 


Liqueurs /Giles MacDonogh 

Give me a 
Hot Monk 


T astes change. In the 
late 19th century 
sweet liqueurs were 
all the rage. It was a 
time when the idle rich drank 
themselves to death on power- 
ful. sugary brews such as 
green Chartreuse or Bftncdic- 
line. 

In the German painter 
George Grosz's autobiography 
we learn that even the inhab it- 
ants of Pomeranian Stolp. now 
Polish Slupsk. could, for as lit- 
tle as a mark, obtain powders 
which transformed crude 
schnapps Into Chartreuse or 
Benedictine. Later as an art 
student in Dresden Grosz met 
a dreamy former schoolmaster 
who introduced him to Kloster- 
likar, which looked Uke “thick, 
yellow glue” and tasted like a 
blend of brandy and syrup. 

The pot-bellied bottle’s col- 
ourful label and imitative seal 


A Magnificent Cellar 
2 “ September l ,, ‘M 
Pu.ib.ibh - 1 In- liiu-M 4 1 id miwt 
ouriiwi - pm. iK- tL’Iljr in 
Gi-muiiY in If rnmigurd tor vile 
.11 Christ ii - -- Fine CLirct unhiding 
an improi-.-di.-mi-.! mii^c ui'Lrcv 
hunk- m/o* nre Vqucm. 'LILA'S 
■ind VmtjgL- Pun. From tho (.-elfin 
01" li.iron ton Kitlilni:iiin. HehliW 
K.imhnl; l : >>r any enquiries 
pli-JH - o 'in jet Wna- LVpt. 

Til: *tlT| 1 38*i 2"VI 
Fjk: ( 1170X3' I 


poct'ort . m prawwMfr, 
alotoF BeNEoicriNe , 
Apip is 


gave the impression that it had 
been culled from some monas- 
tery or other. “The image of a 
fat, chummy monk drank our 
health." 

If the number of imitations is 
anything to go by then Bene- 
dictine must have been one of 
the most popular drinks in the 
world on the eve of the first 
world war. In the Palais Bene- 
dictine. in Fecamp, northern 
France, there is a vast pyramid 
composed simply of counterfeit 
bottles drawn from every cor- 
ner of the globe. I presume that 
somewhere in that heap is the 
bottle which Grosz eqjoyed in 
his art school days while he 
put the world to rights with his 
friend. 

Benedictine was the bright 
idea of a Norman wine mer- 
chant called Alexander Le 
Grand. He came across the rec- 
ipe for a monastic elixir appar- 
ently invented by a Venetian 
monk at F6camp Abbey in the 
early 16th century. Le Grand 
reworked the recipe giving it 
that sweet, viscous quality 
which was the most memora- 
ble aspect of German imita- 
tions. 

In 1863 he launched Benedic- 
tine. It was an overnight suc- 
cess. Three years later he 
founded a public company to 
sell the liqueur. In 1881 it was 
quoted on the Paris bourse. 

By the turn of the century Le 
Grand had made such tremen- 
dously big profits that his 
humble house had metamor- 
phosed into a little Chambord, 
stuffed to the oesophagus with 
works of art harking back to 
the age of those self-same 
monks who had contributed so 


unwittingly to his fortune. 

Ne’er-do-well sons and 
French succession laws 
wrought the usual havoc. B6n- 
Cdlctine was eventually bought 
by Martini vermouth which 
was, in its turn, swallowed up 
by Bacardi rum. 

The drink, we are told, is 
much the same. It is made 
from 27 different herbs and 


Giles MacDonogh 
rediscovers the 
joys of a sticky 
winter drink 


spices: aloes, ambrette (a sort 
of amber-like hibiscus deriva- 
tive!. angelica, apricot kernels, 
arnica, maidenhair fern, mel- 
issa, cardomom. cinnamon, 
cloves, coriander, hyssop, juni- 
per. lemon peek myrrh, nut- 
meg. pine kernels, saffron. tea, 
thyme and vanilla. 

From these wonderful ingre- 
dients a number of distillates 
and flavoured alcohols are 
made which are subsequently 
assembled together with syrup 
and honey (to give it the sweet- 
ness) and saffron and caramel 
(to give it colour). The brew is 
then heated and aged in cask. 
It takes about two years to 
make a bottle of Benedictine. 


Appetisers 

Fine Pinot Noir at £4.99 


N ot long ago ‘afford- 
able Pinot Noir’ 
was rightly 
regarded as an oxy- 
moron. Today it is quite possi- 
ble to find charming, fruity, if 
relatively lightweight, Pinots 
from California for less thaw 
£5. 

Oddbins has done more than 
most to track them down and 
Its Havenscourt Pinot Noir at 
£4.99 has considerably more 
interest (and less obvious 
sweetening) than most. 

Bat now they can also field 
a fine Pinot Noir at the same 
price from Chile, previously 
terra incognita as a source of 
delicate Pinot fruit Hearty 
congratulations on Cono Sur 
Pinot Noir at £4.99 which 
shows all of the Jewel-like 
appeal of simple young Pinot 
The Reserve version is £5.99 
and is also stocked by Tan- 
ners, of Shrewsbury, Shrop- 
shire, but at the moment the 
cheaper wine is the more 
charming. (I assumed that 
Cono Sur was a pun. which 
only goes to show my igno- 
rance of Spanish; it means 
’southern cone' apparently.) 

Janas Robinson 

ODD 

An indication of how strongly 
the restaurant industry is 


Few people like the taste of 
neat Bdnfittictine these days. It 
is a little like drinking liquid 
gingerbread. In America the 
most popular way of consum- 
ing the liqueur is with brandy 
(a B and B) and the company 
now bottles a ready-mixed ver- 
sion which accounts for a large 
percentage of sales in the US. 
The brandy goes some way 
towards cutting the sweetness 
of the Benedictine. 

Bdn^dictine also combines 
well in cocktails. One of the 
more successful long drinks I 
tried in the bar of the Palais 
B&fedictme was with a good 
slug of Benedictine combined 
with half orange and half 
grapefruit juice. 

Benedictine is apparently 
popular in some parts of Lan- 
cashire where it is drunk with 
hot water in a drink called 
“Benny and Hot". Sometime 
during the first world war a 
Lancastrian regiment was 
removed from the Western 
Front and sent to recuperate 
near Fecamp and this curious 
brew was born. Better. I think, 
is a Hot Monk which involves 
pouring hot lemon juice over 
BfoiSdictine in the manner of a 
toddy. Best of all. I’ve found, is 
a Scotch Benny; a blend of 50 
per cent Benedictine with 50 
per cent blended Scotch 
whisky. It is the perfect winter 
warmer. 


SOLERA & VINTAGE 
MADEIRA 

Over 600 bottles in slock, 
18l4tol974. 

PATRICK GRUBB 
SELECTIONS 

Tel: 444 (0) 869 340229 
Fax: +44 (0) 869 340867 


growing is provided by tire 
first issue of Tandoori, a maga- 
zine for the 7,500 Indian res- 
taurants in Great Britain. It is 
now estimated that there are 
menu Indian restaurants in the 
UK t han in Bombay or Delhi 

The magazine, founded by 
Karan BfUmorla, who estab- 
lished the successful Cobra 
Indian beer brand in the UK 
and its editor, Iqbal Wahhab, 
who set up East West Commu- 
nications, to promote the 
growth of ethnic foods, 
includes features on how to 
market a tandoori restaurant 
and hOW Bangladeshi misinn 
may develop In the UK. 

Ihe publishers will no doubt 
be hoping to emulate the suc- 
cess of Patak, a company 
which makes Indian spices in 
Wigan, Lancashire and was 
named by Marketing magazine 
as the fastest growing brand 
in the UK last year with a 92 
per emit growth in retan sales. 

Nicholas Lander 

□ □ □ 

Wine lovers should take 
advantage of the extremely 
serious wines Italy has been 
able to produce from recent 
vintages. Lea & Sandeman, of 
Kensington Church Street, 
London W8 (071-221 1982) has 
a special offer of 1990 Super- 

[f you wtie stimulated by 
last Saturday's 
TNVBSriNG IN WINE" 
ankle or wise to add to your cellar 
for your own enjoyment, 
please contact- 

Teter < Wy£iefme^Vvies 
Ptymtree Manor, 

Plymncc. Devon, EX15 2LE 
Telephone (0834) 27755S 
Fax (0884) 277557 



toscans, of which n Pergole 
Torte is a star at £2L74 while 
Oddbins Fine Wine Siopo have 
fallen in love with Rocca Albi- 
no's 1991 Piedmont range, 
including two stunningly 
seductive Barbarescos, Vigneto 
Loreto at £124)9 and Vigneto 
Brich Ronchi at £1339. JR 

□ □ a 

Following the opening of its 


organic wholefood . shop in 
Yaohan. Plaza, Colindale, 
north west London, the Japan 
Centre group has opened 
another shop in the capital at 
212 Piccadilly. 

Foods include: organic shi- 
take mushrooms, tofu, fresh 
seaweed, sun-dried fish and 
squid, green and wheat tea, 
bonito flakes, noodles, pickled 
vegetables, seasonings, dress- 
ings and vinegars. 

Also available are sea vege- 
tables such as nori (for sushi 
making) and instant wakame 
for miso soup. For those who 
want to give raw fish a miss, 
vegetarian lunch-boxes are 
freshly made to take away. 
Also on sale are Japanese 
bowls and cookbooks. 

■ The Piccadilly Wholefood 
and Bookshop is open seven 
days a week Mon-Sat 10am- 
7.39pm and Sun lttam-fipm. 

JiB James 


WANTED 

W ewfflp ay auction hammer prices. Payment nnmfiae. 
Please Idepfaono Patrick Wilkinson 071 -267 1945 

WtLKJNSQN VNTNERS UMffED 

P 1 ™* Wne Merchants 

CflnBtanSna na London NW3 SLN 


Yquem, Claret 
and 

Vintage Port 
Wanted. 

Cash Paid 

Tel: 0473 62 $072 

Fsx 0473 62 60 04 



5>.» 

■ ■* 

SC 4 '.; ■ " 


' 






Vins de Bourgogne 
For stockists, 
tet 071-409 7276 


*«0 V™ 

•• 





WDRKEND FT XXI 


FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


TELEVISION 


CHESS 


SATURDAY 


730 LascJo. 735 News. 7 an Phn. 7 <k 

BWlMjoy. 7.45 Mortem Mafewa hwe»to«as ?836 

Urea o» Supermen. &15 Live and kfcMng. 

12.12 Weather. 

12.15 Grandstand. Introduced by Steve 
RUer. Including at 12.20 Football 
Focus; European Cup preview. 1.00 
News. 1.05 Motor Racing: The final 
qualifying session for the Portuguese 
® rond W*' 1*2S Racing from Ascot 
The 1.30 Diadem Stakes. 1.40 Motor 
Sport The concfudtog rounds of the 
Brilhh Toeing Car Championship. 

£2? SEttf ^ z 05 FMas' Mile 
(OW Mile). 2.15 Motor SporL 2 .35 
Racing: The 2.40 Tote Festival 
Harvficap and 325 Queen Elizabeth 
H Stakes (Old MDe). 3.45 FootbaH 
Half-Times. 155 Racteg: The 4.00 
Royal Lodge Stakes (Old MUe). 4.10 
Athletics: Work! Half- Marathon 
Championships from Oslo. 4AQ 
Final Score. Times may vary, 

6L1S Cartoon. 

BAS News. 

B-35 Regional No ws and Sport. 

&40 Stay Toonerfi 

6-10 Bruce Forsyth's Generation Game. 
Bruce Forsyth, assisted by Rose- 
marts Ford, introduces another edi- 
tion of the tardy game show. 

7.10 Challeng e Annate. Anneka Rice 
attempts Go convert a disused fish- 
ing boat in Holyhead Into a play 
area for children rn the Lake District. 

8.00 Casually. New nurse Jude offers 
advice to a victim of multipie sclero- 
sis, and a rookie policeman's career 
te put on the line after what 
appeared to be a routine arrest has 
tragic consequences. 

aso News and Sport; Weather. 

0.10 Fftre Mad Max Beyond Thunder- 
dome. Wandering warrior Mel Gib- 
son arrives in a cut- throat 
community searching tor Ms stolen 
vehicle and falls foul of the dic- 
tator, played by Tina Turner. Futuris- 
tic adventure, with Robert Grubb 
(1955). 

10^0 Match of the Day. Highfights of two 
matches in the FA Premiership, and 
goals from the day's other fixtures. 

1155 The Danny Baker Show. 

13L40 Fibre Rude Awakening. Two 

hippies avoid conscription by hiding 
out in South America for 20 years, 
but get a shock on their return to 
New York. Comedy, with Cheech 
Marin (1989). 

2L20 Weather. 

2^6 Close. 


MO Open Untareity, 13.18 pm FBm: The Big 
Parade of Comedy. 

i.4« The PM Sttvers Show. 

2.10 Timowateh. Women dscuss how 
the contraceptive pin has affected 
their sexual and working lives. 

ISO Film: fGnotehka. Vintage comedy, 
starring Greta Garbo as a Paris- 
based communist agent who feHs 
for a wealthy bachelor. With Metvyn 
Douglas (1939). 

4-4S The Sky at Night. Patrick Moore 
conducts a tour of the autumn sky. 
Shown last Sunday on BBC1- 

6.03 Animation Now. 

B.15 TOTP2. 

6-00 Late Again. Highlights of last 

week's editions of The Late Show. 

8-40 What the Papers Say. Ian Histop 
reviews the week's press. 

6JJ3 News and Sport; Weather. 

7.10 Developing Stories. Haitian fBm 
director Raoid Peck tous Ms Island 
home. He pays tribute to Its peo- 
ple’s resilience in the face of over- 
whelming political and ctvfi chaos. 

8.00 The Director's Place. FHm by 

renowned American director Susan 
Seidefman, whose experience of 
growing up in the rigidly conserva- 
tive atmosphere of 1960s America 
has profoundly in fl u e nced her work. 

In this frank documentary, she 
reflects on her suburban childhood 
and uses black-and-white 
sequences to recreate scenes from 
her days at high schooL 

850 One Foot in the Past Jonathan 
Meades searches for examples of 
Baroque architecture. 

OlOO Knowing Me. Kncnvfng You - WUh 
Alan Partridge. 

830 EBxabetti 8 Second pert of the 
award-winning drama about the Bfe 
of Queen Btzabetti I. The new queen 
finds herseif under pressure from 
parliament to many and produce an 
heir. Steering Glenda Jackson, Ron- 
ald hfines. Robert Hardy, Esmond 
Khight and Vivian Pickles. 

11.00 The Moral Maze. A selected panel 
debates topical dBemmas. 

1145 Ffcre Caged Hoot. Jonathan 

Demme's tongue-in-cheek prison 
drama about inmates at an aB- 
women penitentiary who go on the 
rampage. Juanita Brown stare 
(1974). 

1.10 Fast Forward. 

1.40 Close. 


0.00 GMTV. ftS Whet's Up Doc? 1149 The FTV 
Chart Show. 1280 pm The Ltttieat Hobfr 

l.oo ITN News', weather. 

1.05 London Today; Weather. 

1.10 Champions' League Special. A 
look ahead to next week's group 
matches in Europe's premier dub 
competition, Including Galatasaray v 
Manchester United. 

1.40 Movies, Games and Videos. 

Review of City Stickers lb The Leg- 
end of Curly's Gold, which reunites 
Bflly Crystal. Daniel Stem and Jack 
Palance. Also, the video release of 
Philadelphia, staning Tom Hanks. 

2.10 WCW Worldwide Wrestting. 

2J50 Life Goes On. 

MO Burke s Law. 

4L4H5 ITN News and Results; Weather. 

806 London Today and Sport; 

Weather. 

815 Baywateh. Part two. ketch's ordeal 
continues - wffl he ever break free 
of Ills captors? 

805 Gladiator*. Contenders from Liver- 
pool, Jersey. Essex and Leeds chal- 
lenge the might of the 
muscle-bound warriors. 

7.05 Barrymore. Boxer Nigel Bern. 
American rock V roller PJ Proby 
and singer Emma Leigh join award- 
winning funnyman Michael Barry- 
more for an hour of music and 
comedy. 

805 Tarrant's 10 Years on TV. 

838 ITN News; Weather. 

845 London Weather. 

850 FOm: White Goods. Comedy about 
two families whose friendly rivalry 
during a TV game show escalates 
frits aU-out war. Ian McShane and 
Lenny Henry star. 

1050 Big Fight Special. JuUo Cesar 

Chavez v Maidrick Taylor. Ringside 
coverage from Las Vegas as the 
long-standing rivals dash again for 
the WBC Light welterweight crown. 
Introduced by Jim Rosenthal 
11.60 Fflnr The Shadow Riders. Two 
brothers who Fought on opposite 
sides in the American CfvB War have 
a painful reunion with their family. 
Western drama, with Tom Seileck 
end Sam Elliott (TVM 1962). 

1-36 Love and War; UN News Head- 
Hoes. 

2.05 Tour of Duty. 

800 The Big E. 

855 European Ifine-Bal Pool Masters. 

<8S5 6PM. 


CHANNEL4 


SjOO 4-Ttf on View. 8-30 Early Marring. 946 BSiz. 
1130 Gar-tern Footta* kda. 1200 Sign On; Deaf 
Wortd. 1230 pm The Greet Mentha, pngfafi aubtt- 
Ilea). 

1.00 FBm: Goodbye Mr Chips. Peter 
O'Toole plays a shy, retiring school- 
master who woos a pretty singing 
comedy star (Petuia Clark). Terence 
Rattigan's romantic musical remake 
of James HBtcn's classic story, also 
staring Michael Redgrave, George 
Baker and Sian PhHBps. Part of the 
Look Who's Talking season (1969). 

840 FBm: Sarah (The Seventh Match). 
The adventures of a youngster who 
takes refuge In a lores* after the 
Nazis take her parents away. Voiced 
by Mia Farrow (1981). 

4wSO When Magoo Hew. Oscar- winning 
animation, voiced by Jim Backus. 

805 Broofcside Omnibus; News Sum- 
mary. 

830 Right to Reply, viewers' comments 
on recent TV programmes. 

7.00 The People's Par lia ment Public 
debate on whether able-bocBed peo- 
ple who have been out of work ter 
more than six months should be 
made to do community work. 

Chaired by Lesley Rkfdocfi, with 


800 FBm: The Longest Day. Epic sec- 
ond wortd war adventure recreating 
the Allied landings in Normandy on 
June 8 1944. John Wayne leads an 
al-star cast, including Richard Bur- 
ton. Kenneth More, Sean Connery, 
Rod Steiger, Henry Fonda and Rob- 
ert Mitchum. Part of the None But 
the Brave season (1962). 

11.15 Late Licence, Introduced by Marik 
Lamarr and Rhona Cameron. 

11.20 Sting: Live In Oslo. Recorded 
concert footage featuring tracks 
from the British singer-songwriter's 
best-selling album Ten Summoner's 
Tales, as well as hits from his days 
with The PoBca 

1.25 Herman’s Head. 

1.56 Wax on Wheels. Ruby Wax meets 
the UK’s first female bomb dfeposal 
officer. 

2 -40 This is David Harper. 

810 Packing Them In. 

850 Close. 


REGIONS 


mr REGIONS AS LOUDON DCCST AT TKSH 


1230 Manu, Games and Videos. 1.0S News. 1 40 
Nigel Mansefl's IncfyCrr W. 2.10 Dreams of Grid: 
The Mel Fisher Story. (TVM 1966) 346 Knight 
Rider. SOfi News and Sport BAB Weather. 11 -SO 
Tradutown: Fkidnfl the Goodbor KHIer. [TVM 1983) 
C8NTTML: 

1230 America’s Tap 10. IAS News 2.10 Cady's 
Web. (1887) 430 WCW Woridwida Wresting. 5-05 
News 5.10 The Control Mach - Goals Extra. 11.50 
Cfeema, Cinema, cinema. 

ClUIBBLi 

11.30 COPS. 1200 The rTV Chart Show. 1.05 
Channel Diary. 140 Nigel Mansers IndyCar *94. 
210 SM the World Specfai. 240 The Everest 
Marathon. BAB Krigri Rider. 535 News. 5.10 Put- 
An's Plafijca ii JSO Wyatt Earp: Walk «rim a Leg- 
end. 

fMI AMMAN- 

1230 Spore. 136 HeadBnes 140 Teteflos. 210 
Donnie Murdo. ZAO CUirm Orinne. 3.00 Zono. 
330 Mgal Mansers IndyCar *94. MO Superstars 
of WriMlng. 5.05 HeKSnes 5.10 News Review. 
8.46 WOather. 1130 Tra c fodown: Hntfng the Good- 
bar KBar. (TVM 1883) 

QfMKMMl 

1230 Movies- Gamas and Videos. 1-05 News 140 
Mgal ManseTs IndyCar '84. 215 The lea Pirates. 
(1984) 4.00 Superstars of W ra sttng. 630 News 
636 Goals Extra. 1130 Trackdown: Ftncfing the 
Goodbar K Ber. (TVM 1983) 

HIV: 

1230 Movies, Games and Videos. 135 News. 140 
Nigel ManaaTs IndyCar *94. 210 1992 HZ Surt 
Lifesaving Chsnpionshlps. 240 Cartoon Tbm. 230 
The A-Team. 345 Krvght Factor. 635 News and 
Sport 8-45 Weather. 1130 Trackdown: Rnring the 
Goodbar KBar. (TVM 1983) 

HTV Wafas ae HTV except: 

1230 The Gen. 

■ “H IIW- 

1130 COPS. 1200 The ITV Chart Show. 135 
News. 1.40 Nigel ManseTs tndyCar '94. 210 Sal 
the WOrid Special 240 The Everest Marathon. 3-45 
Kright ftider. 636 News. 6-10 Cartoon Tima. 1130 
Wyatt Earp: Walk with a Legend. 

SCOTTISH: 

1230 Extra Time. 135 Scotland Today. 140 Teto- 
flos. 210 Cower Gfcta. (1871) 335 Cartoon Time. 
240 Sons and Dmjghtera- 4.10 Taka Your Pick. 
4-40 Cartoon Time. 535 Scotland Today 8-45 
Weather. 113 0 Pressure Print. (TVM 1977) 

TYME i mate 

1230 Mowtoo, Games and Videos. 136 News. 1.40 
The Mountain Bata Show. 210 Cany On Nurse. 
(1969) 246 Knight Rider. 536 Tyne Tees Saturday 
1130 Cutosfty Kite (TVM 1990) 

WBSTCOUNTRY: 

1230 Movies. Games and Videos. 135 News. 1/JO 
Itigel ManseTs IndyCar 94. 240 The A-Teem. 246 
Oinosaus. 4.15 The Mountain Bta Show. S3S 
News 246 Weather. 1130 Trackdown: Rnring the 
Goodbar K»er. (TVM 1983) 

YORKSHIRE: 

1230 Movies. Gamas and Videos. 135 News. 1/40 
The Mountain BAs Show. 210 Carry On Nurse. 
(1969) 3 j 43 Knight nd*. 535 News. 210 Score- 
line. 1150 CuMy Kite (TVM 1990) 

84 C Mm as Choanal 4 touwpt- 
730 Early Morning. 1230 Clasa Action. 830 
Newyddon. 6v46 Tocyn Tymor. 7.40 CTMor MkW- 
iki. 215 Cain Qwted. 215 Uygaid Sgwar. 240 Doe 
Hritywood. (1991) 1136 Fanny and Alexander. 




SUNDAY 



j BBC1 ] 

3 BBC2 

m LWT 

| CHANNEL4 | 

| REGIONS J 


730 DUty the Onoeour. 735 King Graenflngara. 

7.40 Ptaydays. 630 Blood and Honey. 216 Break- 
fast with Frost 216 Morning Worship. 1030 Sea 

Haorl 10.30 Rim: Tnrka the Otter. 

1800 CouitryFfe. 

1829 Weather for the Week Ahead; 
News. 

1830 Harry and the Hen de rsons. 

1.00 Cartoon. 

1.0S Steven Spielberg's Amazing Sto- 
ries. 

1.30 EastEndera. 

2-90 FUm: Perry Mason: The Case of 
the Murdered Madam. Peny Inves- 
tigates the murder of a beautiful PR 
agent. Crime thriller, starring Ray- 
mond Burr (1987). 

4.29 Junior Ma^erehef. Competitors 
from Maidenhead. Weybrtdge and 
Woking are judged by Duncan 
Goodhew and Afrtsley Harriot 

855 The Great Antiques ►tent Contes- 
tants visit Brighton where they shop 
lor coflectibies at a car boot sale 
and become tour guides at the 
Pavilion. 

8.40 The Clothes Show. An updated uni- 
form for Shrewsbury's town crier, 
profiles of three up-and-coming 
menswear designers, a new hairstyle 
by Trevor Sorbie and fashions for 
the autumn. 

80S News. 

0.25 Songs of Praise. 

7.00 SmallTalk. 

7-30 Birds of a Feather. 

800 Paul Merton's PeNadtam Story. 
Second of two specials tracing the 
history of the London theatre, featur- 
ing archive footage of Helen Shap- 
iro, CM Richard and Grade Fields. 

9.00 News and Woather. 

0.20 Screen One: Meat. Daniel Boyle's 
tragic love story about a teenager 
whose alfair with a prostitute is 
threatened by her jealous pimp. 
Starring Jonny Lee Miller and Sareh- 
Jane Potts. 

10.45 Everyman, investigation into the 

Dead Sea Scrofts, the religious writ- 
ings of an ancient Jewish desert 
community whose content is 
cause of controversy among modem 
scholars. 

1136 UK Danes. New series. The 

Amateur Latin section of the 1994 
Championships, from the Bourne- 
mouth International Centre. 

1815 Fflnr. The Winchester Conspiracy. 
Fact-based drama about a secret 
operation mounted by the Australian 
Federal and New South Wales 
police forces and the Mafia Gerald 
Kennedy stars (1390). 

1.45 Weather. 

1.00 Close. 


816 Open University. 210 Juniper Jutfa 836 

Sflaa. 930 Eefciha Cat. 1215 What's Tint Noise? 

1040 Grange H*_ 1135 Growfrig Up Wld. 1130 

Bay City. 1L46 The O Zone. 

1800 Siaiday Grandstand, introduced by 
Sue Barker. Inducing at 1205 
Yachting: The British Match Racing 
Championships from the Royal 
Southampton Club. 1250 Motor- 
cycling: The final rounds of the 

Supercup Championships from 

Brands Hatch. 1.40 Motor Racing; 
Live coverage of today's Portuguese 
Grand Prix from Estoril. 245 Motor- 
eyeing. Times may vary. 

815 Rugby Special. John Inverdafe 
presents this weekend's Ctub 
Championship highfights from 
England and Wales. 

815 One Man and His Dog. New series. 
Top handlers from around the coun- 
try. beginning with Scottish entries 
Alex Waugh, Jock Welsh and Aias- 
dair Macrae, oompete tor the presti- 
gious trophy at Buttermere In the 
Lake ObtricL 

730 The Money Pro g ramme. Richard 
Watson reports cm attempts to pri- 
vatise the nuclear power industry 
and asks whether such a move 
would stave off job losses and usher 
fri a golden age of cheap energy. 

730 The Car’s the Star. New series. 
Quentin Watson charts the history of 
classic cars from the 1950s to the 
1970s, beginning with the Ford 
zephyr. 

800 Pladdo Domingo's Tates From 
The Opera. The second of four pro- 
grammes fotows the renowned 
tenor as he prepares for his role in a 
production of PuodnTa La Bohdme. 

800 Monty Python's Flying Ctrcus. Vin- 
tage surreal comedy. 

830 Reputations. The controversy sur- 
rounding German doctor and mis- 
sionary Afeert Schweitzer, whose 
humanitarian reputation was 
tarnished In the 1960a by allegations 
of racism. 

1030 Grand Prix. Highfights of the 

Portuguese Grand Prix from Estoril, 
which Damon Hffl needed to win to 
maximise his chance of catching 
Michael Schumacher. 

11.10 FHm: Paris Trout Premiere. Dennis 
Hopper plays a racist businessman 
whose brutaJ muder of a young 
black woman and ha* daughter 
gradually erodes his sanity. Powerful 
drama, with Barbara Hershsy (1991). 

1238 dome. 


830 GMTV. 830 The Disney Club. 10.15 Link. 

1030 Sunday Mature. 1130 Morning Wontfe- 

1200 Sunday Matters. 1230 pm Crosstalk: 

Weather. 

1.00 mi News; Weather. 

1.10 Walden. New series. Brian Walden 
talks to Paddy Ashdown. Liberal 
Democrat leader. 

2.00 COPS. 

9 M Fibre HarmKmi Italian -American his- 
torical dframa. starring Victor Mature 
. as the Carthagfritan general who led 
his troops and elephants over the 
Alps to attack Rome (1959). 

430 Film: The Cheap Detective. Neil 
Simon's crime spoof satirising clas- 
sics such as The Maltese Falcon 
and The Big Steep. Peter Falk stars 
(1978). 

800 London Today; Weather. 

820 ITN News; Weather. 

830 Dr Qulnre Mecfldne Woman. On 
Christmas Eve, Dr Mika is visited by 
the spfrrt of an old friend who takas 
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through past, present and future. 

7.30 Heartbeat Nick and PC Ventress 
pom as fishermen to investigate 
reports of smuggling in Whitby, 
while a patient asks Kate to perform 
an IBegai abortion. 

830 You've Been Framecfi 

9.00 London's Burning. Bay's attempts 
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ter and Haflam receives a proposi- 
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Recall worries about his son's way- 
ward behaviour. 

10.00 Hale and Pace. Offbeat skits. 

sketches and songs, with guest star 
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1030 ITN News; Weather. 

1840 London Weather. 

10.45 The South Bank Show. Profile d 
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11.45 You’re Booked! Interviews with 
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RADIO 


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124G FBm: The Fafien IdoL Classic crime 
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2^0 Scherzo. Animated film set to Mah- 
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800 Fantastic Person. Short animation 

810 News Summary. 

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5.40 Film: The Higher Mortals. Premiere. 
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(1993) 

7-00 Equinox. A report on the design, 
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800 Chiefs Bye. Three teenagers set off 
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journey to 10 Downing Street meet- 
ing other youngsters along the way 
who present their own rimed reports 
on the state of the nation. In London 
they win confront the prime minister 
with their findings. 

830 Roseanne. FamBy loyalties are 

strained when OJ is caught borrow- 
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control of the diner. 

1800 Fine The Commitments. Premiere. 
Musical comedy, starring Robert 
Artdns as an enterprising young 
DubOner who assembtea a motiey 
crew to form a sod band. With 
Andrew Strong (1991). 

12-10 FHm: Black Rowers. A British 

fflm-makar vtetts Argentina to direct 
a movie about a woman whose hus- 
band disappeared during the days 
of the mJHtaiy junta. Drama, with 
Vanessa Redgrave (1993). (English 
subtitles). 

2.05 Close. 


riv reemn as lomdon excs»t at these 
n-fii 

ANGLIA: 

1230 Bodyworks. 1256 Nows. 200 Cartoon Tima. 
205 Laker Girls. (1988) 330 Perfect Gentlemen. 
(TVM 1978) 935 HoHoom. 835 News on Sunday 
1240 Weather. 1146 Street Legal 
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1230 Newsweek. 1236 News 200 Gardening 
Tima 230 The Central Match - LM 435 ffl! Ihe 
Town. 535 Father Dovring Investigates. 8.16 News 
11/46 Prisoner Cell Block K 

GRAMPIAN: 

1130 Sunday Sendee 1145 Scon. 1280 Garden- 
el's Wary. 1235 Headbiee. 200 Scotsport. 215 
The Mountain Bike Show. 345 Conference Report 
4.15 The Ministers Today. 4-40 Pick a Nunber. 
5.10 Movies. Games and Videos. 240 The Busi- 
ness Gome. 210 Appeal 216 HeadUnes 1240 
Weather. 11/45 Prisoner. Cel Block H. 

GRANADA: 

1225 Close to the Edge. 1265 News 200 Hat 
Wheels. 230 Rockspon. 260 The Match. 530 Or 
Quinn; Merficine Woman. 215 News 0-30 Corona- 
lion Street. 11/45 Prisoner. Cel Block K 

Hite 

1226 The Uttiest Hobo. 1255 News. 200 United 
Edition. 230 SuvnaL 200 The West Match. 230 
Carry On Jock. (1963) 215 Country Watch. 5-46 Up 
Frontl 215 News. 1240 Weather. 11-46 Prisoner 
Ceil Block H. 

HTV Wales as HTV ess o epti 

1235 Primetkne. 200 Ufa Botfns AL 200 Soccer 
Sunday. 215 A Sice of Ufa 6-45 Otnosaixs. 

MERIDIAN: 

1230 Seven Days. 1250 News. 200 Wonted Deed 
or Akve. 230 The Meriden Match. 215 Cony On 
Behind. (1976) 446 highway to Henan 245 The 
Wage. 215 News. 11-46 Serve You Itiflht 
SCOTTISH: 

1130 Sunday Service 11/45 EBmn. 1230 Skoosh. 

1236 Scotland Today. 200 Scotsport 215 Earth 
Star Voyager. (TVM 1888) 5-40 Dbrosam. 210 
Scotland Today 215 Appeal. 1240 Weather. 1245 
Conference Report. 11.16 Scottish VOiouL 

TYME TEE8> 

1225 Conference FSb. 1266 News. 200 Hgliwsy 
to Heaven. 330 The Amazing Coptnln Nemo. 
(1978) 436 Ohrosaua. 530 Anbrad Country. 550 
Weekend. 10-40 WWKher. 11-45 The Powers That 
Be. 

ULSTER: 

1230 Gardening Time. 1255 News 200 Kim. (TVM 
1984) 430 PoOce Six. 440 lAntar. She Wrote. 
5-40 Gfenroe. 210 Witness. 218 Newa 1240 News 
11-46 Air Combat 
WESTCOUWTHY: 

1230 Update. 1236 Newa. 200 Hot Wheels. 230 
GabWsstoneo, Cottages and Gastias. 3JX> The Waf- 
lay of GwongL (1988) 430 BkxxWng MetveRoua 
220 Murder, She Wrote 215 News 1040 weather. 
1143 Prisoner. Cefl Block H. 

YORKSHIRE: 

1225 Nawrang. 1250 Newa 200 t-flghway to 
Heaven. 330 The Amazing Captain Nemo. (1978) 
435 Dinosaurs. 930 Animal Country. 530 Calendar 
10-40 weather. 1145 The Powers That Ba 
S4C IMm M CtaMel « ante op fc - 
236 Saved by the BetL 205 Katie and CHWa 235 
Mighty Mouse 030 Ftawhlda 1030 Babylon 6. 
1245 Mark and Mindy. 1.15 Rodeo's Modem Lite 
145 Equinox. 030 Stolen. 230 Pobal y Own. 730 
Hapus Dyrfa. 730 Yn y Tadu. 830 Cymni: (Mad y 
Can? 290 Newyddon. 255 Saflh Ar y Sd. 215 Ar 
Oertyn DydtL 830 ChAfs Eye. 1030 Vha Zapata. 
(1952) 


SATURDAY 


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mn Open Urtvcraiy Tjfclnn 
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10.15 Hecord Rcteasd- 
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1200 Spell ol the Ago 
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anil Viniaire Yoam. 

200 Jn= Kiword Requests. 
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246 Muwc LVinere. MuMel 
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230 Norma. BoWnfi opera. 


930 Short Story: Sukie. By 

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210 The Forming Week. 

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205 Dirty Tockk. 

630 The Breakfast Progr am me. 
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1136 Special Ass&menL 
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1200 Midday Edition. 

630 Sports Report. 

206 Six -O- She 

735 Saturday Edtion. 

935 Arfan Perspective. 

296 Out TTfe Week 
1035 The Treatment. 

1130 Mght Extra 
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930 Brian Kay"* Sunday 
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130 The BSC Orchestras. 
Bartok. Tippett. GorocM. 

230 La Bonne Chanson. 
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Foure. 

430 The BSC Orchestras. John 
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245 Making Wmes. The 
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230 Stravinsky and Sate 
730 Drama Some Parrots and 
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9.10 Music hi Our Tana. 
Xenakis XAS. Sena Sreovo: 


Far Away. Tristan Kauris: Music 
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1038 Choir Works. M o nt e v o n* 
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205 HM Pursuits 
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136 Coral Sniffle's Blue Skies. 
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Anythtog Goes. 


Nigel Short and Michael 
Adams bad the worst possible 
start to the FCA world champi- 
onship semi-Hnals in Linares 
this week. Short lost his first 
two games to Gata Knms ky of 
the US while Adams is also 
0-2 down to India's Vishy 
Allan d, 

OSboard, Kamsky’s father, 
Rustam, took centre stage. 
Kamsky pere, driving to Gata’s 
game against An and in India, 
got out of their car and 
scattered S1.000 in dollar bills 
among the beggars: “We Tar- 
tars believe that if you help the 
poor, the Lord will help you.” 

Rustam, a former boxer who 
once accused Garry Kasparov 
of poisoning Gala's orange 
juice, demanded that the two 
Linares matches should be 
played in separate halls, 
because: “the two English GMs 
would speak about the moves 
during the game." When the 
PCA refused, Rustam watered 
down his demand to a partition 
of flower beds, but settled for a 
couple of potted plants. 

Coping with the Kamsky s Is 
a trivial problem for the PCA 
compared with the difficulties 
facing the rival world body. 
Two years ago Fide moved 
offices to Athens alter obtain- 
ing a subsidy from the Greek 
government, which also agreed 
to give $300,000 towards the 
120-nation 1994 chess Olympics. 

This week Fide revealed that 
the subsidies are is months in 
arrears and that the Greek 


sports ministry has failed to 
reply to repeated letters. This 
is the second blow for Fide 
within a year, following the 
fiasco of their Karpov v Tim- 
man world title match which 
had no prize money after 
Oman suddenly withdrew 
backing. 

Now The Olympics are indefi- 
nitely postponed. Fide is hast- 
ily moving its offices to the 
Philippines or Malaysia and 
the Greek candidate is no lon- 
ger favourite to become Fide 
president at the next election - 
which is also postponed. 

No 1040 


A X & 

n 

i 

&£)<£>& 


White mates in two moves, 
against any defence (by J 
Savourin, British Chess Maga- 
zine 1994). Experts often regard 
two-movers as trivial, but this 
diagram caught out many com- 
petitors in the 1994 world solv- 
ing championship at Belfort. 

Leonard Barden 

Solution Page XVII 


BRIDGE 


A new edition of Bridge, The 
Complete Guide to Defensive 
Play, by Frank Stewart, has 
been published by Robert Kale 
(E6.99). Study this hand from 
duplicate pairs: 

N 

+ K J63 
V 873 

♦ 9 6 52 
A 65 

W E 

45 A 984 

VQ 10 62 f J 9 5 4 

♦ Q 10 8 4 + J 7 

*QJ104 $ A 9 3 2 

S 

4 A Q 10 7 2 
f AK 

♦ A K 3 

♦ K87 

South dealt and bid two clubs. 
North replied two diamonds 
and South re-bids two spades. 
North gave a single raise and 
Smith bid of four spades. 

West lead the club qneen. 
East took with the ace and 
returned the two. Declarer 


won, ruffed a third club in 
hand and ran off four rounds 
of trumps. West held Q10S of 
hearts and Q 108 of diamonds. 
When the declarer played his 
last trump. West had to 
unguard one of his red suits. 
What discard do you recom- 
mend for West? Remember, 
overtricks are crucial in 
match-pointed pairs. 

West knew declarer started 
with five spades and three 
clubs. If he held four dia- 
monds, East might welt have 
returned his singleton at trick 
two. if he held four hearts, he 
would surely have played ace, 
king and another heart before 
drawing trumps. 

So, assuming that West 
holds three cards In one red 
suit and two in the other. West 
had to keep his diamonds. 
Only he can guard diamonds. 
He had throw a heart, trusting 
East to guard that suit. 

E.P.C. Cotter 


CROSSWORD 

No. 8,567 Set by CINEPHILE 

A prize of a classic Pel Hum SoaverOn 80 0 fountain pen. inscribed with the 
winner's name for the first correct solution opened and five runner-up 
prizes of £35 PeLfkan vouchers. Solutions by Wednesday October 5, marked 
Crossword W87 on the envelope, to the Financial Times. Number One 
Southwark Bridge, London SE1 9HL. Solution on Saturday October 2 



ACROSS 

1, 19 Island queen's son 
snooped around northern 
church sick room (6,6) 

4 Sean and land unfin ished in 
upper room (8) 

10. 27 Writer lost caste (not 
English), possibly (3.6,6) 

11. 16 The first, he wrote oT the 
last (6.6) 

12 See 26 

13 Fellow-pupil Ends some swim- 
mers at end of game ( 10 ) 

15 Unfashionable support; don't 
do It to welcome (7) 

16, 18 Eminent biographer, sly 
and catty when thrones 
Involved (6,8) 

19 See l across (and 23) 

21 See 28 (and 23) 

23 Translator of poetry, jazz 
singer, taoiseach and Ameri- 
can writer who came before 
Kennedy (10) 

25 See 8 (and 23) 

27 See 10 (and 23) 

28, 21 across Feminist queen at 
upper room, say - and 'er 
son? (9,7) 

29 Precious mineral found by 
bird splashing in tea (8) 

30 Great American hero with 
guns not far off (B) 

Solution 8,566 


HELJUUOD 
EBaaBDDD 
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DOWN 

f Place islands hack in the 
drink (81 

2 Defiled with dirt, I rage - 
there's plenty of water (91 

3 Fellow with cold sore? (4) 

5 Rum distributed during work 
causes trouble (7) 

6 Male beast, tailless, in erotic 
surroundings - the cloister? 
( 10 ) 

7 Land in panic, one might say 
(SI 

8, 25 Poor liLtle girl recalled in 
transformation (10) 

9 Thick-set? Keep your head (6) 

14 Correct with shattering effect 
( 10 ) 

17 Lovers' ire punished people 
smothering babies (9i 

15 Sco 16 

20 One of several Dowers col- 
oured up and left (7) 

21 Quantity of liquid that is for a 
sporting guide (6) 

22 Compensation for printers? 
(6) 

24 Fish go moderately quickly 
round turn (5) 

26, 12 Girl with Roman garment 
in trunk where Burgoyno sur- 
rendered (8) 

Solution 8,555 


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WINNERS S555: Hiss M. Cox, Beckenham, Kent; Diana Atkinson. 
London SW6; JJS. Heaton, Dkiey. W. Yorks; L. Mann, MIsson, S. Yorks; 
F.J. Mould, Chorley. Lancs; G. Sutherland, Purley, Surrey. 


X 




• -a,- 



WEEKEND FT 


FINANCIAL TIMES WEEKEND 


SEPTEMBER 24/SEPTEMBER 


25 1994 


Interview 


A warm autumn 
breeze blows 
from Moscow 


Anthony Robinson meets Russia s new — and 
friendly - ambassador to the court of St James 


A natoly Adamishin, 
Russia's new ambas- 
sador to the court of 
St James, slipped qui- 
etly into London Last 
week and tackled his first task - 
smoothing the way for President 
Boris Yeltsin, who arrives today for 
talks with prime minister John 
Major. 

His next job will be to ensure that 
all goes well next month when the 
Queen pays a state visit to Russia- 
the first British monarch ever to do 
so. 

Relations between Britain and 
Russia have not been as warm or as 
close for decades. Adamishin, a 
career diplomat, who has been 
increasingly influential in shaping 
Russian foreign policy, is welcomed 
in London as a man who embodies 
the “new thinking". He has thus 
been much involved in Russia’s 
efforts to reintegrate into the wider 
world. 

Adamishln, who served as ambas- 
sador to Italy and deputy foreign 
minister before coming to London, 
says this process started when 
Britain's former prime minister 
Margaret Thatcher, described Mik- 
hail Gorbachev “as a man I can do 
business with." This was several 
months before he became the last 
communist ruler of the Soviet 
Union. However at about that time, 
Adamishin himself was playing an 
important part in reshaping Rus- 
sia's relations with the rest of the 
world, during negotiations in a 
most unlikely place - Africa. 

The quietly-spoken diplomat, was 
at the centre of the international 
effort in the mid-1980s to persuade 
the Cubans to remove their troops 
from Angola. 

The Cuban withdrawal ended a 
military threat to South Africa's 
security and persuaded Pretoria to 
grant independence to Nambibia 
This withdrawal was thus an impor- 
tant condition for the eventual end- 
ing of apartheid in South Africa. 

During these negotiations, 
Adamishin made some unlikely 
friends, including Pik Botha. South 
Africa's crusty former foreign 


minister. 

During months of shuttle 
diplomacy, which took him back 
and forth to Luanda. Brazzaville, 
Windhoek, New -York and other 
more secret places, Adamishin 
gained the respect and trust of some 
of the most influential people in 
western diplomacy, including Sir 
Robin Renwick, now UK 
ambassador to Washington. 

“It was touch and go right to the 
end", Adamishin says. “The night 
before we were due to complete the 
agreement in New York the Cubans 
said they would not sign. I told 
them in that case Moscow would 


‘ The UK is not a 
simple partner . . . we 
consider you as a 
reliable, long-term 
partner'— 
Anatoly Adamishin 


not sign either. But then I spelt out 
a whole series of negative 
consequences which would follow. 
In. the mo rning , they signed." 

Such a breakthrough would have 
been impossible had the veteran 
Soviet foreign minister Andrei 
Gromyko still been in charge. But 
shortly after Gorbachev came to 
power in 1985, Eduard 
Shevardnadze took over the foreign 
ministry. 

“New thinking ” swept through 
the foreign policy establishment 
and Adamishin, who had 
languished in Moscow for more 
than 20 years as a speech writer and 
incr easingly influential counsellor, 

following his return from a six-year 
stint at the Rome embassy, was 
given a free hand to tackle an 
intractable problem, albeit one low 
on Moscow's list of priorities. 

The chance to use his talents 
fully in Africa arrived after years of 
frustration for a man who passed 
the formative years of his career in 


Italy and longed for the chance to 
help loosen and modernise the 
sclerotic Soviet system. 

By temperament and experience 
Adamishin is an unashamed 
“weste miser" who believes that 
“partnership with the west is vital 
for our hopes of turning Russia into 
a normal, economically prosperous 
and predictable country." 
Throughout Russia's history such 
men and such ideas have bad to 
contend against the “Slavophiles" 
with their quasi-mystical belief in 
the uniqueness of Russia and the 
Slav soul and their suspicion ~ and 
even hostility - to the corrupting 
ideas and examples of the west. 

But, in his first interview inside 
the sprawling white stucco embassy 
on Kensington Palace Gardens, 
Adamishin said that “western 
Europe has not yet made up its 
mind whether to embrace Russia 
and hold her tight in a democratic 
embrace - like Germany after the 
war or Spain and Greece - or draw 
the boundaries at the Baltic states 
and Ukraine as if Russia is really an 
Asian exile." 

However, he speaks rather more 
warmly of Britain: “You have 
shown more understanding of our 
problems than some others. You 
helped us to join the Group of 
Seven and helped in other parts of 
the world. The UK is not a simple 
partner to deal with, but we 
consider you as a reliable, long-term 
partner." 

He is optimistic that relations 
with Britain and other western 
countries will improve further. 
“Our Interests coincide 80 to 90 per 
cent of the time and relations 
between Russia, western Europe 
and the US are moving in the right 
direction. But we still have to find 
where a balance of interests exists 
in the remaining 10-20 per cent of 
cases." 

Misunderstanding and 
disagreement could arise from 
Russia's “peacekeeping” role in the 
countries of the Commonwealth of 
Independent States (CIS) which 
were formerly part of the Soviet 
Union, and from its relationship 





Reflections on a new role; Anatoly Adantisfun, the Russian a mb assador in hh» London residence 


with Nato. Moscow wants an equal 
partnership. 

“We each need to recognise 
certain special interests, in our case 
we see the CIS as an area in which 
we have a special interest We were 
also displeased to be faced by 
unilaterally taken decisions over 
Bosnia, although the situation in 
that respect is also much better 
now,” he adds. 

Adamishin was bom of Russian 
parents in Kiev, the capital of 


Ukraine in 1934. This was the year 
in which Stalin ordered the 
assassination of Sergei Kirov and 
then used the murder as an excuse 
to purge political opponents. 
Adamishin, however, shows few of 
the characteristics of “Soviet man." 

T was too young to remember the 
purges,” be says. But he is part of 
the generation which grew up 
under Stalin and then started their 
careers under Khruschev. 

He attributes his survival as a 


free spirit to the influence of his 
grandparents, who brought him up 
during the war, and to a lucky 
break which took him into 
diplomacy. He was trained as a 
mathematician and specialised in 
the Italian economy. His room mate 
was Luigi Longo, son of the 
eponymous former . Italian 
communist party leads:. “Gigi was 
six years older than me. He became 
my teacher in everything from 
marxism to sexology," he recalls 


affectionately. The two men remain 
dose friends. 

The Italian connection changed 
his fete. ''They needed Italian 
speakers and I was ta ken on by the 
firetEuropean department of the 
foreign ministry (devoted to 
western European affairs). I 
translated for Khruschev when an 
Italian delegation came to Moscow. 
I remember bow Giuseppe Pella, the 
then Italian foreign minister, 
outraged Khruschev by asking 
whether it was true that Khruschev 
drank water while plying vodka 
liberally to bis guests. Khruschev 
pushed his glass up to Pella's 
mouth and ordered him to drink. It 
was vodka of course." 

Two years later Adamishin 
arrived in Rome as stazkeur, 
apprentice at the elegant palace 
which houses the Russian embassy, 
less than a mile from the Vatican 
on the Gianicolo hill. There 
followed six years as interpreter 
and counsellor to Ambassador 
Semyon Kozyrev, (no relation to the 
current foreign minis ter). 

“He treated me like a son, gave 
me my diplomatic schooling, and 
protected me from the KGB 
snapping at my heels. Thanks to his 
protection I was able to violate all 
the rules governing the behaviour 
of Soviet diplomats in Italy." 

TjTcb so many foreigners, exposure 
to the subtle arts of Italian life and 
politics inevitably influenced bis 
thinking and style. But be insists 
that the Tnaitt formative elements 
were his unusual “class origins" 
and the influence of his 
grandparents. 

His father, Leonid, was killed 
along with lm other Soviet troops, 
in the first Nazi encirclement of 
Kiev in 1941. Anatoly was then 
seven years old. His mother was a 
modest functionary in the ministry 
of agriculture. 

“1 spent my childhood in the 
Ukrainian countryside looked alter 
by my grandfather, a graduate from 
St Petersburg University who had 
voluntarily “returned to the people” 
to teach in the countryside, and my 
grandmother. She had been 
educated at a gentlewomen’s 
academy but learned how to milk 
and grow crops.” 

Beth, he added, were what used 
to be called in Czarist times 
msnochirrits. the name given to the 
proud and hard working 
meritocracy which was not part of 
the hereditary aristocracy, but rose 
through the ranks and served the 
Czar with diligence and honour. 

This combination of inherited grit 
and acquired Italian subtlety 
marked him out and helped him to 
survive 25 years at the heart of the 
foreign ministry interspersed by 
events such as the Warsaw pact 
invasion erf Czechoslovakia and the 
collapse of detente after the 
invasion of Afghanistan and martial 
law in Poland. It should also serve 
him well as he sets out on bis 
declared path “of doing everything 
in my power to make sure that 
Anglo-Russian relations will be 
confident and serene.” 


The Nature of Things /Clive Cookson 

Back to our African Roots 


L ucy' has lost her title 
as our oldest known 
ancestor. In her place 
are the Root family, 
who lived 4.4m years ago on 
the wooded highlands of east 
Africa. 

Some of this week's publicity 
about the discovery of 1? Root 
fossils in Ethiopia suggested 
that they were the long-sought 
“missing link". 

hi fact they are not quite old 
enough to represent the puta- 
tive ancestor or apes and 
humans: the evolutionary split 
between the two classes of pri- 
mates is believed to have 
occurred at least 5m years 
ago. 

Even so. the anthropologists 
who discovered the new homi- 
nid species - officially named 
Australopithecus ram id us after 
the local Arar word ‘'ramid", 
meaning root - have given the 
study of human evolution its 


biggest boost since the 3.2m- 
year-old remains of Lucy {Aus- 
tralopithecus afarensis) were 
found in the same area in 
1978. 

Most of the Root fossils 
found so far are teeth and 
small fragments of bone, which 
had been chewed up and scat- 
tered around the Awash River 
site by scavenging animals. 
There is nothing to match the 
relatively complete skeletons 
of Lucy and her contemporary 
known as "Son of Lucy". 

The researchers - Tim White 
of the University of California. 
Berkeley; Gen Suwa of Tokyo 
University; and Berhane Asfaw 
of the Ethiopian Palaeonthro- 
pology Laboratory - have 
found pieces of skull and arm 
bones, but unfortunately no 
remains of hips, legs or feet 
Without them, it is impossible 
to tell whether the Roots 
walked on two legs or four - or 


a bit of both. 

So the latest discovery takes 
us no closer to knowing when 
our ancestors came down from 
the trees and started walking 
upright But there is a good 
chance that the anthropolo- 

‘ These hominids 
probably did walk 
upright, but with 
a waddle’ 


gists will soon turn up some 
bones from below the waist as 
they continue to scour the 
research site. 

What the fossils already tell 
us is that our ancestors 4.4m 
years ago were about the same 
size as the smallest contempo- 
rary Cornu of chimpanzee, or 
half as big as us. They had 


ape-sized heads and, presum- 
ably, ape-like mental abilities. 

Most of the technical analy- 
sis In this week's Nature paper 
describing A rantidus as a new 
hominid species concerns its 
teeth, partly because these are 
the most plentiful remains and 
partly because dental evidence 
is conventionally important for 
primate taxonomy. 

The Roots' teeth are smaller 
than those of later Australopi- 
thecus species such as Lucy, 
though larger than modern 
human or chimp teeth. Their 
dental details are mainly inter- 
mediate between apes and the 
later hominids, as you would 
expect though there are also 
some special features such as 
distinctive diamond-shaped 
canine teeth. 

A battery of geological and 
radio-isotope dating procedures 
- carried out on the hominid 
bones, other fossilised animal 


O f the many things 
which the world 
does not need, a 
new recording of 
Beethoven's Fifth Symphony 
ranks right up there, along 
with Prozac, pet rocks and 
party conferences. I know Her- 
bert von Karajan advised 
young conductors to throw 
away their first 100 versions of 
the work (pity the poor audi- 
ences) but there comes a point 
when enough is enough, when 
the obsessive pursuit of perfec- 
tion becomes a futile exercise 
in megalomania. 

1 was forced to pause, how- 
ever, when Franz Welser- 
Mfist's new interpretation of 
this classic work with the Lon- 
don Philharmonic popped 
through the post this week. It 
was not the gaudy fireworks- 
by-moonlight scene adorning 
the sleeve, nor the perfor- 
mance itself, which is more 
than competent. It was the 
obtrusive white sticker on the 
front of the compact disc 
coven "Includes music from 
Hovis and Pedigree Chum TV 
ads". 

I know that in the age of the 
sound-bite and the sample, in a 
world where you can walk into 
a record shop and buy an 
album called Bach to Basks. 
this should not come as a 
shock; but It did. This is Beeth- 
oven’s Fifth, for goodness sake, 
probably the most famous 


Truth of the Matter 

Roll over, 
Beethoven 

Peter Aspden on the use and misuse of great music 


piece of music in the western 
world, and someone is honestly 
trying to use It to sell brown 
bread and dog food? And worse 
still, someone is trying to seU 
the compact disc by advertis- 
ing that it is used to advertise 
brown bread and dog food? 

My mind reeled as I tried to 
recall the offending items but 
my memory, and my imagina- 
tion, drew a blank. Hovis: a 
wholesome family sits at the 
kitchen table glowing with 
health and well-regulated fibre 
intake - da-da-da -do. It just 
didn't pan out Pedigree Chum; 
a cuddly spaniel bounds 
towards its bowl of nourishing 
goodies - da-da-da-do. No way. 
These are the opening bars 
which Beethoven reputedly 
described as “fate knocking at 
the door"; could he really have 
been referring to a kennel? 

My curiosity was getting the 


better of me; I had to make a 
few calls. The man from Hovis 
was brisk and confident. “No. 
we've never used Beethoven's 
Fifth, nor any Beethoven for 
that matter. We use Dvorak, 
the second movement of the 
New World Symphony.’* 

He was so assertive, it 
sounded like the most logical 
pairing in the world. “And 
there are no plans to use 
Beethoven?" “None." There 
was no doubt in this man's 
mind. Hovis and Drofdk was a 
marriage baked in heaven, and 
any interlopers were not wel- 
come. 

The woman from Pedigree 
Chum was less strident, and 
had to check: “No, there is no 
record of us having used 
Beethoven at all” She sounded 
relieved. “I mean it just doesn’t 
seem like music for one of our 
ads. It’s a bit heavy, isn’t it?" 


I nervously agreed that yes 
indeed, it was a bit heavy, but 
in truth I had lost all confi- 
dence in my ability to match 
world-famous pieces of music 
with pet food products. If she 
had said that Pedigree Chum 
had been using Siegfried's 
Funeral March for the last 20 
years, I would not have batted 
an eyelid. But she did not say 
that; instead she added that 
the music they were “famous 
for" (where have I been all 
these years?) was Dvof&k's 
New World Symphony. 

The mystery was solved. It 
was a cock-up, the right sticker 
on the wrong compact disc 
cover. My instincts were 
proved correct; no-one can use 
the music of Beethoven’s Fifth 
Symphony to push products- 
My ideals remained Intact, the 
great man could once again 
bask in the purity of his 


and plant remains, and the 
rocks around them - all point 
to a narrow age range between 
4-3m to 4£m years for the find. 

The evidence from the other 
fossils shows that the Awash 
site, now an arid semi-desert, 
was lush woodland when the 
Roots lived there. The 
researchers found thousands of 
fossilised seeds of forest trees 
and plentiful bones of tree- 
dwelling colobus monkeys. 

Although the proven facts 
about A ramidus are very 
sparse, they can be c omb ined 
with What is known about later 
hominids and modern apes, to 
give a reasonable speculative 
view of the Roots' lifestyle. 

They slept high up in the 
trees, for safety,' and spent a 
lot of their waking life there 
too, eating leaves and fruit 
Their strong arms and hands 
enabled them to swing through 
the branches, though with less 


genius. A final call, to EMI, 
and the end to my nightmare: 
the sticker was an innocent 
mistake, and should not be 
appearing in the shops. Simple 
as that. 

But the issue will not go 
away. Does listening to 
snatches of classical (or, as 
some would have it, “serious") 
music as an inducement to buy 
essentially trivial products 
really do any harm? 

The reason we, as a culture, 
continue to chum out Beeth- 
oven Fifths is in ritualistic 
affirmation of our sophistica- 
tion and love of high art This, 
we continually tell ourselves, 
is what we are capable of; this 
is the peak of human achieve- 
ment It may have taken place 
some 200 years ago, but we are 
still recording it, still travel- 
ling to see it performed, still 
discussing it 

Are these sentiments not 
infected when such works of 
sublime intent are wrung 
through the warped minds of 
some crazed creative depart 
ment? Or is it just a “harmless 
bit of fun", that clarion-call of 
our times? Beethoven, a most 
complex man. lived In a much 
simpler world. I find it difficult 
to conceive of how fate knock- 
ing at the door would sound in 
1994, but I have the horrible 
feeling that after the first two 
notes, there would be a com- 
mercial break. 


speed and agility than a chimp. 

Sometimes, however, the 
Roots came down to the 
ground, to eat fallen fruit and 
to supplement their largely 
vegetarian diet by scavenging 
dead animals. 

They may even have banded 
together occasionally to hunt 
and kill anftrapi^ These hairy 
hominids probably did walk 
upright, at least for part of the 
time, but with a waddle that 
would have looked very differ- 
ent from today’s human gait. 


If the Roots had ape-like 
minds, they may have picked 
up sticks and stones to use as 
primitive tools, for example to 
pick juicy insects out of crev- 
ices In tree trunks or smash 
open nuts. 

But they were not clever 
enough to fashion tods of their 
own by cutting sticks -and 
stones into more useful shapes. 

We shall have to wait for the 
fossil hunters to find more 
extensive remains of the Roots 
to know how accurate this pic- 



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tore is and give some idea 
about their social structure. 

If the females turn out to be 
much smaller than the males - 
as was the case with Lucy and 
her menfolk - then it would be 
reasonable to conclude that 
dominant males competed for 
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For now, the significance of 
the discovery Is its confirma- 
tion of the view originally put 
forward by Charles Darwin, 
that the roots of human evolu- 
tion would lie in Africa. 





gjNANClAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


SECTION III 


Residential Property 


A SPECIAL SUPPLEMENT 


So you want to live in the best place in town, money no object. What would you choose and why? Freed from any financial constraints, 
FT correspondents around the world had no problem in letting their imaginations roam in search of that perfect property 


Simply the best, better than all the rest 


S omewhere in the world is 
the perfect home. If you 
had your pick of the best 
properties in mayor cities 
what would you select? A 
mansion? a penthouse? A riverside 
p alac e? We asked FT correspon- 
dents to let their dreams run riot 


LONDON 

The best fiat in London only partly 
exists, writes Gerald Cadogan. Even 
so, it costs £15m, which buys a two- 
floor penthouse newly-built on top 
of Fountain House, a handsome 
1930s apartment block next to the 
Grosvenor House Hotel on Park 
Lane in Mayfair, 

The flat has superb views, espe- 
cially westwards over Hyde Park, 
the Serpentine and the Albert 
Memorial, which from up top looks 
like a rocket about to set off from 
Cape Canaveral. 

Grosvenor House is across Mount 
Street to the north. On the east and 
south the immediate views are over 
the late 19th century red brick and 
white stone mnnwinna of Mayfair, 
which are becoming smarter every 
day as they return from nfffcp to 
resi dential. 

Skips and scaffolding cram the 
streets now, but enough has already 
been refurbished to show how 
classy the resurrected Mayfair will 
be. 

In this superb position, in the 
heart of London, the penthouse 
occupies the whole of the top of the 
building. Some fffl tn buys a ahpn of 
15,500 sq ft, basement parking for 12 
cars, arid an express lift to get to 
thpm j and nothing more. 

There is stm the cost of fitting 
out this huge space. 1% times the 
size of even the larger Mayfair man- 
sions, and deciding where to put the 
partition walls. The top floor has 
mansard roof - a Parisian attic an a 
mega-scale, fit for a Mayfair 
lady. 

WA Elbs (071-581 7654) and Weth- 
erelJ (071-493 6935) are joint sole 
agents far a 250-year lease. If the 
penthouse does not sell as whole, 
they will offer it as four units. But I 
cannot see how some person of 



Some £15m cotSd buy you thfe view, from the uttfcnate ki attics, over London's Mayfair. Of corns, than is stiR the cost of fitting out this penthouse mice the £15m Just buys the 15£00 sq ft stiefl .. . 


wealth could let this opportunity 
slip by. 

NEW YORK 

A morning stroll down Central Park 
South reveals something important 
about living in a vertical city like 
New Tank, thinks Frank McGurty. 
On the north side, the grassy verges 
along the edge of the park are dot- 
ted with slumbering forms twisted 
into unnatural positions by the 
iruh gnttteB of life an the streets. 

Across the way, majestic apart- 
ment towers rise out of the pave- 
ment like genteel citadels against 
the travails below. Here, the 
wealthiest Near Yorkers reconcile 
their need for comfort and security 
with their intense desire to be enve- 
loped by the city’s richness and 
vitality. 

Alice TuHy, a renowned patron of 
the arts and a generous benefactor 
of the needy, was one of the most 
successful at achieving this bal- 
ance. Before • her death last year. 


aged 91, she found sanctuary in an 
extravagant 14-room flat which 
occupied the entire 27th floor of the 
Hampshire Hnnw hot el . 

Her eyrie floats high above the 
very nexus of the city. Equidistant 
from the upmarket shops of the 
east and the chamber music 
hall at linmin Centre which bears 
her name, the residence offers 
unmatched accessibility to New 
Yolk’s delights. 

Yet, amid its lavish elegance, a 
visitor feds a comforting sense of 
distance. The vista from the front 
terrace, situated at the mid-point of 
Central Park’s south face, encour- 
ages the illusion of a graceful and 
purposeful city where gentle wood- 
lands and water-courses are framed 
neatly by gardens of urban architec- 
ture. 

Inside, Tally created the illusion 
of an 18th-century Venetian palazzo. 
Its eccentric ramble of rooms - both 
intimate and grand - stands in 
refreshing contrast to the sterility 


of most New York flats, even at the 
very high end of the marke t 

The music room, a sumptuous 
space with 18ft ceilings and double- 
height French windows, lies at the 
heart of this whimsical wa» in its 
stately elegance, the philanthropist 
indulged her greatest passion in a 
style which every New Yorker 
would envy. 

Alas, few of them could afford it 
The asking price is $7m - plus 
$22,800 a month in service charges. 

PARIS 

If I was going for grandeur I would 
chuck out the Rothschilds and 
move into Hotel Lambert, their 17th 
century townhouse on the lie Saint- 
Louis, says Alice Rawsthorn. If I 
wanted something more modern, I 
would have to choose between 
Pierre Chateau's exquisitely eccen- 
tric Maison de Verre, in Saint-Ger- 
main des PriSs, or Rem Koolhaas's 
cool contemporary Villa d'AIba in 
Saint-Cloud. ~ 


But there is only one serious con- 
tender for my perfect Parisian pad - 
Villa Savoye, the white- walled 
house in a b uttercup field in the 
western suburb of Poissy, which 
was the last and the loveliest of the 
purist villas designed in the 1920s 
by Le Corbusier. 

It says a great deal about the 
bouse that it could coax an unre- 
ccmgtoc te d urbanite hke me into an 
insalubrious suburb like Poissy. 
Villa Savoye would be worth it It is 
a dream of a house: the perfect 
blend of Le Corbusier’s architec- 
tural theory with a sensuous sense 
of space. 

Villa Savoye was built in 1931 as 
the borne of the Savoyes, an insur- 
ance magnate and his wife. The 
exterior is the same perfectly pro- 
portioned hlend of soft curves and 
straig ht Kn*>w that is so appealing in 
Le Corbusier’s bigger buildings. The 
main rooms are raised on columns 

Continued on Page HI 






Via Savoye: a Frencfcnaiional monument that may never coma on the market 


THE PROPERTY MARKETING COMPANY 





SAVILLS 


I N T E R NATION A L 



. . J. . - ' , i . - • '* M _ 1 1 


-r - 


BLISS MILL, CHIPPING NORTON 

Luxu ry apartments and cottages in Grade II* Listed 
Victorian Tweed Mill set in 628acres of grounds. 

35 one, two and three bedroom apartments, serviced by 2 
lifts, 9 two/ three bedroomed cottages. 2 three bedroom ed 
lodge. Covered parking. Leisure complex: swimming pool 
spa poo*, sauna, squash court 2 tennis courts. 

From £90,000 - £190,000. Leasehold - 898 years remaining 
Office: O-u’5 

•• is. 3inb*-rv 8H5 2u3S35 



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PLANTATION WHARF, LONDON SW21 

Superb new riverside apartments. 

A selection of brand new apartments, many with exciting 
river views. The excellent specification includes solid beech 
flooring, fully equipped kitchens and underground parking. 

1, 2 and 3 bedroom apartments from £95,000 to £265,000 
River view apartments from £132,000 
leasehold 144 years remaining 

Saies Centre: 071-535 0041 
Seville, Knightsb ridge - 071-730 Cell 



- •* 


A MAGNIFICENT 40 ROOM MANSION 
SITUATED CLOSE TO HYDE PARK AND 
KNIGHTSBRTOGE ON THE WEST SIDE OF THIS 
QUIET GARDEN SQUARE. 

five Hjpafcfy elegant reception rooms iracrconncci on the ground floor 
lo pmvide txcdkntemmnmng space - Ote whole house iwab 14,00 
aqJt. (gross nnenwTl with paved rear garden. 

Price on appli c ation. Freehold 
Joint Agents; 

Knight Frank and Rnilcy - 071-824 8171 



EMZA0ETH COURT, CHELSEA SWaO 

An exclusive development of retirement apartments 
available to purchasers aged 55 and over. _ 
Situated just off the Kings Road, the apartments benefit from a 
video entry intercom, alarm call system, beautiful central 
gardens, some private parking and a resident manager. 

1 Bedroom apartments from £1423W 
2 bedroom apartment £197,500 
Leasehold - 142 years remaining 






- - - r» 

' V A r. i’- ^ 1 


i;L LONDON Smu 


Residential investments. 

Mo*™ tcn.rn.ed apartments on short and medium leases. 
From £250,000 Leasehold 


F4 


GLOUCESTER STREET, SWI 

A brand new "Regency Style’ terrace offering a range 
of apartments and duplexes of exceptional quality. 
High-specification, superior new apartments combining 
modem convenience with Regency grandeur. Underground 
parking, Miele kitchens, marble bthrooms, resident porter, 
sophisticated security. 

1 bedroom apartments from £357,500 

2 bedroom apartments from £177,500 

3 bedroom apartments and duplexes from £302 r 500 
Leasehold 998 years remaining 

• Savi i Is, Knightsbriiige - 071-731* G&Z2 


THE PROPERTY MARKETING COMPANY IS A 
HIGHLY COMPETITIVE MARKETING & PR 
AGENCY OFFERING FULL ADVERTISING, 
MEDIA, PRESS RELATIONS, DESIGN AND 
PRODUCTION SERVICE TO THE 
PROPERTY INDUSTRY 

FOR FURTHER DETAILS CALL 
CHARLES PHTLLPOT - 071-824 8217 

Tbrnitpit^MartiUgCtl-runv'' kwEkAqrtotaaaie Lininl 


TEL: 071-824 8217. FAX: 071-823 6553 




Windsor 3 mUez, Central London 25 ndks 

WinfcSeld 

ELEGANT COUNTRY HOUSE IN NEED OF 
MODERNISATION, WITH STUD FARM 
3 recepn a ns, 9 bedrooms, 4 b athroom s . Coach house with 
patugiug. Garden and grounds. Gardgta^s cottage. Banco Lodge 
Stu± 3 bed cottage, stud buildings 7 5 a 53* yard, fane boxes and 
dutch bam Farther 3 bad cottage. As a whole or in 4 fas. 
SavEIs. VffiftL- ;»T: — i-*.' 7v44 Contact; Ian Stewart 


3SGADLAJE2S ROAD, > 

A SUBSTANTIAL DOUBLE FRONTED HOUSE 
WITH CARRIAGE DRIVEWAY, DETACHED 
COACHHOUSE. CURRENTLY SUB-DTVIDED 
INTO 4 FLATS 

Potential for 4 reception*, 7 bedrooms, 5f6 hathnruntt, 

2 dressing rooms, balconies, gardens. 2 garages. 

Freehold 

Bcnham & Reeves - 081 348 2341 


ST J.-J-lSfS. LONDON S’": 

TUCKED AWAY BETWEEN GREEN PARK ' 
AND ST JAMES’ PALACE, THE 
ULTIMATE IN-TOWN PIED A TERRE. 

THE PROPERTY WAS REFURBISHED ■ 

APPROX 4 YEARS AGO AND IS 

PRESENTED IN GOOD DECORATIVE 
CONDITION 

Drawing room, 2 double bedrooms, dressing room/ttudy, 

'en-sukc bathroom, shower room, kitchen, doahroom, gunge. 
£345,000 Leasehold - approuc 10-5 years remaining 


SAVILLS MAGAZINE 

AUTUMN ISSUE OUT NOW 


or write to; Savflk Magazine 
139 Sloane Street, London SWIX 9AY 


INTERN ATTO N A L P R O P H R T V C O N S U LT A NTS 
OFFICES AND ASSOCIATIONS IN THE UK, .EUROPE USA AND SOUTH EAST ASIA 



















FINANCIAL TIMES WEEKEND SEPTEMBER 34/SEPTEMBER 25 1994 


JOHN D WOOD & CO 




liMftVIPSW) 



KENT - Penshurst 

A Hated Georgian home, requiring some modeznisatioii, vrhfa a cottage and 

5 bedrooms, dressing room, 3 bathrooms. 2 secondary bedrooms. 3 reception rooms. 
idiyieoDvodkin. 

Cottage with 3 bedrooms and 2 reception roams. Garaging, stabling, attractive garden, 
frontage to the Rivw Medway. 

About IK acres. 

HEAD OFFICE 071-493 4106 
EAST GRIN STEAD OFFICE 0342 326326 


OLD TOWN SW4 
St. James' House 

In a quiet, wide street off 
Oaphara Common 
Norths! de, 

a detached, double-fronted 
bouse, beautifully 
pre s ent e d wWi a carriage 
driveway, impressive 
garden and donble garage 
with large games room. 

2 bedroom suites, 

staff suite with nursery 
kitchen. 

3 further bedrooms, 
further bathroom. 

3 reception rooms, nursery, 
2 studies. 

kitchen, wine cellar, 
garden room /workshop. 

Freehold £875,000 



I j' H /I l d 



FRIEND fcFALCKE 
071-498 0736 
JOHN D WOOD A CO. 
071-1280174 




OXFORD - Headington 

An imposing Victorian bouse in a qniet location within < 
mOe of Magdalen Bridge- 
7 bed r o om s. 5 bathrooms, 2 reception rooms, 
kitchai/dtning room, domestic offices, cellars. 
Garaging, outbuildings, gudena. 

About l)i acres. 


OXFORD OFFICE 0865 311522 



BERKSHIRE - Near Newbury 
A Georgian farmhouse hi Ore hamlet of Oarc, w&h » range 
of traditional barns with planning consent for conversion 
to three houses. 

5 bedrooms, 3 bathrooms, 3 reception rooms, 
kitchen /breakfast room, cellar. 

. Setf-c nirtatned annex: 2 bedrooms. ba t h room, 
reception room, kitchen. 

Bams, garages, orchard and paddocks. 

About 4 acres. 

NEWBURY OFFICE 0635 523225 


i ■' i*' 


>; ■ fe-i Z'A 

m : N'T 



• **■ '■ t - • 


HAMPSHIRE - Bentley 

rf il^einw rime to ilwbyjpaaa. a Haled iniUhOBK with mlaterew&na 
history, adjoining the Rhrwt Wcy, with donMe bank fishing, outbmMmg* cottage, 

■ stabling and paddocks. 

4 bedrooms, 2 bathrooms. 3 reception rooms, kitchen, breakfast room. 

T^ i li ofwi. ha iluun e i i^ i g cty hon room. kfU. h c n and large first 
floor Studio. 

- About 3 acres. 

Offers invited in excess of £435400 

FAKNHAM OFFICE 0252 737115 

KENSINGTON W8 

Brunswick 
Gardens 

In a pretty, c her ry tree-Uned 
street an elegant, 
west facing, semi-detached 
house with a sctf-cantained 
flat and west facing garden. 

6 bedrooms, 
dressing room. 

2 bathrooms, 
showier room, 

4 reception rooms, 

Utriten/braakfast room, 
utility r * M |fw j 
cloakroom. 

Freehold £1^50,006 


HAMPSHIRE - Newtown 
A famcr vicarage in open coantiyside an Sm eastmn side of 
the Mean Valley. 

6 bedrooms, 2 bathrooms, 3 reception rooms, kitchen, domestic 
offices, conservatory, cellar. 

Ad{ntoing2 bedroom cottage. ontbuilrfrngs. 
tennis court, beantiful grounds and paddocks. 

About 10 acres. 


WINCHESTER OFFICE 0962 863131 


SURREY - Churl 

is of bean tifni grounds smrennd this long famr-bnilt 
house with garaging, cottage, 
swimming pool and tennis court 
4 bedrooms, dressing room, 2 bathrooms, 

42ft drawing room, dining room, donkroam, 
kitchen /breakfast room, 
detached Studio and outbuildings. 

About 27 acres. 

Offers invited in excess of £650,000 
FARNHAM OFFICE 0252 737115 


KENSINGTON OFFICE 
071-727 0705 



HEAD OFFICE 

26 CURZON STREET, LONDON, W1Y 7AE 
TELEPHONE; 071-493 4106 * FACSIMILE: 071-629 6071 


-COUNTRY & AGWCUITDlUt OFHCESs i 
LONDON OFFICES: B ATTERSE^ RELGRAV 1 
HONG KONG OFFICE : ,f l^ITWGS& MA 


OXFORD, 






PTONS 


SURREY - BLETCHBSGLEY 
A substantia] Grade II Listed 
mansion, with superb views 
to the south. 

Great hall, summer and winter 
drawing and dining rooms, 
breakfast room. 14 bedrooms, 
including 9 suites. 

2 cottages. 2 dais. 

Formal gardens and grounds. 
About 10K acres. 

Caterhom office. 

Teb (0883) 345255 or 
Head Office. 

Teh 071-493 8222. 



- - 

Ti* ’?i*B 




ISLINGTON - N1 

A recendy built faoaay de v elopme nt of bouses and 
apartments in the Canonbmy Conservation Area. 

24 hour porterage, secure private parking, video entryphone 
system and electronically controlled security 1 gates... 
Develop m e n t 75% sold. Last 5 booses remaining, 
freehold from £2454)00 -£575406. 

Islington office. TO: 071-226 4688. 




SURREY - WALTON ON -THAMES 
A large family residence standing in defrgfatful, 
seefnded grounds. 

3 reception rooms; master bedroom suite. 4 further bednxanr 
(2 en suite], leisure area, recording studio. Indoor poo! 
complex. Garaging. Ttennis court. Staff cottage. About 5 acres. 
Esher office. Tsh (0372) 468411 or 
Head Office. TO: 071-493 8222. 



SURREY - RICHMOND 
An elegant period house requiring 

1 eftu bfahment with magnificent views from 
Richmond H21 across the Thames. 

3/4 reception rooms, 4/5 bedrooms, 

2 bathrooms. Self-contained 2 bedroom flat. 
Rear garden. 

Rich m ond office. TO: 081-891 1282 or 
Head Office. Tfct 071-493 8222. 



ARGYLL - ISLE OF MULL 

A laic l**th Century boose, with outstanding views over the 
Sound of Mull. 

Hall. Z reccjHion rooms. study, 9 ted rooms, 7 bathrooms 
(5 en suite). Outbuildings. Scope fur development. Woodlands 
nf about 35 Jem. 

Scottish office. TO: (0540) 662020. 


WORCESTERSHIRE - FECXENHAM 
A akffifoBy extended former farmhouse. 

3 reception roans, library, conservatory, 5 bedrooms, 

3 bathrooms. Garaging and snooker room. TOnris court. 
Gardens and grounds. About 3* acres. 

Worcester Office. (0905) 725513 or 
Head Office. Tfcfc 071-493 8222. 






















STATE OF THE MARKET 


ill 



Bright promise fades away 


"> 


Gerald Cadogan looks at how the UK residential market has fared this year 


Ho use prices 


Amrag»pricM by area (x change ewr tat yea) 



T he year had started fall 
of promise but, as win* 
ter turned to spring, 
and then summer, the 
Property market started 
sticking. The rise in long-term 
yields killed the attractive fixed-rate 
mortgages of January and Febru- 
ary. taxes went up in April and the 
government did badly in local and 
European elections. As confidence 
waned, sales feU 

The- mid-September base rate 
increase also prompted fears that 
the uncertain recovery in the hous- 
ing market would be chanM 
Negative equity probably pro- 
vides a salutary reminder that , 
alt h o ug h prices are slowly improv- 
ing, they still have a long way to go 
until they reach 1988-89 levels. The 
priority now, after a recession that 
affected the house-owning middle- 
classes most, is to have a home 
(with all the security and perma- 
nence that implies) and not a fast- 
profit investment vehicle. 

If potential sellers do not see any- 
thing to buy that they like «nri 
there is no reason to move, they are 

staying put 

The Corporate Estate Agents 
Property Index of net sales (those 
that went through), based cm about 
half the country’s hnmdp g transac- 
tions through estate agents, peaked 
In February (38,126 sales) and 
March (40,114), but by July had 
fallen to 29,382 - 9.7 per cent down 
on July 1993. In August the figure 
was 29,570, L7 per cent down on the 
same month last year but up 0 l 6 per 

Cent nn thw pro w inna mwrfh 

It is curate’s egg of a market, 
good in parts. There are masses of 
would-be buyers, and the affnrriah fu 
ity of houses has hardly been bet- 
ter, but agents do not have enough 
vendors with the confidence to 
instruct tham to ™n. 


SeuKacHMn 

This stock shortage makes the 
market still stickier and pricey as 
recorded fay Nationwide and Hali- 
fax, have barely moved. Turnover is 
low and the expected general recov- 
ery is stOl on the horizon. 

Two sectors are different. The 
shortage of homes for resale has 
boosted the lettings and new homes 
markets. New house prices went up 
sharply in August fay 22 pm? cent 
from July, TTnUfav es timates 

Mare people are becoming ten- 
ants, some for well-established rea- 
sons (Job demands, divorce, widow 
hood, waiting to buy after selling) 
and some because they now prefer 
the flexibility - and reduced respon- 


sibilities - of renting. 

It is also a market of strong local 
variations. Prices have surged in 
London and for good properties 
within easy reach of the capital But 
in other parts of the UK they are 

Still wimmg dOWZL 

In December 1992, Tolande 
Barnes, head erf Savins’ Residential 
Research, forecast rises of 10 to 15 
per emit in prime central London 
prices by June 1994. The actual 
result, she computes, was 23.4 per 
cent, putting prices at about the 
level of June 1987. 

We shall see in January how her 
forecast of December 1983 - that 
prices would rise by 19 per cent 


across the country in 1994 and by 25 
per cent in prime central London - 
has worked out With half the year 
gone, the London advance has 
readied 112 per cent, showing that 
there has been good recovery in the 
capital. 

This is very different from what 
Nationwide and Halifax have been 
saying but, as Barnes 
their figures cover the pro p e rt ies on 
which they give mortgages and' 
therefore leave out 28 per cent of 
transactions - mostly at the top of 
the market - that do not involve 
mortgages. . 

James Wilson, of buying agent 
Wilson & Wilson, thinks a more 
likely figure for the 1994 increase 
will be 10-12 per cent and points out 
that London is always a different 
market because foreign investors 
help to buffer it from, the domestic 
economy. Hie expects a further 10 
per cent rise in 1995. 

Besides rich foreigners, City 
bonuses have been a factor, particu- 
larly in areas such as Kensington, 
Holland Park and Netting Hill , 
which showed an annualised 
increase for flats of 28.1 per cent 
and for houses of 22 per cent in the 
second quarter of this year. 

The bonuses have also affected 
the market in counties such as 
Hampshire, where owners of cot- 
tages, village houses and cou n try 
houses have been obtaining the ask- 
ing prices immediately. 

Michael Dunning, erf Lane Fox in 
Winchester, sees many frustrated 
buyers thawing hwwwi costing more 
than £500,000 with supply “dis- 
tinctly short”. 

On SaviUs’ figures, the general 
rise for good country houses has 
been 32 per cent in the first half of 
the year, with average rises of L7 
per in the math, 2.6 per in 
the east and west and 8.1 per cent 


in the home counties. 

But it is a patchy picture in 
Which lneal frmrffl -jong and tfiP q ml 
ity of the house both have an effect. 
In East Anglia, Cambridgeshire Is, 
as usual the first county to feel the 
Improvement in the economy 
spreading out from I /virion, thanks 
to its university, hi gh- tec h indus- 
tries and good communications. 
Prices have risen about 5 per cent 
this year. Bid wells reports, with for 
easterners and Channel Islanders 
among the buyers. There is the sup- 
port of a strong lettings market 

Other parts doing well include 
south-east Wales. Gloucestershire, 
North Yorkshire and the West Mid- 
lands, according to the Royal Insti- 
tution of Chartered Surveyors mar- 
ket survey for May-July. 

Some selling a n d buying agwris 
feel that SaviUs’ bullish forecasts 
for 1994 price rises have encouraged 
vendors to put off decisions in the 
hope that they may wipe out any 
negative equity which they may 
have carried. But there cannot be 
any price changes without market 
liquidity. 

Finally, in spite of exceptions, 
there is little prospect of quick capi- 
tal gain. If attitudes to buying 
really have changed - and property 
is no longer something to take a 
punt on - the turnover in the resale 
market will mmHwnp to be mu ch 
less than a few years ago. 

That is good news for landlords 
and new home builders. But for 
estate agents it can lead only to 
amalgamations «wd reduc tions as 
there win not be enough business to 
keep them all going. 

In the meantime, buyers should 
sell if they ran and determine how 
large a mortgage their salary can 
stand so that they can beat the com- 
petition for that ever rarer item, a 
period house for sale. 



Masses of would-be buyers - but agents do not have enough vendors 




Simply the best, better than all the rest 


Continued from Page I 

above the ground so that the hoBse 
seems to float among the trees. The 
columns form a circle specially 
measured so that the Savoyes’ 
chauffeur could whisk them to the 
door with a single turn of their 
Hispano Sidra's steering whe el 
The only hitch is that Villa 
Savoye is not on the market, nor is 
it likely to be in its guise as a 
French national monument. 

SINGAPORE 

ft is modi better to throw mods 
and cons into the tropical breeze 
and go for traditional, colonial 


style, writes Kieran Cooke. A bouse 
In the Mount Pleasant area, only 
about 15 nrinntw d rive from the 
downtown business district, would 
be my ideal You crunch your way 
up the drive to a two-storey black 
and white house. A verandah as big 
as a running track stretches 
around the building. Here, in the 
hallway by the front door, is where 
you sit and have a sundowner or 
play a rubber of bridge. 

Ike proportions of the rooms are 
more Sum generous. Fans tiangtag 


from high ceflings sloop away. The 
floors, made from the best tropical 
timbers, creak underfoot Outside, 
the lawn is lined with sweet smell- 
ing jacaranda trees and hibiscus. 

There are some inconveniences to 
Uvim; in the old style. There is lit- 
tle or no air conditioning. Crawling 
objects might choose to climb into 
bed with you and there are mosqm- 
toes. But it is more what living In 
tiie tropics should be about And 
you do not have to be a mflTinn»m» 
to afford this ideal A three-bed- 


roomed house, with substantial 
garden and pool, plus servants 
quarters, could cost just SS12.000 to 
SS18.000 per month. 

TOKYO 

The ideal homes that Tokyoites are 
madly curious to know about are 
the four penthouses on the 31st and 
32nd floors of a luxury condomin- 
ium complex offered by Sapporo 
Breweries earlier this year, writes 
Rmflro Terazono. 

The other condominiums in the 


complex cost between Y 123.7m 
(£808,400) and Y488m (£3. 177m) 
and have been snatched up by 
those who can afford it However, 
the company refuses to reveal the 
details and prices of the pent- 
houses, which it says are not for 
sale to the public. 

Property analysts say the pent- 
houses are likely to be the most 
luxurious pieces of real estate to 
come on to the market in the last 
few years. 

Sapporo says the development 


block, Yebisu Garden Place, in 
which the condominium complex is 
situated, is itself a status symbol 
Located in a trendier part of town, 
residents of the condominiums 
have easy access to high-rise office 
buildings, luxury hotels, restau- 
rants and a shopping mall all 
inside the block. 

BERLIN 

Property is scare, expensive and 
still plagued by claims from funner 
owners in east Berlin, writes Judy 


Dempsey. But do not despair. Yon 
wfll soon be able to five in Stadt- 
mttte, the heart of old Berlin. 

It is likely to become the hub of 
the German capital and a clutch of 
luxury apartments become avail- 
able next summer when Tishman 
Speyer property developers com- 
plete their exclusive retailing, 
shopping and housing complex on 
Friedrichstrasse, a stone's throw 
from Checkpoint Charlie. No one 
could ask for a better location, 
backing on to the Gendarmen- 
markt. Renting is the norm and 
expect to pay between DM40 and 
DM50 a square metre. You wUl not 
regret it- 


■ I K W I \ • I'll U! \! 


! U > J - i\ \\ \ • i ! ! I 


(.[-.JIM \s\ • ll: iM, mini, • i\l»UM-.>!.\ 


A! A ■■r-.i'W 


Knight Frank 
22 & Rutley 

INTERNATIONAL 


M A!.,Vi -! A • MAY Zi.Ai.AM> • MMIKtA • M\«. M'f ([{!•: 


rr> oi- wii'.mt 


/ iM;S \IJV. I-. 





Sonth Devon 

Exeter and Torbay about 12 miles 

A spectacular re-development 
of the 2S acre site of the former 
Carolean Lmdridge Park 
where the carefully restored 
important garden remains 

Phase L Four-bedroom houses on the site of the 
original house around a central courtyard. 

Site Salas Office open daily 11.00-6.00 
(0626) 770568 

Built to a very h ig h standard with NHBC 
guarantees, fitted kitchens and bathrooms, 
gas fired central heating and double glazing. 
Hard tennis court. Formal gardens. Paddock. 


Apply: Exeter (03921 433033 


(MLTJ9018) 


Switzerland 

Lausanne about 15 kms. Geneva and 
Geneva Airport about 65 kilometres. 

An outstanding individual house with 
exceptional views towards the Jura 
Mountains, Lake Geneva and The Alps 

Latge central reception area with dining and 
sitting areas, shady, cloakroom, billiard room, 
wine cellar, fitness roam, master bedroom suite, 
guest bedroom Buite, 3 further bedrooms, 

2 further bathrooms. 

Staff apartment. Garage for up to 4 cars. 
Landscaped gardens. 

About 3,000m 1 

Joint Agents: de Rham & Cie SA, L au s an n e 
Switzerland (01041) 21 346 1111 
Knight Frank & Rutley, London 071-629 8171 

(CRC/1 15907) 




Berkshire 

Hurley. Henley-on-Thames 5 miles. Maidenhead 5 Vz miles. London 26 miles. 
M4 (J S/9) 6 miles. M40 (J 4) 7 miles. 

(Distances approximate) 

An outstanding newly built house set in mature gardens 

with Thames river frontage 

Hall, 3 reception rooms, family room, conservatory, large kitchen, 
master bedroom suite, 2 guest bedroom suites, 2 farther bedrooms and shower roam. 
T-arp. games room, atudra/snooker room with adjoining kitchen. 

Extensive “ specialist” features. Large entertaining terraces. 


Secret ©wdeu with boat house and Thames river frontage. 

Aljout Itya acres 
Apply- Beacnnsfield (0494) 675368 
or London 071-029 8171 


(TLUAGR/1191I3I 



Antibes - Cote d’Azur 

Spectacular Position overlooking Port Vauban 
1-4 bedroom apartments for sale off plan. 

Prices from £125,000 to £1 million 
(subject to exchange rate fluctuation) 

Joint Agents: 

MPM (France), Chateauneuf de Grasse (010 33) 93 33 60 33 
Knight Frank & Rutley, London 071-629 8171 


(PD/l 17110) 



Meribel, France 

Geneva Airport 120 kms. Lyon Airport 200kms. Cham be ry 60kms. 
(Distances approximate) 

A wonderful chalet with exceptional accommodation 
situated in the heart of the French Alps 
Extensive reception rooms with multiple sitting and dining areas. 
GaDeried landing with study. Kitchen, billiard room, sauna, ski room. 
Independent guest wing with reception area. 

In all 8 bedrooms and 7 bathrooms. 

Self contained staff accommodation. Garaging for 2 cars. 

Pl anning permission for construction of separate Gardien’s apartment of 50m-. 
Landscaped garden with large balcony area incorporating outside jacuzzi. 
Constructed area about 600m a . Direct access to the lift system and slopes. 

About 6,000m 1 

Apply London 071-629 8171 (PD/HTIO* 




•■/■■.irM J _ 


London: 071-629 8171 

20 Hanover Square, London W1R 0AH. 










FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 1994 



FRANCE 



1 Ti 



I’ttrrh e\rt*pliunal. U iudm- 
iluull v sl\ led villa* Mantling 
brlupt'ii tin 1 Hrautullun gulf 
cour-ic and the Bov nf Saint 
Tmpcz. 

Hisi mu* ill*' 1 1 » iiit «il' .111 r\riiiN\r 

villa mi llii- -I'l'linli'il 
liKnli-riiii: ••in- nf l In* Inngesl- 

e-lalili-lii-il M„|f i-iiium'- mi llu* 

Kiticnt. 

'I .m»i:K [mill liv I'rariiiu-n u>in" 
tradilimial in.il«*rijJ> mu Ii as liand 
hi. til* 1 ■ iT.miii- anil jiiliipii* till**. 
•mitv \ ilia i*njuys -iiccl jrii I nr 
li.-w- nf l In- sum. tin- «nll. the 
\iiK \jril- ami tin- «ur nm ruling 
tutitr^'iil*'. 

Rfiund ihi* dork security if 
riis-iirrd l>\ a 21 lumr »i‘«-urit> 
giiard and by a central im-iI 
«iirvrillamv id all the villa? dial 
ran instantly ilciwi anv jhvsciuv. 






.is 


A full lime service team is on 
hand to ensure die maintenance 
of lawns and swimming pools, 
who also provide supplementary 
services that will make your lire 
easier ; theatre or concert 
reservations, airport transfers and 
shopping Tor the essential 
supplies you will need in your 
villa when you arrive. 

These are some of the features 
that make Les Parrs dc 
Beattrallo/i an exceptional 
development Furthermore, the 
professionalism and expertise of 
the developer are the guarantee of 
a sound real pstnte investment 
Judge for yourself : spacious 
living rooms (41 nr), loggia, patio, 
fully filled kitchen, 2. 3 or 4 
bedrooms (24 nr' each) all with en 
suite dressing room and 
bathroom, outbuilding, garage 
(35nr), and private cascade 
swimming pooL 





,es Parcs do Beauvalion - Beauvallon-Grimaud - 83120 Sainte Maxime - France 
Tel : (+33) 94 56 48 48 - Fax : (+33) 94 56 48 82 


INTERNATIONAL PROPERTY 


ARGENTINA 


Buenos Aires Province 
in the heart of the fertile 'pampahumeda' 

15200 acres in production 

A superb quality Estanda in a desirable and accessible location 

US$ 7 , 000,000 


U.SJL 



WYKEHAM 

MANAGEMENT SERVICES 


In Bs As: +54 1 3il 9657 
Fav +54 13113932 


in UK: 0723 862703 
FaK 0723 864329 


William B. May Company 


F.vclu.viw Town ;md ComUry Properties 


GREECE, EASTERN 
PELOPONNESE 


Non Ho Aliy Homos m unspodod 
ifioiT-on iMlP superb sea views. 

2 3tt-Jioona. al modem amonl&os. 
Easy across liom Athens and 
P-jcao Pnccs horn C60.000. 

OkJ'i ^ofwhousos fw rosiorotren 

and ptafc lot mcfcvxXiaJ protects 
also jvjJjWo 
E nquiries to Architect 
Fax 1010301) 801 2338 or write la: 
PO Box 31726-GR10O35 Athens 


ferine* Intrdnr* Unriopn* 

CrRFF.C F ( H ist Mainland ) 

‘sr^r.'n- >n* vj i'iv,lrii'lrr,' l<» n-alw the 
Ifil fl !ht- f unic 

d.inni m K-j.hl i'f IjdiI 

-tirtf.'il. '•* ih«" "iicjn ThiiDiiath mI 
I'liiil'r. 'vn.xr.h4ir Wr ihi ibX wrJi h> 
,11 - ! t* <>l 7~BHrr. in Anclep pn'prrr\. 
S. Iirj littMiiKin ■ ■fp.Mtanilx. I-iV muic 
'pl- nT •'It'"."’ 

T,l •Wl.tlMi; hn:.«IUi;i« 


LUXEMBOURG 


SplenCiC rode ortxKXous domain 
ci'j S 'jurti house, over 25.000m? 
I seated near city centre 
Allot mem possMe 

FB. 87 000 000 


CD IMMOBIULRL 
Fs\; (352) 42 M 


MEDITERRANEAN & INTERNATIONAL 
PROPER TV NEWS Quymg,'S»jHlng 

rtcirr.'i* property roaidonllai & 

Li'ijnl iCTvtcw innxivalj etc 
F.- you fa* croy Trt (RGB 53 £■» hre) 

K2 - OTAGO. CM SBC - Aon fa Ghost 
Tcwr. |G 01 ». iVod VVMDKs.VWPIosnocts 
Euv ‘.25V Unle 26 Hamilton SI. 

Eu^jmea: mjuk. 


ALGARVE - Portugal 


OWNTA DO LAQO ■ Freehold vOss i 
apartments. txmXVrtly frtftmd. toth goU. 
torwiia, trie ... 

VALE DO LOBO ■ Vitos. Umnhousos & 
apartments with golf and tennis, some 
Mi ocean vimn . 

COUNTRY AREAS • Selection of qualify 
v*r. easy nuen of Faro airport Douls. 
and miormaOon on ottahoro purchase, 
mortoopes. me. fcom: 

MEM. STEWART 
T«U (351) 89 393766 04 Itoura) 
Fmc<351l8» 


BARBADOS 

Restored Plantation House 

on 14 acres on the eatf coast of 
BaifaJiwi with HRX) T«i of sea 
ftuflliiyc. The house. siurouiiUcd by 
vemodohs. •ncrtoiLs the ocean and 
the property incorpomtcs a hole 
par J gotf enume of IlHW yards. 
Enuiiiriis - Dj\- Kuvcii 
KWP taooe . 809 423 4431 



DRASTICALLY REDUCED FOR IMMEDIATE SALE! 

NEW YORK. The Carlyle. E.70VMadison. EsaeSak. tafatlOntann pfcd- 


-ckKuu corner 2BR In one of the city _ 
room with eac-in-RaJiery. & charming prewar detaiu. The perfect corp or 
private iwWacc with Swiss horet s c i vic es & Health dub lacluded In malm. 
Once in a lifetime opportunity at only S 275, 000! Please call: 

Mercedes Mcnocal (In U5JL.) 212-872-2247 

575 Madison Avenue. New York. N.YL 10022 


WORLD OF PROPERTY 
MAGAZINE 
The best & biggest. 

For your 
FREE COPY 
Tel: 081 542 90S8 
Fax: 081 542 2737 


9 ACRE PRIVATE ISLAND, Laugh 
Roe. AWow. Era. Detais; Garettc, BLN 
Haven. Battaragh. Loxey. later at Man. 
Grow BAIaln IU-1 7PN. 

TUSCANY INSIDE OUT: Far the best 
selection a( proponics in Stn. Tuscnnv. 
Conlncl Diana Lfiwina Modro. Lie an sad 
ApenL TdiPoa (39) 578 26 5S 67*38 6S 02 


MANHATTAN, N. Y. 



MagnifTcenl 19th Century 
Period mansion. 

10,0130 sq. ft. Riverside Park 
and Hudson River 
near Lincoln Centre. 
Needs restoration. 

OSS 2.5M ono 

Phone Out) 44 81 S91 0500 
or 0101 21 2 595 2992 


ASPEN ESTATE 

Incredible 5-aae cute with 
SpeoaEOter mountain views. Property 
includes 3 luxurious four-bedroom 
furnished home, lavish ganton. 
private pond, plus 3-suD horse bam. 
510^50,000 

Conuci: Nick Conics 
Coates. Reid and Waldron 
TEL: 303 925 1400 
FAX: 303 925 2895 


New York Apt 

IN WALL STREET AREA 
View of BUyn Bridge, Seaport, E River 
from gracious & distinctive thpkx 
condo rpc in hatftnut Ndg. Ur on 
w/ErpJ a beamed ceding. 2 may dining 
on. 3 bedrm. 3 balk, study area, 
foyerfnn, large closets & storage 1900 
sit Mixed nsidratiaVcommerda] use 
pea mined- Brochure on rcRoeai US 
S399.flQ0.00 OOered by owner. 
Tku 212 219 3679 Fax: 212 2193471 



480 Ac lush green 

valley. 

lalm. - Sl.TSOjOOO 

3500 Ac oak lakes. 

near 

CpeewufSbjOOOJXO 

4000 Ac movie ranch, 
meadows. - SltUXXLOOO 

2150 Ac 5000 if home. 

polo 

ponds. 

golf courses??- $1(L50QJD00 

CALL ALEX IN FARES 

[ 45S7JnJ6 

1 


SPAIN 


♦♦♦JAVEA, COSTA BLANCA##^ 

BLTVVCIN Al JC-VPrtT - VaLT-Nc'IA 

tiolf Cl nii. Yacht Club * Property of Great Character 
* N»Li * ms. 3 cvnh. maunilkcnt lalrtn, timing room, sitting room. halL WC ptus 
o..d.i*. mus:c nann anti snircnxmjs. pniu cosvrvd icmcc. »ivcr 4UUnY. I\xd. 
hcauiiful gulden. 2^0Um : . 

85 Milliun Pis. direct omwrx. 

Piwniiiv more ImJ and fpiestimaff coring' 

For full details contort: Box 121 Fax: 34 b WwWIS 


NEW YORK CONDOMINIUM 
UHC0LH CENTER & CENTRAL PARK 


Opportunity to purchase (Hand new 
condo with faoufeus NYC views. 
TecfuiologicaSy oCvdrtCsd construction 
& design. On site health dub. Floor 
plans & prices available upon isquest. 

Joan Klein, Vice President 
Tel: 212-3384038 FMC 212-6884424 
GREEMTHAL RESIDENTIAL 


FLORIDA. SULFCOAST. Detached 
* bedO uadi pod Home wOh vmmvtew. 
(1S2JTO0. Furniture & sum can aho be 
puchesed. UK owntt O 0044 36002 or a 
lit Ftaftrl*. GenWi 1-8134^0-404 or 
Fax 1-813-449-1964 far this or any other 
new orraute property or busfceu. 


ANDORRA 


SUNNIER- GENTLER 
PARI OF PYRENEES 


Ef&cka modem bouse, 340 spn A tax 
fieel Spfaaiid setene vfcwa, facing Spain; 
5 rural mim above the span town of 
Si Jala; SR DR large ff Lichen. *ndy, 

4BRi two hBthrpomi, dnfcrogo, very 
farge ma ae fcapan aoB area; 
£Z45JMBor«adnge ndhero Eapfand. 
Ato M tty p iX mr parr afgaien. far sak 
FHfrdiwnerAndona 43459 


COSTA BLANCA EXHIBITION I &20O. 
Hftar. v 0 &s.irv Suri-y Eng: TolF» 081 
CdC «7fi 

SOUTHERN SPAIN A uvqui Wsmo and 
nridtw-ii opvcla(mni heetporang a emu 
etc* ifl halo Ma god causa BnahttWig 
eeunayMo amt wtaws ol north Africa and 
oOcrua a tow rairumaiQ jpjtinonts (mm 
m LVX5 and Doacino v*a tan Cl3WMa 
Tet n«B99 Faic 0373683021 


MALLORCA 5W qM area. 4 BBda, 2 bate, 
fully rum. Magnlt ntcrn. Pool & i«mla. 
Reaeskady pocod. Tel: on 2803313 

SPAIN: S0T0CRANDS: Villa homing 
tahway of VaWerramaS Ryder Cup goll 
courea Unury spec 4 ocd. 3 bath, pool 
C* 15.000 Tel. ini »(3I) 182024286 
{TuMdoy-Smunfey 10-4) 


DO YOU LOVE THE EXTREME between 
New York jnd Long islands nature? 
Japanese styled losidetice on private 
booch " LI. Oiwtfi poini. pool. 6 acres. 
USS 1.200.000. Fav Germany (OSS) 
69QQD53/Tel: S9BHS8 Tel: USA 516 
32OZ770 

FLORIDA . DISNEY Luxury tifa TO lEf. 
3 bed. 2 barb, air rand., own pool in 
quiet residential area. Good tor poll. 
Rum E325 p*r. Tat 0753 S833SB 


AimcWRA 3 beds, 3 bribe, pool, 3 garages, 
747 30 m land, conridor pari exchange 
£250,000 or whole £390.000 Tel; 
0103362831321 or vnhe to BPS PoaM 
Fnt na tise. Encaifa, Andorra rfa agents. 

ANDORRA LuaayA Betfenn hmly house 
wfai awny RMdri tsabros set fa beauflU 
scenic suTMuiidfaga. For detaaa TellFax 
UK 0367 710294, 


EXCLUSIVE MEDITERRANEAN PROPERTY 
BEAULIEU S/MER - COTE D'AZUR 

5000 Sq m Land - 800 Sq m Italian style Villa - 300 Meters from Port & Sea. 
80 oigange trees and tropical gardens. 

Price: FF14 Mio. 

Interested parties please contact owner directly after 8pm 
via Phone No. 0033 93010094 or No. Milan, Italy 0039 24699881 
of Fax Italy No. 0039 28376383 
No Agents Please. 


r — 


International Property Brokers 

C^Sifexl 

w Midi Pyrenees, Languedoc Rouanflon, 

J) Sooth West, Provence & Cote d'Azur 


Tel: 0713841200 

ll 1 Doneraiie Street, London SW6 6EL Fax: 071 384 2001 J) 

, PFRISIIFIIX - DonnoaME ID milts 


PROVENCE CACTWfraAS 

(20Km- NE. AVIGNON) 

Balcony flat 5Sm 5 . Living. IdL area. 
Double bedroom. Ige- badnootn scCdrtt 
Adi. Cote dh Rbdne vrocyards; Weal 

besc far Aries. Nhnes. Aix etc. 

1 fa. Marseflle-PmveBCeAiTport- 
Eng: UK #483 722784 BrurnMSept- 


MONTE-CARLO 

Michelangelo 

(FontvieUe) one 
bakoom apartment 
71 Sq m terrace, 
equipped kitchen, 
parking space. 
FF3,100,000(R72) 

A AGEDI 

7/9 Bd do Moulin* MC 98000 Mueau> 
Tdl I « 9S9 fttf AW 9-12 J 


VILLEFRANCHE 


Stunning Provencal style 2 
storey bouse on private estate. 
15 minutes Nice airport and 
Monte Carlo. 4 beds, 2 baths, 
2 reception rooms, kitchen, 
garage, garden, pool, terrace 
with sensational uninterrupted 
view over the bay. 

Fully air conditioned and 
centrally heated. 

FF 14-2 MILLION. 
r«fc London 44 481 846 9071 


centre 2 *4. 94MQ Ptats* 

Total 1 7600 aq m (4000 tdfa CU) FK500L 
nag Td(33)53904165 Fax: (33) MW7BS7 

FRENCH PROPERTY NEWS Monthly 

dd. now a aM prapwto. legal column bbl 

Ask lor your FRHE copy now Tat 061 947 
1834 


VALBOtME, I3len bum Groms, VNaeSn* 
2 befan. pool, gaiden. dm SeL terscos. 
1 52m FFr. Tcf: Owner +33 9312 2646 


NEAR COTIONAC. VAR. 200 yoar rid 
tanfaouw. 6 bods. 2 bWhe. pod 6 xian. 

Oarages Charm and 
2L4mFF. Encyinas (44) 071 6023656. 

FRANCE NIMES 2 room apartment 
9i tmous onurae Nhios oa 
tor sale 4OOAOO0. F« 0794 341900 

PROVENCE Nr. Abt^rvPoe Luxury vffle 6 t» 
bad. 4 bath, matte 8 oar, large pool w. 
peoi/BBO hse, panoramic view ire bay « 
C»sls. mountains and vbwyaids. 40 rrni. 
toi fad- afawL TM (USA) i-atSWSMI-30. 


SOUTH DROME - FRANCE 
Restored 18th C. fimnhouae with 

ponl surrounded bv 4 joes nt snpcib 
otxtmryside. Leisure or residcniiaL 
Exccltcol remn) revenue. 

PR ICE: FFr 1350.000 
Td: 33 7553 3457 
Fax: 33 7553 3821 


BANYULS-SUR-HER: Two badroomod 
house In old quareor. minutes I mm sea. 
FF oxuxn EnqiAfaS 071 586 150S 


SWITZERLAND 


| FRANCE near St. Tropes 

UNIQUE PORT GRIMAUD 

when mxrj property Aa* a toaCar 
frontage. Ground floor apartment with 
garden and doabU mneeing 
lone lOMABml. - beds, bathroom. 
Using room I kitchen, parking place. 

French Prana I £60.000 
Telephone lat*44 (O) 732 810047 
or fin cal 7*2 Biosa 


^COTE D’AZUR - VENCE? 

Exceptional luxury villa 380 sq.m. 4 
bedrooms, 4 bath rooms. Magnificent 
spacious salon with separate dining 
room, study. Situated oa 4000 aqm of 
w*di facing mature gardens with sea & 
country view* in tranquil setting. 
Large pool. 15 min Nice airpon. 
^Prks 6J5QOJOO FF. Tde 93589786 A 


QUEEN VICTORIA’S TEA ROOM * now 
a ta asH gi o uB Rt a tmani In Marnon. 265m* 
ground Boor fa tamoua beach frort hotel 
Secluded Htrace. dVed access to main 
m defaifan c u t a a and beach. CHfllSTOE 
DAVIS, Chrtarre Sari T* {3^ 93 60 64 IS 
Fas S3 CO 69 89 

PROVENCE. Historic house in tradit. 
picturesque village by lake. '/• hr eea. 
Dowtop potaidM tar 2 apart tf req. 8*OJOOa 
Debts ring 081 740 7904 

ALPS - Wide range ol properties In 
French and Swtas ftps. Aprs. FF250000*: 
c/reMs • FF 650.000*. Savoie ImmohBer 
Lid 01784471377 


COTE CA2UR, ALPES UARnaiES & VAR 
SPA (EU) MBs me best Aparthiena and 
VRaa n Cannes. Morns Carta, Si Tropes. 
Vance, Anltoea. Menton and omer daWaUe 
mdutive loesflarm. Tat 071-483 0006 Fmc 
071-4830438 


SWITZERLAND ViU*«Cfaafra-TbcAstragafc-l>^'F 4 cl^^ 

The Oomftiw (to rera Wan urepoa « «°* "rat po rtrero 

aceoraa ptomu Jretortsde toecwwe ft VBws. VwowflrteiyaNtthtoB me tonwa Donatos ae la 


■ ol tore wwaxne 9“ dTJUvv eft*e ear Orion red aw ptose The 

ton are absohinty stunning and Mr peacs aofl boway o« uurtwvnwe n usny «*ws»- 

Aiire»>ira«iria<)»»wDorarae8rBrri4«e»eriwfa Bi4 aro»raty aprornw ri w toe 
'Amgws'. risri MMb tnoWghwj radwri oisra T*wtoapw*nw» ra 

pm.m n. ^^jtMTwU—jid n i l M VitieW ialcaa. 

ifliwii i an ii ■ tri i<¥ nnnrfr wlnfiuWiTiiiindri iVWnf r liTiT ** i 1 **i’* rigspd 

tcw nS le nri TwoovnedriihaTiwKteriisaort.pwliOtorritoFtoaKxwanitri riyeceMrimM 

OwdW^ftMiWrwoi*raGane»s.|usl20'*4nu»neto»»>»mri.or«rairegsrWWn- 

Hw Domriw de rSysto "Pra«* » rano ol i»n*» Dora sod faorera rih prepwile 
« a ora eoRfrillue pries 

payona pr . s Ja tywo 
aria 


upte70% 

Hme raridprttoerfMMpweere toe wry bad ea a nrie ot wto w ito drift* and twftri «4 mh 
m arid. i i iMu no red pranvao Vi (Mariana and Amricx. Lsonaila ftopordoo totomriMft > * 

B*ri»nmedS»irecofnprer>iftiowaOj»»«morionei«ftto»BModidcemiwew»Dararii 

a ^raworinra cwravd rara onredrapwmbfcrd toias soi reB P rari waSraor 

LENNARDS PROPERTIES INTERNATIONAL 

I 071 586 0462 or 081 95869785194 ree re o w n . red re ria n da up to dp» 


SWITZERLAND 


25 Years in the Field 

Unrivalled range of old/ocw 
ski/s trmnter CHALETS and 
APARTMENTS for enjaymeot and 
roveaunent. bom top super-resort 
VERBIER down to tiny villages. 

Alpine Lbsure Properties 

at aCbntaMe. aomet hn e a rmoiaul, prices. 
imrirei Office Vans Abroad Ltd 
Tat 081 8915444 
Fax 081 8920204 


DAVOS 

Stvmrprbnc: 


Luxurious, but cosy and rustic 
home (2 inlerconn. viRaa. 9 rooms, 
2300 square metres) 

Price idea for djecuanion Sfia 3M 
Write Ur. AJ. G redig. Finals 
Hotel Ch-7280 Davoa Dorf 
or Fax (41) 81 46 44 01 



Mountain ■ 

ttawwa a qurihr AFMtTNBfD 
CHALET fa MoS fguK. VUARS. 

LES DUBLERE1S, LEVSH G3IMO 

VMto. CRAfSaaOHlMNA. vat 

retfiomSft 200001- crattodriee 

Mu41EI7IIB< - fax 734 12 20 


VERBIER 


Duplex apartment, very central, sleeps 9. 
3 bathrooms, double reception, car perk. \ 
fully e q ui p ped and fumahed. 

Sb- 550.000 

Available far aoo-Swiss residents. 
Further details: 

TcL 071823 7793 
- Fax: 071 S89 4579 


MONTREOX - VTLLENEDVE 

Apt 87aq re im:l. BALCONY. 37/1000 
of 3539 sq m GARDEN with 
SWIMMING POOL- 
LAKE GENEVA and MOUNTAIN VIEW. 
SwFr 375,000 

Mortgage on favourable reran possible. 
Write to: 13 Kingston Hill Place. 
Kingston KT2 7QY. UK. 
or Fax +44 81 974 5431. 



FT Worldwide 
Residential Property. 

Every Saturday the Weekend FTs Residential Property section 
enables you to promote your property for sale or rent to approximately 
1 million potential home buyers or tenants in 150 countries. 

For further details 

Cali 071 873 4188 or Fax 071 873 3098 

Weekend FT 






FINANCIAL TIMES WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


FIELD SPORTS 


A utumn is the high sea- 
son In field sports. 
Pheasant and wood- 
cock are shortly to be 
in the firing line; 
*. grouse and snipe have been fair 
game since the glorious twelfth of 
August, and the shooting season for 
partridge, wild geese and duck 
opened on September L 
The grouse in Scotland have been 
a little disappointing, but salmon 
are doing welL And now that the 
harvest is in. cub-hunting has 
begun - training of the cub hounds 
to work as a pack and culling the 
weaker cub foxes. 

They are all expensive sports but, 
if you travel almost all the way to 
John O'Groats, the northern tip of 
the British mainland, you «^n buy 
an estate of 44,000 acres for less 
than the price of a house in Ken- 
sington, west London. 

The Forsinard and Bighouse 
estate, in the bogjand “flow” coun- 
try of Sutherland, offers vir tuall y 
every kind of field sport, plus a 
— 4,300-acre farm, 15- bedroom hotel, 
""v. railway station, a sand and gravel 
quarry, and an extraordinary vari- 
ety of wildlife. 

The price? Strutt & Parker in 
Edinburgh is asking for offers over 
£1.35m. And no parking problems. 

The natural home for h unting 
folk is Leicestershire, where six 
packs - revered names such as Bel- 
” - ■ voir, Cottesmore, Femie, Pytchiey 

_ and Quom - converge on Market 
s£. . Harborough. 

It is special because much of the 
rolling country is still pasture, 
which keeps the old pattern of 
small fields divided by hedges. As 
the hedges were not grubbed up 20 
years ago, jumping over them offers 
more thrills - and spills - per mile 
than in the rest of the country 

D where they were removed l with 
government grants). And Leicester- 
^ shire has fewer barbed wire fames. 
An ideal hunting box (house for 
hunting) with an immaculate stable 
! '*** yard with eight loose boxes is Rav- 
" ■> enhead, at Ingarsby, near Leicester 

-* 7/f, in Quom hunting country. Strutt & 

■* Parker in Market Harborough offers 
* •- r *;■ it for £450,000. 

* * Also in Quom country (for Friday 

’ T meets) is Inkerman Lodge at Htm- 
■*■*■>1 garton near Melton Mowbray, 
which has 60 acres of grassland and 
costs £425,000 from Savills in Stam- 
ford. In Cottesmore country, Strutt 
& Parker offers Alstoe Farm at Bur- 
ley-on-the-Hill in Rutland for 
£290,000. 

An alternative is to make some 
income from hunting, by taking the 
lease of Kirby House Stables near 
Belvoir Castle, which used to be the 
Belvoir hunt kennels. The yard, 
with 49 loose boxes (21 let), three 
cottages and paddocks, yields a net 
income of £6,000. but could manage 

‘ a further £15,000 from letting the 

remainder. The price for the lease. 



•;r’ - 









The BaWsodara fishery in Co S&go 0aft) could be made more co mmer cial (price from BSOOjOQQ). And right: Camoch, Scotland, which Includes a house, a hffl and a whole river system (from £300400) 

In the hunt for a sporting venue 

Gerald Cadogan surveys the hunting, shooting and fishing properties on the market 




mm 









For shooting on the PanrjJnes, consider the ScargflJ estate of 4^22 acres (with sporting rights over a further 022 acres) hi Teesdate. Price: £1-35m 


with 10 years left, is £100,000 from 
equestrian property specialist Chris- 
topher Stephenson. 

In the Cotswolds, Knight Frank & 
Rutley in Oxford is selling Copse 
Hill Court at Upper Slaughter, a 
house converted from a 19th cen- 
tury stable block but still with five 


loose boxes and nine acres in Hey- 
throp country. The price is £575,000. 

Two other Heythrop houses from 
KFR are Evenlode Place (£900,000) 
and Downs Lodge near Shipton-un- 
der-Wychwood (£545.000). 

Another hunting paradise is 
Ireland, where it has always been a 


cross-class pursuit If you want to 
go out with the Wexford, Kilmokea 
at Great Island. Co Wexford, has 14 
loose boxes, an indoor arena and 19 
acres of farmland. But any buyer 
must also be a gardener, to main- 
tain a famous garden of seven 
acres. The guide price from Jackson 


Stops & McCabe is l£400,000. hut it 
would be essential to be sure of the 
outgoings before taking it on. 

For shooting and fishing, com- 
bined perhaps with deer stalking, 
the ideal is an estate in Scotland. 
"Demand far out strips supply," Wil- 
liam Jackson, of KFR in Edinburgh 


reports. 

Besides Forsinard and Bighouse 
in the north. Strutt & Parker offers 
Camoch in the west near Fort Wil- 
liam (where the railway station is 
the link with Glasgow and London). 

Offers over £300,000 (down from 
£375.000) will buy a house, a hill 


farm, *L355 acres with deer stalking 
and rough shooting, and the whole 
Camoch river system - which is 
always a good buy as it is easier to 
improve the fishing as you want it. 

For the romantic, the same agent 
offers the Island of Inchfad in Loch 
Lomond for £550.000 (or in one- 
eighth shares of £90,000), for duck 
shooting and as a base for fishing 
salmon, trout and powan - the 
loch's own freshwater herring. It is 
120 acres and has four cottages. 

The Upper North Wark fishing 
beat on the Tweed (with a four-year 
average of 122 salmon! costs 
£700.000 (again Strutt & Parkeri. Or 
buy a specified week in perpetuity 
on the Beauly river near Inverness 
from £11,000 plus VAT per rod per 
week on the Upper Beauly <126 
salmon last year) or £25,000 on the 
Lower Beauly 1 1.065 salmon last 
year), from KFR. 

Fishing in the English West 
Country is far cheaper. Strutt & 
Parker in Exeter is selling a bent on 
the Taw in north Devon (20-year 
average: 23 salmon and 42 sea trout) 
for £175.000. A cottage is £75,000 
extra. Stags offers Feld House near 
ChulmJeigh with 11 acres and a 
mile of fishing on the Little Dnrt, a 
tributary of the Taw, for £230,000. 

And in glorious, unspoilt country’ 
in the west of Ireland a complete 
salmon river system is available. 
The Ballisodare fishery in Co Sligo, 
covering four rivers, belonged for a 
long time to the Cooper family (as 
the Cooper Act 1837 ordained). They 
managed a superb fishery in the 
last century, which is now for sale 
with the netting rights in Balliso- 
dare bay which means being able to 
control the fish returning to the riv- 
ers. The present owners have run it 
for pleasure, but the new owner 
could make it more commercial 

In recent years the average catch 
on rod and Une has been 1,200, with 
800 more netted. The minimum 
price is !£500,000 from Hamilton 
Osborne King or KFR in London. 

Finally, for shooting on the Pen- 
nines, consider the ScargUl estate of 
4.222 acres (with sporting rights 
over a further 922 acres) in Tees- 
dale. Besides grouse (20-year aver- 
age: 393 brace), it offers pheasant 
and duck, and six let farms produc- 
ing £23,338 a year - to set against 
the price of £1.35m from Murray or 
Savills in York. 

■ Hamilton Osborne King. Dublin 
(010-353-7-676 0251); Jackson-Stops & 
McCabe. Dublin (010353-1-677 1177): 
Knight Frank & Rutley, Edinburgh 
(031-225 8171). London (071-629 8171) 
and Oxford ( 0865-790077 ); T. Murray. 
Boswell (091-526 1191); Savills. Stam- 
ford (0780-66222) and York 
(0904-620731); Christopher Stephen- 
son. Newbury (0635-528585); Stags. 
South Motion (0769-572263); Strutt & 
Parker. Edinburgh ( 031-226 2500). 
Exeter (0392-215631) and Market 
Harborough (085S-433123). 



Andrew Grant 


By DutEoioN of Iawnsde School Association Ltd (Recktered Charity) 

WORCESTERSHIRE 

LAWNSIDE SCHOOL , MALVERN 
S MAIN SCHOOL BUILDINGS (formerly 
houses), new gym, classrooms (over 40,000 sq ft) 
and land - small area development potential 
FOR SALE AS A WHOLE OR IN 6 LOTS 
Further details: 

Andrew Grant Commercial, Worcester 
Tel: (0905) 29402 
Or 

The London Office 
43 Conduit Street. London W1R9FB 
Tel: (071) 439 3900 


y;i . .1 


COUNTRY PROPERTY 


K K N N E 1) 'i 


CLUTTONS 






•* 

t 




-a 


Hill ♦ Clements 







SURREY - MERSTHAM 

London Bridge/Victoria 31 mins. Ragate - 5 tmles. 
M2S/M23 - 2 miles. London - 19 miles. 

In lovely rural surroundings on the crest of the North Downs, 
an historic Grade U* period farmhouse with secondary house 
and cottage set in secluded grounds of 3 acres. 
Described by Pevsner as 

"about the best vernacular farm on the Surrey Downs." 

5 bedrooms, 2 bathrooms. 5 reception rooms, garaging for 4, 
period outbuildings, swimming pool, all weather tennis court. 
Guide £875X100. 

53 Quarry Street, Guildford, GUI 3UA. 

Teu 0483 300300 Fax: (0483) 301212 



MULLUCKS 




WEST ESSEX 

tlnral Duiunnw 5 miles - Mil 12 miles 
HANDSOME VICTORIAN 
RECTORY 

Hull. 3 Reception Rooms. Kitchen, 
Cellar. 7 Bedrooms, 3 Bathrooms. 
Dressing Room, SdfCOllWUied 
Cottage with - Reception Rooms. 

3 Bedrooms. Pool, Tennis Coim. 
Oui buildings. Paddock. 9 Acres. 
OIR £550.000. 




.jortm* 


Ml’LLLCKS WF.l.l.S: l»27‘J 75c-f0» 
THE LONDON Oi l K L: 071 439 3V00 
,1 0 1 NT AGENTS: .v-WIU.S; 024f 260311 


COMMERCIAL 

WOODLAND 

STIRLING, 

MID SCOTLAND 

100 acres 
£80,000 

For further 
information contact 
Simon Veidon or 
Marcella Stephen 

Fooutain Forestry 
MoJEogtan, Banbury, 
Oxan 0X17 1AX 
Teh 01 295 750000 
Fata 01295 750001 


Countv Honicst'an'h _ il 


An independent, cost 
effective and very successful 
house finding service 

Devon & CorawaB - 0872 223349 
Hants & Dorset - 0962 715768 
The CotswoMs- 6242 262260 
Thanes Vnfley - 6494 766140 
Surrey & W. Sussex - 0730 817444 
Wffistfre & Somerset - 0793 731082 
Bed, Herts & Caraba - 0234 354592 
East Anglia - 0284 704422 
London -071 738 S93S 
Fu- 0872 223727 


CHESHIRE LYMM VILLAGE 
Adj. M 6 . M 56 , - M 62 - Man. A/p. 
Individually styled detached boose. 
3 req>. + conserv. Kitchen + utility. 

4 double bedrooms +-ensuite 
shower. Double garage & workshop 
under, Comer site - patio - mature 
garden. Private sole - EZ75JOOO ojlo. 
TeL 0025 755573 


THE ROLLESTON HALL ESTATE 


Leicestershire 

Leicester 11 miles. Market Harborough B mdes (St Pancras 55 
minutes) Oakham 9 miles (Distances and Times approximate) 

A PRIVATE ESTATE IN AN OUTSTANDING SETTING. 
Principal House. Lodge. Avenue. Lake. Parkland. 
Woodland. Walled Gardens. Swimming Pool. 
Cottage and Outbuildings. 

In all about 175 acres. 

Additional property may be available separately. 

Contact Andrew Macpherson 071 409 1944 or 
Andrew Jones Stamford 0780 52788 


TELEPHONE 07 1 409 1944 


Mm Sussex - Near Ditchung 

HbmoAHtmkiBStduMOimlczG&rldtMi&a 
Magnificent country bouse in M 
outstanding sttnatioa amidst wooded 
co mnijui de with views to the Downs 

3 reception rooms, snooker room, bhdmV 
breakfast room, office, 2 bedroom bubcs, 

4 further bedroom*. 3rd tialuuuui. fludy. 

3 room guest flaL Garaging, dock tower, 

swimming pool. Gardens, ponds, paddocks, 
farmland and woodland 
In all about 141 Acres 
HAYWARDS HEATH OFFICE 
(04441 441166 


Wcsf Country 
House Search 


■1* iw^ fir hnim ’it Ur /• n> artprirr 
f fumfrv tUmsrr ttr F.aain in 

r«ii',v. nttesn. snatFRser, a mow. 
nn vniiRF.t uE&r lUMPsntRK. 

I'U-aw i.mwrt Rnhrrl Uwrman of: 
lire Country Uavtr Van* 
if Mop St.. Shrrli. ntr. [Un rt MV W 
rw.- m Mj AI296H Far- fBVJSI HM». 

Htu/ntr: IMMI .W07I 
jtMO h w d wtr— M — m dsWV IgK 


Kent Coast 

(W TnmdZruia 

Lmogtom 2 jvoreld P t uUiPiB f orerteaMnc 
dte sea towards France 
3 icccpwos, mpeth tectai. 3 bedrooms, 2 
brahroonw, balamy. Ml Video aurv. Garage. 
PBrtmg. C 75 JMW ' 
FOLKESTONE OFFICE: ( 0305 ) SSMZ 2 

A VALUABI£ INVESTMENT PROfEKTY 

Hampshire - the Candover Valley 

BeO/ran Alrajerd and sotr 

0 ( iniEfcs) » Devdopera and Inwamisanrl 
r xai ijB i a ij^ 8 residcrtial unto, playing Sdd and 
dobhontc 

Pmly Id and pfwLdng n,KKL 50 per amwm 

pMsflile drvetopment area - 4 JS Ana 
Fhr Sale as a Whole 
LONDON OFFICE: ( 971 1 4 U 1010 
ROMSEY OFFICE: (07041 522670 




West Sussex - Angmejung 

Lamba^S aOia.AnodtHm3a, mvrittieOnda 

An bnprvmfre detached Eamfly hoax dose 
to (he heart of this Bar Sasser vEage. 
Reception baD, diubroom. din i n g room, 
suing nxm, s«ai room, (uwy final 
Idtcheofaemkfaa room with p> final Aga. 

3 bedrooms 2 bathrooms, gas fired central 
hexing. Annctivr south bang walled 
gulden, detached donbtc gsra^: and puling 
for several cars wkhin its own groorat 
Price Guide £ 280.000 
ARUNDEL OFFICE 
(09031 882213 



WILLIAM 
11 BROWN 

m 



An attractive Grade (I listed 
country residence. 4 reception. 
5/6 bedrooms. 3 bathrooms, 
double garage. 12-5 acres. 
Price Guide: £350,000. 
TEL: 0728 603232 


FINLAYS@N HUGHES 

CHARTERED SURVEYORS 


WESTER ROSS 
LOCH MAREE 


* 

in an area of great beamy ♦ 

3 reception rooms. 7 bedrooms 
-fr Attractively badKaped 
garden Q Scope ID ooniimie an 

up-market summer h«d ♦ 
About 2 aens. 

OFFERS OVER £ 198^00 
Reft 9166 

* - raff 

1 


!5 Church Street. Inverness IV 1 I DR 
Tel: (0463) 2243-13 


SALCOMBE 





OXFORDSHIRE 

NR HENLEY-ON-THAMES 




Henley 2Vi miles. Reading 7 miles, 

(PADZHWnUN 25 MlNtTIES). Central LONDON 40 MILLS. 

A FINE FAMILY HOUSE OF TUDOR ORIGINS 
WITH GOOD OUTBUILDINGS AND PADDOCKS. 

Hall and 4 Reception Rooms. Kitchen, Utility Room. Cellars. 

6/7 Bedrooms, 3 Bathrooms. 

1 Bedroom Cccagc, Timber framed Bam. Range of Stables. Gonfcns. Paddocks. 
About 25 Acres. 


EAST SUSSEX 

NINFIELD 


s. DEVON, TORBAY. Distlnoulahod 
Housp ot Charm hi noorly 3 acreawttfi 
Mdfloft * atmom- wawtefl mwWniMaon. 
Hac. Hat. 3 R«. Rooms, 6 B«*. 2 Ba»a. 
(jaranoG & Vomndabs. To ouedon gl. HUM. 

SSSra. 5 nom Sl. T.W past 2T»t 


rELOCATMQ TO JERSEY? Rartod housa Is 
lot tor five yoora. Tip kip Confliaon, nay 
furnished and equipped. 4 bedrooms 9 
betfnoams satt fist ^rrage bugs ponton. 
Pangantc anaitoo. FtejdBrt Mq u o M ciill a w 
nqulect Ar<Mabt»OS 34 SS 37 M. 


EXETER/DEVON 

■ Imaginative detached house on 
city edge in cul-de-sac position - 
Unique features, loft rooms, 
spadaus Bathrooms, phis 
conservatory and' secluded 
gardens. £155,000 
Tel: 0392 75503 


Bemull-on-Sla 3ft miles. Battle? hum 
(OwarM CtuSS/CAnma Stsget 7 0 tons) 

A CHARMING 17TH CENTURY FARMHOUSE 
LISTED GRADE IL 

Hall aixi 4 Reci-prion Roomrv Celbr. h Bcdatms, 2 Bfflhrooiris. Swimming Pod 
set in a group of ombuikltngi Mature Gardenft. About 3.b Acres. 
ALSO AVAILABLE: 3 Bcdinooied Cottage with adjoining Barn having 
potential for conversion. 2 Bedroomed Gate Lodge. 

127 MOUNT STREET, LONDON W1Y 5HA 
TEL: 071 4» 0676 FAX: 071 491 2920 
















VI 


FINANCIAL TIMES WEEK-END SEPTEMBER 


24/SEPTEMBER 


25 1994 


ON THE WATERFRONT 


A walk on the waterside in Britain’s cities 


Gerald Cadogan 
sees new horizons 
on old waste sites 

M arina develop- 
ments. Two bor- 
ing words that 
strike pleasure 
into the heart of 
any UK property developer. 

In truth, these areas are often rel- 
ics of the Industrial Revolution - 
old ports well suited to conversion. 
They can give new life to their 
cities, providing space and visual 
pleasure. And. usually, they are 
next to city centres - often because 
they were the reason the city was 
founded. 

Now that the Department of the 
Environment is tilting against edge- 
of-town greenfield sites for develop- 
ment, these brownfield/grey-water 
sites are an alternative to regener- 
ate Britain’s great cities and clean 
up industrial wasteland. 

In its beyday, around 1913, Car- 
diff, the Welsh capital, supplied coal 
from the south Wales valleys for the 
world's steamships. But this rich 
commerce had to take into account 
the extraordinary tides in the Bris- 
tol Channel. 

Fbr 14 hours a day Cardiff Bay Is 
mudflats. Boats laden with coal 
could leave only at high tide. The 
Coal Exchange in Mount Stuart 
Square (the pre-first world war 
equivalent of OPEC headquarters) 
had r-.iiv4ta flunking the entrance to 
the trading floor to indicate tidal 

Hini»s 

Today the tides, which can rise 
and fall more than 30 feet, are the 
reason for the largest scheme in the 
regeneration of waterfront Cardiff - 
the building of a barrage across the 
bay to pen in a 500-acre freshwater 
lake with a stable water level that 
will be a haven for watersport 
enthusiasts. 

After many delays, work has 
started and the barrage should be 
completed in 1998. 

This huge space of water will lie 
between Penarth on the west and 
the inner harbour of Cardiff to the 
east, which is the centre of the Car- 
diff Bay Development Corporation’s 
schemes for new housing, jobs, 
facilities and shops around the old 
coal port (The working port is the 
adjacent Queen Alexandra Dock, 
which dates to Cardiff’s prosperous 
years.) 

The port at Penarth is already the 
Portway Village marina and is set 
like town squares, around two dock 
basins under the dominating pres- 
ence of the old customs house on 



The Cardiff Bay Barrage site a huge deirete p nwnt to hdp naganrata the city 


the cliff above. Camper and Nichol- 
sons runs the marina , a develop- 
ment by Crest Nicholson Cits joint 
company with Crest), which has 
about 230 boats permanently. Two 
housing units are still available, 
and some are for resale. With visit- 
ing boats, 18 per cent up on last 
year, it always has something to 
watch. Td like the activity - and 
the barbecue parties here,” says Pat 
Lewis, who moved from the Mid- 
lands to be housing strategy man- 
ager for CBDC. 

The tides make for exciting trips 
on a Bristol Channel cruising route 


that stretches from Pads tow, in 
Cornwall, to Gloucester, says 
marina managar Charles B ush. 
Once it has a stable water level, 
Cardiff Bay wfl] become a major 
venue for boating, he says. 

In Cardiff, access to the port has 
been improved. The new peripheral 
distributor road, which links Cardiff 
Bay with the M4, has been put in a 
tunnel and a boulevard, to be called 
Bute Avenue, will lead from the city 
centre to the waterfront. A new 
opera house for the Welsh National 
Opera, and a “virtual reality” cin- 
ema will join the Welsh Industrial 


and Mfl ritimw M irewim, T anhnlqnftg fc 

(a hands-on science museum) and a 
Harry Ramaden's for fish and chips. 

Job opportunities are rising with 
several new offices - including Nat- 
West's resuscitation of its grandiose 
hank of 1916 in West Bute Street, 
another symbol of Cardiff’s wealth. 
Nippon Electric Glass and Schott of 
Germany have recently invested 
£20Qm in a new factory. 

Cardiff is different from ports 
such as Manchester and Liverpool. 
Its history as a coaling port means 
that it needed only large flat areas 
to dump its product There are no 


warehouses to turn into flats, 
except for the isolated conversion 
by Lovell, a few years ago, of a 
SpiDers’ flour warehouse. Instead, it 
gives a rare nhance to use lots of 
space to build a high-quality town- 
scape from scratch, which is 
CBDCTs arm. People may enjoy liv- 
ing and workin g around the inner 
harbour - and praying; they will 
have an Anglo-Catholic church, a 
Greek Orthodox church and a 
mosque within 100 yards of each 
other. 

The new housing schemes, have a 
targeted 6,000 unitsrwith 1,700 built 


or being built. Barratt, Beaser, Tar- 
mac, Westbury and Windsor Quay 
are the developers for a variety of 
housing, of which 25 per cent will 
be sodaL The whole is an exciting 
plan to reunite a city with its roots 
in the water. 

Swansea's wealth was in mgfail- 
working, but only two chimney 
stacks are left of the 300 that were 
there at the turn of the century. 
Two years ago it opened its barrage 
at the mouth of the river Tawe, 
creating a lakp with excellent moor- 
ings and eliminating the mudflats 
problem. A licence for the lock costs 


^dTthe barrage la U* water 
entrance to the marina at the south 
Sfclosedinl969.b’? thedfld - 
sion in the 1970s to make a man- 
quarter created the countr/s 
first marina on old industrial land. 

The scheme finished In the raid- 
iqsQs - although one housing site 

and two leisure sites await ^velo^ 
ment. Grosvenor Waterside, the 
derelopment arm of ABP. has P hms 
for the less used part of the eastem 
commercial docks, using public and 
private money and providing eveiy- 
mng from sheltered housing to 

£200,000 homes. 

Westrec of the US, a Manna man- 
agement company, took Swansea 
marina on as its first in Europe, and 
aims to raise the 66 per cent occu- 
pancy of berths by providing better 
facilities and. probably, a dub for 
owners (most of whom live within 
25 of Swansea). 

In Loudon the Chelsea Harbour 
development by PfitO sits on an old 
coal dock and goods yard. Residents 
value its security and quiet, the 
harbour dub and restaurants, a 
nearby supermarket, and stunning 
views. , ... . __ 

(For the best view of it take a 
helicopter from the Battersea heli- 
port across the river.) A car is nec- 
essary since it is a long walk to the 

London Underground. 

The marina has 55 berths (at £160 
a year per metre) and can be left or 
entered 90 minutes either side of 
high ode. Yachts may repair to the 
Harbour’s five-star Conrad hoteL 

The 310 units in the eight blocks 
are all sold, bar a house or flat or 
two. But about 10 per cent are for 
resale at any time, at prices from 
£325,000 to £L3m. 

Rentals are also available. Har- 
bour Estates is the agent on the 


In Edinburgh the decision to 
move the Scottish Office with 1,600 
staff to the port of Leith has given 
an impetus to plans there. Known 
for its restaurants and wine bar, 
Leith now boasts an hotel converted 
from an 1883 sailors’ home, (a joint 
project by Forth Ports and Ken 
Mculloch of One Devonshire Gar- 
dens hotel in Glasgow). Forth Ports 
has shops, offices and housing in 
train. 

■ Information: Cardiff Bay Devel- 
opment Corporation (0222-585 858); 
Chelsea Barbour Be&ney Pearce 
(071-589 2333). Harbour Estates 
(071-351 2300). Parkways (071-813 
0022) and Strutt & Parker (071-235 
9959) on Leith; Forth Ports (031554 
6473); and Swansea Marina 0792-470 
310). 


COUNTRY PROPERTY 


FARMS 


ST. MF.l.UO . V PARK. ST. MELLIOW CORNWALL 


GET ON COURSE FOR A 
L UXURY LIFESTYLE 


Wate up to the gra) lie at Si Metton ftik, a unique WstCoutry 
deyefatynertt of 4 3nd 5 bedroom krosy hemesef^oyinga presti- 
^ous bcalicin adjfoinfng Ghe famous Jadk NicWaus (teigied 
champiorehip gptf course. 

Every aeahjre comfort is ri^t hse and, with Pynndi a sarn- 
ple30 minute journey away, youl be wefi connected in e«9y way. 

Cafl Dens Hiodey on 0579 50021 (24 hotr servicE) to regisfer >our ntered in 
(he latest phase 

(€W SH0WH0ME NOW OPEN FOR LATEST PHAff 
{11.00am - i30pm DAILY) 




PRICES FROM £250,000 - £325,000 

WUMlt 1 4 PW rf IJWR U l«rA 


Beazer Homes 

•WAIttl WINMNd Ql'ALITV 


Lowther Scott-Harden 

Ch*-t*n.-d SLT'>«yc-rj 


CUMBRIA, HOLES FOOT 






A mperb Grade II* Listed old 19th Century bouse. 

Penrith. Mr*- li macs Keadd.' Cubic: 2S mile, 

Hitt 4 Rcctpuw Rooms Playroom, Kildwi. Cloakroom, CclUn. 4 Principal 
and 1 Secondary Bedrooms. Nanay and 2 Bathrooms. 

4 Bedroom Cottage. Crawled Bam brwafcnaw me. Outbuildings. 
P e M ghtfti l gardens and gnmadi. P ad do ck , Man. la oil apjmndnwtrtj 1$ 
aiB. Serroumilim shouting maj be araibble. 

4 Sr. Andrew's Chdkhvabd. pfnwth, Cpmwra 
TEL 97(8 64541 FAX: 97(8 65578 


LIS I ! is l.EA 


HAMPTON IN ARDEN 

fxmavhexmncxcinnnbinL Lanthapod 
pate and aeMr ni pane bad. 

Wtti mklcrimcidltmfea It. include » 
aiawsfi^alq iWr re u lf c d n Mp^^ 

ft apicubiid mumy ratiiq) 


CHESTNUTS FARM 

Entrance Hall • 3 RccL-pdna Rooms 

* Folly Fined Kildbee 4 Cloakroom 

* Sauna Room ♦ Ground Flora GtnrM 

Bedroom nidi bn Suite Bathroom • UitUty 
AfeirtuBOdfy * Study * Two Firm Hoot 
Bedrooms cadi having En Suite Bathroom* 

* Snooker Roam • Double Cange a 
Eodrocd Courtyard ♦ La adicap cd Cantem 
with Arorcnjjn and Paul * Swimming Pool 

* StMUMnl Range of Ban* and 
Iraptanauing Sheds ai Rear * Paddocks 
Surrounding Ibe Hocse and Gmdensl AnMe 
Land EWiwHiu; to AppunrirfcUcly 08 Agcr. 
OFFER BASED ON £490,000 


l W \RW1CK ROAD KNIHM.1-: tW 0LX TEL: 05(,4 779 



YES. YOU CAN AFFORD THE QUALITY 
OF A BOVIS HOME. 



Stylish five bedroom homes available at Fairfield Grange, 
Braintree and Highwoods, Colchester. The train rime to 
Liverpool Street from Braintree Is one hour five minutes 
and from Colchester one houc These desirable homes offer 
many attractive features including a starting price of 
£149.500 (Braintree) and £153,500 (Colchester). 


Pteose telephone (0376) 552524, / 
(0206) 841203 <24brs). 


yBovis Homes 

wki 

SUBJECT la CONTRACT AND STATUS MUCH CORECT AT TIME Of OOING TO PRESS. 
ASK AI OU* SAlES Off ICE FOR OEtABi. 


BEDFORD 

_CWNTRVrROhEin|YACtN^^^ 

EAST ANGLIAN COUNTRY PROPERTY 

Hie Autumn issue of our own full colour magazine 
containing cottages, farmhouses and country bouses in 
Norfolk and Suffolk is published 
£50.000 - £400,000 

For your FREE copy Fax: 0284 766888 

Bury St Edmunds (0284) 769999 
In association with THE LONDON OFFICE 071 439 3900 


iHIRE.l 

iiiey Edg< 


UK 


CUES 

Alderley Judge 

Wtfnshntr 2 '.’smiles, Manchester Airport 8 ‘h miles. M6 Motorway 12 miles 
Ontstsnding architect designed house of quality with imbue landscaped 
gardens and gnmnds in rievtacd sooth B»ang position with outstanding views. 
Reception Hall, 3 Reception Rooms, Principal Bedroom en- suite 
Dressing Room and Bathroom, Guest Room with eo-suite 
Bathroom. 2 further Bedrooms, Bathroom No. 3, large Studio/ 


Area. Utility Room, Cellar with Wine Store, Garaging, ] 
outdoor Swimming Pool, Paddock/Spinney, in all about 5 acres. 
Enquiries (00 44) (0625) 582161 


HOLIDAY HOME IN CORNWALL 

with income/investment opportunity 
Prestige development of 6 detached luxury cottages in grounds of premier 
Lnoc hotel. Maintenance and income totally managed. Price £89,000. 
Details from: Commonwood Manor Hotel 
East Loot, Cornwall Teh 0503 262929 


HENLEY ON THAMES 

Widest range of Riverside and 
Country Homes within 30 
minutes of Healhrow. 

Full Ex-Pat Management from 
Independent Professionals. 
DAVIS TATE 

Tet 0491 412345 Fax: 9491 410L29 




GEOBGEHAM 

ADOUT2AGRES 

BramtHom 3 m3*sz Satuiton 3 miles: 
BanutapU 9 milex. 
ELEGANT SOUTH FACING 
GENTLEMANS COUNTRY HOUSE, 
TENNIS COURT, GARDENS 



Sooth bong widi hr resetting views. 
Lobby, 2 d ro fcromn*. Reception H*U, 
LouogDr Dialog Orw inBC hei l / B p Mfcfts i 
Knora, PrrpflB i - a Room. Ptrtatr Room, 
Floras Room, Shower Room, 2 Office*, 

5 Bedrooms, 2 Bathroom, CJts QH. Potto. 
2 Ganges, Tcmro Court. mcmiv u getdenv 
AUCTION, UNLESS SOLD, 
FRIDAY 4rrH NOVEMBER. 

Ovklo Pricer X19CMW0 to £220/XK). 
Reply; 80 BoeRpOll Street, Barnstaple 
Rc£ 1354 UHC 

Td: 0271 22833 


GERRARDS CROSS 

(St Acres of garden woodtend 
^ and meadow 

E Double bedrooms. Dress 
^ room. 2 bathrooms. 

14.000 pounds staffing. 

<§t Mins (car) station 
^ Mwyiebone 25 mins. 

Large reception rooms. 

“ Space and scope for more. 
■tJ Double irdBgial gmage. 
u Space tor more, 
fn) Overlooking - complete 
seclusion. 

COLMAN AND GREEN 
T«fc 0494671 991 Fax 0494 672033 


Greenslade 

Hunt 

EAST DEVON 



Chard Office 

TdiSWBSKSl Fin 


DEVONfGORHWALL BORDEH OUdamched 
canaga. 3 Bads. 3 Heosps am. iJSaos 
VkwymU, Z3 am PMtum. 1 am Xmas 
Troes, Qaidant, Winery, OuffltdB*. otflO 
ClteUOQ. Danis, Phott, QMS 78631S 

CO T S W OLDS - 9 bod uttaga oooaps wfti 
open v km a. flgo. Mr Wngham BR CT36J00 
ONO. Tet On 335 9004 

HEATS AIM 49 3.9 MILES, Qrada II 
listed Oaorplan House, 4 reception*. 
(amRwun hUian. & bad*. 3 Mb*, coach 
house "Mi ptaiw*xj conaom lor aimaxa. 
VMM ana (andicaped gsdens. seKrtrtnu 
pod and 8 am paddock. Tet FaiAnen 


i. i. i: \ 


DEVON - EXE VALLEY 
Exeter 6m - M5 8m 



Period house of grear potential 
wife 4 recqgion and 7 be dro oms . 
Coachhouse, stabling and 2 bed 
gale lodge. Gardens ant grounds 
of almost 17 acres. Joint Agents: 
Knight Frank A Rndey, Exeter. 
REGION OF £350,000 
(er may (firfcM 

CALL 0392 426550 
Fax: (0392)51181 


John Davies 

Chartered Surrcyon 

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 

Tat 0953 885000 Fax: 0953 885557 

The Eotnl* Office, dement House, Lt Crawcngham, Thetfard, Ncrfoik HP25 6LY 


COUNTRY RENTALS 



acom 

PROPBTTY MANAGEMENT SERVICSS 
WCVCHJTKUJ (Na. OfNHAM). A tapeib 
5 bedroom conary bon both ami L79Q. 
Tbe mpaiy km « «eabb efbeun. ria a w c 



FI NDERS - SyedaBit proyetj mb ante ia Oxoa 
KEEFERS - R uldea t te l Letifog & M a atgnntn l 
COUNTRY HOUSES TO LET 

170, Coeury Sue Ikwk. 5 bcdmuiu. J rocepdoRS.2 iMiBOaiia V. uc. 
oae. Mr Fbriosdon. booUau ficrftiie - W Namdar ■ e. £1800 



badO icceflSoas A 

-1 jar- ilJOUpcm. 


TeL- (98(5)512168 



Long Sutton: a report tn bedroom 

Wlrt od Tttdcf indmt la > ddlgWbl 
j rural aertot- A nffipnl reite of bedroom, 
•inlag room ud Vitinooa. Storage torn 
avaitabk If icqnbcd. g^SW pan. ■ 

OSUILS: OunLET WDnmr 9252 843795 


BRENTWOOD, ESSEX. Furnish Lux 
•jpert an afloors In paMendoeainQ. (beds 
pma*),m im, dbi rm, oonaarr, priwte 
flerden, use of tarmta caun A outdoor 
heated pool, double oarage, security 
gate Cl .300 pom. Tel: 0377 919775 
Fas 0277 200 000 

CimSHRE - Country cottage, 3 bod. 
h* fcunga, kfctan, bate, groan. Furtrtad. 
Htd hour Ifcrortiawnrtfe 0960 994370 


RENTAL INVESTMENTS 


Gentral surveying 


Piiomaniiit»L9 djBWatV AUpqiiiKA<pNBeDiwnntinMtm*iJceraeiissagornBvaiHLYowwmBO[BB8*»«rwj>r«»iiMs v 

RBscanuLhnrsiMacisUtraFAsEUEoScsnao'towtcv'Itioa 
FOR SALE- WELL LET RESIDENITAL INVESTMENTS 

LONDON 

KXOGRrSBRJDGE STO Oan m UmiuJl . PHmc Rca'd Aica. Rcczn 2 Daobic Bakocxm. u/- ifarW m nua j 

^ajeaBfcndiiadiriflilwMgiiiagilriBanJDwflSpdellBSm^ 

ERMXAND PAHB^ W14 A fiwnsiedlaatian fix mega Be City. AattRsdncegMid sad bnrinr-nvifyif,. it^wuLic^. 

£3ajHBp>.AdduBpdoa£rUVIOOaidoifcs fi tted « mp e tt a ndri « tre a,aMoQnfcottaviflabk by sqremeia yyftiAw. jw*u»icuraaiiraK 

Quxtmmam ' 

LONDON- FAX; §194471 792 8395 QEBiQSlUk-FA&DMM 


T\X VIA !< h I OR I ,WI (LORDS 


Maximise your rental income - 
reduce tax and paperwork. We 
prepare, agree aod file jour Icarnga 
a wni i n l ^ l*»i«lng direct with IgCttU 
and die Island Revenue. Efficient 
service and reasonable fees. 

Contact the specialists: 

Watts Wknder Morton 

Cbanard Ammonias (Esl. 1976) 

Teh 8844 251818 Fkc 9844 261882 


FOR INVESTMEN 

11 Superior Rats 
Stoke-on-Trent area 
Bunt 1990 

2 beds, Bathroom, Lounge, Kitchen. 

Prtxfodng net £36,000 pa. 

AB let Shorthok) Tenancies 


Loodoa S£1 9HL 








FINANCIAL TIMES 


WEEKEND SEPTEMBER 24/SEPTEMBER 25 1994 


V(l 


LONDON PROPERTY 


COUNTRY PROPERTY 


Buying property shouldn’t be a spare-time pursuit. 
It’s our full time business. 


Properly Vision [ S a 
professional buying service 
rur Lllenis With HLUe spare 
time io call ihcir own. 

Our clients, usually expert In 
their own fields, recognise 
uiir expertise in ours, which Is 
finding and negotiating the best 



properties in London, often 
before they reach the Open 
market 

We've been doing this for over 
1 0 years, so instead of trying 
to find the right property in the 
little time you have, appoint the 
professionals to do It for you. 


In business for the buyer. 


6 Addison Avenue. London W1 1 4QR. PROPERTY Tel: 0171 602 8788. fttx: 0171 371 3150 

ViJtUfN 

sothexys 



Miller 


| MOUNT STREET, 
MAYFAIR W1 

NEW TO THE MARKET 

A SELECTION OF 1,2 AND 3 
BED ROOMED FLATS IN A PRIME 
RESIDENTIAL LOCATION. 

Lot- Porterage - all 

FLATS FULLY FURNISHED. 

39 YEAR LEASES 

£195,000 m £450,000 

MAYFAIR OFFICE 
Tel: 071 493 0676 
Fax: 071 491 2920 


Across Cornwall 

A cotore &Ua to propretfs* lor 
sale west of the Tamar especially 
nm e ct Bd for took perttailariy 
"krterasttag" quafitto* by 
MBIer and Company, 
Comwafl's Preniter Estate 

A gnn c y . 

IkmBtBaaauUkeaamatiau 

i Home, Tnou. Tet (0872) 74211 


you In pu rt w w inB |W w ' d»r< N ptopflrty ill 
union. A wp t*OT 0B1 sesna 


DULWICH SE21. 5 baV3 roc. 0eL 1920s 
cotaMaJ stylo hows. Views ot DuTwicfi 
CdapoSdnd A gnuxta. £373.000. IWk 
081 083 550 Or 081 BBS 3160 


JOHN D WOOD CO. 


NEAR LYMINGTON 
Ad immaculate single storey 
property around a courtyard, with 
good leisure facilities. 4 beds. 
3 baths. 4 receps, indoor 
swimming pool, stables, tennis 
court, garages, workshop, garden, 
paddocks, woodland and fishing. 

About 17 acres. 

Prke Guide: £675,000 
LYMINGTON OFFICE 
0590677233 


LAKE DISTRICT 


tfiuf think about it ... A riverside home 15 minutes from the M6, 80 minutes from Manchester 
Internationa] airport, three hours- ish from Loudon E us ton. Ten minutes from Luke Windermere. 
Are you with us so for? 

Just think about it ... & Spot of golf. The golf course is one the spot - cross the bridge over the 
river and the first tee is 20 yards ahead. Turn right and the Dales Way runs clear to Ilkley. Or 
turn left and the village pub at Staveley is a lot nearer ... 

Just think about it ... a swim. Yes, the river would be bracing, but you might stub your lor on 
a trout The indoor pool is 82 degrees, the Jacuzzi is wanner, the sauna and steam room can be 
as hot as you want 

Just think about .~ popping out to a bistro in Bowness - or your auntie in Australia. The vidua 
entry system will watch the way in while you are out, security lighting will sense your return 
before Fido does "Secure by Design" is what it says on the Certificate from Cumbria 
Constabulary. 

And if you’re thinking about ... how you’d really rather have two bedrooms thou three and 
add a solarium, just tell us. We are talking bespoke luxury hen?, not identikit firing. And when 
we've built what you want, J R Taylor's the region's leading department store, can come out a 
furnish it from the chandelier to the last champagne flute. 

So don't just think about it. come and see us. Cowan Head is 15 minutes fruut the MS. 
Junction 36, just off the A591 between Kendal and Windermere. Our office is open every day 
from 10 to 4. Trevor and Dorothy are here at weekends and Colin is here during the week. The 
coffee pot is on. 

Prices at tbe PRIVATE DEVELOPMENT where quality, security and privacy ore priorities start 
at £155,000 for 2/3 bedrooms and 2 bathrooms and go up to over £200,000 for our superb 
penthouse. Come and see us at Cowan Head. We do not think wc will disappoint you. 


Sales Office Tel: 0539 730750 Fax: 0539 730956 
Agents Hackney & Leigh Tel: 0539 729711 


Miss out on this 

OPPORTUNITY AND 
YOU COULD BE IN FOR 
A VERY LONG WAIT 

Tw Bmkon b peaceful, nosnoois 
«*> MGMT M Tti HEART OF TK Cm. As 
A FIAOE TO LHC. IT CAN BE «MTB8 YOU 
WANT IT TO B - A CONCERT HALL A 
TVCATO. A MSTAUHAWT. A GAKXN. A LAKE. 

A SCHOOL A W1PS BAR. HdWB YOU 
LOOK AT IT, IT B ALWAYS AFLAC! TO ROAK 
AP® JUST A WALK AWAY PROM THP On, 

SUUECI TO AVAIAKPIY, PRICES fOR OUR 
AMRneffS START PROM ABOUT £55400 
(POK STUDIOS). 

THE 

i r r 



ThOIE AU ONLY A PEW PEATS AVAILABLE 
SO WHY NOT n ARE AN APROfKTPlEPfT TO 

view tr calling the Babbkan Estate 
team. London EC2, England on 
071-428 4377 (24 hours). 

©BARBICAN 

A gracious place for living in tbe city 


Aylesford 

SRnwQfA Vafeaw. BRNr ArO. a Ktedertwt tNtiBQt 



Eaton Square, swi 

Amadous top floor four bedroom maisonette with a large 
drawing room facing south over the square gardens with 
an unusually long lease and die added benefit of a 
small roof terrace and balcony. 

Leasehold atfroximatb.y 125 years unexpired. 

Ground RB*rfl,750M (Sosktto verification). 

Sotvica CBAROe AmOXMATELY £2J00 fa. 

£2^50400 Subject to Contract 


440 KINGS ROAD, CHELSEA. 
LONDON SW10 0LH 
TELEPHONE: 071 351 2383 
FAX: 071 351 3740 


S!KCS © •• 335 

Chestertons 


BERKELEY SQUARE, MAYFAIR W1 

Impressive 6th floor, 2 bedroom flat with direct views over 
square from 28' reception room, lift Lease approx 40 years. 
Sole Agents. £490.000 

BROOKS MEWS, MAYFAIR W1 

A well maintained small block of six flats, (S Two bedrooms and 
1 one bedroom) with five car garage below. Ideal for company 
use or letting investment Lease 56 years. 

£1.6 million Subject to Contract 

MAYFAIR OFFICE 
TEL: 071-6294513 Fax: 071-493 0131 




LONDON - HAMPSTEAD AREA 


ANDRE LANAUVRE & Co 

(knMe ^’meprioat^diaiivno^ 
2 icpnB ra; gM tk vefl pnimiOKd bibs 


Eaton Square swi 

FOR SALE 
Immaculate executive 
fourth floor apartment with 

boMng cun 1900. Located waldag tfittaox 

LeasetoUfFteeMd tide. Owner tale. Price 
C38JOOQ. WiH ako eourida mtol £450 per. 
EJegully fo ranked, baby grot piano, 
airpucc. anncBBKij * yuosmc. 

■nu. KrtjoMu.azM39isn 

r»x 02343*019 

brt'L 44 234 3915S1 Fax44U4»OW 


bathrooms, drawing room 
and dining hall, lift and 
porter. 

Lease 19 years. 

PRICE ON APPLICATION 




General Accident 
Property Services 

SOUTHCORNWAJLL 
Flashing, nr Falmouth 



Impressive south facing family residence standing io beautiful established 
grounds of about 1 acre and with views of the estuary hum all principal rooms. 
Water frontage. 

4 r e c epti on rooms, 4 bedrooms, housekeeper's attic suite with living room. 

2 bedrooms and bathroom. Garaging for 3 cats. 

Offers in tbe region of £365400. Freehold 
Contact General Accident Property Services 
Tel: (0326) 316362 Fax: (0326) 21 1413 


Lowther Scott-Harden 

Cnanercri Surveyor: 


WEST HALL, MIDDLETON TYAS, RICHMOND. 
NORTH YORKSHIRE 



A superb Listed Grade II Village House with Cottage. 

AliMliLi nnka DarhRguiR 7 site Imt. -Hi oJb 

Nrwcadk T ymc JO mib Tosalr Akpnfl 1 1 mito Minimi., Pull AajMi Ml mAa 

4 Ruxpuun Rooms: Study: Kitchen: Utility: CTuaknami: 

S Bedrooms; 4 Bathrooms. 5 Stable* 2Gurapr< 

Offers m Region ot ttStUW! 

FREEHOLD FOR SALE BY PRIVATE TREATY WITH VACANT POSSESSION 
Monkeno Estate Office, Croft. Darlington, Co. Dirham DL2 2SJ 
TEL: (8325) 720476/729614 FAX: (8325) 721249 


MULLUCKS 

WELLS & ASSOCIATES 


EAST HERTFORDSHIRE 

Hertford 3 miles - London 20 miles - M25 Motorway 7 miles 
AN ELEVATED COUNTRY ESTATE WITH VICTORIAN 
COUNTRY HOUSE AND APPROX. 44 ACRES 
4 recs, kitchen/breakfast. 5 beds, 4 baths, sludio/gzraging. tennis court. 
Stables A loose boxes, bar, paddocks, formal gardens 
OtXXSBJM 

COUNTRY HOMES MAGAZINE 

Autumn Edition available shortly. 

For your copy and for timber details on the above property, please contact 

10 Waler Lane, Bishops Stoftford, Hens CM2? 2JZ - 0279 755400 or 
t, 43 Conduit 


The London Office, 43 1 


<it Street, London W1R 9FB - 071 439 3900 



NORTH CORNWALL 

2 OUTSTANDING WATERSIDE HOMES 

indBK wrinfyfciilri how Imp utin g hmac meapvwc ppcctaoiUi and uupw 
_ «ea nn NwmHQ 6 m to BuaGpt a m ma i«»% ora 

boriraAto nntir cnartfac monli miles, of cmaCot Crtuurfot oils. PnvaK men la. 
Sm trace, Inter baO. KcMidy. badiDitaoKk. iczxpftnlL Lummy ktttaMU 1 

■d vbIih. cites waUf ten . mm man fed. aamui. mfeK anm |ZT x 1710). 
. bed 2, 3rd hoJ prcndy + 2 Keeps, doiVWt s ted. M»WC. -ctea>. <q< 


takxnjJ 


aaajmkn- ’ ‘ UTC A inmAltadu] (sieve. -tana hruc. 

enwrara* mmn amiHum! 




LltmllUatP. HMlIITCILHcUa 


SOUTH CORNWALL - Unkgie. energy 
rtBctora detached how. eflering peace and 
sectoton h 11 aoea. Spartan * v aouth- 
tndm vIm of creek and eouwyukfe 5 beds: 
2 baths: tntofgat consolatory atti Jacuzzi; 
■tatUrn and outbuMJnea. £185,000. For 
dUEfe Tet 0328 40430 or Fk 0326 409BB 




FARLEY 

A Co 


CLAREVDLLE GROVE, SW7 

GiaiRGIAN FAMILY IK WITH REaBLB 

.tatiMM A sect. West facing gun. CH. 
2 Rtm-b. Kn. Mastw Bei> b Shwr, 
DwLWNf. Rm & Tce, 2/3 Further 
Beds. Uatk Clkam, Ball*. ADomotUL 
alxomm - SmtNO Rm. Bedrm, 
Siiwr Rm. FHU). £650000. 

ROLAND WAY.SW7 
Ivy n ,u> town nst! w award winnwg 
Ml I H FLRING WILL FROrORnONHD 

AftiwM. CH. 2 RtcCTs. Krr. 3 Beds, 2 
Baths ( I dsl Uun. Parking Space. 
Finjj.LW5.00a 


BOLTON GARDENS 

Well prssqued, attrac 2nd eu 

HAT O/LOOKWO ODW. CH, 
Access Gob. 2 Well PuramoNED 
Receps, 1Qt, 3 Bhk, 

2 Baths. 91 yas. 

£435.000. 

SOUTH KENSINGTON, SW7 

Well modernised ebb in cobbled 

MEWS, READY K» DMBJ1A3E 

occupation. CH. Rbcep, Krr, 

2 Beds wmi bs Batbs, Cucrm, 
RfTce. 

FHLD.£3UU»a 


Tel: 071 589 1244 Fax; 071 589 2817 



YEOMANS ROW, SW3 

A UNKXIE DOUBLE WONTED 

house, otncn.Y situated in 
central knkshtsbwdge. 

C5 Bens. 5 Baths (4 Ewurra). 

3 large Sn'Mcis g-a: Drawing 
Rm & Dining Rm, Study, 
ihrary. Ktti'B'Fast Rm. 2 Cues. 
iilivy. 2nd Kjt, Roof TBuiace. J 
53 YLAR LEASES 
Prick: £750,000 
CHELSEA OFFICE 
Tel: 071 5S4 7020 
Fax: 071 225 1237 


CLABON MEWS, SWI 

A SUBSTANTIAL MEWS HOUSE 

near Sloane Square on 
THREE FLOORS ONLY, WITH 
2 ROOF TERRACES, A PATIO 
& garage. 3 Beds, 2 Baths, 
Shower Rm, Study/Bed 4, 

2 Receps, Krr. 

65 YEAR LEASES 

Price: £750,000 
CHELSEA OFFICE 
Tel: 071 584 7020 
Fax: 071 225 1237 ^ 




jghgate 

:ds £250 pw 

arley St 
ds £700 pw 
gent Pk 

louse £250,000 

igate NWS 

e 2 beds £80.000 
i>«r personal 
men is contact 


BARBARA GIBSON 
Tel 0S1 3-18 3064 fitx 051 ?4S 30. ■ 


SflSXIXS 

irreNBTio.vaL 

N S WOOD, NW8 

urtil fln ur flat m drill popular 
iiMu 8L ri*™ w St 

od lhhk*St»»wd Seawa- 
ll ./iiuwntim J btxlrwa, 

1 hjAn.ont i^Minaa*. 

■Id K1 teats unexptred 
S,i|r A^mt 

r.l‘^.iK'0 

(714314844 


LONDON RENTALS 


IANDRE LANAUVRE &Co| 


Mfeofiexawide 
selection of superior 
furnished and 
unfurnished 
accommodation in 
Kjqgidsbridge, Chelsea, 
Kensington, BeJgravia 
and other central 
London tocatkms fiar 
discerning corporate 
clients. 

From £350 to 
£3000 per week. 


TEL: 071 259 5233 
FAX: 071 235 2342 


7m MARI ER 
LiJ & MARI ER 


The Knightsbridge Agent 

We ecR veil eatabtisbed firm 
of Oaialo Agents in 

tbe letting of fiats end hot»H to 
predominantly 
en i pniswi wm iB 

We urgently require 

qoaUty one to five bedroom 
properties. 

6 Stone Street 
London 8W1X9LF 



SAVTLLS 


-RENTALS 

FOR LUXURY RENTALS 
ACROSS LONDON 

• Belgravia • Kensington • 

■ Mayfair • Knightsbridge • Chelsea ■ 
• Notting Hill Gate • Holland Park • 
From £300 to £10,000 per week 
VICKY PALAU: 071-730 0822 

■ Hampstead • Little Venice • 

• St John's Wood • Regent's Park • 

• Knightsbridge • Chelsea ■ 

From £300 to over £2,000 per week 

SUSAN GILBERT : 071-431 4844 

• St Katharine's Dock • Wapping • 

• Lime house • Isle of Dogs • 

■ Shad Thames • SB1 • 

From £180 to £1,000 per week 

JOHANNA PROUDLOVE: 071-488 9586 


EASTBOURNE 

BERKELEY COURT 
Wilmington Square 
Sumptuous apartments close 
to Devonshire Park. 
Some with superb sea views 
£95,000 - £175,000 

SHOW HOKE OPEN THURS-MON 
1 1AM - 5PH 0323 649771 


HOLIDAY HOMES on an Uwd per*sUa 
mltv) a nabxe conamancy area Luuy 2 
Deaton homes h Ca*ra*vAhvio»» o! #» 
bay anfl ttw Oeau«M amovin g cmaryffloa. 
Price from only £54£95. A* abort WMng 
rtnoduWea. TeL 0326 25000a 

RESIDENTIAL 

INVESTMENT 

BRANHAM GARDENS. LONDON SWG. 
Large alyl ish i bed flat with vacant 
pmsasskm or ol Investment corporate 
tenant yield over 9% pa attar costa price 
Cl 1 5.000 Tet 0642 584 91 5 far daWb 


Northaw Village 
nr Potters Bar, Herts. 
Detached character 
residence. 6 17 beds, 

3 recs - in 1.75 acres. 
Plus cottage. Freehold. 

AUCTION 

lOTH NOVEMBER 1994 

Maunder Taylor 
081 446 0011 


ISLE OF MAN 


ISLE OF HAN - PROSEARCH Tile 
property specialists tor buying or 
renting on the island. 
Tel/Fax (08241 862186 


HOPE COVE, Salcombe - specially 
converted none bams, luoatousty tuiUied 
nasMe in hfc on sedudsd swI*yj tam, a 
meottav away born safe, sandy bearties - 
cn Gtta ndoor port, sauna, gynv tonnto etc. 
Wb olfer fee perfect comfalnrtlDn of propony 
and location which, through group 
ownership gives you the opportunity to 
enjoy a very special aid home or rental 
income tr Cl 7.950. Hope Barton; REF FT, 
Hope Cove. Ktnpsbridge, S Devon. TQ7 
1BR. Tet 0548 581393. 

CLEVEDON. BRISTOL. MagnScert nealy 
converted 2 bed period apartments, see 
views. IHt CIH. Partung. From £50350. 
T*L 0225 331431 Fate 0225 311983 



ISLE OF MAN 

Lmdtmlhr Manchester 40 mins by air 
QUALITY LIFESTYLE 
Impressive Gentlemen's Res i de n ce 
3M recaps. Master stiiie + 7 beds i 3 baths. 
Staff lodge. 25 aero formal gardens. 
PRICE GUIDE £525.1 HU 

0HRYSTALS 

Part Erin Oflkr 

Tel: 0624 833903 Fax; 8624 835SM 


RETIREMENT 


phi; asus 


I 1 I 1 I 1 T 1 I 1 I 1 I 1 I ' I 1 I 1 1 1 I 1 I 1 I 1 I 1 I 1 I 1 I 1 l_ 

Made to Measure up 
to Your Expectations ■ 


LANDLORDS 

We offer a fully comprehensive letting and management 
service on properties in the Central London Area. 

We currently have multiple blue chip applicants looking 
for properties in the £20Q-£2,000 pw range. We would be 
pleased to offer a free valuation and discuss how to best 
fulfil your letting needs. 

071 937 9777 

Members ef tbe National AsMciatle* of Estate Agents 


,uu ANGERMAN GODDARD LOYD 

r ' l f 1 


SOUTH KENSINGTON SW7 

Selection of 2/3/45 Bedroom mansion apartment in 
POrtaedbkxifml^^trfScHithKeiBir^too. 
Ava2abfefmri/uiifiinELfiixn£325perwed£. 
Contact show flat for inanedbie viewing. 


FRANK HARRIS & COMPANY 


♦ LETTING & MANAGEMENT SERVICE ♦ 

• Professional advice for overseas investors Buying To Let 

• Rental Guarantee Insurance 

• Contract Famishing Service 

■ Monthly inspections of your home 

♦♦ PROPERTIES TO LET ♦♦ 

Studio Flat ideal as a pied a lerre £135.00 pw 

One bedroom garden flat £180.00 pw 

2 bedroom flat in Bloomsbury £270.00 pw 

3 bedroom flat with garden £350.00 pw 

4 bedroom flat in Barbican £275.00 pw 

Recent Lettings have been to employees from Saatchi & 
Saatchi’s, Nomura Bank, Fuji Bank, Tullett & Tokyo, 
Goldman Sachs, BBC, 


Blonmsburv Office 071 387 11077 Citi Office 071 000 7000 


Y ou'll find a Pcposus home fits you perfectly 
because vw tailor our developments to suit 
your Independent retirement needs. 

Our attention to style and detail Is reflected in the 
facilities’ found on ,i Pegasus development, such 
as a restaurant, guest suite, communal lounge and 
conservatory, swimming pool, and sauna. 

For your additional comfort and peace of mind, 
Pegasus provide an on-site administrator and 
support services where required. 

Early reservists on uur latest developments may 
even be Involved in not lust choosing internal 
fixtures and filling, hut the physical layout loo. 

All this aitcniion to detail makes Pcgjsus a cui 
above ihe resL 

For Information on developments at Bournemouth. 
Rracktey, Broadway. Kcynfham. Mabbcrley 
/Nr. KiiutsfonJi. Oxford. Paignton. Rochdale and 
TUchunt. 

Tel: FREEFONE 0800 526386 or 
FREEPOST BF228, OIncy. Bucks 
MK46 4DX 


PEGASUS HOMES FOR 



Nell 


’ Over 200 individually 
decorated apartments 

■ Five day maid service GWYNN 

* 24 hour reception yj/v» TOT< 

■ Satellite Television llU LTMi 

» Weekly rates from £250 


Leisure Club with 
swimming pool 
• Studios or One 
Bedroom Fla is 
• Minimum Rental 
Period 22 days 
* Direct-dial telephone 
• Fax/Tel/Pfaotocopying 

Contact : Tbe Accommodation Office 
Tel: (071) 584 8317 Fax:(071)823 7133 
Sloane Avence, London SW3 3 AX 


071 o89 6336 Fax: 071 256 5753 


MARBL.&FLOORED spocfeM Mgrtvfn 
flBL 3 bod. 2 opening or*) pawd garton 
wtnfcunth Cl ^50 pw Tot 071 2358216 


AARON « LEWIS Property Sorvtca* 
Alwaya ranting tin fines* homos In 
Koartngtan & CtieiaM. ObOd qusUty 
pruaeite ah^KKMtotf. 071 344 9911 


KENSINGTON / CENTRAL LONDON 
Largest selection of quality properties, £180-£1500pw. 
From 3 wks to 3 yrs. 

CHARD ASSOCIATES 

071 792 079Z ll)-7pm 


LONDON RENTALS 


THE PROPERTY 
MANAGEMENT 
GROUP 

ARLA MEMBER 
SPECIALISTS IN 
RESIDENTLAI. I. CITING 

& MANAGEMENT IN 
RICHMOND 

vA TWICKENHAM AREA 
TEL: 0S1 744-2911 
FAX: 0S1 891 6422 


CHANNEL ISLANDS 


THE BUTLERS 
WHARF BUILDING 

By Tower Bridge, SE1 
Luxury studio, 2 and 3 bed 
apartment River view, ff kit, 
gch, undaground parking. 

From £240 per week 
TEL: 071 403 6604 
FAX: 071 403 6944 


GUERNSEY'S 
LARGEST 
INDEPENDENT 
ESTATE AGENT 


SPZCLILISIXG /A' OPEN 
MmUFLCT PJIOJ'EKTi' 
i.iIM.V.UlU: TO XOX-KBSWf.XrS. 


If you are cmiEiderinc ro-loeation 
we offer a personal approach and 
FREE Houadinder Factfila and 
Colour Property brochure 
on request 

4 SOUT H ESP LANAD E 
ST. PETEK PORTIYGCEENSEY 
TEL: 0481 714445 
FAX: 0481 713811 


GUERNSEY 


Coo tad us now. Discover ibe 
unique value of Guernsey life and 
gcoaoo lav heuefits for'resitfcnis. 
Ask fix our free lull colour 
propeny portfolio. 


LOVELLS 


Gacntcpi tapnt a ad mert ctftetivt 
mdcpcntkw esum; jgtiK. P.O. Bo» Sfl. 

1 1 Smith Street. Sl Peter Port, Guernsey. 
TEL: MSI TDOi FAX: 0481 71il«4 


COUNTRY RENTALS 


GUERNSEY 40 acre stt» ter 56,000 sq It 
Modal Tourist/Ferm Contra. Elm olo 
Budnassw. hotels, ratal, Ucory homos. 
Toaovin Partnership Tel: (0481) 52505. 
Far 51 103. 


WlL‘XStfI‘%E 

Bclwcto Salisbury aod Sbaftrsbmy. 
Beautiful stow Iubk in retime valley. 

Surmraded by acres of untouched 
dowobnd n beds, 3 batbs, ho re krichen 
with tog fire and wood floor. Nothing in 
sight ore sound save owls and fallow 
deer. Unfurnished. fl.bOOpcm. 

Tel: 0747 ICWrt am, pm 
or Fax: Q?47 6290K PARXES. 


TO LET Ouvon twwt Taunton & Exeter 
duUl lI daadtod hoaa ttrinainod gadun 
lom October. ^ Tet 0884 3SS83 - Short or Iona la 


\ 


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.! 



FINANCIAL. TIMES WEEKEND 


SEPTEMBER 24/SEPTEMBER 25 1994 


LONDON PROPERTY 


Hamiltons 


.. I'.IHS-U 













ALBION STREET, W2 

A great opportunity to acquire what is undoubtedly one of the 
finest homes in the Hyde Park estate. The property has 
undergone complete refurbishment, and the open spaces of 
Hyde Park are only a few minutes away. 

Entrance ball, sitting room, drawing room, dining roam, fully 
fitted kitchen, study, S bedrooms, ail with en suite bathrooms, 
2 guest cloakrooms, staff room with en suite bathroom, 
conservatory, terrace, patio, sophisticated electronic 
surveillance, specialist paint finishings, 3 zone central heating, 
central vacuuming system, TV and satellite TV. 
FREEHOLD 

Approx 3,500 sq ft (325. 16 sq m approx) 

£949,000 


LYALJL MEWS, BELGRAVIA SW1 

An outstanding and original mews house which has been 
recently refurbished and is presented in excellent condition 
throughout The principal accommodation is on two floors, 
with a stunning double aspect audio reception room. 
The bouse is situated in a quiet cobbled mews and provides 
excellent living and entertaining space. 


Studio reception room, dining room, fully fitted kitchen, 
indoal bedroom with ensuite Bathroom, 2 further bedrooa 


principal bedroom with ensuite bathroom, 2 further bedrooms, 
2 further bathrooms, guest WC, garage. 
LEASEHOLD APPROX 42 YRS REMAINING 
2,425 sq ft (225.2 sq m) 

£995,000 


CLEVELAND SQUARE, W2 

I Inspired by Scbotondorff s Swaim in Love, interior designed by 
I Brian Juhos. A first floor lateral conversion that evokes the 

grandeur of ages pash 

Drawing room, dining room, principal bedroom with en suite 
bathroom. J further bedroom, tritrfrff i/h neaitfaro room, large 
wonderful views aver 2 acre award winning communal gardens to 
which residents have access. 

FREEHOLD 

Approx 1,800 sq ft (167.22 sq m) 

£595,000 

ENTIRE CONTENT ALSO AVAILABLE 
BY SEPARATE NEGOTIATION 


UPPER P mLLIM ORE GARDENS, W8 

A majnw fi n e irt arm detached family house in one of London's most 
pExri gyv w locatwps Extending over 6291.93 sq ft (58454 sqm). 
Tte boose has recently undergone extensive re&nbishment to a very 
highstnodard to provide gracious and flexible accommodation with 
die added advantage of 2 passenger lift, laige passenger lift. 
Entrance hall, drawing room, dining roam, study, farnfly room, 
principal bedroom suite (bedroom, ensuite bathroom, sitting 
tocHu/study, dressing room), 2 further bathrooms, 1 further dressing 
room, 2 guest WCs. khchen/breakfus: room, kitchenette, cellar, 
utility r oom, staff qu arters, ^hedmnms, 1 bathroom, hilly air 




LEASEHOLD 72 YEARS APPROX 
UPON APPLICATION 


HAMILTONS RESIDENTIAL 8 Portland Road, Holland Park, London Wll 4LA Tel: 071 792 4330 Fax: 071 792 1955 




CHESTERFIELD HILL 
MAYFAIR W1 



LONDON RENTALS 



■ 

r 1 


A substantial period property situated in the heart of Mayfair, 
beautifully presented with well planned accommodation throughout. 

♦ ENTRANCE HALL 

♦ DRAWINGROOM 

♦ DININGROOM 

♦ STUDY 

♦ FAMILY ROOM 

♦ MASTER BEDROOM SUITE 

♦ 2 FURTHER BEDROOMS 

♦ BATHROOM & SHOWER ROOM 

♦ KITCHEN/ BREAKFAST ROOM 

♦ SELF CONIAINHJSTAFF FLAT 

Leasehold: 56 Years 
Price: £1.95 Million 


SOLE AGENTS 
35-37 Davies Street 
May&tr 

LoadonWlYlFN 
Tel: 071 4993434 
Fax: 071 491 8171 




IF I LET MY HOME, 
WILL SOME OF 
MY BEST FRIENDS 
GO TO PIECES ? 


CLUTTONS 


The Professional approach to 
Letting and Managing property 
Lhat gives confidence in 
London, across England and in 
Hong Kong. 


Hamptons 






residential 
lettings & 
management 

in Putney 
Coombe.Wimbledon 

081-947 7351 

17 Church Road. VWnbtalon SW19 5DQ 




ANCHOR brewhouse 

SHAD THAMES SE1 


A3 Bedroom Anutmcnl 

ibe River bawcea Baden Wharf tuu 


ibe River between Baden Wharf and 
Tower Bridge. Two Doable Dali o o an . 
Single Bedroom, 2 Bathrooms ( 1 with 
Jacuzzi), quality Kitchen, 2 Scone 
Parking Spaces, 

24 Boor Porterage. 


*450 pa- week 


LLOYDS WHARF 
MILL STREET SE1 

Apartment dose to TOwer Bridge in 
Wirebome Cocretsioo with 2 Double 
Bedrooms. Large Reception with 
Wooden Row opening on to Private 
Weal Facing Tcrroce. Retaining many 
original Warehouse features. 

£350 per week 


COUNTRY 

RENTALS 


Take advantage of our colours to 
promote or find your property. 
SW1, SW3, SW7 
Contacts in 16 countries worldwide. 

■400 offices across the UK. 
Lenings, Management. Sales, Survey. 


Head Office: 6 Arlington Street, St. James. London SWLA 1RB 

Tel: 071-493 8222 


MALCOLM WALTON 
INTERNATIONAL 


LAWRENCE WHARF, SE16 

We have also recently been instructed on tins bonny development of fully furnished . 

A pai t umm overlooking the River in Rotheririthe from £160 per week. 

We arc always keen to take on new properties for ibe ever increasing demand from 

oar mainly CSry based applicants. 

For father droritooo letting or renting, pteme contact aur profenjonal team ted 
by Merfef McCarthy: 3 Gafasfbrd Street, Tower Bridge, London SKI 2NE. 
Tel: 071 407 3669 Fas 07 1 407 4479 


residential 
lettings & 
management 

in Surrey 

Esher, Cobham, Weybridge 

0932 859355 

77 Queans Bead, Wcyftrtdge KH3 9UQ 


Island 


co 1 d 


V 1 1 I . 


**rti 


Bloomsbury, WC1 
T» o bed fl at on 2nd & 3td fluois 
nr Bmi-sh Museum. 

Lease 992 yeare. XI75.0U0. 

Grays Inn Road, WC1 

TVu bed QaL 3rd Dourcunverrian. 

Reduced fur quick sale. 

Le*c 1 17 years. JE1U2A10. 

Tavistock Place, WCI 

Choice of one & two bed Hats in 
mansion block. Lease 82 veais. 
£NUH». £914X10.' 
Abercorn Place, NWS 
Small 4lh floor one bed flat in pt 
Muck requiring some updating. 
Lease SrycniN. Price OU.OQO. 
Barbican & Cm' 

Lisi of flats available [or sale or tent 
Please telephone. 

26 Museum Street. London, 
wciAurr 

Tel: 071 6362736 FVC 0714362649 


Buying for Investment? 

Wc identify the best opportunities 
lor you throughout Central London 
and provide a complete package 
service. Aequisil i ini, finance , 
Furnishing. Letting and 
Management. Wc also cover the 
Chy of Cambridge which has a very 
strong bong maria which provides 
cccdknt investment opportunities, 
tf you already own an investment 
property hr Central London you may 
wcQ find our Property Management 
Service of considerable value. 
For mu. details kw our services 
TEL ++4(0171) 493 4291 
ok Fax +44 (0171) 493 4319 


INTERNATIONAL PROPERTY 


QL, 


Hamilton 
Osborne King 


Costelloe, Co. Galway For Sale by Private Treaty 

Enchanting country residence eminently suitable for 


You won’t believe you’re 
so dose to the City. 




■ • • i?: r-j. -vf- * 
•‘.-K i- 

•■■■ V ' 'V tS-- 

■ J Ti 


For (he widest selection of 
properties in Bloomsbury, 
Holbom, Barbican 
and The City of London. 

CONTACT: 
Bloomsbury Office 
0713870077 
Barbican/City Ofhce 
071 600 7000 



Wouldn’t it be con- 
venient to have a luxurious 
home adjacent to the city 
so that travelling to and 
from your office becomes 
no problem? 

Yet also have an oasis of 
tranquillity to relax in after 
a tough day. 

You’ll find this and 
more at Hermitage Court. 


Superb 1**25 residence completely refurbished lo very 
high standard in a magical local in the heart of Cbnitemare. 

Beau (Tori vooded grounds. Very extensive accommodation. 

The house is furoisbed to a very high standard. 

• -5 mites west ot Ualway Coy • Seen only by appointment • 
'/rcjti;t .mer mitfAt [trrjsirr<{ fa toAe fixity in snitaUr mnpony. 


fill 


WEST INDIES 


BAHAMIAN ISLAND 


When you reach ihe top 

HERE’S THE VIEW 

On the Island of Monsskat, West Indes 

OveriooWng trie golf course. hie crystal blue Catobecn 




Spaced around 
a quiet landscaped 
courtyard, a selec- 
tion of 2 and 3 bed- 
room apartments 
are available for sale. 
Outstanding quality 
apartments close to 
the City - and an 
investment that looks 
very good indeed. 

There are video 
entry phones, port- 
erage and secure 
underground parking, and 
at prices from £193*000, 
you can see why they’re 
already proving so popular; 
with now over 70% sold. 

Why not come along 



l-l.’-SVY- 



raents off Wapping High 
Street, £1 or call 0959 
541016 (24 hours) or fax 
0959 .571179 for details. 


I and see the show apart- 

UJUKT IO CONFUCT AND SUFUS. mas OOOKT Ar I1M OF COMG ro FSHS. ASC AT OUR bUES OFFICE FCW DEMU. 


(Bovis Homes 


and the reentry blantfc 


Investment ■ Residential - Private or Development 
Min Ixwn Cay him p ppomniq tn iibu i 30 me bbad m Uk « wMi &n beala and 
innrt fuihnu SiiiUlrd 3 nJOIKii unto (nw Grcji Ataoa uni serviced by pi hate Inecb. 

InuiuiMtal flight* nr madaMr float runi AKwi The hind h med tor dcvchfocu end i. 
cmcml tn the Ipscnmvunl hnum cnapantrs ad of 1*8*. ntaeh pc mlu lDc cieaUon and 
nmv|»mlAip wcmiuiil tnainCT i»IBiihc pnrpwe of i n a MMnm m ntfahoee corpo rate bue. 

£5,0 Million 
Ceauattmda fifes 
T(VF)u:t4442:a5l2S 


COUNTRY RENTALS 


mWm 


U.S.A. 


PALM BEACH, FLORIDA 



The island uf Palm Beach is wvxid- 
im»ued tbr its beaut)-, sophisocatkjo. 
privacy, security and ciegancr. The 
fabulous Medi t errane a n occanftonl 
i estate^, oa three aens of land, offcih you 
a superb escape Cmcn your busy world. 


Wl&IC<UB«M(huTBM1BnKU5l>Uni 


■} KCCUAKD ALLISON i AbtiOLTATES INC. Tel: .mT C7,a r,0!;a 
•220 Sttnri.se. Pain Bruch, Florida. USA :iU4SU Far; .utT hj.T, 3 112 




KENSINGTON WEST, W14 

Investment opportunities in this high security, modern 

developmeot, with excellent transport, 3 sports complex. 

private parking and 24 hr porterage. A state of the art 
3 bed apt, luxuriously furnished with a large south facing 


„ „ terrace, piped music and water softener, floor plans 

f, I] available. Ready to walk-in. £800.000 Leasehold. 

f r. . • • 


Further range from £300,000 - £600,000, 

CORPORATE LETTING AVAILABLE. 


THE PROFESSIONALS IN 
RESIDENTIAL LETTINGS AND MANAGEMENT 


VISTA de REDONDA 

4 beefrooms and 4 Baths - Very Open & Spacious 
Fully Fumbhed 
Excellent Rental History 
Unmatched to a Private Home 
Asking USS595XI00 


CONTACT WENDY KIENER 
TEL: 071 602 6020 FAX: 071 602 9522 


RENT GUARANTEE SCHEME 

FREE BROCHURE ON REQUEST 


FOR MORE 


RHBOMAL LETTINGS OFFICES IN LONDON (CHELSEA) 
AND SOUTHERN ENGLAND: 


WEST INDIES REAL ESTATE, LTD. 

P.O. Box 355 Tel: 809*491 -8066 

Plymouth. Monsefrat Fac 609-491-8668 


RENTALS ADVERTISING 

Please See 

-» -► PAGE vn «- «- 


ALTON 

BRIGHTON 

COBHAM 

EASTBOURNE 

FAREHAM 


0420 82666 
0273608746 
0932866946 
0323 430042 
0329 234441 


FAHNHAM 

GUILDFORD 

KINGSTON 

REK3ATE 

SOUTHAMPTON 


LONDON SW1 -071 730 8682 


0252717900 

0483300338 

0815464809 

0737221411 

0703446899 













FINANCIAL times WEEKEND SEPTEMBER 24/SEPTEM8ER 25 1994 


HOLIDAY HOMES 







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Chalets for those who like Alps without snow 

Audrey Powell explores resorts in France and Switzerland finds that properties by the slopes often sell to people who do not ski 






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I t is common knowledge 
that a large number of 
people who buy homes 
on golf courses do not 
play golf. It also appears 
that many people who buy 
homes in Swiss ski resorts 
never ski. 

■*Your average client for an 
upper price property is 50 or 
over. He has made his fortune 
and comes to the mo untains to 
relax. He likes the peace and 
quiet, the civilised way be Is 
treated. He likes to look at the 
view and go walking. To him 
skiing is totally irrelevant.'’ 
said a developer in Switzer- 
land. 

“He (and it usually is a he) 
does not want a lot of bed- 
rooms. He has guests but puts 
them up in the local hotel. 
These are the kind of people 
who are able to pay £200,000 
upwards for a ski-resort home. 
Not the yuppies. They go on 
package holidays or rent some- 
body else’s chalet." 

His remarks are a reaction to 
a report by Min tel Leisure 
intelligence which argues that 
the British Education Reform 
Act, which discouraged ski 
trips in school time, will, in the 
long term, reduce the appetite 
for skiing among British 
adults. The number of ndiriran 
going on school skiing holidays 
has fallen from 200,000 In 1990 
to 60,000 in 1991/1992. 

Already, Min tel says, the 
mass market for skiing holi- 
days has dropped sharply and 
only real enthusiasts have con- 
tinued to ski. 

But if the developer is cor- 
rect these trends may not 
affect the already slender Brit- 
ish demand for ski-resort prop- 
erty. 

A London agency which spe- 
cialises in selling Swiss resort 
property. David de Lara & 
Partners, also notes a lack of 
commitment to the sport 
among buyers. The people who 
purchased his chalets or apart- 
ments were interested in sum- 
mer activities. 

"Skiing is never the primaiy 
motivation," said de Lara. 

The market was "not bad” at 
present. There were British 
buyers and other buyers. But 
new properties were getting 
more expensive in Switzerland. 
So something an intending 
purchaser might like to note is 
that not only are the rules 


■ T . ' -:?• -> • . 






y$JP 










Changing: 


Chalet GrizzD in M&fbcri (in stunner, left, and winter, right) is on sale through Alpine Apart m ents Agency for £109m 


about selling to foreigners dif- 
ferent in the various cantons, 
but the related costs vary as 
welL 

Acquisition fees, based on 
purchase price, including 
notary fees, federal and can- 
tonal charges for making the 
search, purchase tax, drawing 
up deed and land registry fees 
in Champery (Valais) come to 
2.2 per cent In Villars (Vaud) 
they are 5.5 per cent. Bank 
interest rates on mortgages in 
Valais are 5J per cent for both 
Swiss and foreigners. In Vaud 
they are 6-25 per cent for Swiss 
- and 7.25 per cent for foreign- 
ers. 

Annual taxes on a property, 
including tax (communal, can- 
tonal, federal) in Valais come 
to 1.2 per cent For a similar 
property in Vaud they are 12 
percent 

The agency is offering prop- 
erty in Valais . At Champery, a 
traditional Alpine village of 
timber chalets on the Swiss- 
French border, it bas apart- 
ments in two new chalets. In 
one, units are ready for occu- 
pation. A one-bedroom apart- 
ment costs from £134.000 
(SFr290,000). 

There are two and three- 



' 0 
Jut 


,w 

A f i; V-* >' r< ’ 






Sun and snow: Chdet les Portss du Sotea in Champ«iy in VaUs 


Handy for the chair Eft Chatot L'Auborpine i 


room versions and a penthouse 
at £300,000. There are also cha- 
lets on the hillside, looking 
down on the village. Price 
£315^)00 for four bedrooms. 

In Vaud, Lennards Proper- 
ties International, a British- 
owned Swiss company, has 
apartments available to non- 
resident foreign buyers in a 
new 15-acre project at Villars. 
This is Domaine de lTSysee, 
where the first apartment-let. 


L'Astragale, is being built. 
There will be 14 units in the 
five-floor building and some 
should be ready by December. 
A two-bedroom appartment is 
£216.000; a four-bedroom pent- 
house, £380,000. Five-apartment 
chalets will be built on the rest 
of the site, spread over several 
years. 

Villars is a pleasant, long-es- 
tablished village and its cen- 
tral road is soon to be made 


traffic-free. It is one of the few 
Swiss resorts which over the 
years has allowed foreigners. 

In France Zigi Davenport of 
Alpine Apartments Agency, 
notes how recent building and 
road work, and new lifts, have 
improved its access and gen- 
eral appearance in MeribeL, in 
Les Trois Vallees, where the 
agency has property. 

There had been a lot of resi- 
dential building For the Winter 


Olympics and at very high 
prices. 

“Incredibly most of it has 
sold and more is taking place," 
says Davenport. 

Last winter's excellent snow- 
falls resulted in some of the 
best skiing ever in the area 
and demand had returned for 
prestige property. 

Chalet l’Auberpine is a new 
stone and wood-clad apartment 
block set off the road, with 


views across the valley of beL 
For those who do intend to ski, 
it has the advantage of being 
beside the new chair lift and 
on the piste, so they can ski 
back to the building. A two- 
bedroom apartment is £145,450 
(FFrl.9m); a three-bedroom 
duplex, £240.000. 

Neighbouring Courchevel 
1850 is still pricey, but popular 
with the French, who, in spite 
of recession, are buying again, 
says Davenport. But, with a 
thought for the low-budget pur- 
chaser, she suggests a one-bed- 
room and bunk-room apart- 
ment which can be had for 
£34,000 at Val Thorens. Letting 
this for three weeks in the 
main ski season in February, 
could produce a rental Income 
to cover running costs. 

Val Thorens Haims to be the 
highest ski resort in Europe. 
But it has its detractors. In bad 
weather “you may be forgiven 
for t hinking you have been 
stranded amid the mountains 
of the moon," says The Good 
Skiing Guide 1995 (Consumers' 
Association, £1439, 624 pages). 

What of Italy? It was popular 
for skiing holidays last season 
because of the weak lira but 
not much of its ski resort prop- 


erty comes on the British mar- 
ket. 

When architect and moun- 
tain resort planner Laurent 
Chappis designed Sansicario. 

in northern Italy, 58 miles from 
Turin and nine miles from the 
French border, be knew what 
he wanted to avoid. Some mod- 
em ski resorts are stark when 
snowless in summer. Their tall 
apartment blocks lack the 
charm of traditional chalet 
design. Chappis was deter- 
mined that Sansicario's build- 
ings should have the minimum 
impact on the original scene: 
that the village would be 
vehicle-free and properties 
should have pistes “on the 
doorstep". 

The residences and hotels 
are built around a commercial 
centre on gradually descending 
levels. The buildings are 
spaced out and no more than 
three storeys high. Large 
underground garages accom- 
modate cars. 

The properties are on the 
western slopes of Mount Fini- 
te ve. with a view through 
woods of larch and fir. The res- 
idences, centre and ski-lifts are 
connected by pedestrian routes 
and there is a monorail Tor 
more distant buildings. 

There are 100 cable-cars, 
chair-lifts and ski- lifts, and few 
queues. The centre has shops, 
bars and boutiques. 

In 1976 the first buildings 
were ready. In 1997, along with 
Sestriere, Sansicario will host 
the World Ski Championship. 
Apartments are available from 
£100,000 (L242m) to £300,000. 
There is a swimming pool and 
cinema as part of the develop- 
ment 

Indeed. UK agent Brian A 
French, in Knaresborough, 
which is offering the apart- 
ments, says Sansicario can be 
enjoyed equally in summer and 
by the family which does not 
ski. There is horse riding; ten- 
nis can be played from Sam 
until midnight and a golf 
course is promised, with con- 
struction expected to begin 
next spring. 

■ Information: David de Lam 
& Partners 081-742 0708: 
Lennards Properties Interna- 
tional 071-586 9462: 

Alpine Apartments Agency 0544 
388234; 

Brian A French & Associates 
0423.867047. 


Island refuge from 
cold, grey winter 

Audrey Powell looks at prices in the balmy Canaries and Madeira 

A growing number of become fascinating homes, area of land and can be rooms, several out-houses 
Britons are taking Estate agent Sheena Gallagher, reached easily by car. The an artist's studio. It has att 
tbeir holidays in the or Property Market in Las Pal- price is £50,000. tive views. Price £145,000. 

sun not in the heat mas, can offer a cave-house This agency also has con- North of the Canaries, 


W* ?* ■' ' s ' - r : :r ..- • . . 

■ry 





A growing number of 
Britons are taking 
ttacir holidays in the 
sun not in the heat 
of summer but in cold, grey 
winter. 

For them, buying a winter 
holiday-home in a warm cli- 
mate makes sense and they 
should be able to let at high 
season rates in summer. 

Spain’s Canary Islands, off 
the north west coast or Africa, 
are favourites. Breezes keep 
them from being too hot and 
tlie temperature changes little 
throughout the year. 

Of the seven major islands, 
Tenerife, the largest, is proba- 
bly most popular. Its southern 
coast has beaches, golf courses 
- and most of the tourists. The 
north is damper and greener. 

There is plenty of choice of 
property, one resort in the 
south has apartments, villas, 
building plots and a country 
club with 17 tennis courts. The 
villas cost from £70,000 (Pta 
Urn) to £200.000. with garden 
and swimming pool. 

An interesting Canarian 
house halfway up a cliff looks 
down on the fishing village of 
La Calebi. It needs moderni- 
sing but has scope for imagina- 
tive conversion. £28,000- 
UK agent Babet, in Somerset, 
can send details of these and 
many other homes on the 
island. Allow 7 per cent of the 
purchase price for legal costs. 

Since 1965, Chilcott White 
(Overseas) in Croydon. Surrey, 
has acted ns selling agent for a 
Canarian landowner building 
groups of detached homes in 
Tenerife. 

Today it offers two to three- 
bedroom cliff-top properties ra 
the north, close to the Orotava 
valley and eight miles from 
Puerto de la Cru- These bun- 
«ali»ws or split-level villas 
built to order. 

Prices, with land, are about 
£•10,000 to £50.000 (larger plots 
are available). A garage costs 
from £X50I, 3 swimming pool. 
£10.1100. Add 30 per cent for 
purchase fees and taxes. Build- 
ing Likes six months. 

Gran Canaria, the third larg- 
est Canary island has long 
sandy beaches, which make it 
popular; pine forests ana 
mountains. 

U also has areas of 
both coastal and inland. Many 


become fascinating homes. 
Estate agent Sheena Gallagher, 
of Property Market, in Las Pal- 
mas, can offer a cave-house 
with sitting-room, two bed- 
rooms, two bathrooms, 
kitchen. It is on mains electric- 
ity, "but water comes naturally 
into an underground tank in 
winter." 

The property has its own 


area of land and can be 
reached easily by car. The 
price is £50,000. 

This agency also has con- 
verted farms at around £350,000 
and a number of old “charac- 
ter” properties. One, at £35,000. 
bas two bedrooms and a cellar, 
which is a cave. 

Another, built In 1670 and 
well cared-for. bas four bed- 









LocaJ flavour. Interior (top) and exterior of a two^edroom -character- 
property on Gran Canarta, on sale at £35^)00 with Property Market 


rooms, several out-houses and 
an artist's studio. It has attrac- 
tive views. Price £145,000. 

North of the Canaries, the 
small Portuguese island of 
Madeira has a different charac- 
ter. The Canaries are tourist- 
orientated, Madeira has a more 
settled atmosphere and a faith- 
ful winter-sunshine following. 

It is a beautifiil island, often 
called a floating garden - so 
much vegetation grows so eas- 
ily in its mild climate, but it is 
short on beaches. 

Its image may have become 
dated, but Madeira is no longer 
the "forgotten island”. EU 
money pours in to improve its 
roads and help it develop a 
new business status, with an 
offshore financial centre, free 
trade zone and much else. 

Owners of private yachts can 
beneGt from Madeira’s interna- 
tional shipping register, which 
offers a tax holiday until 2011. 

There is a good deal of prop- 
erty and land to be had, 
though the island does not 
advertise this much to the out- 
side world. A third of the popu- 
lation lives in its capital Fun- 
chal, where prices are highest 

Here, among new develop- 
ments, are blocks of one to 
three bedroom apartments, 
from £53,000 to £110.000. These 
are offered by flhopredio, in 
Funchal, an estate agency run 
by John Rodrigues and his 
English associate, Michael 
White. 

Prices of existing properties 
range from £50,000 to £240,000. 
“The market is a little quieter 
but still buoyant and prices 
have settled," says White. 
“There is a thriving commu- 
nity of English. German, 
French and returning Portu- 
guese from South Africa.” But 
the recession had reduced the 
number of buyers from Britain. 

Another Funchal agent, Ivo 
Pereira, belongs to a group 
building hotels and apart- 
ments. It is building apart- 
ments just outside Funchal. 
They are part of a project with 
its own swimming pool and are 
priced from £85.000. 

■ Information: Tenerife: Babet 
0460 76213: Chilcott White 
081-688 4151. Gran Canaria : 
Property Market 28 64 07 33. 
Madeira IUufpredio2334 77; Ivo 
Pereira 7661 70. 








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Plenty of sandy beaches: Gran Canada 


• . •;£ -y. 'y. I 



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WBd and warm: Gran Canaria offers a warm efimate tempered by mid hnattfts, mountains, beaches and pine forests 


■fc 


PUBS AND CHURCHES 





Heritage /Clive Fewins 

A tour of 
the towers 


W hich came first. 

the tower or the 
church? This is a 
conundrum that 
has taken Bill Goode up many 
a church tower. 

Goode, an Sl-year-old retired . 
pork butcher, has ascended 
and measured all but a handful 
of Britain's round church tow- 
era and can usually tell 
whether a particular tower is 
Saxon, Norman, or a later 
lebuilcL 

He is also the founder of that 
splendid example of the British 
love of obscure but worthy 
causes, the Round Tower 
Churches Society, which comes 
of age this month. 

To celebrate the event, the 
society has published a new 
edition of Goode's guide to all 
the round-tower churches in 
the country. 

Goode became interested in 
churches at the age of 52. He 
was looking for something to 
photograph with his new cam- 
era and when he chose the 
round-towered churches of the 
Waveney valley, inland from 
his native Lowestoft, Suffolk, 
he realised what a poor condi- 
tion many of them were In. 

Bight years later he turned 
ibis enthusiasm into a warinnai 
society, with a membership 
that has just topped 400. In the 
intervening years it has raised 
several thousand pounds 
which has been dispensed as 
grants to help restore the 
round-tower churches that give 
their name to the society. 

There are 175 complete 
round-towered churches in 
En gland, and a handful of oth- 
ers In a ruinous state. Goode 
anri his fellow enthusiasts avm 
to make sure no more are 
allowed to deteriorate, by rais- 
ing funds and creating interest 
in these remarkable buildings. 

Preventing others falling 
into ruin is an uphill task. Of 
the 162 round-towered 
churches in Norfolk and Suf- 
folk, most are in isolated ham- 
lets, or even sitting alone in 
fields at the site of a former 
Settlement- Of the remaining 
13 round-towered churches, six 
are in Essex, two in Cam- 
bridgeshire, three in Sussex 


The Siring ton Anns, Braunton, Devon, on the market lor £295,000 


The Chestnut Horse, Esston, near Winchester, would coat £*10,000 The Horse & Groom, near Bicester, Oxfordshire, on sale to £37,000 


Free house even if a pub won’t pay 


Gerald Cadogan looks at the 
economics of buying an inn 
and finds that even those that 
lose money can be good buys 


“If I were buying a pub again", 
says Tony Hackett, landlord of 
the Bartholomew Arms in the 
Northamptonshire village of 
Blakesley, and a licensee for 35 
years, "I*d start by visiting 
other pubs around - before I 
went to the one 1 was inter- 
ested in - just to see how 
much beer was being drunk in 
the area. If they’re clean and 
bright but empty, it means no 
trade.” 


A rural pub needs a 
village of 500300 
people to be via- 
ble. Most or these 
need to live near 
enough to walk or roll home. 
Blakesley, says Hackett, is 
alright, but “Maidford's never 
been a drinking village.” 

The trade is not what it was, 
Hackett says. Gone are the 
days when licensees wore their 
best suits for the Brewster Ses- 
sions in February (when 
licences are renewed). The 
magistrates would have a 
report In front of them from 
the watch committee on what 
needed repairing and a man 
turned up from the brewery 
with a big book to note it aU 
down. 

“Sometimes, the beaks went 
round to check for themselves. 
Nowadays licensees come in 
T-shirts and jeans. I stopped 
going seven or eight years 
ago," he says. 


His life has been in North- 
amptonshire pubs. One he took 
in 1952 cost £126 for the fit- 
tings, fixtures and stock, and 
had a rent of £16. 

"An old couple had had It It 
was very run down." 

But he built it up and soon it 
was the only pub in the 
county, outside Northampton, 
to have tanka fitted because 
the cellar did not have enough 
room for the increased amount 
of beer he needed. 

Pubs divide into the tradi- 
tional and the gimmi cky. Hack- 
ett has no tolerance for the 
gimmicky. “They are only good 
’til the pub down the road 
comes up with a better gim- 
mick." 

That explains why many 
publicans are in and out of the 
trade in two or three years. 
Theme pubs have a shifting 
population. 

‘There is no allegiance. At 
gimmicky pubs with young- 
sters you must be prepared 
once or twice a week to get 
your head thumped." 

For food, he says, stick with 
what a pub does best, and 
remember that it is not an 
expensive restaurant and 
should not compete with one. 

“A good ham, egg and chips 
is far better to offer than coq 
au vin," even if the husband 
has qualified in catering and 
the wife fancies herself as a 
cook. 


LONDON PROPERTY 


BEANE V 
P E AR C E 


CHESTER STREET, LONDON SW 



A substantial London Town bouse whic 
is suitable for both entertaining on a 
scale and as a family home. 
ENTRANCE HALL: 3/5 RECEPTION 
ROOMS: 5/7 BEDROOMS: 

5 BATHROOMS: DRESSING ROOM: 
TERRACE- GARDEN: CLOAKROOM: 
UTILITY ROOM: STORE ROOM: 
STAFF/GUEST SUITE OF SITTING 
ROOM, BEDROOM, BATHROOM, 
KITCHEN: CENTRAL HEATING: 
SECURITY SYSTEMS. 

LEASE: 47 YEARS 
Prick offers in excess of 
£1,700,000 


TEL: 071 589-1333 FACSIMILE: 071 589-U71 


CONNAUGHT SQUARE, W2 

Minutes from Hyde Park. 

Ad elegant Grade II Listed family residence, 
superbly arranged and presented in good decorative 
order with many original period features. 

•fr Drawing Room + Dining Room 
+ 5 Bedrooms + 3 Bathrooms 
+ KJlchen/Breakfasi Room + Guest Cloakroom 
*► Balcony 

+ Separate Basement Flat: 4* Reception Room 
•i* Bedroom «fr Patio 4* Access to Communal Gardens 
4* Approximately 4.00U sq ft (371.61 sqm). 

LEASE: 114 Years Approx £850,000 

Hamiltons 

Tel: 071 792 4330 Fax: 071 792 1955 


INVESTORS 


Only hv can 

Locate a quality property 
Find an American corporate tenant 
Provide a total management service 

Tel: 071*581 5353 
Fax: 071-584 5078 

197 Knightsbridge • London SW7 1 RB 



Robinson & Ctiung Hong Kong, 

have established a London 
branch to advise on foreign 
investment in UK property. 

• Management * Sales 

• Lettings m Investment 
• Retained Search Service 

Py-vsj covtact Deox Steyn 
R&C London Phoperties 
Sloane Sqhr£, London SW3 

TEU 071 823 8886 
Fax: 071 823 9200 


FRANK HARRIS & COMPANY 


hor the widest selection o 
properties in Bloomsbury, 
Hoi bora. Barbican 
and Tbc City of London. 

CONTACT: 

Bloomsbury Office 
0713870077 
Barbican/City Office 
071600 7000 






: : i-" A • : Hi. ■■ 

, ? • - 7 L 




The Horse and Groom in the Cotswolds Is priced at £435,000 


Hackett also believes pubs 
should concentrate on creating 
the atmosphere of a welcoming 
family pub at the centre of vil- 
lage life to improve business. If 
there is an unruly element, 
“get rid of it straightaway," he 
says. The police “take the atti- 
tude that you took the trouble- 
makers' money helping them 
to get drunk. So you sort it out 
yourself." 

Hackett stocks two tradi- 
tional beers - “real ale" - and 
three keg beers. Drinkers stick 
to one beer. “A Phipps man 
didn't dream of drinking a 
Charles Wells." This made 
problems for the darts teams 
when players refused to go to 
some pubs. Therefore, says 
Hackett, a large choice of tradi- 
tionals has little point as they 
must be kept well and sold 
quickly, or they go off. 

The drink-driving laws are 
not realty a problem. People 
have adapted. One person 
drives, often the wife, if they 
cannot walk home. 


You can become a pub lican 
as a tenant, or manager or 
owner. 

Breweries are disposing of 
tied houses and there are some 
repossessions in the market, 
although far fewer than a year 
ago. So there is a range erf free 
houses available. The choice, 
says Pan! Reilly, west country 
manag er of specialist licensed 
agents. Business Sales Group, 
is whether to take a run down 
pub cheaply, trade up and 
move somewhere else in a few 
years, or buy a sound business. 

Buyers need to decide on 
their aims, and how they want 
to live and - most importantly 
- how strong their marriage is, 
before they start looking. How 
long will they stay? Can they 
improve it? Does it have out- 
line planning permission for an 
extension? Banks are more 
likely now to lend, says Reilly, 
and the brewers will help free 
houses with loans. 

. Pub sellers achieve best 
prices if they have good trad- 


Hostel takeovers 

Freehold pubs on offer from Business Sales Group (071-439 
6617) range from the Horse and Groom atCaufcott near the 
Oxford Canal in Oxfordshire for £97,500 (which takes £1 ,700 a 
week net of VAT. split evenly between wet and dry sales) to the 
Horse and Groom at Upper Oddington near Stow-on-the-WoW 
in the Cotswolds for £435,000, which brings a cottage, 2.25 
acres Including a stream and trout pond, and seven erv-suite 
letting bedrooms (producing about 20 per cent of the £250,000 
net annual takings). 

Near Winchester the Chestnut Horse In Easton fa monied 
vfllage”), costing £410,000, has a small "trade patio garden* 
and a popular pub menu, in the north-east of England the Four 
Alls on the viflage green at Ovington near Barnard Castle costs 
£225,000 from the Leeds office (0532-446 266). 

in the West Country, the Plymouth office .(0752-251 545) Vs, 
setting the Ebrfngton Arms at Braunton between Barnstaple and 
Ilfracombe, with five bedrooms and a 38 cover restaurant and a 
net turnover of £180,000 fin the year to August 1993), lor 
£295,000, down from £320,000. Also reduced are the New Inn 
in Priddy near Wells "popular with cavers and walkers” 
(£445,000, from £475,000), and the Tower Inn at Slapton in 
Devon, now £299,950 from £400X100. 


trig accounts, preferably for 
three years, and the house is is 
in good order. 

“If it needs a new carpet, do 
it before you put it it on the 
market," says Reilly. -The usual 
price is about one and a half 
times turnover net of VAT. 

An alternative guide is how 
many barrels it sells. If toe pub 
sells less than five barrels a 
week, It is not viable. Five 
barrels a week is about 250 a 
year, which can be capitalised 
at £500 a barrel - or a price of 
£125,000. So, occasionally, 
with a low-turnover pub, the 
bricks and mortar may prove 
more valuable than the 
business. 

A pub like this could sell at 
prices far below comparable 
houses - or cottages - that are 
not pubs, although sometimes 


VAT is added to the purchase 
price. 

In tenanted pubs a typical 
rent is £38 a barrel. Managers, 
of course, do not put up their 
own money but normally have 
a share of the profits as well as 
their salary. 

Although the beer is the 
prime commodity, the publi- 
can’s income comes less now 
from the “wet trade". The ratio 
used to be 80 per cent wet, and 
20 per cent from food; hut now 
the food may be 40 or 50 per 
cent of turnover. Gaming 
machines, known as AWP 
(amusement with profit) 
machines, are another source 
of income. The publican nor- 
mally receives half the take. 

Even so if, if a pubtican can- 
not sell beer, other income will 
not keep a pub afloat. 


and two in Berkshire. 

These church towers are 
round, and are found in only 
these six counties, because 
they are areas in which the 
stone was not good enough to 
build comers. The faithful bad 
to gather flints and puddangs- 
tone, a dark iron conglomerate 
from’ the surface of the fields, 
to build their churches. 

Some are very low (the aver- 
age height is 35-J0ft), others a 
little higher and built in clear- 
ly-visible 10ft “bands’*, which 
are the result of the short 
building season between 
Easter and Michaelmas in 
which mortar was able to set 
in frost-free conditions. 

By examining the tower in 
detail - and Goode has 
ascended and measured all but 
a handful of the round towers. 
- he can usually tell its age 
and origin. 

His conclusion is that 90 per 
cent of the East Anglian round-, 
towered churches were built 
before 1066, with some of toe 
churches dating back t