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Mr. 7M UiA .... n.oo No. 30,004 Tuesday August 12 1986 D 8523 B “>s World news Business summary «ik Platinum ‘frenzy Durban court Aquino to ‘^vs Israeli Frankfurt press US forces jets bomb stages leads gold price review banks for bases in fresh of detention equity to two-vear swap plan Beka’a hish BY ANTHONY ROBINSON IN rally JOHANNESBURG By Samuel Senoren In Manila THE NATAL Supreme Court to Israeli warplanes attacked Palesti- FRANKFURT: said and Alexander Nlcoll In London The Commerzbank BY STEFAN WAGSTYL IN LONDON Durban yesterday dedared invalid Angola’s Defence Ministry nian bases in the Syrian-controlled TnAw of 60 lavtijig ghar^ MJmlxt- that South African troops had at- two key clauses of the South Afri- THE PHILIPPINES, with a S26bn Beka'a valley of Lebanon for the ed at mid-session, Mr Brian Nathan managing di- markets have tacked the strategic of Cui- rose Q2J5 points GOLD PRICES surged yesterday to , bond in any case Government's regu- town ’M can emergency foreign debt of which $14bn is owed WfY first time in nearly a year, to 2fil45, breaching 2,000 for the their highest levels for more than rector of Ayrton Metals, a platinum been buying bullion. to Cuansvale, 185 miles inside lations to a ruling which could lead to commercial banks, is attempting It the tinm *pT\n+ marketing *a»rf was second day running first Jane 8. Page 38 two years, boosted by the continu- company, that the The market received a boost ear- to the release of hundreds detai- south-east Angola on Sunday, of to reduce foe demands on its for- that Israeli fighters and helicopter ing rise to platinum which is react- markets were being driven by the lier this year when the Japanese Reuter reports from Lisbon. In nees or force the authorities to eign exchange earnings with a radi- gunships had been in WALL STREET: The Dow Jones in- “speculative frenzy" action in Leb- ing to fears of disruption in supplies in platinum. Government bought gold for the umpnrf the rules. Pretoria, a South African mili- dustrial average closed 2&54 up at cal plan to convert some borrowings - anon against Palestinian targets, from Sooth Africa. Mr Bill O'Neill, research director at minting of a COU1 to mark the 60th tary spokesman said the defence 1.81L10.pBge3& After an urgent application for into equity to Philippine companies. mm jndiPBfinig * stepping Israel's Elders Finance to force saw no point in up of New York, said: anniversary of the reign Emper- commen- Gold hit a peak of $397 an ounce of the release of Mr Lechesa Tsenoli. President Corazon Aquino plans policy of severe reprisals for guer- “We are seeing the highest interest or Hirohito. But traders said ting on “these latest allegations,” WICGROivn. LONDON: Gold issues surged but to London - $27,125 above Friday's Natal publicity secretary of the Un- during a visit to the US next month rilla attacks. in bullion since 1980.’' the activity of the last few days ex- adding that it had been the target others showed some fan< GQts dose — before faUfag Harlr Jp finish ited Democratic Front (UDF), the to seek the support of bankers for On Sunday the targets were said ceeded that, with Far Eastern, Mid- of Angolan elpfawc for many were mixed with a higher bias. The at $387. Platinum, which dosed on Traders said that the trigger for main anti-apartheid group inside foe to scheme, which appears broader be “terrorist sites" in refugee dle Eastern, European and US in- months. sogg FT Ordinary share fader gamed Friday at S50225 an ounce, traded the increase to gold prices, which South Africa, the three judges in scope than debt-forequity swaps camps outside Sidon erwrirpiUxi by vestors all buying bullion. “We have 1L3 to 1,228.7 and the FT-SE 100 briefly above $560 and ended the are up $35 since the beginning of found that President P. W. Botha already arranged by some major -Mr Yasser. Arafat’s Fatah organist** added l&l to 1,5424. PUge August, has been rise to seen people we have not seen for had acted beyond bis powers under the Minister of Justice should pay 38 . day at $54150. the the Latin American debtors. tioiLFageS five years,” said one trader. platinum {nice. The dimh to plati- the Public Safety Act in the way he the costs of the application - bad an Commercial bankers profess TOKYO: Shares managed a moder- In New York, gold and platinum The price faereases «HH an ironic num prices from a low last March authorised detentions without trial. immediate effect on another legal strong support for the principle of ate rise despite concern, ovecliigh prices closed sharply higher despite Egypt, Israel of $237 an ounce has followed foe twist to foe arguments over impos- They ordered Mr Tsenoli's release. challenge to foe validity of the agree _ pr taicfag converting borrowings into equity prices: The Nikkei average adrf*d ofit late in the session. ing sanctions on South Africa. For increase in political uncertainty to Counsel for the state said they emergency regulations brought to as one method of chipping away at Egypt and Israel reached agree- 4348 to 17,4791L Page 38 The pace-setting October delivery South Africa, which supplies some foe fears about the effects of sanc- would appeal against the ruling, the the Pietermaritzburg Supreme ment the the costs of paying interest on for- on terms of arbitration contract for gold on the York tions have improved rather fapn New 85 per cent of the Western world’s latest to a series of court challenges Court by the four leading English- eign currency over file disputed debt But they see Taba border re- Commodity Exchange finished damaged South Africa’s balance of 12100 mptal, which have eroded the powers of language newspaper groups to practical problems well as gion. ’ as Page! $15.80 higher at S394JJ0, peak- payments - every $10 an ounce in- after the emergency regulations. South Africa. amount of conversions which can Frankfurt amid Investors have been buying plati- ing heavy pressure at crease in the gold price some The court’s derision could affect The four newspaper groups are Commerzbank num for fear that Africa be made without creating new eco- S40L South S200m a year to the value of ex- 7-12 Refinery bombed an estimated 500 detainees held to seeking a ruling that sections nomic problems for the borrowing might restrict exports in reaction to ports. This was the highest trading Natal province. inclusive of foe regulations affect- country. Iraqi aircraft bombed an oil refin- any severe emnnmfa sanctions priced reached by the October con- In Johannesburg, gold shares Separate actions would have to ing the press are void on grounds - - They are also likely to look very ery at the Iranian city of Western countries might impose gains talcing ' tract for 2% years. posted record one-day be fifed on behalf of other detainees that the State President exceeded for second even though closely at the terms being suggest- the time in five days. such retaliation is the all-gold index 1900 from Friday’s - estimated to number at least 4JW0 his powers to making them and ed the Philippines Iran said two people were Mlterf New.Yark dealers on the Mercan- thought to South Africa to be ex- by Government dose of 1501.6 to 1605J, the highest - held in South Africa’s three other that they are “vague, unjust or un- and an Iraqi Mirage jet shot down. tile poshed the price of tremeiy unlikely. After the release of guidelines last yet The overall stock market index reasonable." platinum £25 higher than Friday's provinces. Lawyers believe, how- week, bankers in Manila are al- Buying has slipped over into gold also closed at a record 1774X In ever, that before this could happen The regulations forbid the report- IlSOO dosed - the mmmniim allowed on ready saying that foe package be- for three main reasons. prices London the Financial Timwi Gold quickly ing or photographing of any act of US-Soviet talks tiie fixtures exchange. The the Government would ing offered is not attractive enough of the two metals have historically Mines Index closed 35.1 up at 238. bring amended regulations to public violence, strike or boycott to and that fees to be charged ty the US and Soviet arms experts began Deel 1953-100 October platinum finished at Vaal Reefs, the bellwether gold moved together; the platinum mar- keep the emergency to force and without the permission of the com- Government are high. two days of talks in Moscow de- highest level 1981- higher 1700 $54810, its since ket is too small to accommodate stock, dosed £8tt at £43K those detained behind bars. missioner of police. They also fbr- negotiations The plan was devised by Mr signed to speed op an June Aug In Zorich, gold ended at $390JO ($64). Rustenburg, the leading plati- large amounts of money rapidly; The surprise ruling - which also Jaime Ongpin. Finance Minister, nuclear ami space weapons and an mmffg and platinum at $540 an num company, was up at 695p. Continued on Page 12 and some investors anxious about 95p ordered that the State President, and Mr Jose Fernandez, central pave the way for a foreign minis- ounce. the outlook for work! stock and Lex, Page 12; Commodities, Page 22 the Minister of Law »nrf Order Botha rallies faithful, Page 3 bank governor. Their idea came ters' meeting and possibly a sum- DOLLAR dosed in New York at DM from foe secondary market in loans mit 2.0585, SFr L6570, FFr 6.0895 and to developing countries, in which YI53J& It fell in I
Europe 2 Currencies 23 Malaysia: the central bank Editorial comment: Egypt; Etftorinl comment 10 Companies ...... 13 hnoboatb 14 acts to avert collapse 2 unit trusts 10 4 UK America...... 1 28 Companies 13 ! Futures 23 South Africa: Botha calls on UK: computerising for the Overseas ..,.,. 2,3 Gold 22 Intern. Capital Markets 14 15 party faithful 3 Big Bang 10 Companies...... T 11 World Trade ...... 4 Lex...... 12 Trade: pasta proves to be a Britain: a new deal takes Britain 5 UnuHgtiumt 6 30 16,17 Market Monitors sticky problem 4 shape in housing 11 ...... Men and Matters 10 Money Markets 23 gold price; si* Bow Materials 22 US: Murdoch moves closer to Lex: BET; GT Agriculture ...... 22 Stock marketa- Boones . ... 27,30 network dream 4 Management 12 Art* - Reviews 9 ~WaR Street 27-30 -London 24-27,38 GaBtenhiU*'...... 5 Technology W Management: US importer Technology: Alvey at the Copmflflfa...... 22 Unit Trusts 19-0 Weather 12 exploits fashions 6 crossroads 18 Ciwwwl.»»...... » . .. 1®
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August 12 2 Financial Times Tuesday 1980 EUROPEAN NEWS OVERSEAS NEWS
Mahathir seeks to t! Europe-wide move to share tax information attacked I BY WILLIAM DULLFORCE IN GENEYA power been harmon- consolidate THE EUROPEAN Fiscal Con- Association and Federation of claims or initiate prosecutions The West German Finance federation more soberly rejects concerned has federation, representing tax Industry. covering " all forms of compul- and Economy ministries are the convention on four grounds. ised. institutes and consultants: has The "convention on mutual sory payments to general now understood to be recon- First, it offends against the The International Chamber Commerce earlier faulted urged governments of the Euro- administrative assistance in tax governments." sidering their attitude to the principle of mainarining tax- of reshuffle the draft convention for not in Cabinet pean Community not to sign a matters" has been drafted by Tax authorities would be able proposed convention and to be payer’s secrecy particularly as distinguishing between tax convention providing for greater officials at the Organisation for to join in investigations In seeking co-ordination with far as business matters and evasion and tax avoidance. The BY WONG SULONG IN KUALA LUMPUR co-operatiOD among national tax Economic Co-operation and foreign countries and would Britain and France. data protection are concerned. rabid Secondly, it gives the state ICC considered that the con- help in recovering funds The convention's most politics. . . authorities in combating tax Development. It is due to be receive Dr Mahathir Mobamad, the grass-roots opponents in Switzerland have excessive rights to information vention would open the way for credit. Dr Mahathir evasion and avoidance. presented to ministers in the owed by companies operating Malaysian Prime Minister, fresh To his living likened it to an Orwellian before any criminal investiga- tax authorities to undertake the already, weak The Confederation's state- 21-nation Council of Europe in abroad or by citizens his landslide victory in did not erode " fishing expedi- ! from scheme, concocted by faceless tion has been instigated. Next, unwarranted position of the non-Malays in ment, issued from its head- October and, if adopted by them, abroad. " informa- the recent general elections, has bureaucrats in the OECD who it denies the taxpayer his right tions for irrelevant Cabinet Most of the coali- quarters in Bonn last week, would be opened for signature The Swiss Government reshuffled his Cabinet the legal allowing tion. It was particularly yesterday already said it will not join and are accused of trying to sneak to a hearing by tion partners in his National follows similar attacks on the by member-states. convention's pro- and further consolidated his convention Luxembourg and Liechtenstein it through the Council of for an exchange of information critical of the Front were given bade, the proposed convention by the 'Essentially, the " " ex- power. reservations Europe without careful con- at a purely administrative level. vision for spontaneous ^ . of seats as in the International Chamber of Com- would open the way for national have tabled serious retained for himself the same number year sideration at governmental Fourthly, the Confederation change under which states He government. merce, by professional organisa- tax authorities automatically about the convention. Last powerful Home Ministry, which previous argues, it is wrong to introduce would be obliged to pass on in- Paul Lc vetoed OECD a level and without it being However, Datuk pqg , tions of tax accountants in West and spontaneously to exchange the Swiss in the controls the police and tested by public opinion. a multilateral convention before formation without being respected Minister - of Germany, Switzerland and Aus- information that would help scheme to lift banking secrecy monitors national security and the European Fiscal Con- tax legislation in the countries requested to do so. Industries. re- tria and by the Swiss Bankers' them collect taxes, enforce for tax authorities. The developments. Far his Primary w« political by Dr Lim Kheng Yaik deputy, he reappointed Mr placed . Lira, as Gcxakin Ghafar Baba wbo, at 61, is a because Dr senior to him year older than him and is not Party President, is regarded as a threat while con- in the party. Superpower in powerful Dr Mahathir said there would Restructuring of key firming loyalists government portfolios of finance, education be no change in think we are on and agriculture. policy as “we arms teams track," as proved by At the same time, sup- the right mandate at the elections. porters of Datuk Musa Hitam, the industries may be said the country was -fac- his former deputy and poten- He begin talks difficulties and challenger, were dropped ing economic tial would be given to tack- Karpov, the chief to sensitive port- priority MR Viktor or shifted less unemployment and boosting Soviet arms negotiator, be- folios. One of these was Rais ling in Spain investments. - extended with a high-ranking Yatim, who was moved from private gan talks general elections on American delegation yester- information to the Foreign In the IN MADRID 13-party National BY DAVID WHITE day saying the Soviet Union Ministry. Observers note that, August 3, the Front won 148 of the 177 seats, STATE-BACKED streamlining in the light of developments in “ would do anything " to while the Foreign Ministry is sum- nevertheless with the United Malays National measures for key Spanish the market since the last plans schedule a superpower prestigious, it is Moscow. time for Organisation securing 86. industries will need to be were drawn up three years ago. mit, AP reports from one that allows little extended over the next few Industry experts say that Spain Bat Mr Karpov charged years in response to changes needs to shed another 10,000- that public statements on in the international environ- 20.000 of the 60,000 jobs In the US arms control policy sug- ment. according to a report by sector. gest the White House is not Malay bank fights the Industry Ministry. The Socialist Government's interested In progress to- industrial reconversion pro- ward disarmament, a pre- The report comes amid grow- gramme. announced in late frequently cited by ing expectations of another requisite 19S3. envisaged some Pta the Kremlin for setting the •* reconversion " plan for the to avert co-op crisis l.OOObn of state-backed support date of the next US-Soviet steel industry, which would be far steel, shipbuilding, textiles, summit. Spain's third attempt to cut BANK NEGARA, the Malaysian from panicky members in the domestic electrical appliances, outside costs and adjust production in Mr Karpov spoke central bank, has ordered the past two months. fertilisers and other activities. Ministry to an the sector. The terms under the Foreign suspension of 24 of the 34 In announcing the suspension This covered new investments, a which Spain joined the EEC at ABC-TV crew, acting as deposit-taking co-operatives of the co-operatives’ operations financial restructuring and television the beginning of this year pool for American (DTCs) in a move to avert a last Friday, Mr Daim Zainuddin, labour cuts. left for the allowed the Government to networks. He then financial scandal potentially as the Finance Minister, also The Ministry's report said the j delegation continue state support for steel talks with the US as the loss of nearly ordered the assets of 136 direc- "globally pasi- damaging results had been by Mr Paul NItze, officials for three years to the end of j headed $lbn to Hong Kong property tors and principal to tive " but that there were ! Reagan's 1988. President Ronald speculators by the state-owned be frozen and their passports grounds for prolonging state i ISLSM'.Wf arms control adviser. 1979- Impounded. - This permits Madrid to com- intervention. Investments Bank Bumlputra during The embassy and mem- 83. Bank Negara has now ap- plete its current Pta 525bn under the programme up to US bers of the American delega- immediate reason for the pointed 17 accounting firms to (£2.65bn) plan for updating the the end of the last totalled The tion declined to comment on Otto FoeU, central action was the investigate the accounts and country's main integrated steel Pta 160bn and were due to Mr Paul Voleker. the US Federal Reserve Board chairman (left), and Hr Karl bank's negotiations, taking place colleague Otmar Emrain- DTCs by assets of the co-operatives and complexes. reach Pta 4B3bn by the end of the the Bundesbank president, used the occasion of the funeral of former massive run on the government guest house stimulate its unhalted, report on their financial posi- The chairman of the state- 1988. In a ger to meet for several hours to discuss the US desire for West Germany to depositors which, a in the Lenin Hills on the edge would almost certainly have led tion Is expected within a month. owned Ensidesa steel company, About 80 per cent of *hs economy The talks, scheduled to last to the collapse of a great num- The other 10 remaining DTCs Mr Fernando Lozano, said at 67.000 • jobs involved had central Moscow, It believed to be financially the weekend that he did not already been axed by the end of ber of the co-operatives. are could also trigger run on sound and are allowed to oper- rule out a further reconversion of 1985, it said. two days, are seen as an Im- a portant phase of preparations North Cyprus commercial banks and finance ate normally. for a September 19-20 meet- Turkish economy grows companies in the present The central bank is also pro- political and impose tough rules ing between US Secretary of government climate of posing to bn State George Shultz and economic uncertainty. the DTCs similar to those Oslo pays oil companies Foreign Minister faster expected enforced on banks and finance Soviet than quits after split The situation is politically Eduard Shevardnadze. sensitive in that many of the companies. BY DAYID BARCHARD IN ANKARA The DTCs have been around The meeting is intended V THE COALITION government directors of the DTCs are £22m to avoid lawsuits for sime time, but they mush- set an agenda for a 1986 TURKEY’S GROSS national pro- Turgut Ozal, the Prime Min- of Uhe breakaway Turkish prominent politicians, particu- Malaysian roomed in the early 1980s when BY FAY GJESTER IN OSLO summit between Mr Reagan duct is growing much faster ister, whose administration Is Republic of North Cyprus larly from the Association, the the promoters exploited a loop- and Soviet leader Mikhail than expected, but so is the cur- trying to combine a heavy debt resigned yesterday after dis- Chinese NORWAY’S GOVERNMENT is tion royalty payments should be hole in the law. Gorbachev. rent account deficit, according repayment burden with con- agreements over plans to Chinese partner in the coalition to pay 10 oil companies a total made. Undre (he finance ordinances, to figures published the gov- tinued growth. streamline the economy. Renter government. The MCA fared of -NKr 246m (£22m) as a result Philips had claimed that the Mr Reagan and Mr by hold the ernment at the weekend. During the first six months of reports from Nicosia. badly in the general election of a law suit brought by another new rules, which were Gorbachev agreed to the year, Turkey paid $2.5bn, Prime Minister Dervis early this month. group of companies, headed announced in a 1972 decree, meeting In the US after their The state institute of statistics Deposit taking oil said that Mr Rauf Denk- last reported that 7.8 or nearly per cent of GNP, Eroglu . ate by Philips Petroleum. could not apply to oil field first summit in Geneva GNP grew by 5 No criminal charges Soviet Union per cent during the first half in principal and interest pay- tash, the Turkish-Cypriot leader filed against the 136 co-operatives are, Last December, after a licences granted before that November. The being , they want of the year, well the tar- ments. Domestic and foreign had asked him to stay on as a prolonged legal battle, the date. The Ekofisk Field licence has repeatedly said above directors and officials concerned, progress toward an get level of per cent. debt liabilities are currently caretaker until a successor was facing a collapse erf Norwegian Supreme Court dates from 1965. to see 5 Though but Malaysian authorities say agreement be- government officials have equivalent to nearly half the named. awarded the Philips group — The companies which will arms control been the co-operatives were involved confidence, Wong scheduled. expecting a strong regular budget revenues of the The end of his 13-raonth-old licensees on the country's now receive money from the fore a meeting is performance principally in two dubious stressed the Government administration followed weeks this year, partly i . Ekofisk Field just over Government are the licensees on Mr Karpov because of a activities which have got them Sdlong reports The over plans, of negotiating a good harvest, the strain on the exchequer . of argument NKr 140m, plus NKr 675,000 the Frigg, Valhall, Odin and Importance most opti- into serious trouble. treaty ban on nuclear testing. mistic guess until the latest and the central bank is likely suggested by Turkey, for the costs, as compensation for extra Heimdal fields, all of which They have lent huge sums only banks and finance com- The Soviet Union was figures were published was that to continue until the end of territory to Introduce liberal interest charges incurred after pre-date the 1972 decree. The of money to directors, their panies can accept deposits from conducting a unilateral GNP growth this year would be next year. Though Turkey has economic policies to attract Oslo unilaterally changed the payment is being made to relatives and associates, often the public, but the Co-operative on tests that than per cent. paid off 65 per cent of its foreign investment and reduce rules about how often produc- forestall law suits by the 10 moratorium more 6 Act allows cooperatives to hut principal and interest commit- Ankara. without adequate collateral. expired last Wednesday, Opposition politicians have dependence on accept deposits from members. said whether it will expressed some scepticism ments due this year, totalling They have invested huge has not Until the emergency rules the temporary ban. about the figures, noting that $3.8bn, it will have to pay a sums in land, property and the continue Soviet grain warning were gazetted three weeks ago. they are being published during total of $4bn next year. share market at the peak of The Soviet Communist party the DTCs did not under less the run-up to important by- The current account deficit the boom. come Yugoslavs produce daily Pravda criticised poor the supervision elections. for the January-May period, at of Bank Negara, Citibank attacked work in the agricultural sector Following the collapse of the hut under the Ministry of PLUNGING productivity, soar- alarming level," it said. Turkey’s economy grew by 5.1 $922bn is running nearly three yesterday and said that grain share and property market last National and Rural Develop- ing absenteeism and growing Bureaucratic organisations had A petrol bomb was thrown into per cent in 1985, with manu- times as high as it was during must be saved during the year, most of the DTCs found ment, which was ill-equipped bureaucracy are afflicting Yugo- grown almost as large as the a Citibank branch office in facturing and agriculture grow- the same months last year. current harvest Reuter reports themselves strapped for cash. to monitor their slavia's economy, the official communities or bodies they Athens early yesterday, causing ing by 2.7 per cent and 5.7 per During the period, the trade activities. from Moscow. The US Depart- In many instances, the purchase The crisis facing newspaper Borba said yester- were intended to serve. Yugo- heavy damage but no injuries, cent respectively. It looks as if deficit rose by per the DTCs 42 cent to of property and shares were day. Renter reports from slavs employed in the state police told AP. The initials of ment of Agriculture last month reached its climax in the -past the 19S6 figures could be around $1.309bn, while tourism Tec ts from companies '• lowered its estimate of the In which , week Belgrade. sector put in only three to four a group with a record of attacks 10.3 per cent and 7,1 per cent and remittances from wonders 1986 when norvous depositors-, Soviet harvest to 180m tonnes co-operative directors have a "The lack of productivity in hours work a day on average against US targets were written strong growth performance abroad, two of the main descended on DTC- branches to | A items vested interest from 185m and forecast that ; Yugoslavia, in spite of all and 600,000 people were absent in large chalk letters in the would be of considerable on the invisibles balance sheet. make withdrawals after hearing
Moscow would have to import i appeals, has reached an from work every day. I street outside. political assistance to Mr felL The 34 DTCs have total rumours that they were in 34m tonnes deposits estimated at more serious financial trobule. than ringgit 4bn (£1.03bn) and The Government hopes its Italian police raids the 24 which have been sus- intervention will save many Italian police said yesterday pended have deposits of ring- DTCs from liquidation and pro- they had arrested 147 people, git 1.5bn, from 540,000 tect the funds of depositors, but taat\ Poland and UK reach accord on debt rescheduling .> hs>n seized 22 lbs of drugs and large members. the apposition leader, Mr Lim This compares ~ BY ALEXANDER NICOUL numbers of arms and ammuni- with ringgit Kit Sing, claimed the move 51bn in tion in five cities, Reuter reports deposits for all the 39 would only protect the pro- &W POLAND AND Britain have lines to Poland as part of the bringing payments “ from Milan. said that in commercial banks and ringgit moters and was politically moti- ^ HI arreas up Warsaw. Only special citizenship by the Council of They a I4.5bn for the 42 signed a bilateral rescheduling latter's rehabilitation among to date and formally signing a offences,” such as the refusal of State. But “ in practice," it co-ordinated two-day operation finance com- vated. He is demanding that Polish panies at the end of last year. Tan Sri > --.M agreement covering western creditor governments, multilateral agreement with the soldiers, Polish diplomats and noted, the authorities had no involving thousands of men in Ahmad Noordin, the “ One of those suspended respected debts which fell due in 1985, which has also seen the country Paris Club, which groups official other officials to return would legal grounds " to prosecute Milan, Como, Pavia, and Varese is investigator into the Koperatif Serbaguna Malaysia removing one obstacle to the being admitted to the Inter- creditors, on rescheduling pay- be liable to prosecution. a Polish citizen abroad " for the 122 suspects were detained on Bank Bumlputra loan scandal, official national (KSM), which was sponsored be resumption of new UK Monetary Fund. New ments due in 1986. East European countries as a mere fact of refusing to come various drugs, illegal arms and by appointed to probe the DTCs. credits. credit was stopped after martial • Poland has indicated that the rule automatically remove the back." false currency charges. Fifty the MCA and which holds 41 According to bankers, the per cent in The accord was believed to law was declared in 1981. 124,000 citizens who left the citizenship rights of those who Most Foies who decide to stolen cars were recovered and the publicly-listed DTCs are only part of the prob- cover Multi-Purpose Sll9m of debt, though In June, the UK made an country legally since 1980 and remain abroad illegally. remain in the West leave the returned to their owners. Holdings, the lem of what one banker de- giant Chinese investment the Export Credit Guarantee offer of £20m credit, but this refused to return would not be A lengthy article in the country as ordinary tourists. In a separate operation in group. scribes as the huge and com- Department could not confirm depended on several conditions MPH reported an after-tax 1* prosecuted if they visited weekly newspaper Sprawy i Large numbers of Polish citi- Palermo, 300 police using dogs loss plex "black financial market this. of ringgit including the signing of the Poland or came back for good Ludzie noted that Poles wbo zens who arrive at West and supported by helicopters 192m for December that has developed in Malaysia. Britain it rescheduling payments. “ " 1985. has indicated that of 1985 with a newly issued Polish pass- refused to return to Poland German ports on short cruises raided hundreds of houses Equally disturbing, they say. ready and is to reopen official credit It is conditional on Poland port, writes Leslie Colilt in may be deprived of their do not return aboard ship arrested people. One DTC has experienced a is the proliferation so-called 25 of " withdrawal of ringgit 200m " credit and leasing companies Diana Smith assesses the Portuguese coalition’s efforts to get the country moving N-call by Pacific states AUSTRALIA and New Zealand majority of forum natioiffl have joined n small South decided Government basks but economy languishes to ratify it. “acific island nations in agree- The joint communique said ing to put pressure PORTUGAL'S PRESIDENT is week sTrike has kept out-of- on France nuclear powers Businessmen last year had where would be asked unemployment rose to stop nuclear tests in the to endorse on holiday in the Algarve. So town buses off the roads in the vociferously the treaty which pro- Having declared itself bent on subjecting a welcomed the slightly this year to about 12 region and end its hold over is the Prime Minister. Many morning and Is keeping car-less mbits the ownership, use, centre-right Government headed per cent of the labour force. New Caledonia, members of the Administration Lisbon families at home. cumbersome public sector to market pressures, Reuter reports stationing or tasting nuclear by Prof Cavaco Silva, a skilled Generous EEC structural funds from Suva. of and Parliament are also roast- Workers at the nationalised weapons and the of the Government has just made available more economist who is developing a and more comfortable debt dumping ing in the south or dozing in lnterurban bus company, Rodo- strong The South Pacific Forum, nuclear waste. It does not deny than $500m in assistance to nationalised transport populist political style. positions are helping Portugal which ended passage bucolic hideaways in the rural viaria Nacional, are striking But they have a four-day meeting or post calls by nuclear done little to to rise from its dangerously- yesterday, centre or north. for a 20 per cent pay rise. and industrial companies. also told the US it ships. help a Government elected to indebted condition in 1982. The The overwhelming majority Management is offering them must pay generously for authoritative economic projec- government complains when fishing of the Portuguese people, how- 15 per cent 3-4 per cent above on subjecting in the area or face increased — a cumbersome couple of dozen staff declared tions and figures that it has had extraneous factors are given ever, is not visiting the Algarve estimated inflation for this Soviet competition. public sector to competitive an Es 700m (£3. 25m) first year to correct several times since credit for a shift of the current FINANCIAL TIMES. — it can barely afford day trips year. The forum market pressures whatever the profit-—barely Es 50m less January, to meet its 1986 tar- account into a forecast surplus countries, spread Published by The Financial ilim j to a suburban beach or picnics Like nearly every public consequences, over millions (Europe) Prof Anibal profit than the nationalised get of a 10 per cent rise in of $800m this year. Mr Cadilhe of square miles I Ltd, PraaMurt Branch. in a municipal park. A recent sector corporation, Rodoviaria Cavaco Silva's Government has giant Banco Portugues do investment of ocean, said they would «P»«®t«d by Lflugo, Frittkluftf admonished his fellow Finance ask i survey that only 23 per Nacional has financial prob- the nuclear Main, and, showed just made more than $500m Atlantico with its gibn assets, They consider Mr CadUhe Ministers over an EEC report powers to recognise as mambar*. tf tb* *' cut | = cent the population will lems. This their Board of Dtacton, : of holi- has not prevented available in assistance to 400 branches and several punishingly-hjgh interest rates that made the low dollar one-year-old treaty ueclar* F. Barlow. and RAP. McClaan, day away from home this year, its staff from demanding heavy nationalised transport and staff. ing the South Pacific O.TA, Danw. M.CL thousand too jittie too late and that the oil prices Portuguese bene- to be a Gorman, even though life is a little easier wage and fringe benefit in- nuclear-free DJSJ*. Palmar, Loudon. industrial companies in this The new banks, which have administration only offered factors—but as they say roue. I in- in Prhrten FranWurtar5oei*Utt*- thanks to falling inflation and creases to recover buying year's budget. set up here following the relaxa- centives to investors Lisbon: This executive is The late in the so key issue at the confer- BruekerewJmbR, FrankfUrt/Mldn. slowly-rising buying power. power lost in the fierce aus- tion of legal curbs in 1984. were day. good at praising ence Freer market forces promised itself it needs was France's troubled B*Wn«We editor CAR Smith.. The tiny cur in petrol prices terity and depression of 1983- furious at what they considered After no outside by the Prime Minister and his Mr Cadilhe’s minimum praise. territory of New Caledonia. A Fnmkfiiri/Adaixi. GnioUettsiraast that followed an oil price and 1985. Purchasing power de- favouritism towards 54. 8000 highly confident Finance nationalised capital debacle, accompanied by The population at large joint communique said the Frankfurt am L V debt servicing windfall for the clined by 16 per cent In those The Financial Minister, Mr Miguel Cadilhe, banks. The Government, un- his peremptory statement that shares the Government's meeting agreed unanimously to 'Hues Ltd, IMS. Government of at least Slbn two years— painful blow for being criticised a were set back somewhat by the used to othex no more new banks will be delight In itself: a recent poll i? Usting with the, FINANCIAL TIMS, USES No- ! IB0040, has put even more drivers in a population which earns the Parliament itself i bli ! latter's recent hasty imposition than by found authorised unless they offez gave 70 per cent approval to united Nations Decolonsation pi ahad daily aacopt&a- the traffic jamming the spec- lowest wages in Europe but heavy fire from Committee. d&ys and toUdayy. ULS. of a 67 per cent increase in under bankers investment in other areas, Prof Cavaco Silva, who once BUbeoUftton tacular bridge over the Tagus pays high prices for meat, fish, and powerful private Investors. many private investors rates S3M.00 par annum. Second minimum capital requirement wonder said: “I am never wrong and nuclear-free-rone the dairy product vegetables , Jhf treaty postage paid at Mow- Y«*. ! at Lisbon bound for long and Abrupt changes in the ground about the Finance Ministry's rarely have doubts." failed for new private and foreign The to produce z . the same And at ttddltioQil flf* . . stretch of windswept beach largely because of the chronic rules did not improve the understanding of the markets— doubts nivllbdl it seems are left to united stand, with floes. POSTMASTER: capital inefficiency of Portuguese banks. This came a few weeks Papua New aaadaddiwa south of the Government's image in the and are weighing investment investors once they finish Guinea and after Manufacturers Hanover — Vanuatu claiming «*“««*» to FINANCIAL. UMSS. Although stuck in traffic, they agriculture. sectors that hold Portugal’s decisions accordingly. their sunbathing 14East and grilled the treaty was too weak and 60th S&tet, New Ydsk. Ni . lucky. A six- Having declared itself bent Trust with a private purse-strings. not are relatively one branch and That is bad news for a country prawns 10022. on the Algarve. comprehensive. But the
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FinancM Times Tuesday August 12 1986 OVERSEAS NEWS
Israel and Egypt Botha rallies the party faithful before the siege
SOUTH AFRICA'S National ground that the Government agree terms of Party which has ruled the coun- Anthony Robinson reports on a National Party congress moved decisively to undercut try without interruption since the right by re-introducing an 1948 gathers in Durban this even tougher state of emerg- In the weeks and months modify some aspects of the evening for a special federal ency, bombing alleged ANC Areas Act, which he re- which followed the Rubicon The sale of one of the last sizeable Canadian investments in Group bases in neighbouring congress to rally the party no longer three arbitration for Taba speech South Africa paid a high Sooth Africa Is now thought likely, reports Robert Gibbens cently said was re- countires faithful as the country girds and demonstrating— price for Mr Botha's brutal garded as “a sacred cow,” but itself to face sanctions and from Montreal. Canada's nickel-producing Falconbridge is to the Commonwealth Eminent BY ANDREW WHITLEY frankness. It sparked off a run tne subject is under investiga- IN jBUISALEM international isolation. expeeted to sell Its 25 per cent stake in Western Platinum, the Persons Group (EPG) and fir weeks President’s Council, on the rand which two major shareholder of which is Lonrho with 50.44 per cent tion by the Geoffrey Howe. British Foreign ISRAEL and Egypt have finally Shamir, the Foreign Minister The congress takes place later led to temporary closure Western Platinum operates at the Republic’s famous of new policy Secretary, that almost a after In tbe absence in particular— reached agreement on the and Likud leader, indicated that year to the day of the Johannesburg stock ' Bushveld igneous complex in the Transvaal. This year the initiatives the style and tone of the South African Government v~'H terms of arbitration over the endorsement of the arbitration President P. W, Botha’s ill- exchange and foreign “ the company aims to lift mine output of platinum group metals Mr Botha's speech and the sub- was in no mood to take lessons disputed Taba region,- it was document by the inner cabinet fated crossing the Rubicon of exchange market, followed by a ” to some 270.000 ounces, a substantial figure by world standards. sequent five set piece debates from abroad announced in Jerusalem yester- may not be automatic despite apartheid speech to the NataJ of — partial moratorium on $l4bn In London yesterday, the platinum price surged ahead $42 to on the economy, the security day. the fact that Egypt has now congress of the party in the In the the total $24bn foreign debt and more than $544 an ounce. situation. constitutional past this has been the The draft arbitration agreed compen- same Durban venue on August agree- to make direct re-introduction of the two-tier developments, foreign affairs kind of stance which has helped ment; concluded in Cairo on sation to the families of the 'Ras 25 last year. That speech was to win elections and rally rand system. and what is termed “group Sunday alter seven months of Burka victims. preceded by a large scale meat's already announced legis- franchise to the black majority ” whites — including many The effect on International security will be important. In often tortuous negotiations, will In an interview with the' state- public relations exercise which lative programme, net for and refusing demands for the English speakers—around the opinion so strong, magnified addition to growing inter- be submitted to Israel's inner run Israel Radio, he referred led domestic and foreign was dramatic announcements. This release of Mr Nelson Mandela fatherland-in-danger slogan. In by the timing in the very middle national pressure on South cabinet for approval tomorrow. to ‘'Incitement” in the Egyptian audiences to expect dramatic was not the original intention. and other jailed or exiled principal, the Government does hemisphere Africa, the rising tide of alleged discrimina- changes in government policy. of the northern first leaders of the African But the document still lacks media and When Mr Botha announced banned violence in the black townships not have to hold elections until tion in Instead, President Botha wagged summer season where other call the names of the three inter- against Israel by Egypt his Intention to a federal National Congress, have fallen and increasing terrorist activity 1989 and only a major split in his finger at the and, news is traditionally Thin, that national arbiters who will make the fields of trade and tourism. world congress nearly six months ago on barren ground. —especially landmines in the party could undermine its rather the Government has not been up the five-person panel. The Foreign Ministry official than unveiling the the hope was that the focal point Unable or unwilling to meet deeply conservative rural areas present strong parliamentary expected list of radical reforms, able subsequently to gain what the would be broad majority. Detailed on-site mapping: work disclosed that arbitration will of meeting the demands of moderate home- and the spate of bombings in On present form Mr limited message it believes is due recognition for also remains to be' completed. begin one month after the rati- himself to the discussion on a key element of land leaders like Chief Gatsha supermarkets, led to a worrying Botha is still very much the of that reforms would take place the string of apartheid reforms his January at the open- “We have an arbitration fication by both countries speech Buthelezi of Kwazulu. the rise in support for parties man in charge and shows no which it did in fact Introduce In agreement with a hole In it,” the draft legal agreement It is not in response to external ing of parliament—the proposed original hope that details of the sign of relinquishing his posi- after the “ Rubicon further to the right than the a senior. Foreign Ministry then expected to last about 18 pressure or black radicals but the months national statutory council. The proposed national statutory tion. But he has turned 70 ar.d speech ” and which might have national party. official said yesterday- But he months. at the Government’s own speed council, to be chaired by Mr council bill would be thrashed carries heavy burdens as state produced a very different reac- Botha The failure of the police to confirmed that, under heavy A six-stage procedure was and direction. himself, was billed as a out by all sides and ready for president under the present tion had they been announced “ prevent tbe para-military American pressure, Israel and outlined, whereby the two sides In a phrase which the world means to give blacks access to debate at the congress have GauIIist -style constitution. as expected on August 15. power ” Afrikaner Weerstandsbewging Egypt -had concluded the wlU initiall y submit written has heard many times since, at tbe highest level and fallen flat. At the same time One of the most important “ the (AWB) breaking up a political negotiating stage of their four- statements of their respective Mr Botha declared: I am not It was an error of judgment last few months have seen there is also little chance of Mr considerations in Durban this continuing efforts to meeting held by Mr Pik Botha, year-old dispute. .claims to the arbitration panel, prepared to lead white South which President Botha is deter- persuade Botha being able to announce week could well be to gauge leaders of the Foreign Minister, in Peters- Last January, the coalition which will be based in Geneva. Africans and other minority mined not to repeat this time six non- substantial changes to the the mood of the party and i V: independent black homelands burg three months ago indi- Israeli Government agreed to Later, oral arguments will be groups on tbe road to abdica- round. In the weeks leading up Group Areas Act and separate assess whether the rime is ripe and that rot also accept binding international heard, followed by visits to the tion or suicide.” to this year’s federal congress other black leaders to join. Amenities Act which, together cated the bad for an earlier general election arbitration on the tiny Taba sites in dispute. Subsequent events indicate party sources have taken the Once again, however, the with the Population Registra- spread to the security forces to strengthen the laager while ’’ region, at the head of the Gulf Apart from the one square that the “ Rubicon speech opposite tack and have been Government’s attempts to tion Act. remain key areas of which the Government relies adapting the economy to siege 1 fio of Aqaba, which Israel held kilometre Taba region, Israel honestly revealed the basic quietly spreading the word that create a mechanism for indirect apartheid legislation. upon to maintain the estab- conditions and seeking to k onto after its withdrawal from and Egypt also disagree over underlying attitudes of South now & the time to consolidate black participation in decision- Mr Botha has hinted at lished order. defuse black anger by social the Sinai Peninsula in April the demarcation of their Africa’s Afrikaner leadership, and press on with the Govem- making. while denying the government willingness to It was against this back- and economic reforms. 1982. border line at 14 other points, But the acceptance of arbitra- the Israeli official said. But tion was made conditional on most of these other disputed opcii an overall improvement with re- points are miniscule. lations with Egypt Israel has The names of the neutral Saudis likely to increase output before Opec curbs take effect demanded the return of the arbiters are being selected from Egyptian ambassador, with- a list of SO eminent inter- BY RICHARD JOHNS drawn in 1982, and compensa- national lawyers drawn up by tion for victims of- a shooting the US. But after three rounds SAUDI ARABIAN oil produc- of Petroleum Exporting Coun- start of September. nominations by customers who week Sheikh Ali Khalifa al East. incident at Ras Burka in the of submissions by each side, no tion this month is projected by tries’ interim accord on quotas The discounts were given in have agreed berthing and lift- Sabah, its Miniver of Oil, said Qatar alone among the four Sinai last October. agreement has yet been reached major oil companies as likely comes into force addition to netback terms, ing arrangements with the it would reach a rate of 1.72m conservative. Arab producing Yesterday, Hr Yitzhak on any one name. to run at a rate of at least 6.2m Customers are still anxious whereby prices are related to Saudi Government. b/d, but efforts would be made states of the Gulf is cutting barrels a day and possibly as to benefit from discounts of 50 actual market realisation for A rate of 6.2-6.4m b/d would to reduce it to below 16m b/d. production. The four were much as 6.4m b/d, a level which cents to $1.15 per barrel, petroleum products, less the compare with actual production The level in July was 1.5Sm b/d mainly responsible for the will add significantly to tbe sur- depending on tbe volumes costs of transportation and in excess of 5.4m b/d in July (again not including the surge in Opec output last month plus on the oil market. involved. The discounts were refining. and a quota under Cpec's neutral zone). to more than 20m b/d. Qatar Assassination bid fails on Failure to restrain such a offered from the beginning of Estimates of the likely level interim agreement of 4.353m Kuwait, though, will be is understood to have informed rate is likely to increase con- May to boost exports but last of Saudi output — which does b/d. So far Riyadh has made no reluctant to risk any goodwill customers last month that it siderably the glut and depress week the Saudi Ministry of Oil not Include its entitlement from move to limit the flow of oil. on the part of customers follow- was switching away from net- prominent Beirut Christian prices by the beginning: of next gave notice that the incentive the neutral zone shared with Kuwait's output is also ing its success in establishing back terms to prices related to month when the Organisation will be withdrawn from the Kuwait — are based on tanker expected to higher. Last new market outlets in the Far those of Oman. BY NORA BOUSTANY IN BEIRUT be
A FORMER Christian com- Saadeh, moved swiftly to con- mander was shot' and wounded tain the turbulence in the Israel in an early morning ambush Christian camp, recapturing its yesterday following daylong lost role as a moderating force. battles in East Beirut and an Health Minister Joseph al attacks inconclusive revolt in Christian Hashem brushed aside specula- militia ranks, tion that Syria or Mr Hobeika had masterminded The convoy of Fuad Abu the latest turmoil when he emerged from bases near Nader, a Phalange Party Polit- an urgent meeting buro member and nephew of of the Phalange Party poiitburo. Mr Lebanese President. Amin Baalbeck Saadeh announced that a Gemayelt fell into a trap set up special team would investigate by gunmen as he. made his way By Andrew Whitley In Jerusalem the attack on Abu Nader, back from an overnight meeting which also left four of his ISRAELI warplanes yester- __ of a crisis committee called to 1 ‘bodyguards 'gravely wounded. day attacked Palestinian mediate a truce among warring Growing disaffection wilh bases in the Syrian-controlled Christian, militiamen, one of'hi? militia rule in Christian areas Beta’t region ot Lebanon aides said. 'following three internal upris- 1 for the first time in nearly The outbraik of tfgh'tfii "the t£ ings since March last year is a. year, confronting Syrian worst since a. January 15 up- helping to restore the Phalange ground - to - air missiles ... toppled Syrian-backed rising Party as the primary arbitrator stationed along the border. Christian militia .commander of tiie minority Christian It was the second day In Mr Elie Hobeika. reflected dis- community. Mr Saadeh, him- succession that Israeli fighters content among certain militia self from the northern district and helicopter gunsbips had groups with h reorganisation of Batroun, enjoys good ties been In action in Lebanon carried out by Mr Samir with .Mr Geagea with Presi- and against Palestinian targets, Geagea. Mr Geagea became the dent Amil Gemayel and his indicating a stepping-up of commander of the Lebanese family. IsraeFs long-standing policy Forces after a Syrian-brokered Abu Nader’s inclusion in a of severe reprisals for guer- accord collapsed . and Mr crisis committee to negotiate an attacks. Hobeika was forced into exile. end to the fighting brought him rilla Militia spokesmen explained back into the limelight after a On Sunday the targets were that the displeasure with Mr year and a half of oblivion. A said to be “terrorist sites’* Geagea's style of leadership revolt staged by Mr Geagea and In refugee camps outside resulted from bis favouritism other hardliners—the Lebanese Sldon controlled by Hr Yassir towards his followers from forces on March 12 last year Arafat’s Fatah organisation. “ northern Lebanon. The old reduced Abu Nader from militia Yesterday it was the turn of crew felt it was set aside and commander to a minor player. the Abu Husa group, a break- that Mr Geagea's men were The assassination bid against away from Fatah responsible profiting by being appointed him. yesterday could have been for a number of recent to key posts and jobs,” one a counterstrike or the work of terrorist incidents in Israel militia source said. elements seeking to exploit stir- and abroad. K The Phalange Party, led by facing Christian differences, one A spokesman for the Israeli its new President. George observer said In East Beirut. Defence Forces said no Syrian missiles had been fired yesterday at tbe Israeli is airline hit ammuni- one fighters, which There Treaty brings China tion and weapons damps at vVe'rebigenough two positions west of the town & of Baalbeck. All the aircraft and Soviet Union closer were said to have retained thatuses Schiphol A Pu. safely. ina ni ROBERT THOMSON IN PEKING BY Tbe spokesman said the CHINA and the Soviet Union tions remain to be scaled: raid was not intended as any have edged a little closer in Soviet support for the Vietna- sort of political message to morethanwedo. their cautious courtship follow- mese occupation of Kampuchea; tbe Syrians. Israel, he said, ing the signing of a consular the mass of Soviet troops on had already made elear to treaty between Peking and Mon- the. Chinese border; and the Syria through diplomatic that it no inten- golia, which is regarded by dip- Soviet invasion of Afghan istan . channels had The Chinese regard the first tion of escalating the confron- lomats here as a part-satellite You may be surprised by this modest statement. But We could go on throwing facts at you, but you've and part-puppet of Moscow. obstacle as the most important tation between the two and the last as the least countries. it's a fact: Only the Dutch airlines have more flights in probably got the already. Air offers the The agreement at the week- message UK significant. But he confirmed that it follows the Vladivostok and out of Amsterdam than Air UK. business traveller route end China and the Soviet Union was the first time' Israeli air- a comprehensive network velvet glove extended by Mr fen out just over 25 years ago craft bad attacked targets in which, together with our record of punctuality, ensure Mikhail Gorbachev, the Soviet what was described as the because of profound political another fact that may surprise you: British leader, who said during a visit The hostile environment of the Here's you're in the right place at the right time. weeks and military differences. to the Soviet port two breakdown was highlighted by Beka’a Valley since the with- Airways is the only British airline to carry more that Moscow could withdraw ago tbe removal of Soviet advisers drawal of mobile missile bat- So whenever you're travelling to Amsterdam fly of its scheduled passengers than Air UK between regional a “substantial -part” in china and an increase in teries which tbe Syrians Slno-Mongolian Air UK and avoid the crowding and complexity’ of troops on the . border tension that resulted in introduced Into the region airports throughout the UK and Europe- border, last December. Britain's fighting in 1969. major airports. The timing of the attack China and Mongolia had not _ Interestingly, some Soviet c had a consular treaty since advisers have returned here in was said to have been dictated Air UK is the largest scheduled user of Your Travel Agent has the details or vou can telephone sU»t purely by the availability of establishing relations in 1949, the past year and Moscow has _ accurate intelligence informa- Stansted Airport. Air UK on (0603) 442S8 or Prestel 60647. the year Communist rule' began indicated that it is prepared to tion and “optimal operational here, and diplomats are certain send specialists to help reno- conditions.” While Katyusha that the signing ceremony In vate the factories built with rocket attacks have been tbe Mongolian capital of Ulan Soviet assistance in tbe 1950s. launched against northern Bator was used by Chinese Even though there has been Israel over the past few days, test the depth of a substantial improvement in officials to no large-scale guerrilla attack Soviet sincerity, economic relations, Peking has has taken place. Peking has stHL to make up been irritated by Moscow's ten- its mind on Gorbachev's recent dency to talk-up the improve- speech and his long-term inten- ment and was particularly tions. Certainly,. the Chinese piqued by the Soviet suggestion Supertanker set have found him more inclined earlier, this year of a summit bis proces- between the countries' leaders. to friendship than ablaze - in Gulf Bigenoughtomeanbusiness. sors, but they are not quite sure Peking’s position Is that the Greek-registered super- whether it is a public relations time is not ripe for a top-level A was set ablaze by an job or a genuine attempt to im- meeting and it considers that tanker helicopter attack in prove relation*. the Soviet Union should have Iranian ... yesterday, rhinos* official? have indi- known better than to put China tbe southern Gulf the only moments after it had cated to diplomats that they con- on tiie defensive by making been intercepted by an sider Moscow is trying to defuse summit proposal, which diplo- think was as much aimed Iranian patrol boat, shipping its foreign policy problems so mats sources said. Reuter reports it can concentrate on at annoying the US as courting that Bahrain. Flights from: ABERDEEN, AMSTERDAM, BELFAST, BERGEN. BRUSSELS. COPENHAGEN. EDINBURGH. EXETER, GLASGOW, GUERNSEY. HUMBERSIDE domestic policy, so they con- China. from curious Tbe 357,000-deadweight- lEEDS/BRADFORD, LONDON HEATHROW, LONDON STANSTED, NEWCASTLE, NORWICH, PARIS. SOUTHAMPTON. STAVANGER, TEESSIDE sider better ties are not the But China is about JERSEY, give tonne Olympia Spirit carry- base motive for the recent over- Moscow's move to way on Amur River, which ing a foil cargo of Saudi tures. the disputed crude oil, was first China’s Foreign Ministry forms a 194 kilometre segment Arabian But Interrogated over radio by studying, the Vladi- of. the Sino-Soviet border. Mr says it is the patrol south-east of Iranis vostok speech and has “taken Gorbachev said that the border Abu Musa island. Five note ” of the .proposal to reduce “could pass along the main ” minutes later the helicopter numbers in Mongolia. Channel of the' Amur, a posi- troop launched its attack No However, the ministry stresses tion that Peking has been years. casualties were reported. that ” three obstacles " to rela- pushing in recent
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Financial Times Tuesday August 12 1986 AMERICAN NEWS
Senate tries to Murdoch works to realise a US television dream
programming; arid they point estab- ward, and most importantly, to pick fun at such tame targets Fox trill not say much about FOR YEARS, US broadcasting proposed network was that the big network Royalty (Prince its other programming plans, out news entrepreneurs have dreamt of lished in the two opportunistic they appear to have carried it as British - be organisations ate steadily establishing a fourth television over the above a magic figure for adver- Charles's ears) or Hollywood except that it is aiming to clear key issues acquisitions finalised lasing market share u a group, network, an organisation to 12 gave the tisers Fox claims that it can starlets (lovely, therefore transmitting ten hours a week past months. These — partly because local companies compete with the likes of CBS, Fox Film, now reach nearly 80 per cent of dumb). by next March, and that its new publisher control of have Improved their coverage. NBC and ABC. Mr Rupert Hollywood production the nation's 85.9m households Ms Rivers is a well-estab- affiliate stations are committed the In the old days, the networks Murdoch, the Australian-born studio, and six television with television sets, against the lished star, so the risk in using to taking all it produces. Two held the key to broad, nation- publisher, is now dreaming the by the Metro- 70 per cent normally regarded her as the spearhead in the hours of these programmes are before recess stations owned wide and international cover- same dream, and bit by bit he media broadcasting group. expected to be in prime-time viewing on Saturdays, three age, because of the* heavy is creating a launching pad to meant access to a film and BY REGINALD DALE. US EDITOR, IN WASHINGTON Fox resources such news-gathering realise it. library, new films and pro- hours on Sundays, including entailed. Today, local stations increasingly “legislative gridlock" Metro- Terry Dodsworth situation comedies, drama and WITH CONGRESS break the The US authorities have no gramming facilities. easily buy in news end movies. About $150m, it says, can more frantic to get away on holiday, that often develops at the hard and fast definition of what media brought in six TV and can themselves sessions. Apart of reports on moves by has been committed to these items, the US Senate is attempting to' of congressional constitutes a network. The stations beaming into some international - reach out to bludgeon itself into voting on from South Africa and Federal Communications the most populous markets in developments. Com- coverage using their own two Intensely controversial Nicaragua, the Senate has still mission, which regulates broad- the country—New York. Los Australian-bom One item is, of course, glar- missing master mobile satellite transmitters. issues—South African sanctions to vote on the nomination of casting and keeps a particular Angeles, Chicago, Washington, ingly from this as On the other hand, if is diffi- and aid to Nicaragua's Contra two Supreme Court justices and eye out for monopolistic prac- Dallas and Houston. Mr Mur- publisher Rupert plan—there is no indication cult to conceive of a fully- rebels before the end of the work out an extension of the tices, licences only individual doch then took American yet what Hr Murdoch intends — Although fledged network without a news week. national debt limit with the stations and guards against citzenship in order to fulfil the Murdoch (right) to to do about news. exaggerate the operation. Indeed, there have The short time left before House of Representatives. exclusive territorial activity. legal requirements for owning the Press may element been suggestions that Mr Mur- recess is invitation to The House also faces three and running the stations. create the basis of importance of the news the an Networks are recognised in dock has made approaches to measures to of debate on the 1987 Another part of jigsaw to the networks, there is no opponents of both days its literature simply as organi- the in Turner Broad- that it is in many ways buy a stake use stalling tactics to delay Defence Spending Bill, which sations which broadcast regu- has been steadily pieced a US television denying primary big casting’s Cable News Netwotfc, voting until after Congress re- the Senate finished only at the larly for a “substantial part of together in the five months the focus of the broadcasting groups. news the independent news organisa- convenes on September 8. weekend, complete with a each broadcast day to television since the Metromedia deal was network to rival the The anchormen, than anything tion which now gives the net- While a group of Democrats laundry list of controversial stations in all parts of the US.” finalised. In a series of separate more anyone else, create the works a strong run for their has threatened to filibuster the amendments. Among them are In practice though, it is fairly agreements. Fox has signed country’s big national or identity the net- money; and even if he has not SlOOm (£67.9m) aid package for attempts to cut funds for the clear what a network must offer. contracts which bring a further special of and their popularity made such a move, the con- the Contras, individual Republi- MX intercontinental missile, First, it has to have access to 73 independent stations under broadcasting groups works, with the public are sensus seems to be that he. is cans, such as arch-conservative the B1 bomber and President programmes which it can its aegis for a period of up to ratings US closely watched probably laying down some Jesse Helms, have Ronald Reagan's Strategic supply to stations which it two years. Some of these belong among the most Senator careful plans already- deploy similar Defence Initiative. wither owns itself or to affiliates to substantial established groups figures in a nation drank with threatened to as essential by national offensive to establish the net- “ Murdoch," says an Austra- devices against South African Arms control advocates will which agree to take them. such as Taft Broadcasting of statistics. advertisers. work is limited, although cost analyst who follows' his also try to block spending on Second, has to have a large Cincinnati and Meredith of Des Mr Scott Sassa, the 27-year- lian sanctions. it companies, “ hag a habit of have now nuclear weapons that would number of outlets spread widely Moines. Altogether, Fox claims The next big challenge for may be another matter. The old vice president of network Party leaders being ahead of where everyone wheeled out a cumbersome pro- take the US beyond the limits across the country to give it that they give it natiopal Fox will be to demonstrate that show will be broadcast by management, says simply that “ else thinks be is. He tends to cedural contraption designed to of the unratified Salt 2 national reach. And third, it coverage. it can bold an aufiience against satellite at 11.00 pm for an hour Fox has no plans for news as the networks. As a first step from Monday to Friday, be able to pre-empt people’s it hurts if necessary. Strategic Arms Limitation has to be able to attract adver- By the standards of the big timing of now.” Some analysts have hit where perception of his tuning.” the senators cannot bring Treaty, which Mr Reagan tisers by convincing them that national broadcasting groups _ in this campaign, it is launch- which pitches it against local suggested that the company If There are plenty of people con- repudiated in May, unless the programmes it is producing which have around 200 stations ing a late-night chat show in news and Similar network may run for some time, or in- the obstructionists under the not least October to be hosted Joan shows. Putting entertain- all. around the world, Hr trol, they will simply have to Soviet Union also exceeded the will deliver the national audi- in their networks, Fox still has by up definitely, without news at Murdoch's former printers of go on talking through their limits. Another move will be ence which the advertisers some way to go. But the new Rivers, the acerbic, sometimes ment against news is regarded They argue that the biggest Iconoclastic, and deliberately as a strong “counter-program- independent The Times of London, who until they do. znade to delay spending on new want. agreements have dearly taken need of the ’ holidays Amen to that The scheme provides for chemical weapons, which the The core of Mr Murdoch's the company a giant leap for- vulgar comedienne who loves ming" in the industry. stations is for strong general would say discussion of both South Africa Senate approved last week. and Nicaragua, culminating in Meanwhile, a House/Senate votes to cut off debate on both conference hopes to complete issues tomorrow. That means its arduous negotiations on a Reagan considers tougher at least some members of each sweeping reform of the US tax Brazil faces energy crisis as demand booms party will have to vote to system by the end of the week. conference now muzzle their own colleagues. But with the BY IVO DAWNAY IN RIO DE JANEIRO Cuba If the so-called closure turning to the sharpjy disputed embargo against motions succeed, final votes on issue of corporate taxes, the BRAZIL IS facing a severe has been running dangerously to ban the reopening of the estimates that, at the turn of WASHINGTON both measures will be taken on negotiations could still get energy crisis that looks certain close to its maximum capacity plant until a programme .for the century, supply will need BY OUR US EDITOR IN debate goes on. bogged down. Even if a final brake emergency evacuation of the reach some Friday. If not, to force rationing on the coun- for many years but the to 104,000 Mw. PRESIDENT Ronald Reagan is Government-sponsored radio If one motion succeeds and not package is agreed, it would still try’s agricultural the economy brought about region has been drawn up. Part of could be industrial and on the problem considering a plan to toughen station, Radio Marti, the other, the whole deal is off. have to be sent back to both heartland next month. by the foreign debt crisis of As the growth in demand has solved if the Government could the US economic embargo on The proposed rules would The arrangement’s aim is to chambers for final approval. 1982 delayed the long expected surged, power technicians have bring the immense generating Surging demand in Sao Cuba to try to prod Havana limit payments to Cuba by forced to bring Paulo’s booming industrial belt, crisis. been on stream potential of the Itaipu Dam in poJi- into releasing long-term Cuban American families in the ' hydro-elec- This year, the consumer oil fired plants at an estimated the south-west on stream. At «!(,!: P combined with low tzcai prisoners, the White idea some US officials * boom brought about by the annual cost of some Cz 3bn us, an Argentine devaluation tricity generation levels brought present only four of the plant's House confirmed yesterday, have denounced as “ransom" have February economic adjustment (S22m). Even this will not be work- "5 * by droughts in the south, potential 18 turbines are The embargo dates from the payments for relatives wtXifng BY TIM COONE IN BUENOS AIRES already programme and the low water enough to meet needs as tech- combined to exacerbate ins early 1960s. to leave the Island. 'ilOv n! t acute strains on the power net- levels at key hydro-electricity nicians now estimate the energy ARGENTINE Government interest rates are still below the In June -the World Bonk Seakes, the presi- THE work. plants are set to overload the deficit at some 1.5m to 2m Mr Larry Administration officials said yesterday devalued the Austral monthly rate of inflation, which agreed a $500m loan for new spokesman, said a The region accounts for some system. To add to Electrobras's kilowatts. dentiai Cuba had also evaded the em> by 3.22 per cent and raised was 6.8 per cent in July. works. Two-thirds of this has tightening of the 60 per cent of total Brazilian problems, the country’s sole Scientists now complain that further bargo by obtaining US goods Interest rates in response to The devaluation points to a been allocated to set up distri- next demand on a national capacity working nuclear power plant at the Government has badly embargo would be “the through front organisations In last week's announcement of die change in heart by the Economy bution systems while the of 41.560 megawatts. Angra. about 150 km south of underestimated the growth in step" foUowing the breakdown foreign countries, and that the highest monthly inflation rate Ministry. Last Saturday Dr Jose remainder used for new- Rio de Janeiro, is out of action. demand. A report in June show- will be of talks on immigration issues rules would try to curb such Machinea, Deputy Economy After weeks of public warn- figures for over a year. Luis ing likely growth of about 6.5 generating capacity. between US and Cben officials activities, The Austral is now officially Minister, said an increase in the ings, Mr Mario Bhering, presi- The Angra 1 pressurised per cent a year represents only Electrobras is also nego- in Mexico City last month. At same time, the US valued at 0.96 US cents and base interest rate was “the only dent of the state holding com- water reactor, supplying about half the real figure, they claim. tiating loans with the World Washington had hoped the talks told it would like to rates on S0-day deposits have measure we can take in the pany, Electrobras, concluded 5 per cent of the southern ^ Cuba and the Inter-American would reinstate a 1984 hnmigra* send officials to Havana later increased from 4J2 per cent to short term " to ease Inflationary last week that rationing was region's demand, closed for Under the Government's Bank , Development Bank to try to tkm agreement which Havana this month to accelerate the 5.5 per cent a month—the pressure in the economy. He now inevitable from September temporary repairs and refuel- recently-announced plan, the budget. suspended last year in retatia* of current and highest since the introduction ruled out any sudden devalua- until November. “The situation ling in January. But the Cher- goal by the end of 1989 Is to raise its investment processing is against broadcasts to the former political prisoners who of the anti-inflation Austral tion but said the series of mini is about to explode,” he said. nobyl disaster in the Soviet lift capacity by some 32.5 per However, the state company tkm heavily burdened by debt Cuban population b a US want to emigrate to the US'. plan in June last year. But devaluations would continue. Electricity demand in Brazil Union, provoked a local judge cent to 57,500 Mw. Electrobras j y WORLD TRADE NEWS Pasta proves a sticky problem Japan trade GM and Suzuki near Significantly, the US commit- DIPLOMATS, trade officials and American complaints that the and more serious spiral of re- ment includes “ further even one or two journalists network of EEC trade pacts taliation which encouraged both to concluding deal preferences the EEC is prepared have for some days now been with Mediterranean countries sides this weekend to come to a to grant to (Meditteranean) willing the EEC and the US to such as Israel, Cyprus, compromise after several weeks countries under tire additional settle their so called “pasta war" Morocco and Tunisia discrimi- of tense negotiations. "The next protocols to these agreements so that the traditionally inactive nated against their citrus scenario could have been a now under negotiation "—a step monthly high on Canadian factory ' "silly season" in Brussels could exports to Europe (fresh sweet whole lot bloodier," a US official which the US negotiators were properly commence. oranges, fresh lemons, grape- said yesterday in an oblique By km Rodger in Tokyo m not prepared to take in earlier BY GRIFFITHS But as the full text of the fruits, tangerines etc). reference to an earlier Ameri- JOHN discussions. JAPAN’S TRADE surplus bit weekend agreement between Mr The issue came to a head can promise to step up its action a record monthly high of GENERAL MOTORS and but with significant local con- Clayton Yeutter, the US Trade during last year's negotiations if a successful outcome was not Some tough talking yet 98JE2bn July, Suzuki of Japan are expected tent Production is likely to Representative and Mr Willy remains, however, on pasta. Last (£5.6bn) In for the entry of Spain and reached by the beginning of the to announce later this month start in 1988-89. according to preliminary Annual capacity ' • de Clercq, the EEC External Re- Portugal to the Community, month and the well publicised year's extra duties on EEC figures published by the that they will build jointly a of at least 200.000 cars is pro- S' lations Commissioner, emerged under the terms of which the willingness of the EEC to pasta and the subsequent In- Ministry Finance. C8650m (£316m) plant in jected, with a workforce of Just yesterday it became dear that various Mediterranean agree- respond with counter-measures. creased tariffs on US walnuts of The volume of exports, Ontario, Canada, to produce under 3,000, and the cars would the sticky weight inducing sub- ments were renegotiated. and lemons will be removed as however, declined for the 200.000 or more small cars a be sold through both the GM stance is set to entangle trans- It was only to show its Community officials said that part of the deal but the difficult de Clercq •i+. fifth successive year. and Suzuki dealer networks. i- atlantic trade relations for some from their point of view the question of EEC “ refunds " or month, One of the last obstacles to Suzuki Canada has already time to come. main concessions made by the subsidies for pasta exports has suggesting that the rising yen July 1 1987 either party can the venture, which has been announced that it is to build a The accord between Mr Dickson reports US concerned tariffs on EEC not been resolved. has been having a significant Yeutter Clercq. Tim terminate the agreement impact on exports. The under negotiation for well over new headquarters, also on the and Mr de cheese, olives, olive oil and The Yeatter/de Clercq state- There are, meanwhile, one or volume index in July was 1.1 a year between Suzuki and outskirts of Toronto. which still has to be ratified by on the issues paprika. They estimate that the ment this weekend referred to two political hurdles to General Motors of Canada has EEC member states, certainly cheese liberalisation measures, “ EEC per cent lower than in July Of three potential sites under- a modus operandi for reaching resolved represents an liistoric break- still to be resolved jump. Representatives of mem- 1985. been In the form of stood expected for October or early a prompt and mutually satis- to have been under con- through. It provides for the represent ber states were being briefed These figures, which are on an agreement between Canada sideration, November, could factory solution ” but this form the favourite is now unscrambling of various retali- in a transatlantic on the details of the agreement a customs clearance basis and Japan under which SlOm of extra Community of words disguises the gap thought to be IngersoU, a few atory moves taken on both sides last night and will have to and are not seasonally Japanese manufacturers are to miles trade dispute business. between the two sides. from Toronto. , allowed when the dispute was stepped decide whether to push ahead adjusted, are often subjected be to ship an extra The increase in Japanese car up last November; and it com- Analysing the various tariff quickly with dismantling last to considerable revision, but 36.000 cars to Canada in the The basic problem is that the imports will lift their Canadian mits both parties to some signi- displeasure with the citrus reductions on the range of pro- November's barriers — some- are usually reliable Indicators year ending next March. size of the Community subsidy market share by about 3 per ficant measures to liberalise situation that the US last ducts brought into the agree- ; thing which could be achieved of trends. Just under half the extra has increased as a proportion cent, to about 21 per cent. trade between the two blocs, November decided to raise its ment, however, was described without the formal agreement The value of exports in allocation is to go to Suzuki. of the pasta price, both because Toyota and Honda, who are notably through easing access to import duties on EEC pasta, a by a Commission spokesman of Ministers through the so- dollar terms rase to a record This will lift its imports to setting up their of currency movements and a “ own assembly European markets for US citrus move to which the Community last night as “trying to com- called written procedure." $18.87bn In July, 23L4 per around 20,000 this year, plants fall in the cost in Canada, are to share , of the main raw producers and opening up more immediately responded by pare apples and pears.” 1 The entire text of the cent higher than in July compared with 3,000 last year. material. Spurred on by the 11,000 of the extra allocation, opportunities for ( among other imposing heavier penalties on accord, however, will need to 1985, while the value The import agreement, pleadings of the US pasta lobby, of made with the remainder divided products) EEC cheeses, olives US walnuts and fresh lemons. A key element in the Yeutter/ be approved by next month’s Imports, oa a df basis, was at official level, has the Americans have been yet to be between five other Japanese and olive oil. Figures disclosed the de Clercq outline agreement is meeting of foreign affairs dawn 04 per cent to ratified by each country’s manufacturers. by demanding a cut in the EEC Ironically, though, the pasta Commission yesterday showed an express US commitment not " ministers in Brussels—some- $10.65bn. cabinet But this is expected pasta " refund — a concession The GM-Suzuki venture Is problem which latterly at any that pasta sales the to challenge the EEC’s Mediter- thing which is not necessarily Exports to the US were up to be a formality. EEC in US which with the Italians particu- being undertaken against the rate gave its name to the fell by around 28 per cent in ranean agreements under the a foregone conclusion. 28.5 per cent to S7.5bn on the The extra cars larly in mind has not been represent a 17 background of mounting resent- dispute, is the one issue which . General Agreement on Tariffs strength of shipments of the first five months of 1986 — granted the Citrus producing countries per cent increase over the ment by Community. j within GM*s Canadian still remains largely unresolved. and Trade and not to ask for office equipment, semiconduc- but US walnuts and lemon like Spain and Portugal will be 204.000 Japanese cars admitted subsidiary about “ “ , the pressures Pasta war " has always sales to the Community plunged additional claims " in return The two sides, however, have tors and cars. I last year carefully analysing the week- under Japanese- being placed on the 1.1m cars a colourful Imports . been a catch phrase by 85 per cent over the same for the preferential treatment given themselves almost 12 end package for evidence that from the US Canadian “voluntary” restraint year for a disagreement which on various products conceded | jumped 39 per cent Canadian market by other . to £L9faa, period. months to find a solution. If the Commission has exceeded arrangements. Japanese car and ; makers originally stemmed from It was the threat of a further by the Community they are not successful by its negotiating brief. Neither GM nor Suzuki, in Hyundai of South Korea. which GM has a 5.3 per cent Some GM executives privately Sudan and stake, so far have provided claim that neither the Honda formally any details on the nor Toyota plants will areata Washington waves the stick Libya sign plant, its likely location or jobs in the Canadian motor big at Taipei over trade products. industry, on the grounds that However, it is expected that their cars will be assembled BY ROBERT KING IN TA1PH trade agreement the venture will produce a small almost entirely -from imported car based on an Xsuzu design. US patience with Taiwan's tion tables rather than the tariff reductions so small as to Taiwan maintains that these of the tobacco and wine By John Hurray Brown in kits. trading practices appears to be declared price of imports when be meaningless. measures are needed because it monopoly, the largest single Khartoum running out. Years of favour- calculating duties. The US The surplus has become a is still a developing nation. source of government revenue, able treatment by the US have maintains that such SUDAN and Libya have a table rallying point among US What Taiwan, it seems, fails agreed to lift a long-standing failed to impress one simple inflates the price signed a 860m trade agree- of imported Congressmen confronting to understand, however, is the ban on imports of American Foreign groups point on Taipei: fairness, ment, Sudanese Commerce targeted goods, making them non-com- voters who perceive that public relations potential of im- tobacco, wine and beer, rather than parity, makes petitive Minister Hr Abu Harlra the in the Taiwan market American jobs are being lost to plementing proposals from such Ur Reagan lavishly praised trading world go round. Taiwan also fared less well announced yesterday. inexpensive Imports from nations as the US which import the Taiwanese action in spite of The in US sanctions Patience in the US baa given than South Korea and Hong huge quantities the agreement concluded bill developing countries. of goods from fact that the new imports during the way to threats of harsh bilateral recent visit of penal- Kong in recent talks Most visible Taiwan, often through American would do little to reduce the BY NANCY among these Sudan's Prime Minister Mr DUNNE IN WASHINGTON ties as the Reagan Administra- on textiles- US officials said countries are subsidiaries which originally American deficit Taiwan's Taiwan itself. Sadiq el Mahdl to Libya tion. a strong ideological sup- Taiwan was permitted export South went to Taiwan SENATE republicans seeking order Korea and Hong Kong. because of low citizens are not wine drinkers; comes amid Increased specu- import restrictions against porter of the island, finds growth rate below those of the wages and high productivity. sanctions against South Africa those Taiwan is the most vulnerable US beers do not go down well lation that a similar companies under Section itself faced with increasing other major Asian producers trade have fashioned one little-noticed politically because the country When President Reagan sug- with local drinkers; and deal with 301 of US trade law. protectionist sentiment at home because of Taipei's high import Egypt has come enforcement tool in the no longer enjoys full diplomatic gests a change in tariff American cigarettes are already unstuck. bill to The sanctions legislation and scant evidence of good tariffs on US textiles. The relations with structures or an be debated this week on the approved by most major improvement of available almost anywhere on Earlier reports that the the Senate foreign faith on the Taiwanese side agreement with Taiwan will Senate floor. relations countries, including the US. access he is not demaTirfir.g that the island. 5160m agreement with Cairo committee would ban that would allow it to forgo allow only a 0.5 per cent High tariffs and Taiwan's industry me import outright bans cave in in Even In this case, Taiwan had been cancelled were yes- The legislation oontains presi- of uranium, coal and wielding the big stick- growth a year for the three still protect favour of steel, Taiwan's industries US imports. managed to drop the public terday denied by one Com- dential authority to retaliate revoke landing rights- for President Ronald Reagan was years to 1988 of Taiwan textile South in spite of the fact that Taiwan- He is suggesting that Taiwan relations ball by insisting that merce Ministry pp#iai- against any foreign company African Airways, Mr new forced to show that stick a exports to the US. ese exports the token *®ans are being sold in makes gestures that the US goods be marked up by Hhwever it appears seeking to profit from sanc- to the South African week ago when he invoked a True, Taiwan has pledged all US foreign markets for one-third would allow him to face the something like 185 per cent exports to Egypt tions. Government and limit vEsas to against have been section 301 action Tai- from time to time to cut tariffs to one-half the price charged electorate and an increasingly Meeting between Taiwanese suspended. South Africa. Under the bill, unfair wan after Taipei allowed a on various items as a way to for similar products Taiwan hostile Congress with evidence and trade Restrictions, in US negotiators will give “We want Egypt to make cases could be brought imposed last year July 1 deadline to pass for reduce the continuing high itself. In substantive against by addition, foreign of progress towards Taiwan a chance to salvage up a 8120m trade deficit those President Reagan and expec- trade surplus last by companies which do not implementation of with the US, which banks and service organisations trade liberalisation. what it can but it will be only increasing ted to be renewed, banned its exports to comply with US restrictions. measures agreed almost eight year reached SlObn and could are still dogged President Reagan If exports by antiquarian thought he a vestige of what might have Sudaa,” the official said. the International of computers or related years ago. exceed $12bn this year. Taiwan, rules that found such Trade Com- softwear give their local had an opportunity been gained if Taiwan had October had been set as a mission to South African required on finds that foreign com- . Those measures however, has often reneged counterparts last year when the Taiwanese initially government the competitive adopted a different deadline for resolving the dis- pames have agencies. : end valua- violated the sanc- Taiwan to the use of those commitments or enacted edge. authorities, over the objections attitude to the issues. pute. .Other restrictions will tfe* tions, the President can then he. bated on the Senate floor
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Financial Times Tuesday August 12 1986 UK NEWS Sharp drop in Paisley TSB group remains Alleged insider dealing cases denies on for still awaiting investigation s raw course threat to BY NICK BUNKER September flotation TEN cases of suspected insider Bill in March, Mr Anthony Nelson, iations and greater speculative ac- dealing in company securities have a Conservative MP, pointed out that tivity in the market. not yet been investigated by the De- been only a handful of Staff in tbe exchange's surveil- material costs leadership BY MICHAEL CASSELL, POLITICAL CORRESPONDENT there had partment of Trade and Industry > seditions since insider dealing lance division then examined 108 BY GEORGE GRAHAM although they were referred By Hugh Camegy in Belfast THE GOVERNMENT yesterday de- the Treasury calling for the flota- (DTI), a criminal offence in 19R0 price movements to see if further fended its last year by the London Stock Ex- study was needed. BRITISH controversial decision to tion to be abandoned, Mr Stewart Only 35 cases INDUSTRY'S fuel and 58T miMuSTtar THE REV Ian Paisley yesterday de- In the last six years, evidence on go ahead with the proposed stock said the Lords’ ruling had been mis- change to the DTL were then investigated in detail, raw-material costs fell sharply last 94 cases has been submitted to the ^KWh nied that his leadership of Northern market flotation of the group, That has emerged after news of a compared with 48 in 1984-85. TSB interpreted and did not imply that month raising hopes that mfiatfon DTI by according to OUTPUT Ireland's Democratic Unionist Par- the exchange, fY ! J which comprises the assets of the the TSBs belonged to the Govern- big increase in the number of suspi- The report said one recent inqui- might still slow down -further. the annual report of the exchange's VlL™^ 1 ty (DUP) was under threat and sig- UK’s four trustee savings banks. cious share-price movements scruti- ry involved more than 1,000 share ment While it found that Fuel prices the banks dropped by 5J5 per nalled Ids intention to accompany quotations department There have The proposed flotation, planned and their assets belonged to the nised by the exchange's quotations transactions and 38 interviews with cent in July while other raw materi- been only five prosecutions by the Mr Peter Robinson, his deputy, if for next month, has come under in- state, Mr Stewart emphasised that department in the year to March 31. stock-exchange member firms, mer- als also drained in price by JL5 per he goes to the Irish Republic DTI and three convictions. on creasing criticism since the House there was an important legal dis- The DTI said it was still examin- chant banks, fund managers and cent, the Department of Tfcade and fa™» Thursday to criminal charges. of Lords ruled this month that the tinction between the Government ing the exchange's evidence on the Quotations department staff at other parties. No evidence of insid- Industry said yesterday. That cut He added that if it was decided assets of the banks belonged, until or the Grown, and the state. cases passed to it but had not start- the stock exchange last year dis- er dealing was found. total inpot costs by 3.4 per cent in that Mr Robinson should go despite 1985, to the state. Mr Stewart said that at the time ed its own inquiries. cussed 811 unexplained price move- Under the 1985 company Securi- the month -and left 9.8 per the security risk to Dundalk, a bor- Since Conservative backbench MPs ments with brokers ties (Insider Dealing) is 4aJ- WPUTPRtCES : the TSB White Paper (poli- the Government was drawing up for the compa- Act, it a cent lower than a year earlier. der town with as a reputation a cy document) in 1984, the Treasury the 1984 White Paper it was well hove recently expressed concern nies involved - nearly double the criminal offence to moke improper Manufacturers have not passed stronghold of the Irish Republican has claimed that the flotation does aware of the “curious and unique” over the DTTs record in investigat- 1984-85 figure of 411. It said the in- use of confidential price-sensitive those lower costs on to consumers, PRODUCER V Army, then other Protestants not represent a privatisation be- background of the banks. It had ing inside [^dealing cases. During crease was because of improved information to deal in company se- however, but have instead in- PRICES follow. should That prospect would cause there is no dear owner of the concluded that they should be given debates on the Financial Services procedures for following price var- curities. creased their profit margins and iosd- confront the Irish police with a banks. The Lords' decision pro- a new structure with dear owner- wage payments to their workers. huge security problem. voked a wave of criticism from the ship and accountability for the fu- Output prices of manufactured Speaking to reporters immediate- Labour Party and from some TSB ture. An offer for sale of shares had, products rose by OJ per cent in July manufactnrers saw their raw-mate- ly after returning from the US, Mr members, who said the Govern- therefore, been agreed. Alliance urges constitutional reforms to stand 4.4 per cent higher thaw a rial costs drop 2-75 per cent in by Paisley said the province was "at ment was handing over to specula- Mr Stewart said that the assets of year earlier, compared with4J5 per July while their fuel costs fell by IL8 the doors” of dyil war. tors the group's estimated Clbn in the TSBs did to • - not belong the Gov- POLITICAL “• cent in June. percent BY RACHAEL CASSELL, CORRESPONDENT kC’ But he denied he had cut short surplus assets. ernment and neither did they repre- The annual rise the lowest In industries that depend was some his trip because of events at home. The decision and the uncertain- sent taxpayers' money. As a result, THE SDP-Liberal Alliance yester- statement which will form in Britain than from any for producers? output prices since oil-related for The down oth- heavily on products said ties arising it caused He he always intended to be from have it would be wrong for them to be di- called the the current series nmrtwiaT^ fan* day for wide-ranging consti- basis for an Alliance campaign er EEC country, she added. of statistics has their raw the m in- present at today’s annual Appren- some embarrassment for the Gov- verted to the Exchequer. Instead, tutional reforms designed to over- in the autumn, says a series of xnea-. * *:t been compiled, but still stands well sharper. put costs have been even tice Boys parade in Londonderry, ernment but yesterday Mr Ian Ste- the Government had proposed and "People in Power," a statement turn what it describes as the "high- sures are urgently required to pro- " above the general rate of inflation The chemical industry's raw-mate- by Mrs Williams and Des Wil- i one of toe events of Northern wart, Economic Secretary to the Parliament Mr main had agreed that the ly centralised, secretive and unre- vide tbe British people with the con- recorded by the Retail Price Index, rial costsin July were per cent 19 Ireland's summer ‘'marching sea- Treasury, said the flotation would banks should be allowed to keep son, president of the Liberal Party, annual sponsive nature of government in stitutional rights available in most which showed an increse of lower than a year earlier, while pro- son." ahead as planned. attacks both the other main politi- go their reserves, to which would be Britain." Western 2J> per cent in June. other democracies. ducers of artificial fibres had costs Questions raised about In a letter to Mr James Ross, a cal parties for failing to embark on have been added fresh capital subscribed by In 5,000-word joint statement Shirley Williams, president The July Retail Price inrW jg to time. a Mrs 13 per cent lower. At the same Mr Paisley’s position after the TSB depositor who had written to new shareholders. constitutional reform. haw hpfrw aimed at strengthening the rights of the SDP, said a -quarter of all be published on Friday, and many Sines prominent part played Mr Rob- by of ftp Individual wnrt "returning cases concerning civil liberties go- The statement commits the Alli- forecasters expect little change in able to raise product prices by 6.7 inson, MP for East Belfast, in an in- LTSfOag power to the people," the two par- ing before the European Commis- ance to electoral reform and a sys- prices. Because the index fefl by 0.2 percent cursion into the Irish border town ties claim that there is mounting sion of Human Rights emanated tem of proportional representation per cent in July last year, however, Companies using fewer raw com- of Qontforet last week by hard-line in a for aU local, national and European modities have benefited less from Credit business surges concern about the steady erosion of from Britain. More cases ended prices would have to have fallen Protestants intent on defending the civil liberties in Britain. ruling against judgments handed parliamentary elections in Britain. st again to bringdown annaal lower input prices. Car manufactur- Cuba the rate union with Britain. BY OUR ECONOMIC STAFF of inflation. ers, for example, bad input prices w»nt higher than With Mr Robinson at his side, Mr Much of the July fell - in input 15 per hi July a Paisley was dearly concerned to CONSUMERS TOOK out more for credit cards have been pub- costs stemmed from cheaper ad and year earlier. They have, however, show that he was in charge. In fam- than £25ba of new credit in June, lished only January. NOTICE OF REDEMPTION petrol, but lower costs were also re- succeeded in raising their own iliar rhetoric, he repeatedly at- the Department of Trade and In- corded for food materials. ' Food prices fay 7 per cent over the period. Finance houses advanced £82lm tacked the British and Irish govern- dustry (DTI), said yesterday. Bank on fixed-sum agreements, mostly ments and called for the abandon- credit cards accounted for the bulk hire purchase, which left second- AKTIEBOLAGET VOLVO ment of the Anglo-Irish agreement, of the new advances, which took the quarter advances 3 per cent lower which gives the Republic a voice in total of outstanding credit to U.S. $25,000,000.00 per cent Bonds due 1987 than the previous three-month peri- 8 Shell increase halts Northern Ireland’s affairs. £22.1 bn. 7p od at £251bn. Compared with the Mr Paisley reaffirmed his back- New advances on bank credit NOTICE IS HEREBY GIVEN pursuant to the Terms and Conditionsof the above mentioned Bonds. The principal second quarter of 1985, however, for Fund ing for the march into Clontibret, cards amounted to £1.08bn in June, amount of U.S. Dollars 2,520,000 has been Drawn for Redemption on September 1, 1966 Sinking advances were 29 per cent higher. at per cent of Principal amount thereof. The following is a list of the Bonds to be redeemed slide in petrol prices when Mr Robinson was arrested the DTI said, bringing the total for purposes 100 the therewith: and subsequently charged with in- the second quarter of 1986 to Running account advances fay fi- BY LUCY KELLAWAY juring tWO policemen, damaging a £3.1bn. That was 12 per cent higher nance houses were £2G0m in June (U.S. Dollars 1,000 Bonds to be redeemed) police car, and unlawful assembly. than in the first quarter. Statistics and £787m in the second quarter. THE STEADY downward drift in January bad gone too far, and said 1 B29 1370 1966 2338 3568 4591 SOTS 5996 6870 9550 13880 18108 16915 17323 18188 16530 188*2 18119 *584 8073 8874 9553 13882 lblll 16918 17326 1BIB0 18533 1BB44 19121 petrol prices over, the last tew it was making losses on most of its G 832 1397 1959 2341 3591 5081 7 838 1399 i960 2343 3801 4597 5083 6075 8884 9558 13885 16114 16920 17329 18193 18535 188*6 19123 months was reversed yesterday commercial and retail product sales 12 842 1401 1969 2345 3630 4599 5085 6077 6900 9559 13886 16117 16023 17331 18195 18539 188*6 19125 20 844 1403 1971 2347 3632 4601 5088 6241 6861 9561 13891 18119 16925 17334 18198 1BS41 18851 1B127 when Shell added about 7p a gallon at present levels. 22 846 1405 1973 2350 3634 4604 5091 62*3 6064 9584 13894 16127 16927 17337 18201 165*5 18853 19123 185*8 18855 19131 to pump juices, to bring them to an Other col companies yesterday Money brokers given early start 25 648 1407 1975 2353 3636 4607 5094 62*5 8967 9567 13897 18123 16929 173*0 18203 28 851 1409 1977 2355 3839 4609 5096 6347 0970 9569 13899 16125 16831 17342 18205 1B55I 18857 19133 average of 164p, described Shell's action as cautious. 32 853 1411 1981 2358 3642 4611 5098 6M9 6073 9571 14002 18128 16833 17344 18207 16553 18859 19135 4613 0574 14004 16131 16935 17347 18209 18555 18861 19137 rise BY OUR 38 855 1413 1993 7360 3653 5103 6316 6975 Shell's move is likely to be They had expected a of be- FINANCIAL STAFF 40 857 1415 19BS 2383 3665 4815 5106 6318 6977 9576 14006 16134 16939 17349 18712 18557 18863 10139 and said that if 42 8S0 1418 1987 2305 3656 4617 5109 6320 6981 9500 14008 16136 16841 173S1 1B214 18559 18865 19141 matched today and .tomorrow by tween lOp and 15p THk RANK nf England has granted broking firms. To do so, they re- bank, began operations yesterday 46 862 1421 1989 2388 3661 4619 5111 6323 6984 9591 14010 18139 16944 1735* 1B21B 16581 18867 19143 other major oil rawnpsnfag, some of the 7p increase stuck, a further rise 50 664 1424 1991 2370 3664 4621 5114 6326 8987 9593 14012 161*1 169*8 17356 18218 10563 1B8S9 19145 special dispensations to three quire recognition from the Bank. however in the gilts, equities and 52 868 1430 2005 2376 368$ 4623 51 IT 6329 6090 9598 14014 16143 16951 173S9 18220 19565 18871 19147 which have already dearly indicat- could be expected in the next tew 17361 18223 18568 18873 19149 banks awl securities houses to al- Tim Bank's intention has been to Bulldog stocks markets. SB 872 1433 2007 2379 3689 4626 5120 6331 6992 9598 14016 161*5 16953 ed their intention, to push prices weeks. 62 878 7*35 2009 2391 3691 4629 5741 6333 6995 9601 14018 76148 15855 1736* 18226 18570 1M78 19J52 low them to begin operating as recognise from October 27 three • Johnson Mattbey Bankers 66 900 1439 2011 2390 3694 4631 5144 6335 6997 960* 14021 16150 16956 17366 18229 18573 10678 1B15* higher. The increase corses exactly is aiming to stamp out re- 09 901 1488 2028 2394 3696 4634 5146 6338 6999 9607 14024 1B153 17366 18233 1BS76 18800 10156 Stock Exchange money brokers new money brokers - Lazard Mon- (JMB), the bank rescued from col- 17571 19578 after Opee ministers agreed cent price discounting and to res- 108 903 1476 2031 2467 3717 4636 5148 6341 7002 9670 14026 16155 16963 1B235 1B082 19150 a week n2 1478 2037 2473 3721 4838 5156 6343 7004 961* 14029 16158 16965 17573 18238 18581 10804 19160 nearly three months in advance of ey Broking, King and Shaxson, and lapse fay the Bank of England in 905 to cut ofl production. ^That raised tore prices uniformly to about 164p 119 907 1480 2041 2475 3725 4641 5150 6345 7006 9618 14031 16180 16968 17576 182*0 18584 leeea 19162 October 2Ts Big Bang deregulation Prudential-Bache - in addition to September 1984, has been renamed 131 903 1488 2043 2496 3730 4644 5181 6347 7008 9620 1*033 16172 16971 17578 18244 18586 10600 19164 crude prices from, under $10 a bar- a ffiflnn. 134 Oil 1480 2045 2498 3748 4847 5163 6350 7010 10091 14035 16174 16975 17*00 18247 18588 10890 19166 of the City of the six existing money brokers, Mfeories Finance Ltd. Westpac -** ! ' • - London. 138 913 1463 2048 2500 3844 4640 5170 6353 7012 10094 14038 16176 16077 17582 182<9 18591 10092 19160 rdto about SIS. y- ? -That would 'mean large price Money brokers assist stockjob- which include James Cape], Hoare Banking Corporation, the Austral- 143 915 1496 2061 2525 3860 4651 5173 6355 7D14 10096 14041 16163 18900 17585 18251 1859* 1BHM 19170 However, Shell said the recent rises in areas of the UK where 146 916 1499 2064 2528 3994 4654 5176 6358 7016 10098 14044 16195 16984 17587 18253 18597 10896 19172 bers in the London market by ar- Govett and Rowe and Pitman. ian bank, acquired JMRs name and 150 920 1504 2068 2530 3996 *657 5176 K*T 7018 10100 14046 16201 16986 17590 18255 18601 16890 19174 rise in crude prices was not the rea- competition has been greatest At 4650 ranging loans of securities to en- Lazard Money Broking, part of core business from the Bank this 152 923 1506 2083 2533 3999 5237 6370 7020 10102 1404B 1620* 16988 17505 18258 18603 18900 19176 son for the increase, ft complained IMp, companies willprobably make 156 925 1506 2085 2538 4001 4661 5250 6372 7023 10104 14050 16206 16991 17597 18261 18606 18902 1917B able them to settle bargains with Lazard Brothers, the merchant year. 162 927 1510 2089 2539 4003 4663 5255 6374 7027 10706 14052 16208 16994 17599 18263 18608 18904 19100 mki that the fell in petrol prices since a comfortable return. 167 920 1513 2091 2541 4005 466P 5258 6376 7030 10108 15027 16210 16996 17713 18265 18611 10906 19182 172 931 1515 2094 2544 4008 4669 5MO 6379 7032 10HD 1S07J 16212 16998 17720 18268 1061* 16908 19134 17S 933 1521 2097 2546 4011 4671 5v62 6381 7034 10H2 15031 16214 17002 17722 18271 10616 10910 19186 178 935 1534 2099 2546 4014 4674 5268 6384 7036 10114 15033 16216 17004 17724 18273 18618 10912 19188 FT 182 938 1531 2101 2560 4015 4676 5271 6387 TOM 1011b 15036 1{E*9 17007 17727 18276 1B631 18914 19190 COMMERCIAL LAW REPORT 188 941 1533 2104 2603 4018 4679 5273 6389 7041 10254 15038 16222 17000 17730 18279 18623 18916 19192 190 943 1540 2107 2806 40*2 4681 5275 6391 7M3 10256 15040 16225 17011 17733 16282 18626 10919 19194 deu! 192 946 15*2 2109 2610 *0*5 4684 5277 6393 7046 10284 15043 16227 17013 17735 19285 10620 10920 19196 g 196 981 1544 2111 2613 40*8 4688 52B0 6385 7049 10287 15047 16230 17015 17738 18298 18631 10922 19198 200 970 1547 2113 2617 4051 46BB 5282 6397 7083 10290 15049 16233 17017 177*0 1B290 18633 >0925 19200 401 978 1568 2115 2619 4054 4691 5267 6390 7066 10292 15051 16236 17020 177*2 18292 18635 10927 19202 404 099 1571 2120 2621 4057 4694 £269 6401 7068 10295 15053 16238 1702? 17744 18295 16637 10929 19504 Enforced share transfer is not unfair 408 1001 1573 2123 2624 4059 4696 5292 6«03 7071 10297 15056 16241 17024 177*6 1B1-99 10839 18931 19506 i facte 412 1004 1576 2126 2627 4061 4698 5308 6406 7074 1 1331 15058 16243 17026 17749 18300 18641 1B933 19200 418 1006 1579 2128 2728 4063 4700 53H 6409 7078 1 1333 15060 16245 17026 17751 >8302 106*3 10935 19014 RE XY2 LTD. Chancery Division: Mr Justice Hoffmann: July 29, 1986 422 1008 1581 2130 2731 4066 4703 53i3 6448 7079 11335 15062 16247 17031 17753 18306 18645 10937 19022 426 1011 1583 2133 2734 4068 4706 53<5 6455 JlOl 11338 15065 16249 17033 17755 18309 106*7 18939 19229 428 1013 158S 2135 2737 4071 4709 5318 WS7 7104 11341 15067 16251 1»0J5 17758 18312 10649 18941 19232 petition Section 459 could work perfectly well as dear conflict in personalities and 432 1015 1587 2137 2740 4074 4712 5320 6459 7107 11344 75089 16253 17038 17780 18315 18651 189*3 19237 THERE fa irratrlwaMc shares to other members "at a price The under was which WHERE an 436 1018 1582 2139 2999 4077 4715 6461 7110 11347 15071 16255 170*0 17762 18318 18654 16945 management style had begun to 5323 19242 breakdown in retaflons between to be agreed upon by the vendor presented on June 1L it stood. 439 1021 1594 2141 2901 4079 4718 5326 6464 7113 11349 15074 i&aa 170*3 17764 18322 18657 18947 192*5 4721 the directors or in case of dif- Mr Simon Mortimare, for the re- There was no allegation of any emerge. If there was such a break- 4«2 1023 1566 2143 2924 4081 5326 6467 7117 11351 15076 1626? 170*7 17766 1632* 18659 18849 19249 members of a corporate qnasi-psrt- and 444 1026 1598 2145 2927 4083 4724 5386 6460 7120 11354 15078 16266 17050 17760 18326 1866? 1BS51 >9252 down, there was unlikely to be any nershfp, the excfaxsioa of one direc- ference, at the price which the audi- spondents, said the articles pro- wrongful conduct by the board or 448 1028 1600 2147 2930 4085 4728 5386 6471 7123 1 1357 15080 1C267 17053 17911 18330 18665 10953 19256 450 1030 1604 2149 2933 4097 4729 5390 6473 7126 11359 15082 16270 17065 17914 18332 18667 18855 19260 hell . . exhaustively for the situation majority shareholders in the way doubt over who would have to leave. tor from management and enqiky^ tor of . the company . „ s . cer- vided 452 1033 1609 2151 2936 4099 4732 5«l 6475 7129 11462 75273 ICJ72 17058 17917 16335 18669 18957 19264 ." that had arisen. petitioner had they ran the company. The company was wholly sustained 454 1035 16H 2153 2939 4101 4735 5463 6478 7261 11464 15275 16274 17061 17920 18337 18671 18960 19267 i unfair, though tify to be . . . the value . . The Mr Kosmin TTfnt is not in itself 457 1037 1613 2156 2941 4103 4738 5466 6481 72W 11467 15282 16278 17063 1792? 18339 18674 18062 19270 by working capital provided by he may 'have joined the en&apise The directors would then allocate ceased to be a director. The bargain said the.petitioner was nevertheless Mr 460 1039 1616 2158 2943 4106 4741 5*69 6484 7265 11489 15285 16278 17065 17925 18341 18876 18964 19272 462 1041 1620 2l6i 2945 4109 4744 5471 6487 7288 11471 75287 16781 17067 17927 183*5 10966 willing was that in that event he would sell entitled to bring a petition under T.'s interests. The only quertion 1067B 19276 with the expectation of mrtidpat-: the shares among members 472 1043 1623 2163 2948 4111 4747 5473 6490 7271 11474 15269 16283 17069 17930 183*6 18680 16060 19279 would tbe 2166 17071 cm a tosag-tenn to purchase and give notice of the his shares at a value fixed in de- Section 459 or for winding up be- be terms of parting and 482 1046 1629 2950 4114 4749 5520 6492 727* 11476 15292 16285 17932 16351 10683 1B970 1928= ing in management 501 7050 1631 2767 2953 411 7 4751 6495 7276 11479 15295 16287 17073 17935 18353 18685 1097? the articles providing for purchase 5523 19P86 basis; BeconRngty, if the arti- allocation to them and to the ven- fault of agreement by the auditors. cause he became a shareholder on 503 1052 1635 2174 7958 4119 4754 5534 6498 7279 11481 15788 16269 17075 18008 18355 10687 1887* 19089 1062 1637 2176 4121 4756 157 16292 17078 180H 10358 18689 10976 dor. was then bound to the basis of a legitimate expectation at fair value. 506 2959 5W7 6500 7282 114B4 W 19292 cles provide for the transfer of a de- The vendor Accordingly, Mr Mortixnore said SlO 1072 1639 2179 2981 4123 4758 6553 6502 7285 11486 15792 16294 17082 18013 18360 18691 18978 19295 that he would participate in the If articles provided a method for 512 1099 1641 21B1 2963 4125 4761 5555 6505 7288 11408 15794 16296 17086 1B015 18362 19693 10980 19296 parting director’s shares ttpon transfer the shares and if be did not it could not argued that the com- be SIS 1152 1648 2183 4134 4864 7291 17491 15802 16296 17089 18018 18364 18695 18982 of the long- determining fair value, a member 2966 5569 6508 20906 breakdown in relations, he cannot do so, the chairman was deemed to pany's affairs had been conducted management company SIS 1154 1661 2185 Tsea 413? 4B67 5577 6511 7294 11493 15805 16301 17092 18020 1B366 10697 1BW4 20010 have been appointed his attorney to term. The fact that he had been ex- seeking to sell his shares an break- 522 1157 1653 2187 2970 4139 4669 5579 6514 7297 17495 15807 16303 17097 18023 18368 lift 99 18986 20915 assert that compliance with the ar- in a manner unfairly prejudicial to 524 1164 1655 2189 W73 4141 4871 S6«i 651? 7299 11498 15812 16409 17101 18026 10370 10701 1BS08 =0916 down of relations do so on his behalf. cluded was sufficient to constitute with other share- 527 1166 1857 2192 2976 4143 4873 5563 6519 7301 11501 15815 16713 17104 18030 18373 18703 18991 20922 ticles constitutes conduct . unfehty the petitioner's interests, as Section conduct unfairly prejudicial to hfa holders should not ordinarily be en- 529 1170 1660 2194 2979 4146 4876 5685 6521 7304 11504 15817 167>5 17106 18033 16375 18705 18094 =0925 prejudicial to his interests. The petitioner said relations be- 456 required. There could be noth- 532 1172 1662 2196 2961 4148 4878 5587 6523 7316 11507 15821 16717 17108 18CT3S >8378 18707 18996 20927 titled to complain of unfair conduct 1175 1665 2199 2983 4150 *881 7319 11510 15873 16779 171T1 18037 16380 18710 10998 2093? tin fair in holding him his bar- interests. 536 5594 6528 Mr Justice Hoffmann so held tween him wwl Mr T. became in- ing to 538 1177 1669 2201 2986 4153 468« 5596 0528 7323 11513 15835 16722 17115 18039 18382 18712 19000 20935 if he had made no attempt to use when striking out a petition under creasingly strained. In the middle gain. His Lordship disagreed. In Pos- 541 1179 1671 2203 2989 4156 4887 5508 6530 7326 71516 15959 16726 17119 18043 18385 18715 19002 20942 that machinery. 546 1181 1673 2205 3991 4159 4889 5800 6532 7329 11519 15961 16729 17121 18046 16387 18717 19004 209*7 the Companies Act txdd him he Mr Leslie Kosmin, for the peti- gate & Denby (FT July 1, 1986) 548 1184 1676 2208 2993 4T6J 4891 5610 6534 7331 11521 15963 16731 17123 16050 18390 18719 19008 20951 section 459 of . of 1983, Mr T. suddenly A provision that auditors should 1187 1678 2211 4163 4894 H523 15966 16734 17176 18053 18392 18721 19008 ground managing di- tioner, did not accept that he was he had said that the concept of un- 552 2998 5623 6538 7334 2095* 1985 for winding up, on the . was to be removed as fix a fair value gave them the func- 554 1189 1701 2213 2999 4160 4898 5625 6538 7337 11526 15969 16738 17129 1B055 16396 18723 19010 =o*a en- 11529 15971 16741 17133 18059 18397 18726 19012 that it was frivolous, vexatious and rector was to become director bound to sell First, he said, it was fair prejudice under Section 459 557 1192 1709 2215 3001 4168 4898 5629 6544 7339 2096* and 17135 18061 18400 18728 19014 into tion a court would have to perform 559 1194 1711 2217 3004 4171 4900 56*2 6547 7341 11530 15974 >6743 20969 disclosed no reasonable cans of ac- for future products. He had no op- arguable that the articles were not abled the court to take account 562 1197 1713 2219 3007 4173 4903 5644 6549 73*4 12111 15976 16745 17138 1B0G4 10*02 18731 19017 2097= under Section 459. The only differ- 602 1199 1715 2221 3009 4175 4905 56*6 6561 7358 12113 15978 1674 7 17141 >8067 18*05 18734 19019 20976 tion. tion but to accept tending on the petitioner. members' legitimate expectations. ence was that the court’s valuation 604 1201 1725 2224 3011 4177 4907 5648 6583 7361 12H5 15981 16749 17143 18071 18*08 1B737 19022 20962 He said: The common case of such 1728 3013 4179 4909 12119 15994 16751 171*5 18074 18*10 18739 19024 20987 Section 459 of the Companies Act In the year to June 1984, the com- said 608 1203 2226 5651 6535 7364 The petitioner had the arti- would take longer and be far more 622 1205 1730 2228 3016 4181 4911 5654 6588 7366 12121 15988 16754 171*7 18076 18*12 18741 19026 20M2 provides: ~A member of a com- successful, and profit be- expectations being superimposed 17149 1041* 1985 pany was cles were adopted at a meeting at expensive. KS 1208 1733 2231 3019 4183 4914 5656 6590 7370 12123 >5989 16757 18080 107*3 19028 =0995 1211 1735 2233 3022 4185 4917 7272 12431 15992 16760 17151 18064 18*17 ie7*5 19030 20999 pany may apply to the court by peti- fore tax- was £232,000. In the next on a member’s rights under the ar- 628 5658 6602 which be was present, bat that be Therefore, in case of 630 1213 1737 2235 3024 4187 4919 5661 6605 73Tb 12433 15994 16762 17154 18087 18*21 187*7 19032 21005 is the corporate quasi-part- the normal tion ... on the ground that the com- accounting year, the company's for- ticles 632 1215 1739 2237 3026 4189 4921 5663 8608 7379 12435 15996 16766 17157 18089 16435 18751 19035 21010 had not seen a copy beforehand and breakdown quasi-part- 7 of corporate 635 1217 1741 2239 3360 4191 4923 5665 66M 7381 12440 15999 16768 l7l£9 1B091 18*28 16753 19037 3 1018 pany's affairs are being or have sharply into reverse, nership in which members fre- tunes went there was no adequate opportunity nership, there should not ordinarily 637 1219 1743 2241 3370 4193 4926 5867 6614 7364 12442 16001 16771 17162 10093 18432 18755 19039 2102= been conducted fa a manner which, with a cumulative loss of £257,000. quently have expectations of partic- 639 1221 174S 2243 3373 4195 4929 £671 6618 7387 1244S 16003 16775 17165 18095 18*35 isrsa 19041 210=7 to consider them in depth. be any “legitimate expectation" that 8«2 1223 1752 2**5 3376 4197 4931 5674 6620 7389 12*47 16006 16778 17168 18098 18*38 10760 190*3 21032 inter- during that ipating in management and profits 16781 17170 18101 18**0 18763 19045 is unfairly prejudicial to the The petitioner said that T. said petitioner voted in 648 1225 1755 2247 3378 4200 4933 5676 6623 7392 12449 16000 21037 Mr the a member wishing to have his 650 1231 1758 2250 3388 4203 4935 5685 6627 7409 12580 16011 16784 17173 1810* 18*43 10765 19047 =1042 of some part of the members relations with Mr T. deteri- ... but., it is... necessary... to de- ests year his favour of their adoption, and point- shares purchased should be entitled 652 1233 1760 2253 3391 4206 4937 5688 6630 7*12 12582 16014 16787 17175 1BI06 18445 18769 19049 210*4 monstrate some special circum- 1235 1762 3393 4209 4939 7414 16017 16789 17233 18108 18447 18771 19051 =1046 (including at least himself) . orated, and May 31, 1985, he was 656 2255 5690 6636 12585 on ed out that they could not have to have them valued the court 4211 4941 16791 17235 18111 16*49 1877* 1&053 =l»3 stances which create a legitimate by 660 1237 1773 2258 3395 5692 6638 7531 13085 16019 cunTwirily- HicmiMarf. adopted be voted against 662 1239 1776 7262 3394 4213 49*3 5700 6753 7533 13087 16021 16801 17238 18114 18461 18776 19055 =iQS7 HIS LORDSHIP said that in 1981 a been had rather than auditors pursuant to 1241 2264 3401 4216 4946 16804 172*1 tan? *8453 18778 19057 Reiatifinm had irretrievably bro- expectation...” tea 1778 570] 6756 7607 13089 16023 21062 company was forced with an issu- That was not contradicted. the articles. 672 1243 1781 2266 3403 4219 4948 5706 6750 7609 1J091 16026 16805 172*4 18120 18*55 18780 19059 21065 .The petitioner com- Mr Kosmin said tbe company 660 1345 1783 2268 3405 4221 4951 5708 6761 7615 13094 16029 16808 17?47 18122 16*57 16783 19062 21070 ken down. This was a much str nger case. 18124 ed share capital of 100 shares of £1 Mr Kosmin said the company of was a corporate quasi-partnership o 662 1248 1785 2771 3407 4234 4953 5710 6764 8425 13W7 16031 16811 172*9 18*80 187B5 19064 21075 menced proceedings before an to- 702 1251 1788 2273 3409 4227 4955 5917 6766 8427 13099 16034 16814 17267 18128 18465 18788 19066 =11=2 each. The petitioner, an electronic The petitioner did not wish to sell dismis- Mr T. owed a duty to the petitioner and therefore the petitioner had a 704 1253 1792 2275 3411 4229 4957 5819 6791 B429 13101 16037 16810 17269 18128 18*68 1B790 19060 21136 . dustrial tribunal for unfair He was bound to sell at the audi- 706 1355 1799 2277 3413 4231 4959 5921 6793 8453 13104 16040 16821 17371 18130 18470 18793 19070 21143 engineer, acquired. 39 shares, aid to explain tbe effect of the new arti- legitimate expectation that unless sal. They were compromised with- 708 1267 1801 2279 3417 4234 4951 5923 6798 8<35 11106 16042 16823 17273 16132 10474 18795 19072 911*9 the remaining 81 were acquired by tors' valuation. If they had got the 710 1*0 1804 2261 3419 4236 4953 5941 6799 13108 16045 16825 17275 10134 10478 10797 1907* 2"55 the cles or allow him time for consider- he did something that plainly justi- 8508 out admission- of liability on 712 1362 1807 2283 3*?1 4238 4966 5943 BflOl 8513 13110 16048 16827 17277 16137 18478 18799 19076 21276 mmii Ti IliS valuation wrong, that did not consti- a hmdng ailM Mr T„ ation. Under section 141 of the Com- fied his exclusion, he would enjoy 714 1264 1609 3423 4240 4968 16029 17279 18139 18481 18801 19078 port of the company. 2285 5948 6604 8515 13828 16051 2*282 - tute unfair conduct. The petitioner 716 1287 1811 2238 3433 4243 4970 5949 6808 8517 13831 16054 16831 17261 18142 10485 10903 190B0 21290 family and a business associate panies Act resolution partici- ' 1985, there 1948, a special continued employment and 718 1279 1835 2291 3*45 4246 4073 13834 16056 16834 17263 1B145 16*88 18805 19082 Meanwhile on July 28, was free to for negligence 5951 8809 8510 21294 the sue them 3447 4249 4978 16836 17265 18491 7 The petition alleged that new extraordinary to ampnd the articles in the absence pation in the management 720 1285 1837 2294 5953 66M 8521 13836 16058 1B147 1B0O 19004 21299 was a duty convened or bring proceedings to set aside 722 1289 1840 2297 3450 4251 4878 5955 6814 8523 13530 16060 16838 17287 18149 10493 18800 19066 21401 venture was established an the un- petitioner, petitioner was of consent from the or if 735 1331 1843 2300 3453 4253 *981 £959 8817 8525 138*0 16062 168*1 17389 18151 18496 18811 190« 21*06 meeting at which the It could not be accepted that the valuation without having to pe- derstanding that- the petitioner shareholders, have 737 1333 1845 2303 3455 4256 4983 5861 6819 8527 13842 16065 16843 17291 18154 18490 1B813 19090 21411 , Since then Other would re- break- 77293 removed as a director. there was an irretrievable tition under Section 459. There was 740 1336 1847 2305 3458 4259 4985 S964 6833 BS29 13845 16069 166*5 1B157 18500 1B8T5 19092 =1418 would . be employed aa fulTtime quired at least 21 days' notice. 742 1336 1849 2308 3461 4261 5051 5087 6838 8856 13840 16071 16847 17295 18160 1BS03 18817 19095 21425 he had taken another job. down in relations between mem- little prospect of attacking the valu- 744 1341 1869 2311 3480 4582 5053 13851 16074 18850 17397 18162 18505 18810 19037 21430 managing director, and that Sir'll 5960 8850 quasi-partner- 7«6 13*4 1871 2314 3484 4565 5055 5071 60<2 8681 13853 16076 16894 17299 1B1&4 1BS0B 18B21 19099 2=252 But there was no suggestion that bers of a corporate ation. Bad faith or collusion were >ti* woukfbe a rum-executive chairman. On March 5, 1988, the company’s 748 1346 1B73 2317 3561 4588 5058 5974 E84S 8683 13855 16060 76856 17301 18166 16510 18823 19101 22227 petitioner was misted, or asked ship, the exclusion of one from 751 1348 1895 2319 3564 4571 5061 5976 6648 13857 16085 1EB5S 17304 1B1GB 10513 18826 19103 22236 the solicitors wrote to the petitioner. the not alleged. In 1982, said the petition, and was 754 1350 1897 2321 3567 4574 5063 5979 £551 8668 13859 16088 16851 17306 1817J 18515 1BS2B 18105 for an explanation or further time. management employment Having regard to the articles, the 16091 16901 17308 18174 18517 company by special resolution They drew attention to Article 10 774 1353 1902 2324 3589 4577 5065 5962 6854 8871 13062 18830 19107 voting for the resolution, he ipso facto unfairly prejudicial con- 816 1356 1905 2328 3571 <579 5067 5984 6857 8674 13885 18094 10903 17311 18178 16519 1B832 19109 that the petitioner was By petitioner could have had no legiti- 16905 17313 181TB 16521 1883* adopted new artadra of association. and said under 819 1359 1941 2329 3573 4581 5069 5987 6359 8678 13867 1G0S7 i9m must be taken to have consented to duct, entitling him to petition 621 1364 1944 2331 3580 4584 5071 6861 9311 13871 16008 16907 17315 18181 16523 18838 10113 hilf ma- to have given a transfer no- mate expectation that in the event 5689 Article 9 containedpre-emption deemed 823 1366 1950 2333 3583 4587 5073 5901 6664 3314 13874 16102 16010 17317 18183 18525 1B83B 18115 the absence of the statutory notice. Section 459. It must depend on of breakdown of relations between rhirw providingthat any member tice in respect of his 30 shares with- 826 1368 1953 2335 3685 4589 5076 S904 6867 0322 13678 16105 18913 17320 18185 1B520 16840 19117 y part- There was no arguable basis for a whether, if there was to be a him and Mr T. they would not be transfer his shares in 14 days of Ms ceasing to be em- September 1. 1986 the Bonds above will become due and payable in U.S. Dollars who desired.to that he On designated and are duty to give him advice or explana- ing, it was reasonable relied on to require him sell bis should-give a transfer notice to the ployed or ceasing to be a director. to required to be presented for redemption and payment on or after September 1, 1986 at the office of the Principal tion- He was bound by the articles. should leave rather than the other shares at fair value. company, which .would then offer Even if he had, as he alleged, been Paying Agent, Bankamerica International. 41 Broad Street New York, N.Y. 10004 or at the holders option at the Secondly, Mr Kosmin said the pe- members, and on the terms he was petition the alternative the shares to the other tnemhers.' wrongfully dismissed «nd did not The and offices of the following paying agents: Hill Samuel and Co. Ltd.. 100 Wood Street, London EC2P2AJ, England. in compen- titioner did not fall within Article offered for his shares or claim for winding-up were there- Skandinaviska Enskilda Sweden, Deutsche Bank AG., Taunus-Zentrum Article 10 setout various circum- “cease to be an employee”, he had Banken, S-106-40 Stockholm, Eschbom, of employment 10. There must, he said, be an im- sation lor his loss fore struck out Postfach 5223 D. 6236 Eschbom 1, West Germany. Svenska Handelsbanken, Blasieholmstorg 103-28. stances in which a member would ceased to be a director. The letter 11, S plied term that an employee direc- In the present case, the articles Stockholm, Sweden, Banque Bruxelles Lambert SA, Cours Saint Michel 60, B-1Q40, Brussels, become bound to give a transfer no- said that other members were will- For the respondents: Simon Belgium, tor who had been wrongfully dis- had mwdp- provision in advance for K red let bank SA, Luxembourgeoise, 43 Boulevard Royal, Luxembourg. included where a mem- ing to offer £900 a share. (Booth. tice. Those there was a Mortimore & Co and missed was not obliged to give a what was to happen if cease to accrue from ber, employee or director ceased to The offer was rejected and the Middletons, Leeds) Interest on the Bonds socalled for redemption shall September 1, 1966 and the coupons transfer notice when he ceased to breakdown in relations. The majori- be an emptoyeeor director. “Ceased petitioner denied that he was For the petitioner: Leslie attached thereto maturing after September 1. 1986 shall be void. be a director. ty shareholders had a statutory to be an emjdoyee* was defined as obliged to transfer his shares. The Kosmin (Wells & Kind, BANKAMERICA INTERNATIONAL, The implication of such a term power to remove the minority NEW YORK excluding aseracn who waswrong- auditors certified the value of the Nottingham) (Principal Paying Agent) was not seriously arguable. The shareholder as a director and they shares at £800. The company indi- August 11, 1881 fully dismissed. thereafter entitled to buy his .r . proposed implied term could not were ; Article the transfer no- cated that it was proposing to Under 9, fair value. By Rachel Davies pursuant the pass the test of necessity to give shares at tice constituted thecompany as transfer the shares to a jnigfapsa gfBrmy to the article. The articles were adopted after Barrister articles . vendor's agent 'll* the sale of his power of attorney in the
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Financial Times Tuesday August 12 198fi MANAGEMENT: Small Business EDITED BY CHRISTOPHER LORENZ
Importing / j>oNYcfkRB iF-nmr fry? /#=xr A [/fiONTU'S 7&P-S&&ET FASHION COUHXK < UHtf -~-rrTH£fG0rrpi Go /N QUff&NT/NB' Dictating a fashion Seeking fresh David Gompert explains how a US Bower dealer began marketing a touch of style to stand out from a ground band of competitors growth areas IT WAS BACK in early 1984. extend flower shelf life, rather has become a major force in merely inquiring into the Miami flower-importing offers as Christine Martindale recalls than In the first of a series Martin Posner it, that her Miami-based flower- potential orders. She also pays business, achieving sales last 1 marketing much attention to the fashion year of $5.8m. That represents importing company's dos and don*ts of tapping foreign marisets problem first became noticeable. side of the flower business by considerable progress from her Her five-person sales staff sud- trying to anticipate what flower first year, when she had Department of -the denly discovered that it couldn’t colours are likely to be popular $700,000 sales. Most of those WILL never get involved is merdal “I Consulate General In get existing and potential cus- a year or two ahead. hdriiii sales came from custo- another export deal.” Too many British would be contacted for tomers — owners of flower Martindale’s challenge Is one mers she was able to attract first time exporters rush eagerly -Milan detailed Information on current wholesaling companies — to being faced by increasing from a flower importer she had I PLOWS* into new markets only to bun ***: ] conditions. come to the phone and answer numbers of small businesses In worked for previously as a /Mfwrejts their fingers because they failec market & p>ips there are local inquiries about ordering the US. America's so-called manager. to do their homework. If small In the UK " area advisory groups, flowers. “ Entrepreneurial Revolution She has distinguished herself businesses cannot increase their BOTB _ of busuMsamen Figuring out the cause of her has unleashed a multitude of favourably from competitors in sales at home, exporting can each saracenias. Moreover, intimate knowledge of company’s problem wasn't all new businesses in many busi- large measure because she is in Ameri- sign a brochure that empha- hired a former cruise line dramatically increase turnover. with particular area, to Martindale, 35, ness areas particularly the an industry that traditionally cans are much more likely to sises Esprit’s interest in fash- marketer as her company’s Profit margins, too. can be far trade In one that difficult. — exporter can be that sud- service sector. In Los Angeles, hasn't been extremely market- demand that their flowers match ion and colours. The brochure’s marketing director In the expec- higher if the many practical which the quickly realised she help. Local denly had much more competi- video production companies ing oriented. Flower growers their curtain, wallpaper, and black-and-white cover boldly tation of coming xtp with still details of selling overseas are directed for clothes colours. states: “ tactics to of Commerce have tion. When sbe started Esprit seem to be springing up like in Colombia, Costa Rica, and Once you see our col- more marketing help properly appreciated. There is Chambers In her effort stand clubs. The London Miami in 1880, there were only weeds. In Boston, it’s consult- elsewhere are accustomed to to out ours, everyone else's might as her stand apart from the crowd, only one rule get it right. But export — Commerce h*4 a about 15 flower-importing com- ing firms that seem to pop up providing what’s easiest to grow from the crowd of Miami im- well be black and white.” In- and earlier this year she how does one begin? Chamber of porters, department panies in Miami. By 1984, the on every corner. Overall, more rather than what’s in demand. Martindale has sought side, the brochure contains opened a retail flower outlet in First it is essential to work large information “ particularly on number had at least tripled and than 600,000 businesses have Miami importers have mostly to improve her service. m brightly coloured flower photos. downtown Miami. While she out a policy marketing plan so which is good today there are about 60 such been Incorporated in each of been content to play the role of mix and match colours in the She has used the same theme expects that the store, with its that all the implications can be market research. businesses in the endless indus- the last two years, which is intermediary, shipping on to boxes of flowers the growers in advertisements placed in emphasis on affordable, attrac- reviewed on paper. It is then Export regulations and trial paries that surround more than double the number wholesalers whatever growers send us,” she says. “If a cus- flower industry publications. tively arranged flowers, will be necessary to prepare two check import restrictions can be Miami’s airport. incorporated during the mid- supply. tomer doesn't want red carna- Last summer, she was one of profitable, it has another pur- lists. The first should cover checked by contacting an offi- 1970s and eight times the approaches have tions—just white and pink only two Miami importers to pose as weH: Tin using the local economic, political and cial of the BOTB and desk “Discovering all the new But such the well repack the boxes." set a booth at the annual store as a test-marketing centre” commercial market background officers of the Department of importers frightened me more number during much of created problems for growers up She has even tried to anti- convention of the Society Co try out new colours and keep plus government export and Industry. than anything,” Martindale 1950s. and importers alike. On the one of UK Trade countries cipate changing colour fashions American Florists. Her hope is abreast of changing consumer regulations, tariff restrictions, With the preliminary home- recalls. “We were all calling Fart of what' makes service hand, the number of staples like by subscribing to a New York that at least some of the many tastes, Martindale says. transportation, the importing work out Of the way. the next the wholesalers every day. Some businesses so popular Is that now growing flower has consulting service that predicts retailers who expressed in- Her biggest challenge? Get- country’s regulations and pay- step is to decide whether to hire of the wholesalers told me that they can often be started with carnations and pom poms colours likely to be in fashion ting growers and wholesalers ment terms. overseas agent and invest In they had stopped taking calls little upfront investment. For increased (to include not only terest in her orientation to- an tiie next year. That way, she ward fashionable colours will to appreciate the increasing training for the sales from importers." a flower-importing business, all South American countries, but extra can push growers she importance of fashion in flower also as weH to Coining up with a solution that is really needed to open up Spain, Israel, and African deals request that wholesalers order Help at hand force. It is with—most of whom are in Esprit’s flowers. purchases. “You have to keep budget for the cost, of translat- to this problem hasn’t been shop is a telephone with an nations), leading to over- Colombia to plan their flower She’s looking ways after them constantly,” she The second check list should catalogues, price lists and quite so simple, though. Over 800-number and a WATTS line supplies and price declines. — at other ing piatvrtwgg sighs. But the effort has dearly move on from general market- the past two years, Martindale in one’s ft'ning room. (These Prices for carnations last year accordingly. She helps to improve her marketing correspondence. begun to pay dividends. Sbe con- ing policy deal with toe pro- out has worked hard to distinguish telephone services allow many dipped to as little as two or the growers by providing seed- efforts as well She wants to to Time spent carrying toe lings tinues a few steps ahead of the duct or service to be sold over- research is essential Esprit in as many ways as calls to come in and go out at three cents apiece from 15 to she obtains from an gather groups of wholesalers port of the growing numbers of entre- seas. it is important to exporting viable, possible from her new-found the most cost-effective rates.) 20 cents apiece in 1984. (They Italian bybrldiser, who pro- together to demonstrate chang- Here to see if Is preneurs trying to duplicate take into account toe attitude of extra competitors. Outside contractors will handle have recovered this year, due In duces flower types and shades ing colour fashions so they can because toe costs can be success. the importing country to British one She makes sure, for instance, customs clearance and flower large measure to weather prob- according to her colour speci- improve their own sales her considerable. If person ia executive products, its cultural and reli- on the telephone her sales refrigeration for additional lems in Colombia.) fications. approaches. By helping the David Gumpert is derailed to do the pathfinding, that language. force now provides wholesalers pay-as-you-go fees. On the other hand, American Another tactic she’s used wholesalers sell more effec- vice president Venture gious customs and an indication of toe prospects Hampshire, The selling price must reflect with useful information, such Martindale has managed to consumers are increasingly successfully to differentiate her- tively, she hopes to build Resources, a New of extra sales could be obtained consultancy and a senior the exchange rate, differences as flower-growing condi ions In adjust successfully to the new seeking more exotic flowers like self is promotion. She hired an loyalty to her products. based in six weeks. and include all the extra costs South America and how to competitive environment and alstroemaria, miles, and advertising agency to help de- In the past year, she’s also editor of Inc Magazine. of exporting. Will it sell at the price? Will calling problems. Cold venue Is the ion’s business tidpants were already allowed ing ip»i»h businesses at the sector. Just undo- one-fifth per cent had equity the customers pay? Can credit IN BRIEF centre at 116 FaQ Stall Lon- to count their time on their present time, according to a were in the distributive Getting advice was cited as a insurance be obtained? It might Several companies have spent telephone 839 1233. project or coarse as unem- survey by the Small Busi- trades and 28 per cent in difficulty by nearly 7 per cent seem impossible to answer all fortunes in dying out sties per- THE INSTITUTE of Directors don SWT, ployment for the purposes of ness Research Trust. The manufacturing. Regionally, survey that these questions, but help is at sonnel to a country to start cold is to run a one-day seminar on The showed to self-employ- eight- taxation, together British calling without checking any of September 11 entitled “Ex- THE PATH satisfying the scheme’s burden of most responses (38 per cent) just under a quarter of res- hand. The Overseas has been made easier Trade has than 20 toe local customs. were -in: ir pansion through Franchisings” ment week unemployment condi- with the difficulty of low came from those operating pondents claimed to be mem- Board more They for those on Government are the schemes to help UK businesses amazed that no orders ware There will be a panel of tion. turnover put as next in London and the South- bers of a general small a result of difficulties. - to succeed in selling overseas, gained. speakers explaining what schemes as Under the Enterprise most pressing East, with 12 per cent in the business representative body, recently foreshadowed many of which are free or The export plan should in- franchising involves, how to Allowance Scheme financial The findings are described South-West, 10 per cent in with nearly half saying they riwngwL articipants the highly subsidised. Its leaflet clude the two check lists and raise sufficient capital to get P on help of £40 a week for 52 in the latest issue of the tiie North-West and just had joined some other pro- a Community Programme, the “Help for Exporters’’ gives a time and started, the tax implications weeks is available to people National Westminster Bank's 3 per cent in Wales. fessional or trade body. budget schedule so Voluntary Projects Pro- brief summary of the services that It can then be decided in and any legal problems that who have been unemployed Small Business Digest and re- Stanforth says around 50 Membership penetration is gramme qrinlt training which can be obtained from the principle if exporting fe may arise. Among the for eight or more weeks and late to a survey which was per cent of respondents highest in the North and courses funded by the venture BOTB, 1 Victoria Street, Lon- practical, possible and it it speakers will be Sir John who have a business carried out among more than admitted to having financing Scotland, says Stanforth, and Government and administered Invest in don SW2H GET, or their local could be profitable. Hoskyns, the IOD director in nrfnd and £1,009 to 4,009 of the digest’s readers. problems, especially the lowest In the South-East. by the Manpower Services put off offices. The more detailed process of general, Allan Pope, franchise it but who may be Twenty- For full deteaiSs of the Commission can now move Professor John Stanforth, younger businesses. Here is an example: a china assessing toe export manager for Lloyds Bank and working for themselves Business country and director - general of the seven per cent said they were survey contact Small manufacturer wishing Ken Mnllarkey, chief execu- directly on to the Enterprise because they would lose to sell to its market and looking for sales research trust, says that more having difficulty In obtaining Beearch Trust, 3 Dean Italy. desk officer tive of franchisor Holland and Allowance Scheme without entitlement to state benefits. A at BOTB prospects will be the subject of Hum half of the respondents working capital and 10 per Trench Street, Westminster, will be Barrett. Tickets cost £155J5, having to re-register as unem- able to advise on the the next piece in this series. were people operating small cent were baring problems London SWZP SHB, tele- best inclusive of documentation, ployed. HIGH INTEREST rates are way of tackling this Martin Posner is a rircdft capitaL Only phone 01-222 4684/5. lunch and refreshments. The Under previous rales par-. the most serious problem fac- businesses in the service with loan 3J specific market, and the Corn- management consultant.
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Sl’rt.. •vP Financial Times He Tuesday August 12 1986 7 k Business Opportunities ^commended to take appropriate Businesses for Sale PROFESSIONAL ADVICE BEFORE ENTERING INTO COMMITMENTS Hare Engineering Limited fr WHOLESALER AND RETAILER Financial Times Tuesday August 12 1986 Ittakes . a special kind of bank to be apower in both corporate trust and Eurosecurities. It takes BankersTrust. You might expect a bank with Trading. From our regional trading rooms in "Trust” in its name to be a power- New York, London and the Far East, we execute over fill force in corporate trust and $ 18 billion in money, securities, and currency trans- agency services. actions daily. Bankers Trust is today oneofthe five So it should come as no largest primary United States government securities surprise that more than 2,000 dealers and one ofthe acknowledged leaders in corporate and governmental foreign currency trading. entities worldwide depend on Loan syndication. Bankers Trust plays a major BankersTrust to service over role in the global syndicated loan and Euronote $150 billion in securities. (We market.We are sixth among the top 50 lead managers exercise fiduciary responsibility worldwide, and are ranked fifth by leading partic- for over $80 billion in debt ipants in the world’s capital markets in terms of securities alone.) innovative instruments and pricing. But for the samfe bank to be a Swaps. Bankers Trust is a universally acknowl- major force in the Euromarkets edged market leader in the intricate world ofcurrency that might seem surprising. Yet last and interest rate swaps. In 1985, our team of year, Bankers Trust lead-managed specialists in New York, London, Tokyo, Hong Kong 26 Eurosecurity offerings total- and Toronto completed an average ofmore than three ing $2.5 billion. And was one deals every day. ofdie most active partici- Securities services. Bankers Trust’s securities In 1965, Bankers Trust broughta$350 pants in the secondary market, where we are a services capabilities go far beyond our leadership in million Eurobond issue to market for market-maker in over 500 different Eurosecurities. worldwide custody and clearance.We also offer pro- the European Economic Community. It was the largest bond and swap issue dual leadership is the result of grams like Institutional Brokerage, Securities Lending Such ever, and one ofmany arranged by When Storer Communications was Bankers Trust’s remarkable brand ofbanking: and Dividend Plus to maximize the earning power of Bankets Trust. acquired recently by its management merchant banking. the securities we service. and SCI Holdings, Inc.—a corpora' tion organised by Kohlberg, Kravis, Merchant banking blends two distinct aspects of In almost every area, Bankers Trust’s merchant Roberts Co. Bankers Trust was & — banking. One is the lending capabilities and breadth banking skills can serve you, and serve you well selected as exchange agent for the $2.6 of non-credit services ofa commercial bank. Indeed, many clients now turn to us for virtually all billion acquisition. Our spedalixd Among reorganisation processing team these are our trust and agency services. of their banking needs. handled twelve ofthe largest mergers in. The other halfofmerchant banking involves the Merchant banking. 1985, totaling over $10 billion. intermediary skills and entrepreneurial spirit ofan If you’re not yet taking investment bank. From this halfsprings our strength advantage of it, you in die Euromarkets. should. With the It’s this combination of investment and special kind ofbank commercial banking services that has made that can best put it Bankers Trust die choice ofso many private and to work for you: public sector entities. For more often than not these BankersTrust. days, what once were purely commercial banking functions now require a considerable degree of investment banking know-how. And vice versa. The combination has given Bankers Trust leadership in many areas. Among them: BankersTrustCompany Dashwood House, 69 Old Broad Street, London Kishimoto Building, 2-1 Marunouchi, Tokyo Merchant bankir^,^Madkiwkie. ; . . — . — — — \V; f- HnandaZ Times Tuesday August 12 1986 9 THE ARTS Edinburgh Festival/Mary Rose Beaumont Oberon/Usher Hall Richard Fairman It is a brave man who takes own in-built balance Fresh between ment for his main aria. The light on the birth of Impressionism the comic and the serious. on Weber's Oberon. This opera Canadian Paul Frey did tackle Respect it, as Dunlop trails in its wake a history of wisely the original—but only the The Scottish has, and the result will be a middle of it. awkward Enlightenment Gerhard Richter has chosen to failures, from Its opening per- The lively, entertaining evening. is the between ** outer flourishes were taken over theme of this year’s Edin- place his two valu- formances at in Covent Garden The only real regret is the by burgh Festival. National tas " paintings Of a skull and the reliable Oberon of The 1826, through a long list of loss of the famed scene candles. Philip Langridge, which seemed Gallery of Scotland has taken changes. In the London This theme of death and an arrangements by (among of beyond the call of duty, even the subject quite literally in 1826 these were the raison for emphasis on the worthlessness others) Mahler and Wein- a benign king of the its exhibition. Lighting up the d'etre of putting on the opera. fairies. of the material world is pur- gartner, to the unhappy ex- The setting of the sun on the Frey was, in Landscape: French Impres- sued throughout God, or the perience of any case, taxed Scottish Opera in water in the second act was said by much sionism -and tie origins, which gods, are seen to be vain and of the rest of the role the autumn of last year. to have drawn the most too. For a splendid demonstra- examines the work of the illus- cruel; man is but a plaything. In this, the composer's bi- applause at the premiere. Here tion of how to tackle Weber's but Giulio Paolini's mirror-glass on trious lessex-known prede- centenary year, Frank Dunlop, the magic of the moment uneasy MTiting for the voice, the floor, reflecting a plaster cessors of the Impressionists in director of the Edinburgh stayed in the orchestra, cap- one had only to turn foot on the ceiling, illustrates to the bril- the broader Festival, has shown it admirable tured with much excitement liant Reiza of Elizabeth context of French. the legend of Empedocles who Con- commitment Not only did he and a potent sense of fantasy nell. From her entrance, 19th-century landscape paint- tried to emulate the gods by schedule the opera as the open- by the Junge. Deutsche Phil- flourishing a dagger like Lady ing. The early works In the throwing himself into the crater ing musical event of the festival harmonic under Seiji Ozawa. Macbeth in a turban, she dis- exhibition are derived from the of Mount Etna, thus becoming on Sunday night; he also pro- played all the drama 28th century tradition of immortal. His hubris prompted As for the letter of the score, and vocal duced it At the Usher Hall strength that the role classical landscape, in particular the gods to eject him. however, there were more prob- demands there is a limit to the amount of lems. The programme promised and capped the evening with that of Claude Lorrain, which The exhibition includes paint- action and visual effects that us a version of the work made some exciting singing in “Ocean, is continued by Corot in his ings, sculpture, photography can be mustered and the piece in 1836 by the English com- thou mighty monster." paintings of the Roman Cam- and installation, making an emerged in a sort of theatrical poser, Benedict, but quite how The extra sparkle that she paigns. - interesting medley. If it is the limbo-—more than a concert, that related to what we heard brought to the stage was soon It is instructive to see how ambition of the selectors to less than a fully-formed opera. was not clear. Though there was taken up by the rest of the cast, close were Courbet and Pissarro conscious make one of human Yet the spirit of Weber was extra music, the main additional especially the Fatima of La in the early 1860s. Courbet's vulnerability, it Is amply ful- with us. After so many produc- numbers noted by Warrack in Verne Williams and Benjamin paintings of his native Ornans, filled, to the point of repulsive- tions which have seen fit to his biography such as the arias Luxon's humorously plebian executed in a swashbuckling — ness. as in Jiri Georg Dokou pit's distort the work's early roman- for Babekan and Roshana Sherasmin. Their duct, like the style with the palette knife, Gragg's Configuration (1985) on display at bloated babies who purport to tic atmosphere, its simple were notable by their absence. whole evening, afforded were a direct challenge to the Tony New a good represent a world of lost inno- humour and fantasy, It was a One change was surely not deal of innocent fun. After so elegant belle petnture of his Edinburgh's Fruitmar&et Gallery. cence. relief to turn to this modest Benedict Tenors have com- many bad transformations it contemporaries. Pissarro's mag- the preoccupation disguises fish or bird heads— The same idea is more pala- presentation and find moods, plained about the difficulties of seems that Oberon's spell might nificent Banks oj the Marne at untypical but very remarkable stroke and — often with a clock ticking away tably presented in Christian characters and story as the com- the lead role ever since the be working at last. Further Chennevi&res is close in style, painting by Monet,, also in the with light hours Boltanski’s installation, which poser intended them. Lifc* Die first Huon, John Braham, performances follow tonight employing the same breadth of National Gallery's collection, is * the left to us. shows small cut-out shapes Zauberfidte, this opera has its demanded an easier replace- and on Thursday. treatment. Seascape, Shipping by Moon- Bellany’s art is intensely illuminated by lamps, set danc- This painting Is in the collec- light, painted on a dark, slate- The Scottish National Gallery autobiographical: from the ing, like a shadow puppet tion of the National Gallery of blue background, relieved only of Modern Art is showing the shock of a visit to Buchenwald theatre, by a gentle draught of Scotland and was the inspira- by die white edges of the ragged first full retrospective of John in 1967. through the tempestu- air. Gilbert and George. David and focal point for the. clouds which conceal the moon. Bellany, which illnminatingly ous emotional years of the tion Salle and Tony Cragg, are among Linda Hirst/Purcell Room exhibition. In 1865, when it More typical is a. proto- demonstrates the full scale of 1970s, culminating in the more the artists featured in this exhibited at the Salon, it his achievement at the age of tranquil years of the mid-1980s, was impressionist work by, Monet, show, but the presiding genius with official approval 44. Trained at Edinburgh his life is laid bare in paint met On the Seine at - Bennecourt is Duchamp, who queried the David Murray because of its orderly, conven- College of Art and at the Royal Out of the prevailing chaos of (Art Institute of Chicago >. 1868. value of the art object as a tional treatment of a tranquil College, he has maintained life redemption is to be found which is indisputably the star means of communication. Like other song recitals in Schoenberg in his own order communicative flair took her landscape. Bow different is his throughout his career a in love, and in the many family — of the exhibition. The land- * the South Bank " Summer- —from George’s larger collec- much further. To hold her 1874 painting of kitchen peculiarly Celtic vision which is portraits, and especially in scape has literally been lit up. A foretaste of next year's scope," Miss Hirst's moved on tion of the same title. First- audience, as she did, for the gardens at Pontoise, in which manifested in allegories of his those of his wife Helen, one is Madame Monet's blue and white Festival exhibition of young Sunday from modern “ classi- person erotic and of violent whole length of a “difficult" be applies the feathery much native fishing village. made aware of the comfort and striped blouse, the loosely- Scottish artists is shown in cal " to modern popular, but it inward intensity, they make an song-cycle without benefit of of Impressionism and the whole strength of these familial ties. crashed leaves of the tree BOllany’s tradition is a Nordic Scottish Art Today. Artists at bridged a wider gap than any. arch of rising urgency and translation was an impressive painting is suffused with light. * under which she sits and the one, nurtured by artists such as Work 1986. The Edinburgh Going from Das Buck der reflective fall which supplies feat, and achieved with no This painting, needless to say, Beckmann, Munch and Eosor. The Mirror and the Lamp at College of Art has opened its hdngenden G&rten, Schoen- the only dramatic structure. resort to operatic passions. did not meet with official brilliant reflections in the water The early paintings, many of the Frultmarket Gallery is about magnificent sculpture court and berg's first atonal masterpiece, That overall shape was. I With such interpreters, the approval. encapsulate the qualities of . which take the form of a trip- human identity. Lest that studios to 13 artists who are to Sondheim might well induce thought, the only feature that power of the music could make It is easy to see why the immediacy which were to be- tych. have inescapable religious formidable it showing completed work there The neatly Miss Hirst and her pianist John its own case. young Impressionists so much come the hallmarks of Impres- should sound too the bends. way was overtones which recall Grune- must be said that it Is not neces- rraw and will be working in smoothed by some Brecht/ Constable left insufficiently Miss Hurst was sharper than admired Delacroix. Besides his sionism. w aid’s great altarpiece at Isen- sary. in order to enjoy the works situ during the Festival. Some Eisler songs and a Stein/Brooks clear. Otherwise their perform- Constable in the Brecht/Eisler grandiloquent historical and The exhibition ends with four helm. But Bellany is anything on view, to follow too closely of the articles wil be familiar to mock-pop “ Medley." But 1 am ance did fine, committed justice numbers (he is a bit too fasti- mythological paintings he was very freshly painted landscapes but derivative. His visual langu- the argument of the selectors. gallery- goers in London only guessing that the Stein and to one of the last great song- dious to give them the intended still lives and by Sisley, redolent of light and a master of fioral age is that of a late 20th century True, even before leaving the through the many exhibitions the Brooks were respectively cycles that remain almost un- vulgar colour). The Stein/ lightly air. It is cot a difference in- and seascapes. His man, all too aware of the fragil- street to enter the gallery, the which have featured young Scot- Gertrude and William: a pox on known to the musical public. Brooks was an in-joke; the the subject Separates ‘ painted panel of boats in matter which ity of man's situation in this visitor finds himself reflected in tish artists during the last year, the Summerscope non-pro- Schoenberg’s piano-writing tacky piano-arrangements of Monet, Pissarro harbour at Dieppe, executed in and"Sisley from post-nuclear age. In the later a large mirror which records and it will be an enlightening gramme, which also failed to here is astringent, muscular two songs from Cabaret proved prefigures their .forebears the early 1850's but the tech- paintings be. hides his fear and him like the eye of a camera. experience for visitors to see give any description whatever and rigorously expressive; Con- unsaveable. Constable then Monet's early marine views. An nique of the divided brush- horror behind many masks and This is a found object which these young people at work. of the Schoenberg song-cycle stable was immaculate with it. ceded the piano gracefully to let alone Stefan George's texts It often amounts to an indepen- Daryl Runswick, who with —and thus left the audience dent commentary on the texts, double-bass assistance conjured clueless about what it is about. leaving the voice to fend for up the right cocktail-lounge The Garden Girls/Bush Leaving Das Buck in unfathom- itself. Miss Hirst’s perfect sound at once for his own songs “ able German while everything pitch obviously gives her an and for Send in the Clowns." Martin Hoyle else was delivered in Miss advantage, and also the tessi- Miss Hirst matched him in Hirst's dear English just tura of the cycle—which is as spades. Why is it that British queered the well-meant pitch. uncomfortable for most mezzos musicians can take up the Birdsong. In a well-tended dignity, social responsibility; suddenly accepted by the others after Chichester and a charm- as the old duck-woman who In fact The Book of the as it is for most sopranos American vernacular so well, garden a woman sits by Hie sun- but is finally disillusioned by at their secret drinking party ing Perdita in Bristol) can knows no other home, complete Hanging Gardens tells no story: seems to fit her voice like a when British actors are mostly dial reading; squash rackets the rejection of her application without explanation. The first clarify the backbone of the a distinguished cast its 15 poems were chosen by glove, but musicianship and so tin-eared about it? . - for parOle. half needs ~mqre^ Impetus, a framed . tossed aside. A girl sprawled 1 drug-pusher. gazette Simon Stokes directs on a set the grass sunbathes They The chunkBy masculine Jock consistent ' thread.' Not’ even Llewellyn’s exuberant black fay the aptly-named Geoff Rose on ~ chat of Scrabble, Trivial Pur- is a foul-mouthed and violent* Sophie Thompson (good- to see prisoner and Doreen Mantle— that surpasses even the custo- suit. The woman has been ... Scot in her forties. Her loathing this young^actf&ss in. .London .. casting from strength.indeed mary Bush -design standards. away (she hesitates .slightly at of old Aggie the duck-woman Crosse’s ‘Array’/Albert Hall the word) lor some time. reflects the unconfessed fears She stalks off (“I have soma that she may end up as a home- Clements crochet to do ") when a cheery less recidivist. Andrew black girl jounces -on the sun- Apparently poles * apart bather and, after a playful socially, morally, temperament- The first of the two BBC it does begin with a highly vincingly successful example of tussle, runs off with her shirt. ally—Mary and Jock are drawn commissions contained in the virtuosic cadenza before the a thinly populated genre, The note of disapproval is together after Mary, caught 1986 Proms was introduced in strings steal In to begin the superbly presented by its taken up by the guxnhooted old with alcohol, has refused to Saturday’s concert, given by first movement proper, and the startling young soloist and by woman who feeds the ducks. grass on her clandestine drink- the BBC Welsh Symphony soloist is rarely silent. But it the BBC Welsh. “ This was the first open, prison ing companions. Initial loathing, Orchestra conducted by James seems throughout very much communica- in the whole country. . . . Now a groping towards Loughran. Despite its rather an equal partnership, with tion, tenderness that it’s ruined. They're shoving and the forbidding title, stirring uncom- thematic loads evenly distri- On Friday evening, for the anybody in.” finally manifests itself in a kiss, fortable suggestions of Prince- buted. second of their two concerts Jacqueline Holborough, the provides a marvellously intense ton technical complexities, The core of the concerto is during the week Edward been with Clean of brilliantly controlled Gordon Crosse’s Array proved in its slow movement, which Downes and the author, has women. BBC Philhar- Break, the touring company acting from both to be a highly approachable unfolds a serene diatonic monic brought a programme Jock, in her - she formed with women ex- Maggie McCarthy's and thematically striking work, melody. long limbed and flilly attuned to the Proms’ gruff, defen- prisoners, since 1979. The enter- mannish clothes, a three-movement concerto for hauntingly evocative, its first Italian theme: Walton's Violin prone bouts of paranoia, prising Bush is staging what is. sive, to trumpet and string orchestra presentation given to the concerto (with Iona Brown an O'Brien’s futtery surprisingly, her first full-length and Maureen which puts the remarkable trumpet doubled at the octave elegant, slighty detached determination as Mary are mem- strings, play; and it turns out to be accomplishments of the young by one group of and soloist) and Respighi's Pines of orable. Miss O’Brien has long an exciting event. Her. gift is Norwegian player HSkan Har- accompanied with thrumming Rome, prefaced by Berio’s excelled at the neurotic be- another. Afterwards for characterisation, not yet for denberger to rigorous test. pizzicato by Epifanie. The Berio does not neath the prim, the angst the Strings take over the melody lot; but The Garden Girls wear as well as it ought; written a-quiver under the good breed- Trumpet and strings make a while as some of the best acting cur- to themselves, the precisely 25 years ago it now S This consummately judged satisfying combination, whicb rently on view in London. ing. trumpet supplies decorative epitomises a whole school of perfor ance is a matter of Crosse exploits with great five inmates we meet, m arabesques around it. It is a writing for voices and orchestra 01 the uncompleted ges- resource. The large body of interesting are Mary reticence, simple idea for a movement yet from the 1960s In which a con- the most tentative advances and strings is terraced in three and Jock The former is tremu- tures, highly effective here, and the ception of texts seems to impulsive withdrawals, delicate layers, from solo quartet up- prim, even prissy: the whole concerto is worked from become an exercise in intellec- lous. vocal shadings: and is the best wards; through their varied educated middle -class woman these quite straightforward con- tual raodishness. Of course thing she has done. textures the trumpet is able cepts. using a minimum of who cracked up under pressure Berio is incapable of inventing the play lacks a to penetrate with total freedom. fire to her employer's Structurally, thematic material. sounds which are not tellingly and set scenes of Alastelr Muir The element of overt display in desperately backbone. After crafted, bur he is business. Sbe clings Suzette Llewellyn and Doreen Mantle is restrained, though Once or twice it does seem capable of bitter hostility we see Mary the work to moral standards, personal a little too stringently rationed: music which lacks long-range the motoric Stravinskian ele- continuity and is content to pro- ment in the first movement is vide only momentary excite- frugal to the point of under- ments. Elizabeth Laurence was nourishment. But otherwise, the soloist; she is a singer who right up to the trumpet’s throw- seems to advance in confidence and accomplishment with every TN* advwtiwmant Bppeare as a matter of tecoid onty. These Bonds hove not been £ 8-14 away phrase with which the New issue • August appearance. registered under the United States Securities Act of 1933. Neither these Bonds nor any Arts Guide concerto ends, it is a con- 12. 1966 August portion thereof may be offered or raid directly or indirectly in the United States of • America, or its territories or possessions or to nationals or residents thereof. Opera and Ballet neth Jones sings Aida, Franco Boni- soQi Radames, and Fiorenza Cossot- /Barbican Hall NEW YORK to Amneris. Also La Fanrinlla del Maazel & fireworks West conducted by Mourizio Arena. New York CMy Opera (NY State Thea- Olivia Stepp, Giamplero Mastromei Dominic Gill tre): The week features the new pro- and Giorgio Casellato Lamberto. ductions of Don Quichotte, conduct- Andrea Chenier by Umberto Giorda- The penultimate evening on times set sparks flying from the no, conducted by Gianluigi Gelmetti ed by Mario Bernard: and directed Saturday of the Barbican's very opening page. The orches- with Nicola MartimaccL by John Copley, along with Carmen, (28 151) Summer in the City festival tra were on fine virtuoso form: Macerate: Arena Sferisteno: II Trova- Die Fledermaus and Madame But- (sponsored this year with ad- but their virtuosity in the first tore conducted by Anton Guadagno terfly. Lincoln Center (870 5600). mirable discretion and sensi- two movements sounded a Out-of Towners Series (Dance Theater wtth YasuJco Hayashi, Fiorenza Cos- tivity by Shell) was a lively shade clinical, self-conscious; annual sotto, Lando B&rtolini and ivo Vin- Workshop); The ninth invita- affair: jazz in the foyer before- the spirit wan't yet airborne. tional mime and perfor- co. CavalJeria Rusticana and 1 Pagli- dance, hand, a concert of Beethoven Quite suddenly—these moments mance whirlwind features this week aoti conducted by Alain Lombard London Sym- Credit Cprporation and directed by Ivo Guerra. and Mahler by the are as clearly defined as they Mercedes-Benz Steve Krieckhaus from Philadelphia Copp& phony Orchestra under Lorin are unpredictable; ihe turning with his Missouri Drivers License ia, danced by the Ballet National de Maazel, and on the lakeside ter- point came in the first page of Tue) and Deborah Anderson Marseille, with choreography by Bo- Connecticut/ U.S.A. (Mon, a firework dis- Norwalk/ land Petit (who also takes parti race afterwards the trio of the Funeral March from Columbus with In Your Face the LSO’s (40735). play to accompany the performance took wing. (Tbiur). 10th St w. Of 7th Av — Brass and Wind Ensemble Everything about the finale, its (924 0077) 7,000 PARIS watched by a crowd impetus, its charge, the quality Summer Stage (Central Park): Free strong. o£ its texture, was altered. new-dance series. Nina Martin, Me- J. Peri: Eurydfce by the Jean-Marie began S. 100,000,000 The musical fireworks Maazei’s shaping of phrase in U $ rian Soto and Fepose Osorio Triiffr company armAirteH by late. LSO's account of (Thor). BandsheH at 72nd St 6 The particular, and his dovetailing trice Berstei, choreography by the start 1993 Beethoven's Eighth at of a dozen different tempi, was U.S. Dollar Bonds of 1986, due O’clock (397 3156) • Welkenhuyzen (Wed 9 pm) Auditor- 714% of their programme was clear masterly; ium des Halles, 5 Porte Saint-Eus- the LSO's response and cogent—Maazel’s concise, vivid, an LONDON tace (47649080) was exact. It was unambiguous direction allows exhilarating tour Festival Ballet continues at the Royal de force, of no rough edges or loose Festival Hall (928 3191) with Coppel- WEST GERMANY which redeemed all that came strands. But it was a hot. humid ia. before it. the spirit of the Bayreuth. Tristan and Isolde, pro- evening, and As a firework aficionado. I a certain TOKYO duced by Jean-Pierre Pqnnelle. con- performance lacked should add a word of praise for Capital Markets Credit Suisse First Boston instru- Deutsche Bank Patrick Dopond and stars of the Paris ducted by Daniel Barenboim. Wolf- electric charge—the the show after the concert, in any case Limited Limited Open Ballet: including Sytvie Guil- gang Wagner nod Horst Stein’s Die mental forces were which was devised by one of lem, Monique Loudieres, Fanny Meistersn^er; Peter HaiTs Ring; an uneasy compromise, not England's most talented pyro- Gaida, Lynn Charles. Bon Soir (new Wolfgang Wagner end Guiseppe quite small enough to achieve technicians, the remarkable work by Dupont), Giselle. Pirates Slnopoli’s version Of Tatrehancgr an authentic sense of Classical Reverend Ronald Lancaster Morgan Stanley International and Others. U-Port Kflni Hoken (92129 221). nor quite large Morgan Guaranty Ltd intimacy, from Huntingdonshire. His dis- Hall. Gotanda. (723 2356; 490 5111). enough to sound wholly and play for the Barbican was a VENNA unauthentic. impressively A delight, and perfectly scaled to ITALY good, but not a gripping, per- the venue: a hundred Vofisoper: The Magic Flute; Die Fled- times Manhattan - formance. Chase Verona: Arena di Verona Aida a reviv- ermaim. more inventive than the extrava- - first symphony too gent bombast, Limited al of the successful 1913 edition Wiener Blot and Die Entfuhrang ons Mahler's for example, of Hintinriwi rtflniql fWn ami di- well, but without the the Thames Jubilee by dem SeraO, alternative daily at began display rected by Gianfranco de Bosto. Gwy- Scboahnnm electric charge that can some- (and a hundredth of the price) i »nto————————————eeeooes V ‘\ — — . ' - . v / * c .% August 12 1986 Financial Times Tuesday 10 STOCK MARKET AUTOMATION FINANCIALTIMliS BRACKEN HOUSE, CANNON STREET, LONDON EC4P48Y Telegrams: Finantimo. London PS4. Telex: 8854871 Telephone: 01*2488000 Tuesday August 12 1986 well regarded software ITH LESS THAN 90 By Alan Cane package. days to the “Big Bang" Hoare Covett. now -part of which the • will change the US financial conglomerate W '' London Stock Exchange irrevoc- Security Pacific and the parent ably. the stockbroker sighed ' T -S'- of clearing member Fics, has wearily and reflected on the - ' Egypt calls ? • > had to have a special dispensa- exasperatlngly slow progress tion from the Stock. Exchange company was making to- his enable it to continue using wards a new, computerised to the computer bureau- Centre- settlement system. file for settlement weltput the its friends “Our computer specialist is date of Big Bang. on really very good,” he mused. Centreflle. a National West- the little sign of recovery in the “It's just that he refuses to EGYPT, since the visit by minster bank subsidiary, at one Jeru- short to medium term. The gov- be constrained by what he sees late President Sadat to time the UK's major stock pro- only ernment is already well behind as an artificial deadline like salem in 1977, has not cessing bureau, decided to get political with debt repayments, the most Big Bang.” built up a substantial out of the business .two yean balance but also made pressing of which is the $500m credit Artificial Big Bang may be, in the face of unacceptable appreciate how due this year on its $4.3bn mili- ago sure that others but it still seems inviolable. development costs. much its diplomatic weight and tary debt to the US. Mr Patrick Mitford-SIade of Govett is likely to con- strategic geographical position The Egyptian response so Cazenove, chairman of the pro- Hoare using Centreflle, however, affect any assessment of future far has been primarily politicaL jects committee of the Stock tinue of the year. It Middle East stability. It is that President Mubarak visited in Exchange, told an audience of until the end Fics 1 first client, but investment which it Is now seed- quick succession three of his worried stockbrokers last will be ing to draw on to alleviate a European creditors — Italy, month: a< We are aware that delays in software develop- the clearing mem- mounting debt crisis. France and Britain — and last some firms are facing diffi- ment mean ber will not be in a position to In the 16 years since the week impressed on Mr George culties and we are doing all offer a full service by October of President Nasser, Bush the need for US assists, we can to help them. death “ ..... Egypt has moved out of the both through debt rescheduling But let us not be fooled, Big 27. Soviet orbit firmly into the and the conversion of project Bang cannot be delayed.” 0 CGF and NMW have been Western camp. It has signed and aid into cash grants. Cairo The deadline is October 27, pushed almost to breaking sustained a peace treaty with would also like to see the IMF when the City abandons mini- point by the flood of new busi- IsraeL The danger of another drop its insistence on a perform- mum commissions for stock ness. CCF, for example, now major conflagration has been ance-related stand-by facility transactions and so unleashes a has 25 clients using its package, reduced and Israeli leaders can and adopt the more flexible string of fundamental changes seven on a bureau basis, the sleep more easily at night. approach recently shown in tts in British stockbroking. rest on their own computers. negotiations with Mexico. The present distinction are clearly still The extent to which President Some firms between jobbers and brokers Sadat's enduring diplomatic struggling to find a light at the Global schemes will to exist, market initiatives dictated by eco- cease new end of the tunnel. But bow were certificate the broker groups will emerge and with Once a bargain, here shown as physical stock to a At settlement Talisman mores it into bugtng fact, is the overall nomic need is debatable; the Egypt has yet to place much — serious, in less reliance on a physical a sale of stock with broker/ Talisman office which sends it the uncertified stock from the dealer’s account (5) and issues effects are not. The Egyptian on the table In return. It is position? market floor, technology is dealer acting as agent, has been to the registrar of the company selling broker dealer’s account a stock note so the broker/ economy and the morale of its claiming progress in reducing After all, tbe Stock Exchange certain to prove a key factor in agreed, details are checked, concerned (2J. He registers it to the buying market maker’s dealer can claim from his client military are now heavily sup- subsidies and reforming will not permit any of its a firm’s competitiveness. matched and posed to in the name of the nominee trading account, so completing and an instruction to the ported by Western (primarily exchange rates. More is a members to trade after October So far the “frost office" has surveillance and to Talisman company, Sepon, but issues no that half of the deal (4). company registrar to prepare US) aid and credit. Nearly one- promised. A document has been without adequate settlement attracted most attention with (1). The broker dealer, on certificate. The stock is If the market maker has sold new share certificate in the 27 third of Egypt's foreign debt of drawn up outlining a pro- facilities, even if they coaid firms installing expensive and behalf of his client, delivers the “ dematerialised ” (3). the stock on. Talisman moves name of the buyer (6). more than £30bn is in the form gramme to be carried out over firms willing to risk trading sophisticated information and find of credits from the US Govern- the next five years. How- them. dewing systems in the hope of with ment. ever, international creditors, Broker Services believes it the City be awash with securing a competitive advant- Second, the end of minimum between jobbers and brokers Charm and Talisman have to be Will These aid and credit flows especially the IMF, may be altered be completely ready for bankruptcies? Mr Michael Baker, age. commissions in London seems through two computer syteras. to take account of duel will were in part aimed at helping excused if they feel that this capacity larger Bang, situation which, of the Exchange's settle- “ office ’* certain to show up the cost of Charm and Talisman. As the trading, a Big a head is a path down which have The back where the Egypt to break free from Presi- they settlement in an unfavourable accompanying article indicates, number of market makers, new to judge from the nervousness ment division does not think so. before. checking, accounting and dent Nasser's legacy of a heavily walked surveillance market, is not enjoyed position being closely clearing which goes into the light the introduction seven years requirements and in the But the is centralised. grossly inefficient They may seek solace in companies. settlement of bargains takes Mr Peter Bennett, newly ago of this central clearing other features of the new mar- by many monitored. form of economic management, global schemes for reconstruct- structure. The members' “ place, has been relatively appointed managing director of facility was a major step for- ket public Of our 200 or so members, the prime objective of which ing Third World debt and link- Among the more neglected. Financial Clearing and Services ward in Stock Exchange auto- own settlement systems must only a dozen or so—most trig jobs (not neces- ing interest payments to traumas in the past few weeks was to provide (Fics), one of two “clearing mation. work smoothly with the modi- are in trouble in that commodity prices but this is Yet efficient settlement v have been: firms— sarily employment) and cheap ’’ fied Talisman. just as, if not more, important members (a member which Individual members have to they still really have a lot of food for a population now grow- unlikely to impress a country to profitable trading than flashy does not trade on its own decide for themselves how best One company, Penney Easton • Quilter Goodison, the family work to do before Big Bang. We of about lm such as Egypt which is utterly ing at the rate ” account but clears other com- firm of Stock Exchange chair- are helping them as as we convinced of its " special case market-making technology for to automate the settlement of of Glasgow, has decided to con- much every nine months. panies' will be status. two reasons. First, errors and bargains) which accounts between themselves tract out bath its settlement man Sir Nicholas Goodison, can and they know they are- on Just how “ special ” the case failures in settlement can be operating in the Stock Exchange and their clients, private and and trading administration. Last now owned by the French bank our black list'* Military debt finan cial alter Big Bang, argues that institutionaL Paribas, at the 11th “ the last resort, we believe is supposed to be was under- disastrous. The com- Their options week it got rid of its front and decided In are President Sadat badly scarred lined in February when riot munity still shudders at the settlement costs In London include using a computer back office and turned instead hour to abandon plans to build they could be squeezed onto CCF by the food price riots in Janu- police went on the rampage and thought of the $30bn debt the too high, at well in excess of bureau, installing their own to Broker Services, the second its own back office because of or NMW or we could offer them ary 1977, never again attempted more than 100 people were Bank of New York ran up at £20 a bargain. system, whether packaged or clearing member and a company doubts over whether the system a personal computer to Input Federal late last Exchange itself tailor or, after set jointly in time. It their to tamper with the system of killed before the army restored the Reserve The Stock made, October up between Barclays could be readied trades as we do for . veiy state subsidies which has order. Lurking behind that year when its settlement compu- manages the clearance and 27, going to a clearing member. Bank and NMW Computers, a has turned instead to CGF, a small firms. It would not be 1* largely protected the Egyptian violence is the spectre of ter failed. settlement of bargains struck Change is necessary because major stock processing bureau. stock processing bureau with a elegant but it would work. consumer from upward move- Islamic extremists causing far ments in world commodity worse disruption in the wake COMPUTERISED SETTLE- theless, that there is no pros- prices. President Mubarak, in of savage import cuts and MENT has been one of the pect of failing to meet the spite of a stated preoccupation reductions in subsidies. success stories the London FOR THE FUTURE of TALISMAN A October deadline. Estimating with the problem and plentiful This is a risk which Egypt's Stock Exchaoge. The two the likely volume of bargains Talisman, when it was But Talisman was designed computer program code In complete and In the middle international and domestic creditors must bear in mind but computers. Charm and Talis- ” after Big Bang is another inaugurated in 1979, revolu- for single capacity trading the 67 sub-systems. of sendee testing. advice, has done more but is not one which should dominate man, one concerned with matter. tionised the settlement and tuned to the old market still only nibbling at the edges. their thinking. President matching bargains, the other Tbe problem with modify- The Taunts project, which business. It simplified it, structure with a limit of 15 The division forecast an With Egypt importing up to Mubarak could do far more to with final clearing, have ing an old system like will “ demateriallse ” share centralised the most labour- Jobbers only for every secur- average of 18,000 bargains a 60. per cent of its food the convince Western governments settled over 27.7m bargains Talisman rather than creating certificates for ever (so share intensive operations in ity. day for 1985-86 with peaks In burden on the national ex- of his commitment to change, ever the first seven years of a new animal like Seaq is the certificates will simply exist brokers’ and jobbers' offices the 30,000 region; in fact, the chequer and the balance of pay- not least by selecting ministers their existence to a total There were no facilities way changes In any part of as electronic records In the and cut staff overheads. average was 21,000 wift peaks ments was mounting sharply who worked together as a value of £354-5bn. for brokers to trade as prin- the computer code affect computer) and a project to Member firms settled their close fo 50,000 bargains day. even before the price of oil col- single, coherent team. A new cipals rather than agent? rnd other, apparently unrelated centralise a They have never lost a transactions only with the all payments lapsed. Now it is fast becoming cabinet, with a spread of there were no facilities for parts of the overall system. between major institutions “For 1986-87, we planned day’s service and on no more centre and had no relation- intolerable. Revenues from political and economic talents onesided bargains. and the Stock Exchange, are on tbe basis of an avenge at than ten occasions have there ship either with each other Some 45 of the 67 sab- three of the country's main pro- and linked to a publicly under way, although they will 25.000 bargains a day for the been interruptions to the ser- or with the stock registrars. All of that had to be systems have bad to be viders of foreign exchange—oil, announced programme of not whole year with sustained vice lasting over three horns. altered and facilities for altered be implemented before tourism and remittances from reform, could make it much The key to Talisman is a to fit Talisman for the levels of several weeks with extra trade reporting 1988 and 1987 respectively. Egyptians working abroad easier for Egypt’s friends to be Only £18,890 has been paid central nominee company, — time market after Big Bang: the market running at 40*009 out in that time settle Sepon (Stock Exchange Pool stamping of bargains, That leaves, for comple- have fallen alarmingly with generous at the end of the year. to To date. Talisman has been bargains a day rising in peaks claims made against the Nominees). All stock sold is whether dealing as principal tion in the next two months, 50,000,'’ successfully changed to cater to says Mr Baker. . system for faulty transferred into this central or agent — added. Mr Baker payment facilities con- settlement. for an increased number of and “In addition we have a con- So it was with some trepi- pool and purchasers receive emphasises the size of the trols to limit liabilities “ market makers in each tingency plan tut would en- dation that Mr Michael stock from the same pool. task: Talisman is not a together with changes in single system, but a complex security and to allow lT\en able us to nm at 40,000 bar- Baker and his team in the Stock is handled entirely trade some of the sob-systems to interaction to as principals. Sub- gains a day as an avenge Exchange's settlement divi- in electronic form (“demat- of 87 separate reflect the amendments to Freedom for subsystems systems for the major part with sustained levels of each a substan- sion approached task of ”) while It tax duty brought in the erlaUsed under- of the work, which will enable by tbe 60.000 a day for several modifying such a stable tial size. Chancellor of the goes processing in the system. Jobbers to have available to Exchequer weeks. We should be able to system to the challenge “ in the last Budget. meet It is materialised again for There are about three them all the facilities of cope with maximum peaks of of Big Bang. unit trusts delivery to the purchaser. quarters of a million lines of brokers and vice versa, a?e Mr Baker believes, never- 90.000 bargains a day.” THE UNIT TRUST business in standard to convey a genuine Britain has operated since the health warning to the effect agreement Second World War within a that unit prices may not be Dean condemns with Port. The result was the auction fiasco. None relatively tough regulatory what they appear and that units of For details of eveiy the Shiff properties were, in framework. It has also, by thmerit able to Dean two Auction 1986. In addition to company activity aid the edges. of being and right are made, there is though I would not go so far, I offer investors protection of the leading “quidae” books. Mart, a newly-formed land and financial Information, it gives you a share price record, a A policy of freedom with more: “The size, frequency, agree that the first edition of directory of Including one by newscaster and property auction house, has not registered offices, telephone numbers, of disclosure has the merit of through a spread of risk. They quality and professionalism, of World Airways Guide, reissued names senior executives and royalty interviewer, Sir Alastair been having too easy a time in details of each company's are also a useful source of risk their substantial output of by ABC International Registrar and tts Sponsor. intellectual coherence. In a Burnet, were printed in Spain. Israel lately. to cele- capital for industry and com- papers and magazines have all brate its 40th anniversary, period of deregulation it also “You are quick enough to tell is merce. To put unnecessary the says As the man behind Israel’s brings the unit trust manage- us of the superiority and tech- improved,” League not half as prosaic as it sounds. obstacles in the way of the unit admiringly. “No other organisa- first property auction in Tei ment groups closer to the even nical skill in your industry (not The picture it evokes of the trust movement supporting tion of the extreme Left can Aviv a few days ago has had playing field that all the more unknown for the occasional leisurely life-style of travellers smaller business. whether boast such influence, resources to bear responsibility for the heavily regulated players in the labour relations problem),” she in 1946 contrasts vividly with quoted on, say, the over-the- and experience.” event turning out to be a flop. financial services business axe says in an open letter to Burnet the experiences of tbe counter markets or not quoted guide’s so anxious to attain. “So royal still on Communists, Only two minor sales were Excel how come a right More 85,000 constantly jet-lagged sub- at all, is socially undesirable. The department's new pro- occasion carrying your name whether of the fundamentalist agreed of the 60 lots on offer. scribers today. posals to permit unit trust has to go abroad for its print faction grouped around the Already locked in a legal dis- Basic character Those were the days groups to set up property unit and publication?” Morning Star newspaper, or the pute with the chief vendor. Port when (according to the guide’s ad- trusts will in practice allow Other sensible features of the more liberal Eurocomuj unist has now been barred by a court She is certain, she goes on, verts) you boarded your air- unit trusts to compete on an consultative document include group, which is dominent on the from leaving the country until a the job could have been done plane with a packet of Bovril Limited even footing with banks, build- the long-overdue suggestion that party executive and gathers hefty bill has been paid for equally well in sandwiches for ing societies, insurers and other dealing commissions incurred the UK Why around the Marxism Today promotional advertising. refreshment; so? Because a rival book, pub- when you needed a visa fund management groups for by unit trust managers in monthly: “They are well moti- for pensions business. Since this managing their investments lished by Weldenfeld and Backed by Swiss investors, the most countries in Europe; and Nicholson TV- vated, intelligent, and dedicated, auction company in tended carrying is expected to be a particularly should be disclosed So the and written by to a camera was largely and must not be underesti- handle attractive market for them annual accounts. AM newscaster, Gordon Honey- any and all types of forbidden. mated." property when the Government's per- Where the document ventures combe, was printed in the West sales in IsraeL But it For £300, British Airways bookstalls There’s the rub. To the was evident that its launch sonal pensions plans gather into more questionable territory Country, got to the pad would whisk you out of London “in good tune” and retails for League, which is financed en- was intended to be the disposal momentum, the proposals will is in opening up the possibility on a Sunday morning and put £3 less. tirely by companies' voluntary of the troubled $150m property be welcomed by many in the of unit trust investment in com- you down in Sydney the follow- subscriptions, members of the empire of Haim Shiff, an Israeli Unit Trust Association, as will modities and fashionable forms Burnet's book, published by ing Wednesday. Or, if that Communist Party “ remain a businessman. was hegUtandin Uman No. 1B9SS4 the removal of obstacles to the of funny money sucb as options ITN and Michael O'Mara Publi- a bit too fast, you could take "WaiOflteBcw Hou*.Ew threat to society "—and its London EC4MHB creation of domestic and foreign and futures. Concern on this cations, and a third souvenir, by Among the Shiff properties a flying boat from Poole. Dorset, analysis details the party’s money market funds. score will no doubt be dubbed Trevor Hall and published by are the Life building in down- touch down at 13 places en penetration 1 of Institutions on town St3*ta1 Services^ Ltd. 37-45 Paul paternalistic. But to invite the Collins, were printed in Spain, Tel Aviv, a well-known route and land in Sydney on nPtoS, Street E£2A 4PB. the left.*' Declared policies public to invest in highly says Collins, because it was landmark, and a chain of hotels. the Friday. speculative assets would surely “cheaper and quicker”. Collins It “exerts an extraordinary Shiff made a contract with Israel Pan-Am charged S675 for the Such liberalism does, how- Ftese send me fua details of claims its in influence on Auction Mart to sell all London-New the Extd USM Cart ever, carry risks for the con- run counter to the department's product was first the trade union his York round trip Handbook the shops. movement" with supporters at properties through a planned but the exchange Name sumer. Property, for example, declared intention of preserving rate was more — of the unit the highest levels, and “ through series of glittering auctions at than S4 to the £. is a relatively illiquid invest- the basic character This is unlikely to satisfy contacts and sympathisers in the Tel Aviv Hilton. Position ment. The unhappy experience trust movement. That way lies Dean, who challenges: its And if you merely wanted to pros- the Labour Party it is playing of professional investors in trouble, together with the “Although Tin no betting At that point two things nip up to Edinburgh for the Organisation. a prominent role in the re-align- pension fund property unit pect of heavier regulation at person, Td wager a fiver for happened. The commercial weekend (bed, bath and break- ment of the left which is Address trusts over the past three or some later date. This would Sport-Aid against turf fancier property market in Israel went fast 11s 6d) you could charter ___ gathering pace ahead of the four years amounts to a salutary hardly serve the Interests of the Sir Alastair that neither he nor into a slump. And some of a two-seater airplane for is fid next general election,” warning here. great majority of investors for his publisher can show me a Skiff's main assets, valued at a mile. rela- Spain’s It follows that if the principle wbom unit trusts offer a book on King Carlos's But despite this, the League about 550m, were put into similar receivership. -Telephone— of caveat emptor is to apply, tively safe way to participate in wedding produced in does not hold out a bright circumstances Observer the disclosure must be of a the securities markets. in the UK" future for the CP. Noting that Shiff then tried to break his '- - 1 6* Financial Times , Tuesday August 32 1986 n Peter Riddell talks to Mr John Patten, the UK Housing Minister Letters to the Editor Testing a political market 9 f! . A NEW political slogan is about private sector" will have suffici- Practical solution required for inflation accounting to be launched by the Govern- ent impact in reversing its long- ” ment. After the “ right to buy term decline. From the Financial ConfroBer, the Accounting Standards Com- respects—especially in respect ments In companies accounts, “ there will now be the right to To Labour, Mr Patten's pro- Economic Forestry Group are stock work-in-pro- which accurately reflect the mittee (August 7). You of its and rent.’* posals are inadequate. Opposi- Sir, correct in your assumption that gress adjustments. In the case economic effects of /nanging —As financial controller Housing policy is being tion housing spokesman Mr Jeff industry, the prin- prices. will oppose is of a pic and chairman of the a large number of financial of my own Wbat we reassessed not only within the Hooker, who has been primarily managers in ciples were explored in depth a highly theoretical exercise Institute of Chartered Secre- industry and com- Government but also by the responsible for a major rethink merce would auditors, and it was lading in practical application taries and Administrators welcome a prac- with our building societies and others of the party's approach away solution for that not only would it and value that is meaningless accounting and taxation .'group, tical to accounting accepted closely Involved, Mr John from traditional municipal hous- inflation. The the have been difficult and costly I have spent more time contem- chairman of l'o most parties concerned. I Patten, the Housing Minister ing. argued in a recent is correct assertion it could have been plating the various attempts ASC in his to produce, suggest that that is why the since last October, stresses the Commons debate that much and theories .inflation that the accountancy profession positively misleading and would political on financial Press in its wisdom importance of the more needs to be spent to build atten- one. This accounting than 1 care to has consistently drawn have benefited no shift in an interview on housing and to repair at a rate faster sub- chose to ignore either CCA in- remember. Wearing both hats Con to the shortcomings of point has been made in policy with the Financial Times. than the present pace of hous- and formation or the lack of it in I_ am aware, and supportive, Of historical cost accounting, and missions to the ASC, After being “ahead of the game ing decay. but I suspect, largely the need to account for the the need for reform. accepted, published accounts. on the right to buy" (the pur- Mr Patten denies that the we the ignored. effects of changing prices. Where differ is on F. J. Grimwood. chase of council owned -proper- answer is more housebuilding. solution to SSAP company, and insti- the problem. My my Forestry House, ties by their tenants), be now He points to the need to bring That, said, I .too must take practical 16 was a nice theoretical exer- tute, will support any sees big opportunities back into use the 600,000 to for the . issue not only with your good- reform which lead Great Uaseley, cise but totally lacking in prac- measures for Conservative Party in rented 700.000 empty private sector application in many true and valuable state- Oxford. self but with the chairman of tical to and social housing. houses and flats and the The " right to buy " pro- 115.000 empty council-owned gramme has been the corner- properties. The growth of legal aid Radical change in South Africa stone of Conservative housing He also argues that, in the policy for a decade. Mr Patten past, local authorities have reels off the figures. Since 1979 From Vanessa Watson The cost to the Legal Aid Fund From Mr H. Jmpey minimise sanctions and their spent money on new building is less. So long as the legally- some 2m people have become without thinking about main- - effects will have of Sir,-—I did not recognise the Sir, General Obasanjo’s open the blood owner occupiers for the first aided client is properly advised — tenance which should now be a legal aid system described In letter to Mrs Thatcher (August thousands if not millions of time and this autumn the as to the impact of the charge, priority. In reply to a critical your correspondent's article is a dear summary of the innocents on their hands and millionth person will take over the existence of it will have a 8) report from the Duke of Edin- under Business Law (July Si) case of those who wish to see a property under the " right to restraining effect on the blindly on their consciences. My heart Mr John Patten: a gradualist approach. burgh's committee and to an as the system under which 1 rapid and radical change in buy” legislation. The propor- obstinate litigant covered by a will be heavy but my hands official estimate that f!9bn and many hardworking col- South Africa. But its final few will be dean. Will yours?" tion of houses -wbfdi are owner- needs to be spent on repairs legal aid certificate. Many local authorities. The big in- ownership gets the Housing leagues operate. sentences should not go unchal- occupied bas already risen from and improvement, he says lawyers welcome the Report on It may be tempting to hibiting factor is that the fair Corporation and the building The reason for the enormous lenged. 57 to 65 per cent £2*bn a year is being spent. legal aid and fear not at all the describe these statements as rent legislation applies to the societies further into the pro- growth in the cost of legal aid To state that "the less the “ We’ve played that tune While even more in total is basic intervention of Citizens non sequiturs or hyperbole. But rented portion, thus controlling vision of social housing for the increase in public aware- external pressure, the greater very hard and will continue to needed, substantial sums is do to many, many people they will the level of rents and limiting those who Advice Bureau who already will be the price to be paid do so, selling about 80,000 to cannot, or do not should come from building ness of their legal rights and appear as a to prevent many emotional and " South commitment the rate of return. want, to buy outright. This their willingness to to law internally ignores 90,000 houses a year. So we're societies and pension funds. go armed struggle and thus as an Two changes have occurred to all ties in problem social problems landing on the Africa's history and place in very far from having satisfied with the of to farther them. It is a market- example of spine-chilling open up the market for the “ This emphasis on repair and desks of solicitors where they .the world as well as making no that demand.” he says. what he describes as the most led growth. I do not know of hypocrisy. private sector. First, the Build- maintenance also explains why do. not belong. An efficient apparent allowance for its However, Mr Patten accepts ossified rented sector in any any fellpw practitioners who ing Societies Act, which became the Government is wary of symbiosis already exists. Few strength and determination. H. E. Impey. that the frontiers of owner western Europeon country.” can spare, the time from an law at the end of last month, releasing all of the £6ibn of lawyers would argue that the Significantly, the General Chagfords, Pond Road, occupation aTe not limitless. It He says that it is a question already over-booked working allows the societies to hold up accumulated receipts from bureaucracy and time-wasting, in continues: "Those who seek to Woking, Surrey. may be possible, he says, to not just of private or public day to spin out interviews with to 5 per cent of their assets (an asset sales held by local coun- most cases unfairly, sbould with get up from 65 to 70 per cent rented housing but of rented legal aid clients. enormous sum) in the form of cils. In practice, only about £3bn all speed be dispensed with. and then to add several more housing as a whole — social The notion that- lawyers can direct property which they can to £31bn is backed by 'cash. Al- Let os not replace that out- percentage points through housing which can be provided ' though the system of capital >!. in effect write their own partly rent out. Second, the dated infrastructure with an shared ownership schemes from all sons of sources. ¥.». cheques for legal -aid costs is Government announced in the controls is currently under re- of government whose func- Designer pension schemes (which involve part renting and Mr Patten readily concedes arm House of Lords last month that view, Mr Patten confesses to a absurd. The costs draftsman, part outright purchase). But he that the private rented sector tion would be to decide which it introducing “ somewhat nannying and diri- whose role is inaccurately would be an so citizen does not think it is going to be is “one of the worst minefields " would . have access to From Mr A. Bolado. I can envisage a situation where- amendment in October to re- giste approach: he is reluctant described, prepares, for review possible to go much beyond of contemporary politics.” The state-funded legal services. by insurance companies with move controls from the rented to make a large sum of money by the court, in a process known Sir,—I feel constrained to that Government, he stresses, has trust those function it attractive literature purporting portion of shared ownership. available in a sudden burst misleadingly as taxation, nearly I who reply to Mr L Walker’s letter Indeed, building societies, given “a clear undertaking that to show the advantages of per- since it might lead to supply all legal bills save those will be to decide these im- (July 29) concerning pension like The two moves have been we will not legislate in any way aid sonal pensions for income in the Halifax and the side problems in building portant matters will be better in- scheme design which contains co-ordinated and, as Mr Patten on the Rent Act before the the that are small enough to be retirement purposes as opposed Nationwide, have begun to talk industry. formed than your correspondent. some most interesting points. of the limits of their business stresses, have been made in next general election and tirre assessed by that branch of .the to final salary schemes which All this is. of course, very Meanwhile, I shall continue to Certainly the Inland Revenue in terms of mortgage lending. response to demands from tbe would, ariyway, be total Law Society whose business it could be misleading. Even political. Since 1979 the labour in the legal aid vineyard, maxima are without any logical Patten says he is “beginning Housing Corporation and the security of tenure for existing is to administer legal aid. By a sophisticated financial people Mr Tories bave broken up many -thankful as always to be paid basis if one subscribes to the to sense as a practising poli- building societies. He believes tenants.” similar process the costs pay- might find it difficult to “slit of the big council estates which within 18 months of conclusion theory that pensions are pri- tician what tbe building they could quickly unlock tens Patten’s approach is able by the unsuccessful liti- the chaff from the wheat" in Mr had traditionally provided much of each matter and only have marily to provide an income in beginning of millions of pounds of gants to the successful are many publications issued today societies are to sense necessarily gradualist, almost of Labour’s electoral power per cent retirement. In many cases a investment. Fabian, moving stage reviewed. 10 deducted for my insurance companies regard- as businesses in looking for a stage by base and where many voters third final salary by High Court work (by the will drop of one of new business market, so we've He argues that an expansion and gaining consent in the pro- their The system of repayment ing the relative merits and dis- who bought homes to of Parliament). in retirement can mean, for got to look for a new political of ownership (cheaper cess. He points, with pleasure, advantages of personal pensions. shared switched party allegiance in the .Legal Aid Fund of the costs many individuals, severe finan- market in bousing, having won than a not only to the acceptance by clear conventional mortgage) the 1983 election. Mr Patten of successful litigation prevents Vanessa Watson. full I would wish to see and - cial hardship. Even with a game, set and match on owner allows people to a Labour of the “right to buy" Forge Cottage, concise comparative tables show- more get is not going to re-create such unfairness tb the client whose commutation of one and a half occupation.” foot on housing ladder but also to the all-party support '. the and i . his t ing the income which could be Labour strongbolds as private funds are financing his Wadhurst, times final remuneration as a The first stage is to broaden others to obtain a slightly for changes in the current bill derived from personal pensions, policy of breaking down tradi- suit The net effect is the same. East Sussex. tax free lump sum an individual the base of owner occupation. larger property than they could to extend the limited deregula- group final salary schemes and tional demarcation lines would be hard put to make up Tbe current Housing and Plan- previously have afforded. He tion of rents under the assured between owner occupation and SERPS before any individual " ” tenancy for the lost income even by the ning Bill has Introduced bigger also says it is very import:/’’- scheme to property renting shows. he talks ' 1 When ' • bis future welfare and .• i commits which has for i most judicious of investment discounts for those buying flats. that such schemes should help been empty over of creating a new political • ’ * the welfare of his family to the * uT^S: Last rights of pre-emption strategies. But the most significant recent job mobility and assist people a year. blandishments of personal pen- market in housing to match <' » iiX, i purchase schemes are innovation concerns shared to move from tbe north to the Tbe major uncertainty is the new business of the Money sion scheme salesmen. market From the Chairman, tutions should take the lead in speculative in nature and ownership. At present, there are south. whether this consensus building societies, he is also • J Wider concerned that • Share Ovmershtp Indeed, I am only 25.000 such schemes Equally significant in s about Mr 7 . , ensuring that directors choose individuals are induced to pur- approach to the “reintroduction thinking about potential Tory . Council the Government bas not pro- year, mainly involving Patten’s that whatever is .the most economical chase on the basis of future every eyes is shared of social housing funded by the voters. duced such a table using realis- r..' r growth' performance and . Sir,—-You do well to" point out (or least. disadvantageous), fund 1 , tic assumptions. I suspect that (Lex.' August 6). that the contribution levels.' I certainly re- method of. raising, new capital. .of money this is another example of a - having a ‘ • • moval ofy . j. Stnekiv. -Exchange see the point m *•*! The sanction of refusing "to vote restrictions on issuing new purchase pension arrangement good idea not being thoroughly for the next annual exemption through which shares and the. requirement for underpinning a final salary thought for * t i- is the weapon they will have to not as the only politicians in general are to - l annual renewal of exemption scheme but >,- .• • • . *e: band. : which has effectively taken means of providing an adequate blame. their place lays heavy responsi- It is mud to be hoped that pension in retirement. In a As yet, no mention has been bility on institutional investors. this burden will not be carried group scheme an individual made concerning non pension .• - ; I . This responsibility /however alone by the Pru or M & G or knows, within certain para- benefits available under a Is not to 'be conceived simply the very few other institutions meters. wbat he will enjoy as defined benefit scheme ie death who have an in terms of preserving, some honourable record an income when his employment • In service and death in retire- in these matters. fixed percentage of a company's ceases. • A money purchase ment payments for widows and share capital. What is much Edgar Palamountain, scheme cannot provide this. dependants for example, which more important is that the insti- 94 St Paul's Churchyard, EC4. I would be most interested to must be costed separately by a learn what the TUC would think personal pension. I suspect that GENERALI ’ final salary . i . t of changing from a were this to he done personal pension arrangement for its pension would lose much if not, Generali ’ Assicurazioni -T.C. 5 .M Taxation and the well paid members as opposed to money all of their apparent appeal. purchase. From Mr G. Miller limation, but I do not believe this My concern will be the fate of A A. Bolado. 1985 Highlights requires that those who earn thousands of employees in (Deputy Pensions Manager), wV.- '-j Sir,—The Prime Minister is u many v *- Mardon, reported to have been Imore should get more from the the United Kingdom when the Lawson "in- Down, from the Report of the Board of Directors censed ” at the astronomical state. proposed legislation on pensions Clifton in April of 1988. Bristol. pay rises being offered to in- It was no doubt difficult in become law vestment personnel in anticipa- the past to apply a uniform rate (000 US Dollars) 10S5 J'W- “ ” tion of Big Bang in October, in assessing tax relief, but now ever and the insensitivity of the City that Premiums written 2,023.442 1 ,502.439 ; cf we have SURAS operating in giving such large Increases smoothly why should we not Premiums coded -281.2TO —254.<».M at a time when the Government give every property owner tax Government policy winning ? US was trying to persuade industry Net premiums 1.747.172 1.338.335 i the relief at the basic rate only? and the public service to There can really he no good Mr G. Dicks in productivity growth, the From investment 402.283 312.631 refrain from paying over the reason for carrying on with the which is put at 3 per Net income f: Writing in the Financial trend of 1 Sir,— you odds. present totally unfair system, annum. Technical interest allocated lo Life funds -2m>.t»55 •115,230 U s Times in April 1983, John Muell- cent per I wonder if the Prime Mini- and 1 doubt whether there is conventional - bauer was dismissive of the pro- By eschewing Insurance underwriting result 7*J.«I2 6.5.31 ster was aware of the fact that anyone who could give an policies of demand management ductivity gains achieved by income and expenditure - IO.U'84 - W.077 her tax rules were actually acceptable reason for having a on supply-side Sundry manufacturing industry in 1980- and focusing giving these comparatively system which gives more to bas 152*87 92.013 argued that there was issues, the Government Operating profit 1 over-paid people a further in- 1981. He those who earn more. previous trends in attracted much criticism from in Income? The increase a break from properties 311.8*1 19.576 crease tax gained by changing “ the “ economic establishment.” Profit on sale of and securities . breakthrough i.*s -will have put The 1980 but that the in their salaries Is it not the case that Mueil- Unrealised capital looses on securities - O..W7 - 12,746 to a system giving basic-rate is seen to have already petered them into the highest lax latest findings show that tax relief only could be used to out by the spring of 1981." At bauer's Allocation to reserve for realised bracket and, as they were Government's approach is fund an increase in the mort- his research sug- the - - 6.565 certainly all house owners, this that time capital gains to be reinvested 18,333 gage interest tax relief rate for heginning to bear fruit and does gested no permanent effect on - wouM automatically have given suggest that many of Taxes - 3K.3.3B 25.623 everybody or an Increase in the the rate of productivity gro\.-A this not them increased tax relief on the earlier adverse judgements present maximum mortgage Now. according to Samuel Brit- Total other items - 12.6^7 - 23.358 their mortgages. Is this what policy were also - airports of above-listed fipire- boon convert rit at I lie rale of niiunv of Live 1.078 lo the l’> Hollar. Shortage of runway capacity at London’s four All Lave the year 2000 Stan- controversial and no clear way From Sir Peter Masefield. these airports is likely to have a basis, by mix of sted and Luton, between them, ahead can be seen without doubled. By then, the Life Sir,—Michael Donne does to with the much further consideration and Cross premiums written by the Cotiifvuiy In 5 302.6 ni of which S 58,4 in for passenger aircraft is likely to would have cope well to emphasise, (July 29) the range in capacity from about remaining passenger demand at debate. totalled S 2,028.4 m of wbidl S 618.7 in and S 44.2 m for Nun Life. Civil Aviation Authority's passengers flying Options for assessment must 600 down to 20 seats (on com- around 25m for Life and 8 l,4tW.7 m fur Non Life. earlier warning of the serious- movements. include a second runway at the year's profit were allo- muter services), with actual on 170,000 aircraft S 47.7 in from threat to Britain’s future trade Stansted (for which there is loads ranging between about For many reasons Luton’s reached 4,212.1- cated to the rMniurdinury reserve. and prosperity, as a result, of space) and the re-assessment of Tolal inveslmenis S m 400 passengers and 12 passen- capacity cannot be expected to the impending shortage of run- a second runway at Gatwick. showing a growth of 20.3%. gers on average. Within this, to more than about 7m The shareholders' surplus including the way capacity at London’s air- stretch Some small relief can be gained the weighted average passenger assengers on. say. 50,000 atms. year' profit t cached 5 732. 5 ni showing, an ports, even after Stansted is from the projected Dockland Net investment income totalled S 402.3 in * ‘ load Is. likely to increase from d, by the year 2000 on such a llie stream.” S Stolport, to which might be increase of $ 92. 7 m over prev ious year. . about 150; Stansted would have to showing a growl ii of 23.7%. The average the present 100 to basis, added a revival of the civil use Experience shows that some not more. provide for a total of about ISm yield has grown to 9.7%. Realised capital The amounts !*• $ 0.353 per share, time" of Northolt, made practical by dividend 12 years of “lead is pas- passengers and 120,000 atms. That means that 100m a new, short, runway parallel gains generated from the sale of securities showing an increase of 2U"« over 1984, required between the. initiation the That could be achieved—but is sengers passing through to the A4Q—-Western Avenue— amounted lo $ 32.5 in and from the «n!r of and the completion of action to' not. present, contemplated. four airports by the year 2000 at so as to free Heathrow and Gat- The General Meeting approved the increase solve such a problem. All the properties to 5 18.4 m which were .1 1 Waled would have to be accommo- The year 2000 is, of course, wick of some of the clutter of of the capital fioiii 250 lo 35(1 I nil ion Lire evidence suggests that 12. years to the reserve fur realized capital gains to dated on sc s 670,000 aims. not the end of the story. There smaller, quiet, commuter air- from now the present airport through the Wue id Imiin* shares - hearing cur- will be a continued and ex- craft. be reinvested. south-east is Heathrow and Gatwick's system In the panding demand in the London Actions of this sort might dividends as from January 1. |986- lo In* stretched beyond rent combined annual total of likely to be Michael Donne for additional holders about 440,000 aims are coming area and though extend the need The year's profit, showing a grouih of assigned tn ll»e shore in the propor- present, or planned, capacity. about that bas suggested that there should airport capacity up to share.- for ev on 5 pharos held. In the 12 months, to June 30, . close to the maximum 49.4% over die previous year, amounted tion of 2 new can be a revival of plans for Maplin, 2010 and give a tittle more ti te London’s four main airports their present runways is, I am sure, not a runner. to decide where accelerating passengers accommodate. An optimistic that handled almost 50m demands for air travel and transport assumption, however, might be The inescapable logic of seek- on some 480.000 air- trade can be accommodated. Generali: insurance since 1831 average of that (with improvements in ing a minimum spread of dis- movements at an prospects that, for techniques and the banning turbance, the least impact There are rather more tban. 100 passengers ATC very long ranges, by then from these airports of other upon the environment, the most on each aircraft; and passenger wholly new projects—such as transport aircraft) an satisfactory economic and the Trieste (Italy) numbers through these airports than BAe HOTOL might modify the Head Office in absolute maximum of 500,000 most convenient solution for — have increased by 1.3m (3 per requirements substantially. atms, in round figures, might be travellers and shippers, is that cent) whereas aircraft move- Meanwhile, the urgency for squeezed through these two air- there should be the fewest ments have increased by 20,000 action remains. with their runways. practical number of airports, (4 per cent); - ports 3) about 75m slotted into the best access (Sir) Peter Masefield. On middle-of-the-range esti- That would equate to at Heathrow which can be contrived. On past Rosehill. Doods Way, mates, end of this cen- passengers — 53m by gw such form, any solution will be Reigate, Surrey. tury passenger traffic through and 22m at Gatwick. On V > s ; ' . if KILL OFFICE NOISE TROLLOPE & COLLS —save time and temper with a FINANCIALTIMES Ca'HiCortr Printer Silencing System FREE TRIAL ConstrudiOT'Refu^ CALL FOR A Tuesday August 12 1986 01-3772500 ® 0845 - 22444 C 4 Andrew Taylor reports on concern over exports of cheap cement to Britain THE LEX COLUMN the Greeks send UK shipload of troubles A flash in JUST OVER eight weeks ago, Sea- to produce about 15.5m tonnes of ce- costs of delivering to a large num- in a radius of around 25 mites aEMT PRICES* men t VI, 5,000 of ment a year. Last year sales by the ber of small customers. around each port." carrying tonnes $ per tonne Greek cement, was towed into Til- three totalled around 13m tonnes. In Northern Ireland, where Blue The company has not yet final- bury Dock on the Thames in east Finland 7033 the pan By comparison, imports of ce- Circle is the sole British producer, ised its pricing arrangements but it London. Its arrival provoked a bat- France 57.02 ment into the UK totalled only imports of largely bulk cement is thought unlikely that it will un- tery of complaints from Britain's Greece 39.64 366,000 tonnes with around two 5094 from West Germany account for dercut British prices by more than reflection of UK Provident’s present big three cement manufacturers Italy It must be one of the sorest signs thirds of imports coming from other Hetmrtamla ...5033 just under a quarter of the local 10 per cent needs that ft prefers the immediate and prompted a government minis- of international blanket-hugging Common Market countries. Norway 6025 market. safe far F2ffro in cash, rather than ter to ask the European Commis- “British cement prices, using the when the price of gold rises by 16 Ireland 71j67 firing Ensign’s current share after sion to halt Greek government mis- So why all the fuss over the arriv- Spain 71.33 Mr Jack Shepherd, marketing di- Cement Makers' Federation's own per cent in a couple of days. Such a or toping far a higher bid. use of EEC approved subsidies. al of Seament VI? The industry has Sweden 7055 rector for Blue Circle, says a variety figures, are more expensive than in move may seem tike mere margin Had the sate been to Ensign, complained before that cut-price W. Germany 7040 of government subsidies are avail- a number of European countries. of error to the hard cases in the which already has 22 per cent or so Britain's cement industry has imports are about to overwhelm the UK 6061 able to Greek cement manufactur- Do they wish to be protected from crude oil futures market, but for at the offer price. Ensign once again become agitated at the domestic market, but the threat has rmnhio these markets as well? They have dealers in the hard staff it has been of Berry, * DowiasHc price erf comparable quaflty orcfr- ers which them to undercut prospect of cheap cement being im- could by now be rtnirmng victory. never materialised. Why do they rnry Portland cement- quoted ax-works, ex- prices charged by British produc- got very excited about EEC ap- almost like the good old bad old its ported in cept In Germany price la average Instead, by selling mainly to old large quantities into the think that the threat of Greek ce- West where ers. proved subsidies, which incidental- days: the London gold morning fix - delivered to am, and UK, whora price is for and that UK even though imports last year imports should be any differ- ly cover a wide range of goods; but took the best part of an hour, and friends GT Management ment cement delivered S mtes. Converted from lo- These include an 18 per cent sub- party, UK Provident fell slightly and account for less 4 these, unless extended there was a return of the $2 buy/ group’s concert ent? cal euronotes at August rates. again, will , sidy on the cost of producing ce- battle. If than 1 evened up the GT* 3 per cent of the domestic mar- Source: Cemem Makers' Federation run only until the end of the year," sell spread. There were definite has Firstly, say the manufacturers, far export a concession al- ket ment $400 group sticks together. Ensign can says Mr Maynard. ! signs of alarm towards the VI is not an ordinary bulk Seament lowed by the EEC under Article 108 be prevented from winning the 75 The European Commission de- mark, as short positions snapped to- carrier but a sophisticated floating ish prices is considerable, even al- of the Treaty of and last The unspoken criticism - Sea- (3) Rome j per cent it would require to liqui- to gether with chart points. cided three weeks take . ago no cement terminal which will be lowing for the cost of transporting year extended until the end of 1986. ment says it does not want to get in- date or tmitise Berry. Ensign's oner further action against East Ger- ! permanently moored at Tilbury. Tilbury. This part of a package volved in a mud-slinging match : It would be tempting to define the the cement from Greece to was of mea- can still go unconditional with 501 man, Polish, Yugoslav and Spanish te rminal, - The 12 days sailing from sures to ease Greece's serious bal- with the cement industry is that frenzy as the moment when the case low-quality business is looking per cent of Berry , in which GT cement manufacturers found guilty the Greek port of Piraeus, will be More alarming is that the float- British manufacturers, cushioned speculators finally became con- ance of payments problems. questionable since Hawley started Management would lose the man- of dumping in EEC markets be- supplied by feeder ships capable of ing terminal, operated by Seament by the kind of common pricing vinced that equity and bond mar- Clark, aririmg to its stake. Whether Haw- agement of the trust; and find con- cause it was so minimal that it did tonnes of ce- Mr Alan British Trade carrying up to 15,000 UK, a British-based company agreement that has not been toler- kets were a few years ahead of the in Munster, last month asked the Eu- fey has merely built up 22 per cent trol of tbe 11.1 per cent stake GT not threaten material injury to local ment two Lebanese brothers, ated in other industries, is once game. But the more mundane ex- owned by prevent managing a clean- held by Berry pass to seemingly manufacturers - including those in ropean Commission to end immedi- to BET Second, they claim piflkpF the British market more vul- again being over-protective. planation is that even this jagged that Greek ce- ately the concession on Greek ce- ing business to rival Hawley and hostile hands. the UK. nerable to imports of bulk cement move in the gold price was plati- ment manufacturers, no slouches Pritchard or will actually bid for Neither prospect can be pleasing ment exports. This fallowed warn- The cement industry says that in spite when it comes A second floating terminal, to han- num-led. That metal has now British manufacturers, of to exporting, have ings from British manufacturers Brengreen rather than tender for a to GT, or, it argues, to its sharehol- dle Greek cement and to be moored separate investigations into the gained a further 20 per cent in val- government investigations in 1963 large amounts of surplus capacity that Greek producers were seeking bit more is open to question. ders. The Berry account is worth common pricing agreements have over the past week, entirely be- and continue as the collapse of oil prices has hit in Liverpool, is due to arrive in the ue 1974, to operate a com- to import up to tonnes in- The market has also changed its £500,000 a year in revenue to GT, lm a year found that it does not operate fears of an interruption in mon pricing agreement traditional export markets in the UK in the next few days, says Sea- cause of total turn- and deny to the UK. mind about HAT. Having mis- less than 2 per cent of ment against the public interest Manu- South African supplies. If the price that they are being over-protective. Middle East and North Africa. judged the ofl market as badly as over bid: nevertheless important As facturers say that it has given sta- is discounting a voluntary punitive Mr Anthony Maynard, sales di- pain- feting client, particu- Third and most important, sub- Previously, the heavy capital anybody else, and seen its US wed as that a Blue Circle, Britain's largest ce- rector of Seament UK, riaims the bility to the industry and helped to cutback by Pretoria it is probably ting business and a Houston prop- larly Berry asGTs first trust man- producer, says the arrival sidies available to Greek manufac- costs of investing in onshore termi- guarantee continuity and quality of way too high already. Putting the ment of powerful British cement industry with the does not look good turers will enable them to substan- nals deterred importers from erty development collapse agement jots Seament VI made it bring forward has lobby has grossly overstated the service. They point out that, since boot on the other foot; it seems al- eat rights issue to whatever the reason. BT sharehol- tially undercut prices charged by pursuing the bulk market Manu- oil price and up a its decision, to cut the number of its likely volume of imports and the January 1982, cement prices have most as improbable that sanctions boot, HAT had very few friends left ders must decide whether investing delivery drivers by just under British producers. facturers like the East Germans risen only once, by 4£ per cent from the major consuming nations a level at which imported cement will sat .5m inBerry, and paying a price the Poles have tended to con- last month: its share price £5 third to about 600. It says it needs to and be able to undercut British prices. would extend to strategic commodi- According to the Cement Makers' Whether the cement manufactur- squarely on the value of BETs of- higher than the average investment reduce costs to meet the increasing centrate on tiie bagged market sell- ties. Federation, the price of Portland ce- “Initially shall cent dear. merit, is a good use of ing to do-it-yourself and smaller we be seeking ers are crying “wolf" over foreign fer. If is now some 10 per trust would threat posed by imports of cheap ce- ment in Britain with a five-mile de- The same arguments applied to sales of approximately 300,000 is another matter. They may or may not be further in- their money or one likely to show a \ builders’ merchants. imports This ye of ment into Britain. livery charge is £43.24 (S63) tonne. gold seem even thinner. Here there a tonnes a year from the two floating would argue that the most impor- terference from Hawley, but it profit The comparable ex-works price in is a surplus of supply over demand, The big three. Blue Circle, Rio- Here importers have found that terminals in Liverpool and at Tilbu- tant lesson to be learned from the looks like BET will have to pay Greece is £26.95. the reverse of the platinum market Tinto Zinc and Rugby Portland, initial savings have been partially ry. We shall not operate a nation- story of the boy who cried wolf is more. And in the event of a total shut- have combined capacity in the UK The margin for undercutting Brit- eroded by the onshore transport wide delivery service but shall sell that the wolf eventually came. HAT itself has responded vigor- down in South African production Insider trading ously. Yesterday’s sate of the glass the Soviet Union alone could meet businesses far a fancy price to Hey- Of all unrewarding occupations, all the industrial A*™*™* in the wood Williams has not only cleared the pursuit of insider trading must 9 world with some ease and even the balance-sheet of the effects of take the biscuit In tine year to Lawyers, engineers in at least Japanese groups seek courts more pleasure. There are March, the Stock Exchange the Houston misadventure, but London possibilities for the speculative shown tiie profit potential in parts quotations department examined of platinum to exploit the hoarder several hundred fishy price move- mi.wies of the group. But whether the in- EEC recognition bid of the industrial user pn-ftHwriwWTy «»wqiriri<« dustrial cleaning and plant-hire op- ments; made protection as liabilities grow should South African supplies be erations can provide the basis of a into 108 of them; undertook detailed BY HAZEL DUFFY IN LONDON cut Even more mysterious than the convincing profits forecast is quite investigations into 35 of them; and gold price rise is a similar rush of PROFESSIONAL engineers and separate professional directives - BY YOKO SHIBATA IN TOKYO AND GORDON CRAMB IN LONDON another matter: the market is un- passed 10 of them to the Depart- blood in silver, plagued as it is fay lawyers throughout the EEC are like those agreed recently for archi- likely to wait far the resurrection of ment of Trade. In the course of the enormous stockpiles and the for- seeking separate recognition under - in business di- Miroku gave no mmilar figures rescue larger steelmaker. paint operations. year, oneperson was prosecuted far tects and general practitioners THE DOWNTURN by a eign exchange hunger of South the US proposed European Community has taken mate this year across a wide spec- but Teikoku Data Bank, a private According to Mr Ishihara, FCnhkn inside trading: He was acquitted. up to 15 years. American producers. rules which will facilitate the move- Lawyers may have a tougher task trum of Japanese industry was giv- credit research agency, estimated can continue production in the Such careful atifting-means eith- ment of professionals who want to than engineers In convincing the en stark emphasis yesterday when Mirqku’s liabilities at Y26bn. This short term, with sufficient cash Ensign/Berry er that tedder trading is unViwwu practice in a Community country Commission of their need for a sep- two long-established medium-sized would make it the biggest collapse flow to last through September. BET bids in London or, more plausibly, that other their - of a Japanese venture business, ex- No tale of investment trust folk is tbe Exchange's 40 investigators than own. arate directive. Unlike the companies a quoted steelmaker Miroku, launched in 1963, was an and an office equipment venture - ceeding the Y24.Bbn of debts owed double bid for and ever simple, and the story of Ensign might spend their time more profi- The European federations of the engineers, there was no proposal on early success story in Japanese BETs HAT - independently fay Dainichi Sangyo, a makyr of do- Brengreen is beginning to look less Trusts bid far Berry Trust is be- tably on villainies that are easier to national governing bodies of the table far a specific directive sought court protec- venture capital; an industry which tion their creditors. it-yourself products, which failed in like left right rather coming progressively more shaggy. prove, such as double parking in engineers and lawyers have agreed that for the engineers dates from from has taken firm root only in the past a and at two Kokin Steel Works, which ApriL low-flying - almost sitting - birds, The news that UK Provident had Old Broad Street This would be a proposals which they hope will 1969. It is also believed that French five years. Industry analysts had - specialises in small bar products for and more and more like its unsuc- sold its 28 per cent pins stake in their efforts may conceivably farm the basis of negotiations with lawyers although a party to the In addition, if outstanding guar- held its management in high regard pity: agreement reached by the Euro- the construction and civil engineer- cessful pot at SGB. Despite the Berry made a dramatic end to yes- be a deterrent And tiie advent of the European Commission and lead antees were included in Miroku's li- and it is believed Miroku was plan- ing industries, applied to the Osaka agreement of Brengreen’s manage- terday’s episode, raising more ques- electronic referring of bargains to separate directives. They believe pean Federation in the late spring abilities, the total would rise to ning a share flotation. tions than it answers. after protracted negotiations - have District Court far protection under Y50bn. ment, even the purchase of such a It may be a may even improve the strike rate. that this would give them greater Sales In its year to September now told their Government not to Japan's rarely-used Corporate Re- control over standards of profes- Kokko’s shares were suspended 1985 reached Y22.9bn, although no separate directive. habilitation Law, a measure similar sional practice than if they are in- press for a on the Osaka Stock Exchange yes- earnings figures were available. Its , to Chapter proceedings in the ' cluded in the general directive The Commission's draft directive 11 terday after falling to their Y50 par financial position is understood to will also come under close scrutiny US. drafted fay the Commission last value. In 1973 they were changing have been undermined by a YlObn in the coming months. Some be- In Tokyo, Miroku, a maker of of- year. hands at up to Y838. The company, investment in software develop- lieve that the generality of its text fice accounting and information Agreement to recognise the dif- established in 1934, has been in def- ment as well as higher marketing is deceptively simple and that it will equipment which was among the pi- ferent professional qualifications in icit since 1980, however - pre-tax costs while margins were eroded in have to specify the professions for oneers of the country’s venture cap- the member states is one of the pri- losses far its latest year to March an increasingly competitive sector which it is intended if it is to be ac- ital industry, filed a court applica- orities identified in the internal were up 55 per cent to Y1 jittn, on a of Japanese high technology. cepted. tion seeking supervised negotia- market programme to lift national 16 per cent slide in mips to Last Thursday, Miroku The engineers' tions with its creditors. failed to barriers on the free movement federation, which Y19.14bn. of honour a bill far YLObn. It is now is keen to achieve mutual recogni- Liabilities of the two could to- goods and people within the EEC, seeking creditor arrangements tion in the belief that it will raise gether reach as much as YB5bn The company has been hard hit which the UK Government is push- 1.8m). by the recessi n in the electric fin1 which parallel the West German the status of engineers, hopes to ($42 o : ing during its presidency of the “Vergleich” or settlement proceed- use the 1969 proposal as a base. It Mr Yukio Ishihara, Kokko’s pres- nace industry, while the steep ap- Community, ings. will have to be substantially re- ident, said his company owed about preciation of the yen since last au- The Commission is anxious to drafted, however, because many Y15bn to some 150 creditors, by far tumn has devastated its exports Shareholders in Miroku include speed up mutual recognition, which changes have occurred in the pro- the largest of which is Tokai Bank which have accounted far between Daiichi Kangyo and Daiwa banks was the reason for it proposing a. fession since then. Discussions will with 60 per cent of the debt total 30 and 40 per cent of its sales fay val- end thp Nippon anH Daiichi life as- general directive. Negotiation of the start in the early autumn. and a 10 per cent shareholding . ue. It had unsuccessfully sought a surance rampanii^. Finance chief Chase unit dropped over ‘stags’ Interest rates quits BankAm BY NICK BUNKER IN LONDON move expected Continued from Page 1 WINDSMOOR, THE British cloth- ties, had applied on their own ac- told the employees involved to turn Continued from Page 1 ing manufacturer, has dropped counts far Windsmoor's shares. over their profits to Chase, which agement changes at BankAmerica It is felt that the Reagan adminis- Alexanders Chase Manhattan Securities as its They then “stagged” the issue by mil donate the money to charity. mounted last week after Mr Tho- tration needs some tangible evi- financial adviser because of person- selling them at a profit in the mar- Mr Ron Reading, its London head mas Cooper, president of the bank dence of help from its leading part- al dealings by Chase employees in ket soon after dealing started on Ju- of securities mid trading, has also holding company, and Mr Poelker, ners if it is stave off growing protec- the 'company’s shares. ly 17. ruled that in future employees will cancelled briefing with tionist pressure in Congress. Mr Laing abruptly a Cruickshank In a brief statement yesterday, Windsmoor’s executives first be forbidden to deal in Stocks & which analysts in New York. James Baker, the US Treasury Sec- Windsmoor said it was appointing teamed of the affair from a newspa- the house has brought to the mar- Wall Street investors reacted ne- retary, said that the ari mini nfratinn Phillips and Drew, the London se- per report ket. gatively to the news yesterday fear- was dose to losing the battle curities house, as its new stockbro- Mr Brian Green, Windsmoor's Chase Manhattan Securities has ing that it would delay BankAmeri- against protectionism and that, if it Holdings adviser. nhairmitn ker and i declined to comment in accepted that its employees Ltd were ca's long-awaited recovery. Ban- did so, a trade war would result Chase Manhattan Securities, a detail yesterday about the decision involved in “errors of judgment" kAmerica's share price fell by $% to George Graham in London, adds: London subsidiary of the New York to switch advisers. which might have appeared to pro- $12% Foreign exchange markets re- banking group, acted as issuing He said: “There was no alterna- duce a conflict erf interest mained quiet yesterday fallowing While Bank analysts generally house for Windsmoor’s stock mar- tive. We were unhappy with Chase Some leading London stockbro- the meeting between Volcker accepted Mr Poelker's explanation ket flotation last month. Manhattan Securities because of kers have strict rules which Mr for his decision, they also viewed But it was later revealed that matters that have been fully discourage stagging by their em- and Mr P6M, with the dollar regain- ing of its early losses to close the move as another indication of some staff at Simon and Coates, covered in the press. The change ployees and forbid it where the some in London at 2.0605, 0.9 the severity of the credit quality one of two London stockbrokers speaks far itself.” house is acting as broker to the is- DM down problems faring the group. owned by Chase Manhattan Securi- Chase Manhattan Securities hag sue. pfg from Friday’s dose. The International Securities Hi House •Wiip S': Detention laws . ; , ++is.*V' Aquino urges debt swap purpose built Wor; ifS&thgr. 'Sr*'- |j for the mid 80’s Continued from Page 1 m under review -c F c •F "C f c F and beyond . . The limits would be even tougher Mr John Reed, chairman of Citi- s H B< s 38 88 «Mn S 32 18 Mu s 29 84 Continued from Page 1 DM in non-priority - but Upa c 29 84 EdUn* s 14 57 Montia* H 14 57 Bfefaja 8 31 88 more profi- corp which has $1.7bn in loans to • — — 8 29 84 - 1Ufti s 20 88 Fas s a 79 Mario Rm bid the publication of any "subver- table investments such as com- the Philippines, has told Philip- s 31 93 Fiona s 32 98 KcBam S 9 48 Sofakna S 27 81 Mb sive statement” and allow the Min- mercial banks, petroleum trading pines officials of his group's inten- Mria s 38 100 Fnfa* s 28 fa MafcaSt? I 21 78 SsFoanC 17 83 ister of Law and Order to seize any or manufacturing. In the participate tetfri c 91 88 ForW F 21 15 Mas c 30 88 Sud C a 77 latter cate- tion to in the swap ar- tank* F 27 81 B««» F 24 75 Man F 30 88 s 31 88 publication which he deems to be gories, dividend payments would be rangements. In Mexico, the bank SKttoM 15 59 F 3D Oh BMW S 25 77 Mm* C 28 76 c detrimental to the public interest barred for four years. recently acted as broker Z7 81 a for a Mint S 17 83 Bngnf s 17 W Mmo . € 23 73 Surioaf s The Durban court's decision to The Government plans to charge swap to finance Mferio s 31 88 Guam* c 17 63 ft** S 26 79 s 13 55 $50m expansion by Brio s 23 73 HeUafa F 11 83 Nnrii 8 a 79 la* s 35 95 declare clause 3(1) and 3(3) of the fees of 5 per cent o£ the local cur- Nissan, the Japanese car maker. It teg A 27 81 Haifa 32 91 TMpr F 24 75 Bantr c 20 a S emergency regulations invalid and rency value for arranging priority Other swaps are envisaged by Mex- Boater hs&rari S 28 79 Han* c 37 98 74 Mi s 31 88 order the release of Mr Tsenoli led investments and 10 per ico’s debtrescheduling Borins T 18 61 Ms c 13 S5 haOtftf s 37 89 Tcnoii F 21 81 cent far agreements. Bran* F 20 88 s 37 99 hatak s 38 88 Trim S 31 W to an adjournment in the Pieter- nonpriority investments. Bankas say the scope far swaps 84 lmihil s 32 SI Hr s 28 82 lonrio c 25 77 Mmst 1 70 maritzburg case until August 18 Bankers assessing the proposals is limited partly because local cur- B.fcm B IB 61 j*sa c J1 88 Heads s 37 99 Tibs 3 38 97 when Mr Justice Leon accepted the may also be concerned about the rency created through Coin S 33 91 Ja»f c 18 » OpA s 19 88 S 29 « swaps could Oita 84 pfea of F 18 84 J|ki| s 20 88 F 19 88 Unfa c 28 government counsel far an Government’s foreign investment over-expand domestic money sup- AA iMiNiwuMMMUCUMiaDMMiiwrHe c 18 84 fare F 25 77 Uaaa F 29 84 C 27 81 adjournment until the impiiraHnnw policy which is still being consid- ply, potentially increasing mflatinp MercantileHouseGroup 22 72 72 Inks F 23 73 *» S a 82 Htasw C wreftwwwu.twwwATiomu. ftmwcwLftifnwciM. MwhCObii EnoMona s n of the ww cto 18 F F 24 75 Durban judgment were more ered. A commission working on ft But the principle of debt-equity t 28 70 M e a Pam 25 77 Mats 25 77 clear. fefcfte a 28 79 LflAvfo c 31 88 G 11 b2 2afa S draft constitution is divided on the swaps has been given aboost by the 19 89 LmatwB| s 22 72 The nip*V" F BtKSBgtMBs&darmmtkfr clauses declared invalid al- issue of foreign ownership, which Baker plan designed to ease the IfaW s 77 81 low the security forces arrest been generally crisis 31 88 Maah D-Ormte F-far F«-faa H-Hd B-SMss to has limited to 40 per debt by fostering economic s 23 73 faon s — - detain * Ufa c 57 Mop — S-Sw Safari Sa-Sran TOndoo any person without warrant cent of ft business. growth. i a . ; 13 SECTION II - COMPANIES AND MARKETS (XTREVOR&SONS] IHTRavis for efficient property management London 629 atsi FINANCIALTIMES & Arnold Timber Building Materials, Heating and Tuesday August 12 1986 numbing Equipment forttie Construction aid Allied Trades. Northampton 52424. PROBLEMS AT ALLEGHENY INTERNATIONAL I Investment Accountants press for merger to Why the buck stopped at Buckley bank buys form world’s largest practice OV 1 IfMJCI R1DRCB Ml I /wnAU BY TERRY DODSWORTH IN NEW YORK Budget BY LIONEL BARBER IN LONDON IN THE DAYS when Ur Robert ure to act has been laid at the door SEVERAL international accountan- with the rtanarfian ' income of around Sl.6bn. merge associate ^ Buckley seemed to be doing an the AUJBHENY IMTERIUTIONAL- 5 YEAR EARKNQS SUMMARY of the chairman. Part of the prob- cy firms are trying of Ernst A to persuade Last September, Peat Marwick & Whinney. 'right things as the flamboyant new lem seems to have been the gran- Rent A Car ; KMG, the international practice Mr Jim Butler, senior partner of YEAR SALES (Soi) NET MCOME (Sm) held incoMJusrve merger talks with • diose ambitions A. ?hflmaattpf.Aflegheoy.-^ Mr Buckley had for that has a particularly strong Euro- Peat Marwick in the UK, said yes- ' “ 1881 1.62Z3 81J) By Terry Byland in New York KMG. One obstacle in the talks cen- r • 1 • (AI). the Pittsburgh-based the company. years told • ®1 eo»- Two ago he pean base, to agree to merger to terday that no talks 1982 2£87.2 47a a tred on opposition KMG's Eu- formal merger : Business Week from .. i pany developed nice line magazine that by in glossy 1983 2,067-8 283 produce the largest worldwide ac- with KMG were taking place. He r TRANSAMERICA Corporation, the ropean affiliates, who were con- _- ^' 1989, “when be animal reports. 1984 2,0934 \A3 be will 65, AI would countancy business. reaffirmed Peat's previously stated r San Francisco-based insurance, lea- cerned that their prominent role The vivid photographs and confi- 1985 2,Q56_7 {109.1) be generating “S5bn in safes” - a view that any such merger “must sing and services group, announced ging might be undermined in a big merg- ‘ lofty target for the group with Mr Bill Morrison, mana part- - s' : dent prose spun a story of a group reve- make strategic sense" and said that rtnmreft Associate: Rrvkn Nachoma the first step in its planned divesti- ner of KMG Thomson McLintock, er. r, that was determined to expand and nues last year of S2.1bn, down from : > with Peat bad kept in contact with KMG. ; ture programme the sale of the British arm of KMG, said yes- . knew where it was going. “Your S2.6bu in 1982. KMG's international organisa- the past s ^ Budget Rent Car to Gibbons, Over two to three years, tinoously around SI00m a year, des- exercise bicycles. “We got away A terday that several firms had “left tion, Klynveld »,“/ management is vigorous and ag- In the last 18 months, AI has sold Main Goerdeler. the accountancy industry has beard V Green Vanamerongen, an invest- their calling cards.” pite all efforts to reduce debt from smokestack America before it But be declined based in Amsterdam, has clients ; gressive' shareholders were told in off some substantial assets, includ- regular rumours of mergers, with ment banking company which confirm And he left the company pursued was in trouble,” said the company half to or deny strong industry such as Royal Dutch/Shell and Ak- ... 1980. A year later, Mr Buckley eat- ing its stake in Titanium Me- many firms arguing that size is the heads a Budget management group. speculation that the interested par- -* by fl h ft rftb oMer unrest and a suit at that time. tals, zo, the Dutch chemicals business. .. i-. plained his polities of assuming and its West German-based best way to gain new audit clients. “ fiWi agwfnirf ties included Peat Marwick, Ernst v»'4:; the directors for ^self- On the face of it, the diversifica- Gibbons is paying $205m cash West German clients include Daim- , heavy borrowings fat a spending Rowenta kitchen appliances divi- .v, Whinney, The difficulties of merging interna- : dealings, waste of corporate assets, tion bad left Al with a well spread and assuming Budget's existing & and Arthur Andersen. ler-Benz, BMW and Siemens. .• [. “n I;' spree which had brought two inter- sion. But Mr Buckley has conceded tional accountancy practices range lr household goods debt of about 5286m, Budget nationally-known prodr and grossly improper business deci- portfolio, with the that he probably acted too late to op- three firms cultural , consumer Those are among the Mr Peter Godfrey, senior partner from differences to rival- - sions." activities balanced by high-value erates the world's largest franchise uds companies, Wilkinson Sword balance his acquisitions with divest- “Big Eight” international accoun- of Ernst & Whinney fo the UK. said ries between national partnerships special metals, products for the vehicle rental system but rates and Sunbeam, into the group. What went wrong? Bade in late ments. tancy practices. A merger with any yesterday that a letter suggesting a and fears of Anglo-American dom- ‘ aerospace and computer industries, about number three in direct vehi- • . : : “Allegheny will continue to utilise when Buckley became Just as significantly, the extrava- one of them would create worldwide merger inance within a group. at- ' 1977, Mr the larg- of the two firms new An ' and a range of specialised industri- style established cle rentals in the US, with revenues 'J C leverage to enhance the total return chairman of AJ, Wall Street largely gant management est worldwide organisation, with had been sent fo KMG. but so far tempt to merge the international al products - carbide cutting tools, of $332m last year. tsrV its shareholders," he said. The ac- approved of his strategic plans. He by Mr Buckley, a buccaneering per- annual foe income of more than there had been no response. Last operations of Price Waterhouse and equipment, water purifying quisHfons, he added, were part of a inherited a company which was x-ray sonality who once had ambitions to Budgets current management is S2bn. Arthur Andersen, at present June, Thome Riddell a Toronto- Deloitte Haskins Sells foundered in • systems ana thermostats. in the deal, policy of balanced diversification heavily involved in steel and metals be an opera singer, seems to have participating and Gib- number one, has international fee based affiliate of KMG, agreed to 1984. which had put the company "in the fabrication; and well before many AI, however, found it increasingly launched the company into a period bons intends to provide “substantial additional financing" for the rental ^ . enviable position of being able to larger companies saw the need to difficult to live with the debt taken of policy drift Wall Street began to sustain earnings in good years and shift assets out of these areas, he on principally for the S534m acqui- turn off to the group at least three company’s continued expansion Argentine ‘•'bad.- was aiming to divest sition of Sunbeam. The essence of years ago, partly because it began and growth. Transamerica will re- UK group forced to - •' nirMm to ceive warrants exercisable for five W i- Mr Buckley's resignation In 1880, AI changed direction de- Mr Buckley’s plans was to sell bits see Mr Buckley purely as a acquired wheeler-dealer. years, offering it up to 10 per cent of airline to lt . V- at the mid of last week put a very cisively with the sale of Ludhzm of the companies he had to <*r-“ 1; the new Budget company. The Bud- lj* different light on the diversafica- Steel and a series of four acquisi- reduce the debt to bearable propor- It is not dear as yet what will alter acquisition terms deal, if completed, will to - tions - deeply analysts say that the com- happen to the shareholder suit But get bring i- ? “d the borrowings to say tions which took the group tions, but be sold off nnHrjng of the aggressive manage- into wwiwwiw products for the panies he bought contained such a the smooth transition to a low-key about Sl.lbn the total of leveraged BY LIONEL BARBER IN LONDON By Tim Coone In Buenos Aires ••• - style. garden. sales hotch-potch of assets, and had so new chairman, Oliver Travers, operations arranged by Gibbons . A ment home and By 198L Mr this year. TWO LARGE UK institutions, investors, the so-called vendor plac- ... His departure followed a thump- from these divisions totalled almost many poorperforming divisions brought in from a successful spell AN ARGENTINE state airline. Aus- Prudential Assurance and M&G In- ing method of financing. .. ing Jl09m loss in 1985 after three S900xn, with a product range from within them, that Al found it diffi- in the consumer products division, Transamerica said earlier this tral is to be placed on public offer vestment Management, have again Last week, Boots, the retail fciirhon UK - y®315 rapidly declining earnings, appliances to electric blan- cult to clean them up. looks set to put the company on a year that it intended to trim its op-, “within the next 15 days." according - -i forced a public company to re- chemist and pharmaceuticals fan. UK man- when interest expense hovered con- kets, lawn mowers; golf dubs and Ultimately, the w»nn> for the less turbulent course for the future. erations down to the core insurance to Mr Norberto Rertaina, one of - •• . * emerged relatively unscathed. The True Temper garden products divi- tious product development pro- cause of the decline in smoking and only members of its board to have sion, as a foothold in the US mar- gramme. increased use of lighters. “All we been connected with the corporate ket “In many ways Allegheny has can do is rationalise and rationalise £75 , 000,000 crisis - Lord Fanshawe, Mr Christo- Allegheny has since turned to thrown money at the company” again," said Mr Fletcher. pher Lewinton and Mr Anthony electrical appliances, rather than said Mr WUHam Mellor, director of The most likely solution is that Shamanagher - have all left the com- matches and razor blades, as the fo- investment management at Legg Wilkinson Sword will follow the international nsion Walker in Baltimore. path of Rowenta and be sold. pany.' . cos for its expa Mason Wood These securities have been sold outside the United States ofAmerican and Japan. This announcement appears as a matter ofrecord only. 11th August, 1986 Hawley International Finance Limited Multicurrency Term Loan with transferable advances OSAKA GAS CO., LTD. Guaranteed by (Osaka Gas Kabushiki Kaisha) Hawley Group Limited U.S.$50,000,000 Arranged by 'uiiti ' - 8^ per cent. Notes 1993 Credit Suisse First Boston Limited id Fundsprovided by Issue Price 101% per cent. Credit Suisse Dresdner Bank AG Midland Bank pic l.nmlon Kraarh Australia and New Zealand Banking Group Limited Arab Banking Corporation (B.S.C.) Nomura International Limited Credit Lyonnais The Long-Term Credit Bank ofJapan, Limited London Branch Daiwa Bank (Capital Management) Limited Manufacturers Hanover Limited The Royal Bank of Scotland pic The Rural and Industries Bank of Western Australia rf\ Sanwa International Limited Swiss Bank Corporation International Limited Soctetf Generate Union Bank ofSwitzerland London Branch Bamjjue Paribas Capital Markets Limited Chase Investment Bank Nederlandsche Middenstandsbank NV Chemical Bank International Limited Daiwa Europe Limited Bank of Scotland The Fuji Bank Limited Kansallis Banking Group HiB Samuel & Co. Limited IBJ International Limited National Bank of Canada State Bank of New South Wales LTCB International Limited Morgan Stanley International Limited Nikko Securities Co., (Europe) Ltd. J. Henry Schroder Wagg & Co. The Facility Agent Yamakhi International (Europe) Limited Credit Suisse First Boston Limited , ! . —— . . —. V. * ' i v . c .\ 12 1986 *0* financial Times Tuesday August 14 INTERNATIONAL COMPANIES and FINANCE Rodger reports on doubts about the prospects for Japan’s offshore market Hillsdown Y50bnEurobond for In £100m Bankers cool on Tokyo’s new status sy Nippon Telegraph PEARSON Hanicg, in the New any other tax. Toyoo BY CLARE TOKYO IS about to acquire one market “ We are not getting as yen is an international currency And, as Mr said. which an increasing number York offshore market, banks Gyohten, Vice - Minister of of the major status symbols of much as we hoped," he in NIPPON Telegraph and Tele- The Soating»rfite note market International syndicated will have to keep their offshore Finance for international programme International finance, an off* Mr Paul Hofer, manager of of yesterday Is showing signs of indigestion separate from affairs, said recently phone (NTT) shore banking market But even Credit Suisse in Tokyo and loans and bond issues are de- accounts totally that he By Alexander Nicoll given toe large amount of no optimistic that launched a Y50bn 10-year issue Institute of nominated. Japan’s big commer- their domestic ones with was the market paper issued recently. The before the planned opening date chairman of the the KILLSDOWN HOLDINGS, the into a firm Euroyen market. Japan, says cial banks, which have branches transfers permitted to would start out initially at traded dully, although of December 1, there is con- Foreign Bankers in fast-growing British food and Tbe bond was enthusiastically sector " It abroad, a significant parent bank. around S7Qbn in outstandings Issued a siderable debate about whether of the offshore market: may have advan- group. yesterday well within Morgan Guaranty S25m banks' major complaint and rise quickly to 51502m, furniture- received and traded it will become a main pole in not be a dead baby, but it will tage over the 61 regional banks The sterling tap of an existing bond for Japanese similar in size to the Singapore announced a £100m its fees. the much discussed round-the- certainly not be a very lively in competing for this business. is the maintenance of Chrysler, totalling 8125m. which are offshore market. commercial paper programme, Nomura International, the financial one.” The Tokyo offshore market corporate tax rates, clock worldwide mar- its first entry into the capital lead-manager, attributed NTT’s A floating-rate note for ate inherent in would be open to all authorised very high, in the offshore The final regulations for the kets of the future or remain just Difficulties markets. CIBC and Kleinworf to growing interest Hydro-Quebec is expected soon. offshore foreign exchange banks in market. Mr Hofer says a bank market will be published some- success a a status symbol. the very notion of Benson will act as dealers. market among In the equity warrants sector exist Japan and so should be a signi- will have no incentive to book time thi« in tbe Euroyen The Government believes the banking markets. They to autumn and then programme is the latest International (Europe), transaction In the Tokyo off- The European investors, reducing Wako market will get off to a flying enable banks and investors to ficant benefit for the regional a banks will be invited to apply well-known lead-management, where the tax in a series from the proportion of dollar bonds in its debut loans avoid or minimise taxes on banks. shore market for licences. “I am not sure are stan with outstanding per cent, British companies which in their portfolios. So far buy- launched a 850m deal for its their transactions. Moreover, the Japanese banks rate will be about 60 we would go through the hassle rising quickly to $150bn_ Bat income from steadily giving momentum to toe generally focused on parent. Wako Securities. Tbe fore- Euroyen when it could do the same deal of applying,” Eofer says. ing has many bankers fear that the All governments hate would like to see the Mr market which saw its first issues issue has an indicated in Singapore, where the tax have any soverign issues, because these five-year rules regulating the market’s salting tax revenues, and the markets centred on Tokyo "I not met foreign in May. of 2} per cent, but rate is only 10 per cent. have offered the most liquidity. coupon activities have been drawn so Japanese Government, with its rather than London, although banker who says he will par- terms will be fixed on August Sim ilarly, there will be no Mr John Jackson. HiUsdown’s NTT’s bond's attraction lies in -tightly that few hanks will want relatively low tax income (24-5 this seems unlikely to happen ticipate. but then I have cot unification of existing markets finance director, said he ex- its Issue size of Y50bn, which is 20. to participate. per cent of national income in under a restrictive regime that met anyone who says he will such as the $80bn call market pected toe sterling CP market large for this market, and in Wake's bond traded above its “It will be an even smaller 1984) is particularly nervous will begin in a few months. not-” in Tokyo with the offshore to develop rapidly, and that it fact that its name is widely par iayue price yesterday. Other baby than I expected,” Mr about any leakage. The Government has decided, if the market gets off market because the call market Even would proride an alternative recognised. recent equity warrants bonds Yusuke Kashiwagi. chairman of However, pressure for setting for example, that banks will to a slow start, it will probably is not tax exempt source of funding, particularly NTT’s 5} per cent bond was for lesser-known Japanese eonfr the Bank of Tokyo, said up an offshore market in Tokyo not be allowed to deal in become strong eventually. The if. as some expect, bankers’ bid yesterday at a discount of panles, however, traded poorly. headed has been growing since the securities or gold in the The Government dismisses well known for recently. Mr Kashiwagi Japanese are acceptances become a more ex- only one point to its issue recent issue for Daihatsu internationali- market, which means that it complaints about tax, pointing 101J A a committee of bankers which liberalisation and advancing cautiously until they pensive raising finance cent instance, was quoted will of less Interest to out that non-resident investors means of price, well within 2 per Motor, for last year made recqmmenda- sation of the yen began two be price in the market will not be sub- know the way and then becom- in toe future. fees. at a discount to issue of tioDs to the Government on the years ago. investment banks, including than commercial ject to with-holding taxes or ing very competitive. Acceptances, currently toe Elsewhere In toe Euroyen about 10 points. structure of the offshore For example, now that the foreign banks, major source of bank funding market Denmark borrowed Two five-year Canadian deal for HUisdoum, were still gener- YlOba through a led by dollar bonds, both with issue ally cheaper than sterling CP. Morgan Stanley. This is the amounts o f CWOxn, were he said. But the growing number second Euroyen deal for Den- launched. Citicorp Issued a Temora lease Good year mark in toe last fortnight and Schleswig- in $52m placing of household names in toe new bond for Landesbank group tbe heels of Futures market were likely to make it comes hot on Holstein. The bond has a for Paragon dollar Eurobonds, totalling juice for Bell more competitive. two coupon of 0| per cent and BY DAY1D OWEN IN CHICAGO Hillsdown saw no immediate $5bn_ of lOli. This amount of borrowing Resources need to obtain a credit rating. D-Mark market prices has created some disillusion- In the Bjr Kenneth Minton, According to Mr Tone Grant, the past two years, absorbing Though it plans to issue sterl- about point. The REFCO GROUP, the parent of associate ment with new Denmark paper. rose by i Mining Editor the world's largest futures company president, the financ- in rapid succession Chicago ing CP only when the rates are market was encouraged by. -the Kennedy in Sydney However, yesterday's deal, a RESOURCES, form- commission merchant, has ing takes advantage of today's Grain and Financial Futures, By Robert competitive, it is likely to make strength of New York markets PARAGON " reverse ’’ floating-rate note, erly Seltrust Goldings, has moved to consolidate its finan- favourable interest rates CostiCommoitities Services, and N. TAYLOR HOLDINGS. a small issue soon to test toe continuing hopes of lower J. had been largely pre-placed and received a mining lease for its cial structure by making a environment, with proceeds to DU Futures Group. per cent owned by Mr water. interest Tates. Dealers say 48 with Japanese investors and so Temora. open-pit gold venture in private placement of be used to replace existing Holmes 1 Court’s Bell are showing increas- 9523m As of end May 1966, Refco Robert According to a recent report should not have been affected investors New South Wales. Finance for seven-year unsecured senior short-term working capital capital of and total Group, has followed the ing inetrest in longer maturity had 5117m from Samuel Montagu toe by this. the project has been arranged notes. loans and for general corporate Impressive results from its bonds. assets of some $L3bzx. Its other volume of sterling CP issued The five-year bond pays in- with the help of forward gold Capital purposes. Bell Resources Merrill Lynch activities include round-the- stablemate quadrupled in July to stand at terest according to a formula In toe Swiss franc secondary sales. Markets acted as sole agent in The group, a member of all by reporting a generally clock client dealing services last week nearly £250m by toe end of the so that coupon payments rise bond market, prices arranging placement with a major futures, options and Commissioning of the treat- profit increase from A$2m month from £60m at the end of as six-month Yen Libor falls. rose in increased volume. An group of 10 Institutions. The securities exchanges world- and the management of futures ment plant is due to start to A$ll.lSm (XJS56.8m) in June. By the end of July, half Tbe first coupon was fixed at issue for NTT traded at XMf August 1993. wide, has expanded rapidly in and options funds. towards the end of January. notes are due the year to June. of the 22 announced programme 8 per cent compared with 101 on Friday. First-year mine production is The net profit was divided had been activated. Rates on The Eurodollar market was The primary market, however, expected to be at least 45,000 oz roughly between dividend toe paper averaged close to firm as US Treasury bonds was quiet Today a SFr 250m gold plus 60,000 oz silver. Income, the result from its Limean, the mean between rallied in New York. No new issue for toe World Bank is Meanwhile, Austwhim Re- Setback for Gefco and Msauli woollen and marine London interbank bid and fixed-rate Eurodollar bonds expected to be launched by sources produced an initial equipment operation and the offered rates. emerged, bowever. Swiffi Bank Corporation. 4*3 5,977 oz of gold in the June gain on the sale of a holding BY JIM JONES IN JOHANNESBURG quarter at its new Cork Tree in G. J. Coles, Australia's Weil min e, near Laverton in biggest retailer. Western Australia; annual capa- GRIQUALAND EXPLORATION may be needed if sales do not cularly depressed by health The results for Bell Re- city is 30,000 oz. (Gefco) and Msauli, the two match expectation during toe fears. sources and Taylor augur FT INTERNATIONAL BOND SERVICE remainder of toe year. Gefco’s first-half turnover was Estimated ore reserves have quoted South African asbestos well for Bell Group's 1985-86 R41.8m (516m) against R43.3m been downgraded at the 500,000 producers, continued to suffer Msauli recently commissioned earnings, expected next shaft systems and, as a in the first half of last year month. Listed are the 200 latest international bonds for which there is an adequate secondary market. tonnes-per-year Harbour Lights from declining sales volumes in new result, increased production of while increased sales to However, the apparent dosing prices on August 12 open-pit gold operation at the first hall of the year and chiysotile asbestos fibre, Rl&6m from 2U6J3m. the a Leonora in Western Australia of are uncertain when market con- by strength of Holmes us MUM about per cent However, Msauli's first-half net earn- empire might be snuuosTS smtsMis Carr Boyd Minerals (39 per ditions will improve. 2 Court am ings dropped to 28.4 cents a Amoco Co. 16 08Z% Amen. Ex. fo. Or. 0 91 AS MS 91% SR* +8% HM Esso cent). sales volume was about 6 per ominous for the management 9% 289 »% MB cent) and (50 per Aden. RkhflcM 00 238 tun, uw* 48% 9ao Brewer Ldddc. 129,91 AS 38 95% 9C% 6 n» Gefco, which is the world’s corres- share from 41 cents. A divi- Hill 10% st cent lower than in toe of Broken Proprietary Australia Com. 11 rov us, +s*« ass Flat Fleam* 30 Following lower-than-expected blue asbestos, dend was last paid in 1984. At 95 ms 14% 89 AS 99% 99% 48% JOS only producer of ponding period of 1985. (BHP), ha long-standing tar- Aum0aCani.ll%00___ MB list U3>t +«% «a GMAC12%89A$ SB 99% 97** -8% 1*31 head grades, an independent (croadolite) and amosite, re- Gefco, earnings fell to 18 cents BPC*dtal9%94 109 1 get. In the past fortnight, as 83% U4 Landsldc. Rbrin 13 89 AS 38 9C% 97 -1% K» Both companies say that Capital 158 109*. survey of the reserves estimate ports that sales were less than a share from 2.6 cents and the BP 114 92. im, C*aetaiPac.lQ%90CS- 7S |99 99% 48% a» i sales revenues benefited from analysts moved to adjust up- Ca^taH Soap io% 95 mil is that to an open-pit depth of expected and that stocks con- interim dividend has been cut m CteyVer Corpn. 1091 C$_ 75 198 95% +«% +8% 1US their earnings fore- Canada 9 96. loot 107% US toe weaker rand, bat profit wards Gckbt Fin. 111*99 CS~ 73 1987% Um, im» :vj!vi there are 720.000 tonnes of tinued rise though toe to 7.5 cents from 10 cents. Both >2 123*1 **t vrrv- 120m to even stable 11 90. 599 112% .fiis. *. margins were affected by dollar casts for toe members KPP, GMAC9%9BCS 7* 10 0% 40% 1082 oxide ore grading 3.3g gold per Pomfret mine was closed. The companies are managed by iPae.10%99 . MO 108% airf concentrate on the latest Boy** Thau 10b 90 CS 75 199 99% tonne plus 2.46m tonnes of sul- directors warn that farther price concessions. Sales of Gencor, South Africa’s second CEPME 1D%91 MS 1«P2 w 4 us% Scars Acc. 10*i 92 CS M 130% 193% 49% AB - state of the BHP play. Bell CMcsipUX am 3* % - grading rationalisation - production asbestos fibres have been parti- largest mining house; Coca-Cola F. C. 17 90 N* 75 198%. -3% XM5 phide ore 3g. —of Resources shares have Jumped CredHD'Eqrip.7%91 mb -rnui mu. MB Cm* Lywari 9 91 MS -30* 195** Denmark 27b 69 NS » -T9*% 90% 8 M from A53.75 to A54.35, Bell Cm&lMithMJ 91*93 150 105*2 JC6 UaHoerCap.l7>a89NS . 38 tW US —2% MSB Group from A$8 to A5&88, Denmark Kingdom 7% 0 259 99 99% Copeadaoen ClCr 9 95 Eat 49 MS% M3%. 48% 835 and Taylor from Ag5A0 to Dmanrit Kingdom S’* 91 3SO 192*4 3009, EIB8%93 Ecu MB US*. 189% -8% 738 Demerit Kpfca. life 92 uo nsw new WaHDtraay 8%94 Era — U MS% MB -**• 738 A8620. EDC8%92 190 M2% um, Honda Mtr. WW 3% 90 FI MB M7% 287% 49% 131 EEC 83*96 At the same time toe brirf MB M8a Honda Mir. XW 3% 90 FI MB 92% 98% 49% 933 EEC 8b 91 150 1B4% 309b flurry over BHP. which sent, Tb)rssrr7\90F1 58 300% 384% 9 UO This announcementappear* as a matter ofrecord only. EEC 9*ii 90 5&3S, EIB10%94 Wer*Wto»*7*2 90Fl 75 ZBt% 30% 48% M2 its stock to and was Wesonen prompted mainly by EJB1295 61,90 FI Mr EflU(tylO%92 Amevll93£, 38 1302% 192% 49% 49% 3*42 Holmes h Court’s proxy trans- Export Dev. Bm. 1090, Australia Cora. 11 92 £ 49 M2% 192% fer to Mr John Elliott’s Fed. Dep.Stn. 201*95 CIIAC llKFta.l0%90£ - 3B 301% 182 9L9B Ctwm. Elders 1XL* has subsided to Ford Motor Crad. 10*2 91 _ Imp. Ms. 1003£_ MB 198% 99% 3839 Font Motor Cred. 11%90. lap. On. lads. 30% 92 £ 75 388% 381% leave shares ye&erday at the Sen. Elec. OmL 101* 00_ least la M3, tat. 10 99 £ *8 97% 97% 49% 2032 A58. Leeds BM. Soc. 10% 91 £ -8% 30*7 McDonald* 10 90£ upshot is that a share % :XZZ The NadonwM* BS 10% 93 £ 99% -9% 3*51 IADB10*295 _?7% 41% offer for BHP by any member RSW Treasury UP* 92 £_ 49% 1*51 Merrill Land) 8% 91 BANCO DE BILBAO of the Holmes a Court stable Royal Inset. 10%92£ M 381% MU* -9% 2*48 Mae.Zealand 7% 90 J.SMndavyl0%93£ has become that more attrac- New Zealand 8% 93 M 181% 181% -8% 1*54 Tata*. Fortell** 90£ tive in the past two weeks. PegsUInc. 7% 93 91% — 88 381% 30% -9% 3*05 Proct. & Gant*. World Bank 11% 95 £ 308 308% 209% -9% group is thus In the W 9%92_ «M The Pra RraH Sees.12% 95_ CdEB%9SLFr 008 30b 387 49% TJ5 position to offer cash to the Atoms 10%30% 95 nz% 122*8 EJB8%93LFT 3M8 1305% 381 — 7M small private holders and an Qaeensland Gwt M% 95 ftdstoo Purina ‘ FLOATMS attractive paper alternative 11% 49% BATE SaatoScada9*a91 Smaad BU Oder CJIa CJtm to toe taxable institutions. 288 138% 322% 1 Ul 9*73 9*76 3898 3CM Scandinavia Air. 10% 358 138% 333% Taylor received a A5190m . *85 HIM 38089 2S0 5% BILBAO INTERNATIONAL LIMITED Stt»Bk.S.AiEL9%93— 288 1385% 10% equity injection from a pre- Barclays Bank Perp. 1 8%f 38*71 39*81 2fU SotoUlOSQ 318 387% 10 70 Barclays B«k Perp. Z 9%J 30*57 3047 >% ference share issue in May &. Waleslries Trar. 13%90 358 3X3% 333% MU IMsImn, Kingdom of91. 8 38*73 30*85 whkh, with existing share- Swed.1.Exp. Crad. 1092 10 330 110% 3MB 80 a BNP 5% 95. . 885 38*39 12« 68 holders’ funds of A$60m, has 0*8% 96 me S—dan 10% 92. Briumda593£. 0% 38*80 38*32 Hi 3*39 put Taylor in toe position to Sweden Kgdm. 10% 90 CCF5%97 .0 9987 9*77 1410 *94 be able to gear up for toe Sweden Kgdm. 11% 94 Citicorp 98. .8% 9186 9*96 29MB 759 Credit Lyunnate . Toyota Motor Cred. 8 89 5 2000 - 3888b U.S. $150,000,000 size of takeover bids previ- «. 30055 um *n Victorian Rep. 13%92 EEC 3 92 DM .8 3084 am asm 40 ously undertaken by the other World Bank 93 8% 2016 EEC 5% Ecu . 08912 19*95 30085 3&V7 70 Holmes 1 Court stable World Baric 9% ant Halifax Blog. Soc. £94 Ol 9981 9*96 6/0 1*54 GUARANTEED FLOATING RATE NOTES Bank World 9% 2016 members. Lfcyds Bank Perp. .0% 10883 300 9/12 7% World Bank 10% 95 Midland Bat* 20m £ . *1 9987 9*37 310 1*6 BHP officials said yester- Head* ThatSt Fin. 8% 0 49% ton DUE 2001 • 9& u 10056 26M9 *0 MartWestPerp. day that production from the A , «tt 28084 10*74 M3 *94 new Jabiru oil field in toe NaWestPerp-B B%§ 38851 30081 M8 f% Hew Zealand Timor Sea off toe north-west 5 97 £_ 087 9955 9*64 14/0 30% Asia* Dev. Bank B94 Zealand 20 New 5 2001. . 8 38*24 38051 4W US coast of Australia had begun, Austrian Etoc. Co. 6 95 358 % — *1 9982 9972 5/09 *0 Unconditionally and irrevocably guaranteed and the first sales of the new BMW 5%96. 38*75 0% 20085 1202 7% ^-* 1 Daimler Benz Int 5% 01 _ 50 1 \ erode are expected before the IMttd Kingdom 5 92 . 8 18*05 principal interest Dow Chemical 5% 9b 300 10052 toa 759 as to payment of and by . end of toe month. AP-DJ adds. Ooar Chemical 6 95 0 30*0 30*16 2*87 6A % —30 WdoMchS95£ 3083 BHP, with 50 per cent of ElB 5*2 98 % 3087 1M0 u% EIB6%95. the operation, is toe operator day -4106 on EIB7%94 . and marketeer for the crude, Endnrt Corpn. 6% 95 135 0WBI8U 0* its partners include Exxon, Esroflmab*«96 . HU MPz Ur Cm Ex.-)m. BJc. Korea 7% 90 - 30 383% 380% Aflww«03» Norcen. Peko Oil, Ampol 0f2«9 aW am 778 BANCO DE BILBAO, SJL Fbktrad ReprijJk:792 20 105% 184% Frame 3V9H UB| 702 EM, Petroleum, Brenda Oil, and Koescfcfta.nn.795 -1% 600 ICO 20% 104% FpP Heavy lad*. 3 2000 Norpac. Hy*oQMhecS%96 ta _ 895 676 1M in 48% -80 ** 10 1X7% Hydro feebec 62026 250 49% 637 Manri3SEBgTL -ft ON I&J5H96 2CO %99— TIM lltt 30 352 +a% 10 Mjnotta Camera Z%94 DM 210 He 10 1 304 8% 92 158 49% *32 MMnddsMBank +•% SM2 l/SEtBRi6%93 ______49% 6a 2%00 895 1788 1443 -«t *0 ISSUE PRICE: 100.05 PER CENT. Korea Off. Baric 6% 93 __ 30 43 *0 377% «% -281 Paris trading MtarisIsM M. 3% 89 WW 30 Mitsui Bank 2% Q1 4Mb W.9 123 43% 187 *“**£* 20M % 325 4«% -9*35 MKxddrid M. 5** 89 XW 30 49% SJ4 7M M M4 381 -2% 2*19 Reafe7%95 20 40% 628 experiment to Soc.Cem.Nadear7%95_ NlpaonOnCo 10% -s% 9*58 350 .32000 282% +a% 20 Soc. Cm. Nuclear OKI Elec. lad. 891 _ 30 3%99 09% -i% —20 SMwe>gS%96 30 48% 641 i Barit 2% 00 be extended WorfdBank795 600 10% +8% 20 40% *35 SOM, Yorkshire Inti. 6% 2001 — 20 rauumi BaoKT* 44% 233 By Our Financial Staff AW _ MB 2242 3ml »•% -8% 752 SANWA INTERNATIONAL LIMITED BANCO DE BILBAO, 5JL Saritmoo Corpn. Z% 99^. M4 3*3 02 THE PARIS stock exchange is TWyo Yoden 3% 200 284 ft 320 IMS 1MTK *144 30 4-3 —*41 to extend Its experiment in snuuons i ToA&u Ceramics 3 2000 - CHEMICAL BANK INTERNATIONAL GROUP MANUFACTURERS HANOVERUMTTED AvonCap.CrapR.5%94 Uhm,niir. -a.mpF. MB UM 1X9% -8% -UO continuous trading later this — 230 TUB* BrtL Land Conor. 6%99 — 75 1105% -n% -3*0 MORGAN STANLEY INTERNATIONAL month as part of toe cam- Chrysler 5% 96. 168 120% IS -9b —3*191 paign to modernise the CtrancH ol Ewope692 320 ran Mb 41% 90 CradKraBtaH5%94 bourse’s image. Eight stocks 100 TMQ% 357 48% -30 BANC INTERNACIONAL (ANDORRA) BANCA COMMERCIALS JTALIANA Draoehr 8k. Fta. 5% 95 20 rum, ‘No MoraaUon will be added to the seven Gen.0ccMaaBde4%94 0 1336 a day's price. Oendaie F. 884. 95 188 1388 vi BANKAMERICA CAPITAL MARKETS GROUP BANKERS TRUST INTERNATIONAL LIMITED currently traded throughout 5% • price. . 98. Hanna 5% 120 198% 1 “ •*“ 1 toe day, toe Stockbrokers’ - T*** • ndwigitioo BANQUE BRUXELLES LAMBERT SA. BARING BROTHERS & CO., LIMITED lnLF.FMBQd5%94 0 1388% niirn hkT""* of the add- Association said. N. Zealand Steel 9% 96 78 tfffl Oberos. Kftwfc. 5%9S COUNTY NATWEST CAPITAL MARKETS CREDIT LYONNAIS The move is partly aimed 10 1182 Price a weak !.5%95 30 1U4% earlier. at making ENSKELDA the bourse more Mmtati Oeaoratnated W, CREDIT SUISSE FIRST BOSTON LIMITED SECURITIES dmtan Mies n-ri, ,if muiforuvnu eonuM UMnzD attractive to foreign investors, PMbro-Sricmon 5% 97 . 4 49% MB i $L 94 ^ who have been actively buy- sss 4«% 4.0 LIMITED FUJI INTERNATIONAL FINANCE LIMITED Sattai Eure. 02001 _Z HRSTINTERSTATE CAPITALMARKETS -9% U7 * lb0" menn rate} ** US ing French stocks in recent Tokyo EJec. Par. “9% 4*2 SSreiSSE ‘W'ws- CJC8B-T0 GENOSSENSCHAFTLICHE ZENTRALBANK AG KIDDER, PEABODY INTERNATIONALUMITED months and who are expected Tokyo Men open* 5% -2 MB vmwu Wortt Bask 5% Conirartme Brarea; DmwmhMad to participate in toe planned 9fl hi doHm udw nrkamTia 00 Oaa. data-RmdSTSr KYOWA BANK NEDERLAND N.V. IJCB INTERNATIONAL UMTTED privatisation of 65 state-held banks and companies over toe MITSUBISHI TRUST INTERNATIONAL LIMITED SAMUEL MONTAGU & CO. LIMITED vex snuuons next five years. dw week Am.E0.Os.Cr.5%91 99% 200% 44P* 8 » SATEAMA BANK (EUROPE) SA. SUMITOMO TRUST INTERNATIONAL LIMITED Last March a 90-minute Denaaiic6%96 20% 184% M2 block morning session for Dow Cbemtcal 6% Ol _ 98% 99% 31 St TOKAI INTERNATIONAL LIMITED TOYO TRUSTINTERNATIONAL UMTTED EJS 6% 96 selected leading shares £72 was Prorita* dr Quebec 698 10 98% St St 623 YAMAICHI INTERNATIONAL (EUROPE) UMITED introduced to complement tbe m day 49% err walk 40% HATASTREAM lateftratloaa). main trading session, which The prten* over trie post week wore supoilttl runs for two hours to 14.30 or KeraStoriMf riy- ,,, ModestoaBkCangmande; Brnwe Generate do »««*«««•« local time. In June five UmSdwwsSBarS SSSSSto Moomene Baric Hodartaad MV; Ptereon, HeWring »riPlS»^ *?£&** LowmbonrHj smaller stocks began to be Chemlcai Baric International; Chase Manhattan; August 1986 CCUemp International Bank; «v-i ^okjo International; traded experimentally over a (Seramtlen; EBC Amro Baric; LTCB Cotnmeretal deFmKO seven-hour period each day, Corporation; Hambnn Bank; IBJ Inremailonal; ladder Peabody Sachs •nwriwOtatai Stanley loramaiianal; NRcko Securities Company F«TOB‘ bridging toe morning and «•* Smith; Moroan Sodete Genaraia Straus Turnbull; Surnttomo S*™*' Montagu and Coj afternoon RmcwlnUimUMM; SwteBSwsww **** =wp®»«tan sessions. Two fur- GO,- wood Gundy. IhttnwUauat S. G. Wkhvu aad ther stocks were added later. V' . — ! ) Financial Times Tuesday August 12 1986 15 INTL. COMPANIES & FINANCE FOOD GROUP MOVES DECISIVELY TOWARDS A UK COMPANY All of these securities beemg been sold, this announcement appears as a matter of record only. Goodman cool on RHM ambil BY ANDREW GOWERS M LONDON m PAT GOODMAN has every We want to tafld rela- a long-term "We didn’t that want to do . . . But I Reuters Holdings PLC reason to be pleased with his first tionship.” QOOOMAN FKELOeSt couldn't say that for ever and a day shopping trip ip London. Before Over at BUM'S leafy Sale* by AMon headquar- we'd want to sit with our sharehold- leaving for Honolulu recaiUy the ters at Windsor, just outside Lon- fog as it is, even if we amiable A$m had a marvel- New .Zealander who is don, Sir Peter Reynolds, the chair- Vegetabl 29 lous working relationship. It will be chairman of Goodman e oOa 397 Fielder, the . man, and Mr Stanley Metcalfe, the Bakeries 234 IB constantly under review. American Depositary Shares Australasian food group, spent 2,365,137 managing director, are not amused. Plow and starch 182 14 “In no way are we using position £107m ($158.3m) to buy what he They were furious when fen! 12 S & W 1M as a platform to launch a total bid Representing calls a “strategic" 14.8 per cent Berisford, Grocery products 143 11 the commodity trading now. Equally, well certainly protect stake in Ranks Howls McDougall, Special foods 78 8 and processing group, sold its stake our position if there's an intruder in the Sour mining baking Other 130 10 UK and to Goodman at the end of last the market,* Ordinary (Limited Voting) Shares of lOp each Total 1,900 be said. 14,190,822 B group. month without so much as a by- For now. wifi say L Until two weeks ago, die group he Mr Goodman , > j», your-teaue. Mr Goodman did not heads “ only that he is interested in getting created earlier this year by Consult them either he their knows which they have been surrounded access to RHWs research and de- i the merger of two Australian com- answer would in any case have up dismantled as to now is being velopment facilities, which are panies with, j the company he built been “no". part to de- of the neighbours' efforts strong in areas where Goodman through fitiflintfi op a series of poqirif So what is the Goodman Fielder velop closer economic relations - - Fielder also has a big presence, i in New Zealand had hardly been group? And what does it want with creating need, oppor- an extra and such as wheat starch. He also al- heard of in Britain, despite being RHM? Is its intention really to seek tunity, for rationalisation. most certainly wants a seat for his the largest food manufacturer in friendly co-operation - some- or Following the merger, Australian company on the RHM board - and Australasia. It is now the largest thing altogether more predatory? brokers estimate there could be an- believes he could offer RHM a word single shareholder in one of the nual cost savings of nearly AS20m of advice on improving the perfor- UK’s biggest Goodman Fielder was created in food companies. by 1688. Mr Goodman said the ben- the spring of this year with the mance of its baiting side. Nor, apparently, was his visit to efits could be greater still as the than merger cd Fielder Gillespie Daws Other he is full of am- Britain intended to be the last "I re- combined companies work to res- and Allied Mills of Australia with bitious talk about “pushing added gard tins deal as more significant tore the Australian bread h*Wng di- the Wellington-based Goodman value products around the world," than any other we have done," he vision, for example, to profitability group. This created a food group as he puts it Essentially that said. “In no way will this be our last and milling to restructure flour in nn» an s that he is looking to acquire investment with total turnover of A$1.3bn in Europe.” both countries. (USS805Jsn), market capitalisation companies in Europe which are in- Goldman Fielder's RHM coup fol- No combined annual figures are S. Securities of about ASl^bn and interests volved in processing primary prod- Merrill Lynch Capital Markets G. Warburg lows another, more celebrated An- available yet for the group, but the ranging from edible nils and marga- ucts coming from his own opera- tipodean incursion into the British Melbourne broker McCaughan Dy- rine manufacturing to flour ruling tions down under. food industry: last year’s bid for Al- artH Kulring son estimates that the company win One possibility he raised was that lied-Iyons by Elders EXL, the Aus- probably earn net profit of around RHM would be his “eyes and ears" tralian brewing-to-banking group The combined companies have an AS87m in the year to June 1987, ris- looking for such possibilities in the which intriguingly — is linked to estimated 65 per cent of the Aus- ing to AS115m in the following year. UK. Whether it is also expected to via tralian «nrf New Zealand margarine Goodman a The merger has also provided a function as an acquisition vehicle market, 85 par cent of the retail But on the surface at least, Mr springboard for international ex- proper remains to be seen. market for oils, 30 per of that. Goodman's style could hardly be pansion. Mr Goodman said The City of London is certainly tmrr\ the Australian bread market and more different brash ap- none of the individual companies deeply suspicious. “I cannot im- mare ft*" 30 per cent of flour mill- proach of Mr John Elliot, the Elders before the merger was large agine that they (Goodman Fielder) ing. gnnngh retivJ chairman whose attempt on Allied to have attempted an in- want anything other than Ranks AUrkaeseotnaa AnwybtmtoU, this annouxaneni appears a mnner of u/Or. Aupot.1966 is still being considered by the UK The move to merge them was vestment of the RHM kind. Hovis,” said Dr David Lang, food Monopolies and Mergers Commis- long overdue. The food industry in As to his intentions, the chair- analyst with brokers Henderson FINANCIAL TIMES sion. both countries was fragmented and man is playing a predictably dose Crosthwaite. “And Elders is not far CONFERENCES "We want tofokea more gentle, inefficient at a time of stiffening Hand. “It would have been very behind.” conciliatory approach,” he damns. competition in world markets. Part easy, for us to buy the holding and Additional research by Robert "We want to avoid confrontation. of the mantle of protection with htflirf up to 30 per cent," he said. Kennedy in Sydney. Risk Renown earnings plunge 23% Haggle boosts Profits fall at Management © BY YOKO SH1BATA IN TOKYO turnover 18% Arab Banking RENOWN, a leading Japanese retailers to 203 per cent from clothing wholesaler, suffered a 183 per cent, an increase in By Jim Jones in Johannesburg By Our Financial Staff instruments JDC CORPORATION 23.2 per cent fall in pre-tax sales staff, expenses from the HAGGLE, South Africa's largest ARAB BANKING Corpor- (Nihon Kokudo Koihatsu Kabushiki Kaislia) profits to Y4.61bn ($29Am) In completion of the Osaka branch wire rope manufacturer, in- ation, the Bahrain-based (Incorporated with limited liability in Japan) the half-year to June. and other extraordinary charges. London creased turnover by 18 per cent international bank, bas re- Net profits were down 20.4 For the full year. Renown in the first half of this year even ported a decline of nearly 15 & 16 September, 1986 per cent to Y2Jjlbn, on turn- expects pre-tax profit un- U.S.$30,000,000 though work stoppages led to a fifth In pre-tax profits for over of Y105J3bn, a dip of 0.4 changed at Y11.9Sbn, and net the loss of three weeks' produc- ' the first Half of this year, DUE 1991 WITH WARRANTS TO SUBSCRIBE FOR per cent. The poor performance profits of Y5A8bn, down 42 per 2V& PER CENT. GUARANTEED NOTES ropes division. The to $61 m from S76m, after was blamed on the rise In the cent; on flat turnover of tion by the FINANCIALTIMES SHARES OF COMMON STOCK OF JDC CORPORATION stoppages affected recovery of total loan loss provisions CONFERENCES rate of products returned from Y221.5bn. unconditionally guaranteedas to paymentofprincipaland interest by fixed expenses which resulted in were boosted by almost 40 profits rising at a lower rate per cent. Forinformation please return this jr\ -lk : than turnover. Specific and general pro- advertisement, together with your The Tokai Bank,’ Limited *l Sales rose to R335m business card, to: Montana mine project plan visions amounted to 3182m (KabusJuki Kaulia Tokai Ginko) «r ^ . ($127.9m) from R284m. Operat- compared with S131m for the MINERALS, a Canadian in Montana. profits before interest in- Financial Times ISSUE PRICE 100 PER CENT. - LAC tag. ing first half. Extraordinary :* v 1985 nference Organisation gddmining firm, C&evrpn Ctnporar Each company has a one third in- creased to R473m from R46.3m Co •», i financial reserves were mean- tern and ManviDe Corporation; both* forest and Chevron is operator. The and pre-tax profits ‘rose to while given as ?120m against Minster House, Arthur Sheet, of the US, are going ahead with de- mine will start operating in mid- ~R463m from R41.1m. 3105m. London EC4R9AX. - Exports were affected by the .. vetopmeni of the Stillwater ptoli- 1987 at an initial milling rate of 500 dipped slightly Alternatively, \ Rand's temporary strength early Group assets noro and palladium mining project tonnes daily. over the six months, to feleohone 01 -621 .1355 in the year and some of the com- 9l2.6bn from SlS.lbn at the telec 27347 FTCONFG. pany's export customers have ' 1985. The loan port- fax:01-6238814 come under pressure not to buy end of edged np to $5.3bn from US $60,000,000 South African products. folio $5bn, and shareholders' funds First-half earnings per share were 3100m higher at 31<3bn. rose to 110 cents from 101 cents Banamex and the interim dividend has The bank, established in ^ J been maintained at 25 cents. I960, is owned equally by the Securities Co., (Europe) Ltd. Haggle is controlled by Anglo governments of Kuwait, The Nikko V. * • Banco Itamml da fnfiaaco.SJt. American Corporation and and Abu Dhabi. Notes 1992 Libya Reinsurance Floating Rate Subordinated Due Federate Mynbou. United Gulf Bank (UGB) The Financial Times proposes • Nomura International Limited Tokai International Limited to profit in the first to publish a survey on the Interest Rate 6%% per annum returned half of 1986, reporting earn- above subject on 11th 1986 .Interest Period August ings after provisions of 34m Monday 8th September Brothers International 11th February 1987 compared with a loss of 310m Mitsui Trust International Limited Shearson Lehman Interest Amount per 1986 US DOLLAR in full year 1985, Reuter adds Baring Brothers & Co., Limited Cosmo Securities (Europe) Limited U.S. $6,000 Note due THE WORLD VALUE from Bahrain. For details of advertising 11th February 1987 US. $17230 rates; please contact: Credit Suisse First Boston Limited Daiwa Europe Limited HUE IT EVERY l«B*Y The bank said rt expected perform- Nigel Pullman Suisse First Boston limited a steady earnings Dresdner Bank Ak lien gesellsc haft Lloyds Merchant Bank Limited Credit Financial Times Agent Bank ance to continue for the rest of 1986 and that past prob- Bracken House Samuel Montagu & Co. Limited Saitaxna Bank (Europe) S.A. lems bad been overcome. 10 Cannon Street London Salomon Brothers International Limited SocteteGfeterale UGB was one of five banks EC4P 4BY Tel: 01-248 8000, Extu. involved In failed merger 4063 talks last year. Shareholders Publication date is subject to Of another of these banks change at the discretion of Bahraini Kuwaiti Investment the Editor. ' . .3.* •' 1 .1 S Group—yesterday agreed a i» * J merger with Bahrain Inter- national Investment Centre. UGB said total loan loss provisions rose to 320.2m, representing 10 per cent of ua $250,000,000 Baring Brothers &Co., Limited total loans and 49 per cent of r. non-performing loans. Assets at end-June were 8401.9m, a decline from V*! are pleased to announce the opening of their $502. 7m at end-1985. THE REPRESENTATIVE OFFICE BANK OF BOSTON CHASE MANHATTAN SEOUL CORPORATION CORPORATION EKERGY RESOURCES & located at US$250,000,000 SERVICES INCORPORATED Subordinated Floating Rate Subordinated Notes due 2000 Net Asset Value Floating Rate Notes Due 2001 . 1212, Kyobo Building 31st July 1986 For the three months 65/8% per annum 1 2th August 1 966 to 1 2th November 1986 -1, 1-ka, Chongro $7.47 Interest Rate the Notes will carry an interest rate of 6^6% per share (unaudited) Chongro-ku Interest Period 12th August 1986 per annum with a coupon amount of Seoul 110 12th November 1986 US$167.71 per US$10,000 principal amount, Interest Amount per payable on 12th November 1986 Republic of Korea U.S. 550,000 Note due 12th November 1888 U.S. S846.53 Bankers Trust Company, London Agent Bank Telephone: (02) 736 0692/4 Limited STOCKHOLDERS FAR EAST Credit Suisse First Boston Agent Bank Telex: 33166 BBSEL INVESTMENT INC. Facsimile: (02) 7 36 0695 (groups 2 &. 3) Net Asset Value 31st July 1986 Series 041 Oscar Strugstad $4.88 William Ramsay per share (unaudited) Representative Representative U.S542,000,000 Short-term Guaranteed Notes - issued in Series under a t Bankers Trust u.s.$2so1 ooo,ooo Note Purchase Facility by International Capital N.V. BANCO Dl NAPOLI (Incorporated in the Netherlands Antilles Mount Isa Mines INTERNATIONAL S.A. U.S.$200,000,000 (Coal Finance) Limited u.s.siso.ooa.MM Floating Rate Subordinated Series of Notes issued Guaranteed Notes Du* 1996 Floating Rate Subordinated Notice is hereby given that the above Credit Agreement dated Notes Due 1997 under a Production Loan and For the three months an Interest Rate of 8 ft% per annum. For die sx months 11th August, 30th March, 1983. carry 13th August, 1986 to 13th November, 1986 Issue Date of the above Series of Notes is 13th 1986 to 1 1th February, 1987 the The the Notes will cany an interest rate of 6He per cant August, and the Maturity Date will be 13th February, BARINGS Notes will cany an interest rate of 1986. per annum and interest payable on the relevant 1937, The Euro-elear reference number for this Series is 6M«% per annum nub a Coupon interest payment date 13th November, 1986 will be reference number is 921225. Amount of US533S.-42 per 25614 and the CEDEL US$1 67.71 per US$10,000 note. US$10,000 Note, payable on 1 1th Manufacturers Hanover Limited February, 1987 Inttmatkmal Weatednster Etenk PLC Issue Agent festers irutt London - Agent Bank Company, London AgntBak 12th August, 1386. \: > -n 2 - 3 B X * \ Financial Times Tuesday August 12.1986 16 UK COMPANY NEWS GT takes Hawley hopes restructuring TDG up 37% but sees increases Berry stake off BET bid to ward slowdown in second half formance across most of its UONH- BARBER Transport Development Group, tion and plant hire companies BY off difficult interims Ensign the storage and distribution also increased profits in divisions and there are Brengreen at stripping out profits of £1.4m and at that date the HAT Group, the paints, March 1986, By Charles Batchelor holding company, yesterday conditions. The weakness of better than expected. In UK minority interests and intang- had net tangible assets, exclud- the Bjr Charles Batchelor scaffolding and cleaning reported a 37 per cent rise in Australian economy and road haulage, the customers are business, yesterday revealed a ible assets in the shape of pub- ing related properties, of £4Jm. GT Management and group of the AS led to profits before tax to £15-55m, depreciation switching to quality, producing Hawley Group, Ur Michael at lishing rights, amounted to Telling said talks were of its supporters yesterday major reorganisation aimed Mr but warned that it would find it some redaction in profits. ‘Ashcroft’s services company, almost 95 per cent of share- bought a near 20 per cent lucrative increases in volume staving off a hostile £92m bid taking place with an investor difficult to match that rate of Total operating profits came yesterday confirmed its inten- holders’ funds. It suggested that stake in Berry Trust in an for TDG and this, combined from BET, the diversified group involving the manage- progress in the second half. to £19.53m against £15.78m re- tion of playing a part in the if BET’S share price fell further, attempt to defend Berry with lower fuel costs, has added industrial services group. ment of the merchanting divi- Turnover in the first half of stated to reflect exchange rate £31m agreed bit by BET for it might have to resort to a against last month's hostile a couple of points lot the HAT is selling its glass sion. He declined to comment 1986 rose from £229m to fluctuations. The pre-tax figure Brengreen Holdings with the rights issue to shore up the £86m takeover bid from in margin. Losses at the express division to Heywood Williams, on a disposal price but said the £248-84m, with the continued benefited from a reduction purchase of a further lJn balance sheet. Ensign Trust, parcel’s subsidiary were down the aluminium and glass sale would take place if HAT strong recovery shown in the net Interest payable, down from Brengreen shares. advised by The GT concert party to around £Jm from -£800,000 products manufacturer and Last night, BET, second half last time. Condi- £4. to £3. 98m, and jo**-* stayed independent. bought a total of 6.19m shares 39m and the operation may The purchase of 1.1m shares supplier, for £i0m. It also plans Barings and Rothschild, £186,000 last time accused BET’s manage- cent Berry's tions were favourable for road redundancy costs of at 46Jp each and 200,000 at of electrical and countered by accusing HAT of HAT or 19.55 per of soon be fit to stand on its own to dispose its transport in the UK, but (£310.000). . 46p took its holding to 14.33m having balance sheet ment of "a history of U-turns" equity from United Kingdom . -—whether within the group or plumbing mercbantlng business. a stretched demand was easing towards the The interim dividend is raised or per cent. owns no disposals over the past four years. It Provident Institution, the it remains to be seen. 22 BET News of the restructuring which required asset the six months, said Sir earnings per outside singled out for criticism several life end of from 1.7p to 2p on easy Brengreen shares. timed to coincide It said that its own gearing was troubled mutual company. A sale should be enough plans was disposals in cable, computers James Duncan, the chairman. share of 6.64p (4.66p). Last Hawley owned 11 per cent of document 65 per cent at the end of March Taking the concert party's as other express operators are with HAT’s defence video rental. Road haulage in the UK rose year, reporting taxable profits Brengreen before the announce- and had since fallen to below 60 and TV and It also holding to 8J57m or 27.36 per apparently keen to taka ant which attacked BET, “a strongly from £2.86m to £4.67m of £29.7m and earnings per ment bv BET on July 22 of a per cent said that £26. lm (57 per cent) cent. competitors. A strike in the disparate conglomerate whose at the operating level. Storage share of 12.4p. the company double-headed agreed bid for of the rise in BET’s 1985-S6 GT has already described New Zealand docks slowed the insatiable appetite to buy and BET point'd out that HATs remained the biggest domestic paid a total dividend of 6J2p. Brengreen and a contested bid operating profits came from the Ensign bid, launched on deliveiy of frozen lamb, holding sell disguises a creaking share price had dropped from earner, though down slightly at The chairman said that pro- for HAT, the paints, scaffolding acquisitions. July 25 as "nonsensical, mean back UK storage profits tempo- balance sheet...'’ 120p in 1983 to 94p less than a £5.5m (£5.63m). Other services vided the UK economy remained and cleaning concern. HAT said that Mr Nicholas and opportunistic.” It said rarily; and both reinforcement BET, whose share price has month ago, while over the same added £2.45m (£1.34m). firm, there were grounds for BET has sizeable linen rental Wills. BET chief executive, bad yesterday that it had managed exhibitions grew by £im fallen since last month's bid, period BET’S share price had Overseas, Sir James said that optimism about the outcome for and operations under the Advance sold 100,000 shares—well over the Berry portfolio since 1969 with the cycle in the latter is offering five new shares for more than doubled. in both France and Holland the the year as a whole. each Initial labels and has been one quarter of bis holding in and it represented an import- favourable phase. As and every 17 in HAT. On the basis Mr David Telling, HAT chair- transport and storage com- There was an extraordinary now in a engaged in an active acquisition man, the group's BET—at 3S0p per share. "If he ant part of its investment several of the group’s long- of last night's closing price for said that new panies increased profits and credit of £305.000, compared programme to extend its clean- thought BET was such a marvel- management business. running niggling problems are BET, down 3p to 405p, the offer strategy for growth was to focus continued to perform well. In with charge of £409,000, as activities. lous “It is in the immediate and a ing to 130p, at on service businesses, hence the investment, you would ex- the principal West Coast now resolved and the . second values HAT, up 2p long-term interests of GTs the US net profit on the sale of pro- The acquisition of Brengreen planned disposals. In the year pect him to be a buyer, not a a strong half is usually significantly USp per share. that carrier, Willi g, made perties and investments, leav- would make it an even more seller HAT said. and Berry’s shareholders than the opening period, HAT, advised by S. G. War- to February 1986, its merch ant- recovery. Road haulage abroad ing a surplus of £&97m better powerful competitor with Haw- Berry should remain inde- does not seem burg, said that BET'S gearing ing division contributed pre-tax See Lex made £4. 18m (£3.7m). storage transfer to re- a target of £35fm which earlier this year pendent and that its portfolio (£3.82m) for leap ley, £ 1.57m (£1.43m) and other ser- out of place. The shares at Pritchard Services should continue to be man- serves. bought vices £1.17m (£833.000). are on a prospective p/e of If. aged by GT,” it added. Group, another cleaning com- The reinforcement companies, • comment A yield of 5.5 per cent helps £145m. A strong additional reason pany. for at and abroad, in- Transport Development Group underline TDG‘s quality in an is that success would give both home Brengreen's shares were un- Buy-out at Burmah per- uncertain market. company profits, exhibi- an improved Ensign ownership of Berry’s creased and the has enjoyed changed at 46 p yesterday. BY WILLIAM DAWKINS 1L7 per cent holding in GT. Ensign and funds which it MANAGERS of Maccess, managers of Maccess with 20 Maccess' THE sales have grown at manages own a total of 22 Britain's largest chain of per cent of the equity. The rest an average of per Guinness asks 17 cent per cent of Berry. up automotive parts cash and is held by a consortium of insti- annually over the Ansbacher recovery speeds past four GT paid £5J>3in for 2.02m yesterday tutional investors led by years, carry wholesalers, reaching £55.9m in the Berry shares at 273.19p each, SE to approve raised Charterhouse Development major financial and manage- of results for the whole of 1988. announced that they had 12 months to last December, while other members of the Henry Ansbacher Holdings, their Capital with Citicorp Venture reconstruction which left Central costs rose fay £162.000 more than £X0m to buy when the group made a £lJ2m concert party were The Bank the merchant bank group which ment changes draft OiL Capital. net operating close collapse it more than 50 per cent to £882,000, reflecting extra business from Burmah ivofit. of Bermuda, the US Deben- came to 18 Like many in the present Based Burmah 's months ago. raised pre-tax owned by Groupe Bruxelles legal costs. Ansbacher has cut By Lional Barber in Cleckheaton, main disposals in ture Corp. Baring Brothers, Belgian holding per cent of its staff in the cavalcade of management buy- Maccess employes 650 people in the past year include its Kleinwort Benson and Assur- profits to £3.06m In the six Lambert, the 25 Pargesa, its Swiss last year. Guinness, Uie UK drinks outs. the West Yorkshire eight motor parts and Australian automotive division, ance du Groupe de Paris. months to June 30. This company and associate. group, has submitted for Stock company is being sold because accessories cash and carry out- the Rawlplug fixing materials The concert party also in- reflected improved perform- It disclosed pre-tax profits fay tax profits Exchange approval a draft its parent group is pulling out lets. one hardware and DIY business and its activities in cludes Cazenove (Berry's ances by its core merchant Ansba Cher’s post its merchant banking oper- shareholders' circular which of peripheral activities. dealer Pakistan. brokers) and the directors of banking, insurance broking and were £2. 16m in the half-year ations of £2B7m, after transfers attempts to explain its proposed Burmah, the UK's oldest oil The management team is The company has over the GT and Berry. shipbroking businesses, said to June. It made a further to hidden reserves. Up from controversial board changes. exploration company, has been headed by Mr Ken Widdowson, same period spent £18m in buy- Mr Richard Fenhalls, group £5.35m extraordinary profit £l-32m in the previous com- The Stock Exchange has the busy in recent years disposing the chief executive, who joined ing oil and gas prospects In managing director. from sale of its holding in parable period, this included raises power to request changes in the of non mainstream divisions to the company shortly after its Colombia and the US and Soros stake Results for the previous com- Brown Shipley, the London results from Ansbacher^ circular which has been the concentrate more on its formation in 1974. He said yes- another £8.3m on the purchase in London IntL parable half-year, ending Sep- merchant bank. Guernsey banking; trust com- subject of sensitive discussions lubricants and speciality terday that Maccess was aiming of a speciality chemicals 30 1985. showed a pre- Ansbacher, working in con- and Investment manage- By Charles Batchelor tember pany between Guinness, its financial chemicals operations. for a stock market flotation in business. Clow Corporation of tax profit of £2-29m. Ansbacher cert with Its major shareholder ment group, and from US ” Soros Fund Management advisers and a small number The deal leaves the 30 senior the medium term.” Michigan. last year changed its account- Groupe Bruxelles Lambert, the corporate finance activities. of New York has consolidated of institutions in the City. ing period to end December 31, Belgian holding company, built Ansbacher has specialised to its position as the largest Provided the Exchange agrees in line with its major share- up a 21 per cent stake in advising on mergers and acqui- shareholder in London Inter- to the circular's contents, holders’ reporting years. Brown Shipley then sold it sitions in the media and com- national Group, the contracep- Guinness will be free to send The group’s stronger per- again in June after fierce oppo- munications sector in both toe English Trust improves by tives and fine china company, full It to shareholders, thus pre- 21% sition to its hints of a formance in the six months to and the UK. with the purchase of an addl- US paring the way for an extra- June continued its recovery takeover bid. Seascape Insurance, Ana- ordinary general WITH profitability continuing iterated that it was well placed per cent to 8B7p and a final ional 2 per cent stake, taking declared in- meeting which from the disastrous losses it Ansbacher no bacher’s Lloyds broking subsi- will vote on the to improve during the second to take advantage of the oppor- dividend of 2p makes a total its holding to 7.69 per cent terim dividend yesterday, proposed suffered in 1984-85. Losses in diary, made pre-tax £675,000, changes. These include six months the English Trust tunities that would arise from of 3p net, an increase of 0.27p Soros said it began buying the ap- the 12 months to March 1985 though earnings per share down from £1.03m in the six Group was able to lift its full the many changes taking place on last year’s adjusted 2.73p. UG shares about a year ago pointment of Mr Ernest totalled £31m, largely owing to reached lJ5p. Mr David LeRoy last September. Sea- pre- in the financial sector. scrip issue “ for investment purposes.” months to Saunders, Guinness chief execu- 1985-86 profits to £2.93m A further on a and Lewis, its chairman, said that “ purchase of Laidlaw Adams scope Shipping, a sbipbroker, tive, as group chairman tax, an increase of 21 per cent one-for-10 basis is also pro- We know the company well “ unforeseen and They added that they looked Peck, a New York investment in the absence of earned pretax £4,000, compared chief executive. over the previous year's £2.43m. forward con- posed. and have met the manage- circumstances" to the future with bank later resold to its pre- Ansbacher with a £62.000 loss. The turn- Guinness has approached a During the second half the fidence. Tax for the year accounted ment." a spokeswoman said. vious owners. Intended to resume payment of around reflected greater activity number of businessmen, some group was granted full banking for £ 1.08m, compared with The stake had not been dividends determination Earnings for the year to The group then underwent a after in the tanker market,. of Scottish origin, inviting them status by the Bank of England £0.97m, and left available pro- bought with the aim of sell- to join the group board as non- and yesterday the directors re- June 39 1986 Improved by 27 fits £0.39m ahead at £lR5m. ing It to any potential bidder for UG, she added. Soros Is executive directors following considering the successful £2.5bn takeover a private fund management Saatchi THE CRAYF0RD ARGO of Distillers, the international group headed by Mr George Soros, a drinks business. The circular is 58, professional ALL-TERRAIN VEHICLE Dataserv buys with rights money manager. listing in likely to contain the names of cash a Tokyo the proposed directors. The 2J>m most recently BY ALICE RAWSTHORN Dataserv, the computer main- profits of £471,000 cm turnover diversifying from its original acquired UG shares were Last month, Guinness aroused Saatchi Saatchi, the inter- tions to a small sharehold- tenance and leasing company, of £5.1m, including a £200,000 leasing base. Maintenance, par- bought for between 188p and & buy controversy in Whitehall and national marketing services ing in has made the first of the profits contribution from com- ticularly of IBM computers, 190p each through Quantum the Japanese advertising the City by its proposal to scrap group, is considering seeking a agency, AsahL The company has acquisitions heralded by its puter maintenance. now represents over 50 per Overseas, a Netherlands plans for a group supervisory quotation on the Tokyo Stock since increased its Japanese June £8.6m rights issue. The Mr James Carr, Dataserv’s cent of group turnover. AntiUes-based offshore fund board to be chaired by Sir in broaden presence Minnesota-based but London- managed by Soros. Exchange order to through its recent Thomas Risk. Governor of the chairman, said that Compel Consideration for the pur- international base of its merger with IlMMUwtfHi listed company has bought the A £149m takeover bid by the the US agency, Ted Bank of Scotland, to run the would be used as the founda- chase will be in the form of shareholding. Bates, which has joint venture Compel group for £4An. UG for Wedgwood, the fine a wmrcornMniitarlrtfrfrffidmtT.IM merged Guinness-Distillers tion for developing the group's 2.61m shares at in Japan. far uifitary, (pMuInra. cmiiDcfiDai. faattrt a price of china group, is The company is already listed Compel supplies computer currently art dMSaf. Not £*758 fka VAT tmmiB. operation. The plans were out- computer maintenance activities 161.2p each, representing 7.83 in London and New York. It The Saatchi board is unlikely under review by the Mono- Export repriifa Mud. lined in a class one circular and peripherals and runs a main- in the Since Dataserv UK per cent of the enlarged share polies and Mergers Commis- applied for a quotation on the to take a final decision on the a formal offer document sent tenance service in the UK In came to the market in 1983 ft capital. YoTk over-the-counter issue until later this year and oummo special- Each share has a par sion. UG's shares rose by New to Distillers on March 4. the year to March 31 it made 6p EOUPMBff C0.UIL has declared a strategy of value of five US cents. to market in December 1983. Since' unlikely to rwiek a quotation UMp. Kill B, HriM, Kart TMII IRfi then it has acquired a substan- until early next year. Saatchi's TfcbPHan 82410 -WnUWWiM tial number of US individual shares, which have fallen in and institutional Investors, who recent weeks following account Better first half for Jamesons now account for about 11 per losses after the Ted Bates cent of its total shareholding. merger, rose 30p to 695p Jamesons Chocolates reported tained at 2p. Last fay ladbroke index year there Saatchi is keen to repeat the yesterday. higher turnover and a reduced was a total payment of 5p from exercise in Japan. Among British companies 1.243-1249 (+18) ROAD HAULAGE loss in the first six months of pre-tax profits of £320,000. Saatchi first considered apply- Barclays Bank, British Telecom Based on Index 1986 despite a fall of about Directors IT WAREHOUSING added that the ing for a Tokyo listing last and Cable & Wireless have 5 per cent in total deliveries by second half would Include the Teh 01-427 4411 DISTRIBUTION autumn as it finalised negotia- already sought listings in Tokyo. UK chocolate manufacturers Christmas period and should and during the period, directors result in a profit for the year. COLD STORAGE said. Operating loss was lower at On turnover up by £259,000 £108.000 in the (£142,000), investment TRANSPORT to £3JZ9m the pre-tax loss fell income, however, was also UNITED KINGDOM, from £113.000 to £104.000. With lower at £31,000 (£55,000) with FRANCE, HOLLAND, the loss per lOp share almost interest charges little changed unchanged DEVELOPMENT THE UNTIED STATES at 2.6p (23p) the at £27,000 (£26,000). interim dividend is being and main- Tax tool £36,000 (£47,000). NOTICE GROUPPLC AUSTRALIA DIVIDENDS ANNOUNCED FINAL EXTENSION Date Corre- Total Total Current of spending for last Pengo Finance N.V. Payment payment div. year year Extends tons Nov 21 nil 0.25 nil its Offer to Fxrimnp, Ik Oess A Non-Interest Heart* Convertible English Trust 2 Oct 14 •1.82 3 •2.73 Senior Ssbonfinicd Guaranteed Debenture* doc 1991- Class B Non-Interest Interim report Debron Lavs .intint 0.5 Oct 10 nil nil Bearing Convertible Senior Subordinated Guaranteed Debentures doe 1991- 8H per cent ’ Heywood Williams int 2.75 — 2.42 6.75 Convertible Subordinated Guaranteed Debentures 1995 Howard Shuttering ... 0.57 — 0.7 1.4 1.4 For Securities Of Jamesons Chocs .int — o Six months Six months 2 5 PENGO INDUSTRIES, to Stone Intel t3J22 OctI 2J9 4.83 4.38 INC to 30 June 30 June % Fort Worth, Texas, TDG ...... int USA 1986 1985 2 Nov 7 1.7 6.2 Change Dividends shown in A 1 pence per share except where otherwise Sri. “cEf 5iiLSS J£- "sjtt w * r“ Profit before tax (£m) 15.6 11.4 +36.5 stated. Equivalent after allowing for scrip issue, t On capital increased by rights and/or acquisition Issues, t USM stock. 2SS£ SST3 ““S3 S Unquoted stock. Earnings per share 6.6p 4.7p +42.5 A Holder Wmgeccba Dividends per share 2.0p 1.7p +17.6 Shares of Pengo Common Stock For each $500 Principal Sh 530 S3 e Jlmk>r Convmible Filmed Stock. 'sSoD^mdTtk^ Amount of New Deben- i ^^°/Z ^_ VI tures (Both Class and "'“““‘ 3 3 Chairman, Sir Duncan, reports: LLE A Each share The James GRAN convertible into shares of i PenBo Common i^ric‘ Class B) , ,, 200 I 12 Warrants to purchase one share 20 or Pengo Common Stock at 1 Warrants £20 S2.00 Granville A Co. Limited Telephone 01 1212 12 to purchase one dure ofPteggOwrawi 621 aSKf 105 5 .50 8 Lowrt Lane London EC3R 8BP Mombor of The strong recovery in the second half of 1985 has continued into Flmbra Shares of f Pengo Common Stock... Shares of Pengo 1,050 105 the current year. Common Stock for all past due interest g 500 • 50 P/E JteJor CQ°VCTtibic ****** Stock. SSQ li^ddSikm Gross Yield Fully va5L.-.f?.?.. There were excellent results from road haulage in the UK. The High Low Company Price Change div.(p) % Actual taxed 4 4 For each Sl.000 Principal 200 20 146 118 Ass. Brit. Ind. Ord. ... 131 — 7.3 S.6 B.O 7.3 ]l5DWta^S3SSB^SfiSS5— warehousing and cold storage companies maintained profits. Amount of Old Deben- 16.Warrants S. 15 SI.S0 151 121 Ass. Bril. Ind. CULS... 131 — 10.0 7.8 _ / to purchase o™iKflPeSfcSSS?aSgL" -2 mres plus ad accrued in- 107.50 payable S.05 S .50 12b 43 Alrsprung Group ...... 108 7.6 ;.o 8.8 B.O October I, >986 in Peripo nS, rerest In France and Holland the transport and storage companies 28 Arm i tag a and Rhodes... 35 — 4.3 12.3 4. 5.2 1 iaa 108 Bard on Hill .... 185 4.6 2.b 21 X) 19.3 increased profits. There was a recovery in the USA but currency 80 42 Bray Technologies ..... 80 — 43 5.4 9* 8.7 201 75 Ordinary 82 +2 2.9 3.5 CCL 5.8 9.1 I Old 152 86 CCL llpc Conv. Pf. ... 85 — 15.7 18.3 depredation affected Australian profits. cou; ^or payable on and 80 Orrj 235 — 9.1 3.9 subsequent to 23b Carborundum 11.4 11.8 December 1, 94. 83 Carborundum 7 .5 pc Pi. 91 — 10.7 11.8 It will be difficult for profits in the second six months of 1986 to 69 48 Deborah Services ...... Cfl +1 7.0 10.1 7.2 9.5 32 20 Frederick Parker Group 23 •— __ ***** »» «4*f fe# 1966. may thereafter be withdrawn. KcepieJ by Finance prior M September match the growth shown by the first six months. Nonetheless, 125 50 George Blair 120 — 3.8 3.2 3.1 4.4 10. The lermsterms and conditionsmndiriruKnfof theilv FvrhanF«rh>n«arW».__ ... r.—i. - .. . 70 20 Ind. Precision Castings 70 — 3.0 4.3 18.6 15J 24. 1986 and August provided the UK economy remains firm, there are grounds for 218 186 Isle Group IBB — 1C.0 S.O 12.8 19.1 11. 1986 and the relate 120 101 120 — Agent- Hie Exchange Offer b conditioned u; optimism about the outcome for the year as a whole. Jackson Group 6.1 5.1 8.2 7J 387 228 James Burrough ...... 368 -2 17.0 4.7 10.3 amounts of Old ana both classes of New 100 6b James Burrough OpcPf. 100 — 12.9 12.9 Ub W John Howard Group ... 57 — 6.0 8.8 10% 342 Multihouae NV 1035 + 15 — 54.2 70.7 380 280 Record R.dgwsy Qrd.._ 374 — 6-7 11. 100 89 Record Ridgwey lOpcPf 89 _ 14.1 15* 82 32 Roben Jenkins 71 -1 -2 3.1 4.4 TOE EXCHANGE OFFER WILL EXPIRE 37 28 Senmone "A" 38 _ _ 9.2 AT 18:00 PAL LONDON TIMS r, Mltu ... re— TIME). *S: / : —* A r.- — * • v*v^i_v Cz ;-_r • . if... • «•'•} .„ Financial Times Tuesday August 12 1986 17 UK matter COMPANY Tbts appears as a ofmaud only. NEWS annoannment Stone Inti, falls £1.25m Aidcom in talks with The Laird Group but order level at record Addison PUBLIC LIMITED COMPANY JL Stone International, the systems proved a valuable addition to engineering group, suffered a the energy systems division and Consultancy shanp setback in the second six achieved record results. By Richard Tomkins months and for the full 188546 In the transportation division £90,000,000 year saw its profits fall by the business and assets of Stone Addison Consultancy confirmed £L25m to £&09m pre-tax. Peters were acquired in Decem- yesterday that it had made a ber bid approach to Aidcom Inter- However, the directors said 1985. since when £4.6m of orders for and overseas national, a fellow communica- -5l| yesterday that they beltevod the UK r- tions group. But the Multiple Option Facility setback would prove to be tem- have been taken. two com- panies last night gave sharply porary and pointed out that this e comment differing views on the view was supported likelihood by the of reaching agreement. record level of- orders achieved If the exceptional gain is stripped Stone's Aidcom, a market research, Arranger they rose from £93_56m to out from — design and product develop- £100.44xn. figures, the operating profits stand revealed ment group, said that it could The Improvement came in the as down by 24 per cent engineer- see the commercial logic of a S. G. Warburg & Co. Ltd. second half with £68m being Since many ing analysts follow Stone, that merger between the two taken. These were mostly for companies. delivery could look like a repeat of last •’ » after the year-end and .. week's bad news from GKN. Mr Pratt Thompson, Aidcom’s ‘ would benefit the current trad- i V- V chairman, said that if his board ZeadManager ing period. However, the company is really in the electricals sector and could be satisfied that the terms They regarded the year as can point to a series of indi- of the offer were fair and that one of acquisition and consoli- vidual problems as the cause of the interests of its employees Midland Bank pic dation which had greatly its bad figures. The mvket were looked after, then the strengthened group. the seemed convinced and marked basis of an agreement was there. The present order hook and the shares up lOp to 164p. However, Ur Steve Smith, level of enquiries should ensure Group turnover for the past Around 70 per cent of Stone’s Addison’s joint chief executive, Managers a much improved workflow at year (to May 31 1986) improved turnover comes from overseas suggested that the talks had Safety in the US and at Stone at sales or exports and thus the run into problems. ,; from £78.71m to £100.36m but :a; .„• Transportation in the At UK the operating level profits fell dollar's movements had a “Aidcom has got some very The Bank of New York Commerzbank Aktiengesellschaft the same time recent acquisi- by £2.09m to £6.7m. £650,000 negative impact. The good businesses which would tions were continuing to mate Pre-tax profits took- in excep- setcond hiccup occured at Craw- fit very well with ours and we Credit Lyonnais, London Branch TSB England & Wales pic valuable contributions to the tional credits of £lJ29m but also ley, where a tightly priced believe there is a great deal of results. took account of a £455,000 rise order to the US went badly logic in putting them together, Reflecting- their underlying in interest charges to £l-9Lm. wrong and contributed to a but not at any price, only a confidence in the outlook for £lim loss last year. A pro- sensible one," he said. Participants :i the group the Tax fell to £l-53m (£2.1m) “ • directors are gramme of rationalisation has We have indicated our : v and left net profits at £4.73m, stepping tiie dividend for the now put the company on intention to offer a price which against a previous £5-24m. Earn- year up by 10 per cent to -L88p target for breakeven at we believe fully values its ings worked through at 12.4p CIC-Uniozi Europeenne, International et Cie Credit Suisse net, the final being 3.22p Crawley this year. third businesses, but as we under- share. The The transportation division (16p) per 20p stand It board problem was a bad loss at Aidcom’s is not Kansallis Banking Group The Mitsubishi Bank, Limited eds accounted for the major down- The sterliag/dollar exchange the US boiler subsidiary as unanimous on whether that is turn in profits. This arose from rate adversely affected profits American companies acceptable or not." dithered S. Co. Ltd. 1 substantial problems on one before tax by £0.65m. about which fuel to use in the He said the offer was still The Tokai Bank, Limited G. Warburg & international contract for air The exceptional item princip- wake of the tumbling oil price. on the table bnt a statement conditioning, together, with an ally comprised a surplus follow, Order books now look healthy. would be made today “declaring inadequate workload in the ing the rationalisation of the tSone will shortly merge the our interest, or lack of it." TenderPanelMembers Crawley factory. US pension arrangements and loss-making electronics division Aidcom’s Mr Thompson denied Correction of these problems additionally profits on the rea- into transportation and look to this version of events and said and an improved UK workload lisation of Short-term listed expand through acquisitions there was no dissent among his Australia and New Zealand Banking Group Limited The Bank of New York resulting from recent British investments. like the highly successful pur- board members. “ There is and Italian railways' orders During the year the group chase of the Andrews group. complete unanimity of view on Banque Paribas (London) CIC-Union Europeenne, International et Cie Branch would contribute to an continued to pursue the aim at Pre-tax profits of £&5m look Aidcom’s board and as far as London improved performance in the expanding the product range. achievable this year, leaving tire we are concerned, the talks are Commerzbank Aktiengesellschaft Co-operative Bank pic. Irmdnii transportation operations for Andrews Group, acquired in shares on a prospective p/e of still continuing 1986-87. September 1985 for £6m 10 “ We have not had enough in- Credit Lyonnais, London Branch Credit Suisse formation from Addison to give The Fuji Bank, Limited us the basis for making a The Dai-Ichi Kangyo Bank, Limited further announcement yet. but Gulf International Bank B.S.C. The Industrial Bank ofJapan, Limited we will make another statement Howard Shuttering profits fall as soon as possible.” Kansallis Banking Group KZeiziwart Benson Limited Howard Shuttering (Hold- now be able to give more under review slipped from Midland Bank pic The Mitsubishi Bank, Limited ings), the property developer attention to the group’s profit- £6.79m to £63Gm. and there businesses. were extraordinary debits of BP reduces and plant hire group which able The Tokai Bank, Limited TSB England & Wales pic - This has been done by the £38,508 (nil) as the net cost earlier this year polled out of appointment of two directors. of the closures. Malaysian S.G. Warburg & Co. Ltd. its traditional formwork and If; J. Hannah and Mr R. Despite earnings per share structures operations, yesterday Rumsby, to take charge of the down from 3.9p to 2.4p after a interests tax of reported a sharp decline in day to day operations in lower charge £195,284 TenderPanelAgent Lucy Kdbwajr profits before tax for- the year development and plant hire. (£312,170). the dividend is held By at 1.4p with an unchanged 0.7p ! to end April 1986. The former has undergone BP has announced plans to .. expansion and stockbuilding, final. S. Ltd. " reduce its interest in BP Malay- G. Warburg & Co. Profits fen from £748,799 to and company said it should The directors said that with the sia, a wholly-owned subsidiary, August, 19BB £461.206, mainly because of employees’ continued support, lift both turnover and profits to 82.4 per cent in accordance the together with the year's costs associated with in the current year. Plant hire with the Malaysian Govern- closure, the directors said reorganisation, the board is but has produced record turnover ment’s new economic policy. yesterday .that this area of to confident that the group will and profits, and is expected In a capital restructuring, the maintain again be • able to increase trading would no longer be a this. Malaysian armed forces pension Thigr-would year" profitability:” drain on resources: Group turnover for the fund and a Malaysian police co- operative society are to sub- scribe for 12.5m new ordinary shares of MSI, amounting to Brett rises to £0.17m 17.6m of the shares in issue. Andre de Mr Fleming Wicb. managing director of BP Malaysia said FURTHER recovery during the ment .in the sales of the Turnover of the Dutch sub- yesterday that the move pro- second six. months of 1985-86 Norwegian offshoot. sidiary was now increasing vided evidence of BP*s commit- enabled Andre de-Brett, a direct The losssnaking Halequia steadily. Both mail order and ment to Malaysia and its confi- mail order bouse, to lift its full computer bureau subsidiary was retail sales were continuing to dence in the long-term health year profits by £130,000 to closed down last October and rise and the directors looked of its economy. He said that the £188,000 pre-tax. termina- forward to recouping some of the £62,000 net costs of restructuring would not affect Dividends are being resumed taken tiie line the losses generated during the tion were below BP*s Investment in Malaysia, with a final of 0-25p net from as extraordinary debits. The first three years of operations. now running at about M315m- earnings of L71p, against a pre- however, partly provision, was They said that after two years M$20m a year. vious 0.09p. a of £16,000 (Aset by profit of minimal investment they had Malaysia is involved Turnover for the year to BP in the arising from the disposal of a resumed the expenditure pro- marketing and manufacture March 31 1988 edged ahead of freehold property in the US. gramme with further develop- petrroleum products, chemicals from £5.41m to £5.57m and at current response ment of computer systems and and lubricants. It operating level profits, In the year employs 320 the automation of warehouse and expanded from <1H£00 to to the group’s summer cata- people, and has a 7 per cent below mailing facilities. share of the domestic £280.000 the Wembley-based logue had been market. — having been The Andre de Brett, London USM group specialises in out- expectations, adversely affected by the excep- Selection and Bretts' menswear id. size dothing. weather. How- catalogues had been merged In the UK mail order sales tionally poor of into a tingle catalogue for the Debron makes improved but performance was ever, there were now signs and recent per- autumn/wiuter season and again held back by a poor per- improvement Hillsdown Holdings pic retail initial reactions had been debut with formance from the retail shops. formance of the UK further improve- shops had been encouraging. favourable. There was a 0.5p interim IN BRIEF Debron Investments, Wor- COMPANY NEWS cester-based investment group reported pre-tax profits for the Corporation, which now has an CAP GROUP was confident of tory progress and that they six months to the end of June prospects for the interest in 410,000 shares (5J2 2886 of £450,000. And the reporting another year of pro- believed group were encourag- per cent). director; are paying an interim gress in 1987, acording to Hr enlarged dividend of 0.5p. Barney Gibbers, the chairman, ing. WHITBREAD, the brewing and This was the first period with in his annual statement. retailing group. yesterday no contribution from the trad- BRTJNTONS, Musselburgh-based announced an E8a investment and rope manufacturer, ing activities, sold last year ELECTRONIC RENTALS Group wire in a new Country Club Hotel at £100,000,000 facing a hostile when the company was known —Mr J. T. Griffiths, chairman, which is Bearstead, near Hairstone. The Carclo Engin- as Carpets International. said in bis annual statement £4. 96m hid from development described by has had a stake Because of the changes the that the directors expected the eering Group, yesterday as its big- Prudential Whitbread directors do not think that there current year to show satisfac- built up in it by in retail- gest single investment are any relevant comparative Sterling Commercial Paper Programme ing, it being done in conjunc- which figures. tion with the J.T. Group Shareholders of Cl had not stake in the has a 25 per cent received a dividend since 1979. BOARD MEETINGS small hotel chain. A further Earnings per 50p share were in the £4m will be invested stated ar 0.9p both basic and chain's existing five hotels. fully-diluted. Net asset value at FUTURE DATES The following companies havs notified the end cf the period was 63.7p of board moating* to the Stock Interim*— FIRST SECURITY GROUP daws Aug 27 basic 57.lp fully diluted. i-hairman, F. J. Westlake, and Deo IB Mr annual report that Dividend income was £210,000 Britton Estate Sept IB said in his dividends. Official In diced on » aro not with a further £410,000 from Becuonlc Aug 14 be looked forward with opti- Arranged By available as to whether the dividend a Cronbrook interest received. The pre-tax Sept 2 mism to a year of continuing IS figure struck after admini- Aug profitable growth for the group. was Horizon Travel Aug 2D strative expenses of £170,000. mainly on teat year's timetable. Johnson Group Cleaner* Aug 21 MARKHEAT chairman, Mr Paul The tax charge was £90.000 TODAY Motynx — Aug 18 14 Bobroff, said in his annual and there were extraordinary Interims: CaNtai and Counties, Moral Ratcliffs (Orest Bridge) .. Aug 21 the current credits totalling £S.04m being Bulletin. Tnehnleat Component Induat- Scottish Agricultural (nds. ... Aug statement that Sept 9 year's trading was proceeding the net profit on the sale of house antf Rlxecn. Systems Designers Aug 19 as planned and the directors investment in John Crowther Finale— Finals: Matthew Clark, G. M. Firth. that profits Groups and Feltex New Aug 14 were confident significantly. Zealand. Baatmor. Fremlingun Sept S ought to grow LIMITED FINANCIAL TIMES CONFERENCES Pacific Basin Oil & Gas Co Dealers Prices, Investment and the Business Outlook Hoag Kong; 25 & 26 September 1986 of the drastic fan ta the This Start FT energy conference will look at the effects production and marketing of the oil and orice of oil an the development, finance, lr Wijarso.the leading IndonMJan xas of the Pacific Region. Speakers will include: National Offshore J^CQrporaUon, OfflcS, Mr Zou Hin& SeitiorA&rfser to the China Oil and Gas and Mr Wek van Paul Ravesies, President of Arco International Kleinwort Benson Limited Mr Singapore. The event Chairman and Chief Executive of Shell Refining m is to be co-sponsored by the Petroleum News. For further details contact; The Financial Times Conference Organisation jniwtff House. Arthur Street* London EC4K 9 X 01*621 1355 (24-hour answering service) Telex: 27347 PTCONF G \ * > -\ ‘ " - ! : : : ." : . “ i /\ Tuesday August '12.' 1986 18 Financial Times FORALLYOURI TECHNOLOGY COMMERCIAL PROPERTY, ing and the management exe^ LORD KEARTON, former chair- PHONE: cised by the directorate, and man of Courtaulds and the UK COMPUTING INITIATIVE Alvey's goals could be seriously British Notional Oil Corporation, id jeopardy. once asked about the difficulties to faced by a captain of industry A crucial factor is likely direc- in taking decisions, said deci- prove the choice of a new the sions were not the big problem. tor for Alvey. Brian Oakley, who has The difficult part was seeing that government scientist by Standard found- A development Life the decisions were made to work. played a seminal role in difference. the make* adl This is exactly the situation ing as well as managing retire in faced by the Alvey Directorate, programme, is due to the British Government-backed little more than a year. If the industrialist, computing initiative, says Dr right man—an By David Fishlock, Science Editor sooner, he is David Thomas, one of its pro- perhaps—appears Citroen aid gramme managers. Alvey has willing to step down, perhaps consultant instead now committed all its money, national research programme directorate. Industry contri- industrial partners, as part of a prototype fifth-generation com- if central direction ceases in to become a strategy drawn of director. £350m. But it is only beginning launched in 1981, and is aimed buted another £150ra. common research puter for the 1990s. Already it 19SS? to factory to tackle the big problem of at developing the so-called fifth- Sharing responsibility for re- up by the directorate. In short, has forced a shotgun marriage Early this year the UK Whether industry is ready to managing that money to maxi- generation computing systems. search in this way, under one the dons sacrificed sovereignty of Britain's two leading information technology industry shoulder all the responsibilities mise the tangible benefits to These are widely expected to management team, has never for the advantages of Alvey universities in computer design. set up its " IT86 committee and expense of continuing design White- money. Sir British industry. display some “artificial intelli- been practised before in Imperial College, London, and under the chairmanship of Alvey must bo in some doubt, Wiflbms " Bide, advise the By Efoinc Alvey is developing a new gence in what are known as hall. Previously departments As a result. 30 (out Of 44) Manchester University. ICL and Austin to not least when one considers their own way with universities and four Plessey are their Government how to ensure CITROEN Industrie of France kind of management tool—the expert systems. have gone British industrial on the recent Cabinet Office paper no common strategy. Sir Robert polytechnics have roles ia the partners in a £15.5m venture. the continued good health of has decided to market a com. computer with some power to Views differ on the meaning on computer software, prepared Telford, chairman of the Alvey AI programme, alongside 55 Britain's IT industry, including putcr system to help indus- reason and a modicum of of artificial intelligence (Al). Quite evidently, Alvey is not by the Government's Advisory Directorate, calls it “the most and four Government the future of Alvey. It reports design the layout of their commonsense (artificial intelli- One, held by the British govern- companies intended to fold its tent and Council for Applied Research tries important experiment in the laboratories. Where good aca- in October to Mr Geoffrey factory ff**rs. The MAST gence). This is a long-term ment's chief scientific adviser, steal silently away in 1988, The and Development (Acard). organisation of research in the proposals have proved Pattie at the Department of system, originally developed John Fairclough, seconded demic AI original Alvey report saw it as Industrial research managers UK since the second world too “far out" to interest indus- Trade and Industry. la the US, simulates Ute flow from IBM, is that the term are well represented on Acard war.” try yet, Alvey has accommodated of work through file factory. should be avoided. He believes Some interested parties want but its report scarcely men- Nor is there any sign that through its “uncle" ** aim is better design of an, “amplified intelligence" is many Alvey to disappear. We've tions prospects for AL The Whitehall is willing to repeat approach. The cash has been the automated product ion system likely to receive a more sympa- done what the present govern- Brian Oakley believes the experiment. The kind of provided the ’ simulation system can thetic public hearing than any forthcoming dons ment doesn't like—we've Bide committee will probably The “project champions" including willing companies study the idea that the brain being — can find a company to generated a research strategy," help is Telford, of GEC- supplanted. then chairman take an avuncular interest in says one Alvey executive. various options when plan- manufacturing The unions have already keeping their feet somewhere For Whitehall, Alvey has ning a pro- ground. look at the begun to fret about the implica- near the been a traumatic experience. cess, it can number machines needed tions of one Alvey project, Of 88 AI research projects The Government's old ways of and type of factory Boor, the type which as they see it threatens funded by Alvey. totalling £50m, supporting research are far less on the for componctats to encapsulate in a computer 41 are “uncle" projects in strenuous than this co-operative of transport machines and to the whole of the legislation re- British universities. venture, and it has shown no between lating to payment of social To kindle interest among readiness to repeat elsewhere study the overall performance linn. security benefits. If successful, potential users in the possibili- the formula of multi-department of the production already this computer will be capable ties of Alvey's AL the direc- funding for a major research MAST has been several com- of mimicking the human intelli- torate has organised nine initiative. Whitehall is expected adopted by UK gence to the extent of adjudi- “awareness clubs." Each has a to strenuously resist one Alvey panies Including GEC Mech- cating on borderline benefit mission to spread the newly- view, that “we need an Alvey anical Handling and JLewis- claims- discovered word within a directorate, or something like Fraser. In Britfan, AI can be traced specific professional sector such it, in perpetuity.” Citroen in the UK (0936 back to the famous war-time as banking, insurance and pro- Academics, on the other 8822011 says that the computer code-breaking activities at ject planning. Club member- hand, are likely to support system can be used on IBM Bletcbley involving an early ship costs a company £10,000. Alvey. After all, Government and Sperry microcomputer electronic computer called Col- which Alvey matches. Over funding for academic research or any other compatible ossus. By the 1950s, however, ISO companies — from Asda machines. Thougn there are Sir Austin Bide m AI has doubled since Alvey the problem of capturing intel- Stores and British Airways to was bom. AI has been restored competing systems on the ligence was proving more diffi- Citroen Shifting research Vickers and Wessex Water- David Thomas to respectability in British market, says that cult than the believed. pioneers have joined. universities. MAST eaa produce simula- closer to the It becomes increasingly difficult Placing tions in a few hours rather UK bankers, for example, emphasis on Nevertheless, the research to use computers to capture weeks It takes have organised a club project scene must change. not than the other market imperatives knowledge as it changes from short-term commercial to build a prototype expert simulation software. “hard fact.” such as mathe- least to accommodate much industry could system (of the kind discussed on goals, rather Sir Robert Telford of matics, to “soft opinions.” than greater integration of any page last Tuesday) to advise The Alvey this future Alvey programme with prove difficult. programme, John Fairclough them on the business health of a full-scale No sign Whitehall launched Esprit II. the EEC's initiative in April 1983, focused small companies in the market Place in the on four “enabling technologies" The term artificial scientific challenge. into computing technology. is willing to repeat sector of high-technology retail- problem and will take more thought to be crucial to Al: Industry — particularly the intelligence misleads ing. the experiment he Sun for time to solve than the five years very large scale integration myriad of potential users of AI ICL Alvey is working on four allotted to Alvey. The Alvey (VLSI), software, man-machine the public into a 10-year programme. Some of systems—surely holds the key helped champion. By Geoffrey Chari tih major demonstrations of AL report of 1982 which persuaded interface, and intelligent know- its Al schemes may take years to Alvey's future. Unless Alvey TECHNICAL WORK- the Government to launch the ledge-based systems (IKBS). believing the brain including the £7m social more than that to reach the has excited the interest of a already STATIONS supplied by Inter- IKBS is simply a British security system men- market. sufficiently influen- programme assumed it would large and national Computers {I CL) euphemism for which is being supplanted. tioned. Another, involving Shell accept the need for a direc- take at least a decade. AL Alvey's paramount claim to tial sector of industry to mainly for use in factories, through five-year stresses short-term commercial Research and the agro-chemicals torate, even if it contests some Midway a fame must be that it has made demand continuity, financial laboratories and design uses rather than the full-scale group FBC, is an expert system of the detailed management, programme the debate is in full things happen where previously backing is likely to stop. offices, will in future be based scientific challenge of mimick- Marconi, and John Alvey him- to advise on product formula- such as the way It uses the swing, what to do after Alvey: they did not. It has got industry Of its £350m. a mere £2m is on Sun Microsystems work- attracted tion. unfair- should it continue, or stop, or ing brain, says David Thomas self—the programme being spent on the awareness “principle of maximum station products. a and academics Into partnership In any event its who is in charge of this pro- have not appeared to champion The product might be ness" to give its chosen com- change course? in information technology, it programme, supporting user ICL has announced' a director, Oakley, gramme. other technologies such as bio- lubricant or a pesticide for panies an inside track on founding Brian has opened an opportunity for clubs and the ISO industrial collaborative agreement with. retire next year, technology. example. The idea, in essence, exploitation. expects to Alvey is unique in having British industry to return to members. But interest is Sun to offer Unix-based off departments But Alvey executives believe is to elicit and capture in the while Thomas is to Imperial three Government forefront of computer growing much faster than the Where the Bide committee systems and regards this as in computer the experience of a the College next month. —the Ministry of Defence, the it has already succeeded one difficulty is in technology, where it was in the supply of people versed in AI may find greater “a further step in JCI/s takes its name from Industry, and major aim, getting academe and handful of chemists, much of Alvey Department of There is a nationwide shortage resolving the broader issue of strategy or collaboration with harmoniously knowledge commercially 1950s. John Alvey, the former tech- the Department of Education industry working the of how to shift an research question is whether the of skills at the forefront AI other market leaders where nology boss of British Telecom. and Science as joint sponsors. together across a broad front confidential. The — has generated computer technology. programme closer to the market such moves will provide the The Alvey programme is They agreed to fund a common Universities got Alvey funding The biggest demonstration Is programme continue Take away both central fund- imperatives of British industry. most cost-effective solutions." Britain’s response to Japan’s £200m programme under a new only if they agreed to work with Flagship, nothing less than a enough momentum to Company Notices K Mart (Australia) Finance Limited HENRY ANSBACHER 9% Debentures VINTOILS.A. HOLDINGS PLC Sorieie Anonvine NOTICE OF VOTE OF DEBENTUREHOLDERS ON EXTENSION Luxembourg. 37, Rue Noire-Dame R.C. Luxembourg B 18.064 NOTICE IS HEREBY GIVEN, pursuant to Section 14.02 of the Indenture of 1, 1976, that 5:00 P.M. local INTERIM RESULTS HALF dated as July as of time August 1, 1986 Deben- YEAR ENDED ture holders holding an aggregate principal amount of Meeting USS28.091,000 principal Notice of amount of K Mart (Australia) Finance Limited 9% Debentures June 30 September have voted on the 30 Messrs. Shareholder* are hereby convened to ariend ihe Extraordi- issue of extension as follows: .1986 1985 nary General Meeting which will be held on August 22nd. 1986 at 10.00 run. at die offices of Kredirdsnk 5. A, Luxraitwiuseobe, 43, boulevard Ro>aJ. Principal Amount % Of Total Principal £’000 £’000 Luxembourg, with the folio wing agenda: Of Debentures Amount Outstanding Agenda In favor of extension - S 24,783.000 88% Profit before taxation Not in favor of extension S 3,308.000 32% 3,060 MS5 1. To appoint a liquidator for the purpose of distributing the company's $ 28,091,000 assets. 100% 2. Instructions to the liquidator to finalize UrisEquidation of the assets Profit after taxation Pursuant to Section 14.02fa) Debentureholdersof not less 2,161 1,158 ’ distributing to the company's shareholders the shares of Vinton Oil & than 50% in aggregate principal amount outstanding are Sas Inc. and to sell all ihe shares or Vrnroil S. A. needed to extend the term of the Debentures. 3. If the liquidator does not succeed to sell ihe shares of Vintoil S. A. Therefore, The Royal Bank and Trust Company, as Trustee declares that the Extraordinary profit — 5,350 before September 30, 1986 the company shall beau lomaticalty in liquida- term of the Debentures .has been extended as described in Article 14 or the tion and the liquidator designated under item I here above shall finalize Indenture. Vinloil S the liquidation of -A. NOTICE is also given that the LIBOR rate at Profit attributable to shareholders 7,511 1,158 Noon on July 15, 19B6 was Shareholders are advised rhat their prosy forms, in order to be 6.635%. The minimum interest to be earned in the escrow account for holders valid, must be received at the registered office at least five dear days voting in favor of extension is 6.725% (LIBOR— W%3. before this meeting. Bearer shareholders must deposit their share certificates with an 1 ' DEBENTUREHOLDERS VOTING IN FAVOR OF EXTENSION ; authorized bank and this bank must confirm to the company that the shares Earnings per share 1.5p 1-Op are blocked until the closing of this meeting. This certificate must also be Those holders who had voted in favor of extension must present their 9% received five clear days before the meeting at the registered office of Debenture Certificates to Orion i cikuLiletl before extraordinary profit ) Royal Bank Limited, 1 London Wall, the company London on or after October 1 , 1986 to be exchanged for Extended . Furthermore, registered shareholders wishing to attend dire meeting Term Debentures in an aggregate principal amount must inform ihe company thereof and this confirmation must also be equal to the principal amount of 9% Debentures presented received at the company's registered office five dear days before the plus the pro-rata share of the principal amount of Debentures being- meeting. redeemed (voting not to extend) which has been allocated. letter addressed to the shareholders is available at the registered The unused portion of A the escrow account plus the pro-rata share of interest office. earned will be remitted on October 1, 1986 pursuant to the instructions given at the time oi voting. The Board of Directors DEBENTUREHO^^faKS VOTING NOT TO EXTEND: Holders who have voted not to extend must present their Debenture Certificate! to any of the Paying. Agent Offices for the Debentures 1986 in order to receive Art Galleries payment of the principal amount of their Debentures plus accrued interest to October 1, 1986 (USSl.0a2.50 per SI,000 DeberttSe“ outlived the others OI CALURY, 1 Carder, HENRY ANSBACHER HOLDINGS PLC EVE has. because a ZAMANA Cromwell t. The Royal Bank and Trust oof lev or fair alar and ,aiue tar money 5W7. 01 .S84 6612. CENTURIES OF Company Supnsr Iron) ia-5.30 am. Disco end Mo The Coinage o» Islam. Trustee One .Mitre Square, London EC4A 5AN musicians, glamorous basuuses, exciting COLD— HNlnil RtKishSM. 189. Regent St.. WI. 01-738 Until 5 Oct. Tues -Sat. 10-5 JO; Sun. D5S7. 12-5.30. Adm £1. Notice ofRedemption To the Holden oi <0 THE FINANCIAL TIMES MONTANA POWER INTERNATIONAL FINANCE N.V. 14(4% Guaranteed Notes Due September IS, 1989 W.H.SMITH & SON (HOLDINGS) - PLC NOTICE IS HEREBY GIVEN , . is proposing to publish a Survey on that, pursuant to the nmi-icinnt , , September 1 5. 1982. from Montana Pcm-er In lernational V'S ntar,a Company, as Guarantor, to Citibank. ™y rowr N.A., Trustee, all S50 OOfl nnn : "II •**“ s the principal amount thereof, ^ . 9 £25,000,000 The World Economy tocether with imini ^ . . on the redemption price and accrued interest dueand^ibl^ provided, however, that this notice is subject to the receint nf Tuesday September 30 1986 Sterling Progr e Commercial Paper amm received prior to such date. For farther information contact: Paving Agents as follows: Citibank, N.A^ IW, «£ the Dealer luXTst^ Sutton York 10043, or at the option of the holder, at the Hugh main office of cSltT I Brussels, Franlcfurr/Main, London or Paris: at the office of Citkom Financial Times, Bracken House or at the office tLuTCmbw,Sl S.A. m Baring Brothers &Co., Limited Luxembourg; main of Swiss Bank CorporatioS^Bas^ 20 Cannon Street, London EC4P IO redem 4EY ^ ^ P*ion date should be deuchwl for payaimt ?n rhe and surrenduwl Telephone: 01-248 8000 Ext 3238 Withholding of 20% of gross redemption proceeds of anv Davment .. TT . . Telex: 885033 States may be required by the Interest and Dividend Tax^mpliS Paying Agent has the correct taxpayer identification number number) or *l SOaal security or employer identification exemption certificate of the payee. BARINGS MONTANA POWER WTERNATONAI. Dated; Aogust 12, 1986 FINANCE. N.V. i t V » 9- . —. — 5 — i - ——B x i 7 j 3 —. S 0 — ——. . I C U U47 V 9 7 ' V®fe/ ,r Financial Times Tuesday August 12 1986 Scottish Uott Managers LONDON RECENT ISSUES 34Chj>totlrSa. EOmOute >2 P*CM ' J T • J ' - V > . . J J 0 . M . W ! „ J 1 . — _ 10 M . . . —. 4 A .—_. --. . J4[ . ——. X . —. ; , . — — MA 1 w • \ v c #\ '--Tr’V 20 Financial Times Tuesday August 12 IS86 ee Co fl WweHey Asm* M^ragerewst Ltd (a) (e) city of EAntaiogti Ufe Awmct Prt^W Lite lM ”^ (g) .2W|MJ “SStSfi? 13 Chariot,* So. Eftctorgh 222 BuRcdAlJle. LcnaopWCC2 #1 Jll»l Sir 031-J2S1561 <14 Chariot!) SflL Edinbwqh EH2 flWJ . 6 011-Z25 1655 ManiMFe ISOM Au3Paia«»(riM_ ;i83 0.13 Iron 'Sow Bow, 101 Ponficeas* CrJiFd- Jffll IM.” iiAS DJ Rrt»AP(ra*dSand,_ 122J '** * Prune- F mo . Cmaraii Gated Grwta _5JA . 0.10 Harm Jabnddne Fa . 1ZJX 1; -Vi - AUTHORISED UNIT TRUSTS & INSURANCES :.*469 fatulbi. Tula 12 Monty Market Fd_ 1061 ElW*«4 r SSU —SH Fit In Fan. fitia osri - I KIT3 5lmePexjF, 1021 _ tmuiNMi IrlTriMOf* !! 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I - AA FHemfly Society W Pn EiMptan U) —~ UU -a — MjneMSw — Enir'Cosi Tjl3 - Norwich Union Asset Management Ltd KS^A^b IM Pm. tiJ mis 4LT (Imoaneot Most M Ira Mngi Lid) Ownw _ — Managed SerCa — Eaurr.'a - Hnrwtfi Nfil & C IMft&BllWCd(D_ 35L7 407 — OameMOcc. — Se.iU POE01UA US 0603*9346* Prudential Penrirm UmKed PO - -C27B - F xia yi-i — i Financial Times Tuesday August 12 1986 Skiotfii Uh ort* Unnm Cb C UK Provide* Schroder Mngt Services (Jersey) LtdLtd Warhurg Investment Management Jersey Ltd UK Hanc, Cattle Sl SP135H 0722 N*l: JtA PO Bar 34i J.I HHier Jo+rt 0534053 21561 J9-4i Bi^icSi 3: Hr'irr J«r.r, gii* lor.d +o. 1 **-- Ltd £ji-i i-’H IM,, lifcl-i l EiraprmSra.Cat p3 . UA.1 HU Scante Moon raui 6V-t S5p2ty. •+' - Slnl+t, - [188352 477 L-mTuiwiltal ft i"*' j tti USS _ - $33 5667 5» MntSfL'.ite: 15*38 all -W Safer:3K- i mat 595 .£’170,'!1 1707OF !I 3 True 7 12 ^ INSURANCE, OVERSEAS & MONEY FUNDS 3«MDUm - ..1 W.-Sa)35+DUSaiJS* I1 95 LVjtaTnrv-aaa7LVm Aaa 78 • ---7 SntM*rAfc SF56H63SFS6Mtr3 I . ! 3« Frr-<.+ —i« 4*>6 ,. &J67ri»U67rt . S»«*rAX -_J . ja«g3p. s; 3 J Fwc . Y*aYra TA V? 409909 65 1 I 30731)7 KKntm EiaEionanfLingraauobA*tab V:^7£4191 710C71 OC • )! .. jffij Si a, A—Ngi1liltifC6..XjHm ' UZJ -S; Bittmmln lutL Invectaent Meant Ltd FlddKy tnhnuBsM Cent! Headenon Wnii (Gnernwy) J. Henry Schroder Wagg & Co Ud jSteFteXn?! ?-frS7 t? soiaw i.i 1 - - -«9*s S. .+•* WWBI tottery.,..11132 1143 +03 r».r— t”"- -0X0 Qlfc PO Bs> 71. SI Peur Pait, CaenBey 0 HinenK, OHS Res. Shrs. Fd. Ins. 12CCneaSMC» LonanEC 01 38260C0 P**cTte*m- Bss 271 QJLULJUII Home, ten Soeec Si HeSer, . Rtog SajS -oj FiasUrrtolZ WlfS uSl -003 — HM. 48. (OS MSB) SlOM L131 PO Bor 194. Heller. Jmtf 0534 27441 jentfCi 053473119 IhhumbI Lriitl Itllll izaci +0JB a . UK Gdl WIW3 LLOh MgraM,31 H« 97JI ! 13 izxi ah F^__ HSirai tR5K!Tl JB? tehM nsnir BnFasui^-^taur tvig -tM — Prin itot. Praev tt3«ag lm ‘ Earaptu Standi, .w.. J?jA _ Mu PXBclII £au 2«L0fl -007 049 Babto GXB S PriPa -&L482 L5T7| +D (In*. OarinAariTu _ja«M 497; +D " Murray, Jotetme Adviser) ]M- +«J “ 5BKl4ibM(ri_u.lCun 29.78 -015 QJB £ PUU- LO 973 ooo Jaaap Fte Arom S 7154363 *6 -a Stead(MB -oan 163 041-2219252 §3 ritrrSn -final Wornm 0,75 Heor St. COswHr C2 -1. ^*?TniiNir~TTj9 » Ea3 9AB +M2 StetWtSPnflB H48J +anc ooo .TT - TnliM! Fa8.IT 31 B20 45 21 70 Cdi FmtlTl ^- .. . hr I **srrit»iOirtj Ace 7 , .52330 ZSte Z77M 9.90 ln»BU»SPriAo__ il \ I ^ • ' —— —— U —- . 1 8 — *> J «J• i ‘ C ;\ .z' Financial Times Tuesday August 12 1986 22 COMMODITIES AND AGRICULTURE ORANGE JUICTJMOO lb. santa/lb LONDON US MARKETS dot* Low - Prev INDICES 103.40 ioi.7o xnjo US traders fiqpt ----- W3.*a MARKETS COFFEE FUTURES were Nov W« KNLH vn.ee itt.fo REUTERS .78 Gold price surge takes locked in at 4c limit-op in Jan 100-26 104 104 AO of the pre- 106.40 105.45 STRENGTH i WD.OO rt3£ Aug* Xug~^ MnS~6Bo Yea?5|io die deferred months, bat March 107 AO dons metals prices spilled J [ May 108.70 — W6.46 in standoff showed pared gains In the 103.85 1455.1 [ I4S5.6 1418.6 I 116-0 111.60 moo over Into tbe London Metal 171 1.H Sept limitless nearby positions in. 112-20 — — meo metals con- (Base: September IB 1831 mlOD) Exchange's base quiet trading, reports yesterday morning, over Soviet market by surprise tracts DOW JONES HeinolcL Values came off the values sharply higher. 547.4 558.0 835.0 ini pushing in nearby months Dow Aug highs the 648.1 548.1 633.0 $23-1 Tbe gains were not held, how- | ser WAGSTYL Jon a when trade selling thwarted SJ8.0 637.1 BY STEFAN ee *v I aso 562.4 86X4 ever, as sterling’s rally STC grain terms attempts to penetrate resist- 596.2 55SJL 648.0 Dll against the dollar encouraged Spot 117.88116.39 — 1114.66 680.1 863 A 835.1 THE CURRENT burst of tonnes of brrilion earlier this ance levels and forced locals July 609.1 US GRAIN exporters have so coin substantial profit-taking In the Fut .114.84 13.33. — ll lfl.28 883.9 M3J CSU the gold market has year for the minting of a to take profits. The precious Dot M3J far failed to persuade Soviet activity in (Sue December SI 7831-100) surprise. to mark the 60th anniversary afternoon, and most values emerged again as OX trade officials to relax proposed taken traders by metals SILVER of the reign of Emperor Hiro- finished near tbe day’s lows. leaders platinum as the contract terms which they claim There was little to suggest at with Clue* Wat* Low Pnw hit-o it rumoured to be Three months Grade A 555-0 *31.4 are impossibly tough, reports the end of July that the gold and is star performer. Tbe platinum Aug SHi 555.0 copper, which had climbed to MAIN PRICE CHANGES 368.8 686 J) -8463 633.5 price was about to soar looking to buy perhaps 100 October position dosed Unit Sept Renter from Washington, market 562.0 — BM.fi has $352 an tonnes more to increase the size £914 a tonne at one point, In tonnes unless otherwise stated. up at $5*8.18. Gold closed Oct The main concern is over the as it done from Dae 643.3 5780 as3 642-5 the issue. ended the day only £4 np on higher, some 6 below 638.0 HS.fi Soviet Union's that its ounce in London on July 31 to of S15.S 9 Jan 678.0 demand balance at £905.75 a tonne. 980.0 of 9397 in trading This purchase has absorbed the clay’s high. Silver found Merab K77.6 687.0 561-2 buyers should have the option hit a peak *8# fig? 723 657.1 least The aluminium market's METALS support In these conditions May 683.7 682.0 return shipment if it does yesterday before falling back —for the time being at 676.0 383.1 to a sentiment was easier from tbe July 590.1 685-0 not specifications, close at 3387, the highest for some of tbe increasing supply Aumfnlum _ and moved 25c up on the 694.0 586.0 meet quality to outset, possibly Sapt E96.7 Ml refleeting the Market ..... 3 1225/248 — $1200/23) day. Sugar unable to 867-0 67*3 instead of simply discounting two years. of gold which is pouring on to Free 6 was Deo 906.8 808.0 announcement of a rise in Copper- break through the 7c level, the price. Only a few dqys ago a leading tbe market from Australia. Cull Grade*.... £BB6.5 +4 £887 WORLD "11” non-copimnnist world stocks jCBOH.75 basis October, as profit-taking A industry official said London bullion bouse said in a Canada, Brazil and elsewhere. 3 mth* + 4 ^006.76 lb, oentt/Ib • US . In June. And with currency Gold Troy oz S387 i+17.t2| 8646.5 pared gains. The meat mar- just one rejected shipment report that the gold market was Western mine production has High Law Frew Inspired selling fuelling the Lead Cash (£268.6 + 8.75^849.6 kets closed lower under dose would mean a multi-million “passing through one of the risen from 950 tonnes in 1980 3 piths. 6263.6 + 3.88 £853.20 Sapt 6.45 6-70 6.80 4M fall In the afternoon tbe cash selling pressure commis- 6.468 6.7* dollar loss for the exporter quietest and perhaps most to over 1,200 tonnes last year. Nickel from Oct 6.91 8.09 1731188c 7.00 6.80 prices ended the day £10 Free Mkt- 1 .175/1850 6.52 7.06 concerned. ”1116 way the Soviet dismal periods for 10 to 15 Conditions in other financial sion houses and locals. Jan down at £749 a tonne. Among Palladium oz 8131.60 +6.18)8111.86 March 7.61 7.62 720 7.30 terms are now, no exporter years.” markets are also less unhelpful Platinum os 644.50 +42JB|S433.76 7-66 7.75 7-40 7.63 , May the “softs” coffee built on 8166(1051 sieofSea could go along with them,” he Yesterday some gold traders to gold than they were a year OiilckeJIvan July 7.87 7.90 7JS .7.10 Friday’s sharp rise with the Sliver troy ox— 371.7Sp 1+18.40' 339.1 Bp NEW YORK — 1.73 said. said they were busier than at economic sanctions by applying investors are nervous 70S ago. Some 5 mtha - 1380.3 Op |+19JSj347.35p 8.01 7-90 7.30 to talk to the any time in the last two years, export restrictions November position adding ALUMINIUM 40,000 lb, cante/lb Oae US “We're trying of its own, about tbe future course of bond Tin , another £40 at £1,992.50 Prev Soviets.” he said, “but they’re including last January when even though this is regarded and equity markets and are free mkt- {£5700/784+30 Cloee High Lew LME prices supplied by Tungsten ... 61.75 — 52-25 saying that everything is non- rumours of a mystery buyer, in South Africa as extremely taking profits. They are con- Wolfram 2L0ib...L Amalgamated Metal Trading. Sept 51.90 BZ.50 6i as 52.40 CHICAGO negotiable." later identified as the Japanese unlikely. cerned about tbe US budget and Zlne [£644.6 Oct 62.00 _ — 52.65 The new Soviet terms would Government brought the mar- the 3 mtha (£645.6 Dec KL3S 53.00 52J& 62-00 The West’s gold supply is trade deficits and about producers 6840 oante/lb also that only 95 per cent ALUMINIUM Jan 52.45 62-90 UVE CATTLE 40.000 lb, mean ket to life. On the Commodity much less vulnerable: South volatility of the oil price. &lfS be March 62.75 52-90 S2JK> 53.20 ~ Close High Lew Prev of the purchase price would Exchange In New York, the Africa is factors a major gold supplier Moreover, currency Unofficial + or Coconut (PhID 13218.1 M«y 53.06 5330 60.80 6026 69.36 paid at the time of the sale world's largest gold futures close lp.m.1 — {Hlgh/low Sept 5390 — _ S3 .96 —but since it accounts for support the argument for some Palm Malayan 1 320 Oct 60.60 «MS GMZ with the rest being held back trading volume reached £ per tonne Dec 53.00 — — 64.06 68.66 67-36 68.17 market only 55 per cent of the West’s revaluation in the gold market. 1 Dee 57.02 It 31% "i until delivery. Friday, against Copra 'Phi 0 68.57 57 JS HJ3 8*87 50,000 lots last bullion it could scarcely impose to end of 1984 Cash 746.5-9.51 —10 Soyabean ILLS.) |gl46.5y Igl56. Feb In the period the , 8 COCOA 10 tonnea. 9/tomee 99.00 67.48 67.82 a daily average in July of i stranglehold, especially 3 month t 761-1.5 f —10.S Jmi/Tsa.s April THE SOVIET Union has as gold prices fell as the US dollar GRAINS Cloee High Leer Prev June B7M 67.40 57.60 • 25.000. purchases of Indian stocks held by central banks are appreciated against other Official cloaing (am): Cash 753-4 Sept 1861 1890 1857 1868 halted Barley FuLNoy. [£106.151 (£8808 centa/lb Most traders have little doubt (760-0.5), three months 787-8 Dec 1030 1946 1026 1332 LIVE HOGS 30.000 lb. wheat, complaining that it con- huge currencies. But gold has (772-2.5). Maize i£163.oa £134.60 gold settlement 754 Final March 1982 1991 1880 1381 LOW Prev “karaal bunt” that the price rise has However, investor interest responded far less in the last 18 (780.5). Kerb Wheat FuLNov. LC1 07.76 +1.16 £99.80 dose High tains traces of dose: 760-0.5. Turnover: 17,300 tonnes. May 2009 2014 2006 2006 82.10 60.90 82A0 been triggered by the increase appears to have spilled No. 2 Hard WinL) t I— ‘ I 60J» disease, Mr Brahma Dutt, over months when the dollar has July 2030 2035 2030 2026 53.40 54.30 63-20 54.50 OTHERS 2053 India's Minister of State for in platinum prices which have into gold (and to a lesser extent fallen almost continuously. Sapt 2063 — 51-80 62.86 61.70 53.05 more than from a low COPPER Dec 2098 2093 2093 2093 61.12 Commerce, told Parliament yes- doubled silver) for two reasons—firstly, However, there is another Cocoa Ft. Dec..|£l^34.6 h-^16 |£l8?62 60£6 60-90 4936 last year of $237 an ounce to Coffee Ft. Nov. *1862.6 1+40 £1873.6 Apr! 45.15 48.18 46.18 45.70 because the platinum market story. influ- i ” ” terday, reports Reuter from side to the The 1 ori + Cotton A Ind • 36.70c COFFEE C 37,600 lb. centa/lb 46.17 47JO 48.10 46.90 dose in London yesterday at is comparatively small so in- have investors Grade A lUnomc‘l| — Hlgh/low New Delhi. ences which kept j Gas Oil Sept. 1126.5 f+O.B 190.75 Cloee High Low Prev 48.05 47.20 46.30 47.17 $544.50 ounce, after touching vestors alternatives: July Soviets signed a an look for away the precious metals Rubber (klkj) 59.50 | BBJBp 169.41 41.75 41 JO In 1985 the from - close 1 Sept 170.90 172SO 170.75 Oct 41.82 42-40 Sugar (raw) Jisew 1+1 >127 contract to import 500,000 $560. secondly, precious metal prices markets in recent years are still Cash '086-7 1+4 893/865 Dec 174.60 175.75 174.00 172.16 Wooltops 64s ,3S6p kilo 492 p kilo ! March 176.10 176.52 175.75 172.52 MAIZE tonnes of Indian wheat. Mr Platinum has risen because have historically moved broadly present At a time of low infla- 3 months 906.6-6 1+4 914/905 May 176.42 178.26 178.00 174.25 said, but only 207,000 of fears about tbe possible inters in parallel—an argument that tion and high real interest rates $ Unquoted, t Per 75 lb flask, c Cents Dutt Official elating (am): Cash 892-3 July 178.75 179.00 178.00 175 M Ctoea High Low Pre* ruption of supplies South tends to become self-fulfilling. per pound, w Aug-Sept. x Oct. v Sept. tonnes were shipped last year from it remains very expensive to (881-1.5), thm months 912-3 (901*1.6). Sept 178-88 — — 173.88 166.6 166.6 18X6 •18X2 * Conon Outlook, y Nov. 177.00 Sept and further exports were sus- Africa, the source of more than To some extent the gold mar- hold a non-income-yielding settlement 893 1881J). Final Knit Dec 177.73 — — Dee 171.6 172J T69.6 170.0 pended after Moscow expressed 80 per cent of the Western ket has been In a mood to asset As soon as investors come close: 906-7. Match 182.0 182.5 180.2 1812 COPPER 25,000 lb. cents/lb 186-4 1672 concern over the quality of the world’s platinum. Investors are respond to a positive stimulus to feel that the present rally is Standard May 189.0 180.0 Cash 365-7 +8 870/885 dose High Low Prev July 192J 182Jt 190.0 1902 Wheat particularly concerned that of the kind coming from plati- over they will be tempted to 67.76 j4 188.4 3 months 886-7 +8 I - COCOA August 59.55 Sapt 191.2 191 mo (ended March South Africa might react num. Japan bought look elsewhere. Sept 68-80 69.00 58.46 68.00 In 1985-86 31) to some 220 Aitough volume of trade was light Dae 186.0 1S6J «ij 1822 58.75 India exported 337,000 tonnes of throughout a rather dull morning more Oct 59.05 Official cloaing (am): Cash 870-1 Dec 59.60 57.75 58 80 68.80 SOYABEANS wheat, including the 207,000 active conditions prevailed during the (850.6-7). three mamba 890-1 (878-9), Jan 59-86 68.75 67.96 50.05 5,000 bis min. cema/90 tb-buahal afternoon and a fate flurry aaw cloaing tonnes to the Soviet Union. settlement 977 (557). US Producer March 60.35 oo.es 60.20 69.66 levels near the lows, reporta Gill and Cloee Hfgn Low Prev prices 61-5-06 cants a pound. Total May 60.80 60.96 60.70 60.00 Duff us. August 501.6 50X6 300.0 MBA • YUGOSLAVIA has com- Crop fall revives tea market Turnover; 17.100 tonnes. July 61 JO 80-40 477.4 479.4 47X4 475.4 61.50 Sept plained about the quality of the Yesterday's! Sept 61.30 61.50 60.80 Nov 478.0 480.0 47X4 4760.6 dose (+ or Business Dec mm A7 62.00 61-40 4832) 484.6 first 87,000 tonnes of US wheat BY ANDREW GOWERS LEAD COCOA Done Jan 4882 489.0 March 488 489.0 494.0 484.8 received under the export £ per tonnej COTTON. 50,000 lb. centa/lb May 604.4 806 60X4 H0.ll enhancement program (EEP). SLOWLY, CAUTIOUSLY, con- first five months of this year expect the arrival of substantial High Unofficial + or 1—14.0 1404- 16B3 Cloee Low Prev July 510.0 61X0 906-4 06.6 is North Sept. 1883-1384 The US Department of Agri- fidence beginning to return totalled 73,379 tonnes, some 30 amounts of quality closefp.ni.) — Hlgh/low 1454-1435 v—10.0 1468-1430 Oct 33-00 33.0S 31.66 31.17 August MM 510.0 506.4 508.4 Dec 33-91 33.37 32-55 32.00 culture’s counsellor in Belgrade to the tea market Auction per cent leas than the January- Indians to bring a sharp rise £ per tonne 1475-1476 f--6.0 1486-1479 March 35.00 36.10 33.65 33.13 OIL 00,000 lb. caata/lb said in a field report that, while prices in centres from Mom- Hay figure in the admittedly In the all-tea average price. May.- 1494-1495 |—7.0 1696-1490 SOYABEAN 263-5 1 Cash + 8.75 July.- 1519-1613 r—7.0 1584-1608 May 36.68 35£5 34 JO 33J8B Close High LOW Prev the protein, moisture and sedi- bassa to London are on the hamper year of 1985. The exception to the 8 863-4 + 3.88 264/262.6 one months 1 1643-1633 July 38-30 36.60 34.51 Sept 1599 1638 1—7.6 38.23 August 14.73 74.36 14.67 14.73 ment percentages were reported increase as traders digest tbe rising price trend appears Dec. 1568-1660 1—8.5 1688-1666 Oct 36.84 — 36.36 India is the world’s biggest Official closing (era): Cash 262-3 Sapt 1424 1X95 1X70 1X88 to be satisfactory, the total Implications production Dec 37.80 37.80 36JS& 36-31 -1426 of producer, consumer and somewhat surprisingly—to be (258.5-9). three months 263.75-4 (258.5- Seles: 3,356 (2.534) lots of 10 tonnes. Oet 13.07 1420 1428 16.64 16.06 1520 1X54 admixture was 11 per cent, well figures which indicate a sharply India itself. “There is no real 9.6). settlement 283 (258). Final Kerb ICCO indicator prices (US cants par CRUDE OIL (LIGHT) 42400 US Dae exporter of tea, accounting for Jan 75.62 1620 1X60 1525 above the 5 per cent allowable. reduced 1986 world tea crop. strength in any of tbe Indian close: 262.5-3. Turnover: 13,190 tonnes. pound). Daily price for August 11: gallons. /barrel about a fifth of total world Spot: 21-24 cants pound. 97.11 (91.12): five-day average for March 16.05 1X15 1X98 1X00 One shipment, which arrived yesterday's weekly London markets, is surprising US a At exports in most years. which August 12: 91.71 (91-SZ). Latest High Low Prev May 1520 1828 1X30 1820 without the specified protein auction, the trend continued, given the state of tbe crop,” Sept 1425 15.16 1422 14.83 July 1822 1X55 48.30 1X80 test certificate, appeared to be with the Tea Brokers' Asso- said one broker. One possible NICKEL Oct 14.08 14J8 14.60 14.65 August 1X52 1X70 1X50 1825 Nov 14.57 14.79 14.45 1422 two years old or more as it ciation reporting “strong and explanation for this is that COFFEE TEA PRODUCTION Unofficial + or Deo 1425 14.7S 1421 1420 SOYABEAN MEAL 100 tana. S/ten lacked colour and the kernels general” competition for the domestic consumers are well Physical internal and a leek of over- Jan 14.43 14.70 1428 14.47 (januaiy-May) CK>se ' «*V . 1 >*»** --- . Financial Times Tuesday August 12 1986 23 CURRENCIES, MONEY and CAPITAL MARKETS Financial Inform Bllon Service on Japanese Corporate issuers MIKUNFS * **% >, FOREIGN EXCHANGES FINANCIAL FUTURES prices. However, sterling’s recovery in CREDIT RATINGS the afternoon and a slight easing in longer term cash rates helped on over 2,900 bond Issues by about 7 DO Japanese companies S: the price improve to a high of Cost : US$2,600 per year Metals add to dollar’s woes Firmer trend 80J25 from an opening level of 90.16 before dosing at 9053, STRONG DEMAND for predoas up from BOJSO on Fnday. T0-Mftum £ Co. Lid. *n nearly double the level r U555 to 13770. July average D-Mark’s strength will soon tie 2.45 4.10 _ — 0.09 1.43 — — S3 9.34 0.19 — 0.00 055 «ra * of a year •ora & ago. It is also widely L5089. Exchange rate index rose begin to put pressure os the 120 1.13 3.01 — 0.41 257 — — 92 754 758 — 0.00 054 — expected tomorrow’s figures 122 raw — 5-36 — —ta that 63 to 711, compared with 7 Aug.11 e • *- DU _rei ffr. 8 Fr. H FI. Lira 06 B Fr. C - t. 1.487 8.063 9.949 8588 8j460 8108 8568 63.40 Aiig. 11 STERLING INDEX • 1416. 1.887 48.66 1 r.- r • 0.873 1. •; BJD61 15S5 6590 LB66 8581 DM 0.887 0.488 1* 74.61 3547 0504 1.189 687.8 0.673 80.70 Argltlnai.113750-13760 0.95000.B5 10 Aug U Previous * A. - YEN 4.876 8508 13.40 2000. 4358 10.78 16.10 9818. 9.084 8775 A us alia.. 12.45463.4380]1.6496-1.6613 Brazil NitO.S3-fiO.4Sdw.ea-mr.+o 13.77-13.64 70.7 703 ( 8ufd am FFr. 1.006 1.495 8.079 R»5 10. 8.476 3.469 8117. 8,078 68.76 Finland... 7. 8645-73706 {4.9116-4.9136 195.80-19930 70.7 71.1 • Fr. 0,408 0.604 1544 98.79 4.089 1. 1501 8645 0537 86.76 Qraaoa — 183.18-136.37 9M am l 8 H'kong— 11.46M-1 1.4960 i7.7960-7.7970 703 7L1 £W0RLD VALUE OF THE 10.00 POUND 0590 0531 0588 6853 8.888 a7l4 1. B1Q.1 0.698 18.88 Iran pHns.so>M 76.50* am ">• HF1. U- Lira 0470 0.708 2.488 108.8 4.784 1570 LMB 1000. 0580 30.19 Kuwait .. (0.4080-0. 4BB6ilixaaari-ojaass 70.7 n.i Lux' burgM 63.55-63.46 48.60-48.70 1L00 am 1, • • -• *; '©» 0.485 0.781 1588 lias 4583 1.194 1578 1081. 80.78 Malaysia. l3.BB5O-3.8Se0 8.6135-8.6166 70.7 71.1 4.838 360.4 18.69 3584 6.448 3880. 3568 10 N’Z’land.13.9790-8.986612.0170-8.0850 The tebls bdow gins tee totea ewdlaide rate of exetoge for the pomd egaim* aarloas curmtclei on 1936. t' fl Fr. 1.677 8.348 a Aogmt 11, ta some eases rate is MmhaL . Saudi Ar. .8 360-6,639613.7616-3, 7980 71.0 70.7 Market rates are1 the average of : t I p 1.00 pm hqrfns md sdOag rates except where they are shown to be otherwise, la mum one* raakdmarket rates bare bees czfcstatcd Franck Fr parlOg Un par 1300: Baig Fr par 100. Sln'pore. ',5. 1750-3.1850,2. 1530-8.1650 Van par 130% from these of foreign conr es ta wtafdi they SAf (Cm) 3.7406-3.77 1 B[0 .64864.6490 2.00 pm 70.8 7L0 ad ere (fed. SJtf.fFn;. 7.4866-8.0655 >5.0686-6.3336 70.9 EURO-CURRENCY INTEREST RATES UJUL..... 16.41 95-5.4340 3.6785-3.6768 3.00 pm 703 ;ff3fr«rate;/PJj^raU4dag*r^iflfaaragafcgrt8rflBg-ddrarafesrfDlawfa1i«te;(B»;6M»mfg 70.9 1 • Selling rut* 4.00 pm 71a r—) —»* fihbrt 7 Day* 1 Three SIX Ona ‘SS ft?S££5iS15?* 11 August term ntttkre Month Hontha Montfit Year Starting^ 91481*. Bta-10 9tf-IW • ©ta-61* 8«3i| . . U5. Doltal-... 6 ;,r Sr*-’ i-Y. V > ‘N ' 1 9 ' ' _ J — , ——- -3 — — ! — 0 -— ——-. ————. — 1 ——-—. r 1* . i < V c .\ 12 1986 Financial Times Tuesday August CMttwto ENGINEERING—ConUmtedintiKMd INDUSTHAp— BRITISH FUNDS AMERICANS—Cont. , +srj Oh I YU 198b 1986 | Pitre Oh law Stack PMn UK I I Price - Ret im Grt HE Ah im |+«| Wgb Lm Stack , - 1 JsJtjIkIjk »lrLjSSn»lwl.:i“uiwbiSiretA&pnfln MS Msfa I ulffei Stack I £ I l&*» 2.9 113 4K Ig U> Ste* M Hgh Lm b25 260 krehreiEWsC.I 990 91U0U7 - 5-4 — — nice- 39+2 IM fc9 SERVICE 24 B— — 46 I * 8 IreitreWrilOs 17V 2 SHARE — j .. ... fli 7.0 ID Wod-V LONDON rTraa lOo0—— 29 1W Shorts" (Lives op to Five Yean) 130 75 rartitftww»£l 124 +5 Jl\-h 0Wtil *41 ‘ “ 13.9013.9 1086 Brawar 85 !-l 38 * •83 41 M.feV- .MpeHBb 1 M«S]g — I 25 .... 95 61 10o 5J)Atto Br. Brg.lo—J 7 H, 25* 7 DRAPERY & STORES—Cont Bristol ... - 131 13V 3 JO BUILDING, TIMBER, ROADS—Cant 7 4V 0.9*100- b 2bd |Do.( ui,; not 9jo ]*d Oh I Ind 34 BremOT'ctitaiSP-. 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