Financial Times , 1986, UK, English
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Yemen EFHntton Saudis to peg cost rival reshuffles COUllt6r>>8tt9Ck agree to discuss of borrowing oil prices in Westland row BY PHJUP STEPHENS AND GEORGE GRAHAM IN LONDON KS By Rogar Matthews in Riyadh THE BRITISH Government yester- prospect of a rise in base rates over and Max WWdnaon bt London day took decisive action to head off the next few days. Fighting raged in There remained some unease Aden, capital id E. F. HUTTON, BY PETER RIDDELL, BRIDGET BLOOM AND LIONEL BARBER IN LONDON a farther rise in borrowing costs.as South Yemen, big Wall Street bro- in a power struggle kerage BRITAIN -AND- -Saudi -Arabia the political row over Westland among London economists, how- firm whose reputation has other developments between President Ali Nasser Mo- MRS Margaret Thatcher, the UK In yesterday, possible because of savings that agreed yesterday to hold talks heightened the recent unease in ever, over the longer-term outlook suffered from management mis- an bammed and hardline Prime Minister, was last night pre- unnamed buyer raised his stake would be made as a result of the about oil financial markets caused for the pound and interest rates if Marxist sup- haps in recent issues and the threat of a London's years, has an- counter-attack over the in Westland to just under per porters. The President was reported paring to 15 production of a joint European bat- decline in prices as spot prices con- by foiling oil prices. oil prices continued to felL nounced a further top management cent. That gives poten- to have been seriously Westland affair, after several days the buyer a tlefield helicopter. tinued to fall in In senior bankers described The Treasury said that the Gov- wounded in reshuffle. Plage 17 weak nervous what Monday’s of allegations and conflicting state- tially decisive influence on Friday’s ernment coop attempt The former Defence Secretary markets. as an unprecedently strong signal had atted because it ments that have seriously damaged extraordinary general meeting the -upward shift Unconfirmed reports said tank- made dear that the order would not Tbe agreement was reached in that base rates should remain at viewed in market led dissident tbe Government (EGM) of Westland shareholders to England interest rates as result “tempor- troops were advancing be placed if Westland chose the Si- Riyadh, .the Saudi Arabian 12% per cent the Bank of a of The Prime Minister is this after- vote on toe company's favoured res- ary* factors - on the presidential .palace. V GILTS korsky/Rat deaL That was partly yesterday daring discussions be- announced it was injecting nrariy. a thinly veiled refer- cue plan Sikorsky of the The showdown is noon due to reply to Mr Neil Kin- by IS and tween Sir ence to the Westland saga, related to the FTActuaries because toe MoD then considered it Geoffrey Howe, the UK £2bn ($258bn) into the money mar- \ nock, the opposition Labour Party flat of fraiy. direction of the foreign policy of the Ai Stocks unlikely that European Foreign Secretary and Prince Saud kets to reverse the rising- trend of Tbe Government’s firm stand is 128 -\ _ govern- ‘ former British leader, during a full-day House of Tbe buyer is believed to be in fa- also likely to have been coloured colony and in parti- . X Index ments would want to continue with al-FeisaL his Saadi counterpart wholesale rates. It also intervened by cular the Commons-debate on the subject vour of the Sikorsky/Fiat rescue It is the certainty that another President's rapproche- collaboration on the battlefield air- expected the talks wiQ be be: in. the foreign exchange markets to rise in ment The central issues axe bound to and against the rival European con- base rates with conservative regimes of craft if US-ItaSan pt«n went tween Mr Peter Walker, the British steady the pound. would have prompted : foe the be raised af Mrs Thatcher's style of sortium plan. The consortium com- the building region. Page 4 ahead, but also because Mr Hesef- Energy Secretary, and Sheikh The Bank indicated that it was' societies to have government and whether toe Cabi- prises British Aerospace and GEC tine wanted toe Sea King order as a Ahmed Zaki Yamani, the Saudi Oil committed to the present level of pushed up their mortgage charges fl| net has been eyenhanded over the of the UK, Agnsta of Italy and Aero ^**CC: Beirut ceasefire "sweetener” for the European Minister. No date has been f™»d. borrowing costs, at least until the. for home buyers. spatiale of France. It also became rival rescue plans for the troubled proposals. however. weekend when finance ministers The Building Societies Associa- Britain’s known yesterday that Troops enforced a ceasefire in east Westland company, only proposals The British Government from the Group Five.teading.in-. tion had prepared a statement to be That has now been removed by has in of Beirut after 20 people were killed helicopter manufacturer. that appear to be designed to under- d»*Hni»d issued in case the tiie past all offers of for- dustrial nations will review devel- of a rise which would Party mine toe credibility the Euro- derision to make the Sea King and 60 wounded in street fighting The Labour is calling for of mal talks with foe Organisation of opments in foe currency markets. have warned that the present mort- -i-i » i t » t t » pean consortium's order applicable to both rescue between rival Christian militias. the establishment of a Commons plan for West- Petroleum Exporting Countries The move came as continuing gage rate had become untenable. * land have received the approval plans; even though Mr Larbonfs January 1968 select committee to consider the af- of (Opec), and nffMaia in fears over lower oil prices and con- Instead, Mr Richard Weir, the sec- | | Riyadh em- toe Office the answer makes dear that order of ' fair, and in particular for the full UK Cabinet and Min- damaging retary general, ' toe Sea phasised yesterday that the talks cern over the impact on was abfe’fe se^foat 1 Kings Egypt welcomes plan availability of all relevant doeir istry of Defence. would still depend on GILTS were hit by anxiety over in- with Saudi Arabia would be strictly confidence of thfr Westland row societies 'had' enough cash* to rule toe production of ’ ypATtfo anil . Mr Norman Tj>mnnt toe minister a joint Egypt gave a qualified welcome to a terrat rates marfcofr! t bilateral. threatened to trigger another per- out an immediate rise- on the money helicopter. 1 plan Mr flesehine, who re- -in chaige of ifafem* procurement, by Israel to settle a three- and the FT-Actoaries AH Stocks in- The proposal for a meeting comes centage point rise in bank rates. The Bank's operations in the stated on Monday evening that It was bring suggested in White- year-old border dispute in the Sinai dex fell from 12852 signed as Defence Secretary last the at a time of After foe Bank's announcement, money markets were to 12&DB. A hall last night that strengthening evidence unique in two Thursday, is expected to speak. Ministry of Defence's offer to order the removal of by arbitration. strong recovery set in shortly be- that Sandi Arabia is determined to' rates in' the interbank market fell espects. First it set the rate at six additional Sea King helicopters toe “sweetener” was insisted upon fore the close and The Prime Minister's senior ad- maintain to around per cent from which it would buy longer maturities by toe Trade and its share of the world mar- back 13 Clbn of com- visers beEeve she must fry to seize from Westland would apply “which- Industry I Terrorists cut losses to end % down, ftge 34 Twpnt, fahinot ket even though this could moan a earlier highs of over 13K per cent warning replying ever reconstructions proposals backed by the Coutinued on Page lb the initiative today by to Significant cot in prices. Senior clearing bank officiate said The head of the largest Dutch po- WALL STREET: The Dow Jones in- the charges raised by Mr HraeHine, Westland shareholders adopted.’ Continued on Page 16 CHI company executives in Lon- that, barring a major foil in the - Lex, ftge 16; Money markets, lice union has advised his dustrial average dosed down 1.49 at toe free not onjy of opposition atr members m don estimate that SmifH Arabia is pound's value, they now saw tittle Page 1519-04- Page 31 “to pack up and run” in case of a 38 farrVc but aim wiimiiprahlp doubts key part of toe measures put for- Tories . in dismay; what the now producing almost 5m barrels a terrorist attack, claiming among her own backbenchers ward with the backing of Mr Hesel- they are LONDON: Stocks suffered more workforce thinks, Page 9; day of oil, almost twice as much as insufficiently trained about her handling of the affair.