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World news Business summary Til1 natenerQfpKoi HPAprepares11Qyng UK and London acts S. 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. tine, who said the order would be ***:* and equipped heavy punishment as the FT Ordi- Editorial comment. Page 14 in tiie third quarter of 1985. It is to fight terrorism. nary index fell 145 to 15843 and also said to be making efforts to in- Eastern losses top the FX-SE 100 dropped 145 to crease the number of "netback" Candidate 'bugged’ 15701 Gilts staged a strong rally deals, involving a method of dis- from opening lows. Page 3ft counting which pegs the price of Portuguese police are investigating reform may go to crude to the {rices of petroleum in quarter the discovery of TOKYO: pre-holiday took EEC a bugging device in A mood products. the the telephone of Diogo Freitas hold with most investors cm the do Amaral, the right-wing sidelines. The Nikkei average lost Most analysts agree-that if Saudi BrTORY.DODSWCftmilN NEW YORK presidential candidate. 48.42 to 12528.60. Page 38 Arabia and other Opec countries TBE SUDpExdBteriaration in the The company’s future was severe- referendum In Denmark qantinaa to produce oil at presriit DOLLAR showed small mhmrf 'ormance of' Eastern Airlines, ly threatened in the early 1980s by rates, prices most foil as riarmbr Turkey plea to changes in Tjniinn, rising to DM Miami-based US earner that is a long run of deficits. Union leaders EEC weather starts- to reduce 2.486 PM 2.463$ and FEr 75675 BY HOARtfMpESMi COPENHAGEN AND GUBVIRV PE3. M STRASBOURG faring a pew conflict with, its trade recently raged workers to add to Tiirkey is calling an the EEC to re- Yesterday the mild conditions in 755) but faffing to SFr 2589 unions, was underscored yesterday their shares in tiie group, where 20 vitalise its is to consider holding a Thai has to pean Western Europe helped to push spot relations with Ankara, DENMARK be $ nnanHpflus deri- integration it woold have.tos- in results showing loss of S87.4m 2Jm) and Y202J 02023.75). ' ~ a per cent of the equity is already which were scaled down after the referendum over ; the reforms sioD af aO member states. astruns ccmsequencesfor toe coun- prices down st3! foi liter. -Brent Bank of England figures, the in the finaTquarter of the year. owned by the workforce, so that 1980 coup. Page 2 agreed by European Community A rejection is therefore likely to try and its economy, he said. Den- crude was quoted at32350 a barrel, dollar’s exchange rets index ' Theloss, the eqttivatent of $152 a fell to 'giWeri&eitt they could achieve more control heads af 'ia Luxem- precipitate * red political crisis, • mark would fie seriously im 45 cento IptQfoaapyi Monday, with 1265 from 1265. Page 31 - bH share, compared with a net profit of over decisions. The a of left management : bourg if toe changes are not ap- with a substantial majority of e&er and could not count on a sympath- number cargoes tmsddi In 5105m, or 9 cents a share, in the company is trying to push through Hersant victory SICKLING lost 25 points against proved by toe country's Parfiament member states wanting to go faster etic hearing for its agricultural and tiie futures market Brent crude for same period of 1984 It followed a further salary redactions meet dollar delivery in April to the , in London to dose at next week. along the path, of strengthening fisheries interests “which could was traded at' French right-wing press magnate , period of profits beginning in the the demands of lenders. SL4405. tt was also lower at DM - Mr Pool SchEter, toe Danish EEC institutions and reducing the cost us billions," he said. S2L40. Robert Hersant won the first round latter half of 1984 after foe group In the meantime, Eastern has 35525 (DM 85725), SFr 351 (SFr Prime Minister, said that a referen- power of national gpveratroezxts. Mr Hergring ^ristopherwn. the of his legal battle with the Govern- DaemdcUtwaon writes: An Opec signed concessionary wage con- again deferred dividend payment FEr (FEr and could be- avoided if toe Social The question «rfc» 354), 105 1058) dum must then Danish Vice Presidentof the Euro- ffici l described news ment over the future of the Progres o a of the UK- tracts with its workforce. on its preferred stock. Payments its Y291.75 (¥2855). The pound’s ex- Demooatic Party reconsidered . whether Denmark would be forced pean Commission, warned that re- de Lyon when the Paris commercial Saudi talks as “an historic mo- For the full year, tiie labour give- were resumed in June, August and change rate index unanimous derision yesterday to to quit jection was unchanged the Community, or whether of the reforms would precip- ment* believed that it would court left him in control of the man- He backs helped to keep tiie airline November, but arrears will still at 78.1 Page 31 reject toe reforms. some compromise can be found to itate a crisis botom the GimiWuty firming agement of the newspaper. Page 2 have a effect on oil prices In slightly in the black, with earnings amountto 538.5m by mid-February. If toe party does not change its accomplish much of the reform and within Denmark. tiie abort term. of 5651m, against a loss of 5375m, Mr Frank Borman, Eastern's GOLD feU $0.75 on the London bul- mind before next Tuesday's debate. plans without foffscale amendment "There will be a crisis for Den- Another senior member of Opec although shareholders win show a chairman and chief executive, who Pilgrims die lion market to 5340.25 hot gamed Denmark vritt not be ride to sign to toe Treaty. mark on foreign policy if we are ffc* said that unless the UK changed its loss on their per-share earnings of has often been at loggerheads with SI-90 in Zurich to S34150 In New reform agreement at the meet- Snhlflter be in At least 17 Hindu pilgrims died on the Mr said thattifit became ginn g to leave the EEC by say- non-interventionist approach to the 36 cents because of deductions the for the unions, said yesterday that the York February comex settle- ing of Community foreign ministers necessary to hold a referendum he ing no to the package," be said. an island in the Ganges river when oil market there could be tittle preferred dividends. Revenues for fonrtiHjuarter loss reflected sharp- ment was S34L00 Age 38 planned for January 27. was convinced that toe electorate There would also be an internal a fire broke out at a religious festiv- future in the proposed talks. the quarter amounted to SlJ3bn ly declining passengHr yields as the mi »fcr If. Denmark rejects the reforms, endorse toe proposed economic crisis.” He hoped the So- al attended by an estimated 200.000 INTERNATIONAL Tin Conncfl, to result of industry-wide fore dis- &e measures cannot be incorporat- cial Democrat position was not the Spot prices, Pbge 38 tfr*- people. At least seven people which yesterday began emergency from $44bn. counting. ed m the Treaty ofRome as part of If Denmark rejected further par- party’s last word on the subject drowned when a boat carrying 182 talks on the market crisis, is being tht* Qmnanmty's fogri cnnglitn’Hnn- ticipation in toe process cl Euro- pOgrims capsized. sued by Arab Bank^ Corporation Continued on Page 16 for the return of £15m ($2L6m) Doe opens borders loans. Page 38 Siberian President Samuel Doe or- EEC is to retaliate against US curbs dered the immediate reopening of on steel imports by placing quotas Boeing plans propfan engines the country's borders with Ivory on American sales of fertilisers, art Coast and Guinea. paper and beef grease. Page 16
LIBYAN GOVERNMENT, through for bigger jumbos in 1990s Spanish bombs the Libyan Foreign Investment A bomb exploded under & French Company (Lafco), has taken a mar BY CHRIS SHERWELL M SINGAPORE lorry in the Spanish border town of jority stake in Tarnoil, ailing Italian oil company Iran, Police detonated a second previously controlled BOEING of the US, the world’s Industrie at Europe and McDonnell cornerstone of the aircraft would be LOCATIONS. Mr Roger Tamraz, bomb found unitor another French by Lebanese leading aircraft mamdacturer, yes- Douglas of the US. the "ultra by-pass ratio engines” be- businessman said to lony. have enjoyed terday announced a radical propos- This aircraft, called the 7J7, is ing developed for the 7J7. Saudi Arabian backing: Page 17 al for a new generation of 500-seat scheduled for deifoeiy in earty 1982 Mamrfactnrers explained yester- jumbo .aircraft, foe 747-500, which and is the result of a deririon not to day that this unducted fan (UDf) Libya aid claim SPAIN’S electronics industry is to would use rSvointfobgry propefier- develop a conventional tnrbafan de- system employed counterrotating be boosted by investment totalling ‘ ' -- - Israeli Foreign Ministry Director- lfifan driyene highly swept. propeller hlqjfc&A Pta (S12& ...... General David Miroche claimed multinationals. mgto Mr jarga^ae^aendrs re- being more stable, toe engines , , h that North Korea helps Libya in rial Times aerospace symposium in dogtiaa id £Qri*bern®id m direct coaid be ‘feoftTmotroted?’ onfo a figh-i training African and Palestinian in- APPLE COMPOHjRtf California} -^fogapwMs seegas aneqdigse- -^ergtmg.-cesta to mated with a ter fuselage airi se improve overall 1 reported record - surgents. The Africans included e&tnings ttf SSfiSm mehtjoftoe so-criled-“prdpfen";e»r i'xuneat eqnsvalsit, th^ ?Z2720D,w£H efficiency. i .- T . people from Niger, Mali and for the first quarter of fiscal 1985, gine technology now bring develop- be; 66 per cent and 47 par emit re- Mr Sutter said the fans would be Senegal. despite a fall in sales. Page 17 ed and a response to global demand spectively because cl the new shrouded by a large cowL Bypass forecasts which project increasing ratios of 15 to 20 would achieved RHONE POULENC: Chairman of be Sutter, giving rir traffic densities. . . Mr details of toe compared with a of the French state-owned chemicals maximum six Guatemalan amnesty “Our studies indicate that tbe proposed 747-500, fear which be said cm today's turbofans. The fan group backed privatisation of toe di- technology involved preliminary studies were ameter Guatemala's outgoing military ru- company. Page IT timing for the under would be 10-12 ft, compared the timing for in- way, stated that it would with the current lers decreed, before handing over and market have a six ft. leading creased capacity both appear to longer stretched foselageto provide representative of power to civilians, a general am- AKA, French private insur- A Airbus Indus- coincide in the mid-tofete-lOBOs," more than 500 seatsin a threeriass trie, commenting 9 nesty that covers killing and human er, has disclosed terms of a counter- on the develop- for control Mr Joe Sutter, executive vice presi- Configuration per cent increase ment of the unducted fan rights abuses by the army. Page 3 bid of Providence-Se- -25 technolo- ‘ dent Boring, told the conference. on toe 747-400, which is Said toe with. Standard Chartered cours, French insurance group. of doe to be , company did not he- ‘ “Big Is better for the nral-1990s and rolled out in 1088. Ere tbe engines would be available chaige - Smuggling VOLVO, Swedish car, enemy and beyond,” fad said. Its rkoge would be 7500 nautical on a commercially acceptable basis food group, suffered in Success in imemadopal business has a lot understand your problems and can supply Polish police in the Baltic port of a setback its The engine technology Is already miles - longer than the 747-400 - at required thrust levris in time to SKr 3J27bn (S4SGm) with having righrconnections. Gdansk arrested a Pole who they bid for Cardo, faring developed for a 150-seat air- and nuxe if the market demanded market rtarrmryj fhr new tBdh to do the solutions. investment group, after Caxdo's said was trying to smuggle to Swe- craft from Boring which wffl prae a it. lt would also have a TdgHer oology aircraft And very few banks indeed can offer you as Delayed payments become an occasional board recommended rejection of direct chaOenge-to two other lead- den 300.000 postage stamps, some cruise speed to reduce -flight times many as Standard Chartered. tbe offer. Page 17 FT rarity rather than a constant headache. of them rare. ing aircraft manufacturers. Airbus, cm long-haul routes. Tire technical eonfereoce report. Page 4 As' one of Britain's Isrgesr banks, and International cash management that enables CONTENTS specialists in international business, we have you to use funds more efficiently becomes a over 2000 brandies in more than 60 countries. reality rather than an objective. Europe Currencies .... 31 Turkey: opposition to All linked by common systems and die latest in And whether you need a more competitive ;* J Editorial comment...... 14 Ozal West (xermany: why social Companies - 17, 18 Eurobonds telecommunications technology. And aD staffed foreign exchange dealingservice, betteMailored begins to stir 2 contract is under strain . . 14 * 3 America.... Enxo-optioas ...... « by people to whom international trade is a way trade finance, or more productive advice and Companies ...... 17, IS HuboiI abms ... business and of life. introductions 4 Gold 30 MexKq: when UK gilts: getting ready for around the world, you’ll find the Overseas puL Capital Companies 20 Markets. pofiiicsiaillbinix ....3 the Big Bang 15 Tbe result Is that when you deal with service you want under one root World Trade ...... 5 Standard Chartered, you dealwith people who Ours. Management.:...... Japan: Moscow aims to end Lex: markets; Freegold; Britain - - - 9,10 Market Monitors .... in relations Companies 21,22 Men and Matters .... freeze 4 Guinness; Nomura Secs . 16 Money Market* ..... Agriculture ...... 3® 39 Teebpology: signal for a Netherlands: Rabobank’s in- Appointments ...... a Stock markets -Bourses .... 35,38 fastereirerdt . 8 ternational li 18 Am - Reviews » WaB Street . 35-38 nk - World Gride - 8 London.. 32-35,38 Commercial Law 2T Ttdnaloo 7 EtSterral comment: West- Connecticut: Commodities...... 39 Unit Trusts.... .-...... 27-29 Crossword 27 Weather 16 land; UK wages and jobs . 14 Survey 23-26
Standard Chartered Bank Head Office; 10 ClementsLane. London EC4N7AR,
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January 15 1986 2 financial Times Wednesday EUROPEAN NEWS EEC industry more Helicopter Court backs French newspaper chief parts take hopeful about BY DAVID HOUSEGO IN PARIS the off for THE RIGHT-WING French gres and Delaroche groups The practical effect of yester- a serious concern of journalists set up. Mr Pierre Bezard, Govern- press magnate Mr Robert which Mr Hersant has taken day's ruling is to impose a and unions at' the newspaper lawyer acting for the that the Hersant yesterday won the first over. freeze for three months on any who fear that it might be ment, said afterwards the East boosting employment round of his legal battle with It refused the Government's long term restructuring which Irreversibly integrated into the absence of an investigation the Government over the future request to replace Mr Hersant Mr Hersant might want to carry Hersant group. could be " embarrassing." By Leslie CoTitt in Berlin ami BY PAUL CMEESBUGHT IN BRUSSELS of the Progres de Lyon news- as chairman of the Progres out. It thus postpones ' Rich At other newspapers Mr The court declined to replace David Buchan k London paper when the Paris commer- with a temporary administrator. action beyond the March general Hersant has taken over, he has Mr Hersant by a temporary mistic about job opportunities prosecutor in West INDUSTRIALISTS IN the cial court left him in control It also decided against an in- election when Mr Hersant sometimes forced the pace of administrator because of the A GERMAN Community are show- than they were in July. Further Berlin and allied officials are European of it. quiry into the Progress group to expects a new government to restructuring by cutting the problems of responsibility for increasingly job losses are expected in Italy investigating one of the most ing themselves However, he has been for- establish its financial situation. come to power which will print-run or entrusting its Jhe group's debts and of pay- also, although not to the same date of ready to provide more jobs, bidden to take any ‘•irrever- Yesterday’s ruling was the reverse the law preventing advertising to the Hersant ing staff salaries. It said that bizarre cases to illegal degree as in the middle of last high technology •• of according to a survey among sible'' measure affecting the first stage in the Government's further expansion of his press group. Concern has been unless the financing of the transfers to year. manufacturing companies. Pub- Progres and its sister news- attempt to reverse the takeover empire. heightened at the Progres Progres had been assured, a North Korea. further factor behind the lished yesterday by the Euro- A papers over the next three of the Progres group by Mr The coart’s intention also is because Mr Hersant also owns temporary administrator could North Korean diplomats are survey's more optimistic out- pean Commission, it shows that, months. The court appointed Hersant 10 days ago in defiance to prevent iSr Hersant carrying the rival Datiphine LiWrf. have found that his job was to u strongly suspected” of smug- look is the rise in consumer “ with the exception of France Mr Paul Pactol. a former Presi- of the laws on newspaper owner- out damaging and irreversible The ruling was a disappoint- declare that the newspaper gling helicopter parts Into East confidence, especially noticeable " and Italy, the process of shed- dent of the commercial court, ship. The main battle will come moves which could prejudice ment for the Government which could no longer meet its obliga for 87 US helicopters in West Germany and Denmark. Berlin ding labour has been slowing to monitor the management of later this month when the Paris the futre .of the paper were the had at least hoped that Mr tions. Outstanding debts of the by the Hughes Corpora- This again has led maonfactur- made as companies respond to the the Progres with a right to commercial court will be asked court to annul the takeover Hersant would be placed under Progres and Delaroche groups tion in California which North ing companies to moderate the moderate economic growth in attend board meetings and by the Public Prosecutor to thus paving the way for another closer judicial surveillance and are put at about FFr 300m Korea has managed to acquire tendency to reduce jobs. declare the takeover illegal. group to buy it. This has been. the Community ower the past general assemblies of the Pro- that a financial inquiry would be (£27-m). over the past three years. two years. The Community countries fall recent months. Mercedes “ Compared with the last sur- broadly into three categories. In In cars with diplomats from fhe vey in July, there was a marked Denmark, West Germany, Ire- land North Korean embassy in East decline in October in the resis- and the Netherlands there is a tendency to enlarge Berlin were observed driving tance of companies to increase the David Barchard reports on the Turkish PM’s size of the labour force. Fur- Lisnave future into West Berlin almost daily. ing the numbers taken into employment. This, however, ther output rises cannot be met From the Wall they drove only productivity increases alone. a hundred yards to falls short of the level by few a flat still agrees truce modern building housing observed in 1980." said the Then there are Belgium, Opposition efforts fail to loosen the Commission analysts. Greece, Luxembourg and the Klllewald international trans- The main factor behind this UK. where the number of em- with unions port company. macro-eceuomic judgment is the ployed, according to in- Killewald Expotrans Gmbh Lisbon availability of new jobs in the dustrialists. will remain fairly By Dana Smith 2n Ozal’s grip on political power was named by West German capital goods industries, notably constant over the next few and US customs investigators engineering and months. LISNAVE. PORTUGAL’S in mechanical repair- TWO YEARS after taking office. leaders who together allowed “ military as having shipped the 87 5000 ca- At the most depressed level heavily-Lndebted ship interventions dd hot precision instruments where Mr Turgut Ozal and his Mother- the country to slide to the brink helicopters from California to are France and yard has gained union agree- settle a country’s problems.” pacity utilasation has reached Italy. In land Party dominate Turkey's of Rotterdam from late 1983 until ment to avoid industrial action chaos in 1980. are back in Internationally there seems to a hich level. France, around half the com- for a year in return for which political scene almost effort- politics. be recognition that Turkey has mid-1985. From there they This does not apply to France panies surveyed were expecting were sent to Hong Kong it will pay employees at least lessly. but stirrings of effective None of them is back officially moved closer to the European and where industrialists in the capi- to cut jobs, while in Italy the Es 25,000 (£109) a month. opposition have begun among but all four men have regained parliamentary and democratic then to North Korea. tal goods sector are more pessi- proportion is about a third. Burdened by heavy losses that the politicians displaced by the the ability to talk to the news- orbit. >. with the oil and shipping military in 1980. papers and are informally began - The Turkish' press recently Affiance embargo crises of the 1970s, Lisnave Contrary to predictions, Mr linked with political parties reported that the International trading with i OzaTs Motherland Party has sponsoring them. However, they Any North problems increased when Press Institute had recognised MEP accused of being could not lay off excess labour managed to stay united, despite and about 400 other politicians Korea by US companies or in- the restoration of press its hasty assembly in 1983 from from the old era face restric- dividuals has been illegal forced on it during the 1975 freedom in the country. revolution. politicians of widely differing tions on their open return to under US law since the Korean The decision of five countries, IBM’s messenger boy Under the relentless pres- or unknown political views. The politics and party activity until War of the early 1950s. But, which had been suing Turkey sure, too, of militant workers, party looks set to fight by-elec- 1992. until very recently, this sort in the European Commission BY QUENTIN PEEL IN STRASBOURG Lisnave’s sales deteriorated tions for empty seats in parlia- on of ‘’dual-use” Hughes heli- Human Rights for alleged along with its image as one of ment during 1986 In reasonably copter does not appear to have THE WIDESPREAD practice of in- tion technology and telecommuni- human rights violations, drop Europe’s best repair yards. It strong and united shape. The social democrats to been on the Western alliance dustrial company lobbying in the cations. and to allow for mutual re- their case was also seen as a now owes about 9180m includ- This is despite a widespread embargo operated by the Paris- European Parliament blew up into cognition of approval have emerged as Mr major Advance In relations with type for tele- ing interest to Portuguese feeling among ordinary Turks based Co-ordinating Committee yesterday a Western Europe. a full-stale row when communications terminal equip- banks, and revenues have that the Prime Minister's Ozal’s chief opponents Turgut Oral ... leading a (CoCom). Thus, when the US There is leading member was accused of act- ment fallen from 5140m in 1981 to economic policies have cut their but with split speculation that the strong and united party first raised a year or so ago the a Improvement ing as a “messenger boy” for IBM, 942m in 1984. spending power. A' poll in the in relations with question of the transfer of the Mr Herman, a staunch proponent opposition they general the US computer giant Under an agreement with the Istanbul daily Tercuman stand Europe may be a prelude to an elections, neither Mr Hughes machines to North of deregulation in the Application Ozal nor Mr Fernand Herman, the long- telecommuni- previous Government the yard recently showed that though 45 little chance of winning for Turkish full the social democrats Korea with the West German cations industry, was calling for the will have a majority. authorities, the serving Belgian Social Christian has shed 2,000 management and per cent of voters believed that an outright majority. latter initially changes in the report to ease the production staff, bringing its they were worse off under Mr JEW S Z S£5 Mr Cindorule’s True Path responded that no offence had and member of the European MEP major industrialists burden on terminal suppliers and to total labour force to 4,500. Ozal. only a quarter thought believe Party may hold the balance of been committed under German People's party, was charged by So- that in the long open up competition for private- With a streamlined labour they would be better off if -he Mr Demirel and Mr Ecevit run Turkey power and could go into a coa- law. cialist opponents with tabling must integrate sector manufacturers. force and a modestly-improved was replaced. are addressing their followers economically lition with Mr Ozal. Mr Denri- parliamentary re* in West German customs reports amendments to a year There seems •with Western Europe. sights market Lisnave hopes this to be a tacit the daily newspapers, staging rel's seem to be set on obtained by SFB Television in port identical to those proposed by He was accused by Mr Alman awareness that there Is no real Although Mr Gwyn Morgan, to repair 120 ships and achieve public visits to towns and en- . tbe 1989 presidential elections. West Berlin said the helicopters IBM. Metten, alternative e EEC the Dutch Socialist author reserves of about $54m—though to the international!- gaging in other political lobby- representative in Turkey has almost always were originally sold by * * 5 * ‘ u A ”' Hughes The issue arose in a debate on will still far below sation and restructuring of the~ ing. Ankara, continues to be tar- elected military of the report, of behaviour “incom- prices be Mr Demirel has had the a a figure to the to Associated Industries foie in get for vehement European Commission plans to patible with bis position” as a mem- realistic levels. Turkish economy the Prime support of the True Path Party attacks by the post of head of State, and In north Hollywood. California. re- Minister press and is standardise equipment foe informa- ber of the Parliament. No Lisnave worker has is attempting. for the past two years. It was known to be un- any case President Kenan Evren They were delivered to Delta -about Ozal continues popular with officialdom, ceived full monthly pay of Mr to benefit not allowed to enter the general the may technically be eligible to Avia Gmbh in the Eifel moun- Es 70,000 for a year. The yard from the tight political arrange- elections in 1983 but came a feeling is that the recognition run again. tains region of West Germany. has paid only about Es 20,000 ments created when, the military surprisingly weak third in the of Turkey’s restored democratic But the prospect of a deal Delta Avia had signed a a month causing its employees withdrew from the front of the 1984 local credentials is sufficient for fur- con- elections. with Mr Demirel remains. “If tract with -Korea Mangyonge “I studied French hardship. oliticaJ stage in 1983. He is a Hr Ecevit has recently set ther advances in relations with he turns himself into a national trading company in Pyongyang; Erilliant publicist, and has taken up the Democratic Leftist Party. Europe. “ leader said' an associate ‘of the North Korea, for the delivery of fall advantage of the access he a grouping which is headed by At home Mru. Ozalsrw.iv chief for years but I still , Prime Minister, -the Mother- !0O~ helicopters with spare parts has to the media which outstrips his wife. Women politicians are opponents are the Social Jobs at risk land Party might consider Mr and tools. By spring that of the opposition parties, a rarity hr Turkey and Mrs Democrats who have merged of last Demirel as a presidential candi- year, 87 helicopters worth can’t speak it” even those represented in Rahsam Ecevit has never been the second largest party inside in Denmark’s date in 1989.” $35ra were transferred to North parliament directly involved in politics parliament with tbe second Korea by Killewald. Payment However, his position is grow- before. largest party in the country. The move would reunite the shipyards was made to a branch of the "Ton. t&o4e,
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Financial Times Wednesday January 15 1986 AMERICAN NEWS
G5 *not David Gardner looks at the background to the managing director of Vitro’s resignation Retail sales likely ’to Politics increase act on and business fail to mix in Mexico by 1.9% THE RESIGNATION of the was his increasingly . public has held uninterruptedly since example, which collectively By Nancy US dollar chief involvement -with Dunn* In Wnhlngtpn executive of one of the right- the 3010 revolution. owes over $5bn (£3.5bn) abroad, wing National Action Party Bjr Stewart Fleming in Mexico’s biggest private com- could probably not have sur- FREE-SPENDING US con- (PAN), Mexico’s Participation, by either sector Washington panies because of bis involve- main opposi- vived the last three years with- sumers, lured by sew cnt-nate — tion group. in partisan politics is actively ment in opposition politics—has discouraged in the case of out a Government scheme to financing offers for cars, pro- THE FINANCE ministers of In an interview Proceso, lighten industry’s foreign ex- duced a sharp rise in retail cast a spotlight on the often with business and constitutionally the five major industrial coun- the combative left-wing nation- change obligations. sales last month. tense and always complex rela- proscribed in the case of the tries (G5) are unlikely to take alist weekly, Mr Sada said: predominantly conservative Government controls Purchases rose 1.9 per cent; any new initiatives to drive tionship between the Govern- “The highest political sectors The Church. credit, and the demand created the biggest improvement in down the value of the US dollar ment and private sector. of the Cabinet" (assumed to In effect business has been by the public sector can make sales since the 2-1 per cent at their meeting in Loudon this mean the Interior Ministry and Mr Rogelio Sada Zambrano, politically expropriated and in or break companies. Increase in September, when weekend according possibly the President) had many to Dr Onno a scion of what throughout this return has received privileges Furthermore, the Government cheaper car credit also spurred Ruding, the Dutch Finance century tried to “ gag ” him. and that has been the core group which, it is implicitly under- sets key prices; the future of a a rise in retail sales. The 5.7 Miister and chairman of the of he had received more discreet Mexican capitalism, in Nov- stood, depend on its at least company like Alfa, for example, per cent jump in car purchases policy threats from. “ certain ministers making interim commit- ember quietly relinquished his tacit last month accounted for more in support for the regime. currently renegotiating $2.0bn tee of the International 13-year tenure as managing the economic area.” than half of the total retail Business has a voice through debts with its foreign creditors, Monetary Fund (IMF). . director of Vitro, the virtual In this, his only public state- sales increase. chambers of commerce and depends ultimately on the con- Characterising the GS agree- monopoly glass manufacturer ment on the affair, Sada Mr industry, membership of which trolled price of steel. Department store executives ment to drive down the dollar’s and arguably Mexico’s most suc- said he was in effect told to Is obligatory and which serve complained that their own value reached in New York in cessful company. “choose between your status, Rogelio Sada Zambrano (left) accused the Such a context adds weight Government of as the official conduit for con- Christmas business was hurt September of last year as “to your power and your money, Miguel de la Madrid pressuring to the words of Mr Larralde of Vitro, along with Alfa, Visa of the Vitro board into tact with the Government because so many consumers a large extent a success.” Dr and Cydsa, make up the Mon- or your freedom of expression seeking his resignation. Vitro, explaining the Sada bought new cars. Buying The system has worked and at Ruding said “There is a grow- terrey Group of companies, the and fundamental liberty." resignation: “We are a board general merchandise stores rose been lucrative for both sides, selected for ing feeling among Europeans largest business concentration our administrative only 0.3 per cent in December, Senior Vitro board members alleged by the PAN to have relief the sort of tension not least because PRI rule has that the larger part Of the drop la Mexico, owned by different acknowledge virtues, not our political inclina- after seasonal adjustment. that Mr Sada’s been rigged in favour of the Mexico's de facto one party provided stability unparalleled The (in the dollar) has taken place. tions ... we cannot have some- sales branches of the Garza and Sada political involvement was the ruling Institutional Revolu- system is supposed to hold at of durable goods rose 4.3 in Latin America and average one who endangers the patri- To the best of. his knowledge families, and. so called because principal, if not the only, reason tionary Party (PRI). bay. Rioting followed per cent after rising 0.7 per the July economic growth of 6.6 per cent mony of shareholders no concerted action in that the headquarters are in the for his abrupt departure. who do cent in the previous month. announcement of an unbeliev- a year between 1940 and 1981. not direction is to be expected, he north eastern city of Certainly, the PRI resorted share his point of view. Sales of non-durables rose 0.6 Monterrey, “ There were also substantial able PRI landslide, and in said. to ballot fraud last July to Frequent differences were per cent in December, the powerhouse of the Mexican response local pro-government “ Justly or the same philosophical differences be- secure the more important post relatively easily resolved un Justly, as execu- Dr Ruding, who is holding a private sector. trade union leaders threatened so as in November. tween the board and Rogelio on of governor of Nuevo Leon, the tives we are branded with the series of meetings in Washing- to close long as the private sector’s Last month, Mr Sada, dis- the management of the com- state of Monterrey’s factories. “ V of Vitro and the Government For the entire year, retail ton with top officials including which Monterrey is the politics remained institu- abusing those who thought this pany," Mr Adolfo Larralde, does not necessarily separate sales rose 6.3 per cent after Mr James Baker, US Treasury capital. A remark by Senator Raul tional” and unobtrusive. The was another in a long series, the views of the individual mushrooming by 10.5 per cent of Vitro board chairman, said. Caballero, the senior trade problem is that increasingly and Secretary, and Hr Paul Voicker, The PAN’s candidates for in 1984. Last week the Monterrey Group family rows “Bat these could have been union leader in the state, went are the company,” he said. Govern- federal reserve board chairman, both posts they not now that sectors of the kind which exerts a sort resolved without his leaving.” were prominent to the heart of ment reported a drop in unem- said the decline in the dollar the problem. of business have swung behind of Dallas-like fascination local industrialists and though Whatever the outcome, the ployment and moderate whole- on Sada seems to have “There can be no question,” a FAN riding high on protest is already quite sharp. Euro- Mr most Monterrey businessmen “ Sada incident and the climate sale inflation, suggesting the Mexicans, directly accused he said, of us handing over votes and showing ability to pean governments are worried incurred the wrath of the stayed on the sidelines, many it reveals, will not much ad- prospect for better growth this President Miguel de la Madrid’s political power to those who particularly that if there were to be a sub- Government when he appeared outpoll the PRL in vance the De la Madrid Govern- Malcolm Government of pressuring the were shocked and angry at the already hold economic power." year. Mr Baldrige, the stantial farther drop in the at an end-of-canxpalgn rally to the northern border states. ment’s efforts to restore busi- Vitro board into seeking bis brazenness of the Government’s Commerce Secretary, yesterday dollar “it might create the im- support the PAN candidate for vote-stealing. The PRI regards the private However private sector depen- ness confidence, as the econo- predicted a “healthy quarterly resignation. of Monterrey. r pression of a hard landing and mayor This sector, and the Church, as dence on the Government is mic crisis unleased in 1982 gain ” in retail sales during the could lead to panic reactions He said the reason for this election, in November, is The experience threw into competitors for the power It great. The Monterrey Group, for shows little sign of abating. first quarter of 1986. which could drive np US interest rates.” he said. Such reactions would not be in the interests of the US and Military rulers the industrial countries or the developing world, he said, in Guatemala adding “for the US the major objective should be a reduction of US interest rates," which he decree amnesty linked to progress on the GUATEMALA’S OUTGOING Federal budget deficit military rulers, acting shortly He conceded however that before banding over power to the fall in the dollar so far might not have a major Impact civilians, have decreed a general amnesty that covers killers and on the huge US trade deficit in human rights abuses the but that he was not too by 1886, army, Renter reports from concerned at present about the Guatemala City. danger of a protectionist up- decree surge in the US as a result The was announced less than hours before “ I sense that much of the 24 Mr Vinicio Cerezo, steam has gone out of protec- moderate Christian Democrat, tionist pressure," he said. was to be sworn in as Guatemala’s first Officials close to the G5 meet- freely-elected president after ing are making it dear that they more than are hoping that weekend's 30 years of almost unbroken military rule. session should not be a repeat of the public relations spectacu- Signed by General Osear lar staged in New York in Sep- Humberto Mejia Victores, the the outgoing Chief of. State, the tember when US made 11 dollar devaluation a top decree declared a general economic priority, amnesty for all persons respon- * At the meeting the US is ex- sible for ... or connected- with pected once again to urge West political and common, crimes committed between Germany and other nations to March 23, pfr?t“-T*r 1986." try to accelerate' their rate of 1982 and January 14, economic growth, something On March 23, 1982, General which West Germany is reluc- Efrain Rios Montt, General tant to do. - Mejia Victores’ predecessor, The TJS Is also seeking to seized power in a military coup establish the G5 as the major and unleashed a ruthless forum for economic policy counterinsurgency campaign in making discussions among the which thousands of civilians industrial countries, something were reported to have been Dr Ruding indicated yesterday killed. is not bemg well received by Legal experts in Guatemala the other six countries who City said although the decree make up the so called G10 in- could apply both to the army dustrial nations. Dr Ruding is and Its left-wing guerrilla foes, proposing that GIO should meet it was clearly intended to cover
for half a day before the April army personnel Involved . In meetings of the interim and human rights abuses between development committee meet- 1982 and the return to civilian ings in Washington. role.
Peru under fresh pressure to meet delayed payments BY PETER MONTAG NON, EUROMARKETS CORRESPONDENT PERU WILL face fresh pressure than $250m since the country to meet delayed interest pay- started rescheduling in 1983. ments to creditor banks when Peru has been meeting Mir Richard Webb, the Prime service payments on its abort- Minister’s Debt Adviser, meets tern debt despite an overall main lenders in New York limit on debt service of 10 per today. cent of exports or 9350m in the
year endJUIy. In . Bupt there is little immediate to return it hope that the government of wants lenders to scrap their President Alan Garda will bow practice of charging interest at a margin over expensive to bank demands to reduce the prime rate. arrears that now total some 8400m Bankers say that with (£278m). reserves of flbu Peru could Is the first be- The meeting afford to make more interest last tween the two sides since payments. Debt service pay- against the autumn and comes ments to all creditors since last backdrop of an end-January August have totalled only current arrange- deadline when S150m which still leaves room ments for the extension of for more short-term credits expire. Though this theoretically Bankers say they expect Mr creates room for a compromise, Webb to ask for better terms they said they were not very on short term debt as well as optimistic at this stage and an increase in trade lines to regard the meeting as mainly an Peru which have fallen by exercise In keeping communica about two-thirds to little more turns open. When Surrey Police were his name four times but he fora computer they won’t change his face, or the (not surprising) a thorough investi- local Incident irayor investi- Kennedy visit to Chile made Boom on four . colour of his eyes.) gation- They interviewed a number of gations. One such case was the search for However, the proof of the pudding stiis political passions different computer companies but they the M4 rapist; which involved clusters of for John Evans is this: “As a cynical police- , BY JIMMY BURNS IN SANTIAGO choseBurrou^is B20 Series. B20*s in two constabularies linked to the man, the great advantage for me is that CHILEAN political passions granted Senator Kennedy a Before we installed their computer Police National Computer. operational detectives now actually want have been stirred from their “courtesy” entry visa but has system,welookedatthewaypeoplein their The flexibility ofthe B20 cluster the system? traditional summer slumber by refused to meet him, in protest the visit of Senator Edward at the US congressional-backed office actually worked.We asked who they allowed one workstation to workon the M4 In many ways, thatfs what people Kennedy, who is due here today arms ban against the country. needed to talk to inside the office another helping police are finding wheneverour office on the latest stage of his fact- The baa was imposed as a result and enquiry while was automation finding Latin American tour. - of Chile's poor human rights whethertheyneededaccesstoamainframe with their enquiries into a major robbery. systems are instaUed.Ihxnanufacturing,for in local record on the recommendation Advertisements news- computer (Since also feet, they could cluster example, distribution, papers have declared the visit of Mr Kennedy and the late Burroughs supplied In up to 64 work- commerce, retail, “ against the national interest,” Senator Hubert Humphries. the Police National Computer; this particu- stations. finance and government and claim any Chilean meeting Local opposition groups have In the with the US senator as a traitor. heralded Senator Kennedy’s lar task was made easier but, in feet, the As well as the B20, Surrey Police have words of the famous American Supporters of the regime of visit as an important symbolic B20 Seriescanlink intomostntainframes). also installed an Ofisfile, a filing system TV police series, there are a million stories President Augusto Pinochet gesture of support, for their have already staged anti- struggle against the regime. In Hus case, ofcourse, the office be- that’s again designed for the way people to telL This has been one ofthem. Kennedy demonstrations In They are expected to me his longed, to the CTO, so at the work As Deputy ChiefConstable John different parts of the city. visit to expose the growing ten- same time as Fbr more information call Brian Reynolds Similar protests . with the tadt sions between the Pinochet buildfogan identikitpicture ofthe waythey Evans of Surrey Police says: “We can actu- on 01-750 1420 or write of the authorities, are regime, and the. US. blessing it expected today when Senator Mr Harry Barnes, the new US worked,we looked athow their customers ally ask something like ‘man with grey to him atBurroughs nwets with opposition ambassador Kennedy in Santiago, was worked, j eyes’ and it will tell us how many times the Machines Limited, leaders, church. Officials, human recently publicly rebuked by rights group and trade unionists; President Pinochet, for bis AlreadytheB20 Serieshasbeerttaken phrase came up in interviews.” Heathrow Hse, Bath RdL Chilean Government in -alleged suppout for an The early to the scene ofthe crime and housed in a (inafraud case,acon-manmaychange Hounslow, the example of Its transition to dewcratic rule, in TW5 9QL. “carrot and stick” policy, has Chile,
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15 Financial Times Wednesday January 1986 OVERSEAS NEWS PRESIDENT BADLY WOUNDED IN AS8A3SINATION BID BY PRO-MOSCOW HARDLINERS South Yemen power struggle unresolved after coup attemptA. BYRY RICHARDBirUAnn JOHNSIrvusir *
ation — « to whether Moscow reived' by wireless from the ' port midnight "Monday.v“uiV' Thereafter, Minister of Local Admlnistra- integrate the fully year* but the expense of ex- the Marxist nteimeTof South haii “in anV mv emwilrared thi nf PDRY more at non, and Mr All Shayie, with committee YemeT^stiU uTesolvedS b?d to^eSrow SLhaSSSi SSS dJSSXKL* a rank- the Arab world as a whole, panding the central terday evening and the coun- Mohanuned, who has been head for serious injuries he suffered w There was no9 certaincertainty yes- Abdul Fattah Ismail, one of regime signed Kuwaiti-spon- to 16. try's armed forces 1 a politbureauSBsa from 13 appeared to of state since 1980. in the assassination attempt, ’ «ra terday Abdul Fattah the be badly divided, foremost leaders of the sored agreement with Oman Among the newly elected mem- as fierce fight- line nm.VltOAMi> sL. __ a «* _ . .T > J..1 aro“nd "aLSSJ^TfySHS ss“ BntSh S3 5Sn7!35;fi3.S: ETWWZTSBi ar“of Aden. ssr arer-s President Ali Nasser Moham- (PDRY) related to the O^r men in Aden have been m_M«» President alsoff'H'M'SSSL"!*set about improving reia- aboutS'® a year ago apparently, tions with North Yemen—the according to Arab and ’Western diplomats, with Soviet blessing. He was believed to have been base in the armed forces. Be and other members of the dent’sdent's rapprochement with con- ’ pressing for reforms and Diplomatic observers com- Others said to have been chief "rivalT i rolmg party rival, who then returned seemed likely since October's changes in policy. was known for his pronounced more devoted to seraative regimes of the region mented on the fact that All executed were Brigadier the AH to powerpower. session of the Supreme People’s Brig Ali Ahmed Nasser Antar pro-Moaow leanings but was Soviet Union. There was and apparent wish to lessen Nasser Mohammed’s voire had Ahmed Nasser AntarTa former Thereafter Ali speculation Nasser Council confirmed had responsibility for defence believed to have had some fric- among diplomatic dependence on the Soviet Union, not been heard on Aden Radio Minister of Defence and Deputy observers visited tion with Soviet military — but no confirm- haw information re- before it wept off the air on Premier, Mr AU Salem Ilifidh. Arabia at ni7e““mov^°S STSaJfnpfti SSVSSi KfteS hl?ioi£? advisers.
Afotfce guards ofRedemption Army Shevardnadze aims to end the Australia’s Mobil International Finance Corporation key Beirut U.S. $35,000,000. 1% Guaranteed Bonds 1986 freeze in relations with Japan amount NOTICE IS HEREBY GIVEN" thji pursuant to Condition 2 of the Bonds, 51355.000. aggregate points after BY JUREK MARTIN IN TOKYO principal amount at such Bonds of the follow ine distinctive numbers Ilk been selected tor redemption on February- i 5. IPSOar the redemption priced 100% o< the principal amount thereof: JAPAN is not accustomed to so long is noteworthy; that it erxmxent, certainly not a con- rises having Soviet deficit Stowe COl PON BONDS foreign ministers should be but months after the servative one, would entertain 21 killed descend, invited, on its door- Reagan-Gorbachev By Michael Thompton-Nod la MS5 3537 0144 RttC 10714 12179 13702 16304 20023 22097 36804 28171 29240 80860 32354 33490 summit is, dropping this demand. WSi.1 17 24) 18305 20027 22899 20891 28175 29247 30867 32375 33500 step. as Mr Eduard *y<*n«y I VI ®!*H «.|82 I 1218:1 13888 Shevard- by the past standards of Soviet Japanese officials appear farlc inn U(i:
Financial Times Wednesday January 15 1986 5 rs WORLD TRADE NEWS Three electronics Tokyo grants japan and US may widen trade talks SOU loan BY JUREKMARTINJUREK MARTIN IN TOKYO are JAPAN and the US are certain Shintaro Abe- and Mr George Yesterday Mr PrestowitzPrestowitz said “egregious”“ egregious ” protectionprotectionistidt suggestedsuggest* the US had many majors to invest to continue negotiations Shultz met to mark the end “ JLOT to end a declaration of victory is a legislation in Congress, some things to1 learn from Japan —
• designeddestajed - to prise open fartherfurther of the Moss series on telecom- littlelittle, strong." Progress had bills contained much merit,merit. in -undeunderstanding com- _• “what . ~ • • the domestic Japanese market munications, electronics, phar- been «1 ; _a. made in reducing Nor should Japan discount petitivenesspetitivei -is all about," In in *PspiteIte ,°*of the nominal con- maceuticals and forest pro- Japanese obstacles ** ” OH “V . in telecom- "thethe hostility factorfactor” in the managementmanagei methods, in cor- DrOltCl5^^ clusionelusion, last weekend of Jt _ a ducts. municationsmunications and nh&rmacenti-pharmaceuti- US.us. poratenorate interest in employees, Ptal9bn year’s bargaining four selec- in Spain on The simultaneous announce- cals and there bad been “a Mr Prestowitz noted that and in a non-adversarial . By Robert Thonwn In Peking ted product areas. ment of a measure of agree- measure of success, though not earlier yesterday morning relationship between govern- BY TOM BURNS IN MADRID Mr Clyde Prestowitz, JAPAN IS to grant soft loans special ment on the intractable ply- complete, in forest products- Senator Tom Eagleton, the Mis- ment and industry. counsel to the US Secretary wood issue led the Japanese SPAIN’S electronic of F35Abn -(£12lml for a “ souri Democrat, had confessed Nonetheless, Japan, too. had sector programme Siemens - expects of Commerce and a key parti- •authorities and the local Negotiation is a discrete received a boost yesterday .joint oil development project thing. in Tokyo that he had been much to leant from the US and when that 62 per cent of a forecast cipant in the so-called Moss media to suggest that one of You can achieve every- three multinationals in the Bohai Sea, off the thing transformed from “a flaming about US attitudes. Japan’s separately income of Pta 23,000 in Spain , (market-oriented, on the agenda without northern sector selec- the biggest hurdles in the free trader ” into a protec- historical and cultural homo- announced' investment plans will be earned by new products. coast of China. necessarily solving all the : tive) round, said in Tokyo bilateral trade friction saga had tionist. For a man like Senator geneity had meant that "it totalling Pta Iflbu (£S7.4m). The corporation is aiming to Contracts are likely to be problems." Mr Prestowitz said. yesterday that a continuation been overcome. Eagleton to say as much, he hasn't had to think very much The programmes follow' a raise the value of its exports signed later -this week by the was inevitable The extent to which Japanese and the talks The US Administration, for said, constituted a real “ sea about what it means to be open. breakthrough decision last year from Spain of electronic and Export-Import Bank of Japan barriers remained was still might have to be extended to internal political reasons, wel- change" in attitudes. "The Japanese think they are by American Telephone and data processing systems and and the Bank of China, with other sectors. • comed the conclusion of very much a matter for debate. ' the a Telegraph to establish a major Though tough negotiator, open, but they don’t understand components to Pta lO.OOOton by 49 per cent of the loans due Last Friday in Washington, round with considerable hyper- Although the Administra- ' . Mr Prestowitz is by no means what we mean when we say semi-conductor manufacturing 1989. in nine years and the re- the foreign two ministers. Mr bole. tion could carry a veto on an ideological free trader. He they are not open." base near Madrid. They will The investments indicated mainder. in .11 years. The further diversify The Spanish that Madrid’s three-pronged interest rate has not been electronics sector and establish strategy to bring high-tech to announced. a strong research and develop- Spain was showing results. The The Export-Import Bank ment base (R & D) in Spain. CUrr first 'of the prongs is the so- said negotiations for the loan India set to decide on controversial contract ti) The biggest investment pro- pipeline t called PEIN or national elec- for the- Japan-China Oil ject was announced by Siemens tronics ' and data processing Development ' Company pro- BY JOHN ELLIOTT IN NEW DELHI of West Germany which un- plan, approved in 1984 for three ject ' in the Bohai Sea had veiled plans for a- Pta lObn years. taken more than two years. INDIA IS expected to decide A major row has blown up by Nova of Canada includ- say does not have three-year programme including and The situation is politically NKK this The PEIN set ambitious tar- The . company is a joint within the next few days since bids were opened two ing Majestic a desiim centre, geared to exonr* Contractors of sensitive because Snamprogetti experience because much of its gets for increased production, venture comprising a group whether to" xwaxd a 3600m months ago for constructing a Canada and Entrepos of France, has been accused of winning work has been subcontracted, hard and software products to exports and internal consump- of Japanese oil companies (£41 pipeline contract to a 1.700 km natural 9m) gas pipeline which . Europe. bid 3864m. . contracts in India through an but has received letters from tion of electronics and offers and the China National Off- consortium of French and diagonally across India from A fourth bid at "Italian Telefonica, Spain's telecom- $825m came connection" because public authorities in Libya. generous- preferential . credits shore Oil Corporation, -which Japanese companies in spite of Hazira on the west coast near from Iraq. - a consortium including of contacts with Mr Gandhi's Thailand and Japan back- munications company, has ' lot Investment, ' as well as" ex- oversees' oiL .exploration in strong protests from Canadim Bombay to Jagdishpur in the Conflux of Mexico a efibn. and Hyundai wife who is Italian. The com- ing NICK’S claims. signed Pta agreement port credits and subsidies . ... competitors north. for .China. and Italian that of South Korea, but is not in pany strongly denies any such NKK would cany out 40 per with Pacific Telesis under which .‘ PEIN incentives slnce they aim year, Japanese ' Last ' "the Japanese NKK, tile main com- A consortium led by Spie- the running. • . the California group win build connection. cent of the pipelaying and all to diversify the Spanish 'high- Bank, which'has aimed its pany involved. Is not qualified Cabag of France, including 8c centre will be After the official Canadian cathodic protection work while -sxid R D that tech sector -by manufacturing soft loans' at energy develop- to .do the work. NKK; and Toyo Engineering of Spie^abag. leading the con- operational by mid-1988. protest and a fuselade -of pro- Spie would do 60 per cent of professional electronic pro- ment projects since entering Both the Canadian and Italian Japan, submitted the lowest bid sortium with NKK, has satisfied Hewlett Packard said' it would paganda in the Indian Press the pipelaying. ducts. the China market its 1979, Governments have said that at 3610m and was recommended the gas authority of Indian that jmend Pta 2.5bn ona new plan' from Snamprogetti. the Indian The Canadian companies' The' second prong Centres on provided loans of Ylbn for NKK should be disqualified. for the contract by the client, NKK meets qualifications based at San Cugat de Valles, near Government appointed a com- financial package includes a Telefonica's growth strategy. onshore «0 exploration pro- The issue was taken np last the Government-owned Gas on the company having laid Barcelona, manufacture - mittee of top civil servants loan covering 28 per cent of to The' Pacific Telesis deal con- jects. month with Mr Rajiv Gandhi, Authority of India. 1.000 km of cross-country pipe plotters. plant will under Mr P. K Kaul. Cabinet the foreign exchange content graphic The bank .said, the soft Indian Prime Minister, other of at least 24 in diameter in tinued a pattern established The by Mr The two main conten- Secretary, to review the bids. for repayment over 40 years, employ 800 to 900 and have out- the past seven years. last year when Telefonica loans would be used for the Joe Clark, Canadian . Foreign ders are Snamprogetti of Italy, put worth Pta 8.5m In 1989, 90 This is expected to reach a with no interest, after a 10 years signed accords with Fujitsu and development of. finds. Minister, during a visit to Delhi. at $695m, and a consortium led .cent of which will decision within a few days. The Canadians and Italians grace period. per be the Corning Glass Corporation. exported. Telefonica's 1985 coop was * a The Siemens project is ale/* joint venture with AT&T to export geared and wiU diversify .build the semiconductor plant the West German company pro- on the outskirts of Madrid. duct line in Spain which has -concentrated on supplying elec- ;. The Telefonica deal with trical capital goods. The invest- AT&T established the third ment plan will create 420 hew prong in the strategy since it jobs. - exemplified Madrid's efforts to At the end of its three-year attract multinationals .to Spain. T I Lada to unveil latest 4y models in Brussels today BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT A NEW generation of Lada of .output for the domestic mar- cars from the Soviet Union— ket which suggests exports of front-wheel-drive hatchbacks the 2108 could reach 110.000 a of it organisa- year—but mainly at the expense more developed by the VAZ what tion and refined by Porsche of the Riva and Niva sales. Engineering of West Germany In 1984. Lada achieved sales —makes Its world debut at the of 90420 in Western European Brussels Motor Show today. markets for ai 0.85 - per cent share. After nine months of It could enable Lada to lift 1985 its sales were 67,293 and West European sales above share' 0£3 per cent. 100,000 a year .and to more Best markets, ra 1984 -were than, j: per. cent .of the total France (23.051 sold), the market. *~ UK (15.033); Belgium (1X922?. Fin- : new about the .The models*, : er. land (11,4$^ and West Ger- same. size as the Ford Escort : many (8,620). •••*— and previously known by the The new model will be called code name, .the Lada 2108, will Keeping-your nose out in front in any small business is no easy tike- Lada Samara in Belgium go on sale in Continental mar- and prices of the 1.3-litre task these days. With legislation for this and legislation for it kets in the late spring. UK that The versions range from BFi2O5,0Q0 importer hopes to receive sup- can (£2,820) to BFr 210,000 be an administrative nightmare. If your leisure life has been plies in the second half of 1986. compared- with the BFr 194,869 turned into a life of ledgers and if your once original thinking is VAZ has stressed In the past list price for the- current that production of the current 1.3-litre Lada' Niva. being smothered by paperwork then the Tandy 3000 could well Lada Riva models, based on out- A three-door hatchback, the dated Fiat designs, and the new Lada employs two, all-new be whatyou need to help you restore some order. four-wheel-drive Niva will con- naturally-aspirated engines with It's the sort of desk top decision maker which can release you tinue at least until the end of electronic ignition, a 1.3-Utre the decade. and a 3-5-litre, both four- and key staff to pursue fresh business ideas. About a third of the capa- cylinder units with belt-driven Ideally.suited to a small it city of VAZ"s factory at Tog- overhead earnshafts and business has the power and speed to - liatti Soviet Union has aluminium heads. in the competently handle your existing business needs. It’s also big been turned over to the 2108, The manufacturers so far giving an annual capacity of have given details only Of the enough to stretch with you as your business grows. about 250,000- 1.3-litre versions which indicate Robots and other automated only an average performance For those who know about these things you’ll recognise that have been installed compared with the competition. equipment the intel-00286 is “the business” when it comes to performance. in the body product area of the The BS-hp engine gives a top plant. speed of 92 mph and takes the If performance is at the heart ofany decent computer then The Lada organisation has car from 0 to 60 mph in 14.5 been keeping about 60 per cent seconds. the software is its soul, and with the Tandy 3000 you get one of the widest-choices of software for any personal computer available. Making use of existing software operating on the Tandy 1000 and the IBM PC/XT and AT Tandy 3000 comes with half a megabyte ofmain “ memory (512K) which you can upgrade to 12 : r < '...! I« megabytes (under Xenix). The 3000 has a bigger ...... '."I gggf; "] V -..„ brother which might suit your business a little more. &•* It is the 3000HD with a built-in 20 megabyte hard V" - • .• -• A > - v . ;•*••••• *•- - ' ••••-.- *. . . disk drive. Both will let you link up with telephone ' ' - • •••;• .. ' .v.- , *' - * i- -7- - ; t A reminder modems, printers and-plotters. v t , The Tandy 3000 Floppy disk system • .. adi# including Companyacoounts for the monochrome monitor,.text monitor adaptor and is available MS-DOS 3.1/Basic from £2,432 plus [ period ending 31 March 1985 VAT while the comparable 3000 HD 20 iMBS ' should reach the megabyte system costs from £3,232 plus VAT Whatever system you opt for you’ll get & ** Registrar ofCompanies by m & & m t* the sort ofpositive back-up you’d expect & & & & 2* us sc et 31 January 1986 from one of the world’s leading computer Ca-:- iC' ilt & %: companies. The Tandy 3000 systems add rESt . up to remarkable value for money and that, private ' - applies to any company ' A ‘ This • - we believe makes our computers l 1! incorporated before 1 October 1984 which dearly superior. Test us out you’ll hasan accounting refereneedate of31March and find we really do have more ofwhat it takes. unless it hasan extension oftimefordelivexy under section 242 of the Companies Act 1985. Otherwise the directors will have committed an offence and may be prosecuted. The Register is looking for the support of tee accountancy profession in directors to meet their obligations. helping The range thatfs clearlysuperior COMPANIES REGISTRATION OFFICE Tandy Corporation (Branch UK), Bridge Street, Walsall, West Midlands WS1 1LA. Companies House, CrownWay, Maindy, Telephone: 0922 648181 CardiffCF4 BUZ.TO: Cardiff (0222) 388588. For further information dial the.operator and ask for Freefone Tandy Computers Available from selected Tandy Stores. Dealers and AT Computerworld
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6 January 15 1986 Financial Times Wednesday THE ARTS
Television/Christopher Dunkley Secrets and corruption flourish between the dancing Bluebells broadcast after had wonderful time paying r- — — - a NoNorfolk jacket and The resurgence Ofof tthebe BBC grammes 6 pm bad a , beard and * .. victimsuieHmc of racism lived together continues apace.e. Admittedly find the BBC's dominance tribute to the master. — possessed of tthat irritatingly you I • for sveoay*five days "* 1 in a X^oo bcmsehouse for : Devon W which seeks ITV had a Strange schedule last even more marked: It attracted We bad everything from I . . ?. portentousM-r-ntous style to while Edward Goldwyn s night with the opening episode 58 per cent of the audience to parodies of the favourite Hitch inject significance into trivial cameras recorded the result— of Central’s drama series Boon commercial television’s 42 per camera angles (the floor-level banalities. He tried to turn the an uninformative mess which and then, after the news, nearly cent pan which for some reason is well known history of the broadcasting. awful so sinister) a builder's mer- was not worth “Frankenstein” into a two hours devoted to the Of course while this proves to genesis of and important subject of chants’ board announcing On the other hand Frickley— but failed. that the BBC can, when it puts mystery torture. However, between “Hitchcock and Co." There The Changes, a five-part BBC2 its mind to it, do just what it In the arts BBC2 is yet again Christmas and last night the were two flaws: however much series shown within a week, was says it can — provide more leading the way with Architee- BBC has been overwhelmingly the production team enjoyed remarkably effective in reveal- a popular programmes than ITV and tvre at the Crossroads, 10-part predominant. My notebook for the trip to Italy the main effect ing a variety of attitudes began on Sunday — it tells us little about the the series which the week ending January 12 of the Italian section of the effects brought about by of praise to the quality of the programmes, pro- with a paean shows that X watched 27 pro- drama was to slam the brakes miners’ strike. In these The way though it does show yet again post-modernists. in grammes on BBCl and BBC2 on a hitherto runaway plot: grammes, made by BBC Man- that the popular belief about which the few architecture pro- and just six on ITV and and the notion that the dogs’ chester. the television crews years have Christmas television being on grammes of recent Channel 4. home would not bother to in- did not pretend to be flies editorialised in dominated by old movies is consistently Before considering the new vestigate the Identity cylinder the wall: they simply visited dur- series which have arrived with on-the collar' of a lost dog was their subjects repeatedly strike and the new year it is worth looking ludicrous. That aside. The ing and after the Commercial television is The BBC can, when it pots straight to back momentarily to Christmas McGuffin was - an enormous interviewed them going to have to come up its mind to it, provide camera- to remark upon the BBC’s extra- pleasure. with more fresh and ordinary triumph in the ratings more popular programmes Sometimes the results were What Is more, “Screen 2“ has programmes I predicted FT'S than telling than the. subjects diverse arts contest. in the an even more outstanding, more Christmas Eve programme sup- may have realised: all the talk albeit less amusing, drama “ " “ plement that the Corporation, of loyalty and community of post-modernism (most utter nonsense. Citizen Bane, coming up a fortnight on Sun- experi- favour having lost the battle for Christ- chimed oddly with the which looks to me like ordin- Diza, The Great Race. The day. Frankie and Johnnie, miners who of mas 1084, would win in 1985- ence of working ary old modernism with weak Great Escape, Arthur, Moon- written by Paula Milne and members of But even I was surprised at the directed found that loyal jokes bolted on the top or reiser, Gregory’s Girl, Super- by Martin Campbell wait- thoroughness of its success. their close-knit community the sides) is quite man and many others were all who made Edge of Darkness, is painted on First, it took nine places out ing till dark and then heaving If a single school beaten out of right by special part of a sudden flood of drama “ extraordinary. of the Christmas week Top 10 Carolyn Pickles as Margaret Kelly in Bluebell” bricks through their windows. attempted to hijack television editions of television's own pro- about British secretiveness and series nationally (and in London, the It was an engrossing music or paint- ductions, such as corruption in high places. programmes oh south and the southeast it Only Fools which might benefit from an- and Horses, All Creatures Others in the flood include ing in a similar fashion it would swept the board). Secondly, it Great other episode in a year’s time and Small and Defence of the Realm and Dead be given short shrift. achieved this entirely with pro- Telly Addicts. want to get back to the book An unscrupulous antiques which Desmond "Wilcox is to discover whether grudges Head which starts on BBC2 Still, any full-blown series on grammes transmitted on Christ- But enough of 1985; what of and the open prairie of your dealer, Lovejoy is one of those scrutinising the nuptials of are still carried, whether the tonight The centra] character architecture is to be welcomed, mas Eve. Christmas Day and 1986? In drama it would have own imagination; Bluebell, television characters who has Marc and Karen: tonight on housework has reverted entirely in Frankie and Johnnie, as in although Melvyn Bragg Boxing Day in contrast to recent been difficult for fie BBC to later on Sunday evening, tell- the words “loveable rogue" BBCl they reach the altar and to "the women and whether the and Defence of the Realm, is a tough proficient enough ' years when the top programmes maintain in the New Year the ing the story of Miss Bluebell hovering in the air above bis the wedding night, but we shall miners* wives are still nipping turned in a and cynical newspaperman who with John Cleese for of Christmas week have standard it was setting at girls, head; a sort of '-^-market return to this series when it down to London for conscious- Interview * been the for once is portrayed realistic- and her dancing seemingly '* sessions with the The South Bank Shaw on the routine series transmitted out- end of the old. Edge of Dark- ally and sympathetically. Hywel —from the opening episode Arthur Daley. The East Anglian bas progressed a little further. ness-raising Hampstead same night, commercial tele- side the actual holiday. Thirdly, ness was so good that we cannot Bennett takes the part and gives within that familiar genre locations are superb. Last week’s Horizon on BBC2 liberated ladies of vision is going to have to start it not only took 43.4 per cent in fairness expect anything to best I have which is the BBC drama On the non-fiction side the not only pointed the camera at and Highgate. the performance with rather more of the audience with BBCl match it for a while. However, departments equivalent of Hew Year has brought a spate “ordinary coming up M seen from -him. It is a pro- people" but took Yet another BBC2 production. compared to BBC2's TV-film slot fresh and diverse arts pro- 40.3 per cent by Screen gramme worth staying in for. Boots Library; and Lovejoy, of those programmes in which the precaution of contriving the The Strange Affair Of .. .. grammes if it is not to be over- ITV. it also scored 11 per cent Two” opened promisingly on Other new drama series in- which is the name of the lead- “ordinary people" find them- situation in which they would turned out to be a James Burke shadowed by the BBC. Come to with BBC2, more than double Sunday with The McGuffin, a clude Alice in Wonderland, in ing character in yet another selves living with television find themselves and hand-pick- type series presented by a that, it is going to have to do the figure for Channel 4. splendid Hitchcock pastiche in BBCl’s Sunday teatime slot, a BBCl production, this one cameras. The most heavily ing the subjects: four self- “character" kitted out by Lastly, if you look at the pro- which director Colin Bucksey production which makes you transmitted on Friday evenings. publicised is The Marriage in proclaimed racists and four Central Casting with a white the same in all departments.
Anna Steiger/Wigmore Hall Elmer Gantry/Gate, Notting Hill Falstaff/San Carlo, Naples David Murray Michael Coveney WilHam Weaver The hypocritical preacher natural talent for oratory, along with the book’s crucial Miss Steiger, winner of the secure support When those projected despite good inten- Among the artistic directors partially contradicted the pre- hero of Sinclair Lewis’s 1927 propel him through a career in differentiation between Baptist 1984 Richard Tauber Memorial things are sorted out matters tions. of Italian opera houses, Roberto vious two. Walls disappeared, novel Is one of the many roles Southern and Mid-Western revivalism and Methodist big Prize, offered a notably of diction may take care Her SchQnberg songs—the De Simone responsible far the a tree descended from the flies; made for and missed by Orson early 20th century Christianity business; he accepts the insipid — generous programme of songs of themselves: tentative opus 2 set—were handled with San Carlo in Naples—is the man there was no more rural Welles, although Burt Lan- like a fire in a forest. He figures while rejecting the on Monday night—two and a consonants left her German less much intelligence, mid had the with the most practical stage ex- audience. Again, the stage- caster did win an Oscar for his destroys and consumes while Dickensian. half dozen of in three than half intelligible, and voice been more firmly placed perience. He made his name, picture was charming, but irre- Juiar film performance. In the preaching salvation. The book, are left with a languages, by six composers. She Poulenc’s patter-style was not would have had real distinction. I960 We coy. flat about two decades ago, when levant I was told that it all very tiny Gate above the Prince and this musical, repeat this skim through Ganlxy’s treat- knew well what they were remotely within her means. There and everywhere else Miss he formed the brilliant Com- looked splendid on television, Hill point almost nauseam. about Albert pub in Notting ad But ment of ; Lulu Bains (Elisa and as performances they In the event her Obradors Steiger's accompanist, Pamela ' , pagnia di canto popolare, a where, oddly, a cramped pro- all gained by there are moments in Steve Lewis also built great scenes Richards) and the recurring her assured, attrac- group at the end of the recital Lkhard, was pointedly intelli- group that performed—with duction can. expand, as a super- tive Brown’s new musical when worthy of Nathanael West or righteousness of his seminary presence. What they was much the happiest with gent almost to a fault: such a rare brio and musicality— spectacular is diminished. burly, Fitzgerald into the story, none contemporary, Frank Shallard, missed, rather a lot of the time, enough verve to compensate for thorough musician must be re- Mark Ryan — half- repertory of Neapolitan folk For the role of Falstaff, age sheer shaven, volatile and promis- finer than the first glimpse in whom Simon Green plays with was voice. occasional strain. Ravel’s Greek warding to work with, but her music for the most part un- is not necessarily a handicap. Miss cuous hints that Nebraska by Gantry of Sharon vocal authority and physical rec- Steiger’s light soprano songs, not altogether dissimilar, forceful phrasing did not flatter — all’s evil familiar, discovered and pre- Mariana Stabile, peerless inter- Falconer, the erotic evangelist titude his great denunciation is good in parts, and mostly lost more hy Imprecise attack her singer's more provisional that might have ended "Welles. — pared by De Simone preter of the fat knight, must well-timed whose glamour and methods number has everything except a (Wolfs “Die and Miss Steiger's limited vocal delivery. Nor did she help the Otherwise, this is a pretty himself a trained musicologist have sung it until he was 70. ” make Billy Graham look like a whiff of original melody. Sprfide is a cruel test of pitch, colour—without easy insouci- soprano to expand comfortably: tame and lame adaptation that and graduate of the Naples Sesto BTUScantini—the Sir John she hick-town hustler. When the Gospel Show device and passed it confidently). ance, for example. “Tout gai" Wolfs “ Zigeunerin " depends fails even to sustain its opening Conservatory. in Naples—is in his mid-60s Yet it never quite That scale of incident is, of gives out. Wendy Pollock is on opened, in makes a dull exercise. In very much on a haunted, in- theatrical metaphor of a So the announcement that a and: has more than enough this recital: one waited, song necessity, missing. But so, hand as Gantry’s mother. to fill German her shorter songs were sinuating tone-quality, but Miss Travelling Gospel Show, collaps- Fatstoff staged by- De Simone voice to do the music justice. incredibly, is. Sharon Falconer in gaps. Don Fellows doubles by song hy song, for the voice more successful than those with Lidiard positively jostled the ing Into dud narrative would inaugurate the San Carlo He also has. the. required wit. to and the amazingly exotic pagan as the Kansas: dean and Lulu’s find itself, and it didn't a broader sweep and more com- singer along. I fancy that Miss sequences, soupy pop song and season was bound to arouse as he has demonstrated on Thera was always love tryst in her private chapel. father. some constric- plex emotions: Schubert’s Steiger needs to relish her own unmelodic aria while the anticipation. And. in the event, countless occasions. But De tedness in the All that remains of Falconer is Mr Jones is one of the authors upper half of her “Junge Nonne" and "Wolfs sound more, and it would help audience huddles penitentiallv the production he created was Simone's direction seemed to range, and a “ * a brief impersonation of the of the Sloane Ranger Rerue. worrying want of Geb, Geflebter were pallidly if her accompanist did too. on wooden pews. interest, constrain him. He was impec- sidekick Gantry replaced but, If he was here aiming for the of unquestionable — cable. but. strangely dull. The central point about out of context Mr Brown has evangelical equivalent he may though it was also perplexing and not entirely successful. Against the suitably vehement Gantry is that concupiscence also struck out Bishop Toomis, have succeeded: his show is With his regular collaborators Ford of Leo NuccI, Bruscantini's Oriental treasures and ambition, linked to a Gantry’s Methodist inspiration. trite, easy and unremarkable. Trio Atalanta/Purcell Room Mauro Carosi (sets) and Odette character picked up some vitality; Nicotetti (costumes). De Simone but it was lost again in for Washington created a rustic frame, a vast, the last act, where he should Dominic Gill have dominated and did not. dilapidated ' bam, presumably The Smithsonian Institution The others were all accept- The members of the Trio and began it with two rarities somewhere in Southern Italy, of Washington, DC, has paid able. and for the most part the Atalanta, two from Hungary —early Shostakovich and early with a title makeshift stage in stern conducting of Daniel Oren and one Austrahan-bom, Rakhmaninov. Shostakovich's S7m for the Vever collection of Che centre,; a few kitchen all kept the complex ensembles resident in Britain, met rather chaotically full-blown oriental miniatures and manu- chairs, bales of straw. two together. Frank Lopardo should years ago at the summer school Trio no. L dating from 1923. scripts. It is the most signifi- As a stage-picture. It was “ be specially mentioned for his at Prussia Cove in Cornwall: is not yet characteristic,” and cant purchase beautiful, and the movements in the history affecting Fenton; and Alida Monday night's recital their as full of wild switches of style of the singers, from the tittle was of the Smithsonian. The deal Ferrarini shone as a sweet, London as wild switches of direction: platform to other parts of the debut was arranged by the London bright, touching Nannetta. fun. and interesting. RaKhmanir real " stage were cleverly They are an unusually well- dealer Michael Goedbuis. Oren, the new permanent con- nov*s smoothly full-blown worked out. But still, the acting matched ensemble, close-knit ductor at the San Carlo, has got chaikovskian study—his Trio Vever, a Parisian jeweller seemed cramped, the laundry- warm toned, full of individual the orchestra playing well (they elegoique of 1832—-is almost a who died In 19)8, hamper joke misfired, and timbres. The violinist Susan was one of showed what they can do last pastiche of the great Chaikov- the leading collectors of his there was no room for Fal- Meszaros makes a thin but year, with Muti’s Macbeth ); now sky Trio, and contains not a age. It was feared staBLan boisterousness. But, attractive sound, sweetly tuned, that his he could relax a bit and allow single bar of pure Rakhmani- collections were lost In for that matter, there was no easy of phrase: Pal Banda’s cello the them a more Mediterranean nov: fun too, and though less Second World War but his un- boisterousness, no knockabout is big robust, full of glitter; mellowness. original than the Shostakovich, rivalled of comedy in this production. the pianist Leslie Howard is group Japanese more commanding. prints suddenly re-surfaced, to True. Falstaff has a melancholy- inclined (as he is in his solo be sold at vein running through it; but it Sir John Tooley playing) to the broad splashy They gave late Mendelssohn Sotheby’s In the mid- is not the only vein. Eliminat- gesture but his playing has next: the delectable C minor 1970s. His 360 Persian and — manuscripts ing the traditional broom in the appointment irrepressible energy and Trio, which of all the late Indian and minia- have Act One scuffle is no great loss; Sir buoyancy, and the sensitivity of Mendelssohn chamber works tures not been seen in John Tooley, general public since but were, but in the last act, before Fal- director of the Royal Opera a born chamber performer. brings to mind Schumann’s 193L “ 11 staff cries Ai!" somebody has famous words 19th-century apparently, in the possession of House. Covent Garden, bas been They ended their programme a descendant. to hit him. Here, he was un- made an honorary member of a pinnacle of reper- Mozart," delivered here with with the touched. the Royal Northern College of tory, Beethoven’s Archduke; poise and point and easy grace. A.T. Elisa Richards, Mark Ryan and Simon Green For the rest, the third act Music.
Musle/Monday. Opera and Baflet/Tuesday. Theatre/ Experimental theatre favoured Wednesday. ExfifeWona/Thuwday. A selective guide to Jan 10-16 Arts Guide afl the Arts appears each Friday. for Arts Council subsidy
The Theatre Enquiry, set up mouth Theatre Royal, the aid Brenton far the National Thea- by the Arts Council the 42nd Street (Majestic): An immodest under Bosh, the Royal Court, Hull Theatre tre in which an unscrupulous Sooth NETHERLANDS chairmanship of Sir celebration erf the heyday at Broad- Kenneth Truck. Shared Experience, African magnate acquires Britain’s Cork, is shaping up as the Monstrous Amsterdam, Smkerbof way in the ’30s incorporates gems Regiment, the LONDON most preshgions newspaper. A Jcm- Theatre (Prin- harbinger of dramatic change Chichester aengracht 381). ’Songs from the original like Festival, the Chur- EC sonian satire on the grand scale to nuke yon for British theatre, and Sir chill sing and Off To Buffalo with the appropri- Bromley, and Welfare Noises Off (Savoy): The funniest play with an irresistible performance by Jokes to make you weep* in Kenneth Wmrfa ately brash and leggy hoofing by a was adamant yester- State. They will for years ip London, now with an Anthony Hopkms as the colonial an evening of 'Hmf fjflp also accept large chorus line. (9778020). day that he expected any pro- evidence from unproved third acL Michael Blake- who presented by the Hall family (Ted,* anyone -in the penetrates the Establishment posals his committee came up theatrical wortd nure’s briffiant direction of back- while a nation Tbmj- (227571). Brighton Beach Memoirs (48th St): who wants to dithers. (9282252). with to be implemented by the maice a “ stage shenanigans os tour with a ThS InsMliiiWntlt ofnf Nefl Simons case, as well as from Arts Council. the third-rate farce is a key factor. Guys and Dolh (Prince of Wales): The mix of memories and jokes focuses commercial theatre. WASHNGTON It could mean a new set 1882 National Theatre production on a Depression-era Jewish of (8368888). house- Apart from wanting divert has arrived In criteria by which the Arts to Starlight Express (Apollo Victoria): the West End, if any- In ftptdof hold where young Eugene falls awk- resources Flight (Kreegex): Bffl ir- Council hands out subsidy. from old clients Andrew Lloyd Webber's roBerekat thing improved by the new casting wins wardly in love with his cousin. Sir theatrical spoof ^wws off the towards theatre companies that ing of Lola as Mis Adelaide and the Kenneth, a respected accoun- fbUy has 10 minutes of Spielberg mime’s talent in confronting a man- (m mi). gamble (and notably well tant. does not envisage any sometimes fail) movie magic, an ewafing fast sung black Sky Master- eating stage curtain and a disap- A Chorus line (Shubert): The longest- worthwhile j«r Kenneth is also against the nnri & dwindling reliance on son of Clarke Peters. Richard Byre’s increase in Govern- pearing shoe on the quest of a new running musical ewer in America idea of spreading indiscriminate production and Gunter's affec- ment grant to the Arts Council misery thinly, rashiog mound. Dis- John theatrical genre. IZ Ends Jan. Arena bas not only supported Joseph in the immediate wwe are neyland, Star Wars and Cats are aD tionately lavish designs complement Stage future. So it r insufficient funds (4883300). Rapp's Public Theater for eight remains a question theatre to influences. Pastiche score nods to- this most joyfiil and literate of of priorities get the grant Restoration (Arena): Edward Bond’s years but also updated the mnwii wards rock, country and hot gospel mumcals, « fitting tribute to the re- — and he favours devoting there should not be, combination of contemporary poli- genre with its backstage story fa a z per Kb child is known to have asked for cently deceased co-librettist Abe money to the new and the cent cut for every- tics and 18th-century high Jinx with which the songs are used as audi- some his money baft. (834 8184). Burrows (9308881). experimental at the expense of should he much music by Nick Bicat is directed by tions rather than emotions. encouraged, 42nd Street (Drury Lane): No British theatres and drama groups that others cut bade The Torch Song Trilogy (Albery): Antony Sharon Ott of the Berkeley Rep. (239 62W). equivalent has been found for New receive cash because they have ^Council will11 welcome thein* Sher plays Harvey Berstein’s four- (4883300). if York's Jerry Orhach. but David Mer- La Cage aux Fofles (Palace): With always been Arts Council •ineatre Enquiry’s hour triptych of the life loves of proposals and some tuneful Jerry Herman clients. rick's tap-dancing extravaganza bas . a drag queen fighting *mnHf\na) lor *SUUJVon* for Other besi rapturously received. Ameri- and domestic NEW YORK members of the changes will have stability. Truthful film manages, barely, can Clare Leach is real find as French to cap- Theatre Enquiry 61 a pfaying has the effect of cruelly ex- group are: * 00 10 an indepen' Peggy Sawyer, Margaret As Is (Lyceum): The first play about tore the feel of the sweet and hilar- Hugh dent, E? and posing Rerstein’s tackQy Uneven Hudson-Davies. a but expert, body. Courtenay has a field 8108). AIDS makes -gestures toward the toss original between high-kicking management day (838 writing. (8383878). consultant; the whole af- . and gaudy chorus numbers. the the Me and My <3ii (Adelphi); Steek, effi- community the disease actress Diana Rigg; the critic time tone): Unconvincing stage reviv- fects focuses (7572828L report* the # cient and enjoyable revival of Brit- and effectively on foe Michael Billlngton; the theatre damage al of Inner and Loewe’s film fol- victim lover; but Not Rappoport (Booth); In ain’s biggest war-time musical hit and his protective Fra moving manager Peter Tod; and Clare J™*® ^ the dis- low-up to My Fair Lady, Beryl Reid also has Broadway, Herb Gardner's of with Robert Lindsay in the Luplno this Crete Rep production to touch- Venables, the director of the u,e Mets will rising inimitably above the materi- sod invigorating Lane rote emerging as fl* best new distracting artistic touches to patch ing. funny play Sheffield Crucible. They win closed o tew musical star qi™*? MMmrf Craw- al, Jean-Pigfre Aumoot and Sian over the play's fade of dnetapmert about two oldsters retains its stars, such as the meet every month, and will Liverpool ford. Phillips lending more conventional once the disease is diagnosed. Jndd Hirscband Cleavon Little, who Sir (8367611). present a report by next Kenneth .sees Banunn (Victoria Palace): Michael support John Dexter directs. Joce- (2396200). - almostconquerthe world when they 111 the September to enable the Arts idea of Govern- Crawford returns to London with lyn Herbert designs. (437 3888). think they are just bickering with nt Cats (Winter Garden); StiQ a sellout Council to introduce changes legislation forcing succes- hi* breathtaking performance as fennon (Astoria): each other. (2396280). sor local A not too critical Trevor Nunn’s production of T. S. for 1987-88. authorities to the circus impresario, adding or (O'Neill); devote one celebration of the life hwh music Eliot’s children’s to tren- Big Bfrar Roger Miller’s mu- Apart from of poetry set the monthly Brt5 ““e of money two new tricks in a likeable me- John TrfUfhi i t rescues this sedentary version of that is eqjoyabte espe- dy music is visually startling and sic meeting the members win »h “*** ringue of a musical. (8341317, credit Buck Finn's adventures down the Sained from dis- dally for the musical resoureefUJ- choreographiceily feline, but dasfle visit a number of representa- US’ the cards 8284735). ness Mississippi, winch walked Off with appearance of the of the cast and Mark McCann’s only >n the sense of a rather staid tive theatres, including the Mets Pravda (Olivier): Entertaining epic Lennon many 1935 Tony awards almost fay look-and-eound-allke. and overblown idea of theatricality. Coventry Belgrade, the Ply- new play (2460220). hy David Hare and How- (7344287). (238 6282). default Antony Thorncroft ^
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Financial Times Wednesday January 15 1986 TECHNOLOGY EXCLUSIVE SCOOP Geoffery Charlish on an optical information signals device
DC. Bm&xt Signal Vtotege Scute Intensity Signal for a faster circuit Modulated CONSTRUCTION Light Out c- EQUIPMENT TEAMS AT the Plessey Com- morrow’s communications a gallium arsenide block which can be made to "jump “ from pany laboratories in Caswell, systems. has been made by diffusing one waveguide to another in a Northamptonshire, are on Within the computerlike titanium into the surface. This device constructed from the way to developing com- Systems that handle the signals, gives tile channel a sharply lithium niobate. The guides run mercial devices that will allow electrons travelling relatively different refractive index, caus- very close together and - are Progress optical Information signals to slowly in lengths of copper ing it to guide light down its enclosed by electrodes which, he handled and processed might take too long to move length, just as a fibre does. when supplied with a suitable as easily as their older- electrical pulses from place to When metal electrodes placed voltage, will allow cross- In US on established electrical equiva- place, so that switched light to each ride of the channel axe switching between the two lents. beams travelling at 300m subject to a voltage, the speed channels. Dr John Bass, director of metres/sec will have to be used of the light wave can be in- A similar system has been fuel cells research, expects samples of Instead. creased and reduced. developed by Ericsson, but it THE LOS ALAMOS labora- the devices, which are the re- Teams at the University of produces switching between two sult The modulator device consists Light In tory of the US Energy Depart- of Plessey private venture Arizona and at Heriot Watt input output fibres of two such channels, fed from and two by ment reports good progress projects, to be on the market University in Edinburgh are altering refractive index on joined at light the fuel cells, th' F summer. hoping the fibre and the ’ with work on to speed computer - lithium input and output ends. Incom- the surface of the battery-Uke devices which, Optical fibres have been in operation by at least 1,000 times. niobate. use for over 10 yean in com- ing light divides and experiences when made commercial, will u»»i 1 The Caswell researchers are a _ in 'each channel paper given by provide useful alternative i-. munications systems ranging different delays A two mainly interested in finding from national telephone net- due to different voltages which researchers, Rosemary Impressing Information power sources, particularly ways of carrying out established works to military aircraft represent the information and Martin Goodwin, in the 1985 for propulsion. communications functions opti- Caswell Review, deals cells are cabling. But although the in- Annual on a Light Beam Basically, fuel cally. For example, informa- devices which can turn formation is in the form of light Wben the light unites again with work aimed at producing tion has to be impressed on the chemical into electri- while It is transmitted from at the output, the two signals the optical equivalent of the energy light beam, requiring devices logic circuits- cal energy but which do not point to point, it is processed are not in phase and the output present on almost called modulators. Streams of every semiconductor chip. need re-charging like at the two ends of the line, light intensity waxes and wanes data from several sources at can switched batteries. and often at places in between, in sympathy with the informa- Such circuits are at the heart Any such “bistable ” device and “OR" gates can be be between two once often have to be united chemical applica- cell nut on by conventional electronic tion voltage applied to the elec- of computing, allowing binary developed for the very high fabricated, operating in the forms by the The Los Alamos into a single signal, an opera- wood alcohol. This is first circuits—the same as those in trodes. The output light gets logical processes to be carried digital pulse rates encountered case of lithium, niobate tion of light tion carried in a multiplexer. converted to hydrogen aril systems using electrical «^gnnig brighter and -darker extremely out. In Unary arithmetic, there in optical systems will have to materials in 50 billionths of a Apart from logic circuit fight signals have be carbon dioxide. The hydrogen down copper cables. Or may to rapidly, in sympathy with the are only two numerical be very fast At the Plessey second. Devices several applications, the technology is switched into different fibres to times quicker than is run over platinum which Apart from the need for con- signal, which might be any- symbols, 1 and 0, and any laboratories, devices have been thousand expected to be applied to image send them to different places. has been deposited on very version between the two kinds thing from thousands of multi- number can be represented by a developed based on several this have been produced in processing since, according to fine carbon particles. of signal, it is also clear, with To modulate, light from a plexed speech channels to high string of them written in the materials -which will produce an other materials like carbon the laboratories. It can be used the very high information fibre, the basic electro-optic speed computer data. correct order. So devices having output, or not, according to the disulphide. to address all the picture The gas gives off electrons capacity signals fibres are able effect in a light waveguide is In another device produced only two states—“ on " and presence or absence of two Work is also in progress on elements at the same time to generate a current In an for to carry, that purely electronic used. The waveguide consists by the Caswell team, which 'is " off,” representing 1 and light inputs of particular bright- logic devices using photo- rather than sequentially, as in external circuit in which, example, electric motor circuits will be too slow In to- of a channel on the surface of headed by Mr lan Bemrion, light 0—are used to compute. ness. The well known “AND chromic materials—those that present systems. an might be connected. The system continues to work as long as it Is supplied with TRAVELLERS foe train at the station serving from the UK alcohol and the only bypro- planning to see Australia foe Woomera rocket range. by duct Is water. train are being helped on their Take light pen . . . see Australia by train Thomas Cook sees its Rail- a and A potential drawback has way by one of the most exciting ways of Australia system as the been foe coot of the platinum, developments in information Such a man Is Mr Derek travel agents or Cook’s own Now the timetables have built for a club of financial chosen from a calendar painted first of a series which it intends but the laboratory baa technology —the expert system. Townsend of Thomas Cook, the; offices, are funnelled through given way to a personal com- institutions which is intended electronically on the screen. to install to store and make recently found ways of reduc- world's largest travel agency. Mr Townsend’s department. puter, an IBM XT, and to measure the financial health available its vast hoard of know- An offshoot of research into PC To some extent, this could ing tiie amount needed. His knowledge of the Australian travel information appears bn of companies. ledge about the travel business. artificial intelligence, expert He has a small team at Cook’s be done using conventional data railway system, built over the screen in response to judi- systems make it possible to headquarters in Peterborough Ease of use was a prime con- processing techniques given It was written in Prologue H, "more years than I care to cious prodding with a “light Grid capture the experience of an which deals with day-to-day in- sideration in developing foe an automated timetable; the ex- a computer language with its Compass remember.” as he puts It, is pen.” hand-held pointer. authority on a subject and main* quiries regarding departure and a Cook system. Every query starts pert part of the Cook system rules of operation based in v/: unrivalled. THE COST of a Grid Com- t ./ -• V it available to the lesser quali- arrival times, itineraries and so The system was built by with a coloured map of Aust- is foe way it searches for infor- formal logic. pass personal computer with fied. That experience is Invaluable on. The team used to spend its Thomas Cook in conjunction ralia on foe screen showing the mation in the files in its Thomas Cook has a long electro-luminescent display Is to Thomas Cook. It is the •time thumbing through volumi- with Expert Systems Inter- railway system in diagrammatic memory mimicking the methods record of innovation in applying more than £5,000 and not, as +*** They have aroused great jeral sales agent in the UK nous timetables to provide national of Oxford, a leading form. built up by Mr Townsend- technology to foe leisure yesterday’s Professional Per- «mc interest in companies which see Railways of Australia, which Information In response to tele- artificial intelligence organisa- Routes are planned by touch- It slips in information that business so it is perhaps not sonal Computer column advantage in surprising that it being able to. means that all inquiries and, phone inquiries, calling on Mr tion. ing the tight pen first on the does not appear in the official moved quickly seemed to Imply, C&295. The archive 1 the knowledge and bookings; whether from British Townsend when his expert Its other projects include point of departure and then foe timetables; without a pass, for in a new area. confusion was due to a trans- experience of expert staff: Rail. British Airways, other knowledge was required. Alfex, an expert system being point or arrival; dates are example, people cannot leave ALAM CANS position erne. Cellular radio capacity problem
CELLULAR RADIO, the from cell to ceD. cell co-ordination and signal successful new method of As a result, the system interference. It can cope with mobile telephony originally accommodates many more cus- them, but argues that it cannot hailed as the answer to the tomers than conventional mobile take foe process any further. capacity problems of traditional radio. The limited range of the Mr Evan Richards, vice presi- mobile systems, is running into low-power signals means that dent of engineering and similar difficulties of its own. foe same set of radio frequen- operations, says that the effects Id the US, some operators have cies can be mused in non- of another reduction, to a found their systems are filling adjacent cells. one-mile radius, would be too up far quicker than expected This is fine in theory. But serious. because of the uneven distribu- users and traffic tend not to be So Ameritecb, tike foe UK tion of telephone calls. .evenly distributed between the operators and others In the US, Xu the UK, the two national cell* This is causing particular is pressing for more frequencies cellular operators,' Racal-Voda- difficulties for the Chicago to be released: At the moment; fone and CeOneL couU 'firi' system, which has signed up US operators axe each allocated themselves in the same posi- 23,000 customers since October 20 megahertz' of frequency tion. The UK now has more 1983, when it became the first spectrum. They are calling fair than 40,000 customers, hut US cellular radio network to another sic. "If we don’t get nearly 70 per cent of them are launch commercial operations. them,” says Mr Richards, “we’re In the London area. The The busiest cells, in .the In trouble.” The Federal operators estimate that each of downtown financial district and Communications Commission their systems could accommo- near O’Hare airport, have fFCC) is to allocate further date about 80,000 users in the traffic nearly six times the frequencies within two months metropolitan districts and that Chicago average. At one time and has indicated that it might this figure could be reached last year about 5 per cent of meet the operators* wishes. r calls In these areas were faffing within three years. Both are But the outcome is uncertain. to get through, compared with lobbying the Government for First, there are several other additional frequencies but the a 2 per cent target contenders. most suitable ones have already In an attempt to combat the number of been earmarked for a pan- A comntissionen problem, Azueritech, the former are also believed to be sceptical European system. American Telephone and about the claims of Ameritecb A cellular radio system works Telegraph subsidiary which and the other operators because the system, by dividing the coverage area, owns has "split" the FCC was originally told that for instance a city, into small some cells into smaller units. increased demand could be met zones, or “cells,” as little as The radius has been cut from through cell-splitting. Several one mile across. Each contains eight miles to four and in some experts agree. They say that cases to two. a low-powered radio transmitter This has allowed It is not extra frequencies that restricted - operating on a fixed set of fre- the -number of are needed but more sophisti- frequencies ro-uSfed-siQre quencies. Users, and in the early to be cated, and expensive, cell- & days of cellular radio that often, thereby increasing fob *p£ti$ng. techniques. They means drivers, are automatic- system’s capacity. accuse" “foe industry of trying ally switched by computer from Ameritecb says, however, that to grab the cheapest way out. one set to another as they pass this has created problems of NEIL MeCMTNEr
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15 1986 8 Financial Times Wednesday January
THE MANAGEMENT PAGE EDITED BY CHRISTOPHER LORENZ
UK financial services Labour relations fo freedom A Sidestepping the ‘Big The limits of Bang* David Tliomas assesses tbe changed climate
David Lascelles on Hambros’ decision to avoid following the herd on deregulation grouping tasks MANY SENIOR industrial re- ing grades and categories. lations managers in Britain into broad job “ MIXED " 15 the most years, when the bask might Believing that many of the For starters, Hambros ex- their trade in an age 1960s and 1970s. by learned In the . appropriate -word to describe not have survived at all but best ideas were coming out of pects to write mortgages on when unions were a major contrast, productivity deals the reception which London’s for Hambro Life (all that the US, Christopher Sporborg, about a tenth of the £lbn worth force in the balance of mare often took the form of financial community gave to the is left of those sorry times the chief executive in charge of houses which Bairstow sells industrial power. That the screwing better results from rather surprising announce- is one rusting tanker in a of non-banking business, visited each year. This flOOm of loan situation has since changed workers doing ever more ment from Hambros late last Norwegian fjord written down Sears Roebuck, the Chicago- business — safer than lending radically is now presenting tightly defined jobs, an approach year that it intends to spend to below its scrap value). It also based retailing giant which has to Latin America or shipping them with the need for a major which militated against flexi- £55m on buying Bairstow Eves, arises from the close control branched out into financial companies, Hambro notes — re-think. bility. one of the UK's largest estate exerted by the Hambro family, services. investigations 1960s and 1970s His should add about £lm-£2m to In the • Working time. Managers are agents. stable bargaining and con- whose 49 per cent interest is there showed that one of the pre-tax profits (operating pro- reacting to demands for cuts in British arrangements with the merchant banks are protected by a complicated richest sources of new personal fits were £12Bm last year after sultative working time with new working not, it must be said, readily share structure. This has financial business was not tax). unions were a top priority. The which use capacity employees patterns associated with the activity of created the impression that Sears’ banking or stockbroking Being a merchant bank, welfare of individnal more intensively- selling houses in the provinces, while the bank's policy of ventures, but Coldwell Banker, Hambros is unlikely to keep was important too, partly in an The approaches adopted especially when they boast one bringing in fresh blood has its estate agency subsidiary. these mortgages on its own attempt to reduce "wild-cat rearranging shift of the most blue-blooded names produced interesting new faces to strikes,” now an almost defunct include "You get your client’s name books, instead, it hopes cut (whereby . workers in the business. And Hambros, at the top, less may have other deals by passing the loans phrase. contracts on file; you know what his workers and annual hours only recently recovered from changed underneath. oat to other banks, or packag- The economic environment m longer hours during earlier Ul-starred ventures Into All this gives Rupert ing the mortgages into securi- which managers operate now is work of peak demand shipping and energy, has not Hambro, the chief executive, for sale in the nascent radically different. New tech- periods ties hours during slack always been known for getting who took over in 1983, the secondary market That would nology. high unemployment. and shorts it right when it suddenly burden of convincing the out- clear Hambros' balance sheet Intensified international com- times). branches out into something side world that his bank Is not and make room for new mort- petition, phis a Government Other working time fashions, «iaims new. only changing; but knows where gages — and add as much as unimpressed by union to like flexitime, have fallen out On the other hand, it is going. the real are this Is a £5m in new profits. be an estate of m , of favour. Flexitime, Brewster time when all merchant banks “ We looked at the City among the differences. write, "provides The deal should also provide and Connock are thinking hard about their Revolution, and we didn’t like These changes would go for employee controlled flexi- an outlet for Hambros* insur- future. Some see it in the City what we saw," he says at the almost without saying, were it organisations in the ance, investment management bility — Revolution, the epoch-making bank’s well-preserved 1924 not for the fact that much indus- 1980s will require such flexi- deregulation and legal protection services, of the Stock headquarters in Bishopsgate. trial relations practice, and bility to operate more in the Exchange which is likely all adding up to a neat fit — at — to where the senior executives even more industrial relations interests business.” least paper. of the reshape UK wholesale financial still work in one large panelled on theory, has been slow to catch people services for a generation. room. " We might miss the odd Rupert Hambro resents the up with them. • Reward systems. How are paid is increasingly a Others, like Hambro, see it picking by not doing anything implication that this big plunge Chris Brewster, an industrial function of how they ore per- elsewhere, more at the con- now. But we’d rather put it on into the retail market means relations lecturer at Cranfield ceived managers. Manual sumer end of the market. Time the backburner until the that Hambros has turned its School of Management, and by workers are being paid more if could prove them right, picture becomes clearer.” back on the City. He points Stephen ConnoCk, an industrial they acquire more skills; merit Hambros may have lost millions His biggest worry, he says, is out that after the recent relations manager with Philips, Trevor Humphries pay is a more important part (Hi Norwegian tankers and US capital “Are the banks that are capital injection, Hambros now the Dutch electronics group, .ill “ ” of white collar workers’ oilwells, but it also has to its going into the new markets has more capital invested in Rupert Hambro: ... we dUnt tike what we saw have had the bright idea of writ- salaries. credit one of the most far- really big enough to compete its banking business than ever ing what is in effect a personnel sighted investments ever made with the likes of Nomura before. textbook for the Less clear than these new 7” of a larger group, we have got of change must go further: management hi the City: Securities and Merrill Lynch The group has also hired priorities is whether they have Hambro Life, an to have our specialisations.” more new ideas and new modem age. re innovative life insurance com- Hambros, he felt, was not. At some big names to boost its says Padovan. "One of them people, and possibly a Change Brewster and Connock reckon become welded into a new pany, which transformed £lm the end of last year it had standing among the moguls of will be a top class and atten- in the share structure to make that managers are now much management culture. The invested in 1871 into £200m by shareholders’ funds of £193m, the corporate world and tive advisory service.” it easier for Hambros to go to freer to push through their own notion of "cost-effectiveness” is i'll the time Hambros sold it last which makes it smaller than all needs are, and you can tom Whitehall. They indude Sir Padovan sees a larger role the equity market for more strategies, a freedom of too vague to be of use. year after the two companies the independent merchant that into business.” Balrstow Adam Ridley, the former senior for development capital and capital manoeuvre which extends even Take the unions as a touch- had decided to go their own banks such as Kleinwort Ben- Eves was an obvious potential Treasury official who has spent wants to get Hambros more in- Takeover rumours have to the unions. " Increasingly stone. At times, the authors way. (Hambro son, Hill Samuel, Morgan most of Ids time since joining Life, now re- partner: it was the first UK volved in equity - related swirled - round the bank in re- they write, "managements are write as though a hallmark of christened Allied Dunbar, was Grenfell and S. G. Warburg estate agent to go public, it the bank trying to sort out the financing for companies that cent months. Rupert Hambro now moving away from ad hoc the new personnel approach is featured on this page on Which have taken the plunge had the second largest branch tin crisis to which Hambro has are Changing hands or expand- insists that the surge in the reactive responses to the unions to by-pass the unions through. December into City revolution. 19.) the And network after Black Horse a small exposure. ing fast. share price—of a good third towards a process of managing for instance, new forms of direct But while there are many it is a midget compared with Agencies (interestingly, also There is also John Padovan, On the wholesale side, in the second half of 1989 the unions in the same way that communication with their work- “pros” to line up against the the big international firms, owned by a bank, Lloyds), and who startled the City last year Hambros also was aspects the environ- force; but ft is still necessary to “ baa a 29.8 per triggered by institutional other of cons,"’ the fact is that Hambros (though that still leaves it at It wanted to expand both its by quitting the chairmanship of cent stake in Strauss Turnbull buying after a discrepancy had ment are managed.” draw unions in through better is still viewed somewhat the upper end of the UK mer- homes business and the finan- County Bank, NatWestis the stockbroking and Euro- been spotted in the prices of Freed from the constraints consultative mechanisms. askance in the highly subjec- chant bank league). cial services linked to it. merchant banking subsidiary, market dealing firm, which various classes of Hambro unions posed in the past, per- This may be because, as the tive world of City opinion. The In mapping an alternative to become executive Talks started last summer, a Hambros gives it a foot in the securities shares. "We’re not looking sonnel managers are, however, authors suggest, managers have act of acquiring' way forward, Hambros had two director. Padovan u estate and ended with a deal which has been markets. But there is' no plan for an offer, we have not had hemmed In another set of to create a more complex cul- agency might score points in points to consider. One was that advising Imperial % a leaves Balrstow Eves executives Group in its to increase the stake, and one, and we don’t expect one,” pressures—those posed by tbe ture than in tbe past: they are business where originality is through Hambro life it had threeway takeover tussle with with a 20 per cent stake in the Strauss is not a Big Bang-style he said. recession. As a result, Brewster at time paternalistic, at times deemed a virtue; but instead established a strong place in United Biscuits (friendly) and company. “We like to be part- securities house, with a large As for the suggestion that and Connock say, industrial hard-headed pragmatists and at Hambros has been accused of the consumer market—possibly Hanson Trust (decidedly ners rather than owners,” says underwriting business, so much Hambros has moved down- relations departments are now time open-handed consulters. "opting out” of the City, and stronger than any other City hostile). Rupert Hambro. But his job is not, as niche player. market. he agrees that that is haring to pursue cost-effective This shows an admirable re- even of squandering the pro- institution. The other was to as widely thought; to run Hambros in 1986 is certainly fair comment "But does it strategies on the issues facing luctance not to riaiin too much ceeds of the Hambros Life sale mate the best use of the pro- Now the deal is done, Hambros' corporate finance much changed from the bruised matter? Hambro Life took us them. These include: for their theory. But it also —accusations which the man- ceeds from Hambro Life—or Hambro speaks of "the other department (that belongs to institution which had to sell downmarket—if that is the Work flexibility. The dissolu- hardly mates for a memorable agement of course, rejects rather, the fraction that was revolution” that is going on Michael Sorian), so as much part of its Hambro life stake word—many years ago. And is tion of demarcations is the key encapsulation of present trends. with some vigour. outside the City: the in left after the taxman had taken boom bring experience and clients fo in 1983 to keep its head above it better to go with Big Bang productivity breakthrough that Industrial Relations: Cost- The tendency to disparage his bit. and the good portion housing, personal flnauclal ser- the bank. water. But there are people with all the risks, or seek a many companies are after in the effective Strategies, by Chris Hambros’ efforts stems partly that had been used to boost the vices ami tiie growth of private "We have to realise if that including some within the bank future where we believe we 1980a. Brewster and Connock Brewster and Stephen Connock, from the unhappy past five bank and retire debt. share ownership. we’re not going to be part itself—who feel that the process can maximise our returns?” reckon. This means amalgamat- Hutchinson, £7.95.
Company Notices '••••••••••••••••••••••••••••••••••••••••••••••••ogoaBoogaaoogaaoggagaoaaoodaooaaitogggoaoa A FINANCIAL TIMES
SURVEY New Issue FIVE ARROWS FUND N.V, This advertisement appears * EstabKhed In Curacao January 15. 1986 *« a matter of record only, (Natboriandi AittnaU THE YASUDA TRUST AND VEHICLE BANKING COMPANY, UNTIED fr mupuremHI
< USSMXXUNO 3"sjsls; CALLABLE NECOTIMILEHjOATMG FLEET RATE DOLLAR CSniFICATES iSs -fssraH-a, OF DEPOSIT 1.986 at lO.QO, o'clock In tfi* forenoon (local tunc* at the oftcM oF tee Conway, NacF0b0784 co 000793 fl Jolra I. Qnlmxt. Curacao (FLA.}, tor hmedon I4MnNty MANAGEMENT tiw Knotting parpens: I9BJ 10 1, To tmtoatbc Article* of Incornoration. ftariy Owe KOnary I NT 2. TO authorise the passingJ tM a*mhifl cpOaaBjr cdUata In Mruiry t9M o* tfie dead of aroendm NOTW B HEMWf ki MONDAY FEBRUARY 10 MdMidMCntMrfDankMcOVSN dm Mortem XMtoca-) tbm Yeadh Tree and BaAfcg 1986 Comm* Umm fte 0e*O nR paper on Ostotoa II hben IMS a nmata Ciifi—i. DC Inspected te HI d Ofle* of. tee Company — — - - hmraumdit information offices of Its agent banks, vtx- N. M. For further iuw RothseNk) AM sons Limited. London ha ddn norske stats pferson. ehhaormdlamrwl Den HeWriAa A Pierson N.V_ Amster- oljeselskap a.s please contact: dam—Pinoa. ReMrina & Plorsoe (Cura- Fteniary I1M wm P cao). N.V,, Curacao — Sanqae Bruxelles deCadOMBemc Lambert SA, BnnnHi — BuoDC Prime Stavanger, Norway COLIN DAVIES iftteSB&arsaL amhnUMreqlRL on 01-248 8000 Ext 3240 Holder* or registered shares. soaD be THE YARJOA TRUST AND entitled to vote at. the meeting In person g^^ BaNKsac oorvww. urmo FINANCIAL TIMES oe presentation pf their snare certMcates nr or of a toucher, given by pay of the LnadaaECIM)W> UJmaryms Europe’s Company** agent ng-SU ne»«* in respect Of tht numtarof i U.S.$ 125,000,000 t Kn|T ^^55hEL S MAMiweramop specWeg «n . tM1 . IdDCftV tWW INM^nuALSUCnOKOLEAWKS Easiness Newspaper deposited wttti such agent, (unic .and will _*— 11—nh IrfMMnur* remain U> oeposJt mu the end or the Vdvta* mkM3S»7uki The . MMiauluJ- nireraor N5XRQL£OS MEXtCAMOS 974% Bonds of 1986/1996 #*tric US* 75,000,000 Hooting Rate Notes due INI Notice is hereby given that the rate U>] of interest for the period 13th January, 1988 to 14th July. 1888 has Legal Notices been fixed at 8-4375 per cent per annum. Deutsche Bank Capital Markets Credit Suisse First Boston On 14th July, 1868 interest of Umlted United USS10.66448 per US$250000 nominal amount of tbe nates wiU v'W THE COMPANIES ACT 1966 bs due against interest coupon no. IN THE MATTER OF 10. GLOVER WWTWUyHIWTBBIW) Banque Paribas Capital Markets MwrH Lynch International Co. SWISS BANK CORPORATION Umtod & Morgan Guaranty Ltd IN CREDITORS’ VOLUNTARY INTERNATIONAL LIMITED Gold Mining Company administered by the LIQUIDATION Agent Bank Notice Ig hereby glvm that the Johannesburg Creditors of ttw above-named Company Morgan Stanley International Nomura Mining and are requlrod, on or before 28th International limited Orion Royal Bank February 1388 to send tfHrtr names and Umind addresses, with particulars of their Clubs Finance Corporation Group debts or claims, and the names and addresses of their Solicitors (If any), din Bn RtnuMotfEoutiMK* to the undersigned S. Brewin of Hall Salomon Brothers Swiss Bank Place Cottage. South Street. Havant. And. the others became or Corporation Union Bank of Switzerland Report Hampshire PCS IDA. the Liquidator M *stoe ter forth* quarter andod 31 December 1985 of _ from .10-3. 3d am. fSraco International Limited International Limited the eald Company, and. if so required «— (Ians, glamorous hottest**. (Securities) Limited notice in writing by the said flOdrehMS. 109. Reseat SC. 01-734 OS aaide tor, are. by their Solicitors or personalty, to come in and Egtill prove their Consolidated Mines T.imitpri Grot? Slid deist* or claims at such time end Bergen Bank A/S Christiania Bank Den norske Creditbank place as shall be specified In such Union Bank of Norwav Mata* 24 Odo 000 Art Galleries tiims of E0 CMB eocfi. My paid notice, or in default tfaareof they will og Kreditkasse be excluded from the benefit of Sparebanken -Oareter ary ABC Quarter P*ne manors distribution made before ouch debts mmJmd ended OKAIW 31 ere proved. KALMAN liMi mY. 178. Orpqip- !••••••« 8arePMa**ggggpgg« Duma. 30 Suite mOer 31 DoccrrS? ten Rowr. London. SW3. 01-584 7588. ••••••••••••••••••••••••••• M|M«Sggga|M|M####aMa4|# IMS 1985 S. BREWIN 20tit C BRITISH. PA INTINGS. Many Quanting igatem UvMmt maunpAcs would enhance tile beet museum Trosixoand 9th January 1988 J “ 1,w* M00-rri- 122033 183 no 305143 tWEETO* FTastcncn-Wf JU* 098 aw nM.ie '57.70 Con gior* trBMod R18A8 TGijaz RLooroOuced mem RI&BI R1&38 Svenska Average Odd pncorecaiwadgtlfo mats R2139Z Handelsbanken RS3M3 Contracts and Tenders NOTICE PURCHASE OF US$30,000,000 HaawrlalreeRha 9J% Bonds 1976 (77-66) a n R *«fanpOo»i of outstanding bonds MVWnbor«aiTBrR|462CI0i According to th* forma and condition* 2788807 3822451 6589 of tha above manrten.w i...., .it OK bands of tea remaining H W S , 2011471 3591508 si riots 4. 5. 8 12. 13. itTa"®? S5 U- ? 5 -ill 7*8178 - Add. Onwwn name 230W2 931794 INTERVENTION BOARD 1VI1I sseia FOR « cas.-affsaasr atr 1 “ 803079 ’* TteamnimgfuS 78? 067 1 Bfo 333 AGRICULTURE PRODUCE SbJSSuSLr ?MSm«1PS (121801 KM 733 (a) In Ute United States of America WaatefaMtacho Landssbank Tteteietlfemnan-agVteiiahif 0*863 SE335 1801*59 Gtroran train. Mp* ynn, Nordic Amort can Banking Corpo^ddJi.N^Yore* INVITATION TO TENDER (b) outside the United Straw ofAmutea — 87**83 682335 “ «* h ARcftuUMs rare in reams Oh. 3501869 European Investment Bank liaud bataw. Md oIRata of tfa0 banks Cold Haanjp WiMdoutsdte Landasbank Tenders are invited for the urgent supply of 16.500 tonnes Qironmrale 823 DM of Algamana Bank Nederland N.V. 363369 1268 277 common wheat flour to Sudan. States Dollar Bonds 1 Commontbank 38*841 183444 1 1 Vi% United of . 983, AkUengesallgchaft Warenov Gold Mam Lrowd 204884 563985 Crtdii Commercial 132818 331M0 For delivery on F.OB. stowed 1 1 da franca and trimmed terms to an EEC Due December 5, 990 Drasdner Bank AfetlangcMlIschoft port loading shall 1247887] commence no earlier than 13 February uirountralo und Bank d«r Ostarreichlarh^. e_ - Notice b hereby dven to Bondholder* tficrf Union Bank of Switzerland CTIseh8" Eporitaaaan 1986 and no later than 27 February 1986 for is days. Akti«ngMHacJ|alt led; London,os Purdiose Agentfor accountofsjdiBanl^ Kmtf g^^s^^Mi.'MaBassRSBaataBaaa The price for the supply and transportation U to costs of the purchased US$4,000,000 - principal amount of Bonds during the “ rBB0,M common wheat flour for the above tenders will be determined Wrt&Blntzh riT twelve monHi period ending December 5, 1 965. For and pi behalf of die Dowds on examination of the tenders which must be guhnit+ted by CafporeUo" noon amount such Bonds RSnasSSB" Limited on 30 January 1986 to Branch B (Cereals). Internal As erf Decanier 15,1 985theprinc^ of ramainmg S. G. Warburg and Co Ltd Market Division, Intervention 2“*.5P*d8 01 the series Seastnv Board for Agricultural Produce, m aredafibn was US$1 88,000,000. 1. 2, 3, 6, 7 in «. 28 which haw boon T * - 15 IT. Fountain drawn by ior01 and* ? M - 23. 2*. * .„ d per M nadirMot House, 2 Queen Walk, Reading, Berkshire SGI 70W. way aloo be paid ^ nd "« in future. K« Bresentod for redamplfon Telephone: Reading (0734) 588626 ext 368- Luxembourg, January 1 5, 986 iSJerawy iws Notices of invitation to tender together with tendering forms EUROPEAN INVESTMS^T BANK Stockholm. January 98 SVENSKA may also be obtained from the above address. HANDELSBANKEN 9 g . 2 2
‘ *”"» ... x
Financial Times Wednesday January 15 1986 mi UK NEWS <'> Of f, Peter Riddell examines the Thatcher Government’s disarray over Westland ‘ % Ford workers set to take Tory squall with all the features of a cyclone "NO ONE has emerged from it all ckiifni Mr Heseltine's tactics may 16, infuriated Mr Heseltine and vulnerable position when he got in- Pearce’s letter. of Mrs Thatcher's style of govern- with much credit,” one senior min- have been since his resignation. provided him with valuable volved in a bruising and wholly un- However Mr Britten’s future is ment ister commented yesterday as the Senior ministers not directly ammunition. necessary row on Monday over now closely entwined with that of Her critics argue that she ami Mr ; industrial action Government continued in disarray, in the affair believe that Similarly Mr Britten made a mis- whether and when a letter had been Mrs Thatcher herself, even though Nicholas Ridley, the Transport Sec- over- the Westland affair. At pres- all the main protagonists can be take to seeing Sir Raymond Lygo at sent to the Government by BAe. she has not offered much public retary, are themselves taking toe BY DAVID THOMAS ent, ministers can hardly put a foot blamed in part. Mr Heseltine is cri- British Aerospace (BAe) last Wed- Even though most Tory MPs ac- support to him in the past two days. main negotiating decisions over the right, at every stage being outma- ticised for having raised the West- nesday, however well intentioned cepted his explanation, they felt After all, she was fully involved in proposed Channel fixed link at the FORD’S 37,000 manna! workers fer by 900 to 306 and voted in favour noeuvred by Mr Michael Heseltine, land issue to a significance out of he was to wanting Sir Raymond that he h*rt made a blunder the key decisions before Christmas moment rather than consulting the took set to reject the company’s fi- of industrial action by 607 to 59L who resigned as Defence Secretary proportion to its size, and for hav- that some of the European consor- which raised questions about bis and in the muddle over the BAe Cabinet as a whole. nal pay and productivity offer and A strike at Ford would be the fust last Thursday. ing used toe doctrine of collective tium’s statements were in danger of political judgment letter on Monday. Opinion polls in the past two days vote for industrial action. major pay dispute in the current All this has left senior ministers responsibility for his own ends. fuelling protectionist sentiments in But many Tories argued last show toe public largely against Mrs Secret Party managers and senior min- ballots were held by the pay round. aver steel quotas, night that Mrs Thatcher would be stunned and.bewildered sind unable toe US, notably isters last night still regarded Mr Thatcher and in favour of Mr Hesel- individual unions this Yet these same ministers also week and the However, when the union nego- to counterattack effectively, and and nn^pmuTiirig the sales reluctant to sacrifice Mr Brittan not tine, with Tory support slipping: Brittan, Britten’s position as far from se- final results are unlikely to ftrarfo concede that Mr Leon be tiating committee considers the fi- this bas occurred only a few weeks prospects of the European Airbus. only because it would expose her to The worry of Tory MRs is that bas made several cure. Much may depend on bow to- known until Friday. Trade Secretary at the full blast criticism, also nal . meeting toe but result on Friday it may first after the Government believed that The fort of such a day’s debate goes, winch he will of the episode could mark a turning Yesterday, however, onion mistakes. They fed, that he, in con- lead- seek a further meeting with the it was beginning to recover both in trade department at such a delicate dose. because she cannot risk another point in the Government’s fortunes, ers said that the early junction with Mrs Thatcher, com- returns were company. internal cohesion and in opinion stage of the negotiations was bound resignation damaging her Govern- similar to the beginnings of the running strongly in favour mitted themselves too early to the of indus- Mr Murphy, of the ne- poQ ratings after the problems and to leak put Indeed, the scope for Mr Britton's Tory critics argue ment offer Mr Heseltine's depar- "winter of discontent" in late 1978, trial action. Sikorsky/Fist option, and were gotiating committee, said yesterday self-inflicted wounds of mid- Tnjwiptfargfomting about Mr Brit- that he has not been neutral over ture- especially given the latest rise in Ur Mick thus too sceptical about the feasibil- Murphy, national secre- that this is what he would RlffllTOPT tan's remarks which has clearly oc- the affair, initially favouring toe senior ministers admit that the unemployment and increase in in- tary for motors ity at the European alternative in in the Transport recommend. Now, everything has changed, curred is similar to the row over Mr European option and later the Si- whole affair has done the Govern- terest rates. The alternative view is and General Workers’ Union,, early December. the Ford is refusing to comment unto largely as a result of a series of un- Britten's intervention as Home Sec- korsky/Fiat one, as they believe ment considerable harm in the that it is just a squall like that last largest union in Ford, said; “The in- it receives formal notice of the final foreseen a7Vl imjntondpd misunder- This behaviour, and particularly retary last summer over a BBC pro- would be revealed by publication of shortterm. It has highlighted Cain- July but as one Cabinet minister dioattons are that many members result. standings and arguments, rather the tone of Mr Britten's House of gramme on Ulster terrorism. minutes of meetings on October 4 net divisions and brought into the noted late on Monday evening, it have overwhelmingly rejected the The company’s offer, which it de- than any deep-laid plot, however faimnnM statement on December So Mr Brittan was already in a and 18 as well as Sir Austin open previously private criticisms has all toe features of a cyclone. offer." scribed as final before Christmas, is Mr Jimmy Airlie, executive offi- for a two-year deal made up of a 3 cer in the Amalgamated Union of per cent increase cm baric rates for Engineering Workers (AUEW), said the first year plus an extra 2 per The plant where just one union member backed the European hid that 4,428 AUEW members bad vot- cent for around 10,000 line workers. ed in favour strike »nA said - of action An extra 4 per cent is cm offerfor IF MrMfrfouri HewJtfofl Celt iso* bying Friday's meeting at the plant, Mr Heseltine had nn- Mr Vic Grana, in the compo- Blohm from West Germany “Sikorsky has SlAbn worth of 1,961 against, with nearly ell AUEW radical changes in omrVrpg jyllk foft fuluyl iwting Royal Albert Had in London. til recently shown a lack of inter- site product department and 16 succeeds, then wffl be no future backlog orders, they make good returns now in. practices. consider toe lonctmesa of one Westland Is by for YeoviTs est in Westland's future. years with Westland, said Mr for Westland. helicopters and sell a lot of them. The electricians’ the EET- The second year of the is union "wilrt at the troubled largest employer, providing 7,000 “Six months ago be didn't want Hesefrme had subjected “the “Under the European deal With Sikorsky we would be offer for , FU, consulted its Ford members by 6 per cent without productivity Westland beficopter factory in jobs in its hefiajpter and helicop- to know. He tobfus defence bud- shareholders, the workforce and Westland will acquire three building the Black Hawk under secret ballot They rejected the of- strings. Yeovil, Somerset, west England. ter support divisions: The part gets were overshot and the heir* the defence needs of tills country board members from its main licence - a complete helicopter. He voted for the European con- six weeks have had a marked ef- to his bid for power. The future competitors in Europe," said Mr With the Europeans l don’t think sortium's rescue bid, L200 of his fect on the workforce and local on the back burner until the of the company is a minor issue Brian Gittos, a chief metaDmgist we would ever again build a com- eofleagnes voted for that led by people. The feefings are of deep 1990s. Until then, when the new to him." at Ycovfi. *Tt will mean the end plete helicopter," he said. Callfor Airports Sikorsky of the US, Fiona uncertainty and anger. breed of helicopters such as the Many workers fed that if the of our ability to compete." The workers’ stand against Thompson writes. The anger is directed at Mr EH 101, the Sea King replace- bid by tire European consortium Mr Gfllam said three of the the European bid has an anti- .The Westland oorheta over* Heseltine and his support for the ment, come along we would jnst - comprising Aerospatiale of European consortium groups French edge, dating, say workers regulation Bill out whelnringty bach the Sikorsky/ European bid. be drip-fed orders. He only acted France, Agnrta of Italy, British were in trouble, “Aerospatiale, involved at the time, to a joint Fiat phut and intend to make this Mr Makofan CBan, a senior when Sikorsky made Hs move, Aerospace and GEC from Brit- Agusta and us. We don’t see bow design project with Afrospatiak to local union official at the Yeovil why did he writ so long?" ain, and Mfwiyhwtit BSIkow we can gain joining It of Lloyd’s this week dear toe shareholders by tab- for in the late 1966s
By hw Owen THE GOVERNMENT is ejected to publish its »iTpryrt$ RjH later big PRESSURE on ministers to bring week, possibly tomorrow, setting Lloyd’s, the London insurance mar- out proposed legislation to privatise ket, within the framework of statu- toe British Airports Authority tory regulatory provisions intro- (BAA), which runs Heathrow (Lon- duced by the Government intensifi- Johan ic«4n i l-i* (Wsolldated don), and Gatwick airports, among ed daring the Second Reading de- others, Lynton McLain writes.
bate on the Financial Services Bill i Tbe Bill is likely in the House of Cnminnng last to suggest the le- -night gal framework for reconstituting Inve*imentis Group Mr Patrick Jenkin, a former the BAA as a company under the Companies 1. trade secretary who was sacked Act The Government (Ail companies mentioned are ncorparaied*» the Republic of South Afnc?) favours organising the seven BAA from the Cabinet by the Prime Min- ! airports into separate ister in the autumn reshuffle, called companies “to ensure financial transparency,” on the Goverment to accept that if Gold mining companies* reports for the quarter ended 31 December 1985 under a single Knitting company, the Bill was not an appropriate in- ac- with comparative figures for the previous quarter
1 cording the Airports strument for dealing with Lloyd’s to Policy white paper (policy document) published other suitable legislation should be introduced in June. Mr John Smith, Labour’s shadow The BQl is also expected to pro- DEVELOPMENT Ouarterended PRODUCTION | GOLD vide lor the sale of shares in toe 31.12.85 300985 Trade and Industry Secretary, gave , Metres advanced M3 throughput increased by 64 000 ions over Ihe previous quarter and metodad that and require local authori- Cooke No. 1 Shaft .. 57*5 185 000 tons (90 OOQ tons) nom surface sources. ; BAA to Randfonteln 6053 notice the opposition would Cooke 2Sftaft ties owning sizable airports, such as No. .. 2980 3379 seek to bring Lloyd's within the Cook*NaaShiftV. 5382 5296 SHAFTS Manchester, to form companies to 14087 Cooke No. 3 Ventftstion Shaft scope of the Financial Services Bill Estates Total mens . 14727 ninwiHn^prt^ run their local airports; Work preparatory to the smking ol toe snatt has commenced by intxodncmg during The Randtonieln Estates Mbwiq Company. Wbwterarand, Limbed GN SAMPLING RESULTS Doomkop Shafts its committee stage. The Bill is expected to give pow- n^i nnnT Mrfwrtn ooai os The values shown in the bBowmg tabulations are the actual results ol sampSng The stokmg ol the No. 1 Shaft Is progressing according to plan and has reached He contrasted the fact that not ers to focal authorities to sell issued captofc W2227 106 reel development No aSowance has been matte lor any adjustments which may a depth 01 889 metres (809 metres! below surface. The 106 lewt station one single prosecution had arisen shares, if they so choose, in their (Om«fed to ensure that those re- of the Civil Aviation Authority so it fUraudrucJ) . ernment Nal Ho No.3 Total No. 1 No. No-3 Total LABOUR UNREST can regulate airport charges, such Gold labour earty in sponsible for defrauding the social UEIaREEF Sporadic outtxeaks ol unrast have occurred smee Oecantoer and 1 220000 tns has had an adveiseettect on ttie rate of preducoon from underground. security system were brought be- as those for duty-free goods. Ore mifed-tons 1642000 57B000 3 Sarnpiod-m 6m 318 584 1 550 4Q6 426 450 1284 Kaogramsproduood 8 206 16068 of 7882 Channel wkSh-cm .. 180 249 206 204 159 235 187 194 We regret to announce that one rhe disturbances resulted in the death of two fore the courts. traffic grams per tort AIR distribution between Yretd— *Jt 52 5.0 Average value: employees. The company extends its deepest sympathy to the tamiras at ihe Mr Jenkin dismissed this com- London's airports Revanw-pertonnsfled 1*11438 R102.62 R10B.62 deceased. should continue GofcJ-gfl 9.6 33 43 *2 3.3 33 63 43 Smmonths that it took Wortdngccst-per t&nmftod M6JS R4S20 R45.79 parison on the grounds to be left to market forces, airport — cm-gl 1728 797 888 1265 525 776 1272 873 Ouarterended ended R62.B3 of toe of Piatt -per ton mOed H6»JO H57.42 Urwifrim-kgrt 0,14 034 032 03* 0.11 037 0.47 033 so account complexity pricing polity and airport schedu- -cm-kg/l .. 2530 K36 8632 58.16 17.49 86.95 87.89 6432 to Ukaniuai CAPITAL EXPENDITURE (R000) 31 iZBS 300985 3H28S some of toe frauds alleged have ling committees, says toe British Tons treated. 848000 864000 1 7T3000 Net expenditure, nrwig assets ... 55919 38411 95330 taken place in the City of London. Airports EBREEF Authority. The body was Kfegramsproducad 166481 164466 332967 Sampled-m 458 — 723 456 237 - 693 : other assets ...... 575 1627) (52) Mr Austin Mitchell (Labour) said commenting traffic YWd-kHogramsperton, 0,19 CjgMflJ commitments at end of period — 109172 60381 109172 on plans for 420 0,19 Channel mdtfi-cm .. 124 — 183 115 257 - 164 unsatisfactory. "It has the Bill was Stassted Airport, chosen as Lon- Average value: LONG-TERM LOANS (ROOO) to be considered against an ex- Coid-grt 92 — 53 8.1 13 - 4j8 3 as don’s third airport Balance Blend Of penod 57524 67874 67524 -cm-grt 1141 — 952 932 488 - 787 traordinary background of fiddle FINANCIAL RESULTS (R000) Interestpwdduraig the period 424 446 870 CHLORIDE, the batteries group, Uranium-hgA 033 — 0.17 0.11 023 - 0.17 accept- (UneudHed) Repaymentsdue wrthnooe year 14441 17042 14441 and fraud which might be -cm-kg/t . 284*2 “31.11 1235 59.11 - 2738 has named two of the three manag- Revenuefrom gold 197910 able to Tory MPs but has ordinary CONSUMER LOAN ing directors who will ran the new Working costs 78110 EOGdREEF The consumer loan has Seen converted to SA Currency at the rate n*ng at citizens aghast at what is going on," tram gold Sampled-m 225 225 174 product-based companies which are Proto 111700 31.1235. Rl - 50,3740 IR1 -* S0.3850 at 300935). The long-term Stan Profit Charnel width -cm .. 172 172 183 he said. from uramum 1110 btoance as well as ihe current portion ol Iris loan are expressed net ol thft future to conduct its business worldwide. Average value: Net sundry revenue 1882 lax Bffea of tosses restewtg from exchange tftfterances- They are Mr Ron Hancock, a for- Proto beton tax end State s share 114082 Gow-gn ... 17.4 173 65 . . . 2993 2983 1190 mer head of the vehicles subsidiary Taxand Stales share 28779 -cm-gfl FORWARD CONTRACTS IfranMn-kg! 0.19 0.19 0.11 The company has currency forward contracts tn respect 0* a portion ol ns Electricians vehicles Profit after tax and Stele's abare 84813 of BL, the state-owned -crwfcgrt 32A8 3238 20.73 expectedlutuxe goto anduranum revenue Caudal expendtfure 56494 group, and Mr Angus Fraser, for- Onrtoendsdecfared <2795 KWBERICYREEF DIVIDEND head for mer cfrairma11 of Chloride Batteries Sampted-m 231 231 146 39 r TOO cents was declared on 19 December 1985. payable Channelwidth-cm 216 150 257 Europe. .. 216 to members red at the dose ol busmess or* 7 February 1986- Dividend Average value: warrams March 1986 MORE than 20m gold, silver and GoWprice iecetwd Randperfcg 24142 20814 22261 p< on 7 wd be posted to members on Murdoch talks GoM-g* 23 23 3.1 12 6 March 1981 platinum items of jewellery were 2. Revenue from 90M. me reported gold price and prefit from uranium lake -crrvg/t 60S 80S 465 308 account ol currency forwent transactions. submitted for verification by hall- Unmium-kgA 033 033 038 034 Bassett and [ On behalt olthe Board PWflp I By 3. Tax lor the year to date has beet* calculated or Ore baser ol am rase that wee 6.48 3.00 1Q28 marking in the UK last year, an in- Helen Hague darned by using the actual results to date and an estimate tor the (S. Y. NISBET areaas Oevetopmcnt the reef tornis part toration F. < creese of 6.4 per cent on 1984. ramesxfer ol the current financial penod. Nows on 69Gd oCttweR programme. J P.ROUX TALKS are likely soon between UK building societies (savings EETPU electricians union leaders institutions) see no immediate need and Mr Rupert Murdoch's News In- for an increase in their interest ternational over a new agreement rates despite the recent rise in bank far toe company's printing plant at base rates, Mr Richard Weir, secre- east London. Wapping, tary-general of the Bcdkting Socie- SAMPLING RESULTS LONG-TERM LOANS (ROOO) Union officials are expected to The vatoes-piown In the tofowing tabulations are the actual results of sampfing Batanceneodafpenod 22535 23177 2253S ties Association, said. contact toe company today to ar- Western Areas reef development. No aUowanoe nas been made tor any adjustments Owl may interest paid during me penod The societies attracted net re- Western Areas Gold Mmmg Company Unwed be necessary when computing ore reserves. Repayments due wahnoneyear 2535 2 552 2535 range a meeting, followin the g ceipts of £865m in December,-She nnM*aanM*««»1e33Q9tt decision of the EETPU Issued capital R40 306950 VamersdoroContact Reef, Etoburg I FORWARD CONTRACTS unanimous highest monthly figure for toe Eteburg tnanriduai The company has entered mo forward contracts m respect of a significant executive yesterday to bold for the (DMM into 40308930 units OlStock etRl each) Reefs whole of last year, at a time when portion ot its gold production in order to stabdne revenue and thereby reduce the time national-level negotia- Quarter ended 31. 12.85 Quarter ended30.09 85 Forwarrt first savers are usually withdrawing company's viinerebiMy » operawig tosses contracts mefetoe bom me Six mores (onward sale of gold and the purchase ot put options that give tions with News International VCR BMW Efft Total VCR EMR EIR Total the company a money for Christmas, Shoppers are Ouarterended ended drtereticna^ right to sell gold aia pradetermvied price ouimg a specified penod proposals for a legally Sampted-m 1182 546 1677 3405 1203 1005 1779 3987 about its OPERATING RESULTS 31.1235 300985 31.1285 The company has also entered into currency torerard contracts respect ot increasingly postponing Christmas Channetwtdth-em 72 188 261 184 97 238 249 201 m a no-strike deaL (Uneutttett significant portion ol its expected gold revenue. binding payments by using credit cards. Average value: said it is not opposed EETPU has The association adds that &5m Gold Gohf-grt 13.6 S3 43 53 112 33. 43 S3 DIVIDEND legally binding OremBed-fons 1031000 994 000 2025000 904 1106 to principle to & -cm-qrt 879 9*5 1122 1030 1066 1220 Dwtoend No. 40 of 18 cents per unfi ot stock was declared on 19 Oecember people held building society mort- KilogramsCroduced - 4330 4374 87D4 toe union is not sa- 1985. payable to members registered at me close ot business on 7 February agreement. But toons far house at Yield- ramapertoo <1 *.* 4.3 gage purchases IfkfcSe Bsburg Reefs 31.1235 30.0935 1 986. OMdand warrants payable on 7 March 1886 writ be posted to members on with toe current draft deal, Revenue -pertonmeed Rl03,84 R9255 R9935 tisfied the end of last year. 893 6 March 1986. proposals Working coa-per ton mated BC3I R79.82 Rat 38 Sampled-m 669 and is preparing its own Channel wxfth- cm 188 185 On behalt of the Board FARMERS’ incomes were al- R21.03 Hi 696 company. Praia-per ton rutted R12.73 G.Y NISBET - to put to the most halved last year, mainly be- Uranium Average vtoue: trtrectors_ for F.J.PROUX These will include provisions 171 000 3S2000 eotd-g/t 3,7 32 cause of poor weather conditions, Tonstreated 181000 722 employee Kilograms produced 80828 77440 158069 -Q7HJ1 888 employees' single-status, Ministry of Agriculture says in Uranken-agn 953 0.61 toe Yett-tatogramsperton 0,45 0.45 0,‘S and arrangements for -em-fcg/1 88^4 11226 participation its review. The drop of binding, pendulum arbitration £879m (43 per cent) over the previ- FINANCIAL RESULTS (ROOO) where toe arbitrator has to choose ous year contrasts with a 30 per tUnaudoedl GOLD PRODUCTION against each side’s case In favour or cent rise in the cost of the EEC Revenue hom goto 107182 92003 199J65 The tonnage treated from underground was supplemented by 36000 tons - principal ele- in its entirety the Working costs 85480 79345 16462S (81 000 tons) from surface sources- Elsbnrg form policy to UK. strike-free ments of toe EETPUs Profit from gold 21882 12658 34340 No. 2 SUB-VERTICAL SHAFT Bsburg Goto Mining Company Lowed with Cara has signed a PtOtt IfOm urefoum 4532 4 423 8 955 deals which it has reached JAGUAR The^raft deepening sptogtesangacoonfrng la plan and wfil be completed early ftiaaailsaiW mraton three-year motor racing sponsor- Net sundry revenue 3051 I95S 5006 Issued captti- R30 203 000 high-tech companies. share 29885 19038 48301 ... Gallaher International, before tjw and Stale s (Onded otto 30203000 units otstoefc rtf Rl each) EETPU gen- ship with Tanand States snare 6207 11387 LABOUR UNREST Mr Erie Hammond, 6180 Si* months 31. the cigarette concern. Gallaher is to Labour unrest occurred on the mote ot 23 Oaeenfoar 1985 and regrettably ended 1285 said he foougbt Profit aftertax and State's share ... 2*a» 12886 36 914 DIVIDEND (ROOO) eral secretary, resulted in the death ol two ampfeyees- The company Mends us deepest DECLARED 314) k Jaguar's re-entry into the per una of there was “enough common trac Capea)«penditure 11733 12931 24664 sympathy to toe families of the deceased stock (cents! 10.4 and the World Sports Car Championships &vto«TXtedeclared 8449 — 6448 ground" between the union WATER CONTROL PROJECT Stockholders are adutsad to study ihe ooerawn* results oubashed wbv means of promoting its brands WesternAreas Goto Muwig Company Lmfied. company. Trades Union Congresss as a A letter indicating trial a perms to de^ratar tos GamsboMontem Compartment Wapping internationally. w* be granted in due course has bean recawed from toe Depattment ot VWatac Oi behalf ot toe Board print unions over 1. Gold price received.- Rand per I® 24479 20415 22 SOI advice to Affairs, and toe company has been wfrnswd to membetsrip of ihe Far West G V. NISBET Ooedera prevents a single-union deaL PLANS to privatise the IQ water 2 Revenue (ram goto ana toe reporod goto onoa tsfce account goto and Rand Ootamrtsc water Association. Oecusstons and negodatons vntn the FJP ROUX currency forward transactions as wefl as ne cost of goto put arahorittes and with panes hofrbng nerests in the area are But EETPU leaders inmcatea authorities in England and Wales vqwng concerned their agree- options. comnwng. yesterday that though will be outlined in a white paper Sin months exclusive to toe published Ouarterended ended ments had been (polity document) to be Ouarterended neces- past, they need not in future by the Government next month. DEVELOPMENT 31.1285 3009 85 CAPITAL EXPENDITURE (ROOO) 37.7285 300985 311235 Copies otthese reports are available on request tram the ottiees of. to one Net expenditure, mining assets 13169 12834 26003 sarily be confined solely order Mages advanced INDIA has placed a dim Ventaredore Contact Raet Otoerassets (1438) 97 (1339) Barnaul Brothers Urtittad union. . Capaai commitments Btendaf penod 21869 99 Sohopsgate. London . for six electric railway locomotives Upper ElSOurg Reefs ... 21869 14095 EC2M 3XE. England also effectively sanc- The EETPU which are expected to be built joint- MddteElfDunj Rapts ..... Forecast capfial expenditure has been increased to some R90 mason, mainiy to members, “““V Tola) metres . aSow lor costs wriOi could be rewired In toe ctewatenng programme. 14 January 1986 tioned their if ly by British Rail Engineering of short-term contracts, cruited on Derby, in the Midlands, and ASSA, continuing to work at engineering in Scot- the Swedish electrical the company’s other ate land. V' - 4 Sbfg^s J.liitP’' 4£«.VV. Finandal Times Wednesday January 15 1986 UK NEWS Company Notices Councillors ' CBI GRANGES AB bank mges £lbn boost THE GRANGESBERG COMPANY national OF CANADA US$15,000,000 8% per cent. Loan 1989 appeal SUS 100.000.000 S.G. WARBURG & CO. LTD. announce that the annual redemption instalment of floating rate to cut unemployment USS1 ,000,000 due 15th February, 1986 has been met by purchases in tha market to the norflinal NOTES against value of US$61 9,000 and by a drawing of Bonds to the nominal value of USS381 ,000. DEPOSIT 1905 The distinctive numbers of the Bonds, drawn In the presence of a Notary Public, are as follows DUE APRIL BY PHILIP STEPHENS, ECONOMICS CORRESPONDENT 12 29 38 47 56 67 90 110 T19 128 138 146 189 199 269 307 319 328 337 345 * BRITAIN’S industrialists yesterday spending. If wddttifltipi money was available surcharges 356 394 403 413 432 452 461 484 487 513 For the three months. called on the Government to h»i»» Sir James mid CBI members had it should be spent on raising tax 747 769 778 787 809 865 874 905 914 924 January 7. 1VK6 to April 6. [ By Raymond Hughes, 973 963 992 1000 1010 1025 1054 1065 1075 1084 direct action to reduce completely rejected the idea of a thupchniHg in order to' improve in- of interest has , tmcmploy- Law Courts Correspondsnt 1107 1131 1232 1241 1251 1464 1473 1485 1484 1519 1986 the rate « ment the first priority for this general reflation of the economy. centives for the lowest paid to ease 1536 1567 1577 1586 1595 1604 1653 1698 1762 1806 been Used at 8 7/16 ft year's budget and, if necessary, to But the Government could "stimu- the effects of poverty trap. MORE THAN 80 Labour councillors 1815 1825 1834 1903 1916 1925 1961 1961 1971 1980 P.A. 1990 2000 2008 2017 2051 2062 2109 2124 2149 2158 forgo cuts in personal taxation. late growth, improve competitive- The CBI president said business from Liverpool and the South Lon- 2166 2175 2185 2194 2311 2230 2249 2271 2289 2307 ness and put people and resources was still looking for a cut in interest don borough of Lambeth went to 2316 2335 2335 2344 2397 2406 2418 2453 2462 2*92 The interest due on April 7, In its pre-budget submission to 2576 2694 2604 2613 back to work” within the context of rates after last week’s 1 percentage the High Court yesterday to appeal 2618 2533 2543 2564 2585 2622 coupon nr 4 Mr Nigel Lawson, the Chancellor, 2632 2641 2649 2699 2668 2680 2690 2699 2717 2726 1986 against its anti-inflation strategy. point increase, but acknowledged against surcharges totalling more 2794 2811 3308 3403 3557 210.94 and has the Confederation of British Indus* 2744 2761 2775 2785 3566 will be SUS The CBrs full proposals are the problems caused by volatile fi- than 3643 3674 4287 4317 4359 4489 4552 5303. 5312 5413 try (CBI) 033,000 imposed on them for been computed on the actual urged a Clbn package of 9423 5435 5454 5463 - 5472 5525 6538 5547 5556 6866 based on the premise that Mr Law- nancial markets. delaying foe setting of a legal rate, elapsed measures to cut the jobless figures. 5592 5629 5688 5697 5706 5775 5785 5879 5917 6291 number of days son could have £3.5bn to spend in He said recent events (focal property tax). 6330 6359 6770 6779 6788 6798 6807 6815 6824 6834 (90) divided by 360 Sir James Geminson, the CBI the spring budget, but they ac- the need for the Government to Thirty-two Lambeth councillors 6881 7142 7236 7417 7480 7491 7502 7511 7521 7532 7577 7586 7595 7604 7614 7623 7644 president, said the measures would knowledge that lower oil revenues seize every opportunity to cut rates face having to pay them 7541 7551 7560 between 7653 7661 7671 7688 7698 7707 7716 7725 7740 7760 THE PRINCIPAL reduce unemployment about may have eroded that scope. Busi- when markets were calm, but the 028,847; foe 48 Liverpool by from are 7769 7778 • 7795 7818 7827 7836. 7845 7854 7953 7962 PAYING AGENT 330,000 over two years through a ness was convinced, however, that impact on business of higher bor- alleged to be liable for £106403. 8014 8023 8103 8163 8234 8329 8338 8351 8361 8396 8903 9102 9112 9186 9195 GENERALE partnership between the public and the first £lbn of any cash available rowing costs had been partly offset The surcharges were 8404 8542 8676 8883 9205 SOCIETE imposed by 9214 9222 9232 9241 9250 9260 9269 9278 10234 11617 private sectors in which business should be spent to help the jobless. by sterling's fall against European district auditors who riairnoH that 11627 11646 11655 11669 11678 11688 11697 11770 11780 11789 ALSACIENNE would, at least, match government Sir James said. currencies. the money was lost to the two coun- 11798 11808 11817 11826 11835 12063 12072 12082 12091 12100 DE BANQUE 12110 12137 12146 12154 12163 12188 12199 12208 12241 12250 cils as Emile Reuter a result of foe ccunriUors’ 12260 12273 12282 12293 12302 12311 12326 12335 12344 12387 15, Avenue "wilful misconduct" in failing to set 12527 12541 12674 12684 12693 12702 12716 12749 12758 13008 LUXEMBOURG a rate at foe beginning of foe 13017 13026 13041 13050 13058 13068 130T7 13110 13119 13129 Value of shop 1985-86 13138 13147 13155 13165 13244 13310 13319 13328 13338 13347 Minister defends pact financial year last spring. 13355 13364 13491 13500 13509 13519 13628 13552 13660 13569 The appeals, expected to last 13595 13615 13631 13648 13657 13667 13675 13719 13729 13738 sales several weeks, arise from last 13767 13977 13986 13895 14004 14013 14022 14032 14041 14060 up by 14060 14069 14099 ' 14108 14121 14130 14139 14149 14158 14249 in Ulster election row year's rates rebellion by a number 14263 14273 14352 14381 14400 14409 14419 14438 14436 14465 C.IUL IKmNATIOMAL N.V 9% last year of local authorities and are re- 14502 14512 14521 14655 14665 14744 14763 14762 14906 14915 BY OUR BELFAST CORRESPONDENT garded as a key test in foe battle 14924 By George Graham over foe Government's policy of re- On 15th February, 1886 there will become due and payable upon each Bond drawn for re- ists to resign, the demption, principal amount thereof together with accrued interest to said date at the office of:— MR TOM KING, the Northern Ire- by-electLans ccrald ducing council spending. the , CHRISTMAS SHOPPERS pushed land Secretary, said yesterday that not overturn the will of Parliament Three judges, headed by Lord S.G. WARBURG & CO. LTD. UK retail sales to record levels in the Anglo-Irish agreement would The parliamentary majority rati- Justice Gbdewell, dwndnH to bear 33 King William Street, London EC4R 9AS December, according to figures neither be scra ed nor modified fying the agreement was the largest pp foe Lambeth appeal first, followed or one of the other paying agents named on the Bonds. published yesterday by the Depart- whatever the results of next week's he had seen on a major issue. The by foe Liverpool case, and foes to Interest will cease to accrue on the Bonds called for redemption on and after 15th February, ment of Trade and Industry (DTI). 15 Ulster by-elections, caused by Anglo-Irish pact, signed last No- give judgment on both. 1988 and Bonds so presented for payment should have attached all Coupons maturing after that date. Sales resignation of vember, gives rose by 0-3 per cent from No- the Unionist MPs Dublin a say in the Mr Lionel Head. QC, for the Lam- leaving who opposed the deal. The amount of any missing unmanned Coupons will be deducted from the sum due for pay- vember, the month’s retail running of Northern Ireland. beth councillors, said that foe seri- ment. Any amount of principal so deducted will be paid against surrender of the relative missing volume 3 per cent higher than at Mr King called a news confer- The Unionists canid' not go on ousness of the case for them could Coupons within six years from the date of payment. Christmas 1884. ence just hours before the two saying no to everything. During 12 hardly be overstressed. A crucial is- USS3.000.000 nominal amount of Bonds mil remain outstanding after 1 5th February, 1986. December's retail sales are provi- Unionist parties launched a joint years of stalemate they had reject- sue would be their motive for not sionally valued at ttlJlbn, a year- manifesto. His intervention during ed every effort which had been fixing a legal rate. Not only was a 33 King William Street. London EC4R 9AS 15th January, 1986 on-year increase of 8 per cent Over the election wimpaigw proper made towards progress. substantial wnwYimt q£ money in- the whole of 1985, the average value caused some ammig volved, but they risked disqualifica- surprise The Rev Ian Paisley and Mr of sales was nearly per cent high- Unionist leaders. tion as coun ciltars for years. 9 James Moiyneaux, the Unionist five ROWNTREE MACKINTOSH INTERNATIONAL FINANCE B.V. er than in 1984. Most importantly, the 32 - all of The Secretary of State said the leaders, said afterwards that Mr £18,000,000 101% STERLING FOREIGN CURRENCY BONOS 1988 dedicated of DTI officials said that average re- Government was determined to them to the service King would be “treading the road to 7mn*itW|hnM( Mu I tnmn oi mawr afnrord onfe Lambeth - faced a charge of wilful tail prices for the whole of 1985 are make tire agreement work. White dictatorship" by ignoring the elec- misconduct - the gravest charge NEW ISSUE DECEMBER 1483 expected to be 4.4 per cent higher he respected the right of the Union- tion results. than in 1981 December figures for that could be matte against a the broader retail price index are councillor. due to be announced on Friday. In the context of the dispute be- tween the Government and local Falling retail sales volume in Hoyerspeed profits hit authorities over the amount of rate September and October took some support grant, and the Govern- of the sparkle out of strong summer by ANDREW FISHER, SHIPPING CORRESPONDENT ment’s policy since 1079 of a con; sales figures, and December’s fig- HOVERSPEED, the crossGhannel Moving foe administration to tinuing reduction of local govern- ures are lower than forecast by hovercraft company, edged into Dover and leaving the RawisgfrfA ment spending, foe Lambeth coun- City of most London analysts. No- profit at the pre-tax level last year, passenger terminal cost the compa- cillors had been convinced that they vember’s sales volume, however, CLAL FINANCE N.V. but the costs of moving its head ny £380,000 with a further £790,000 could not provide for foe borough's was better than previously thought, (Incorporated *uk limned liability in the Motherlands A radio) quarters and of installing an unsa- lost as a result of a new computer needs within foe spending limit im- and has been revised upwards from tisfactory computer system tipped system, which Hoverspeed hat de- posed on them. the figure originally annnrninwt U-S.S1 2,000,000 it back into the red. cided to drop. Thefe judgment had been that the In the last quarter of 1985, retail The company made a pre-tax drastic spending cuts required by sales volume remained at the same GUARANTEED FLOATING RATE NOTES 1990 profit of £194,000 in the year to Oc- These costs were partly offset by foe Government would not only re- level as in the previous three tober 31, 1985, compared with a a tax credit of £302,000 compared duce already inadequate council months, but 3J5 per cent higher £621,000 loss the previous year. with But a £505,000 charge foe previous services but also cause job losses in h)weifpiwpluf iwtBi wwaSMmH > sd inmallj twuMiiri by than in the same period of 1981 for foe bad weather last summer, it year, but Hoverspeed ended foe an area of high unemployment in Over the whole of 1885 sales volume said, these profits would have been year with a final loss of £875,000 which the council was a substantial C£AL (ISRAEL) LTD. was 4 per cent higher than in 1981 E50QJM0 higher. against £406,000. employer. Tie case continues. (Incorporated nub ItmturJ lability in hrail) ISSUE PRICE 180% Bank Leumi le-Israel B.M. 22 11 KOREA GROWTH TRUST 67 11 90 13 SOCIETE Reliability. CENTRALE DE VT BANQUE SUS 50.000.000 FLOATING RATE NOTES DUE 1995 For the si% months. January 3. 1986 to July 2. 19W>.lhe rale of interest has been r fixed ai H 1/8 v. P.A. The interest due on July 3. 198b against coupon nr 2 will he SUS 408.51 and has been computed on the actual number of da\s elapsed (I SI) divided by .160 European yd THE PRINCIPAL PAYING AGENT 53ne3 SOCIETE GENERALE ALSACIENNE DE BANQUE Pic 15. Avenue Emile Reuter LUXEMBOURG (CDRs) The undersigned announces that the Rules of the Concessionary Car Ferry Fare Scheme with the adjusted discounts for 1986 .--f are available at its office in Amsterdam. Motor Cars In comparison with 1985 foe mere alteration is the extension of the discounts to the new ferry-services lines. To qualify for the concession foe original preference shares for which CDRs are issued have from now on CO be registered H : j on 31st December of each year. l As from 2nd January 1986, 3 (three) Concessionary Coupons no. 2 (detached from the CDRs European Ferries Group FLC, each representing 100 Preference shares of £1 each) may be exchanged for a registered Certificate, entitling foe individual PCI CDR-holder to apply for fare concessions on Townsend Thoresen Car Ferries during 1986. For this purpose the- three Concessions Coupons no. 2 must be sent to: 6ET UP TO 30% DISCOUNT Townsend Thoresen. Department SC, Leldsestraat 32, 1017 PB Amsterdam. ON Tel: 020-257717/230107 NEW CARS reason before 15th February 1986 stating at the same time the appli- One why Just took at there on the read examples cant s name and address, in order to reproduce those data on door ...... Cast has become foe Registered Certificate. BMW 3181 2 £7.500 Renault 25 GT ream * Amsterdam, 2nd January, 1886. Opel Kadett GTE £6 J20 Renault IS GTS Sww the leading door-to-door Opel Manta Hatch - £6.150 " AMSTERDAM DEPOSITARY GTE Maria 626 GLX HaVd,""* Benz 190 container operator on COMPANY N.V. Mercedes E ...£10,550%, BMW 320i 2door._.'” «?£ dflvs a week Monday Open 7 to Friday 9.00-4.30 Saturday io the North Atlantic. PADRON & CO INTERNATIONAL (UK) LTD The Management Offlca . WHIesbofough IndwwSiea* M VA Westminster WBank PLC Notice to Preference nmanut iwvktmwt bank Shareholders II Ij% UN ITin STATES DOLLAR Nodes BONOS O* 19S4. DUe is hereby given that a DECEMBER IS, IBM dividend of 2.4$) pershare forthe half-year NOTICE IS HEREBY GIVEN to b«nA- ended 31 December 1965 befMrs Uul Union Rink of Swtatr. Residential Property be paidon28February 1906to land-CSKariUea) Limited. London, at FIST I holders PMiBt Afloat for account of MCA of the CumtAuhre Prefer- flunk. hH mnteud USS*. 000,000 principal amount of Bonds during ence Shares registered in the the' twelve • iwwtli parted ending The Blue Box System of Container Shipping bpoksof theCompanyat thedose IS Dacambpr 19*5. of busness on 6 February 1986. As or IB DictBitar IMS trn Rentals principal amount of ««* Bond« remaining in ctrcauuaa was USSItMMHMMHM. Linoemtwerfl lStfi Jaauaiy 1M6 EUROPEAN INVESTMENT BANK f 4 •'-: *?•* -. - r Financial Times Wednesday January 15 1986 a. £-~ i f . ; B3S 0 M . i ; j anvfc*3ES,Tra»T • s^». c_ - : _ ^ S£" • — — M - : ^racKK . . * 4 / J -v r Do you ever hanker for those bygone Centralised door locking. A sliding and days of travel? tilting glass sunroof. Electrically operated The days when a Grand Tour meant and heated door mirrors. more than “If it’s Tuesday it must be Rome”? Even a steering wheel that can be Then allow us to introduce you to the adjusted for the most comfortable angle. Belmont. But in any form, the Belmont’s piece de A rather stylish new saloon car from resistance is its boot. Vauxhall. The largest in its class, it boasts a cap- The moment you enter the Belmont acity of 19-4 cu. ft., easily accessible thanks you’ll notice its high level of appointments. to a low loading lip. The seats are superbly upholstered and, And thanks to the 60/40 split folding in the front, easily adjustable. rear seats, you can carry rear passengers The seatbelts canbe individuallyaltered at the same time as transporting lengthy for height and driving position. or unwieldy loads. And there’s a 4-speaker Philips stereo Laden or unladen, the Belmont, like the radio/cassette player. Blue Riband liners of yesteryear, combines Of course, should you decide to push the an uncommon level of comfort with a rare boat out with the GLS trim, you’ll find even turn of speed. more in store. Consider the GLSi, for example. 7m -v- ..VS'* • if; I r£> .V*. y'- > v /• r. -vvr, ii'-rT 'M ;*• ‘ • Vf .M am\ K' i f /A / r / / / MANUFACTURER’S PERFORMANCE FIGURE DOT FUEL CONSUMPTION.TESTS MPG (LITRES/100KM).FOR GLSi 5-SPEED MANUAL- CONSTANT 56 MPH 55 4 (5 \y CONSTANT Financial Times Wednesday January 15 iggg 13 V v V Its smooth streamlined coachwork has choice of cabins. Seven in all. With three a class-beating drag factor ofjust 032. trim levels and four engine variants. Which helps it steam to an impressive Right now, you’ll find the Belmont top speed of 124mph. berthed at your local Vauxhall-Opel dealer. Yet it manages to return a creditable Why not book yourself 55mpg when cruising along at a ^ a maiden voyage? steady 56mph. As you BACKED y would B 1« WORLDWIDE «SOURCES OF GCtCRAl MOTORS expect with such an aerodynamic shape, wind noise is kept to a minimum. Whilst the car’s ^ remarkably refined suspension and low profile tyres me it can negotiate the twistiest Alpine road or Route DepaifemenUde^^th tie new\kuxhall Belmont an unruffled grace. From £6,210 to £8,095. B The Belmont is E T T E R • by available with a wide I design t % 7*r\ %•> * i . \ i • vrv \ V>\Va L .V tgv ** * ifc - £ ( URBAN CYCLE 26.4 (10.7). PRICES CORRECT AT TIME OF GOING TO PRESS 75 MPH 43.6 (6.5): INCLUDE CAR TAX AND VAT. DELIVERY AND NUMBER PLATES ARE EXTRA — . — . — 8 15 1986 14 Financial Times Wednesday January biggest business opera- HE MUCH admired social DGB's the Neue Heimat pro- contract between West WEST CONSENSUS tions, GERMANY’S INDUSTRIAL perty group, which in order to FINANCIAL German trade onions and TIMES T debt under Sbn management, which under- get its DM BRACKEN HOUSE,. CANNON EC4P4BY form of control is now STREET LONDON pinned the country's post-war ibme off thousands of apart- feteflrams: Flnantimo, London PS4Telex: 8954871 recovery and delivered some of selling ' many in deprived areas the highest wages world ments, Telephone: 01-2488000 in the where the present tenants can- to West German workers, is to buy. Neue Heimat coming under unprecedented not afford was established not long after Wednesday January 15 1986 pressure. war to provide homes for Among recent developments, the trade unionists. employers are resisting, fiercely get and successfully, union efforts The DGB is unlikely to demands for to secure a greater say in anywhere with its supervisory investment in new technology woTker parity on and in management. The boards under the Kohl Govern- case of The modest representa- A Government is threatening to ment already roll bade hard-won union gains tion the unions have face of cor- at shop-floor and board levels. was won in the And both employers and govern- porate hostility and executives regard with barely dis- ment have combined in toe last today the bad judgment few months to launch a power- guised contempt prospect approving ful assault on toe country's of trade unionists liberal strike laws. the appointment of senior THE MOST plausible charge ness than the five-company executives of In short, the unions in managing or against the Thatcher Govern- European scheme. Indeed, it Ger- many appear to be on toe defen- having a final, or at least ment over the Westland affair could be argued in purely say in the appropria- sive. They are losing members decisive, —which it will have to answer national terms that a stronger tion of annual dividends. in today’s House of Commons helicopter-making capacity —100,000 last year alone in toe . biggest umbrella today, Both industry and Govern- debate—is one of incompetence would be retained in the UK the have also scoffed at and poor judgment, rather than under the Sikorsky plan, since DGB—financial scandals bave ment demands for a constitutional impropriety. the American company would eaten *away at their credibility union greater say in corporate investment in Zt is important to be clear have an interest in maintaining and they have been unable to technology despite determined about the ultimate source of the a large European presence, than take advantage, in wage deals, Chancellor Kidd (left), Ernst Brett Franz SktaknUer efforts the to Government's problems. With under toe rival scheme; toe of a sharp recovery in corporate and by DGB make an issue of it arguing that toe hindsight it can be seen that three continental companies profits since Chancellor Helmut by very fear of technology the fatal error was to have en- would have no interest in build- Kohl's conservative coalition new couraged Mr Michael Heseltine, ing up a competitor to them- came to power three years ago. taking away jobs affects pro- ductivity. The West in the autumn, to look for an selves. Despite having won represen- German motor, mechanical all-European alternative to the Second, toe motives of some tation on company boards, strains engineering, Hie are electronics and chemicals in- proposed Sikorsky-Fiat rescue of the European consortium unions have also been weakened dustries, for toe most part offer. Even acquiesence by the members looked suspect from a by thousands of industrial enjoying high profits, Cabinet in Mr Heseltine’s quest British point of view. The three redundancies which have led do not to toe country’s highest post- seem to bave noticed. implied a degree of unease helicopter companies, especially . about the Sikorsky proposal. the French and Germans, were war unemployment rate last Mitbestimmung is at its most Once the European counter- particularly concerned to frus- year. potent in the Befriefarut, or The strain on toe unions is tell offer materialised, coupled with to works oouncfl, trate an attempt by their largest which in theory promises from the defence American rival to establish beginning to show. Last month. is consulted about questions ministers of four countries itself firmly in Europe; toe West German workers disrupted regarding personnel. There is about future helicopter pur- driving force was more anti- work in pursuit of a political By Peter Bruce in Bonn no doubt, however, that the chases, a posture of neutrality Sikorsky tjan pro-Westland. and not a financial goaLAround works councils are often by- became extremely difficult to Similarly, the suppliers of lm people are estimated to have passed, not least because they maintain. It was all very well to avionics and sub-systems, like downed tools for up to three are a great source of corporate hours at time order have to take to toe streets — • workers called out but that Elmar argue that the ultimate decision GEC, feared a possible loss of a in to a Mr Kolb, a Christian change in toe law Chancellor leaks. Now, toe Government is demonstrate against and damage companies — in. strict application of the was for the management and orders if a Sikorsky-influenced proposed law Democrat (CDU) MP and a Kohl’s big teat is to persuade slowly preparing legislation changes laws. order to defend toe jobs they • “ shareholders of the company, Westland chose to place its in toe strike meet that the Federal Labour leading «mh business lobbyist, the sozial ” or n»ncnn^t.? wing which could seriously threaten Political alreadyaimnsiu- have. - ,J **r* but the fact was that one offer business elsewhere. There was, strikes are uncon- Authority in Nuremberg would 'Our— wage_ contracts have of his party not to vole against the domination of these coun- stitutional in West Germany, have to pay benefit workers had the prestige of the British in short, a considerable element Worse still, the movement’ is to always been dictated by the big it and thus deny toe govern- cils by established unions. Secretary of State for Defence demonstrations are not, but divided. In laid off in plants indirectly players (including big bust- ment a majority on issue of protectionism in the Euro- the summer of toe in Charging that current nomin- attached to it, the other did union leaders have not 1984 several conservative affected by the strike. The ness),” he says, “but when the parliament. This should not be pean offer reinforced by the DGB ation procedures militate not. apparent intention of defence small can't pay their wages any difficult His Labour Minister, more they bankrupt. Big against minorities in works If the European offer had ministers to place their heli- go Mr Norbert BiOm, though still the courts. The union strategy business simply council elections, toe Govern- been an independent initiative copter orders in a non-competi- berately ignored an eight-week screams for a card-carrying member of LG. the same time,” says Mr Franz cost' the authority 300m. subsidies.” ment intends reforming the on the part of one or more of tive way with four collaborating strike led by IG Metall for a DM Metall, comes from toe left of Steinkuehler, deputy president - : * - laws governing such polls and the continental helicopter com- companies. Here again. Mini- shorter working week. the CDU and ft was, after aU, of Western Europe's blestest _ _ sharply increasing the elec- ^ . Mr BlOm’s draft panies, unprompted by govern- sters bad not thought through - Peace appeared to be break- — — that the union, toe LG. Metall. But the Cabinet approved. Some power- toral chances of non-unionised ments, the situation would have the implications of what they ing out last March when L G. protests, accompanied by WEST GERMAN employees (co-determination law) covers ful employers, probably intent labour, or even members of been very different. As it was. were letting themselves in for. - threats of a “long war” with Metall and toe Food and Cater- have long enjoyed a statutory tiw composition of supervis- smaller organised groups, such the rival scheme was largely Third, Ministers, especially ing on stiffening Mr Kohl's resolve, toe Government are as much a Union sat down together for right to a say in the way ory-boards — those which as the pro-CDU Federation of Heseltine; *‘t is and have begun to complain that created by Mr Mr Leon Brittan, Trade show of fear the first time since toe war in as they are of their enterprises are run. group employee and share- the proposals do not go far Christian Trade Unions (CGB). highly unlikely that British Industry Secretary, became an historic effort to settle their bravado. There are two main laws, the holder representatives and enough. There is very little the DGB Aerospace or GEC would have increasingly concerned at toe differences. Eight months later,, For toe unions, the crisis has origins of which date back which oversee the operations Almost every leader in the can do to stop it joined the European consortium blatantly anti-American senti- been a long time coming. One however, it took all the powers almost to toe country’s forma- of the executive boards. Com- DGB. Including its In another subtle attack on bad it not been for his per- ments being expressed by the °* persuasion of Mr Ernst Breit, vice-presi- school of thought here argues tion in 1949. They have been panies In the iron, steel and dent. Mr Gustav Ferenbach, DGB. monopoly, the FDP, once suasion. Once Mr Heseltine had promoters of the European con- president of the DGB, to keep a that toe collapse of Chancellor revised and extended over the coal industries were originally again, is trying to secure a the European bit firmly between sortium. It was this point, the movement together in chal- member of Chancellor Kohl’s Helmut Schmidt's Social Demo- yean, writes Jonathan Carr the only ones to have parity separate place in works coun- his teeth and began promoting apparer/Jy, which Mr Brittan lenging the Government’s CDU, has warned that a change cratic (SPD) and Liberal (FDP) in Frankfurt co-determination (Le. equal cils white-collar the counter-offer with his usual sterressed in his conversation efforts to tighten in toe strike law, would repre- for “senior” coalition in late 1982, and toe the laws numbers of employee and energy, other members of the representatives British governing strikes. One is the Bertiebsverfas- sent a fundamental attack on workers. The FDP regards such with of iiurtarilatin^ in Bonn Ot aimtof"* L G. Metall. shareholder representatives Cabinet became distinctly un- Aerospace last week. wanted to take disruptive sungsgesetz (works constitu- trade union rights. More ex- people, as Its natural constitu- coalition more sympathetic action- on tile supervisory boards). comfortable. but they had only to tion law) under which works treme threats have likened the ents but the proposals have from this on . One conclusion all business proved catacylsmic. the factory floor, other After fierce arguments, toe has councils can be formed offi- action to come almost as themselves to blame. is that, when faced by financial unions worried about challenge Nazi treatment of under much Another school, not unsympa- cially tb represent employees’ system was broadly extended in problems in one of its defence ing the Bundestag's right to' unions toe 1930s and warned attack from Industry as they thetic to toe unions, traces the interests in a law of 1976 to all com- Motives contractors, has make .laws.. .to management in of “offices and factories stand- have from his DGB. The defence the Government movement’s current lack of -.L G. Metall won panies with more than 2,906 companies regularly employ- ing empty throughout the split, though. The embarrassment, of Mini- to decide between a hands-off that battle, but did not stop the workers. But there was one is direction back to the mid-1970s. ing more than five people. land”—the latter from L G. This year promises to be sters was all the greater for and a hands-on policy; steering major difference. The 1976 when toe Schmidt Government The councils have a right to Metall should parliament pass something of a watershed for three other reasons. First, it a mid-way path is asking for draft — passed what was then thought to ee-determine matters includ- law gave the supervisory trouble. Several members of ^e^ore Christmas, toe law. organised labour in West Ger- was clear that the management be revolutionary legislation, ing working hours board’s chairman (almost in- the Cabinet, perhaps a majority, and vaca- The DGB could have walked many. A win over changes to and employees of Westland had greatly extending union repre- The union divisions remain.' tion planning variably from the sharehold- did not share Mr Heseltine’s away from this particular fight, toe strike law would be im- serious doubts about toe com- sentation on corporate super- Although DGB leaders have ers side) a second, tie-break- test even though it portant. but not as important attractions toe Euro- vision of Westland as.. a - ing vote. might have mercial of - - * T7 : wuned. .toai^ toer :dteeeoBlieq3==7=J^^ visory boards: as'« loss. It is possible that- case of European defence -- meant 'that certain kinds of pean deal; Conservative cabinets closer actions were only a begin- The unions drawn strike in order to drive borne their do not like over-riding the collaboration, nor did they see ning,” and their efforts would would have to be wholly to management, the argument protest against toe changes, the commercial self-interest of a much merit In his industrial now focus on stopping toe law funded by the unions con- goes, without being guaranteed Jsver th _ might, with little political ance' ™e rop 3nnior. Government have cerned. isue a push- particular company unless and arguments for _» MPs been full parity and bad effectively being passed, a pledge, for there overwhelming politi- intervention on the side of the partners in the current coali- trying very hard to present DGB membership has fallen ing and shoving; spill over into are surrendered their indepen- instance, by Mr Hermann cal reasons for doing so. There European offer. But the issue tion. and-, an often iwwreremforgotten, metheira proposedproposeu mangeschanges to theroe byuy umore than 200,000 to 7Am this year's annual wage nego- Rappe, , the Chemicals Union dence. Where once they could increasingly powerful strike since toe tiations were good grounds for believing was never satisfactorily argued leader that “ nobodyis talking rules—which would make Kohl coalition have fought redundacies. now political element Pay claims this year concen- that the partnership with out so that an agreed position **• in German it impossible for members of a came to power. Recruitment, they are partly responsible tor about a general strike is met — Sikorsky, coming after many could Ire established. It was a Industry, the Mtttetstand, or union to be paid .benefit by the particularly among educated trate mainly on wages - a them. with a stony silence is LG. years association between the chapter of accidents and mls- small- and medium-sized busi- state if they were laid off white-collar workers has fallen rough average claim is 6 per of The unions face a serious Metall headquarters in Frank- two companies, was a more judgments which toe Prune nesses, many of which were because of a strike by their dramatically. Some 7m West cent, or three times inflation dilemma. Their leaden insist furt natural arrangement and more Minister must do her best to badly hurt during toe strike, union in another part of the German white-collar workers — leaving little room for com- that their only way forward is sense, in In a .it was L G. have been clamouring to close country^-as little more than a are not organised in trade promise on anything else and likely to achieve a viable busi- explain today’s debate. press tor to more co- Metall’s 35-hoor week strike in the legel loophole. clarification of toe law’s intent. unions and a poll conducted in the Government and employers determination on company 1984 that has moved toe The Mittelstand now has a Indeed many senior Industrial- late 1984 showed that fewer may .simply decide to buy boards. But it would be at best Government to act on toe strike Government lobby of more than ists dismiss suggestions that than one in 10 would even con- silence, or acquiescence, on a slow process and. under this law. The union called its strike ISO MPs, more than ha l f the German industrial consensus is rider joining ofie if approached. strike laws and co- Government, possibly a hope- in a few key motor industry coalition, and along with the threatened by toe strike law Grass-root suspicion about determination. There is no taxes less task. Wages, Rising unemployment, .component plants and eventu- major employers’ associations, it dispute. But fire in toe eyes of the role trade unions play in evidence yet to suggest that meanwhile, has left unions toe ally shut down toe entire indus- has smelled union blood on toe some MPs in toe Mittelstand modem West Germany can they plan to do that, however. trapped between wanting try. more The idea was that the strike issue. “If we don’t do it business lobby belies that also not have been soothed by The unions may just be ripe for representation and feeling and jobs they union’s strike fund could pay now then we never will,” says Now that he has opted for a a major scandal in one of the the picking. THE Confederation of British somewhat insular concern Industry does not want a cut within Europe, but of long-term Neill to running commentary in toe in the standard rate of income job creation. The main pro- leading coach. v tax this year. It has even de- posals are similar in principle look into Lloyd s Men and There was a stop at toe new ferred its often-repeated request wage moderation offset by Matters Top Shop — Sir Patrick Neill’s appointment /Top Man trendy a employers’ social some fiscal support for demand; for cut in as head of toe Government development at Oxford Circus; charges. Instead, it wants but the analysis and toe conse- a inquiry into self-regulation of a trot around Debenhams, the of job creation are different package quent numbers the Lloyd’s insurance market store acquired after a bitter measures costing about £lbn. The Commission is above all renews his contact with the City takeover battle last August; and and a sizeable real increase in worried by tendency British CBS- seems certain to public toe of London after a gap of nearly sector issues, he intends the footsore tourists were achieve a much higher personal tax allowances, to give throughout Europe for invest- a year. Last spring he gave up profile. at CBS to focus on private sec- finally treated to tea at Harvey Inded, Kay's talent for the maximum benefit and work- ment to go mainly to labour the of toe Council publicity tor problems and build up sub- Nichols in Knightsbridge. bottom is so well-developed that exist- stantial ing incentive at toe end substitution rather than the for toe Securities Industry (sub- expertise in various ing LBS 'luminaries such, as of the wage scale. It is not, of expansion of capacity, and thus sequently dissolved In favour of Alan industrial sectors. Budd, toe macroeconomist, course, at this stage campaign- to the destruction rather than toe more powerful Securities may The LBS job will be com- ing for its own radical propo- the creation of jobs. This is seen be overshadowed by toe new- bined with a move into private Rate charge Consolfdated-Bathurst Inc. and Investments Board) to comer, sals for a move towards an ex- mainly as a result of excessive pursue his activities at Oxford business consultancy: Kay is Zhe High Court was quite over- Kay. who became Can$40,000,0001714% Series J Debentures 1987’ penditure tax. which have yet wage increases, compressing the University, where he has been a fellow of hoping to set up a joint venture whelmed yesterday by the due St John’s . College, to be put to its own members. share of profit in the economy. Warden of All Souls since 1977, Oxford, sit With a well-known company or amount of interest shown in the the absurdly young age of professional firm. Dead of Hypothec, Mortgage and This restrained set of pro- In most European countries, as and last year became Vice- 21, case of the Liverpool and Lam- Pledge and the Deed of Trust and has transformed toe : Mortgage both dated December posals not only confirms that in Britain until 1984, govern- Chancellor. HE- In his Nick Morris, IFS deputy beth councillors surcharged for ClSSS betweeTc*n«£s££ seven years as director. director, is also leaving weare in a new era of realism ments have sought to offset toe After a successful career as Back to help failing to fix a legal rate. pressure on profits by tax con- in 1979. the : institute -was rela- Kay establish toe new consul- In addition to toe score of from toe CBL, which used a commercial barrister, includ- Ttua Deed dated February tively obscure and had only two tancy. 1 , 1 B8Z(coSecflv«y the Trust routinely to ask for the moon, cessions designed to encourage ing a year as Chairman of the lawyers occupying four rows of Dewn the employees. toredpwn afl fa qutstandhg 17W% SertesJiSfaJ that this is investment This has only Bar Council in 1974-75, Neill seats in the well of Court No 7, but realism now IBS/ tjhe^Cartoftj Debenture*") on February sharpened toe Incentive to sub- declined to follow his elder Now it has a full-time staff places had to be found for toe 20, 1986 at the supported by a growing sense P 11W Cen* of 15 and arguably knows mare : * **^“^lhereaf 'Xf&g. Financial Times Wednesday January 15 1986 LAST NOVEMBER a computer computerised so that dealers »t the Bank of New York. 8 UK gilts market will be able to buy—and pay UK water privatisation small bank in Manhattan which for gilts with electronic blips. specialises in settling — trans- It ts a hectic time with the actions for other banks in the US government danger that some groups may securities mar- not be ready for Big Bang, ket, went on the biink. Normally though all claim to be on White Paper sets § BoNY takes securi- schedule. Demand for people ties from one bank, pays for with computer skills and them, passes them on to the experience of securities settle- purchasing bank and collects has soared: one banker the money. ment But on November complains that £13.000 a year for forked rivers 21, BoNY’s computers took in clerks are being lured away the usual multi-billion dollar by rivals for £25,000. torrent of orders at one By David Kinnersley door Another problem Is that City and paid for them—but did not groups do not know exactly pass them on and collect the IS THE spirit of the Govern- their behalf. Most obvious of all has an operational what they are planning for. side as well, money at the other. ment’s planning for more to users, water authorities get carrying out How big will the market be? land drainage and Money began privatisation now edging from most of their income from flood protection, to pour out of How will people trade once the stocking and the determined to desperate? Keep- demands linked to rateable bailiffing bank. By 11 JO am. BoNY's traditional functions of jobbers fisheries and enforc- overdraft ing up the momentum is seen value, not service taken. This is ing at the Federal Re- and brokers are merged? This pollution control. These serve Bank of around Whitehall to depend nothing like a nationalised activities are for New York bad is forcing the groups to create community reached almost S12bn, increasingly on Ministers not utility, let alone a would-be and still systems that meet their most benefit, not services to indi- the transactions were rolling in, even trying to grasp the com- public limited company (pic). vidual conservative (that is to customers. They produce with say olerities of changes they are It is no use Ministers BoNVs technicians desper- greatest) expectations, adding assert- little or no income. They are ately trying to mend the fault hurrying to legislate. This ing that, because this muddle financed by a mixture of pre- to costs. month a White “ off-Whita ” By teatime, it had reached over or has survived acceptably in the cepts on county council rates. Officials expected outline SSObn, and by 8 pm nearlv at the of Paper Is to the public sector, it can be left to Ministry of Agriculture grams, bn, England, which will be respon- privatisation of water authori- 530 jt was not until 2J.5 the the pic to sort out later in rod licences and a small direct sible for smooth of the ties in England and Wales. The next morning that the tidal naming , private business terms, loves- tax ou all rateable property. gifts market, claim to be test of its being even near a tors will wave ofvi unienorders subsidedsuouaea andana « want to know if the How would all that fit Into the reasonably confident that every- sensible track will be how it Fed officials were able to calcu-ealeu- r|| II T| j pics are to be obliged to financing or accounting of a late thing is moving on schedule, addresses or avoids three main how big a loan BoNY j spread metering widely, say pic? needed to sort out the greatest Aside from its CGO role, the points, each more deep and within five years (unpopular Bank is installing Clearly the “golden share” SBfiafismess Wall Street had ever seen; equipment of difficult than the previous one. The gets its device, intended to resist owner- backroom the «- * own to monitor deal in $22.6bn, double the size of the First, Ministers find it the markets. As supervisor ship marauders, trill not solve bank itself. it awkward that private water also has to ensure that BoNY- The muddle of how these problems. If Ministers Fortunately. BoNY was able companies already exist, out- type crises do not occur. propose an “ Ofwat," similar to straighten itself out by lunch- Its side the PSBR, and provide water authorities officials, not surprisingly, have to Oftel. the analogy would be time the next day and the Fed about a quarter water kept la close touch of supply get their false. With the pic utilities got its loan back (It was secured ready for with the in England income Big and a few parts of Bang it v ^ Fed, whose costs and charges has against the mountain of Trea- Wales. With dividends limited sury to discipline, any "Ofwat” must securities that had5 piledlf In one major respect, the by law and low appeal to the By David Lascelles, Bankin Correspondent and costly as that maintain an arms-length rela- ^n^NvfchSmeS)!up on BoNVs doorstep). But itIt g City will differ from Wall general run of investors, des- would be) tionship. It suddenly was - - - or to live off cannot then a hair-raising tale of what — Street BoNY, as a specialist, pite easy-going though reliable the rates, hardly basis be the pic’s partner in arrang- can go wrong Inin a system as had won for itself 2S per cent management, these statutory a for real privatisation. highly Again, ing finance for environmental automated as the US rod the London institutions have good controls, and that between £25.000 and £40,000 to of the clearing in the US companies are a Victorian water and sewerage Treasury undertakings improvement, or pushing it to market which turns have drawn heavily on the US they install efficient and secure create a dealer position, inclnd- Treasury market—a concen- model that Ministers do not differ from gas ove'r designing put more resources into non- $100bn worth of securities computer systems to monitor ing all the back-up. Kleinwort tration which the UK now wish to spread more and electricity in having no a day. ft provided in operational paying projects. The water And a sober- markets—and setting up the dealing positions, execute trans- Benson, the merchant bank authorities are determined to widely. Yet if legislation or financial respon- ing lesson to the complex “ backroom avoid. sibility professionals would also be authorities as " opera- actions and supply the Bank which is teaming up with Although some firms threatens to change this com- inside the curtilage of to worried if they saw the regula- the scale of the rescue opera- tions that will have to settle with the daily trading informa- Grieveson Grant, the stock- axe setting up as specialists in fortable regime, there may be connected properties. Metering tory role in the river basin tion that they must constantly transactions. tion it needs to keep an eye on brokers, will have 350 of them the UK, too, none of them will trouble on the Tory back- may force a change in that, going to “Ofwat" rather than to be ready to mount to keep the Although US systems have the market.market, in the cavernous new trading account for a vital portion of benches: Peter Walker and with considerable cost implica- markets open. traditionaditi anallyally the pic, because they are com- beeni much more Though llacking the glamour floor it is equipping on the first the market Geoffrey Rippon carefully left tions for the operators. The Paul than mitted to integrated utility ser- As Ur Volcker.Volcker, chair- advancedtvanced than the British (one of the mmore visible “front floor of its building in Fen- The CGO Is also being set up the private water companies as legislation which sets out the man of the Fed, told Wall of with vices and river guardianship. a subse- Street investment banker Big Bang where high- church Street At 20,000 sq ft a system of payment in they were when setting up obligations of future pics will auen t congressional getting Whitehall off the investiga- likened them to a Ferrari and a flying dealers and salesmen are it will be one of the hugest in which the dealing banks guaran- regjonal water authorities in have to deal dearly with points Even tion of the crisis: carthorse), changing jobs at tee to industry's back may an illu- “That work they have also had six-figure Europe; even so,so. there will be pay sellers of securities, 1973. The new Government pro- that the industry and Whitehall be seem and may mundane and tedious to endure many more dramas. salaries, these backroom pre- another 100 positions in another then take it on themselves posals may therefore come as have kept on the shelf for sion. Water legislation in that is. until to collect — something goes Among the more notorious were parations are sucking up much part of the building, and most from the purchasers. close as they can to pretend- years, as well as new problems Europe, the US and UK shows wrong. Then it is seen as The essen- the great backroom crisis of the more money and human effort, of the big computer power will new electronic clearing ing that private water com- (such as staff transfers from that river basic problems keep tiiL system late 1960s when the equity But all the Big Bang groupings be at Tunbridge Wells In Kent installed by the banks panies are not there at alL local councils and pensions) rolling back to government The lesson was learnt not just markets had to be shut while accept, however reluctantly. blocks two yean ago (Chaps) also arising from privatisation. desks. In Britain they roll back “ Secondly, routine privatisa- in New York, but in London trading houses sorted out a that theseth are .vitaL If they are Ebbgate House by the Thames, avoids the danger of daylight to separate parts of Whitehall— tion is generally seen for the The third main issue is the where the Bank of England and chaotic snarl-up in their paper- to be viewed as credible overdrafts ” like the one Agriculture, the Welsh Office, Barclays de Zoete Wedd, the most difficult and important of 29 primary dealers are setting work, and more recently the partners in the markets. incurred by BoNY: UK hank* utilities as reversing an earlier and different parts of Environ- group consisting of Barclays all, for constitutional and prac- up a government securities mar- failures of fringe Treasury bond ** H the word gets around settle their net positions at the nationalisation process. But the ment under Ministers William Merchant Bank, de Zoete & tical reasons. Water authorities ket closely modelled on the US, trading houses Drysdale and among the institutions that you end of the day, instead of keep- public does not perceive the Wa]degrave and Patten. Sevan the stockbrokers, and are river basin guardians as John as part of the preparations for ESM which threatened some of cannot settle efficiently, that’s ing a running tally which can water authorities as a nationa- The White Paper will show wedd Duriacher the jobbers, is well as utility operators. As the news.” get badly skewed if incomings lised industry. A House of Big Bang—the deregulation of country's largest banks. bad said Mr John Little- < ngt»iiin an even bigger system whether the special features of g Commons report has just con- guardians, they have two roles. the UK securities markets on Bight from the start, the Bank wood who will have respond- with 600 positions on two floors. and outgoings get out of step. water authorities and river Nevertheless, finned that in this way they are One is regulatory, running a October 27. of England decided to ban one bility for administration at Mer- h„V"f thl _ „_.i„ the risk of basins are being grasped in correct than most system similar to planning con- Not that the UK gilt-edged of the greatest sources of coxy International Group, one of serious disruption and even more of them seeking a privatised structure or realise. assets sents which grants or refuses market win be anything like trouble on the US Treasury the largest of the new groupings disaster cannot be dismissed in may The of whether Ministers are hoping to nffirwh™ authorities permits to industry and farmers the size of the American. Today market: " repos highly lever- consisting of S. G. Warbui% a market where highly geared water were acquired clever J* to abstract more natural water come up with some word- it turns over the dealers wiD be acutely vulner- in 1974 mostly from local only £lbn a day, aged trading of borrowed merchant bank, AJkroyd A IS® ing when it is needed, later if government without compensa- or discharge more effluent. so if trading volume doubles or Treasury bonds. And unlike the Smithere, the Jobbers, and Rowe able to knock-on effects. The not sooner. But side-stepping Slock Exchange are setting UPup™ Bank must tion. The new regional units This process—subject to appeal even trebles after Big Bang, as US. all dealers in gilts will be & Pitman and Mullens, the have devised con- the real problems now—when the Central Office—the only to Ministers—bears on private some people expect, it will still subject to some form of regula- stockbrokers. — . tingency plans to pump liquidity took over such debt as was — . „ there is still time to get lca g house far transactions into the outstanding, hot all the property rights and is essen- amount only to what Wall tion. If they are not among the MIG has 180 people working ? ™ markets or bail out the informed public debate ahead Street handles over to “ gilts—in what used iwoe stricken dealer who threatens relevant assets. Arguably, the tially in the public domain by breakfast. 29 recognised by the Bank, they get 130,000 sq ft of dealing of legislation—will be a sure And while the US market will have to belong to one of the space and 465 trading positions 0 as the JobDew’ to bring everyone else down Treasury has little or no claim its character. Moreover, as J® *? paper-oasea sign that, in the privatisation trades no fewer dif- e days “ with him. What these plans are to the proceeds of privatisation utility operators the water than 35.000 self-regulatory bodies proposed ready in various buildings for ™ ,P programme, desperation is ferent trading. whether they even -exist— If It goes ahead. Again, the authorities are subject to the types of bonds, bills and in the Government's financial Big Bang—at at cost of about —or replacing respectable determin- notes issued took is something the Bank will not sewerage operations of water same system: at present White- by countless gov- Services Bill £14m-£15m. a sum not untypical On January 2, the CGO ation. electronic discuss far the good reason that authorities are conducted hall keeps a check on permits ernment agencies, the UK mar- Part of the Bank’s prepare- of the outlays budgeted by all its first step towards The author is a Fallow of Mansfield ket trades, at the most, 150. tions for Big Bang are to ensure the major groups. clearing. By the middle of this would only encourage reckless- almost everywhere by district they issue to themselves. College. Oxford. and an international river basin guardianship water consultant. Even so, the Bank of England that prospective dealer-brokers A rule-of-thumb is that it costs year it should be completely ness. council departments acting on But than the demands of the Occupying the airlines. London’s airports are highly hot seat valuable assets and Britain has From Mr M. Lewis Letters to the Editor made prudent use Of them by the Sir, — The last paragraph in developing them into inter- Peter Riddell’s article of Janu- world’s most successful ary 11 summarises the situation national airports system. perfectly. Michael Heseltine Clearly this is a field where more truth car rest of the world has teleohon the The about would find it very difficult to act differently from Mrs to learn from Britain thro we from them. ’ Thatcher if he ever got to 10, he recent mobfie axnmunica- FEATURES Monday-Friday -25pamntuteforthe&st Building societies insist that blame must fall on the manage- (Sir) Norman Payne. Downing Street tions revolution has resulted it a Many of the features available with 0730-1930 minute then 5p per 12 niily exceptionally, and with ment of that company. The Gatmick Airport. To deal with hyperinflation bewildering number o( produce, ceSular telephones are; hands-free oper- second unit. written consent, can any part of, Financial Services Bill does not West Sussex ’ and loosen the stranglehold the equipment and suppliers to this ex- atfon. number storage. AHothertimes - lOp fix the Erst minute unions had over industry was mortgaged properties he tell us how to avoid bad manage- porting maricet Ik speed dialling, on-hook ihen 5p per 48 second almost an impossible task occupied by persons other than ment rod more bureaucracy is Abolish capital and National Barfiofone. a pane? to i unit. certainly not answer. w diaEng. tost number re- needed a person with a very the borrowers and their the gains tax the fieri of mobfccocritiunicaikxK. m 4a!. call forwarding and *nprion*n**«nwA.i strong character to handle it families. The same position Turning-spetifically to the life J can guide you through the con- M a 'conference^ fealty. When time is so valuable to the She has been accused of being prevails with renovation loans assurance industry, the number From Mr L. Littman A fusion. M v&hie added nelwork ser- businessman, when profits can be made or uncaring regarding the unem- to which increasing numbers of instances where policyholders Sir,—In the run-tip to the W CELLULAR vires - VANS. - offering toston instant deastonsthecosJ of a ceflular ployment situation. If the TUC of people have to resort with have not received the full bene- Budget, it seems appropriate to JE *f* The technology behind voice mailbox, data and telephone must be considered as a real would influence its members to the Government’s rundown of fits promised under their draw attention once more to the ceil -M* ( liar radio text are available now and investment accept a 3 per cent basic wage grant aid. polities, has been quite insigni- anomaly of capital gains tax. has produced the Am | new tadfities constantly in order to hetpo\s customers monitor increase, unemployment would Avoidance of some part of ficant compared with the' Not only does its abolition most radical development of MjJ are and control the cost of derating cellular decrease dramatically. 1 doubt one’s income tax liability (the billions of pounds of benefits form part of the Conservative the telephone since fls invent- ATI beingdeveloped. a telephone. National Radwfone operates whether it would agree to this. sacred caw of politicians) and (and bonuses) dutifully paid Party’s manifesto, hut succes- ton. launched to January a | out The life assurance industry computer controfledbfflingsystem, viral for So who Is uncaring! the capital gains position both sive Chancellors have drawn 1985, ft enables the user to jf 7. I would sooner back a strong encourage house purchasers to in 1986 is stronger than ever attention to its iniquity and to makeand receivetelephone A« # o precise management control profes- In addition we also provide a head of government who would “trade up" throughout their thanks to prudent and the necessity for repealing or, cafe to and from any part of AHi fight adversity in spite of being working lives in order to acquire sional management of a very at the least, remedying its tbewrid. Mtmf: consultancy service on equipmentand v high calibre and is constantly principal can provided lease package to suftyou and BENEFITS maligned left right and centre an increasing store of value and, defects. The system ts rapkfiy jjtgpf WHO FROM adapting needs the every day. Yes, I'm sure as a common accompaniment, to tire of In the 1985 Budget, the Chan* expanding througtwutthe Agg||g your company NATUMAIRADIOFONE? public. Michael Heseltine would not tend to encourage an increasing cellor seemed about to perform cmnaiy and w3 cover A||t||S|jj NATIONALRAIHOFONE From Alhed Carpets and Arthur Cooper behave if I, for one. resent the implica- differently be were level of under-occupation of tbe long-overdue surgery* but weS over the planned Blg|Sgp National Radiofone is a private to Weetabix and Mr Williams, these are is his tion that the Industry is irres- in her sboes, and that existing housing stock. then his nerve failed him. All 8054 of the population company with years’ only a few of foe many legislators 10 mobile thousands of best asset pressure ponsible and that the did, Many MPs, housing he in the event; was to by My 1986. Already communications experience and regional companies and individuals who insist Michael Lewis. know better. This Bill is an groups and others seem incap- introduce indexation to allow fr covers most of the Head on foe best end expensive sledgehammer to Quarters to the key cities of London. National kadioione IS, Farm St, Wl. able of an unbiased interpreta- for inflation from 1982 onwards. crack a very small nut and who orotorwaynetworkand Birmingham. Manchester and Edinburgh. are proud to be serving them. The tion of the private rented It was a rather timid step experience and will pay in the end? The public, the major Cfly ccnnur- AO are equipped with sophisticated knowledge we have Minutes of statistics and still assert that because inflation since 1982 has bartons: ' course. the demand araputergoteimatdon-Iine terminals. is available to you the more penal strictures of been only in the region of 20 ff Aw O even for odularreSular car tele- installations are carried meetings John Rood. Jr COSTS out - nobody fs too of the Rent Acts have had per cent, while inflation from Jr r / From Mr G. Sharp 9, ConncolUs Avenue, phones has exceed- Perhaps fteiitost confusing area is that profeaonaUy and efficiently, often onthe bigonoosmatttobea nothing- to do with the dis- 1965, which is the base-line of jf Sir, I enjoyed Peter Riddell’s Folkestone, Kent edaBedallforecasts. of cost Bbso easytomatea&tftetepbone cHenrs premises, by our own skfBed - National Radfofano — appearance of rentable accom- this tax, has leaped by about 1 - article on the " Irresistible force appearcheapbyintroducxiigthemastbasic engineers, J modation, hence the absence of 800 per cent. \ 7i customer. at No 10" (January II). Are Investment model and offering cheap weekly lease — easing them. effect of this tax —— any case for The Tbe most be Cabinet minutes distorted by not posture of building societies on responsible for a good part of repaymentibytosb^onahighdepasiL HOWDOES ITWORK? disclosing a minority view or a ! projects “borrower only" occupation the unnecessary borrowing EQUIPMENT Aswith any product the more basic the ceMar taefco ts a mobile telephone, promised meeting, as alleged by From the Chairman. comraunjcarion system wtoch has allowed gives the lie to such assertions, indulged in by individuals and There are three mam types of frice-themorebastotheequiproeniis. a Mr Heseltine? Does the doctrine British Airports Authority cartelephaiesfromNatfonalRadiofbne sujgiantiai increase in the number of mobile | promotes homelessness and institutions alike, as a result of ceMyeteohoiiBavgMile of Cabinet responsibility mean 1 inefficient use of the existing Sirv—Anatole Kaletsky advo- their being forced to hold on Histy. andmSprouiarty as a c* cost from around £1.000 up to £2.000 to that a Minister must accept and hom housing stock, and does nothing cates (Lombard, January 3) to assets held for many years ' propagate a policy affecting his telepSwhlchbspeatofenite to aid mobility of the unem- malting better use of existing instead of realising them at a cats indeed.afltypesofvehides. ofogtonsregutred. own Ministry which he believes ^ . KzafmwnMiteimstoMyaxitotf ployed to areas offering employ- facilities before embarking on very substantial capital loss. typicaluser spends time in thecarare! Transport™* caM* telephones ctibv^ichvaiytasteeareoTdingtothermmber to be wrong? A . ment what he describes as “grandiose The billions of pounds borrowed fcal&mindfnlatocofttartwfth both cherts range to price fromjustbelowQflOO tojust olpotenbadsers. It is a long time since I was It Jensen. investment projects." for this purpose must be an over12,000to purchase. Each cell conbte a tow power base a of Parliament but I mflrheotSce Member inflated transmtner. a computer with 11, Stanhope Gardens. N4. That is. of course, sound important factor in the Secondlyasaffaraooirabteixa which Hand portable raDuIar telephones cost swircfmg have had many years of local ! advice. He was also right to amount of bank-lending, which f government experience and ^^^“ around£2 -4oo,D j Vf>\ cite Stansted. Unfortunately he itself must be partly responsible sp£t many minutes of meetings are J S-"vK--3 got it the wrong way round. for keeping interest rates up. inaccurate and do not disclose for those otwfte titoattaSSidi benefit Ce^tefephonc^tea^ ton as a remedy The development of Stansted Nor can it be argued that the M ® day pus depose depending on the • . y • \ criticism or advocacy of change users in the constratiton or agricutoe u assiwMd u B new channel without the user From Mr J. Rood is actually a good example of Exchequer would lose much “the top people." related industries and offierusers who find mode!and termsagreed nooemg. disliked by that iwairinp fan use of an existing revenue by the abolition the adaptation Sir,—So now we have It— of Cornmunicattonsb people and technology This censorship or tax, themselves not oniy outside the office, but CALLCHARGES remedy for all City ills—the asset. It is certainly not a as it Is obvious that Its rela- them. might be done by staff who know “ " “ ” aboout of thecae A quarterly rertol sin^lar to domestic - Financial Services Bill. I huge nor a new airport. tively low yield would be more .ss r- the views of their leaders, or a The third option is a compacr hand phonesfechargedatunder£6perweekand The Bill contains 174 pages of Indeed it already exists with than counterbalanced by the today, Chairman might demand it. Why portable cellular telephone which can it call charges vaty depending which tightly worded provisions which a runway that is, at present, greater amount of income tax 7pm not also in the case of Cabinet exercise minds of many under-utilised. paid by those who would then inroo briefcase and bided for the man. or network operator bchosea An example is lmwagwii.- minutes? will the senior people engaged in the Permission has been granted be encouraged to liquidate long- woman, abouttown. as follows:- I do not believe that Mr businesses for . held assets. Michael Heseltlne’s ** com- City’s financial for a new terminal there to be many months to come. built in phases. first phase, L. T. S. Littman, ’* were those of a bitter The plaints City Ashley Chase House, Minister of Defence. Unlike We are told that the for 7m-8m passengers a year, fro: Marketing Director, national BADfORME. FSEEPOSi; Shirley B90 1BR needs regulating but no one the single runway, is Abbotstory. viS;: many of his Cabinet colleagues using IwaUUl Id I I Please send I&e further Information on GeOtdar Radio Telephones. to know why. One or two scheduled for I he refused to be muraled and seems completion by >5 O l wooM tore a demonstration wftbota obHgatton. bad boys at Lloyd’s, a collapsed 1990. By that time neither Finance for Z accept the views of the Prime \ ^Be^epbonemefiromacartefetftoDetodeQMmstraretftecfePlease telephone me from a as telephone to demonstrate the clarity of Minister which ihe thought were bank, a misleading advertise- Heathrow nor Gatwick will be | the system. whole of able accommodate incr a deal ^ QglfllfnflUP to e is just possible she ment and suddenly the asing wrong. It From Sir John UaOabar may be wrong! the great City of London is passenger demand, despite the ~~ irresponsible needs addition of terminals. Sir, I have MOBILE COMMUNICATION^ Granville Sharp. corrupt, and new — followed with j .Company. to be taught a lesson. The problem is compounded interest the Westland develop- National Radfofooe limited. 31 Wilmington Close, Type of B are ments. 9 Monkspath Business Park. Shirley Hassocks, West Sussex. As in any business, there by the fact that passengers do A question which occurs j a few dissatisfied clients who not pass through the airports to me is that “How does British Sotflnftl West Mkfiands, B90 4W I Address. causes of have been misled or defrauded in a uniform flow throughout Aerospace propose to finance Telephone: 021-7X4 OlOQ.Tfeiex: 339095 Major .Telephone. but I believe such cases to be the day. as Hr Kaletsky has its participation in the consor- homelessness rare and normally dealt with in observed. This is more a reflec- tium? " Reliance on the tax- From Mr R. Jensen a proper and understanding tion of passenger needs, change? payer? Sir.—Your article (January manner by the companies con- in international time zones and (Sir) John MaHahar. 6) fails to identify two major cerned. If loss occurs due to the sight restrictions on operations 39, Arlington Bouse. causes of homelessness. collapse of a company, then the at airports around the world Arlington Street, 5WL i , -v- «£ FORALLYOURCOMMERCIAL PROPERTY, PHONE: Thewnrii; B mm I r FINANCIALTIMES jeading’distnouo' cfearthincwing '08008333831 equfcmsrrt *bl/OCTOCD HODGE A development by Standard Life* Wednesday January 15 1986 nVn mates afllhe difference. ,n r Giscard sees reduced role for Mitterrand Europe to THE LEX COLUMN i; v MRSB VALfiRYVALfcKY GISCARD cTEstaing, the European summit was a gather- the National Assembly would be Barre, bishis former prime minister, hit back at thei£ former French president, said mging of heads of government midand not dissolved within two years. who is demanding that Mr Mitter- yesterdayesterday that President Francois heads of state. He said he decided.decided, raidrand resign if the opposition wins w The former president said that af- f _j Loud and clear Mitterrandlitterrand should cease repre- when president in 1978, that if the ter the elections, the new govern- handsomely in the coming I S|PP I Miiner Wanna af Puwnwtan mm. aatJ nicfr kail u T_ —. _ a *. m olantiM senting France at European sum- Socialists and Communists had ment would have to seek a vote of elections. mils if the opposition won the forth- won the parliamentary elections of confidence before the National As- In Mr Mitterrand's view, the only coming parliamentary elections, that year, he would no longer have sembly in the first days of April It real power the president will have writes David Housego in Paris. attended European summits on be- was that vote, he said, that limited after March is right to dissolve the import at the Bank Elections for the National Assem- half of France. whom Mr Mitterrand could choose National Assembly, but Mr Giscard bly are due on March 16 and accord- But Mr Giscard d’Estaing left as prime minister. cTEstaing says that the President’s its associates, are proving curiously ing to most opinion polls, President open the possibility of Mr Mitter- The new government should im- powers over legislation are limited curbs The Bank Of England is faafing Ho«f to Anglo’s arguments about fi- Mitterrand’s Socialist Party is ex- rand's attending meetings of heads mediately abolish proportional rep- to a delaying power of 15 days. rather pleased with itself and has nancial strength, better use of capi- pected to lose its majority. That of state, such, as the Franco-African resentation, which was introduced Mr Giscard (TEstaing judged it By Paul Cheesetfght every reason to. Lastweek it moved tal assets and longer mine lives. would face Mr Mitterrand with the summit by the Socialists and under which important that President Mitter- In Brussels swiftly to endorse the base rate of are miffed partly because prospect of soldiering on as presi- Mr Giscard (TEstaing was cate- the March parliamentary elections rand should complete his seven- 12ft per cent which was being antic- They THE EUROPEAN COMMUNITY they are giving up four quoted dent and head of state even though gorical that Mr Mitterrand could are to be held. It should be replaced, year term of office, saying it had ipated by foe money market; yes- will shortly retaliate against US mines, with different cash flows he did not command a majority in not be forced to resign, but equally according to the former president, been his intention as president to terday it acted with equal decisive- steel imports restrictions by plating gearing to the gold price, for the National Assembly and would that he would not have the powers by the former system of single-con- complete his term if the left had ness to prevent local difficulties to and quotas on American sales of fertilis- vast, medium-grade, medium- have in contend with a right-wing, to prevent the opposition from car- stituency majority voting. won in 1978. He said that France the Cabinet from pushing up the one ers, art paper and beef grease. cost mine - in other words, an in- moderate or non-socialist prime rying out its programme. Mr Giscard d’Estaing also advo- needed to show that R was a major cost of home loans. In both cases, The quotas will be fixed to cut the Holders of President Steyn and minister. Mr Giscard (TEstaing is He gave a warning, however, that cated the new government’s bring- country that could respect the rules foe Bank took a deliberately high dex. value of such items imported into President Brand are notably upset one of a number of opposition fig- the most dangerous situation would ing in a constitutional amendment laid down in its constitution and profile and succeeded in restoring a - the Community by S50m, the that, the year between the an- ures named as a possible prime be if the parliamentary right the that would shorten the presidents face up to realities even if they semblance of order to a confused in to amount of trade the Community of the merger and the minister. neo-Gaullist RPR party and the term of office - currently seven were dtffinnlt. He a compari- market nouncements calculates it has lost as a result of the swap, they have made The former president, speaking centrist UDF- did not have a “clear years - and that that should be put son, with the US, saying that a The Bank may yet have to con- terms of the US decision on steeL losses to their interests to at a press conference that notional- and unambiguous majority” in to a referendum change of majority in the US Sen- cede a higher base rate - even after relative The Community move is a fur- operation of ly opens the election campaign for Man*. He said that France would Mr Giscard d'Estaing’s comments ate would in no way call into ques- yesterday's unambiguous message, the combined 21 per ther example of the irritable com- and they are the National Assembly, said that then be ‘ungovernable" and that put him at odds with Mr Raymond tion President Reagan's authority. three-month -sterling inter-bank cent and 13 per cent; mercial relations between the US an income gain. was trading stubbornly above 13 not satisfied by ( and the Community. However, stick, can only be justified by an act per cent - but at least it will have In effect, these holders have been (0> steps will be taken at the end ofthis of fa«th in foe existing manage- done everything within its power, told that they were overvaluing the week to reduce tension when Mr ment University short of reintroducing MLR, to keep Presidents - subsequently con- British Steel and GKN agree WQIy de Qercq, the EEC external Yesterday the Guinness team did rate at what it believes to be foe firmed by the need for new capital relations commissioner, meets Mr everything that could be expected appropriate level While last week's expenditure - as if they had any Clayton Yeutter, the US Trade to vindicate that faith. The Guin- rise in interest rates could be justi- source of information an the pres- head for Representative, in San Diego. ness drink is at last showing real on engineering steels venture fied on the grounds of a weak oil ent value of their holdings other volume growth, even allowing for This latest example of transatlan- price, continued strength in sterling than Anglo. But then Anglo is a tic tension «m»; when foe Reagan foe continued decline of the bottled BY IAN RODGER IN LONDON bank lending and the disappoint- powerful company and has fish oth- Lloyd’s Arfm ini Ttrwtifm mtfiatory ll rUv-iHivI product, and margins are being im- y ment of hopes that foe US discount er than short-term value to fry. - «*nd EVT! proved by a cost reduction pro- BRITISH STEEL and Guest Keen ent that the automotive and other enable UES to begin some long de- at the of December to hold rate would be cut, wntMng has hap- gramme that may take £15m a year and Nettlefolds have finally agreed, customer industries were unlikely layed capital investment projects, sales of semi-finished steel prod- pened between now and then to n|| lie out of annual overheads to the two inquiry after six years of on-and-off nego- to recover soon. particularly in mwti CT ucts down to 600,000 tonnes for justify a further increase. Nomura Securities that big breweries. Overall, the estab- tiations. to merge their engineering Of the five producers in the origi- 1988. The EEC held the move A return to more direct interest By Peter Riddell, Political Editor, was unjustified lished businesses have increased Sire is not everything, of course, steels and GKN*s forging business nal project, then called Phoenix H, GKNs steel and forging busi- and went against a rate management may partially re- In j profits by around per cent, des- but.it helps. And yesterday Nomura London I new steel sales restraint 18 in a joint venture with operating as- three - Duport, Round Oak Steel nesses made a trading profit of £4m agreement flect the greater emphasis being pite Securities, far tiie sets of about £400m (5576m), annual reared in the aqtumn jute the distraction of acquisitions. and away biggest SIB PATRICK NEILL, the Vice Works and the Hadfields subsidiary in the first half of 1985, while BSCs i placed an the exchange rate, but it I Officials The retail division has yet to show investment hanking group in Ja- sales of and a of the Twelve have i Chancellor of Oxford University, £600m combined of fawrhp — had to abandon the operations were at about the break- now is hard to see how, yesterday at 11,000. held two informal meetings, 1 its full potential and, while the di- pan, provided a timely reminder of will head the government inquiry workforce of overcrowded sector before an even point after heavy losses in the lat- least, the Bank could have signalled to called est yesterday, to detide on the na- gestion of Bell may make 1986 a foe resources which an internation- into the regulation of the Lloyd's, The new company, be agreement could be reached. 1984. Mr Pennington said UES its intentions to any more subtie United Engineering Steels, will be ture of the retaliation. The Commis- slower year for earnings growth, al securities firm can dedicate to a the London insurance market Even BSC and GKN between would begin life in profit and he fashion. There was no shortage in the only leading UK producer of sion will now present formal pro- the time to take profits is probably tittle old market like London. In the immense difficulty in re- was confident that it would not lose the discount market and, with the Mr Leon Brittan, the UK Trade them had not yet nigh. year to September, Nomura pro- many steels used in the automotive shares. posals for quotas on the three prod- short sterling futures contrati and Industry Secretary, conciling their interests. Although market now announced and engineering industries. It will ucts in question. duced pre-tax profits of SlJ23bn - smaller establishing a price for the pound Sir Patrick's appointment during GKI^s output was much Mr Peter Morrison, the junior in- the yen figures have too many begin trading on April L It is expected that the quotas early in the morning, foe customary than BSCs, it controlled substan- the House of Commons debate yes- in a dustry minister, said it was the Freegold noughts on the end to make much Mr John Pennington, manag g might be in place within a fortnight mid-day signal might in any case terday on the second reading of the tial portion of the end markets Government's intention that UES director of steels divi- The decision can *»ltgn sense - and boasted net worth at BSCs special wihritBariw!. be by a have come too late. The Bank The nteiger of Anglo American's Financial Services Bill, throu h its for in all financial re- may which will and chfaf g g g would “meet future qualified foe period-end of Sllbn. sion the first executive of majority vote. find that, as the liquidity of the fu- gold mining operations in the set up a new regulatory system for is contributing quirements without further re- "iJ UES, said yesterday no big plant BSC 58 per cent of Originally only fertiliser and , s art tures market grows, the most effec- Orange Free State is as straightfor- Nomura is most unlikely to de- iiiu City of London, financial markets the assets to UES and GKN the course to public-sector finance or i closures were planned in short paper considered the were suitable tive way of showing, its hand is ward as all such Anglo transactions vote more than a small fraction of bat which excludes Lloyd's. rest But as in some previous joint guarantees.* term. However, the new company items far quotas. But in the light of through open market operations to tend to be; and shareholders in tbe those assets to the strengthening of ventures with privatesector compa- Sir Patrick, currently Warden of would be seeking to rationalise its said it would receive abort Danish arid Irish fertiliser imports ! GKN Liffe itself. There is nothing like a mines should have little difficulty its London operations. It has not ap- tee h- All Souls and a distinguished law- rerolling mill?; in the Mid- nies in which BSC has been in- the two West £163m for assets transferred to from US, it was decided to wid- bear squeeze in a futures market to voting on the issue in Johannes- plied for a primary (dealers’s) li- yer, was the the volved, GKN will have 50 per cent Chairman of Coun- lands, where a total of 300 people UES, which represented a slight en foe list to include beef grease, get a message across. burg in a fortnight They me asked cence in foe new gilt-edged market of the voting shares. That has been cil for the Securities Industry from are employed. Last year, BSC premium os the worth attributed to thus lessening the burden an those to consolidate four mines and one and tbe Bank of England is keeping agreed to prevent BSC from domi- 1978 to 1985. That was an early at- closed its Tinsley Park works in them in its accounts. No borrowings two countries. holding company into foe world's its application for a banking licence nating tiie venture and to enable tempt to create a City-wide supervi- Sheffield with the loss of 800 jobs as were being transferred to UES. The largest gold mine and two holding to the pending tray. But, with a do- the Government to claim that the Guinness sory body based on self-regulation, a prelude to the deaL important thing, the company said, companies. Freegold wifi hold tbe mestic market share font must business has been privatised. which has been criticised for Discussions aimed at rationalis- was that it could invest more capi- Yesterday’s Guinness results assets; Ofsfi will hold at least half cause even Japanese anti-trust offi- muling lfttb* im Crocker says pact ing the UK engineering steel sector The Government has approved tal in higher-return businesses now were no match for a felting market the shares in Freegold; and Welkom cials to blush, Nomura has no op- creating producer the subscription by BSC of £55m for and, while None the less, the appointment of and a single be- that it no longer had to invest in no one seemed dis- will hold up to 25 per cent of Free- tion but to go overseas for growth. in 1980 preference shares and loan stock to such a prominent and independent gan when it became appar- steeL Namibia deal pleased with pre-tax profits up 22 gold and around 30 per cent of OfsiL At present it derives 20 per cent of figure as Sir Patrick, although with per cent to £86.lm, the share price The terms of the share exchange its revenues from international slipped to finish the day at the advantage of considerable exist- I still possible 5p 300p. took only a year to work out And business, a figure that it would like Ing City knowledge, was being pre- That may have been a harsh judg- by providing three vehicles, Anglo to see nearer 50 per cent in foe long By Tony Robinson sented as evidence of the Govern- Flotation of Lloyd Webber musical ment, but then Guinness shares are has prevented those institutions term. Last year revenues were a in Johannesburg the sort that sometimes contract ment’s determination to ensure limited to 5 per cent per gold share fraction short of S3bn; it does not pneumonia when the satisfactory regulation of Lloyd’s. DR CHESTER CROCKER, the US market from being forced to offload stock. take a computer to figure out what company gets lukewarm reception catches a cold. There are plenty of So what's all the fuss about? sort of competitive problems inter- The establishment of the Lloyd’s Assistant Secretary for African Af- profits to be taken and foe prem- Shareholders, and particularly national growth of that order could inquiry, officially confirmed last fairs, left South Africa last night af- IN ium to foe brewing sector, if is BY LUCY KE11AWAY LONDON that the ' US institutions which may be present in London, or for that mat- Friday, is intended to meet the ter intensive discussions with Presi- any longer foe appropriate yard- foe largest holders after Anglo and ter New York. widespread political concern about dent P.W. Botha and top South Afri- THE Really Useful Group of UK prolific and popular composer over bringing his company to market, the regulation of can officials on Namibia and the Lloyd’s after re- composer and impresario Andrew the next seven years. while the flotation will place a mini- cent large-scale alleged frauds. Governments apartheid reform Uoyd Webber has received a luke- As the application lists opened nwim value of on the 38 per policies. Mr Brittan made plain yesterday warm reception from prospective yesterday morning, the number of cent that he wifi retain in the group. "The US Government continues that the inquiry would cover the investors, with the public tender of- observers was almost as great as Most of the 17,000 applications re- to believe there is merit in pursuing whole administration and disciplin- fer of shares oversubscribed just the number of investors to ceived were from private individu- foe goal of a negotiated settlement ary framework and would not look one and a half times. By late last application forms for the new issue. p:., 1 ** %• i als, who have subscribed for shares to Namibia,” Dr Crocker told a merely at the operations of the 1982 night the price had not been set, but However, Mr Nigel Saxby-Soffe m at prices between 350p and 400p, Mr press conference before his depart Lloyd’s Act J. Henry Schroder Wagg, the issue's of Schroders denied yesterday that Saxby-Soffe said yesterday. The tore. : r**u> v sponsor, said it would be at a “de- the response was disappointing. Mr Brittan told MPs he had grave City of London is now expecting the On foe related question of Cuban ! cent margin" over the 320p mini- "We did not expect a lot of staggfog doubts about whether the Financial price to be set at the bottom of that troop withdrawals and foe civil war Strategic tender price, which values the for tender offer, Integration mum a and the market Services Bill was the appropriate range. in Angola between Cuban-backed group at £352m (550.6m). has been grotty recently, so on bal- instrument to cover Lloyd’s even if Angolan forces and Unite rebels, he The company is avehide for mu- ance I think the issue has been a The response to the ReaDy Useful it were decided that further protec- said he saw some possibility of sicals written by Andrew Lloyd great success." be said. Group compares to the massive tion was necessary, which had yet change. "Both skies recognise that Webber since 1978. It also owns the Mr Lloyd Webber will himself oversubscription of Laura Ashley, to be resolved. That was because of foe tmfitary track contains risks MANUFACTURING rights to all music written by the mafrp a minimum of (Hi" from the UK textiles' and fa-yhfon group. the difference between investors and there is a possibility that both CONTROL and policyholders at Lloyd's. will stand back after foe escalation However, because of the concern of the military conflict in recent expressed, be had decided to setup Thatcher plans counter-attack weeks," he said. an independent, full and rigorous Dr Crocker side-stepped a direct inquiry to assist in deciding Continued from Page 1 question on whether he had met Dr whether further action was Jonas Savimbi, the rebel Units rather than by the new Defence Mr Brittan bad told the Com- BAe’s involvement to the European necessary. leader in Zaire, before his talks in Minister, Mr George Younger. mons that he was not aware of any consortium was against the nation- Luanda and Cape Town by answer- Earlier, in a separate statement, It was also being suggested, how- letter from Sir Raymond Lygo al interest company should ing that he had held talks with Mr Douglas Hurd, the Home Secre- ever, that this apparent attempt to (chief executive of British Aero- withdraw. Zairean oftiwate tary, gave a general, although change the terms of the European space) to the Government It later Mr Brittan has denied applying Crocker delivered guarded, welcome to last Friday's offer might be followed in today's became known that a letter marked Dr a letter to any pressure on BAe, merely argu- President Botha report from Lord Roskill's commit- Commons debate by a categorical “private and confidential" from Sir from President ing that he warned Sir Raymond Ronald Reagan which covered both ^ o tee on fraud trials. Mr Hurd made statement from Mrs Thatcher that Austin Pearce, chairman of BAe, that of the wmingn^ ynmto regional issues and the US interest CC Threat to EEC plan London acts on borrowing cost ‘C -F -f *c F "C “F Continued from Page 1 JfB* C n 55 Mranft C s 48 s 16 55 Sittq F 8 48 The Continued IS 59 ftm s » et 5 15 59 minority non-Sodalist coali- would almost certainly prove com- from Page 1 Antii e &M F 1 34 _ _ — f 9 48 S 29 54 tion Run led I NW C 29 84 by Mr Schluter cannot ob- pletely unacceptable to the other 11 martial bills from discount hooves f 7 4S FnMn a 7 45 5 Z1 18 smm c 0 32 tain a majority for the reform to tiie EEC members. on Thursday and Friday and then Uma s 13 55 MM c 17 83 9 5 41 Staten, i c 11 52 Folketing (parliament) raptet/and fsatf times wwcenMteecorftpany** without SchRter made dear yester- I Bans s 20 88 Soon a 7 <5 St -3 27 Stef 8 K 11 the Mr fixed the same 12ft pec cent rate for SO Gtofcv s 15 59 c support Bsjtok $ 32 9 48 F » 64 of the Social Democrats, day that a referendum would con- a special Elba swap facility with 11 45 - — — j Mm F 52 Gnaw c 9 the largest party. the reforms- not membership cern the banking system which will I M a 15 53 HM Sn 4 18 c 10 so Tten 45 S The Social Democrats might of the EEC as such - hut Danish a^Wjg 17 SECTION II - COMPANIES AND MARKETS Lovell Showing the way in BICENTENARY telecommunications Two centuries strong and buiicfcig FINANCIALTIMES v 1786 //MW,, 1986 > Wednesday January 15 1986 FKKRAXTI Strong Libya buys ‘tar E.F. Hutton reshuffles Rhone Poulenc chief top rise at control of management posts First supports privatisation Italian BY WILLIAM HALL IN NEW YORK BY DAVID MARSH IN PARIS E. F. HUTTON, the big Wall Street The company, whose out-of-date and Company, in addition to his, Chicago MR LOIK Le Floch-Prigent, chair- long as share sales were dispersed based on the traded stock market oil group brokerage firm whose reputation management practices have come post as president and chief operat- man of France's state-owned chemi- among a larger number of inves- price of the FFr 1.14bn worth of has suffered from York Staff a series of man- under fire during the past year, is ing officer of the group. By Our New cals group Rhone Poulenc, yester- tors. certificate d'investissement By James Buxton in Rome agemeet mishaps in recent years, reorganising all its units, including FIRST CHICAGO, the 10th biggest day came out in favour of partial Rhone Poulenc last year made (non-voting preference shares) THE Libyan Government, through yesterday announced The new individual investmentt a further top its support staff and operations, in- denationalisation of the company. net profits “of the same order of launched in October. services group, which covers Hut-. US banking group, which has at- the Libyan Foreign Investment management reshuffle which the to two groups to *place authority for Le Floch said he favoured giv- magnitude* as the FFr l.B9bn ton's retail brokerage operations, traded the attention of US bank Mr The CIs have been trading re- Company (Lafco), has taken a ma- company described as " the broadest implementation as closely as possi- , regulators because of the erratic na- ing 15 to 20 per cent of the group's earned in 1984, when the company stake in Tamoil, the ailing reorganisation" will be headed by Mr Jerome H. cently at around FFr 360 compared jority in its history. ble to the point of sale" amounting to became France's third most profit- hire of its financial performance in capital to employees, with their minimum issue price of Italian oil company previously con- Hutton is following Miller, formerly executive vice- the lead of Mr Scott Pierce, formerly presi- a qualified endorsement of right- able group (after Elf Aquitaine and president, equity division. recent quarters, yesterday reported FFr 310. Foreign demand for the is- trolled by Mr Roger Tamrac. a Leb- other major Wail Street firms and dent of E. F. Hutton and Company, progressive- France). a 7 per cent rise in its fbnrth-quar- wing plans to privatise IBM sues has been very strong in recent anese businessman said to have en- splitting its business into two the broker dealer subsidiary, is be- Richard S. Locke will head1 Mr ter net income to 559.4m. ly leading companies taken over by Mr Le Floch, who was appointed partly because internation- joyed Saudi Arabian backing. “strategic months business groups," serving ing promoted to vice-chairman of the second group covering Hutton's the state in 1982. by the Socialist Government in July \ The group's full-year earnings of al investors see the possibility of will its consumer and Lafco contribute the bulk of a capita] markets the parent company where “he will institutional and capital markets' The best way to help Rhone Pou- 1982, said his aim for this year was S169m are almost double 19B4*s conversion of CIs into voting shares increase the clients. The reorganisation central- L60bn (S35.7m) in capi- have overall management respon- businesses. He was formerly execu-' lenc's development would be to to maintain profits at the 1985 level 586.4m which reflects a 12 per cent after general elections in March- tal of Tamoil. which will rise from ises the firm's operating and sup- sibilities and assume additional du- tive vice-president overseeing Hut-- drop in annual loan loss provisions raise fresh capital rather than sim- He admitted that the fall in the dol- port units Rhone Poulenc is one of the com- L12bn to L72bn. along customer Vines, ties.” Mr Robert Rittereiser, who ton's corporate and public finance ply floating the state's sharehold- lar was increasing competition with ! from the previous year's abnormal- centralises and panies which the right wing has The deal will give Libya access to restructures the pol- brought in 1 was from Merrill Lynch and fixed-income trading and will ly high 5464.8m. ing, and he added that a capital in- big US companies in the key chemi- icy-making process, and decentral- last year to strengthen Hutton’s pledged to return to private owner- I a network of more than 80Q filling retain responsibility for these Although First Chicago's 1985 crease of between FFr 4bn cals markets. But the group had ises administration and implemen- management team, has ship if, as expected, it emerges vic- stations and a refinery at Cremona been areas. Both men will report to Mr earnings are a. big improvement on (5540.5m) and FFr 6bn would be de- managed to make productivity im- the elections. in northern Italy which handles tation. named as president of E. F. Hutton Rittereiser. torious in March the previous year, profits are still sirable in coming years. provements which he hoped would about 3m tonnes of crude a year. It below the 1983 level of 8184m, or The main condition attached to compensate for this. Although he has left-wing politi- that the should therefore help Libya to sell S3 -92 per share. In 1985, First Chica- denationalisation would be Mr Le Floch said Rhone Poulenc cal views, Mr Le Floch said he was its crude production. go earned 52.84 per share for the 12 company's independence would be at present had a bourse capitalisar taking an essentially “pragmatic” preserved, which could be done as tion of roughly FFr 15bn. This was line over possible denationalisation. Lafco holds a 14 per cent stake in Texas Oil profit slides 43% months and SUM for the three months. FiaL a holding which was briefly the subject of controversy in Brit- In the final three mouths of 1985, ain last month because of Fiat’s in- as high gas supply hits First Chicago increased its loan loss price volvement with Sikorsky in bidding nvisions by 50 per cent to 590m. Setback for Volvo as Cardo for a stake in Westland, the UK hel- BY TERRY IN Eiowever, the increase in provisions DODSWORTH NEW YORK icopter company. was more than offset by a near TEXAS OIL and Gas, the Dallas- said the results in the current fiscal Wall Street has not been sanguine Mr Tamraz acquired the Italian S50xn jump in non-interest income based energy group that is planning year were affected by declining over its prospects during the cur- board rejects higher offer interest of the US company, Stan- in the three-month period. | a merger with US Steel, the na- wellhead prices for natural glut the the results dard Oil of Indiana, in gas and rent gas in US, Venture capital gains on the sale 1983, and tion's largest steel producer, suf- lower throughput and unit margins will do nothing to help the merger changed the company's name in Ita- of equity securities contributed an BY KEVIN DONE, NORDIC CORRESPONDENT, IN STOCKHOLM fered a 43 per cent decline in net on gas gathering operations. proposals that will be put to ly from Amaco to Tamoil. extra 522An in the fourth quarter i profits in the three months to No- shareholders on February 11. VOLVO, the Swedish automotive, Resistance to the original Volvo with combined sales of more than The group's operating perfor- compared with a year ago. Trading But in August last year Tamoil vember last year as it continued to So far, the merger plan has re- energy and food group, yesterday bid November 21 has 8bn at the time of the original i announced on Skr mance was also adversely affected and foreign exchange profits tre- was put into receivership by a Mi- suffer from abundant gas supplies. ceived a lukewarm response from suffered an important setback in its been building up for two main rea- bid. The division would have in- by milder weather than normal in bled to 526.9m. lan court at the request of the com- Net profits in the quarter, the investors. 3-27 bo that Cardo HilleshSg, the Cardo subsid- i SKr (5430m) bid for Cardo, sons, despite the fact the cluded its operating areas, and uncertain- For the year. First Chicago's net pany. It was said to have debts of first of Texas Oil's fiscal year, Mr Hutchison and Mr Hbghmd the investment group with industri- board originally said the price of- iary, with its plant breeding and ties over regulatory changes, which interest income on a tax equivalent UOObn. amounted to 547.4m, or 23 cents a emphasised, however, that they ex- al interests in I sugar, seeds and a interrupted basis rose by 16 per cent to SlJLbn fered by Volvo was acceptable at seeds operation. some of its gas Lafco is to hold 70 per cent or share, against S83_2ra, or 40 cents a pected a return to profits growth in plant genetics, when the Cardo board meeting on December 2. As a result of the deal with Fer- transportation. and non-interest income rose by 39 following share, in the same period of last the longer term. said the Tamoil the capital in- They new per cent 5658m. Non-interest ex- board recommended rejection of It has been felt increasingly that menta Volvo has made clear that it to crease. which was approved by year. Revenues fell by 30 per cent to Texas Oil's lower profits continue federal roles on gas delivery, which the offer. the terms failed to reflect the big plans to concentrate its biotechnolo- penses rose by 32 per cent to SI.lm. shareholders $327.7m from $471 a trend that last will give easier on Monday. Mr Tam- m. began year when producers access to group’s balance sheet contin- Only minutes before the Cardo jump in Swedish share prices since gy interests in the Fermenta group. The raz will retain per Mr William Hutchison, chairman, the group's earnings dropped to pipelines, will eventually board 10 cent and Sa- work in ued to improve during the year. The was due to meet Volvo an- November, and that Volvo's sur- As part of its original bid Volvo sea, a Geneva-based company and Forrest Hoglund, president. S276.8m from $346 Although the company’s favour 1 Mr -2m. primary capital ratio at the end ol nounced an improved offer, but this prise SKr 4-5bn agreement with intended to offer back to Cardo owned by shareholders in Italy, was rejected by the Cardo board, Fermenta. the Swedish biotechnolo- shareholders the present Cardo eq- 1985 had risen to 7.24 per cent com- Switzerland 1 and the Vatican, will which is to hold a meeting for gy and pharmaceutical group, an- uity portfolio by offering shares in a pared with 8.08 per cent 12 months hold 20 per cent shareholders next Wednesday last week, had created un- Conrail head before, and the volume of non-per- to nounced new company, Investment AB Car- Apple earnings rise forming assets at the end of the explain the reasons for its rejection. certainty about the future owner- do. Volvo yesterday improved its The new chairman ol Tamoil will Volvo already holds 21.5 cent group's year had fallen over SI00m to per ship of the Cardo bioteeb- bid to allow for the big jump in the be Mr Mohammed Abduljawad of by | Lafco. The mana in defends 5657m. At the end of 1985 First Chi- of the Cardo equity, Mr Pehr GyP nology interests. value of this equity portfolio by new g g director chairman, is Giorgio Mazzanti, despite fall in sales cago boasted assets of S38.9bn, lenhammar, the Volvo is Volvo said it planned to merge some SKr 550m to SKr 2.6bn since Mr who was j a member of the Cardo hoard but Cardo's industrial activities with the November offer. chairman of the Italian state ener- independence Among the other US banks to re- he did not take part in yesterday’s Probendor, its wholly owned food The offer to Cardo shareholders gy concern ENI until he resigned BY LOUISE KEHOE IN SAN FRANCISCO port yesterday. First Pennsylvania , meeting. subsidiary creating a new division expires on January 31 during a political scandal in 1979. By Our New York Staff Corporation announced an 6 per APPLE COMPUTER, the Califor- Steve Jobs in the past, Mr John cent drop in 1985 net income to nia-based personal computer manu- Sculley, president, emphasised the MR STANLEY CRANE, chairman S2?.6m or SO .35 per share. facturer, yesterday reported record positive in the company’s perfor- of ConraH . the government- Surrtrust Ranks, 'which was first-quarter earnings despite a 23 mance during the Christinas sales controlled US East Coast railway, formed after the merger of Trust per cent drop in sales. period. made a strong plea for indepen- Company of Georgia and the Flori- Net earnings rose 23 per cent to dence yesterday as he announced The keys to our success were da-based Son Banks, reported a 99 S56J9m or 91 cents a share in the figures showing record earnings of All these securitiesharing been sold, this announcement appears as a matter of record only. gross margin improvements and per cent rise in 1985 net income to quarter ended December 27, com- 5110m in the final quarter ol last higher inventory turns. Sales were 51669m, or S3 .34 per share. pared to $46.1m or 75 cents a share year. as we expected, profitability was at The Miami-based Southeast for the first quarter of fiscal 1985. The company’s performance “un- record levels, and our balance sheet Banking Corporation, whose finan- Net sales for the quarter were derscores our position, as a solid cial performance has lagged behind continued to strengthen." said Mr viable corporation," he said- $53 3.9m. down from last year's Sculley. that of many of its rivals in recent record $698.3m. Mr Crane's comments were di- years, reported a per rise in controversial plans 1 cent Operating income rose from This week Apple is expected to rected against its 1985 net income to S64Jhn, or $91 a year ago to 5113.9m in the introduce an improved verson of by the US Department of Transpor- m 53.40 per share. Its fourth-quarter tation the stake SAINSBURY’S quarter of 1986. its Macintosh personal computer. to sell Government first earnings rose by 36 per cent to its recent trou- Plus" will incorporate in the group to Norfolk Southern, Determined to put The "Mac a 519.6m, or per share. railway group. the S1.05 bles - losses, layoffs and the stormy larger memory and up-graded disk another He and company’s unions support a rival exit of its founder and chairman Mr drive. proposal made tty Morgan Stanley, the New York investment bank, to Sharp gains J Sainsbury pic float off the Government’s share- Learjet, Piaggio end venture holding through a public offering. Last year’s fourth-quarter earn- by Johnnies BY ALAN FRIEDMAN IN MILAN ings compare to $90m in the same of 1984 and 5440m for the GATES LEARJET, the US aircraft nies pledged to invest more than period in quarter whole of 1985. In 1984, the group maker, has withdrawn from a joint SIQOm in the wide-body turbojet. earned 5500m, but was sheltered for By Kenneth Menton, Mining venture with Rinaldo Piaggio of Ita- Mr Rinaldo Piaggio. chairman of Issue of up to half the year by paying wages be- Editor, in London ly to manufacture a new generation the Genoa-based aircraft company, the split had been "amicable" low the industry scale under terms of business aircraft known as the said THE LATEST increases in profits that trial flights would go worked out for a Government GF-180. No reason was given for the and of South African gold mines which rescue. termination. ahead this spring. “The situation at have received a record domestic Learjet meant that In the final quarter Conrail had Gates our gold price in the December quarter interrupt- achieved its results while paying The joint venture was formed in collaboration had to be come from the companies in the Jo- ed," Mr Piaggio said in a statement the higher, industry-scale wages November 1983 when the compa- hannesburg Consolidated (“John- £100,000,000 per cent. Notes 1993 nies”) and Anglovaal groups. 10% The marginal Western Areas shows up particularly well with a December quarter net profit of R24m {S9-94m). This is 87 per cent £5y drfe ffian-eetzry, /cTdK above the September quarter level Initial which, in turn, showed an increase of which £60,000,000 has been issued as the Tranche cne Ait yea/& of 158 per cent over that for the pre- vious three months. try** Gold production at Randfontein at an Issue Price of 100 per cent. has decreased in line with a tall in ore grade. But costs have been well maintained and this together with the high gold price and a reduction in tax has left the mine with a 31 per cent increase in earnings. The Anglovaal group’s Harte- beestfontein has also enjoyed high- er revenue from uranium and des- S. G. Warburg & Co. Ltd. pite increased tax has raised net profits by 38.7 per cent. Loraine has lifted its working surplus bat the Banque Bruxelles Lambert S.A. Banque Paribas Capital Markets Limited onset of tax liability has resulted in THE PRIVATEANK a slightly lower net profit ESTABLISHED 1886 Barclays Merchant Bank Limited Baring Brothers & Co., Limited Agnelli family County Bank Limited Credit Suisse First Boston Limited group result Dresdner Bank Aktiengesellschaft Genossenschaftliche Zentralbank AG-Vienna By Our MBan Correspondent IFX, the Agnelli family holding vehi- Goldman Sachs International Corp. Lloyds Merchant Bank Limited cle which controls 31_3 per cent of the Fiat group, yesterday an- nounced a XJMbn (S67.Sm) consoli- Samuel Montagu & Co. Limited Morgan Guaranty Ltd dated net profit for the nine months which ended in March 1985. There are no comparable figures because Nomura International Limited Salomon Brothers International Limited IFI has switched its year-end from June March. to Swiss Bank Corporation International Union Bank of Switzerland (Securities) In the 12 months which ended in Limited Limited June 1984, JFI produced a consoli- dated net profit of L58bn. Aside Wood Gundy Inc. Yamaichi International (Europe) Limited from its Fiat stake, IFI also owns important shareholdings in the Id Rinascente department stores group, the Unicem cement busi- E. GUTZWJLLER A CTE BANGUI ERS ness, Toro insurance CH-4001 BASLE 7KAUFHAUSGASSE SWITZERLAND and ibeJuven- tus football team, j . . . 1 . f . . January 15 1986 18 Financial Times Wednesday NOTICE OFPREPAYMENT INTERNATIONAL COMPANIES and FINANCE o reports |THEBAT»MABAI«,BUj An ambitious Dutch bank opens a London office. David Lascelles tlnmrporafint in Japan) Hitch hits Turner’s U-S'$20,000,000 Floating Rate Certificates chain orDeposit bid for MGM-UA Rabobank forms link in international the Unico group of five (where it member of Maturing 18to February, 1987, BY OUR NEW STAFF AGRICULTURAL banks have been tion of 937 tiny independent com- the farm fending business YORK and European co-operative banks. This callable in February, 1986 amnng thg slowest to expand inter- munity banks with central bank, has 90 per cent of the market) a hopes to open an office in it has year it MR TED TURNER, the flamboyant As part of the deal, Mr Turner nationally. It is only in the last two Rabobank Nederland, which admin- in the savings market (where Notice '» hereby given in ac- Singapore and extend its activities TV entrepreneur from Atlanta, ap- agreed to sen United Artists back to years that Credit Agricole, the isters the group, sets its and per cent). This does, however, ex- cordance with the targets 40 conditions of eco- in the Far East. pears to be having difficulties com- Mr Kirk Kerkorian, the financier, workfs largest, and Norinchukin. handles its affairs in the wholesale pose it to the vagaries of rural theabove Certificates ofDeposit Mr Lardmois prefers to talk in pleting his $l,5bn acquisition of for about SHOm. its Japanese counterpart, have markets. nomics. It suffered a sharp down- (the ’Certificates’) as printed on of financing agri-business MGM-UA Entertainment, the Hol- opened branches in 2932 when the terms the reverse of the Certificates in London. The bank has no owners, though tarn in earnings Two months later the terms were worst. rather than farming, partly because lywood film production and distri- The latest of the breed to arrive is local farmers are members - a sta- Dutch recession was at its that The Saitama Bank, Ltd which covers revised and MGM-UA shareholders its it is a broader term will bution group. Rabobank of the Netherlands; its tus which rofllrrec ihom li‘ah(A for But Mowing a drive to diversify (the ’Bank’) prepay all the lending, but were offered S25 a share in cash ac- farming-related also outstanding branch will be officially opened to- group's losses, though it also enti- lending agri-business loans now Certificates on MGM-UA and Mr Turner's Turn- ; Utile direct and one share id & new issue of port- because Rabobank does 18th February, 1986 (the ‘Pre- morrow. Fittingly, the ceremony tles ihpm to credit, sometimes cm count foronly 30 per cent of its er Broadcasting Systems an- TBS preferred stock for each of din to farms abroad. at their will has also launched a ten g payment Date”), princi- that they be conducted by Mr Pierre favourable terms. In practice, this folio. Rabobank nounced were having dis- their shares. In the US, where Its expansion pal amount. Lardinoifi, best known as foe for- bability has never materialised. big lobbying effort in The Hague to cussions “with a view to a possible has been greatest, Rabobank has a Payment of the principal Earlier this month a special mer EEC Agricultural Commission- Rabobank has always retained all remove (or share in) the tax privi- restructuring of the agreement" sheet of S1.7bn and $500m amount, together with accrued er, who is chairman big competi- balance The two companies said they were shareholders’ meeting to vote on now of the its profits, and a catastrophe would leges. enjoyed by its interest to the Prepayment of additional commitments, and has the acquisition was postponed be- bank’s executive beard. have to wipe out all its FI ' Afl companies mentioned are incorporated In the Republic of South Africa. leveraged buy-out bid A8 financial 6gurae for the (roertar end progressive figures for the current year to date, except ihese of Loraine Gm J Mines, Lhniied for trie quarter and flnanciel yw onded 30 September 1985. are ur«. edited. . BY FMAMC1AL STAFF Rate of exchange on 31 Deeet.-bar 1865, RUM - OX. CUM - R3JKJ. OUA Development raMiRs given are the actual sampling results. No allowance has been made for SYBRON, foe US medical and den- investors to the buy-out adjuemtar as necessary in trie valuation of the corresponding ore rororves. tal products manufacturer, has re- Sybron. based in Rochester. New Shareholders requiring copies of these reports regularly each quarter, should write to the Mining companies' reports — Quarter ended 31 December 1385 Secretaries. Angto-Trensveal Trustees limited. 295 Regan Street London W1R 8ST. ceived its second buy-out proposal York; had revenues of $50lm and in four nuwitha through a $266m all- net income of Sl9-2m in 1084, when cash offer from Montgomery Secu- it completed a big restructuring. Loraine Gold Mines# Limited (continued) rities and Morgan Guaranty Trust Apart from and dental The suitors plan to take the com- products it also makes laboratory MS CelM pany private in a leveraged buyout equipment special ffhwnireb The first offer, made in September, Dr Richard Prapper, managing Issued capital: 112 000 000 stum of 10 cants each 31 Dae. ramn from management end was general partner ot Montgomery laeued capital: 4316 678 shares of 50 cents eedr Sbi month* to “to terminated a month later. Medical Ventures, a limited part- The latest suitors propose to offer nership formed by Montgomery 31 31 Dec. Ffoendei results 31 Dec. 30 Sept. 31 Working profit -gold mining 17004 10245 42202 Operating results *to Dec. $24 for each Sybron common share and a unit of Morgan Guaranty, Operating reredts 1986 1985 38B Profit from sales of uranium oxide, Gold and S3&.40 for each preferred share. saidi“Sybron's unusual structure of OremiBfld 783000 782000 1565 000 Ore milled t 89500 87800 177300 pyrite and treatment of stockpRed calcine* Gold recovered ... 720336 1433&40 Gold recovered kg 847.79 889A8 1717,67 Sybron’s shares dosed at $21% on small independent companies, each Non-mining income VMd :::::: St 812 ’"W 9.2 Yield gft 95 93 S3 londay, «nd in early trading with their own channels of distribu- Revenue IVt fitted 243.73 199J56 221.60 Revenue Rft muled 264JB9 2Z7J» 2-UU5 Com RftmHIed 8950 8585 87.73 Costs RftmHfad 99,61 99,02 99.32 interns paid, stores adjustment yesterday ruse S% to $22%. tion, will provide operating syner- Profit RftmNfod 184£3 113A0 13343 Profit Rlt milled 165.27 128^4 146L93 and service benefits Mr Jack Levin, a general partner gies for many of our present and fu- Revenue .... moo 190 842 156050 348 Revenue ROOO 23707 '19953 ' 43680 Trttxjtmg royalty payable Costs .... moo 70 082 67216 137 of Montgomery Securities, stud the ture investments. Consequently, I Costs RON 891$ 9694 17608 Profit before taxation Profit 120760 88834 308594 19318 50226 Profit ROW 14792 11 259 26051 Taxation 7203 group had a proposal from Morgan believe we can provide additional UiiW—ortds Guaranty to lead a syndicate of value tn Sybron in excess of that Futptmaud 783000 782000 1566000 Profit after taxation 12115 Wwfclngrprofft^goW mining 14792 11259 26051 Capita: expenditure hantre institutions and' other which currently easts." Oxide produced- .. 109061 110266 219317 1 1076 YieM 0.14 0.14 0.14 Non-mining income 893 1 TOO 2093 Appropriation tor loan repayments 15685 12458 28144 and adjustments for eutraocy fluctuations Woridng profit— gold mining Prospecting expenditure 1501 606 2 106 120760 88834 209594 Dividend ..... Profit from sales of uranium oxide. Profil before taxation 1418* 11854 26038 pyrin end sulphuric 1111 I Arco to settle $243m tax bill 13 584 Taxation 6125 6925 13050 SS si Non-miningning income 18113 Profit after taxation * 8059 4929 12868 BY OUR FINANCIAL STAFF 141 256 Advanced 8307 Interest paid 414 Capital expendfowe 8079 30955 » 4298 1192 5490 Sampling results Net royalty payments 4977 Dividends 4317 - 4317 ATLANTIC RICHFIELD has Bay oilfield and of the Alaska Pipe- . IGmberivy reefs .Sampled - - naflt before tendon end State's 8615 1192 - 9807 m. 80 SO agreed to pay Alaska taxes of line — on -«U transported to other here of profit. 135885 1Q1062 336 9Z7 Channel wtotir ...... cm 73 87 Ststelowr levy refund 335 - 335 22,43m to resolve a long-standing states, and it was taxed there as Taxati on and State's share of profit 90222 68156 158378 Channel value ... gft 12J 1A 1192 472 8290 9 . cm.gft 141 Tito follows the Profit after taxation and State's 909 dispute. mvc retfec- welL Basal reef shero of profit tion this week the US Supreme The suit concerned $2bn of •- by tdxmt Sampled , m 376 432 Capitol expenditure ...... width •9 • Advanced m 1807 1195 3 002 Channel ... anon. 9 . .Court of ?n appeal by severalmajor taxes paM from 1978' through 1981 '• Appropriation for loan repayments Sampling Channel veto* .'. ... gft 77.1 results: 502 oil groups which challenged the (when toe tax was replaced by an- Dividends Sampled nt 645 401 1046 .ortgft • 671 945 Eldorado Channel width cm 194 211 201 reefs . constitutionality of the tax. other levy). Alaska claimed profits Soroftfed State loan levy refund Channel value gft 1,6 92 4,7 600 740 The companies -Arco, British Pe- earned from Alaskan o3 production Channel width ... cm 102 101 cm .gft 315 1 935 S36 Chennalvahie ... gft 12* 9.1 troleum, Exxon and Standard Oil of in the period totalled $21bn. VNogmyTTamcaom gft .cm. 1225 819 Ohio - claimed the levy, was unlaw- Arco said 1986 earnings would Advanced 8318 6199 14517 The Company has sold portions of its future gold production on a ruilyJradgsd Total -ai: reefs Sampling results on Voai Reef basis as detailed below: Sampled .....n» 1126 1222 ful because it amounted to double not be affected by the payment as it Saiimptad. Channel width ... cmon 69 68 taxation. Alaska taxed the compa- is covered by previously established Channel width cm Channel valua ... gft Quarter iting gold 107 ICU Channel value -gold s Kg of odd value per kg sold nies - of the oft March 1996 . cm-gft 1023 894 main owners Prudhoe reserves. cm.gft 2793 R23356 June 1986 4683 R24991 —uranium oxide.... fcgft September 1986 124.4 cm-kgft 3UI R2E61S hi terms of the Company's articles of association, the directors' burrowing 1 powers era limited to R35 DOO 000 At 31 December borrowings totalled In terms of the Company * snides of association. .Erectors' Revenue derived from toe sale of gold Mwe into account the rasuka of hedging U.S. Quarterly Results the borrowing 377 000 Ria 289 WWI of which tong-term be- icnrii idj amounted to pow rs ere limited to R50 OOOOOQ. 31 r transactions. 55 e At December bo rowings totalled R5 864 ONI 1584: R5 752 0001 and short-term to R1 113 OOO (1984: R 12 517 ON). R965SOOQ (1984: R12 4790001 of which long-term borrowings amounted tn addition theCtxnpany has sold forward a total of U334 020 000 for delivery to R7 235 000 (1984: R9 329 000} end short-term to R2 420 000 (1984: R3 ISO OOC equal monthly amounts during the period January to December 1996 at an aver- Mimvi COLT MDUSTRKS age exrttengeraM of R1 - U-SjSO.3611. .'h« sold portions of its future gold production on a fuBytiedgad lied below: The i ny has sold portions of its foture gold production on a fuDy-hedgod Otvigtancl Med below: 1809-6* 1884-9 1888 Interim dividend No. 71 of 100 cams per share, declared in November 1995, wfll s be paid on or shorn 31 January 1906. s a r March 1386 ms* asm 4009m March 1886 ”*-RS 3$S-“ Capital expenditure Jh*«a1986 1 3062 R23 640 1**» 1® Op. net profits June 1886 2966.9 R24490 September 344m 2&6m Outstanding commitments at 31 December 1985 are estimated at R1 1968 96*3 R24256 flteB September 1968 933.1 R26385 5170W 003 Op. oat par stare U2 147 (30 September 1985: R2S5 0001. Revemre derived from the wte of gold totes Into account the results of hedging Revenue derived front the sale of gold takes into account the results of hedging transactions. Forendon behaB of the board jn addition thejCompany has eold forward a total of US-S26 4NON lor delivery In addition the Company has sold forward » total of U.S4M4 220 000 for delivery RACt Wilson ui equal monthly emoums during the period January to Oecamber 1986 at equal an n monthly amounts during the period January » December 1886 at on DJ. Crowe avenge exchange rate of R1 * U5J0J611. average exchange rale of R1 = U. 5-50361 1. Dividend Until, nuntrecl Dtvidond No. of 75 cents per share, Intenm dwidend No. 80 of 4Scants per (hare.dedered in November 1985, wUt be •8mm 8 declared in October 1985 (of the previous financial year, was paid part on or about 31 January 1986. 15 January 1986 in December 1985. 1888 1884 Fourlti quarter 1888 1884 Capitad ixpifttHiiu# State’s share of profit _ S • Expenditure an ihe addition#! gold recovery plant STJ5m referred to in die 1965 annual No state's share of profit was payable as the Company has ani Ilos* far Mr ne venire 738m Mr report will commence (hiring the first quarter of 1986. Accordingly, capital ex- this purpose. 387m Op. net toes 383M 6jam penditure for the current financial year is estimated the Netpereriree. 3 to be of order of Op. net lone per eftatn. 1.12 R45 million. 082 Outstanding commitments •« 31 December 1985 era estimated at R1 738000 oqromfrmerg* «3f Oecamber 198S era estimated ok Rl 115 ON 130 September 1965: R4 734 000k rex 1985: Rl 201 000). For end on behalf of the board Iseued capital: 54 NO ON shares of 50 cents each OJ. Crowe uQtmctorS"vaors For and on behaff of the board W.W. Melon Quarter Ctoartov Six months DJ. Crowe Dinctors 1 ended tawMta non. UL&. OJ. Owl , Evans. refad ended RJU). Wilson CP GusfiWWSuits'Mihn.CkM&Mmll.TlFMontfiBJ."i- WA ua $30,000,000 vgnEmmm 31 Dec. 40 Sept. 31 Dec. aiywr: ajjjomr. Ottrerad. W4 Ewre. Hvreav oils. AAfirrunrtrrciM- JHJ. Bur**, PJ. tusnc*. M-0 Hantm. l«hgr KM. Hedh>e.aCKnfib C4, Stiff. XE. N fc. 1995 1995 Wlift, llabo. Owe6 MauriL S.W. van dor CoB. HJUS VI A D V*HiQn IMS Wsan.GS.Vm OremWed 722 ON 093 ON 1415 ON Abwnm tbwcrorvfS. Onto. G6 term, PJ. Cuuko. P. Ta*»arC IS January 1999 wtah 22752 19 693 42 445 15 January 1988 33165 23181 62348 Copper. 22345 19 593 41938 Zinc ... 35128 28G60 63 BN Q> ROOO ROW ROW (Doned&Sefed kteCTtoaUd S "• Ktt&MI Operating profit 23894 15834 39 528 are eg amnia Noivnaning income 2054 1869 3923 iroued Capital: 8 068 448 shares of 1%5 cants each Issued capital: 4 160 ON shares of ID cents each Profit before taxation 25748 17 703 43451 zentrAlsparkAsse Quarw Quarter 5w months Taxation 14 779 10715 25494 •refad •ndod ^£S®d Profit after xation 31 Dec. 38 Sept 31 Ore. ta ...... 10999 6988 17957 UND KDMMERZIALBANK-!WIEN 1986 1MB T98S Capital exponditu reftrecoupments: 60 <11701 111101 31 Sondst 195 500 193 IN 388 600 Dec 20 Sept. 31 Owl 1988 Goto recoveredre 129.06 131 JO 26028 1988 1906 Floating Rate Subordinated Development rmanriri re Notes Due 1991 YteW ::::::: S an on 0,87 rafu ROW HOW ROW Advanced l Revenue . Rft treated 17^6 15J5 1046 402 4J7 839 Sa es of antimony concentrates lera Costs Rft treated 1004 9.97 1O01 realisation charges 6333 3345 9678 Profit Rft treated Interest Rate 7.62 5J8 6.45 Gold Seles 5996 5043 1: 038 per annum Revenue ROOD 3462 2944 6396 OespatAes. which vary from quarter to quarter, are brought to account at their 8%% estimated Sundry muting income 29 21 Coats ROW 1963 1925 3888 receivable vstue. Operating profit takes into account adjustments foj- 50 j Profit...... RON 1489 1019 2508 towing final price deform rations on despatches made during previous Interest Period quanm. 12357 8409 • 207*8 15th January 1986 Walking ROOD RWO ROM flwMaid costs 7366 7198 14564 15th July 1986 Working profit 1489 1019 Imenm rfividend No. 2508 5 of 30 cents per share in respect of the half-year ended Working profit 4991 1211 620? Interest Amount per Non-mmng Income . 130 150 280 31 Oecamber 1985 wres declared January 1386 and is on 2 payable on or about 17 Non-mirung income 104 iw 2S3 1613 1188 3768 January 1986. U.S. S6^XX) Note due 5095 1 300 6456 Royalties paid 75 49 124 Capital ex euJhe n 15th July 1986 p e Prospecting expenditure and U.S.S216.82 Profit boforo taxation 1544 1120 There were no 2664 outstondng commitments at 31 December 1985 {30 September interest paid 290 213 . 503 Taxation 802 508 131Q 1986: nil). Profit afrer taxation 742 Profit before taxation 480s 1147 5952 CredSt .. 612 1354 For and on behalf Suisse First Boston cf foe board Taxation 67S - 678 Limited Uprul expenditure .. 230 204 434 DJ. Crowe Okmaots Agent Bank Drwdend 303 303 R/uD.wason^^ Profit ahsrtaxation 4 130 UP 5277 533 204 737 Capital expenditure 3835 638 4473 OmamH 12« 1248 - has sold portions of it* future gold production on s fuByJtedged SQB3 638 5 721 15 January 1986 US$200,000,000 Average raeKsdhle vatoeparlMMld The revenue Fuji International March 1996 R232S8 from the sale erf antimony concentrates brought to account each Finance (HK) Limited June 1988 372 R24809 quarter is based on actual atupmanta made, which can vary coraiderefatv From September 1986 18,7 FQ8446 quarter to quarter. Guaranteed Floating Rate Revenue derived from me eala of gold tafces into accoura the results of hedy'ng Dividend Notes Due 1996 "•e-NfrCKTOMS Interim tfividend No.?6 of 30 cents per share wae dedarad in December 1985 In addition the Company tms sold toward a total of U.S26M Mo for deRvefV in «nd is payable in February 1886. famed opiaf: 16368 986 shares of each RU» Cfa'ftal expandrture > Diridsnd Ouudandihg Queresr Outre Horeicfal commitments at 31 December 1985 are estimated at R3220N as to paymeni of principal and interest ended ended year rented <30 September 1985: R2 682 000), by 31 Dec. The Fuji Operating results 1985 For and on beheft of the board Bank, Limited Orenufied 1612 31 Dwrt,Br 1885 386 ON 402000 ON PJ. Ratio t*S>mhUKm*.rmu»k» afl* « R430C0 Gold 0™6™* ^SSlimao? recovered ... 2101.38 2186^9 S 02346 RAJD WHwn Yield grt M 5.4 5.6 tO’Wmwr'). Wllaaii For and on behalf of ihe board Revenue tVt milled 14059 11832 110.77 ^r*nS?iTl RXD. FPvnnw eawkiranL Costs r-.PJ.CHnw*. h“ RAD. Wilson Dincuts RftmHIed 9054 9233 8439 w&tfS's&ss s ^- a Crowe Profit 25^9 2018 OJ. RftmBed 4005 r: ' ,T interest WWo °n ** retew l MJX~r~ payment dace, July IS »r» Revenue .... ROOO 54269 <7564 178565 !£2Zl&g 19£?*iJ">n res ect January 1985 nomiiia] of the Notes will P USSI0.00I Costs .... ROOO 37265 37319 136363 15 be US$424 ? 2_ -British Profit .... ROOO 17004 10245 42202 ~~ _ 15 January 1388 gresenp Jonuary IS, 1986. London 2fp Cirifaank, NA (CSH Depc), Agent Bank CfTIBAN Financial Times Wednesday January 15 1986 19 INTERNATIONAL COMPANIES and FINANCE Exchanges rush to issue Computer Eurodollar floaters well received trial trading BY MAGGIE URRY THE EURODOLLAR band mar- Libid (Limean), with commis- In the secondary market is leading a two-tranche deal Ecu futures contracts for Paris basis OesterreichLsche Kontroll- ket steadied yesterday and sions of 30 points. The D-mark Eurobonds were mixed for ended the day slightly firmer bond was trading comfortably in dull trading with prices bank, guaranteed by Austria, BY ALEXANDER NICOLL after the New York bond mar- above par, exceeding 10020 at firming towards the dose. The first SFr 50m portion has bourse ket opened stronger. Borrowers point. franc a three-year life, a per cent THE EUROPEAN currency unit rency alone — the dollar — the US where deep forward cur one The Euro-French 4} are beginning to take an in- coupon and par issue price- The (Ecu) is by no means as tan- rather than on one currency rency markets have not By David Harsh in Paris The 250.000 attached war- market is in fair shape with terest in market once more, rants. priced at the greatly affected second SFr deal is for gible as the live hogs, or even against another. It was also the developed. THE PARIS bourse intends to the S19J, give traders not yet 50m bring in experimental com- but traders are still nervous right to buy a seven-year non- fey prospects of a realignment of seven years with a 5 per cent the currencies, upon which NYCE's first venture into finan- Banks which already write puterised trading in July to help and question whether the mar- callable bond with a 6* per cent toe EMS widely expected in toe coupon and 101} issue price. futures are traded in Chicago. cial futures. options on Ecus, to other banks it keep pace with competition ket is too fragile to bear the coupon. They can be exercised spring. Aeroports de Paris is Nor. as the centrepiece of a Mr Hunt Taylor, vice chair- or to their corporate customers, Bond prices were slightly from thrusting foreign stock weight of a new deal. during four periods, the last raising FFr 350m with an issue system designed to protect man of FINEX, the NYCE unit will be able to use the new con- lower where changed in markets, especially London, Mr The floater market is more in February 1987, at an ex- maturing in January 1993 but Europeans from exchange rate set up for the new contracts, tracts to cover some of the risks average volume yesterday with Xavier Dupont, chairman of the receptive, though, and two change rate to be fixed. After 6.02-year average life. fluctuations, would it im- sees them attracting speculative they assume with a dealers still largely Ignoring in doing so. French stockbrokers association, issues were launched yesterday an initial strong start, the war- mediately spring to mind as a interest from local traders who Salomon Brothers also The coupon was set at 10} per toe New York market’s moves. has said yesterday. with more rumoured. New Zea- rants slipped back to around natural vehicle for the specula- have been frustrated by the made two issues totalling up to cent and issue price at 100$ per Donaldson Lufkin & Jenrette’s He also said a morning land is raising 5350m through S17i as option theorists ran the tive atmosphere of the pits. decline of many of New York’s Ecu 6Q0m of Ecu warrants. cent by Credit Commercial de SFr 200m 1 0-year issue started trading session in the 50 most a 15-year deal led by Salomon figures through tbeir computers commodity futures contracts France. Fees total 1{ per cent trading yesterday, closing at 99 Yet exchanges are flooding Other potential users include active stocks in Paris would Brothers, and Commerzbank and decided that they were and the growth in Chicago of and the bonds were trading compared to the par issue the market with new Ecu con- borrowers and investors in the start before the end of March. launched a SlOOzn issue with slightly expensive at the issue financial futures. expects a comfortably within that dis- price. The coupon is 5} per tracts. The Chicago Mercantile He Ecu bond market. Last year. Both measures correspond to warrants to buy a fixed rate price. good deal of spread trading count. Last week’s Council of cent. Exchange is due today to $6.8bn .worth of Ecu-denomi- previously announced steps to D-Mark bond with a potential In the equity-linked sector between NYCE’s dollar Europe issue is now trading The rush of into launch Ecu. futures. The Euro- the nated Eurobonds were issued, modernise the stock market, size of DM 250m, for a financing Nikko Securities (Europe) borrowers index and Ecu contracts. above its lOOi issue price. toe Euroyen market continues. pean Options Exchange in making it the fourth largest where trading is still carried out subsidiary of the bank. launched a {30m issue with The foreign bond - Amsterdam was first off the The CME and the Philadel- currency in that market. Bor- by open outcry with quotes New Zealand's deal will pay equity warrants for Tateho Swiss franc Yesterday Hydro Quebec exchange, market is also receptive new launched mark last month with Ecu phia as the present rowers who swap the proceeds chalked up on blackboards. interest at the offered rate for Chemical with a five-year life to a YiObn eight-year flooding options, followed last week by market leaders respectively in of Ecu bond issues, for ex- Mr Dupont made clear at a six-month London inter-bank and an indicated 5 per cent deals, which have been deal led by Yamaichi Inter- futures at the New York currency futures and options, ample. are exposed to fluctua- press conference yesterday that deposits (Libor) and front-end coupon. It was trading above in. One public deal, a SFr 50m national (Europe). The coupon Cotton Exchange. The Phila- believe Ecu business will more tions in the dollar/Ecu rate. the bourse bad no alternative fees were set at a total of 40 par. Nomura International set 10-year bond for Del E. Webb, a is 63 per cent and issue price delphia Stock Exchange plans naturally be done on their Companies could also use the but to press ahead with reforms basis points. Paper was being terms for Kobe Steel’s SlOOm US construction and casino com- 101}. Fees totalled 2 per cent to launch options on February floors. new contracts. Many French, to meet the challenge from Disced as high as 99.70, making issue with equity warrants at pany. was launched yesterday and traders quoted the bonds Sodiric. 7, and several other exchanges Arbitrage between currency Italian and other continental London. The “Big Bang” of it a profitable deal for co- the indicated 51 per cent by The coupon is 6} per within that discount though plan to enter the game. and Ecu futures, some dealers companies already make con- October this year is expected to managers. coupon and par issue price. cent and issue price par. The they said little activity was feel, may be more appealing deal is connected to a swap into The contracts offer the means siderable use of the Ecu in bor- still further the appetite of Commerzbank’s seven-year Apart from the Commerzbank seen. than between the NYCE’s Ecu securities houses dollars. to take a position on the dollar's rowing, invoicing and account- London-based con-callable FRN met demand deal, the first D-mark issue of More issues are expected in general direction without having and dollar index contracts, ing. for doing business in Conti- as it offered a margin above the year appeared, a DM 200m In toe private placement the market and although the which appear to be simply nental shares. to assess the prospects for each may In the future, US multi- Libor, fairly rare these days private placement for the market Sweden is refinancing domestic. Yen bond market has mirror images of each other— Plans to introduced com- individual component of the 10- nationals with substantial in- for good quality borrowers. The 'World Bank. This six-year deal two issues with a SFr 200m held up well, some dealers both essentially offering specu- puterised trading in Paris have currency basket — though the terests in Europe could use interest rate will be set at t is led by Deutsche Girozentrale seven-year deal led by Credit doubt whether the Euroyen lators the chance already been under discussion Ecu does move closely in line to bet on the Ecu hedging instruments to per cent above the three-month and terms were set at a 6} per Suisse. The coupon is 5 per sector can stand up to too much dollar’s overall direction. for several years but have been rate with its largest components, the cover their general exposure, mean between Libor and cent coupon and 99} issue price. cent and issue price 100}. SBC new paper. checked by technological prob- Deutsche mark and French At most, only two or three rather than trying to manage lems. The morning session franc. of the new products are likely possibly onquantifiable risks in — to succeed, as futures and op- trading period from 9.80 to 11.00 The contracts could also be individual currencies. They tions trading tends to gravitate designate as the in addition to the regular used to obtain cover in smaller could the Ecu towards the most liquid con- accounting currency for all session of 12.30 to 1-L30—was European currencies, which may Japan’s life tracts. Since futures and options their European operations, originally due to have been to ease on Euroyen be difficult or costly to achieve MoF bonds business thrives on the volatility creating balance sheet exposure introduced by the end of last at present groups relax of the underlying instrument, a in Ecus. year. They may prove attractive to BY YOKO SH1BATA IN TOKYO period of dollar instability Companies doing commodity A futures market for bonds banks and others wishing to ‘Sushi’ limit would undoubtedly help the ex- business with the European and other debt instruments, THE JAPANESE Ministry of to the market depends on their However, resident borrowers cover specific exposures in the have changes’ marketing efforts. Community under the Common originally planned to Finance intends to ease its being able to meet strict will be permitted from this By Our Tokyo Staff Ecu - denominated currency, started last September, has also The most likely customers Agricultural Policy also have regulations covering the issue equityrdebt ratios, wbich vary spring to issue floating-rate JAPANESE life insurance com- deposit and capital markets, as been delayed. Bourse officials are international banka, for Ecu exposure and may find it by foreign companies of Euro- according to net worth. Euroyen bonds — as foreign panies are to relax their self- well as to European and multi- say this is now planned to start wbich the Ecu has already be- natural to use Ecu futures since yen bonds, it was learnt over The MoF appears to have companies have been allowed to imposed limit on holdings of national companies, which are on February 15. come virtually like any other they are accustomed to using the weekend. No timing for yielded to pressure from the US do since last June. foreign bonds issued by increasingly using the Ecu. The computerised trading currency in the foreign ex- commodity futures markets. this move is, however, likely to amend this unwieldy standard A further step under study Japanese resident borrowers The beginnings have been scheme, making use of the change and interbank deposit Istituto Bancario San Paulo to be announced until the com- In favour of unconditional by the Ministry is the relaxatir-n (“Sushi" bonds) from 5 to 8 tentative, as with most new Computer Assisted Trading market. di Torino, which is among the pletion of discussions with the access for foreign borrowers of the rule prohibiting for six per cent of their monthly net futures contracts. The NYCE System (CATS) of the Toronto The spot market in Ecus is leading promoters of the Ecu, banks and securities houses. rated A or better. months the sale to Japanese increase in assets, starting this did an encouraging 1,727 lots, stock exchange, will provide well developed, though the said in a recent newsletter: Foreign companies with an Japanese borrowers will con- residents of Euroyen bonds month. ** quota- worth Ecu 100,000 each, on the forward market is still concen- Futures and options will continuous dealing and AA rating were given uncondi- tinue to be selected by the tra- issued by Japanese companies. Under Ministry of Finance first day. after receiving since tion possibilities for selected trated in fairly short dates, with boost the international use tional permission in 1984 to ditional criteria, although the The Tokyo authorities are keen stocks between 10.00 and 17.000. guidelines, life insurance com- November an enthusiastic relatively little business beyond of the Ecu. European com- issue Euroyen bonds. Single A- MoF acknowledges the growing to enhance the marketability of start with five panies are allowed to place only response to a dollar index a year. Bankers expect futures panies will be more and more These will off 1 rated foreign borrowers access use of domestic rating services. Euroyen bonds. 10 per cent of their total assets futures contract, based on the to aid the forward market’s induced to invoice in Ecus, and stocks, rising progressively to in foreign bonds. But institu- Federal Reserve Board's index. development. Some futures ad- their US partners will easily 50 by July 1987, when Paris tions may invest up to 20 per This was the first currency herents believe the new con- accept this, so reducing the aim* to have its own com- cent of subsequent monthly net futures contract allowing a posi- tracts could even replace the weight of the dollar in inter- puterised system, Mr Dupont Samurai concession for public bodies increase in assets overseas once tion to be taken on one cut- forward market, particularly in national trade." said. the ceiling is reached. Non-yen bonds and Euroyen JAPANESE Ministry of to return to private offerings, privately placed samurai SERVICE THE bonds issued by Japanese resi- FT INTERNATIONAL BOND writes Yofco Shibaia in Tokyo. market. Euro-equity Finance (MoF) has relaxed dent borrowers fall outside this restrictions on yen-denominated Official's said toe ministry nas The official said the MoF 10 per cent ceiling. The life decided to scrap the so-called would require the banks to set Listed are the 200 latest international bonds for which there is an adequate secondary market deal for Swiss samurai bond issues by foregin insurance companies, where Closing prices January 14 "no return” rule, under which terms that keep issue costs at accumulated foreign securities on public entities for private qualified issuers of samurai least as high as those for pub- are rapidly approaching 10 per Volksbank for US DOLLAR Change on Change on placement, opening the way bonds for public subscription licly offered bonds, in order to cent, have been driven to buy luuad BW Offer day week Yield OTHER STRAIGHTS Issued Bid Offer day weak Yield By Alexander Nicoll STRAIGHTS issuers which have floated could no longer float such bonds deter large-scale private place- massive amount of Eurobonds Amev 10% 92 100 1014102 0 - 0% 9JO Barclays Au. 12% 90 AS 50 90% 91% +0% 0 15.28 SO 94% 95% -0% -04 14X7 SWISS VOLKSBANK, the co- publicly offered samurai bonds once they chose to tap the issued Arne* Credit 10% 90 ... 100 103% 104% +0% -14 9.72 Creditanstalt 12% 90 AS ments by Japanese companies. 12.62 operative bank, yesterday . R. 73 AS M1H +.0% -3% ' - 10%. *50 97% . 0% . Rappini.C. 90 50 . M0% f — Allen . Richfield:' 00 98%«t BM* -t j t"s "tv m- -3 • +0% +0% 13.70 Australia Com. 11 95... 200 1064 107 +0% 9-85 Swad. Ex. Cr. 13 88 AS 40 97% 96% launched the first "Euro-equity t-. 10.10 M24 —0% -0% 10.10 Australia Com. 11% 00 100 107% 108% +04 -24 Amax 10% 90 CS 60 101% deal of 1986. a SFr 147m issue . 100 -04 -1% BP Capital ITS 92 150 105% 106% -0% -14 9JO Cenad. Pac. 10% 90 CS 75 994 10X2 *» “0% - 1 11.07 of 60,000 bearer shares which Campbell Soup '104 95 TOO 104% 105% +0% -0% 9-6* CISC 10% 90 CS 75 *98% % Fin. 75 ' 102% M27, -04 —24 11-28 its Canada 11»* 9Ql 500 _1fl7% 107%, —0%.—,1% 5-2S .Gan nan M% 95 CS will represent 52 per cent of ‘ 10.55 - -0% Canadian P*c. 10% ^3 TOO :1Q*4lQ5 -0% ~1%ffT» -Montreal 114X6 CS ... 76 105% 105% +0% equity capital. Separately, it Canadian Pac. 12% 99 75 M5% 109% -04 -14 11.10 Sears Ace. 104 92 CS 75 *99 994-04-14M.76 -0% -1% 9.8« also announced a one-for-10 CEPME 10*. 91 100 1024102% +04 -1% 9.55 Winnipeg C. 10% 90 CS 50 1024102% O +0% 17.73 Chevron USA 1Z% 88 500 1044105 +0%-1 10.61 Chrysler F. F. 17 90 NS 65 96% 98% rights issue to raise SFr 177m. 0 -0417.27 Citicorp 10 88 200 101% 101% -0% -1% 9X6 KOP 18% 81 NS SO 95% 97% The international issue, lead 7 17 70 99% 100% -0% -0% 16X4 Cit'Con) 10% 95 200 IDO , 101% +04 +04 10-42 Kredtbk. Lux. 88 NS O -04 7.87 managed by Swiss Bank Corpor- Coca Cole 11% 91 TOO 1064107% -0% -14 M-09 Bayer Vrne. 8% 88 Ecu 60 100% 101% 97 9.5* ation International with Swiss Denmark Kgdm. 11% 89 MO 1044 W% +04 -2 ».«0 Chrysler F. C. 9 92 Ecu 75 S7%-0%-1% Danmark Kgdm. 11% 90 100 105% 106% +0% -2% SJ6 Xerox Can. 84 90 Ecu 40 98% 98% 0 -0% 8.90 Volksbank London, will be 0 -04 2.47 Denmark Kgdm. fl'i 92 100 1064107 -04-2% 9.98 Honda WW 3% 90 H... 100 105%M5% 6.50 priced next week at about a 3 22S 99% 100% -0% -24 9.97 Honda XW 3% 90 FI ... 100 90% 904+04 0 EDP 10 95 - -04 -0% per cent discount to the market 360 100% 100% +0% -14 9-47 Thysaen 7% 90 FI SO 103% M3% 6X1 EEC 9% 90 -0% 0 6.73 FFC 11V 90 MO 106% 105% +0% -1% 9.41 Were Id have 74 90 FI... 75 M2% M24 price, which was SFr 2,530 yes- ... SO 10T4 -0% O 6.62 EIB 12 95 200 111 1114 +04 -2% 10410 Wsasanan 6% SO FI W terday. FFr 500 103% 103% +0% +0% 10X9 El. Lilly 10% 92 150 104 1044 +04 -14 9X7 Mobil Cpn. 11% 90 -0% -1 12.26 The discount is being granted Dev. Cpn. 10 90 100 102 102 -0% -2% 9-27 Amev 11 93 £ 50 944 94% E«pan % % —0% 11 97 89 100 -0% -14 9J7 Australia Com. 11 92 £ 40 95% 96% +0% because investors will not be E>port Dev. Cpn. 12 107% 108% 96 964 +04 -0% 11X0 Sirs 95 1014 +04 —2 9-87 EIB 11% 93 £ 60 entitled to receive dividends for Fad. Dor. 10% MO M1% 94% 94% +0% -1%12.il 91 t«i% 1IT»% +0% -1% M.02 GMAC UK F. 104 90 £ 30 Ford Motor Crd. 1C4 160 964-04 -2 11.96 1985. But they will be able to 10*7, 0 -14 9J» Imp. Ch. Ind. 11% 95 £ 75 96% Ford Motor Crd. 11% 90 100 104% 9* -0% -1% 12-15 107% -04 »-W Imo. Ch. Ind. 10% 92 £ 75 934 participate in the rights issue, Ford Motor Crd. 12 95 100 106% “2. 96% 96% -0% -2 12.11 Gnn. Cred. 00 200 1024 itO +04 -14 8-87 McDonalds 10% 90 £... 40 which comprises 103,000 regis- El. 10% 96 -04 --1 12X7 103% 0 - 1 % 9-20 MtBbshi. F. HK 11 90 £ SO 954 GMAC 10% as 200 102% 9Z% 93% -0% -1% 12.16 tered shares priced at SFr 1.450 GMAC 10% 92 250 1014 102 +0% -1% ».*» NSW Treaty. 10% 92 £ 60 Privetbsnken 11% 92 £ 20 99 984 -1 -1% 122« and 190.000 non-voting partici- IADS 10*i 95 ISO 103 1034 0 -24 9.95 Phosphate Corporation 40 94% 9S4 -0% -0% 12.14 North Carolina Credit 10% ... 300 +f[T>% 1034 +0% -1% 9.98 Rank Xerox 11 32 £ pation certificates at SFr 145. ISM 2000 93% 0 -1412.24 Kellogq Co. 10% 90 too 101% 1IW4 -0% -1 9.66 Royal Ind. 10% 82 fc.. 60934 latest in 3690% 90% +04 -1413-22 The issues are the a Kollogo Co. 11% 92 100 104% 105% +0% Trice ntrol XW 11 92 £ Forta 11% 90 £ 9095% 96% 0 -1412X5 series by Swiss Volksbank. Last LTCB 12», si 100 11*4 ill -0% Tathae. -1 1175 -1410.10 Worid Bank 11% 95 £ 10096% 97% -0% September it launched a 875m Mitsui Truat 11% 90... wo *104% 1054 0 subsidiary -1% 10417 COE 8% 95 LFr 60038% 984 0 +«£ »» an indirect wholly owned of Nippon Cr. Bk 10% 95 150 103% 103% 0 9.70 five-year Eurobond issue with +fi% N. Lux Al. W* 92 LFr •00103% 104% 0 +0% Pitlsbury Co. 10% 93 ... 100 irw% in«% equity warrants attached, Pm Realty S. 12% 95 546 1I»% 10*», +0*, -1% MA4 10% 140 ini «*•% —«% — FLOATING RATE accompanied by a SFr 125m Oanras Airway* 95 NOTES Spread Quaber Hydro 11V 92 .. W1 1014107% +0% —1% 840 domestic warrant issue. UMVtCH +P4 -2% 940 Abbey Natnl. 5 2000 £ 0 15 1986 20 Financial Times Wednesday January INTL. COMPANIES & FINANCE Second reprieve for Pan-Electric ST CHIUS SHERWBI. IN SINGAPORE Weyerhaeuser Company The cost is a weakening of MB TAN BOON SWAN, the the terms of a rescue plan- total S640Om, for three months. threat behind the next i the beleaguered Malaysian entrepre- agreed last month . with the full QwynMai restructuring A but some bankers neur and politician, yestextiay banks and Mr Tan, who would meanwhile be worked deadline, that its importance has won a second extension on an indirectly holds a 22.6 per cent out, maintain has acquired the operating assets of anyway, as Pan-Electric SS8m fUS*3-7&n) cash injection, Stake in Pan-Electric, lessened , receivers first look increasingly sought for Pan-Electric’s Has come to Fan-Electric The pish called Tan to da Mr sought- the . fresh S$8m injec- I Industries by Price Waterhouse, doomed. inject up to SgdOm In working year, and attention, ' they receivers for the ailing marine tion at the turn of the The focus of capital Into the company. S$20m January 7. those local salvage, property set a deadline of argue, has shifted to and hotel of which he had already com- week, group in Singapore. This was extended by a brokers who expect Mr Tan to mitted, also had to on Tri-Wall Containers Inc. He take and yesterday it was extended his forward share pur- The reprieve conveniently " honour personally Pan-Electric’s con- again, probably for another commitments. These postpones difficulties, both for chase troversial commitments to pur- a problem on Tan, is week. brokers also face Mr who believed to be chase S$i40m worth of shares, financially stretched at present, The reason for which, forward share obligations, a wholly owned subsidiary of mainly in his companies. other and for Fan-Electric’s 37 bank apparently, this was made pos- which almost certainly cannot In return, the banks agreed bad creditors, who would prefer not sible was that Pan-Electric be met. The total value of out. to liquidate the company. to suspend interest and prin- sufficient funds to keep ticking- standing forward contracts is Price Waterhouse's demand cipal repayments on Fan. over. But the decision plainly officially put at SgEQOm. was under Electric's debts, estimated to staved off the day of reckoning. ! for the S$8m made TBG Inc. Nomura’s overseas side Norwegian cavil engineer helps lift profits 52% takes over US group We acted as financial advisor to TBG Inc. BT OUR FINANCIAL STAFF 8T WILLIAM HALL IN NEW YORK NOMURA SECURITIES, Japan’s from underwriting and trading, SELMER - SANDE, Norway’s Hotel. Erik Sande, chairman of gest brokerage bouse, up 48.8 per cent and 47.1 per largest civil engineering and Mr Selmer-Sande, said his company boosted group net profits 5L8 cent respectively, to represent construction company, is reached the point “where per cent to YllOJftrn (5547m) a fairly evenly spread 28.5 per entering the US construction had growth is only possible • Industry by baying a majority further in the year to September, & cent of all Nomura’s business. feel that the period interest In EL W. Howell, a New abroad, and we which it says was The bulk of the remained was presents some “ construction company. American market characterised try our efforts accounted for by interest and York 1 ' Selmer-Sande, which was of the best opportunities. Goldman, Sachs & Co. to Internationalise operations.” dividend receipts. These rose The results announced yes- formed from Ihe merger of Howell, which ranks number 33JL per cent terday include the contribu- Norway’s two largest construc- 162 in the top US 400 construc- 24.6 cent rise tions of Nomura’s consolidated Despite a per tion companies in 1984, has tion companies, said the New York Boston Chicago Dallas Detroit in expenses Y340bn, subsidiaries abroad. For the overall to sales of around 3480m a year Norwegian investment would pre-tax profits emerged per “ Houston Los Angeles Memphis Miami parent company alone, Nomura 52 and is best known internation- rive it a much stronger cent at had earlier reported a 32.7 per ahead Y24&59bn- Net ally for its work in offshore financial base." Both companies Philadelphia St Louis San Francisco cent set gain to Y85.45bn. earnings per shaer were Y64JQ4 construction in the North Sea declined to quantify the rise of against Y42.71X. Group revenues rose AL9 per Howell, based in Port the Investment or the impact London Hong Kong Zurich company’s Tokyo emit .to Y589.6bn, more than a • Trading volume in foreign Washington on Long Island, on the Norwegian fifth of which was attributed to shares listed on the Tokyo has an annual turnover of earnings. “international-related business.” Ctock Exchange reached around 8125m and has concen- Howell’s management will December 20, 1985 Commission proceeds on sales Y853.34bn last year, more than trated recently on building remain unchanged and will of equities and convertible nine times the previous year's regional malls and retail chains. retain a sizable stake in the bonds were up 29.S per cent level of Y93J8bn. This reflected Among several projects which company. Selmer-Sande said to account for 4&8 per cent of a 28-fold rise in unit terms to It has recently completed are that over the long term it hoped all incomings. 13L42m shares, and a near* the New York headquarters for to e-staMi-vh Howell in the Stronger advances were doubling in the number of com- the Hong Kong and Shanghai heavy construction end of the shown, however, in revenues panies listed from U to 23. Bank and the Plaza Athenee US industry. Cominco and t IRELAND Lomex set up US$25,000,000 8%% Bonds 1989 The Australian Industry Development copper complex S.G. WARBURG & CO. LTD. announce that the redemption instalment of US$1 ,500,000 due 15th February, 1886 ha* bean met by purchase* in the market to the nominal value of Corporation By Kenneth Marvton, USS437.000 and by a drawing of Bondi to the nominal value of US$1,063,000. (A Statutory corporation, wholly owned andguaranteedby die Mining Editor BANQUE SUDAMERIS The cfiitinetive numbers of the Bond*, drawn In the presence of a Notary Public, area* follows:— Commonwealth ofAustralia) and CANADA’S Cominco 249 Lorn mining companies are 24 32 40 102 131 180 201 230 238 U.S.$100,000,000 ex 258 268 274 330 340 347 358 370 378 390 U.S. $30,000,000 Floating Rate aiming to create one of the 396 433 444 454 482 470 515 526 5S3 560 11% PER CENT. NOTES DUE 1990 Notes due world’s biggest low-cost mining 60S 856 683 688 694 740 749 755 763 790 1987 and nulling complexes by com- 814 829 837 843 878 889 897 94S 969 977 1064 1071 1 102 NOTICE IS HEREBY GIVEN rial, pursuant to Condition 6(b) of bining and expanding their 984 991 999 1006 1013 1024 1055 .V_ For the six month period 1287 1304 Citibank N.A. as Fiscal Agent, has HOB 1118 1128 1184 1192 1220 1235 1280 selected by lot for copper operations in the High- 1316 1327 1357 1374 1504 1512 1518 1540 1551 1563 redemptionn on February 15ch January, 1986 to 15th July, 1986 3. 1986 USS8.000.0QQ principal amount of land Valley of British Colum- 1570 1703 1710 1719 1734 1741 175* 1771 1798 1935 said Notes at the redemption price of 101% of the principal amount the Notes will bear an bia. 1987 1894 2044 20S0 2080 2092 2098 2122 2135 2147 thereof, togetherigether with accrued interest from February 28, 1985 to 2167 Interest rate of 856% per annum. The companies have signed 2181 2199 2238 2251 2260 2269 2275 2296 2303 February 3, 3 986 (335 days). The value ofcadiNote is USS5.BS0 phis 2314 2347 2358 2365 2376 2353 2390 2450 2456 2465 in principle to interest of UUSX552.52 total US$5,60152. OutstandingBonds hearing Interest payable on 15thJuly, 1986. an agrement 2509 2526 2548 2570 2576 2803 2610 2618 2625 2632 create a complex capable of serial numbets ending in any of the Co! tits have been 2639 2858 2668 2874 2702 2708 2762 2769 2775 2782 producing more than 400m lb 2791 2797 2832 2840 2846 2870 2889 2902 2909 2917 selected by lot for redemption: 10 12 21 41 Bankers Trust a year of copper contained in . 3004 3027 3059 3073 3113 3130 3144 3151 3158 3168 3176 3184 3231 3238 3245 3277 3285 Payment win be made upon surrender of CompanyLondon, Agent significant 3252 3259 3269 Notes together with all Bank concentrates and 3306 3355 3362 3389 3376 3383 3431 3668 3687 3905 coupons maturing after the date fixed for redemption, at the offices amounts of silver and gold. 3919 3943 4606 .4614 4637 4644 - 4650 4731 4756 .. 4763 of the Faying Agents as shown on the Notes. On and after February Molybdenum may also be pro- 4771 4782 4790 4797 • 5141 61 *& •15180 :529S 8486 6809 3, 1986 interest on the Notes will cease to accrue and unmanned duced if selling prices warrant 6513 5520 5527 6533 8542 5549 5055 5563 6569 5721 coupons win become void. 5021 8895 5902 6909 6917 .5924. 6001 6010 6019 .'9026 The expansion will Involve 6066’. - .>.6141 ------Outstanding after February 3. 2986 USS66.000.000. NION 6085 . 6128 J0#51 6179- 6188 «393 6299- 6332 0 DE BANQIIES ABASES ET Cominco's higher grade mine, .. .. . 6346 6352 6759 8768 6774. : . .6781 mba 6865 •7434 7480 January ' 7488 7495 -.7833 13. FRANGAISE3—U.B.A.F. the capacity- of- which will be 7552 7059 7567 7573 7631 7679 7697. , By GnbanJc, N.A. (CSSI Dept.) raised to a rate sufficient to 7890 7916 7924. . 7930 7962 8039 8046 8075 8082 8089 8096 8104 8115 yLrndon Fiscal Agent CITIBANKO supply both mills with about 8122 8129 8135 8144 8150 8167 8165 U.S465,000,000 Floating Bate 8172 8179 8187 8193 8201 8208 8266 8294 8367 - 8419 Notes 1980-1990 120,000 tonnes of ore per day. 8486 8493 8515 8528 8532 3050 8664 8600 8691 8898 The two companies will have 8704 8713 8720 8742 8749 8757 8764 8771 8818 8870 In accordance with the conditions of the Notes notice is equal control of the entity 8881 8927 9026 9077 9083 9094 9127 9133 9170 9183 hereby given that for the six-month period 15th January 1986 which will operate the com- 9243 9267 9527 9753 9900 9926 9934 9942 9948 9955 to 15th July 1986 (181 days) the Nates will carry an. interest ' venture. 9363 9970 10185 10227 10578 10585 10993 10600 10607 10614 rate of 81% p.a. bined 10621 10737 11023 11030 11463 11469 11476 11501 11609 11659 Relevant interest payments will be as follows: However, Cominco will pro* 11697 11704 11712 11719 11737 11769 11775 11782 11791 11797 Notes of *1,000 U-&543.36 vide 55 per cent of the working 11804 11812 11819 11826 11833 11840 11647 11864 11862 12041 Notice and other capital needs with 12047 12055 12063 12069 12076 12084 12091 12098 12105 12112 CREDIT LYONNAIS, Luxembourg 12120 .12127 12139 12151 Lomex providing 45 per cent. 12158 12166 12173 12179 12188 12195 Fiscal Agent 12201 12208 12216 12223 12230 12238 12244 12252 12258 12266 U.S. $75,000,000 Cash generated from the com- 12273 12280 12288 12295 12478 12485 12515 12521 12628 12535 bined operations will be shared 12643 12550 12566 12614 12622 12629 12658 12666 12878 12687 on the same basis. Cominco is 12894 12700 12707 12716 12722 12729 12737 12744 12751 12757 1C Industries controlled by Canadian Pacific 12766 12772 12779 12787 12794 12800 12815 12848 12851 12862 NOTICE OF PURCHASE 12870 12876 12883 12890 12897 12905 12912 12927 while is part of the Rio 12338 12045 Lomex 12056 13023 13029 13038 13046 13062 13069 13078 13114 13198 Finance Corporation Tinto-Zinc groan. 13206 13228 13239 ‘ 13245 13252 13269 13267 13274 13281 13288 Noranda, the loss-making 13295 13303 13309 13317 13387 13395 -13402 13408 13416 13424 Canadian resources group, has 13616 13827 13634 13695 13703 13716 13722 13729 13759 13767 13774 13780 13789 13796 13809 Guaranteed Floating Rate Notes split operations into a number 13802 13817 13824 13831 13839 13845 13853 13895 13902 13009 14046 -14054 14062 of separate subsidiaries as part 14068 14075 14090 14098 14149 14162 142S8 14337 14477 14S13 14521 14527 Due 1991 of an effort to improve per- 14534 14583 14B90 14B08 1*621 14827 14634 14643 14649 . 14656 formance, writes Bernard Simon 14884 14704 15157 15179 15187 15194 15226 15233 15284 15291 In Toronto, 15303 15310 16404 15418 15426 15525 15532 15539 15546 15S54 In accordance with the provisions of the Notes, notice is 16560 15588 1SB75 16584 15503 15621 15627 15634 15645 15680 Mining and forest products 15888 15606 15702 15716 15722 15752 15760 hereby given that for the interest period from January 1 5, European 15767 15774 15781 Investment Bank businesses will be grouped in 10789 15796 15803 15809 15817 15846 15852 16859 15867 1986 to July 15, 1986 the Notes will carry an interest tale 15875 two new units, Noranda 16882 15889 15896 15903 15934 1B942 15949 16068 16231 16254 of 8%% per annum. The interest payable on the relevant 9^£/UStpaynkleJonds all 977, Minerals and Noranda Forest. 16280 18268 16275 16282 16290 15296 16303 16312 16318 16325 16332 16340 16353 16360 interest payment dale, July 15, 1986 against Coupon No. due December 1 5, 1 992 Similar steps will be taken later 16421 16409 16590 16619 16658 16685 16673 16995 17001 17177 17185 17737 17842 17893 18297 18354 14 will be US$43.99. for the company’s manufactur- Pursuant to the terra and candfflons of the Loan, notice b hereby gnen to 18382 18388 18375 18382 18390 18397 18503 18512 1851 18635. ing and on and gas operations. 18543 18651 18557 18588 18572 18578 Bondholdere that during die purchase year enefing December 1985, 18587 18593 18600 18663 14, Mr Alfred Poms, chairman, 18870 18677 18684 18691 teegg 18745 18751 18768 18766 By: The Chase Manhattan Bank, £81 6,000 of the above-mentioned Bonds wens purchased by European 18773 said the reorganisation was 18780 18780 18796 18884 18891 18898 18905 18913 18920 18927 lnvedmtirtBCTikmscfefqcftoncrfthflqugtBriyPujdM 18033 National Association, New York designed so that " dear account- 18988 18992 18998 19005 19013 19020 19048 19089 19078 19084 19091 19088 19106 19112 10120 19127 19133 As of December 1 5, 1985, Hie principal amount of sudi Bonds ability and responsibility be 19321 19320 remaining in 19335 19343 19349 19357 19365 10371 19378 19385 19393 19400 Fiscal Agent arcuiafior was £17,184,000. established for achieving results 19407 19414 19422 19429 19438 19443 19537 19543 19550 10556 from strategic business areas.” 19564 19672 19078 19586 19593 19600 19607 19615 19621 19628 Luxembourg, January 1 5, 1 086 Noranda’s financial problems, 19701 19707 19715 19721 19729 19737 19743 19750 197E8 19765 19772 19779 19785 19794 arising mainly from low com- 19801 19812 19819 16858 19866 19873 EUROPEAN INVESTMENT BANK 19879 19888 19893 19901 19908 19916 19023 19930 modity prices, have caused - 19938 10944 1 9962 19958 19966 19973 19980 19088 19090 20001 20008 20017 ring concern among 20023 20030 20038 20045 20052 - 20009 20078 20004 30001 20098 store and securities analysts. 20105 20112 20120 20127 20133 20141 20149 20155 20177 20184 20163 20170 Its share price has dropped 20191 20198 .'20205 20213 20220 20227 20233 20242 20249 20265 20347 20384 20391 Sharply over the past year. 20398 20404 20412 20420 20426 20433 20441 20448 20455 20483 20*69 20477 20484 The company posted losses of 20491 20498 20569 20876 20583 20590 20597 20714 20741 20708 20805 20813 CS54j9m (US$39.2m) in the nine 20820 21193 21199 21206 21210 21221 21228,- 21234 21243 21250 months to September 38. 21258 21264 21272 21278 21285 21293 21299 21307 21315 21321 21328 21335 21343 213EO 21356 21385 21372 21378 21 385 21393 21400 21407 21410 21581 21590 21597 21603 • 21610 21832 21639 21646 21617 21 62S 21654 21660 21668 21675 21682 21690 21697 del Orinoco Wells Fargo 21703 21713 21828 21835 21843 21849 21867 21865 C.V.G. Siderurgica CA 21887 21893 21800 21907 21871 21878 U-SJ£l25,000,000 21998 22005 22013 32020 22027 22034 & Company 22177 22184 22201 22209 22217 22248 22263 22262 (Sidor) mortgage bank 22285 22292 22300 22306 22268 22278 JESS and 22316 22323 22330 22350 22356 FINANCIAL administration agency 22364 22372 22378 22385 22426 22433 22400 22579 (Incorporated with limited liability in the Republic ofVenezuela OF U.S. $100,000,000 22594 22601 22808 22815 22823 22588 THE KINGDOM: OF DENMARK 22530 22637 22644 22692 CKom^siget HvpnfalclMint wg> 22666 22072 22680 22688 22894 22658 US$50,000,000 Danmerke 22753 22771 22785 22793 Mltiifaitf 22799 22807 22815 22821 22828 23837 22843 FLOATING RATE NOTES DUE 1984-1988 Kmmfoi ) 22856 22864 Gwranteed Boating Rate 22872 22878 22885 22893 22900 22907 2291 In accordance with the terms and conditions of the Notes, and the Renting Bate Notes doe 1999 Series 95 22943 22960 22968 22965 22972 22918 22929 22937 Redeemable at the Noteholders’ Subordinated Notes 22985 23000 23007 provitiOM of the Agent Bank Agreement between C.V.G. SMerunries Option in 1996 23015 23102 23109 23117 33123 23130 23138 nncrMwiltlrHiaDy gwinmtwd by due 1997 23223 23237 232*3 23250 23182 23158 del Orinoco GA. (Sidor) and Citibank. NA, dated July 7, 1980. 23358 23285 33272 23276 23301 23307 23315 23322 23329 23337 23285 23294 notice is hereby given that the Rate of Interest has been fixed at THE 23343 23351 . KINGDOM 23368 . OF DENMARK la accordance with the 23372 23379 23387 23394 23365 NlM?*ce b hereby given 23401 23407 23416 23422 pA and that the Interest payable on the relevant Interest that the Rate ofInterest fur the first oM-mouth 23444 23451 23486 23465 23472 23429 23437 wbroodhaBbeenfised provisions of ihe Notes, notice 23480 23487 23464 23801 Payment Daze. July IS. 1986, against Coupon NoM2in respect of atffA%pa. and that the intmetpayable for 23816 23522 23529 23538 23544 23581 23558 29508 is hereby given that for the 23504 23573 US$6,000 nominal amount of thei NoiNotes will be US$263.96. 23B87 23602 23608 23616 24114 Interest period 24131 24134 85 24140 24156 24199 24205 24212 24220 2*227 24142 15th January, J995 to 24265 24283 24233 24241 24249 inuary IS, 1986. London payment due April 15, 1986. 24268 24310 24319 24403 24410 24418 ' 15th Apifi, 1986 24440 24446 34464 24482 24022 24439 24432 y. Citibank. NA (CSSI Dept.}, Agent Bank CITIBANK© January 24029 24535 24544 15, 19S6, 24551 London die Notes will cany an Interest 24965 24573 24579 24587 24594 24800 24357 By: Citibank, 24808 24816 24971 NAJCSSI Dept), Agent Bank CITIBANKO Rate of 8%% per annum. 24987 24983 25000 24978 On 15th February, 1908 there will become Interest payable on the relevant due and payable upon each Bond demptlon, the principal amount thereof, togetherwith ^ interest payment date 15th accrued inttruttoseid dann th^rifice of- Apdl, 1966 will amount to &G. WARBURG ft CO. LTD. USE15.63 per US$10,000 Note 33 King William Street, London EC4R SAS USS 7 ,000,000 USaORflOOfiOO Gtwraeteed Roofing Reita Notes and USH,078.13 per U5S50.000 or one of die other paying agents named on the Bonds. The Bank ofNew York R^wycdltetrfdw Option of tiw Holder ripwCaaewencIng October 1962 Note. Interest will cease ta accrue on the Bonds called for redemption on and after ifet, N.V. Overseas Finance Agent Bank: for Overseas Finance Citicorp 1086 and Bonds so prewmed payment should haveattachedall Coupons matmtep (IneorporHedwiyiSmlMSat^mttmNaamlainlaAnahs) Marean“ Guaranty Trust X i . - The amount of any missing urnnatured Coupons Will be Guaranteed Floating Rate Subordinated Corporation N.V. of New York deducted from tiu h..b mane. Any amount of principal so deducted will be paid against surrender ofot *• Notes due January 1996 Qna3ipann9dY& Smiled Coupons Within six yean from the date of payment. "listing UneondhiMiaNy Guaranteed, one Subordinated Basis, ss to UBCOpefifionuBy gouratrieedby USS6.fXJ0.00Q nominal amount of Bonds will remain outstanding Fsymsrn ol Prtndpsl and fcilsrua by attar 15th February, NOTICE TO BONDHOLDERS 198a The Beak ofNew York Company, Inc. cmcoRPO The following Bond* previously drawn for redemption on iHYDRO AS the date "““ustated Wowterio*. havehm _ (tneorpotitodfiNawYorKUSA) No&ce is hereby given lhaHha Rato of Inferarihas been fixed at 8W% and ftONDSXSM been presented for peymarre— not yet Notice is hereby given that the Rate of interest has been fixed at that Interest payable on rekivanV Interest Payment Date, April 1 5, 15th February, iggs 6tt% p.a. and that the interest payable on the relevant Interest liS$l nonvnoi NOTICE fS HEREBY ttapm*OTrt 1986 against Coupon No. 24 in respect at 0,000 of tho GIVEN 331 1057 1303 2101 Payment Date, April 15. 1986, against Coupon Nag in respect of to Caaduta 4 at dM Bond*, VS&mm 31S2 3307 Notes wi be US$206.25. principal 4815 5155 803S 8S97 USSIO.QQQ nominal of the Notes will be U$$2Q9.38. annual tot been purcbwed by tie 0710 12217 Company ia lUjcuhOaloo ot rt* January U, 15425 15768 23222 January 75. 188B, London January 1 T 986 London ottid u/jb 5, theo5§£m5SSm>tcanhankna- By. Citibank. NA (CSSI Dept). Reference AgentUl/oAlfW By. Gfibank NA {CSSI DepL), Agent Bank CITIBANKS .MwpimattAatt 33 King William Street; London EC4R SAS JaMary.lStf, ISth January, 1988 — «-i — • Financial Times Wednesday January 15 1986 21 UK COMPANY NEWS David Lascelles takes a look at the rapid expansion of MAI Gomme brothers instigate [y Shop leaps 85% Rolling trail buy out at 87p per share to near along the takeover MAL os Mills & Allen Inter- broking, it baa built up an by new companies using modern BY DAVID GOODHART national Is now called, Is fast Impressive global network ot marketing techniques and a few £2m mark becoming one of the UK's least companies which trade a wide simple, well-designed products. Gomme Holdings, the maker cent on Monday's easily definable “ mid-market become the executive ehairmaw- Trade has continued to move companies. range of securities and cur- The public's appetite for of G-Plan furniture, has become price. Its relative generosity is The buy-out To the man in the street. It financial services is growing.” plan will go to au ahead very strongly at all out- is rencies in all the world's major the latest Intended subject of probably in part the result of EGH expected in about six Pearl A Dean, the cinema adver- financial markets. be said yesterday. “ They can be mao-agemeut-curn-institutional lets of Body Shop Interna- a the recent failure of the pro- weeks, u passed the comonpy tising company. To the City it is This growth has come both retailed like any other product." tional, the natural cosmetic buy-out which values the com- posed management buy-out of will go private which the Guy Butler, the money and through acquisition, like last Not that MAI aims to become concern. pany at £U.9m. Molins. Institutional investors management believes will make products This foreign exchange brokers; to year’s purchase of Giutelco fox a financial supermarket. Mr led coincidentally enabled the group lift pre- The buy-out plan was Insti- by Prudential it earner to sustain higher gear- to Wall Street, Giutelco and S20m, and a joint venture with Hollick expects to have no more —objected to the gated by Mr Leslie Gomme. the cheapness of ing. It is hoped it will return tax profits by 85 per cent Garban, the US securities Ueda Tanshi. one of Japan’s than a dozen basic products in- that current chairman, and his 170p-per-shajre offer which to the market in about five years. from £L04m to £L9Sm la the brokers. largest money brokers. cluding insurance, credit and was only brother, Mr Geoffrey Gomme, a a small premium cm year to September 30, 1985, It is something else again to Broking has been enormously savings in the form of life in- Molins’ share In the year ending July 26 non-executive director, who are price. on turnover well ahead people who research the US profitable recently, mainly surance to offer to the 500,000 Mr 1989 Gomme made pre-tax profit reaching retirement age and Peter St George, of Bill £9Mm, against £4.9tm. magazine and retailing market. because MATS earnings came in customers who already use MAI's Samuel merchant bank who was of £1.7m on turnover of £31m and Street want to realise their approxi- — final dividend of net Now, this acquisitive and dollars at a time when the US Wagon's High offices. also involved in the after being badly hit by the A Up mate per cent family holding. Molins deal diverse group—which 10 years currency was strong. But it is Wagon should give a better 30 recession and recording losses in makes a total of 3p for the a8 a financial adviser to the ago consisted of little more than fiercely competitive, and the balance to MAl’s profits (more Vehicle of the buy-out Is a 1981, 1982 and 1983Tlt became year, which compares with a board—stressed yesterday that a poster company and the near- recent deregulation of UK than half the £27.4m ft earned new company called Millmine, brifly forecast of not less than 2.7p while support for the l?0p famous last year when It defunct Vavasseur fringe bank- broking commissions means that last year came from the US). It in which 40 per cent of the was refused permission and a single last year. Molins offer had been only half- to daw LSp A ing group—a also moving in MAI will have to raise volume to will also slot into MAl’s cor- equity—valued at will be bade £2.9p from the £4.1 one-for-one scrip issue is also &2m— hearted in the Gomme Holdings m determined fashion Into the make up for finer margins. porate philosophy which is to split evenly between Prudential advisers, surplus in its pension scheme by Morgan Grenfell, were proposed. Stated earnings per personal financial services busi- The media business is grouped establish firm financial controls Assurance and 3i, another £3.5xn the Inland Revenue. whole-heartedly supporting the 5p share of this USM company ness. business targets for its of equity will be underwritten In United Communications which and present deal. The present deal will .leave Jumped from to SOAp. The proposed £35,5m is subsidiaries, and then let by the two companies, and the 12p purchase an outdoor and screen many The Gomme- brother -who the pension scheme unaltered. The directors report that of Wagon Finance announced advertising in their management get on with 1L remaining £6.2m will be raised on contractor many initially approached manage- It wil lalso mean a continuity sales have Monday win take ft luto Mr Clive Rollick, chief countries. This to have But the deal has not gone through bank loans. The man- since September motor was been ment buy-out specialists 3i with with the present management instalment credit, and strengthen executive of Boated off last year because its down wel |in the City where the agement will hold between five exceeded expectations, both MAI the idea, have also proposed that strategy of updating the com- Its position In the return stock market be getting and 20 per cent of the equity la the UK and abroad. High Street was not up to standard. may a the existing Gomme management pany’s furniture ranges, Mr where it is already building “ performance - oriented and But Hollick was unhappy little weary trying to keep track on a performance-related scale. Buoyant Christmas sales have up a Mr should remain in place but that Fryson has plans for some chain of insurance brokers. interested in strategy. 1 like look- with the price, it of MAI's proliferating acquisi- The underpinned what, they say, so he kept on. offer of ®7p cash a share Mr Peter Frysoo, currently a diversification. GommeS’s share Like all MAl’s many moves ing for opportunities and being “It’s moving very nicely now,” tions. and the flood of new stock represents looks like another year of in a premium of SO per non-executive director, should price rose 24p to dose at 83p. recent years, this one was adventurous in seizing them.” he claims. it has issued to finance them. continued strong progress. plotted and executed under the leader- MAX is also in market re- (If Wagon goes through, its out- Gross profits for the year Tbe adventurous approach may ship of Mr Clive search in the US where it standing stock will be up 44 per Holftck, its partly explain why MAI is in were np from £2.42m to aggressive measures cent on last year.) but low-profile chid such a wide range of businesses, magazine readership £4£4m, before distribution executive and supermarket sales who came over from a presenting a bit of a problem for —the MAI's shares lost 8 per cent and administration- expenses plum corporate latter through a company called of value 24 London & Clydeside falls to £1.7m finance Job at City analysts looking for the their In the hours Pre-tax Nabscar,, also last of £2J6m (£L37m). Hambies in the early 1970s and common thread. bought year, after the Wagon deal was results were after rent Is largely credited with forging which collates information announced. Reflecting the inclusion last dead, b the total to S.6p year-end. the skies been Although its core activities Had received £19,000 (£18,000) MAl’s new identity. gathered from bar codes at BOO But Mr Hollick makes "no year of. a £12Sm exceptional (14p) to paid from stated bluer, profits might have been broking and media—were there and net Interest payaMe of Still only 40, he relishes supermarket check-outs. apology "for acquisitions which, credit relating to land sales, earnings of 12.7p (18p) per about £300400 higher. Further- fresh at the start and have been built £29,000 (£16,606). challenges and was described And now it is expanding In he claims, will not significantly profits of London & Clydeside share. more, tardy planning permission by on by Mr Hollick, he says: "There associate yesterday financial services, a move which dilate MAI's earnings per share. Holdings were down from Residential construction pro- ...Tax took £908.000 (£451,000) 2 as has to be an opportunistic ele- for Swanston resulted in a delay intellectually enormously began two years ago with the Moreover, he says, financing £2. 99m to £1.65m at the pre-tax fits recovered well In the second giving a net balance up from ment In a group like ours. But of nearly six months on con- capable with acquisition of a chain of insur- acquisitions through shares also level for the year to end- half of the year, the £593.000 to £L02m. Last year, a phenomenal we have tended to go for adjacent directors struction in Edinburgh, while in memory.” ance brokers, offices. protects the “ firepower ” of September 1985. report, with all sites selling well there was also an extraordi- businesses.” Aberdeen the house market as Mr HoIIIcR, Mr Hollick sees financial ser- MATs highly liquid balance up to who maintains that Broadly, MAI has four There was an exceptional expectations, except in a whole was poor, stemming nary charge of £104£QQ. celebrity vices as a business where deeply sheet, a sure indication that is not necessary for activities. debit of £28,000 this time, being Aberdeen. from a lack of confidence in the success,” entrenched traditional suppliers MAI has not quit the takeover » comment describes as In money and securities mainly the interest penally on • comment North Sea oil market The sur- can be successfully challenged trail. the previous year's land sales. prise decision to retain Bridge- Body Shop watchers on the Prior to the exceptional items, These results have done nothing ton as an investment rather than lookout for any signs of a profits for this Glasgow-based to correct London and Clydeside's realise a profit of some £400,000 slowdown were again flum- dull stock market image adverse housebuilder and property since It also had an effect on the moxed by these results, and MSI keeps up BOARD MEETINGS developer fell from £1.76m to joined the USM in 1984, and the results. Meanwhile, after a series recovery the market's curious reaction The following pants* £1.67sl Turnover for the year shares closed yesterday at 98p, of land purchases, year-end gear- com have notified Finals: Bett Brothers. County Proper- —the shares hit 828p before dates ol board meetings to the Stock tie*. Hunterpoirtt. Rssburn Investment amounted to a higher £12-44nj lOp below the placing price. ing Is back around 100 per cent slipping to dose 10p down at with £I.24m halfway Exchange. Such meeting* »re usually Trust. Standard Securities. Trusthousa (£10. 7m). At the interim stage, However, the results are not but does not seem to be running held lor the purpose of 805p was partly pre-scrip considering Forte, Vogalsiruiabult Motel. pre-tax profits were £324,000 quite as disappointing as they out of control. The current year — THE RECOVERY dividends. Official indications are not reaction and partly a more shown by MS available as to whether the against £604400. look. Last summer In Scotland has started well, and assuming International £2S?’00 (CTeiit dividends FUTURE PATES in the second half „ 2 are interims or finsls and the sub- The directors are confident was the wettest this century, and profits of £24m, a p/e ratio of sober reassessment after £400.000) and minority losses Interims: of last year has continued into division* shown below are based dizzy heights. price £84,000 (nil), the Biotechnology Investments about future prospects, and they meant that many houses could early 7 errs on the side of remit The me first attributable mainly on laet Jan 20 six months ended profit came year's timetable. are proposing a final 3.9p divi- not be completed until after caution. still leaves the company on a October 26 to £L05m (loss 1985, and the com- £1.1lm) for earnings multiple of Just under 40, pany is of 4.4p Estates Property resuming Interim divi- Investment; ... Jan 23 (loss 4.6p) per share. Interim: proving that it remains one of dends with Ofip net. CAP Group. Dixon*. Framing Technology Investment Trust, Gold the "GSM's darlings. No won- Profit before tax for the period • comment NOTICE OF REDEMPTION came Fields Property. Howden Group, Magnet Pfotimtrter der, given the optimistic to £l-24m- a more stable and Southerns. Muitiione Electronics. Final pattern of There are two reasons for somods coming from trading has now New Wits. H. Samuel, Wyko. Spalax Television ..... Jan 30 yesterday’s positive recations to Continental Brighton. Current sales, espe- emerged for this mechanical Group Overseas Finance N,V. and MS International’s statement. cially over the Christmas electrical engineering group, and chairman The profits recovery is coming Guaranteed Notes Due July L, period, are well ahead of Mr K. 9%% 1986 Blair says with the through faster than anticipated expectations, and the poten- current level of orders on hand he anticipates and the group could get within thbiwloe b issued In tsmofiancewMiM «qi*wiiertBiSSieCo»iiiriorihiiSlw* NOTICE IS HEREBY GIVEN that, pursuant to Article Three of the Indenture dated as of tial overseas, particularly Eitfwge>d(»nMconrtfe4ewiinSMtaloBMp'ibflci03tf»atoitororpiavha»aiv the improvements will continue. swinging distance of £3m pre-tax July 1, 1979, as supplemented, (die “Indenture") among Continental Group Overseas Finance among beauty conscious aacuffm. the In the corresponding period this year assuming interest rates N.V. (the "Company"), KMT Continental Inc. (successor by merger to The Continental Group, French. Germans and Italians, of 1984 the group do not rocket away. But perhaps Inc.) (the "Guarantor"), and Morgan Guaranty incurred a loss Trust Company of New York, as Trustee, Is enormous —this will be of of greater significance l £L5m. but that was reduced is that under which the Company issued its 9% %> Guaranteed Notes due July 1986 (the "Notes"), 1, the main avenue of expansion to £492,000 by the end of the the rights issue everyone had the Company has elected to and shall redeem on February 14, 1986 (the "Redemption Date") in the next couple of years. 1984-85 financial year. The divi- been anticipating (including the all of the outstanding Notes at a redemption price of 100% of the principal amount thereof The cutest move recently was dend for each of the last four executives a few months ago) (the "Redemption Price") plus accrued interest from July 1, 1985 to the Redemption Bate has been the Body Shop Book, with years has been a single O.lp net. put on ice and prob- in the amount of $59.62 for each $1,000 principal amount of Notes. ably will not happen 12,000 hardback copies sold Mr Blair reports that all three at aU. ChemiPchaff The Notea shall -become due and payable on the Redemption Date operating divisions Capital gearing is still around at the Redemption Price just in the group’s own shops. traded profit- plus arcrued interest which shall he paid upon presentation and surrender ably. Electrical- 100 per cent but working capital of the Notes together hard think another and -mechanical It's to o£ -- -- with all campons.thereto appertaining featuring after the Redemption Date at the inying' agents [-engineering -made - progress, requirements ate~xoming down store which has managed to listed below. while mining equipment took and the surplus 'Norwich site is CHEMRING PLC get Its customers to directly going The Noteawiil no...longer be outstanding alter the time to recover from an uncer- for £2ini. Interest costs Redemption Date and interest on the Notes will foot its advertising MIL • tain home market. remain a burden short-term but (Registeredin England No. 86662} cease to . accrue from and after the Redemption Date and the coupons « for such interest b«M. Certain MS hopes to halve its gearing be void...... individual companies within the respective divisions 'ratios within two years. RnrnfngB Payments at the office of any paying agent outside of the United States will be made by check did not achieve their targeted could come out around 9p to drawn on, or transfer to a- united Slates dollar account with, a hank in the Borough of result and appropriate manage- 10p this year which means that Manhattan, City and Stale of York. payment Westpool lifts 8^92,788 Convertible Cumulative Re- New Any made at the office of the paying agent ment changes were effected. once again a decent dividend within the United States or by transfer to an account maintained by the payee with a hank in Turnover in the half year rose could be paid— perhaps 2p Preferred Ordinary Shares of ** profits deemable “g «««*» reporting to the United Stale* Internal Rerenoe Sendee 22% from £29.76m to £32.12m and share for a yield of 4 per cent (“Uvb > and to backup withholding at a rale of 20% if payees not recognized as exempt WESTPOOL Investment Trust produced trading is each issued by way of rights at £t per a profit of Hie p/e no more than 8 at 74p t 5p recipients fail to provide the paying agent with an executed IRS Form W-8, certifying under reported further rationalisa- £2-28m (loss £614fl00). Interest up 5p. Hie market may remain penahiro of perjury that the payee is not a United Stares share. person, or an executed IRS Form "W-9, tion of its Investment^ leav- charges this time were £1.04m slightly cautious but steadily certifying under penalties of perjury the payee’s taxpayer identification number (employer ing It with substantial stakes (£897,000). that rating should improve. identification number or social security number, as appropriate). Those of Exchange has holders who are re- In a limited number of com- The Council The Stock quired lo provide their correct taxpayer identification number on IRS fail Form W-9 and who panics. to do so may also be suhject to a penalty of $50.00. Please therefore proride the appropriate admitted the above-mentioned Convertible Its pre-tax profits for the certification when presenting your securities for payment. six months to October 31 1985 Preferred Ordinary shares to the Official were up 223 per cent to Ernest Jones confident List PAYING AGENTS £L8m, compared with £L47m for 1984. The interim divi- Morgan Guaranty Trust Company Morgan Guaranty Trust Company of the listing particulars containing dend Is January 15 1988 22 Financial Times Wednesday UK COMPANY NEWS with Granada Guinness beats forecasts Howard’s Charles Batchelor on Ladbroke’s proposed merger 92% profit television rise beats An increasing role for with 22% surge to £86m would also con- FROM March 10 a relaxation Ladbroke In higher proportion of Britain’s gaming laws will allow tribute a Guinness yesteday unveiled its of forecast Ladbroke and profits on the basis me two results for the 19S4-85 year which Tht management of Glen- behind a plan to buy out the Britain’s other earnin^ Brokera; bookmakers to instal television group's W85 showed profits some £3m ahead Piccadilly as weU as two Howard Grump, the holding forerestinga IBM eagles Hotels, part of sets in their betting shops so analysts are of the forecast made at the time Edinburgh hotels, the Cale- company Lloyd’s lnstn> about from Guinness, is thought to be of two the punters pre-tax profit of for of the takeover bid can watch the races lor Arthur donian and the North British. an« brokers. ' has beaten by compared with Ball trying to raise funds to buy on which they are putting their Ladbroke Guinness is thought to be £0.4m the profits forecast made money. Granada's declared profit or The figures, up 22 per cent three of - the group's four when it joined the Unlisted year ended anxious to keep the luxury Not content with this modest £64.4m in the from £70.4zn to 186.1m at the Pic- Securities Market last April. hotels including the Gleneagles hotel in Perth- improvement In the service he September 1985. pre-tax level, were also higher cadilly In London, writes shire. Hie hotels were part The group lifted pre-tax profits provides his customers. Mr Cyril structure of the deal than the £S3m to £85m the City But- the Mark Meredith. Guinness didt of the Bells group which 92 per cent to £&3lm, for the Stein. Ladbroke’s chairman, yes- valuation of the two had been looking for. and the not mention the possible sale Guinness bought out last year year to September 30 198S, from terday unveiled even more yet to be resolved. Hie year to September SO 1985 companies has 1985 results yesterday, for £356m. BeUs bought the £L73m in 1984. final dividend ambitions plans for increasing merchant bank saw the enlarged group's turn, in tta A Ladbroke whose that Inten- Scottish hotel group In 1984 of 3J5p is proposed. the role of television in his Japh«*. over rise from £923.7m to £1.19bn but admitted an adviser is Charterhouse business empire boring and trading profits from £64.9ra sive review Is underway of alter Gleneagles had acquired Brokerage income rose 62 per stressed that it would be lease Ladbroke announced proposals of Granada on the to £85.4m. Its hotel interests. Mr Peter a £15J>m on the Picca- cent from £2-92m to £4.74m. Its valuation for an agreed merger with price before It The brewing activities raised Tyrie, managing director of dilly, paying £27m for the Other operating Income company’s shore Granada Group, Britain's second speculation. their contribution from £59.4m Gleneagles, is believed to be group. amounted to £L32m (£lA5m) was lifted by bid largest TV rental company with to while and expenses were £2.75m Granada’s shares were worth £6$.8m the retail sector, 850 High Street outlets and a (£2L35m). Tax came to £L38m about 208p midday last Friday taking in Martin the Newsagent 20 per cent share of its market. beer market coupled with the ability find and minorities compared with yesterday’s and the Champneys Health _ the to (£872400) A merger of the two com- and achieving the growth opportunities and closing Price of 234p. a foil of group, showed an improvement in Britain is to £52400 (nil). panies would create a broadly- develop signi- Share rose 4p. Ladbroke fell 10p yesterday of £S.3m at £13.8m. position of the distinctive beer, them rapidly into Earnings per from based leisure empire embracing businesses, to 8X2p, Arthur Bell, the Scotch whisky The group is obtaining In areas- Scant 7.4p to 16.1p. bingo halls or social clubs as — For its part Granada, which Is distiller acquired last August for ing benefits from the rationalisa- Mr Ron Feet the chairman, their owners like tv call them— Pre-tax profits for the advised by S. G. Warburg, £356m after a two-mouth battle, tion and investment programmes said profits In the current year betting shops, hotels, property Cyril Stein (left), the Ladbroke chairman and being year were struck after deduct- expect the price at which it contributed trading profits of and In its target development were extremely encouraging; development motorway service Alex Bernstein, the chairman of Granada. will ing exceptional debits of £4m into the merger to reflect £2.8m. markets, the US and Europe, it showing a considerable Increase stations, ITV production com- goes (same) and finance charges of value. • Looking ahead the directors continued to increase its share on last year. He was confident its recent market £13m (£7m adjusted). Associates panies and TV and video sale believe that a say the portfolio of high quality of the imported beer sector. for the future, with the company Ladbrofce’s 50-pSus chain of than £L2bn on the basis of recent Both companies added £17.7m (£16. 5m). and rental. merger would not trigger a brand assets across the divisions The management transition at continuing to look for expansion Why should these two com- Leaky’s stores. Ladbroke' s retail- share prices and with annual Tax accounted for £2&3m reference to the Monopolies underpins the growth potential Bell's has been successfully com- through either Internal growth panies, both, successful in their ing expertise woedd allow turnover -of about £2bo. (£25. lm) to leave net profits The - only area of of the group. They add: “The pleted. Volume sales of Bell’s or acquisition. own sectors of the leisure indus- Granada to increase sales along- -Talks are hi an early stage and Commission. £14.5 in ahead at £59.3m. direct overlap is bingo, where future is very promising and Scotch whisky in Britain were He said 1985 had been try. want to merge? side its rental business. Granada were only revealed on Monday about 40 clubs and exciting.” well np in the last four months Minorities took £8.1m (£79m) difficult year for Insurance and Together they would cover a already has a small microcom- following a sharp rise to Ladbroke has • 50. The final dividend for 1984-85 of 1985. and extraordinary items £29m reinsurance business because oi much broader range of activities, puter retailing arm. Granada’s shore price on specula- Granada difficult -hurdle will is being stepped up from 4.62V* Shareholders are told that with (£99m). diminishing capacity in the insulating themselves more • Both companies are keen to tion that a bid from Ladbroke A more Independent Broadcasting to 5~2p net making a total of Champneys, Cranks and Nature's The directors are proposing to market place. However, it had effectively against a downturn in develop cable and satellite broad- was Imminent But both Mr Stein be the last. . October 7ip. compared with a previous Best the nucleus of a healthcare repay the outstanding £L5m maintained its placing record, one area. Granada depends for casting businesses. Ladbroke was and Granada's dhairmart, Mr Alex Authority, which vetoed a takeover bid from 6.44p. Earnings per 25p share group has been created which nominal of 10 per cent unsecured premium rates had risen, and 60 per cent of. its profits on the the only newcomer to break into Bernstein, were confident that Communications, the emerged 1.4p ahead at 25.3p. has great potential for the future. loan stock 1993-98 at £102 cash it had been able to protect most TV rental business—an area the first round of cable franchise agreement would be readied. Carlton TV In brewing, the group con- The directors believe that the for each £100 worth and also the generates cash awards in winning the Ealing merger production group, for Thames which a lot of , Financial details of the tinued to make excellent pro- 1984-85 results are clear evidence £59m nominal of 7} per cent but which is expected to decline franchise in West London. have stm to be discussed but Mr Television. Ladbroke would almost gress in the home markets where that Guinness has developed unsecured loan stock 2001 at £91 HOWARD GROUP -as more people buy, rather than • Both companies have mature Stein is keen lor toe two com- to dispose sales of draught Guinness again a unique combination of good cash for each £100 worth and so rent sets. highly profitable businesses — in panies to establish a new bolding certainly be required holding increased. The directors point operational management for in proportion. The combined group would TV rental and betting shops — company — on the lines of the of its 20 per cent in out that draught Guinness is financial performance today See Lex have ' Increased purchasing the cash from which can be chan- Storehouse group created last Central Television, the Midlands becomes muscle which should allow it to nelled into developing the other month to implement the Habitat ITV group, if It part improve the margins of its cash-hungry areas such as cable Mothexcare/BritiA Home Stores of a company controlling catering bnstaestns. This • com- TV and property. merger. This would acquire the Granada TV. Ises Granada's motorway ser- • The combined group would shares of the two existing groups. Even then the IBA can be Burton’s sales show 25% rise vice centres and Ladbroke's make savings on overheads by Ladbroke would expect to expected to look very closely at hotels and holiday villages. streamlining the regional .office emerge the larger partner In the owners of one of the most In the TV rental and consumer networks of the two groups. the combined group on the basis highly regarded ITV companies. BY MARTIN DICKSON electronics field; Granada’s chain If the deal goes through, it of its greater market capitalisa- There is still a long way to go .of rental outlets could be used to would create a company with a tion — £640m compared with before Granada becomes the Burton Group, the retailer, much potential as It had Debenhams, though BHS Itself increase the electronics sales of market capitalisation of more Ladbroke' s £580m. jewel in Ladbroke’s crown. told its annual meeting yesterday appeared to during the bid would “ not contribute to Deben- that sales were currently 25 per battle, but it would take two hams' style at this stage.” cent ahead of the same period to thre years to produce the kind Burton Is planning last year, excluding Debenhams. of performance figures to which an asset disposal to tile department stores chain it Burton was used to. programme reduce borrowings in the acquired last August Deben- wake of the Mr Halpem said be would be takeover. Debenhams has a DCL statistics are meaningless Argyll per — hams’ sales were currently 8 meeting Sir Terence Conran, stake in a Washington property, cent higher, including. a contri- chairman of Habitat-Mothercare, the Capital Plaza development BY MARK MEREDITH, SCOTTISH CORRESPONDENT bution from its Burton shofc later this month to discuss the is for which had been introduced to which up sale and could future relationship between realise over for MR JAMES GULLIVER, whose most profitable aplrits company present activity. We want to for about 50 per cent of the Debenbams since the takeover. £10m the group. their companies. It would Argyll food group has made a to the world. Yet, over the past see what his plane are for the 441m litres of pure alcohol Mr Ralph Halpern, Burton's also accept a good offer Habi tat-Mothercare, which for Rayne-Delman. a US shoe £L89bn bid fbr Distillers, said six years, Distillers' profits have future.” exported to toe US to November. chairman, said after the meeting 1 yesterday that Distillers failed to keep pace with infla- that there was a “very backed the Burton bid for retailer. A statement from Distillers The US is a major market for good expected forecast of profits tion, earnings per share have chance” that Debenhams Debenhams, is involved in the last niftit said that Argyll's Distillers' blended bottled brands would It said yesterday It was also of the US dollar income from before tax for the year to March fallen by 9 per cent and dividend meet the £G0m pre-tax profit redesign of the stores and has document contained no fresh such as Johnnie Walker and looking at UK property disposals the weakening dollar/sterling 1986 would have to ba over growth has fallen' behind infla- forecast for the year to Feb- options to take 20 per cent of but Arguments to support its Current Dewars and an upsurge in 1 would not be drawn on the exchange rate by fts policy of £300m to keep pace with tion,” be said. 1 Debenhams trading space offer, which was below the value exports to the last year, ruary which it announced possibility of selling Hamleys, selling forward when appro- inflation. US during the takeover battle. But buy a stake of up to 20 per cent Mr Gulliver noted, that with of Distillers' assets and placed prior to an increase to Federal the toy shop, or Harvey Nichols, priate. US earnings increased Argyll yesterday released Its it would be helped towards thte in the company. Since that deal Argyll shares at 358p, the Argyll no value on Distillers' inter- Excise Tax; increased exports by the department store, which because of higher premium rates response to Distillers’ defence by the new Burton was struck Hahitat-Mothercare offer for Distillers was now worth. national brands. The document 20 per cent and helped boost departments. were both acquired with and greater volume. document to the acrimonious Sales growth within the has merged with British Home 546p for share, valuing Distillers continued' to Ignore the changes pretax profits to £1244m, up old Debenhams. Mr Halpem merely The group now had a takeover struggle and accused departments Stores. 51 per at £L9bn. This price was 24Sp that have been made Distillers 54 per cent Debenbams were said that there might be one or cent interest by in a non-Lloyds the Edinburgh-baaed Scotch above Distillers’ share price of since 1983. not satisfactory, he said. Burton Mr Halpem said yesterday two businesses which would broker Mr John Bunsmore, of stock- be specialising in the US whisky distiller of producing on August 20 before bid was not disappointed with that he was still 298p . “very keen " to better developed in other property insurance market with “highly selective and. often Shareholders, it said, were brokers Wood Mackenzie, said: Debenhams, which offered as have Sir rumours started. entitled “ Terence trading within See Men and Matters, Page 22 an option to buy the remaining meaningless statistics.” to a coherent explana- Distillers obviously saw con- said that tion Argyll’s plans 49 per cent Mr Peet said this Sneaking to Glasgow, Mr He Distillers brands of for the siderable benefits to the first positioned in future. company had performed Gulliver queried Distillers’ would be better the half of toe financial year from market place and successfully. claim to concentrate on profits lead to better • Exports of bottled blends of the buy-in before toe FET Stead & per case in the home market. profits. Scotch whisky fell by 53.64 per increase. USM offer puts comment year profits less Bill Spender, Distillers in £46m Last of than 40p Mr cent November 1985 com- "But with this first sign of a Simpson static Hard times in the insurance a case compared with £3 or £4 a vice-chairman,w, said there was not pared with the same period in substantial foil to volumes after market seem to have spelt good case for other British whiskies. much new to the Argyll state- the previous year, according to toe tax rise in America it must 1 Unseasonal weather affected market value on Wickes times for Howard. Despite an Distillers now makes the ment “He keeps knocking the figures published by Customs A be difficult to project toe full- the footwear trading side of BY RICHARD TOMKINS acute shortage of underwriting astonishing claim that it is the past rather than looking at our Excise. Bottled blends accounted year forecast with any certainty.” half- Stead & Simpson in the capacity, Howard Is managing to year ending September 1985, Wlckes, placing the building materials Belgium, bat England is Its go on business, and has and pre-tax profits emerge little main and home improvement products source of profit. therefore felt the full benefit of changed at £2 .49m, against retailer which last month Mr Henry the great rise to rates. The £2.48m. Sweetbaum, chair- Lincroft announced its balance of its brokerage is im forthcoming man and chief executive, said Whitworth’s profit The interim dividend is up to flotation on the USM, is to offer yesterday proving—the proportion coming passes £lm that the two main j FiWnii l.lp, against lp adjusted for the 4.95m shares at 140p a share purposes of the from ^Israel is in decline, while All^UllT floatation were ] IN ITS first year as a public £583,000 (£442,000) tor subsidiaries. Inevitably, how- one-for-one scrip issue. It is through brokers Rowe & Pitman. to finance future toe more stable US marine store develop- company, Whitworth's Food of 5.7p (5.1p) per share. ever, toe short-term outlook anticipated that the final divi- The offer for sale, to be made ment and treaty reinsurance now accounts is a to create a vehicle for higher Group has lifted its pre-tax 198384 profit included £94,000 little fiat and with the dend this year will not be less on Friday, will give the company employee for about 50 per cent of toe 17% food participation. profit by neary 27 per cent to exceptional income. stocks now off toe boil the than the adjusted 2L3p paid in a market capitalisation of total. A further welcome broad- prob- £4&2m Some 10 per cent of the shares ALTHOUGH second-half profits cjLiMm before exceptional income, During 1985 Whitworth's lem has to be living 1984-85. ening of the base is implied by up to ex- and make it one of the biggest being offered for sale will be showed only a marginal increase #«s moating the dividend fore- Howard’s entry into property acquired B-Paks (Hunts), the pectations. On forecasts of £L2m trading in recent companies on the USM. reserved for preferential US last year, Lincroft KUgour Footwear em- over cast of 2p net with a final of Up. minority in Peter C. Cocks, and the shares at 92p are on a pros- At present the company is a ployee Insurance, via the acquisition weeks has been badly affected participation and a save- Group ended the 12 months to Holland Foods. It now announces pective p/e of 13* given wholly-owned subsidiary since year-end of a non-Lloyd’s Chairman and chief executive a 40 per by the mild weather, the direc- of as-yoa-earn share option is to be September 30 1985 with pretax it cent broker. Also encouraging is Mr Tim Holt says the increase has agreed to purchase Ken tax charge. In time a rather tors state, but turnover for the Wickes Companies Incorporated, introduced. figures 17 per cent higher at Ellis less modest Howard’s close control of costa, for the year ended September 30 (Anglia) for the allotment premium to the food third quarter increased by 5J5 tiie US-based industrial and Mr Sweetbaum said Wickes £L34m, against £L15m. Turnover which excluding a special bonus, 1985 includes the interest of 78,980 ordinary shares on manufacturing sector, now on a per cent which will Improve retailing group. Wd is not sell- had opted for a USM flotation rose 3 per emit from £7.83m to prospective last year rose by only per cent. vines on the monies raised in completion, and for a further multiple of 12*. profits for the period, they say. ing any shares in its subsidiary, because WCI did not at present 8 £8J7m. Conditions to toe insurance the USM placing a year ago; but Issue, not being more than could be justified. It >s also anticipated that the but the new shares being issued wish to dilate its shareholding Farther profitable growth was market this year are likely to excluding this the profit before 200,000 or having a greater value group's motor companies will as pan of the offer for sale will below the 85 per cent level and achieved to all sections of toe provide more of the same, and interest shows a risee of almost than £200,000, depending on GODFREY DAVIS Kent-A-Unit produce profits far the year reduce its stake to 85 per cent because the £693m to group’s activities — cloth mer- be raised consequently expected cent in profits. Ellis specialises to the has paid over Elm for two York- last Howard Is ehanting 16 per to £L08m a year ahead of time. Their turn- Wickes claims to be one of through the flotation as , bespoke tailoring and was to continue to flourish. None of of considerable difficulties for toe sale of peeled and brined pick- shire portable buildings com- over in the third quarter Europe’s largest retailers of much capital as Wickes now Investment holding. Last year’s this is news to shareholders, sector, stemming from ling onionsr to the year ended panies, J. D. Bridges of Mex- improved by 13 per cent. timber, building materials and required. result included a contribution severe however, who have pushed the weather, crop surpluses and April 30 1985 It made a pre-tax borough and Tborztham Mobiles For the half-year group turn- home improvement products. It However, he did not rule out from the discontinued uniform shares from the flotation profit of £30,400 (UK) of Castleford, as part over. excluding VAT, rose from has 22 stores In England, 23 in the up currency fluctuations. of possibility of a transfer to business. its plan to increase £28. to £3 1.42m. rice of 129p to 228p yesterday, charge its network 85m the Netherlands and 11 in the main market Because of a higher tax Whitworth’s . supplies fresh • comment profits(a this year of £4j3m, a of hire centres and its number S of £457,600 (£263,700) caused by produce to multiple - food Whitworth's turnover has ratio of 10 is not extrava- taken of portable buildings. It p/e ’ aims to the absence of tax losses which retailers, wholesalers and food a bit of a bashing due gant. although toe yield of 24 to sharp become Britain's largest port- were available last year, earn- processors to the UK, where fells in potato prices— looks rather mean. now down able buildings company. This announcement complies with ifte requirements of the Ccuncil of The Stock EwStanga ings per 10p share were little customers include most of the. to less than a third of peak 1983 But leading r changed at 19.4p (194p). high street chains. It levels—but this has not pre- PARK FOOD Group, Which packs final to toe dividend is up lp has undertaken a substantial vented both profits and volume and supplies hampers, incurred investment Anti-tobacco 5p net for a total of 7p (54p) programme, most of growth to the company’s key a loss of flfllm, against £L64m, share. per a medium term nature, to keep division. Whitworth’s came to in its seasonally unfavourable the trading level, group up growth to a changing the In At USM January 1985 via a feat half to September 30 1985. protest at profits increased from £819,000 industry. placing at 95p a share and it Turnover was £3.45m (£2. 11m). to £909,200. The largest contribu- Mr Holt says- trading condi- seems that Issue the was .timed' The interim dividend is up from came tions remain Hanson AGM tion of £636,400 (£491,600) tough but the groan just right to gain toe most to 3~2p to L4p and the company cloth merchantin while >s able to face toe future with rating terms from g, from what was then is confident tout profits for the royalty income ronfidenee. Holt took over By Charles Batchelor franchise and Mr a fairly heavily hyped sub-sector. year will exceed ' 1984-88’s JElJBm. added £226,700 (£184,000). Be- the chairmanship to October -The flotation Norsk HANSON TRUST, toe industrial provided lands for Hydro a.s spoke tailoring accounted for from Mr John Allpress, the acquisitions, capital JOHN conglomerate which is bidding spending BEALES has extended Its £83400 (£82,900), founder of toe business, who and helped to attract refrigeration (incorporated in the Kingdom of Norway with limited Tiabffity) £L8bn for Imperial Group, the quality interests based to lave up the ctudr after Illness. managers from tobacco, food and drinks around the in No ttingham and Sheffield with Turnover In the year came to . dustry. New senior management the acquisition concern, came under fire at for £50400 of 940.68m (£45m). After tax has subsequently been US$100,000,000 yesterday’s annual meeting Cram Installed Ronald Backhouse. This is a 6457.000 (£394,000) and minority to distribution, fresh fruit and small a small number of shareholders Pineapple refrigeration business nil (£77,000) the net profit was the exotic fruits and vegetables based based in Bradford. 8V2 per cent Bonds due 1991 opposed to it becoming involved in cigarette-making. changes banks Three of the seven share- Issue Price percent holders who put questions to By Rkfaaid Tomfchta 99% Lord Hanson, toe chairman. Into tobacco which a takeover Pineapple Dance Studios, toe Interest payable annually on 4th February queried the wisdom of a move USH-quoted dance studio opera- of Imperial would bring. One tor and clothes merchandising called for Hanson to withdraw company, yesterday announced The following have agreed to subscribe or procure subscribers fbr the Bonds: Its bid or promise to divest Itself that it bad appointed Citibank of Imperial’s tobacco business. in toe place of Barclays Bank as- Swiss Bank Corporation International Limited Lord Hanson said toe decision Hs principal banker. _ RLC AFRICAN one and Peter Bain, Pineapple’s EXPLORATION GROUP I to smote was a personal Ur (Bog. NaOiyOBTGS/IO) 1 chairman, said that toe (Re9.N0LKM»014lQ) Banque Paribas Ca^NtarketeUmM Crecfit Suisse First Boston Limited Hanson did not r“* deputy Imperial. croup hod negotiated a' specific fERC") norate futility with Citi- Den Crectttbank Deutsche Bank Capital Markets Umtted He defended toe com; acquisition 2505 Cfty Road. London EC1Y 1BQ £50400 contribution to bank to provide for Pineapple s EBC Amro Bank Limited Hambros Bank. Limited Conservative Party on growth. A refinancing of Pine- grounds the Tories had created apple's working capital require- International IBJ Limned Salomon Brothers International United the best conditions for business ments had also been agreed, Announcement to shareholders growth in the past 40 years. “We are Interested in acquir- Application has Asked who would succeed ing Blatter life-style companies, been made lor the 8!A percent Bonds duo 1991 to be admitted to the Official TTie directors of ERC are considering list bythe Gordon -White, service baae d ones,, proposals which, if Caunal ofThe Stock himself and Sir particularly implemented Exchange subject only to the Issue of the temporary 1 Global Bond. chairman of Hanson Industries which have a presence or could may affect the market price of ERC's shares. is payaWeanntaUy In An announcement relating jnlerest arrears on 4th Febnjary the first payment beinfl made on 4th February, 1987. Lord Hanson said have a presence anng In toe US, be developed to hereto will be made as soon as possible. Full pwbcu&moHhe Bondsare available in meExtel Statistical Servfceand may be obtained during usual boto were “to rode health both here and in the US,” Mr business hours up to and mdudhfl 17th January 1986 hum plenty of people acquisition the CompanyAmouncemens Ofticeof The and there were Bam said. A specific Shareholders are accordingly urged to over if they exercise caution in Stock Exchange and up to and including 31 st January. 1986 bom: who could take had non yet been identified. dealing^ in their were "hit by a bus.' In the year to test July, Pine- shares. Coipontoan chemicals, to Swiss Bank International Umtted, Swiss Bank Corporation, SCM. the US apple incurred losses of £214,000 Three KeysHouse, group which Han- P.O.Box 114, typewriters against profits of £209,000 the Byorderof the board 130 control of Wood Street, 99Gresham Street son recently acquired previous year, London EC2V6AQ London EC2P2BR for $930m, yesterday reported African Exploration Company Limited a 60 per cent rise In pre-tax Rowe & Pitman, Wood Mackenzie & Ca Limited, trading profit from 542.3m to 1 ' 62/63 Threadnewiie Street, 3874m in toe six months ended INDEX Local Secretaries London LADBROKE London EC2R8HP December 31, 1985. (-7) peril Steeb Net income, after all charges, L096-L100 including those relating to Based on FT Index 15thJanuary, 1986 SClTs tod defence costs, rose Tel: OX-427 4411 15Januay1966 to 5174m from 3114m. Financial Times Wednesday January 15 1986 FINANCIAL TIMES SURVEY f'isi '‘Oil Wednesday January 15 1986 The base £o* 50 top US companies AMONG THE leading US corporations with head- quarters in Connecticut axe the following: Company Location Aetna Life & Casualty Connecticut Hartford Amax Greenwich American Can Greenwich The third-smaUest state in the muon, Connecticiit in jnyfnn Avco Greenwich Ncw £ngjand is g Bangor Punu Greenwich the richest. It had the Champion International good fortune, early in US history, to become an important Stamford Cheseb financial rongh-Pond’s centre. The city of Hartford is called the capital of US insurance. Greenwich Combustion Eng. Stamford Connecticut Bank & Trust HanfordHartford Connecticut Gen.lea. Hanford Conoco Stamford Continental Grp.rp. Stamford • Left: The State Capitol, $325,000, according to one esti- Dexter Windsor Locks Hartford. Connecticut mate) has given them fresh Emhart Farmington heart in New England. General Electric Puritan revival treasures its history and Fairfield A Politically, the state should General Host Stamford reputation for ingenuity. best be described as social demo- General Reinsurance It daims to be the birth- — onnecticut is often products. A former editor of the crat "a Republican in Stamford place of the submarine, described as two states. By Christian Tyler Hartford Post, quoted by Prof Connecticut is more liberal than General Signal Stamford C One is the super-rich David Roth in his excellent the US insurance industry a Democrat in Louisiana." says General Telephone Connecticut of corporate bead- short history of the state*, (see page 3), the shelf one businessman. The Repub- & Electronics Stamford quarters, yachting marinas and noted at the turn of the eeotury dock, the cylinder lock, lican party is enjoying a rare GK Technologies Greenwich revival of New England, Con* country clubs, where a three* how prolific were the state’s majority in both houses of the Great Northern aecticot has managed for and the industrial concept bedroomgd house (with double factories: docks, hats, pocket- state legislature, under a Neftoosa Stamford several years now to log rate of mass-produced inter- garage, naturally) a knives, Yale keys, Winchester Democrat governor, Mr William Hartford National Hartford costs of unemployment well below changeable parts not to $195,000. The other state, the rifles, Colt revolvers, buttons, — O'Neill. Economic policy is Heubleln Farmington the national average. mention the hamburger, essentially bipartisan. is Insilco one that most people see, is old pins, gaa and electric fittings, That Meriden Founded by a dissident group despite Kenneeott and battered, proud of its bicycles, tyres, door belhc, type- the lollipop and the pay- the wave of “new Copper Stamford of Puritans, Connecticut history and Puritan resilience went writers, gramophones and the telephone. Republicans" who were elected Lone Star Industries Its own conservative way. It is President Reagan’s and proud of the fact that it has ubiquitous sewing machine, on coat- Greenwich still conservative in attitude, emerged triumphantly from a Connecticut developed the tails Moore McCormack though liberal in its politics, These men, perhaps Resources black decade when people and first modem submarine, and was refugees from New York during new Stamford •‘Yankee ingenuity" is what the representing the Northeast Utilities companies were fleeing to the the home of Charles Goodyear, the sixties and seventies. "yuppie" Berlin people of Connecticut claim for element that is said Olin sunbelt states of the south. a founder of the US rubber Many foreign concerns have to be so Stamford themselves, but there is cer- characteristic of the new Con- Peabody IntnL Most of the populace of 3m a industry. Eli Whitney, although operations in the state. West Stamford tain ctxssedness, too for necticut, are not expected to Perkia-Etmer live and work in a long urban — bom hi Massachusetts, invented Germany, the UK, Sweden and Norwalk example, in the legislature's survive the Democrat challenge and suburban corridor that runs the system of interchangeable Switzerland are particularly Pitney-Bowes Stamford refusal to reform ah antiquated in state assembly elections this Pittston from the boundary of New York parts in a firearms factory in •well represented. The state’s Greenwich tax system. year. City, along the so-called gold New Haven, and so laid down economic development planners Richardson-Vicks Wilton “ The key is that the governor coast of Greenwich and Stam- the basis of modem production used to pitch hard to bring com- Scorill Waterbary \ rrnli Variety and this administration have ford, past the old armaments methods. He had already panies into state other Singer Stamford the from been consistent in trying to and engineering centre of Among the state's better- invented the cotton gin "and Southern New England parts of the US and from provide a fair climate for Bridgeport to New Haven, home known sons is Samuel Clemens thus changed the course of both although foreign Telephone New Haven abroad. And business," says Mr Ronald Gil- of Yale University, (Mark Twain) who between southern and American his- marines at Groton (currently in filled the gap left by inevit- Stanley Works New Britain and on up an investment is still much sought rain, a rice-president of Stanley the Connecticut River valley 1874 and 1801 in Hartford (his tory.’* says Prof Roth. trouble with the Pentagon over able decline in the output of Stauffer Chemical Westport to after, the financial incentives the worldwide hardware manu- the state capital of Hartford. house can be visited) wrote Modem manufacturing in the its charges for defence con- manufacturing. Some areas, Texasgnlf Stamford are now designed as much to facturer. “They have retained There are industrial centres Huckleberry Finn, Semper, state is dominated metal- tracts). like Waterbary, once pro- Travelers Hartford Tom by entourage the expansion of business in Connecticut, despite outside this corridor, like Wafer* The Prince and the Pauper and working, machinery and elec- As a counterweight to tills claimed industrially derelict Union Carbide Danbury native business. the sabre-rattling of the legisla- bury in the Naugatuck valley, of course Connecticut trical equipment These indus- indnshrati exuberance, Connecti- have managed to switch from Uniroyal Hiddlebnry — —A Inter-state competition for ture.'’ the former brass capital Yankee King Arthur's tries account for 70 per cent, or cut hod the good fortune to the mechanical to the electronic Utd. Technologies Hartford of m Court new immigrants may, in the Some Republican voters are America, and It was Marie Twain who nearly twice the ratio the become, early in US history, an age. Nevertheless, US Industries Stamford New London, an for the outward end, be self-defeating. Besides, greatly disappointed, indeed, old whaling port la famously described the as whole. important centre for backing signs of industrail decay have Warnaco Bridgeport The rest New US a the allure of the sunbelt bas that the government has not meetly trees, scattered settle- England weather as of Aircraft building and insurance. Hartford calls by no means obliter- Xerox Stamford sumptu- engine is the yet been faded as those mushrooming seized the political opportunity, ments ous variety dazzling uncer- itself the capital of the ated. of weatherboard houses and biggest manufacturing em- US dries struggle with their own at a time of budget surpluses, and very fertile tainty. the spring ployer, insurance industry. The state is not farmland. “In I have with Pratt and Whitney A long industrial and financial congestion and rising costs. to lighten the business tax the tax system, is the political prosperity counted 138 kinds conglomer- home to 72 Insurance companies The of Hie new of weather la subsidiary of the history, as well as a cosmopoli- Connecticut can lay claim to burden and remove some of the issue of 1986. Cotmeotiott has helped keep inside of four twenty and 112 banks as well as 88 to and ate, United Technologies) tan culture, has helped the state no silicon valley—but the fact traditionally high oncosts of * Connecticut : A History; by this state—the third smallest in hours," he wrote: making military and civilian jet savings and loan associations. to attract a large number of that California is now so expen- employing labour. But the David M. Roth, published by the US—among the very richest. The state spawned an amaz- engines on four kites. General Financial, computer and other foreign business in addition to sive (a three-bedroomed house Governor has decided that fall- W. W. Norton and Ca„ New Sharing in the general economic ing variety, too, of industrial Dynamics makes umImt sub- service industries hove largely those head offices that came as in San Francisco can cost ing educational standards, not York k If ' * * ; ^ » t Whyafhiead companyin England chose abanking When an English thread company was looking for a bank to take, -—-/Vnd now we can do even more. Since CBT has become a care of its business in the U. S. it didn’t want a financial plan part of the Bank of England Corp. our international clients will , ^ New , patterned after any other. have access to branch offices throughout the Northeast. As well as So it chose The Connecticut Bank and Trust Company. Because international capabilities in Hartford, Stamford, Boston, New York, we can tailor a wide array of financial services to fit even the most Miami, Sao Paolo, and London. complex international banking needs. t _ So if your business is heading for the States, call CBT In fact, CBT has helped more multinational corporations ^ at (203) 244-4283. Or write our Multinational Division, settle in the Northeastern United States than any other bank. The Connecticut Bank and Trust Company, 1 Constitution Firms like a medical company from Germany, a steel company Plaza, Hartford, Connecticut 06115 USA, Telex: 681 3161 from Sweden, and an aluminium company from France. Doing CBT MULTIHFD. everything for them from offering foreign exchange services Like the thread company from England, you’ll find we and setting up payroll and credit lines to getting mortgages can custom-make the kind of financial plan, that’ll make your and credit cards for their employees.. business here as successful as it is there. When you’re ready to demand more fromabank. . — January 15 1986 24 Financial Times Wednesday CONNECTICUT 2 PROFILE: WILLIAM O'NEILL, GOVERNOR OF CONNECTICUT A career politician be “A HELL of s good. Irish supportive. Economic manage- harder at school, and will V politician, whose only inuf- ment in the state is said to be tested more often, says Mr upps experience is naming a non-partisan. Denoauk gov- •O-NelH. ’ To pay for these Improve- bar: and grille This b one ernments in the 60sand early he businessman's description of. TOs are bhuned for doing little ments, the Governor says proposal Connecticut's Coventor, Mr to prevent a light of business wlU be potting a general .ItfBlism O^ieilL Perhaps from .the state: -the present before the state “career politician" would he' administration ta from East Hampton, took onx expires later «*»*» yean' baa cent • There will be more is 19KL He waf deputy to decided that education is the government money, but not £Da Grasso, the daughter of top priority for Connecticut more bureaucracy, he adds. an Italiay taker and the fint In the autumn he launched a. Now SS years old, Mr woman to be elected governor “year of education,” prsmto- O’Neill was with the USAJF in in the US. With- her resigna- tag to upgrade the- system the Korean War. He reached, tion due to Illness, Mr O'NelH from bottom to top. the state House of Repre- in IMS and was had two years in the office He. would like < to- see sentatives before being' ejected la. his teachers’ basic salary rpbed majority leader fftm 1975 to own right in November 1982. to £1&5O0 a year, bat -also 1978, when he was elected “ of tire state. Hfs admlnbtttgon — institute a .mechanism. . to governor is a Tare ftejrablfcas majority weed out those who cannot, or His wife Natalie (or WDHam O’Neill, Connecticut’s in the state - legislature at will standards “Nftki”) Damon, from Massa- not, meet the top priority for chusetts, a schoolteacher. Governor: present—is seen by the hairi- of excellence.” is education ness community as broadly •Children wfU have to work CHRISTIAN TTLCR. UhBiPlJOYMENT PEft^APnA CONSTRUCTION PmSONAL INCOME CONTRACT AAARDSL H RATES Avaraga par capita . Incoma. 'M US. 012,707; Cormatttcut, S1BJBS. ‘We’re in great shape’ The banking; sector Msaiisforcoiwm PAUL TAYLOR jJLmjmAK #Li|# **************** SS*Z** CONNECTICUT—and the New tewgiaw/t economy of which it mt' 'recognizetis is a key part—has emerged as testing ground for a crucial experiment in limited inter- state banking in the US, a regional bulking initiative astfiesJia^oftliingstocom which has been dubbed “The New England Experiment.” last June the Supreme Court opened the merger floodgates in "’VA, New England -.when, it upheld the constitutionality of new laws passed, by New. England ;.";,_Take Jookjt theshapeof states; which' permit'Interstate ; ; adose banking 'among .participating states. While excluding mergers Connecticut’s economy and you'll like what involving institutions from you sea other state*—particularly New 'Hie commercial centre of Hartford, Connecticut: local banks believe they have York. fin advantage over their Karsec rivals in New York Gty In the wake of the Court ’Vbu’l! see a state whose economy decision, the banking landscape of New England and Connecti- develop large and sophisticated is being called “one of the strongest in the cut is being redrawn by a series A sampling of commercial banks trust and upscale personal bank- nation" Where new construction activity of interstate mergers which are ing operations. creating a new group of “super- (Assets and income in fim) Similarly, the solid base of regionals” bank holding com- is growing at twice the national rata And — Bank. («nd main otic*) % chang* 19Mmt % ct»'g* business customers—including panies with commercial bank- 31/12/M onyaar incoroe on year the major insurance companies where the work force is one of the most ing operations in up to four —has led the major Connecticut states. CUT Corporation (Hartford)*... MG2.6 +13 48J? +29 banks develop extensive highly skilled and best educated in the US. to com- The Supreme Court decision Hartford National (Hartford)... 6,192JL +1L2 58.6 +2S mercial and investment banking Northeast Bancorp (N. Haven) 1^710 +30 17* + 3.8 was forced by a Citicorp chal- services including specialised Citytrest Bancorp (Bridgeport) 1*\2A +23. . 1U +34B You'll see the of things to lenge to the legality of Hart- corporate processing services. shape Colonial Bancorp (Waterbury)t 1*S9L4 +19.7 +27* ford-based CBTs planned 1M The local Connecticut banks First Connecticut Bancorp . come—from our Economic Development merger with the Bank of New believe they have a special (Hartford)? ...„ 1,197.2 ’ +16 131 +15 England, a Massachusetts-based advantage over their larger Department . . .Things like investment hanking group. Five days after rivals from * Merged with Bank of Now England June 1965. Merged with Bank of Boatan New York city. the court decision, CKT com- t incentives, development assistance and June 1885. t Approved merger with Fleet Fnanoial November 1985. They emphasise that their dally pleted the merger. Since then, contact with senior executives Research: Rivka Nachoma. financing programs... tiie CBT/Bank of New England from major Connecticut-based deal has become a model for corporations—together with others. their provision of basic retail, i Low cost working capital, venture The CBT/Bank of New Eng- Bancorp, the sixth ^ largestbank- the opportunity to spread costs | payroll and other services to — land merger was a merger of ing group, has agreed to be —“ over the years it will allow capital and small business loana major corporate clients—results equals,, , each a highly successful acquired by Fleet Financial, us spread the cost systems ».»»» ta of in the development of dose profitable banking group both Bhode Island's biggest banking over a much larger base,” says relationships. with, assets of over $6bn and group. six largest McNally, veteran. Low cost state subsidized, ready- Among the Mr a CBT Now they are attempting j—| Individual complementary Connecticut banks, only Bridge- to In fact the large Connecticut parlay this advantage — and — to-buiki sites. strengths. port-based Citytrast Bancorp, a banks, such as Hartford their recently expanded balance Since then the combined fierce competitor, in the com* National and CBT, were the sheets—into a larger slice of group under CBT’s former mercial • market, and New product of a wave of mergers of Recruitment and job training the wholesale banking business. chairman, Mr Walter Con- Haven-based Northeast Bancorp I—| Connecticut community banks nolly, has fleshed oat its have so far been left out of the even before Inter-state banking The new super-regionals regional superbank strategy by merger boom. appeared on the horizon. which are now emerging in acquiring two smaller banking Northeast Bancorp, which Through these mergers, both New England also have an In- And much morel units, Maine National and, most has creased capacity to service n been seeking a merger CBT . and, more recently, recently, Old Colony Bank of partner, for about seven' years, Hartford National have built up domestic clients abroad. For Providence; Rhode Island. to acquired example, CBTs For details about how your company was have been by sizeable local branch networks. merger with The sew combined banking the Bank of New York ahead CBTs 157-strong statewide Bank of New England has pro- can reap the benefits of the economic state group, headquartered In Boston, of the Supreme Court ruling. retail branch network in par- vided CBTs corporate customers with access now .has assets of glgAbn, Despite this frenzy of merger ticular has helped the group to its services we’re in, contact the State of Connecticut deposits of $13bn and share- maintain strong core through the merged group's activity. Connecticut banks are deposit London holders' equity'of 9812m—rank- emerging as linchpins in the growth over the years. office. Equally impor- European Office, Schutzenstrasse 4, 6000 tant, ing it as one of the 30 largest new regional banking con- While the mergers have Connecticut banks, par- in the nation. - * ticularly CBT, have long Frankfurt am Main 1, West Germany. glomerates while also managing diluted CBTs still-impressive to retain their individual earnings results over past courted foreign Investors In the iden- the US. Telex: 41 60 67 ctdoc d. Telephone: (069) Impact tities moulded by the diverse five years, Mr McNally Bays the high-technology manufacturing; wave of community bank CBT has developed a whole 55/56. Fascimila 01. unit 28 20 (069) 28 38 But other mergers have also trade- and service-orientated acquisitions is now just about dedicated to attracting in- changed the shape ward of banking Connecticut economy—streng- complete. Investment by foreign in Connecticut In particular. thened by the expertise of their Accordingly, he expects the 303 then providing local nation’s ’ Bank of Boston, the merger partners. • bank's return on equity to grow banlting services to these new 16th largest banking holding to around per *** Robert Indeed, the driving force 18 cent, up from Sachs, a company, baa acquired Colonial' 15 per vlc* President in the (Tank’s behind the New Engl and merger cent in 1984, and return Bancorp, the fifth largest Con- on assets to reach ““itioanonal group, has coined waVe * realisation that the about 100 necticut banking group, based I* basis points e 1®*““ “reverse-investment" ‘ compared to b mQ8 1 0.74 P* in Waterbary, as part of its ? ? ?ty of ** per to describe New England marketplace cent in 1081 this specialist growing interstate empire. pro- market niche which has proved des hanking opportuni- Hartfonl National, parent of £ highly successful. Connecticut National Bank and Thrifts deposits Connecticut, USA ... Among its clients the multi- CBT’S closest rival, particularly ”ith the speed-up of The retail _i.‘ , banking market In naHowat groan list* * trrJwW systems our namral g >P in the corporate market, has market has Connecticut is fiercely compel number Sf expanded, wS Genrnu?erman' been rapidly -expanding both ’ explains Mr James tive. Aside from the other British an* McNally, president of CBT - in-state and across state boon- major local banking groups, panto? whfch^havi SahiiSS • wh«^ retains to independent daries. some of the fiercest comStiSS sutaidlariW hoard charactemtlc .pragmatic in ft* Tlwperfectclimatefor 'After expanding its Connect!- for retail deposits comeT from whichare now amandin? afS? cut branch anA market-orientated identity small system through a community banks, several actives—and series of recent acquisitions, i"thm the expanded regional large mutual banks aidfrem Hartford National acquired holding company. fte weU^tebiiahed has . saving Sd innovate Arlington Trust Banks such as CBT believe loan (Altni) of associations. ensure -a, !? that their new merger partners 1* cba Massachusetts, opened a com- Connecticut is one of the few invCrmn^ J3E? ?^ mercial bank in Bhode Bland ^ help them broaden and states in the US where ¥*?*** thrifts gromgtusinesses. - strengthen their and most recently announced earnings base deposits Are larger in total than For plans —Bank of New England, for the to acquire the Provident commercial hanks But that and " Profitable banks— a Boston-based Thrift, for example, is an expert fitt whole- could be changing. wSd^hS- 978.75m. sale and medium-sized asset- Outside reve Iie *b ly of traditional retail toadaSt ro ? ?J? !l !P National based lending andtoastag — banking, As a result, Hartford the particulaJfeatalS SrtSmm • is emerging as another broad- complementing CBTs strong of the e?*loit Connecticut economy , PP based regional banking group retail, commercial and corpor- have helped shape banking ta orosnLt^ 15*5® muM‘ *“**' P aPPear with total assets of about 59ba ate banking businesses and the state. For example good. the En land Experiment and almost 9800m in equity creating an “even more existence of a large number of f 1 1 38 141 capital. roundedunded financial institution."institution. wealthy individuals has *4cNally led rfCBrn tes Connecticut will also proyide ^* we 8*^®* Meanwhile, First The merger most of the major h«nv fi te shape,» —— a Financial Times Wednesday January 15 1986 25 CONNECTICUT 3 Optimism in the insurance capital of the US WHILE THE State of Connecticut might occasionally 1784. 14.000 people in the Hartford reinsurers the managed in panies built their reputation for tinued Importance in the insur- legal community. Aetna is a have difficulty For four area. getting its message across to the world pounds a year he world. It managed to escape reliability on the back of scores ance world. There are no major investor in projects such bought 800 pounds worth of Connecticut General, which Is at large, there can be few people, in the financial services the heavy losses which some of of anecdotal stories. Tbe official special tax breaks or local laws as the Hartford Civic Centre insurance coverage for his big in life and health insur- its rivals suffered during the arena who do not think “insurance”* when the name booklet of the local Insurance which have tied the insurance and its interests even stretch to “against fire, and. all dangers ance, merged with the Philadel- recent slump in the industry. Hartford, Association tells how one in- industry to Connecticut, and the sports arena where it has Connecticut, is mentioned. of fire." phia-based Ina Corporation, a Connecticut is the home of surance company president Hartford, in particular. Never- a majority interest in the Hart- Hartford has been called the “insurance capital” of Since then, the Hartford big property and casualty several important mutually- drove his sleigh all the way theless, tbe insurance industry ford Whalers ice hockey team. America and while insurance industry notched insure rer, this overstates the city’s importance has in November 1981, owned insurance companies. from Hartford to New York in has always felt at home in the up several “ ranging forming in the industry, the history and success of Hartford are firsts," Cigna Corporation. When it was founded in 1846, the dead of winter to pay state. Although Connecticut's insur- from the first automobile Today, it boasts $39bn ance companies have suffered cioscely intertwined. Nearly 50,000 people are employed in assets the Connecticut Mutual Life In- claims for the great New York Leo Connors of the Connecti- policy, to the first rain insur- and a workforce of close to surance fire. Another tale recalls the same sorts of problems and by the local insurance industry and it Company was the first bow a cut Bank and Trust Company has been estimated ancy policy and the first life 50.000 and, although the financial strains as any com- cor- life Insurance company to be Hartford insurance official stood cites several reasons why insur- that about 10 per cent of the state’s entire workforce is insurance policy for space porate headquarters panies operating in the property has been formed in the state. Five years in the smoking ashes of Chicago ance companies continue to dependent on the insurance business. astronauts. Connecticut insur- moved to Philadelphia, Connec- and casualty business, local later, the Phoenix Mutual Life with a barrel as his desk, and thrive in the Hartford area. ance companies have helped ticut is still the home of insurance officials maintain that Mr Leo Connors, who heads HVMBSUnmHHH the Insurance Company was formed. literally paid on the barrel-head These range from a “ very sup- pioneer several advances in the largest single segment to over the long-term it remains a the corporate banking opera of "When people speak of us those who had lost their pro- portive legislature ” to a well- industry such as reinsurance, Cigna’s growth industry for the state. tions of the Connecticut Bank workforce. In addition, as *tbe Insurance capital of perties. trained workforce with “a The insurance crop insurance and grou life Robert Kilpatrick, the and Trust Company in the Hart- p former the world,* it does not mean good work ethic.” “There have been staff cut- insurance. chief executive of Connecticut that we write ford area, says that there are the most new Great pride Mr Tom Collins, director of backs due to attrition,'’ says Mr 25 major industry The big three local insurance General, is chairman and chief business or have the insurance companies most corporate communications at Joseph Martin of the Insurance in companies, Aetna, executive of Cigna. people in the industry,” explains “It Is still the pride of Con- the local area and notes that BILL HALL The the Aetna, says that the reason Association of Connecticut, but insurance Travellers and Connecticut Mr Joseph Martin of the In- necticut insurance people that related activities Hartford has remained such a in recent years the insurance • General (now part Cigna) surance Association in the great San Francisco account for some 40 per cent — of Famous name of Con- powerful force In the insurance workforce has been growing by of his corporate play a key role in the business necticut. The state's reputation earthquake and fire they met “ between 500 people banking busi- While these three companies business is because it has “a and 1,500 ness. all stories affairs of the state and are an in the world insurance industry every claim." says the Insurance a year.” good the facts have are the biggest local employers good economic environment’’ got little important source of capital with is based on the large amount of Association of Connecticut By contrast, he estimates that a lost in the transla- there are several other Aetna’s confidence in the Hart- The problems in the property in Stamford bon. The official version an estimated $2.5bn invested in talent and the breadth of the insurance would of the insurers which deserve special Although the Hartford insur- ford business community is very and casualty Insurance industry count for 10 per cent insurance association of Con- everything ranging from new services provided in the early ance of the mention. The most obvious is companies have an visible. Mr John Filer, the have “ not had an impact on bank’s necticut offices to hospitals across the days, be says. illustrious corporate banking Is that “marine the Hartford, which is located history, this is not company's former chairman, our growth to any significant insurance state. The Hartford insurance com- activity. Hartford has been started it all/' The just a block away from the sufficient to explain their con- plays an active role in the local degree,” adds Mr Martin. ranked industry grew close as the fourth biggest up to 200 One of the reasons that Aetna in Hartford. It Is one ago of financial centre In the US, and to provide financial Hartford and Connecticut have the most famous names in the the insurance protection for the ships and industry is the been able to push ahead with Industry and can trace its their cargoes which reason, says Mr Connors. sailed new construction faster than origins back to 1810 when the around the The Insurance Association of world from their some rival states Is due to the Hartford Fire Insurance Com- b ses on the busy Connecticut Connecticut has calculated that ? financial muscle of the state’s pany was founded. Today, it is 95 per cent of all insurance I*ver- insurance companies. part of ITT Corporation. business comes from out of However, the. Hartford-based With assets of over 851 bn, General RE Corporation, head- As a vital part of both the UK state and as the insurance Travellers Insurance Company Aetna Life and Casualty is the quartered in Stamford, Connec- and the EEC Scotland's market industry is now the second disagrees, “lie troth is . largest stockholder-owned in- ticut. specialises . . in reinsurance for technology largest private employer, and that the first policy issued in surance company in America which involves assuming part of extends to France continuing to grow, Connecticut Hartford covered a house," and the Travellers, with assets an insurance risk originally and thirteen other countries. is SMALL very dependent A on maintain- says the Travellers in its of $36bn, Is also one of the undertaken by another insurer. Including Belgium, Italy Hol- tag its leadership position In booklet. “Hartford. the largest multi-line insurers in This provides , extra capacity for land, the US insurance industry. Insurance Capital" According the US. Both group's opera- the insurance markets and and West Germany. There are various stories as to the Travellers, the first tions span the life insurance General RE has the largest re- For a total of $2.7 trillion to why Hartford has come to Insurance policy to be issued in and property and casualty in- insurance operation in the US per year in tariff-free trade. occupy such a role BUT key in the Hartford was to a certain Mr surance areas. Aetna, for and is generally regarded as one insurance business and as with William Imlay on February 8, example, employs dose to of the biggest and best- The fact is, Scotland is the best and most economical launchpad for this huge market. INTERESTING With the most efficient sophisti- cated infrastructure and tele- Defence proves a strength communicationssystems, includ- PART ing international linkage by OF road, rail, air, and sea. A highly — and businessmen, too — will spending in the past year. A family house costs $118,000, productive, committed work- continue to encourage diversi- big programme of road and which puts Connecticut fifth in force that scored overwhelming Hie Economy fication: defence contracts are bridge building, costing $8bn- the national league table. too large and unpredictable an $10bn over 10 years is under Housing prices are higher only endorsements from U.S.-owned element SCOTLAND'S CHRISTIAN TYLER in the regional way. in Hawaii, Alaska, Washington corporations in a recent inde- economy. Tax revenues last year led by DC and California, according to the Connecticut pendentLaborSurvey. Anda tra- The economic success story sales and corporation tax (there Association of is Realtors. dition is mirrored by the unemploy- no state income tax) produced of innovation that goes ment figures. five a surplus of $270m and there back For the past The real estate boom has its $2.7 to 1765, when James Watt was a further small surplus of TRILLION DESPITE RAPED industrial years unemployment has been bad side. Last month business- perfected $45m, helped by better than the steam engine. Change, the lure of the sunbelt consistently below the national men in Hartford were warned expected sales of state lottery No wonder so U.S. states of the US and intensify- average. Today it stands at that there is a serious over- many tickets. State taxes ing foreign competition, Connec- around 5 per cent compared (Lotto) supply of office space in the manufacturing and servicing with a US average of over were cut by $156m. area which will take two years ticut has contrived not only to 7 per MARKET. companies—and over 300 elec- stay rich, but keep growing. cent There are, as everywhere, to correct even if new building to Price levels tronics companies including Its per capita income, at pockets of high unemployment. projects are reined back. Connecticut has its share of Property values in the IBM, Digital, over $18,000 in 1984, is esti- Mr Willian Farley, president Hughes, and inner city poverty among favoured eastern areas of the mated to be the second highest blacks of a leading development com- Motorola—have made Scotland and the newer immigrants. state have been "exploding," in the country, and a few years pany, said demand for new theirEuropean base. Maybe ago Connecticut boasted the according to the Connecticut you . According to state statistics especially from the insur- National Bank vice-president Space, should, too. highest output per head in the non-farming employment grew and other financial com- and economist, Mr- Peter KozeL ance world. to a record I.57m last year, but would continue ' strong The Scottish There are signs that the wealth panies, Development Naturally, the wealth is not the rate of job growth has but supply . for year or two, '.'gold coast” is spreading a Agency can provide tailor-made ' of the evenly spread. The eastern and begun to AIL : The sharer dr was too high. There is 2m sq ft inland and westwards.- But it development northern parts of the state, if manufacturing employment in of office space vacant and 2Jim packages to meet has yet to reach the old, cities not poor, are less prosperous built planned. your the economy is falling too, but of Bridgeport and New Haven sq ft being or company's needs—incor- than the central valley of the is still around 27 per cent of (home of the University of The private housing market porating expert analyses ofyour Connecticut river and are much non-agricultural employment, Yale). continues to be strong, even at less prosperous than the " gold market sector, equity loans and well above the US average of Industrial land in Fairfield the prices asked. Mr Arthur coast ” that runs into neigh- nonrepayable 19-20 per cent. County is fetching $250,000 or Anderson, president of a bous- grants, and a bouring New York state. The state is better able than more an acre, according to the ing management company, wide selection ofprime sites in- its to Trading on proximity most to pay the costs of transi- latest figures, compared with Imagineers, says current prices cluding single user sites and sci- the great metropolis, to Boston reach tion, having a budgetary surplus $50,000 an acre In the Hartford could be out of the of ence and its relative nearness to despite a rapid increase in state area. The average white-collar even well-paid workers. and technology parks. Europe, the slate has managed We appreciate any assis- to diversify sufficiently in the last decade to survive the tance the friends ofScotlandand double shock of domestic reces- Britain can give our develop- sion and Asian competition. Call for tax reforms menteffortsin the UnitedStates. It has bad an injection of If you can help, please new wealth in the form of well- contact heeled excutives working for many employers would like to Increasing less quickly In the Donald Harrison, Director- the many corporate headquar- see wound up. old industries however. The North America at the Scottish ters around Stamford and The business As the second richest state in newer companies have had to Development Agency, Suite Greenwich. They have driven the Union in per capita Income pay more in order to attract the up the price of property jq environment terms, and with budget sur- new skills that are in short 810, One Landmark Square, those areas to double the rates pluses under its belt, Connecti- supply in this old state. The Stamford, Connecticut 06901. Or elsewhere in state; but they CHRISTIAN TYLER Is one symptom of the cut appears to them better shortage call (203) 325-8525. have also fostered a local sub- placed than most to encourage what many people in public life the governor of the economy of financial and other industry even further. —from ScotBsb DMtopment Agency service companies. The CBIA warned recently state down—believe is one of N The old industrial areas, TEN YEARS .agOr-businessnrezr that -without -further Jax relief Connecticut’s bigger long-term assisted by government aid, ip. Connecticut were running for manufacturing, the' ' state- problems: the standard of edu- THE GREATSCOTS. have managed to spawn numer-' television commercials against may lose its healthy financial cation. revenues falling ous small, technology-orientated the Government. A man was position. State depend The debate about PURVEYORS OF FINE TECHNOLOGY SINCE 1765. seen standing in a patch of greatly on direct business taxa- educational standards is con- enterprises. Traditional indus- MM'a J 0/Ov ftDHtt C nw«MNl a Rr hr * ffUW l'Bwy , *«• •xAXtm n» I rubble, saying how bad things tion. ducted through slogans on city m lygi sm. MV. BMW i mw ail lAMBBcnf tries like textiles, chemicals, of no mm Ac urns state could also lose by rubber, brass, sraalV arms manu- were in the state. Last year the The walls, as well as in reports sales tax receipts and revenues facture, and metal-bashing of all Connecticut Business and Indus- august committees. from dividend, interest and kinds have declined or dis- try Association (CBLA) was capital gains tax. according to appeared. But the accumulated buying air-time to boast of the Salaries business poli- a recent paper drawn up for skills traditions of factory teamwork of and and Industry is supporting a tics. the State capitoL working have not; and they are diverse lobby that wants higher The state is unusual in having seen by many employers as an Today, the locally-sponsored salaries for teachers, with a tax cm earned income, a important asset, even if others radio and television advertise- no statewide minim am. More con- worry the educational ments are more likely to be blessing; perhaps, for the very that troversially, it wants teachers* GENERAL SIGNAL highly paid executives in the CORPORATION svstem is not producing the new aimed at Washington to warn performance to be regularly in the Federal administration that western corner, but a benefit of skills that will be needed assessed, and It wants to see systems and equipment for telecommu- have American industry doubtful value for the rest. The owned General Signal stock over future. cannot stand people with a non-academic townships—still powerful nications, semiconductor production, the years, these holdings have been Connecticut's dependence on up unaided to foreign competi- training but with specialist achninistrative units like their the defence industries, seen for tion. knowledge to be allowed into industrial automation, energy manage- quite small, accounting for less than pre-revolutionary forerunners many years as a weakness, has The cost of doing business in the profession. For example, ment and transportation. Our products 2.5 percent of all shares held collect personal property tax by institu- proved a strength since Presi- Connecticut Is still high; and people retiring early from busi- on business machinery and enable a wide range of industries to tions. Our mission will be to raise your dent Reagan took office. The although the Government is no ness careers should be allowed equipment It is the single most improve the productivity of their opera- interest. Pentagon’s spending in the state longer seen as anti-business into the system. unpopular tax in the state. But tions the quality their is far greater, in per capita there is a legacy of statutory “ Our schools need to place and of products General Signal has a proud history. is raises $200m a year, and the terms, than in any other state. obligations, progressive and special emphasis on the maths, and services. From our founding in 1962 CBIA admits that it would have through so. economic planners liberal for the most part, that science, literacy and technology Even to be phased out gradually. In 1978 General Signal acquired 3981 we recorded just one down yean skills required to prepare ' In the meantime, the associa- Leeds Northrop, where l was CEO, Since then sales Connecticut's students for the & our and earnings have tion is asking for a sales tax realities of the job as part of its expansion into instrumen- plateaued due to the *82/’83 exemption on industrial repairs, market By capital replacement and component doing so, Connecticut will be tation and control systems for process goods recession and more recently, able to strengthen its manu- parts. It is also asking for the industries and energy management. By the difficult conditions in the facturing base and remain semicon- state depreciation schedules on com- petitive then CSX had established technologi- ductor industry. plant and equipment to be in the world market," says a paper cal and market leadership in control could brought fully into line with the CBIA on the sub- GSX be of interest to yon on a rates allowed by the Federal ject. systems for water pollution, power number of counts: our demonstrated Although employers say they Government. Both these re- David. T. Kimball, Chairman conditioning mad rail transportation; ability to reach our strategic often have to outside the and per- CONSULTANTS forms, it says, would stimulate go LOCATION we were just then starting, incidentally, formance goals; our unique modernisation and would create State to find the technically- position in trained on the resignaling of nearly miles new jobs. people they need, it is LEADERSHIP IN 500 productivity-improving capital equip- assisting overseas companies to not difficult to attract the right Taxes for the business sector INSTRUMENTATION & of BritRail with our long-time partners ment for a wide range of growth mar- higher than in recruits. They say Connecticut purchase or tease optimum sites are probably CONTROL TECHNOLOGY atCEC kets; our sound financial condition; most of the US. Labour costs is the kind of place young Our most recent strategic develop- and our appreciation potential in the U.S. A. are also among the highest people leave because it offers General Signal welcomes the oppor- as we few excitements. But ment has been with instruments not just hourly rates, but the they come tunity to be part of this special sur- and resume our earnings eKmh to record back again to marry bring fringe benefits. and equipment used in the manufacture of levels and beyond. up their children. vey edition highlighting the state of semiconductors and in the telecommu- TRADE CENTER Trade unions were strong in “ You have anything you want Connecticut for the Financial Times 1 look forward to visiting with you WORLD and secured good the 1960s within two or three hours of readership. nications industry. soon. benefits from pro-union Demo- here,” said Mr George Gentile, in the World Trade General Signal (NYSErGSX), head- leasing space crat administrations. But the a senior vice-president of unions have lost much of their Gerber Scientific Instruments. quartered in Stamford, Connecticut, VISnS PLANNED TO UK. AND of Hartford the relative L^\^JLQ Center power, along with “ It's a nice place to raise a numbers 23,000 employees in 98 U.S. CONTINENT IN 1986 Or decline of the old manufactur- family not so nice, maybe, for — and 39 foreign facilities. Last year we GSX has an excellent bur relatively For further ing base. One company vice- young people who tike the bar information on General untold story, so we are looking forward president said the cost of labour increased our ranking in the Fortune Signal, please write to N. Fernandez, Detroit; and J. was on a par with 500 survey of U.S. companies to 210. to visiting with the European invest- Director of Communications, call; there was similar resistance to General General Signal is a leading producer of ment community in mid March. automation and to the scrap- Signal Corporation, P. O. Box 10010, EDWARD J. STOCKTON. PRESIDENT CONTINUED ON NEXT PAGE While several European institutions ping of old demarcation lines. instrumentation, controls, and related Stamford, Connecticut 06904, USA. 60 WASHINGTON ST., HAftTFDRD. CT 06 I Db 249-031 1303) Labour rates have been — —— . January 15 1986 26 Financial Times Wednesday CONNECTICUT 4 PROFILE: BODINE CORPORATION MANUFACTURING BiPipmasn- Profitable niche in the A grassroots regrowth expansion a* as much more sensitive to the sufficiently bracing. for its per cent. needs of business, while the One example is company low as 5 machine tool market a company has just The new sunbelt states have become less called Zygo, which has grows The its Texas operation attractive—their costs have up on 70 secluded acres is the brought Connecticut to save businesses climbed along with their pot small town of Middledeld, off backto IS still banks of computercontroUed exercise greater THEBE money to be lution levels. motor- money and t» tfn "H the Hariford-New Haven made in machine tools, even in CHjif g and fling equipment CHRISTIAN TYLER Texas was the place The state la still courting tile way. Zygo builds sophisticated control. the US. of the type that today Is sold years ago. Now. big corporations in the hope measuring equipment, using to be, some In the centre of Bridgeport far more cheaply by the Gentile, "it takes you that they will achieve for the lasers, qptics and microproces- says Mr one of Connecticut's old indus- Japanese, the South Koreans, two hours to drive 10 miles in SMI economy of old towns, such as sors. In its early days, the three trial cities, Edward and Pick or the Taiwanese. W “AUTOMATE OR EMIGRATE” “ Dallas." Bridgeport and New . Haven, founders had no product, only Boding run the family business Labour is expensive, as it is is a common injunction In the finds technically- what they have already done a rough idea of what to make," Gerber started by their father Alfred everywhere In Connecticut. But Connecticut business fraternity people scarce in for Stamford and Greenwich according to Hr Paul Forman, qualified van Sant Bodine in 1933. They the skills that Bodine requires these days. but they are scarce and part of the hinterland of president and one of the Connecticut, have profits last are in good supply because of Since tiie mid-1970s, The basic school made for the after a Fairfield County- founders. elsewhere, too. years. the state's long manufacturing period when the state good, Mr Gentile 15 fnoritlANURACTURNG appeared Corporate headquarters drive Zygo has benefited from the education is history. The valley behind to be losing its Industrial of the ywmg Other machine tool companies EmOrt-Btfr life- up the cost of land and housing state’s industrial revenue bond adds, and many Bridgeport was once the brass blood to cheaper and more the bright have budded under the strain -—houses in the western corner scheme, and Mr Forman says people who leave for capital of the US; and Bridge- exotic areas to Connecticut of foreign competition, or have of the US, positive of the state can cost twice as of the climate in general: “"We lights vrtil return port efforts have been and bring up been bought np (and often was once the headquarters made to much as tiie average—but they have an awful lot of good things to settle down of Remington, the world- diversify the economy. Busi- their children. wound up) by the big con- also bring with them - a host of going for us." "« nesses were glomerates. famous ar s ammunition attracted from service jobs for accountants, But where the state does fall Another local entrepreneur is abroad or from other parts maker. of software specialists, security down, he believes, is in Its lack Charles Kaman, who started his In 1981, before the latest the US; multinationals Many of the skilled men in were guards, gardeners, cleaners. of institutions to foster the high commercial life with an aileron economic recession, there were encouraged the Bodine plant earn £40,000 to put their world More important, however, technology environment that he invented for a helicopter £5.2bu-worth of machine tool headquarters in a year, and very few earn less the western than any official policy is the Connecticut will need if it is blade. deliveries in the US. of which corner rotor than £20,000, Dick Bodine said. of the state, just over ability of companies themselves to compete with the rest of thn ZS per cent were Imports. In the New York border. “ We had the option 15 years to adapt to the world competi- US and the outside world. 1984, the value of deliveries Today, the emphasis has Example ago of moving away when it Mr Richard Bodine, president, tion that is forcing rapid change “I think we are sometimes had sunk to only $2L3bn—and shifted: state incentives are was time to renovate the place," Bodine Corporation: many of de- not just on the north-eastern as myopic as Britain itself,” he His company, the Kaman over 40 per cent of that was signed less ** the skilled men at his Bridge- to woo companies seaboard of the US, but in adds. become taken by imports. he adds. But there Is a culture Corporation, has since port plant earn over £40,000 away from other areas than to every traditional manufacturing diverse: it of mechanical skills and the "If3 difficult for administra- extraordinarily But tiie Bodine Corporation a year make sure that companies that area of the West kind of mental stills you don't tors to realise they are there to makes entire helicopters, mainly has kept going, mainly by find- grew up In the state will stay get In the agricultural areas. climate for the for the US navy, but is also ing a niche in the market there. create the right Here we have the resources in involved in underground testing that World Two,” says Democrat majority,” he says. Innovation people who create. Starting a where there is little or no com- won War is bid- terms of very high quality sub- About 80 per cent of the new company is such a fragile thing of nuclear warheads, and petition to worry about. It Dick Bodine. Like many small business- The diversification appears contractors, industrial suppliers, investment in the state comes to anyway. And if the pond is ding for some “Star Wars" makes the machines that pro- The industry's petition, filed men, Mr Bodine feels the tax success steel distributors, and good from firms expanding within its have been a in Connecti- polluted, the likelihood of the work. It is also a distributor of duce the plastic boxes for VBS about a year ago, was accepted system Is weighted against cut’s case. - borders, conununications according to Mr John eggs growing very small. . musical instruments and of videotapes. Among Bodine by the Pentagon and by the those like himself who are Formerly is “ It’s very difficult to take a Carson, Commissioner for dominated by the industrial components, and has customers are clients such as department of Commerce. struggling to fight off cheap metalworking Another modern company is out of tiie cornfields Economic Development. Among industries, engi- been expanding for 17 consecu- Sony, 3M, Tandy, Bell and guy and Even so, says Ur Bodine, it was foreign competition. the Gerber group which has toolmaker those persuaded to stay in the neering, weaponry, aircraft and tive years. Howell. make a out of him.” kept away from President reached an annual turnover of “ There was a tune when state were Saab-Scanfa, the other defence industries, chemi- Boddne machines already Reagan by his former national 250m by applying tech- Kaman diversified out of in- Bodine Corporation, paid more Swedish vehicle builder, which cals, rubber—and insurance £ new stalled are capable of taming Petition security adviser. Robert McFar- the nology to old industrial acti- defence work because the — In tax than TWA, American wanted to expand its bus opera- state has branched oat into out nearly 400m videocassettes lane “ but I think Reagan will vities. business was so vulnerable to Bodine machines are made in Airlines and United Airlines tion. consumer goods, pharmaceuti- year. reject anything that stands in Operating out- the budgetary swings — as a Europe under licence, at the together — because they didn't cals, fibre optics, computer soft- from another " the of trade.” The policy has been to go site, in indeed was Connecticut as a Our business is in a narrow subsidiary (in Leicestershire, way pay any! Corporations shouldn't ware, biotechnology and com- of-town. and semi-rural for the smaller overseas com- whole. He went into the music segment of the total machine Mr Bodine is generally dis- pay tax. Let the shareholders puterised manufacturing pro- south Windsor, near Hartford, England) of Bridgeport panies, rather than, for ex- inventing tool market." says Dick Bodine appointed with the Republicans, cesses Gerber Scientific is selling 30 to business after a Machines, Bodine’s big neigh- pay tax on the profits. The ample, a of various kinds. with a mischievous smile. “ at least in the state of Connec- Japanese motor car cent of its production roundbacked guitar—of which We bour. Bridgeport, which makes way it is now, it's more profit- As a proportion of all busi- 40 per just concentrate on the mass- ticut, for what he says is their plant that would dwarf and dis- overseas. The company designs he is an avid player. Most of standard machine tools, was able to boy an office building ness, manufacturing is still production industries with failure to support the business- rupt the local economy. manufactures machines for the instruments that Kaman bought by the conglomerate than a machine-tool business." deariy on the decline. But and really high volumes.” man especially the smaller, As the employment figures marking up and cutting out sells today are imported from Textron. Now Textron wants to — there are still 420,000 people risk-taking bmixiamman Yet the Bodine brothers have show, Connecticut is becoming materials for the vehicle, air- tiie Far East Other Bodine machines make sell it again, and there is w»Ur employed in manufacturing, proved that an old business again a state of mailer con- craft and garment industries. office staplers, or speedometer of a management He is angry that more has not compared with 390,000 ten The move into industrial buy-out. need not be a defunct business. cerns, though a number of “ to parts or valve-lifters or fuel been done about the local pro- years ago, and the numbers We tend look for labour- components happened in an If the Bodine brothers have The industrial map of Con- giants, such as Pratt and Whit- injectors for the motor car perty tax on capital equipment increased slightly last year after intensive processes that we can equally roundabout way. Search- been lucky—or farsighted necticut is certainly changin ney, g , the aero-engine manufac- automate and where we can be companies. These machines cost enough to survive, that does not which he calls "devastating” falling daring the recession ing for a bearing that did not “ but perhaps not as fast as turers, remain. the leading supplier,” says Mr around half a million dollars mean they are content to see and like fating a man's tools." years that preceded it. need lubricating (on a heli- economic logic would have one The exodus of business from George Gentile, a senior vice each. others perish. They support an The new businesses are copter rotor, the oil is dragged He is annoyed that the suppose. tiie state appears to have been president industry-wide petition generally to be found hidden ceatrifugally out and away from They are produced in a under Republicans, although enjoying more or less halted. Hi the surprisingly asking Dick and Edward Bodine will away behind the trees in what One example is the humble the bearings), Kaman found that clean shop behind Federal trade law for a rare majority in the State 1970s, some 30 companies a year be dining off oyster stew at suburban America would call trade of signwriting, which one there was money to be made a small panelled office where temporary countervailing duties, legislature, failed to amend the were closing down or moving the country club for a while the countryside. There is no of Gerber’s subsidiaries has con- ftom distributing components, the Bodine brothers have their on grounds of national security. state depreciation allowances out; the " yet figure is now down to Silicon Valley here, but a verted into a computer- but not from making them. To- desks. The company employs The whole thing that makes to bring them into line with 10 or 15 a year. Mr Carson says Sprinkling of entrepreneurial controlled process. Gerber, too, day, the is selling 175 people to produce around 35 manufacturing productive is Federal rates. “1 think- we company the main reasons are that the outfits that find the climate machin «j.,f a year, and has been helped by the state's £200m worth a year through 160 using machine tools. It’s the industry would have done better with a Christian Tyler State Government has become physical, as well as economic— tax-free bonds to raise money outlets. AUTOMATION SPARKS UNREST An industrial elite is forced into retreat - • A' taut --of mUcemen. are-jdrexdy out, despite the • than most of the would-be riot, dressed for a has been proximity of Chrjdtmas. . strikers. He has worked for posted -at the 'main factory East Hartford' has1 already' Pratt and Whitney for 23 Nobody gate. It is a black and fxees- voted to reject the new wage years and voted tonight, knows for ing December night in East and conditions contract the first time la bis career, Hartford, the wrong side iff offered by the company, but for a strike. the tracks. not by the two-thirds majority Towards U o’clock; a Across the road, three required by union rates for a general pushing and shoving breviers burn outside the strike. After a legal tussle, starts at the back of tiie trade union hall and new the union has been allowed to lobby, and word runs through the television vans are poll the East Hartford the crowd that the votes have like arriving. workers workers again. all been counted. As they Connecticut The of Pratt and Whitney, the world, “Pm a sheet-metal man," press forward some of the famous aircraft engine manu- says a union steward at the men shout "Strike! Strike! facturer, are voting whether back or the crash. “If they Strike!" to call the first all-out strike bring a new machine in, I Others, nearer the front at against the company, one of want the opportunity to learn the ruck, are muttering; “ IPs the state's biggest employers, to work font machine. not enough!” in 25 years. “Ihaf* not asking for a By the time the crowd has job guarantee; just the funnelled through Connecticut This dispute, the most the door- guarantee of an opportunity way into the serious In Connecticut for a assembly room, to learn." the coant has already been long time, is not about wages. The machinists mounted a announced The workers — black and to the reporters strike against the company in clustered round white, women and men are the counting — 1960 and, with less member- table under the probably the best paid indus- stage. There ship than today, were rented. are angry shouts trial employees in the state. from the ** They are about profits leaders of the crowd, It Is about Oue rate of who before people,” says a tall have already change, automation and job sensed defeat. National young black. “Bat they've Bank security. Ifo Rudy Buck, president realised by new that they According to local leaders of Local 1746, is up on the have pushed us too far. of the Machinists* Union, stage blankly announcing that once again East Hartford r ASM Jobs have gone in the e know the people, the business di- Our correspondent hanking services last five years. Bach assembly plant, the core of Pratt line the company builds Contractors and Whitney's business, ban mate, and the relocation sites. Ufe are established and strong. Connecticut replaces 56 men. It is the Over the years Pratt and foiled to vote for strike action. know the The key players in every in- National Bank has relationships with more than right of those made redundant Whitney, now a subsidiary of company’s wages pro- dusfcry to priority In retraining and the conglomerate United posals have been rejected by j f in the state. Everything that 400 banks worldwide. transfer that the union says Technologies, has been sub- three-quarters of the member- a European company ship, bat only considering a move to Con- WU help both yon and your employees Is being refused. contracting work outside the 55 per cent has aid Yes to necticut is likely About a hundred men and plant and outside the state, a strike. to need. relocate. Our goal is to make your move as Men from easy women, most wearing thickly just as Boeing; the airframe the other striking We have plants at the largest network in the and as comfortable as we can. We’ll help padded jackets, are milling maker on the other side of North Haven, you Southington state. With over about the entrance ball of the US has been subcontract- and Middletown, 150 branches statewide, wher- establish your personal banking relationships, are incensed. Local 1746 the union branch ing its work worldwide. For a moment ever you are, are. it looks we including mortgages. covering the plant. Ihey are as though a nasty scene will drinking coffee, grnmhiitiy The men at Local 1746 say take place. Some Wre the state's leader in commercial are about the company, arguing that another 1,500 jobs could so angry that they seem banking, Connecticut National Bank is the principal be lost. bent providing a full range of services to wNh one another, stamping Unemployment fs not on mobbing the wiio subsidiary high in this area, but the gate to prevent companies throughout of Hartford National Corporation, the their feet. -the midnight Connecticut. Pratt shift The office is packed with and Whitney people coming iw Ufe have largest Connecticut-based bank holding com- the resources to help yoarcom- local newspaper reporters. suffer an unusual disadvan- But to the event they drift pany We trace our roots back to 3792. Nearby, the assembly hall, tage, according to another disconsolately away. Few can paMy grow With assets in excess of $6 billion, in be tellers are counting the ballot mHiiant. Because they are so bothered even to drop next Connecticut If you're a company considering a move to door National Bank is particularly well slips that will decide whether -weB-pald (hourly rates are to the big drinking Connecticut, talk to the people whose know-how between £11 and £12) other saloon where the placed to serve your financing needs-with last Bast Hartford, biggest by a events of Ung way of the tour Pratt employers an wary of taking ™ B*gnt are already appear, service and realistic terms. can pay off big for you and your company The and Whitney plants In the them ov they know tM as log on a midnight television soon as Pratt and Whitney news Hh know the people people who know Connecticut best TTie people area, will join its three sister programme. yon need to know starts hiring of factories on strike. again, the new J^e vorkers of East Hart- need to make the Connecticut National Bank. fora. Ml right business connec- Some 4,604 of the East Hart- recruits win go straight back the industrial elite of if they can. Connecticut, tions locally and we’ll be pleased to make the ford plant’s 7,706 hourly-paid have just lest more yards or introductions. employees are members of Another sum, -gmafi and ground In a For more information contact John G. the Machinists Union and are well-dressed, joins the fo*foat from the forces group. of“W entitled to vote. Five He Is “ a specialist;'' i ndustrial change. Wre seeking industrial revenue bonds Petrasch, Vice PresidentEurope, Connecticut he says, Aggressively thousand of their colleagues earning $40-50 a week more Christian to build commercial banking rela- National Bank, 777 Main Street, Hartford, Tyler tionships that last. Connecticut 06115, 205^/728-2509, Telex 99339. More incentives for investment Know-How That Pays Off 9400m, saving 13,000 old jobs CONTINUED FROM PREVIOUS and creating 4,000 new ones » Job prot in scheme for companies PAGE tiie 1985 tax year. and in t provides helpp with Industrial revenue bonds, a technology. m cheap form of development capital for smaller businesses, scene. For that, yon go to U are important instruments. But clpally own* Gmnectpit Dallas, or LJL, or someplace.” dustnairtn«rf^T parks,^ where they may be threatened by the tore infn state, like is provided. The the rest of the federal tax reform bills So far now companies, Union, has a range of financial appearing in Washington. . emp designed nearly 27.000 Incentives to keep A state-run product develop, moved people Mthpnal native companies within its to these meat corporation 45* finances new Investment bowlers as well as to attract ideas and ventures. in the There are feas, special programmes whether manufaci newcomers, Low-cost, long-term for small or research, manufacturers and are eligible? capital finance Is administered for firms advantages; Bank setting up to the old industrial urban ente' by the Connecticut Development ** Wfig created area of the Naugatuck Valley. 1 the Authority, which handed out The state also tries to bring dereliction affects even small-town aid to projects worth nearly suppliers and customers to- Ct — ' . —_— 1 9D0 £ Financial Times Wednesday January 15 1986 27 FT COMMERCIAL LAW REPORTS FT UNIT TRUST INFORMATION SERVICE terns a Co Ltd tedo ()Xa) Moon FMrf BHnaueu (a) (el (a) Um * Cawra (IM* Ttf saonJ Ltd 9-17 P^>l>«m( 0*4*4581*4 2 Si Mra» Aw*. Imon CC3A BSP 01-6231212 Council not 5 te»M I|* i SO. BnWOBfl 027723*634 liable for builder’s loss AUTHORISES **3 n,fca57 iomOi -041 43* Otenuai Tnm M®*1*1 BSJ| *041 020 Etenftcc . lute - - - lMf.1 “HI Sii ftadnajaTraa — 1 U HO oravtaum before -0-H 2» any design certificate or the relevant *cnati- HMlklln* 02 S3 -fiat i*5 _ building regulations. was not to safeguard the UNIT TRUSTS Grarat !«2 -*4| — Do (Oral 02 4*3 -or 2*1 FwSmSra»r.:r_:-: INVESTORS IN INDUSTRY full working drawings of founda- ' !74 Regulation D3 specified the developer or anyone else against TiL ija Stan 61 *a -01 12 CM _ COMMERCIAL tions had been supplied. «Hq iMt Mops, (a) 4MJ -02 076 taHnod PROPERTIES It gave requirements which the founda- economic loss. aOHaHWMRa.BpunKflMai 03*5717373 jHoar^ - S0.9 LIMITED v Anglia's architect written notice Srt OSrr 420 FnEaaTn* Sis -07 DISTRICT tions of a building must satisfy. (Z) In view of that statutory . or VMM 5 . COUNCIL In pursuance of section 64 Prw Fne» - Giro Fra* ii* Tit. P HLM LfcSwcHSai. M«J OF SOUTH ot An owner who personally or by purpose, on the basis of Anns, HW hOM UtTm . -0.1 1039 the Public Health Bbl Fhfd ML SSB&—=ds, BEDFORDSHIRE AND Act 1936 that bis agents erected local LosnMa rtrafam the submitted a building, a authority might owe Bnreoart IMt Tmrt Mgat iJJ nS LM OTHERS plans had been m5&*S2iWjtl.LU -JSojQtBJ S31710 -03iSj LtdtnXcXA 260 20 Capons A*. Loads* EC2tt 7JS 01 -6007595 was under a statutory duty to duty to a subsequent occupier to IM £S5*9 HMkrjilfce, Pennaai S«t win OJB 00-935.™. “ passed," *01 OJ LMkMBB -JZ26J 337. J 001 ratCnxnli ni7J 123JJ I Court of Appeal (Lord Jitstice comply with them. take reasonable care to ensure 530 -«* J774J 25* T oa Anglia employed con- -02l DCS53 Slade. The aH-important question was the building was erected in BwJui water MramBwat Co US (c) Lord Justice Robert tractors. Its structural engineers „ to) ' Goff whether the council, in exercis- accordance with regulations, so _ It* SlDtV EsfonB*. Lanka EC2P 2JT 01. £» Lforte ak. IMt Tit Mnen. IM (aj and Sir John Megaw) : prepared latte a drawing showing ing LM Grama 9. „_Jl76.a "ymn 0*1*. OemrOr-Sm, watews. » Smh December its functions under the 1936 as not to cause danger to his 205 tamllMiJal -077.9 _ 329 09035025*1 0C*6ngO444 4S9144 20, 1985 foundation details. They sent a 0 Act. owed 3*1 g|3_ 5*0 90 ni8M8* 3 161* -2*i 356 to a duty of care to health or personal safety. .. ooecni S4L To. f!51 copy the architects who said 3*1 UailMUJul. U6 pn lAff— I So. Co. Rk. 556 as the_ building- owner. 13) that duty UK IWrulouIJa I4_. UK Tv Tga* ^ it appeared to be in order. „ Where of care — UmlMtaR In Dutton [1972] l 373 had been broken as a result THE DUTY or a local The design provided for QB it and L.43 SmacrCaiJMS StaM Asset RbngnKBt fate hoar J36 6 1§J -u. 626 authority, ms held that a local authority, the condition the 0*5 UcmUMUJbX. Da Ulccwvl 239J -L9 626 of property Mi ante Mi—i* ii t when supervising foundations at a depth of six 3*1 ui 591 -Si ua in1X1 ^erasingexercising its rise danger CS Fate Managers Unite* I2S* Jtanej'iPUce, Loadoa SW1 01 4KB 9990 building regulation work. Is feet.Pet. statutory power gave nse to danger to health or I Do (Aural. i®4 59.9 -S3 03 125 HIM MotemLo—a WC1V6PV 01-2*21148 GftWCMtelO.- .-.(155* 1603a 1 90 a - ,.2»7 2167 -22 5J0 5? foundations Hie safety, an occupier to the I — not to protect a builder from When a proper soil investiga- under whom fuaMHUtakwi *Ul &9B tam i iu J— 9 Juno 1152a VIA DtUul IA1 510 Public ‘ 0.41 Oa.*nm 214 1 117 J 5-10 9 economic loss tion was subsequently carried Health Acts, owed a duty duty was owed might restore the ta TKa>te . JJ62 167 -03 0*7 but to ensure CS Poniora ira. Fa — Do itamJ . bl] 1742 -0? to the plaintiff who had bought property and recover M*»«fci|UK*teD _ 067 out in bis expendi- . that there will be no danger June 1975. the depth of Unit TfttKs PLC UXb) m. .. — — lti BOM 10S1 — JatabMt-. 96 4 Ml -MJ* 022 the house SMI lanil Ule IMt Tmrt Hoyts. LM -Unrannrnal D* Utanral. 169 SW Hid 022 to the health the fill was found to be some 30 from the owner-builder ture from The local authority. MM Outer Cut, gtal lten 1EL and safety of 107991 61066 & 28291 2-6Higk9l.PslMnBar.NtrH PB*rSH22 MAnramACcB . . HB 9*9 1 L2I to 40 feet, with a high ratio of and was occupying Jt when Whether he had such a right Crab* !»- fls* W0S1 —a«H 523 Garnett (Mb) IMt Da lAccra 1 _ 950 101* *C2 L21 occupiers and the public; and Mb«L LM PkMcBaw .ni 913 049 voids. Nevertheless, serious defects in Its internal most depend on the facts. -S3 accordingly, an authority in Decem- 965 -oT 6*9 ber 1973, all interested parties structure developed. (4) On the basis of Peabody, 1550 -fid 731 which passes inadequate 172* -O 231 appeared content In Anns [197SJ AC 728 the however, a local authority would 99*fHnlr OataTr J153* lb*Alb 133 IJJ -0| foundations is not liable in » Cmm Fund teagw LM (z) CvrtlMUIa... _ Oa. (*ce»i 1 .12150 27 The structural engineers certi- House of Lords held the council normally owe no duty to an Gomq Ml Cran 45 damages to the *0,1 1 n—« tej. Wcmtrin.KA9 0*8 builder, who. fied that all structural work on was under a duty to plaintiff original owner-builder because it r— k”’ ’ — GutateoaGrah DJ> having failed to comply jjp wwnM - 1563 UojjT* Ute IMt TiL Mngn. LM with the foundations would occupiers to take reasonable care was normally incumbent hm Ik «J 2 Si kUrrAra, EC3ASBP 01-9200313 conform on him " buiMifflg regulations, — 71 7 Tag has to to the current editions of British to see that bye-daws made to ensure that the building was I temni U190 L»0 IXUM -LM >64 — ’ear. MUM 1 JW3 9524 -03 demolish and rebuild Standard [0b3 1 due to Code of Practice 2004. pursuant to the 1936 Act were erected in accordance with the Capef (Jaw) HmL Ltd mi aMferir : ra r-B. _g.] li 2.9* C* Truy Ba Jfefl -01 settlement. On the basis of inspection, complied with. relevant regulations. It couH 100 (Murad St. EC2N UR) WU lB2.b B79* -OJ 522 The Court Grata lag* of Appeal so held various trial pits, the structural In Dennis [1983] 1 QB 409 the not have been Parliament's In- run, fewsMa IMt 1st Hnont Ltd ik Dm SZD 766* -OJ 552 . UA Craram . , B 571 *«: when allowing engineers' plans, plaintiffs tention, Noru 1*0 0 Loral Lara. Lankan EC3BDT 01-623„ L*6 an appeal by the drawings and had commissioned a save perhaps in excep- 1212 U5.Cmnk0nL_ ...£j 51 5 *02 L*6 Puce* an Jta, B. Not daBM 4* 15 CmM UcCmai. tor 5631 ~-L2l District Council of South Bed' calculations and the design certi- builder, but xk> architect or tional circumstances, that a local in Cater AOm IMt Til ... fordshire from a decision by ficate. the council raised no structural engineer, to construct authority could owe a duty to a Manager* - Local AnttortUa* Mnbnl Invert. Tst* 1 King WUBaai 5t EC4N 7AU 01-623(014 77 London Wan. ECZK IDS DI MS 1815 Judge William Stabb objection to the 9-17 riny Bn. H QC, sitting proposed founda- a house for their own occupation person who was in such breach. CavMnCHTa It*.* IflOJl -Oil UJ* — FxWVFrad Drill .J 165JS — TI’o I 7« as an official tions. 200 Erawfiraicif* 553 00 referee, that it was on a site which consisted partly (5) A fortiori, a local authority, Cent of Fla. of Jt; Jl -0-a M. Clare* of Entfwttt £3S ! 117-11 -U* 600 FraiM5KFdDK» J 9355 liable to property developer On November 26 1974 the 77 Laten WaB, Laroan In- of unfilled sandpit They success- in exercising the supervisory EC3N 106 01 58SW5 UnMavraa AaridW ter ( Lute r»FraH0rc31 Wmb J - I vestors in Industry Commercial architects issued a certificate of fully sued the local authority for powers, would normally owe no 357*5 l *75 (BMlMSKa...] x»a5 1 . MLS6 Properties practical completion. By Decern- WMEi 34. Or* Fa Fawmiw. Bi9 AMkjfrtan, EON 2A£ 01-5885317 Undw A HontAester (Til UflM] LM Ltd (formerly Anglia negligence in passing plans indi- duty to an original owner-builder FrEnUTo. Oft 31 .1 loom I : llL20 * MteanmtraTMi Wratlaor Par*. Einrr EX5 IDS 039221947 Commercial Properties Ltd) for ?er ’* _ ominous cracks had eating inadequate foundations. had the benefit of advice 5—Mr Co.fa- TIL Chariaco Ctertttes Mm GteaNO AnsiiKra TA. who U5A.fa.TB. Tmta Amriui Tw 430 loss arising out of inadequate *PP«appearedar min the external brick- In Acrecrest from architects, engineers and 15 Mporgaif, Laadan. CC2 01-6389121 ®? [1983] QB 260, , £S£|*!!2raSs Tran 0k51 15677 tom „ . foundations passed by the work of two of the warehouses, plaintiffs contractors, relied it sasM:™* conn- wfaere the were the and had on Do n 1 *57*5 1 - 11 Mtmuuilna Lutliutaj Witter IMt Tit MgmL LM - tnMJtetu k>72 f50 cil. A third party claim for January 27 even the service original owner-builder but not It would normally be neither JapraTnai ,_b4# 19 Wkfegate Si, London EJ 7HP 01-377 Clarities OfflcU TraapOraTiMU. . _pa» road was signs WO Invest Fantet indemnity by the council showing of settle- . against the occupier, the Court of Appeal reasonable nor just to impose on MM. IK 1674 7221 . J 1*0 77 laadaa Waa, Undo* EC2N 10B 01-568 1815 BwnSM Rofrt Et IMt M*S. LM (l) an< L - J 1*0 architects Hamilton Associates, ment * cracks. In June 1975 local liability to -__Bg4 — tend Eadana. Laadaa EC3V 3LS 01-6382020 Loadoa Law IMt Inst held that an owner^buiWeT who the authority a I Knot LM AtSfSicjLz ~J 91645 | did not arise. the occupier of one of the -271 0*1 Bter Hnac, 014 Srauul Unr, EC* 01 2366105 bad delegated the building work indemnify him against liability -100 -02 Aitertte secaritta Ltd Clerical Medical IMt Trust IM§ 919 Crate Grate JM1? 352 Ti -*.« lid Section of warehouses wrote to Anglia wt UXO *»Ea . Jhi mis 64(1) the Public to an independent contractor and resulting from such reliance. Nama* Pta*. BrtnM — -u 22* saying some collapse 131 fmut r BS20JH ted -®-7 2S9M -20 327 Health Act 1936 provides: appeared Dennis to regarded as GaraalEaadT- had not himself been negligent, was be CKKUG>Mtk_ 1*>* 32.1 taw-— 0232 IlO *0J 227 H* G Gran* feXOCD “ imminent ill 150 -o.« o Toter Mill, Where plans . . . are in accord- Included a decision its own special m tteeChan EC3H68Q 01426 4588 was in the class of on praagarL- ststf’S 196*1 -14 ance with Eventually in March 1979 200 U«i Dutara 01-219 building [regulations], persons to whom a local facts. 179ll -60) L77 JmncanACncM— 1975 Anglia decided to demolish the UuutaUara] . . 7264 deposited with a local authority authority doty to take The legislature, in imposing on Man lie— County Bank UT LM owed a Amncn facDtey - 3224 warehouses and rebuild them on VtaM 161 CkeMaaie. Loadoa — ... if the plans are defective or reasonable care in the inspection local authorities for the general M*> EC2V6CD 01-7261999 [•OWIIMOI »| 9 12a rutety Sq. Laddan EC2* ll.r O1-62B605O , proper foundations. It 4nrr«vi5aMrC« i show that the proposed work issued a protection the public the rele- -4 5J i and approval of works. of assfc-z* M lAumllw- ... 52 writ against the council, claim- EanpeaiEfiMiiTd !10 would contravene any of those When Judge Stabb delivered vant statutory obligations under — ^ tsasBr=& sa js tatrteta- . - ... 70 6 ing damages for negligence or - Em lac. 1331 617 IAccbbIWU — -768 [regulations], they shall reject section coulld have 1162 FJranoal 1224 has judgment in the present case 64. not Mnotn Matun tMt Trait Hinnm 1505 the plans." breach of statutory duty under Z67 GHISomra S0.4 LM Unu - _ intended to protect a building POBw 44*32 sc MKMl-mB. EC3 01-6239333 the Public Health Acts 1936 and the tide of judicial authority had 2M CatellacTW M2 Ctenm Grate U6J Section 4(6) of the Public 1*7 bMIncdM HSU JI3 Taste B» ba OaV M- 134J& 1*3 ta a Grate 770« been flowing strongly against developer such as Anglia against Mtalteta W w Health Act 1961: "If a 1961, in connection with approval lacaairafaiMlkl 5J1 954 « person local authorities. In October damage which he might suffer 0*0 IM BccorarTB jjj tetkaramua.- 1M.4 ui _ £34 of the plans and the inspection. 1-B7 Jpran*5Pac6ra.. teoraiT- 1550 IM. . . . fails to comply with . . . 002 MomUato! l)U 1964 the House of Lords gave its through his failure to comply 010 >kink ** Back Tn.. GdlTnM- 560 building regulations The council joined the struc- Z51 57 Etetara— 151 he shall be derision in Peabody with building regulations- or to 13* lataHtaCaiW—w SiVaateUlteK lAmm Mu 1794 - tural engineers and the archi- [1985] AC - — 010 5*an Ean Asa StVhMIkfklac—Jni liable to a fine/ entitle hdm an indemnity 206 EaraTiM 1771 ; -r v. ..^ . tents as third nation “laiminK 910 winch appeared to call a halt to from (Accm Uni 171 Regulation D3 Crmm Unit Tntst Santas LM Fir fawn 1094 to that process. ratepayers against the conse- Mmlro BeamC FM Muwiui (0) indemnity in the ARteny IMt Trt. Mgs. LMCaMc) Cnwn Hoot. MUMGU21 lxw 04862 2*933 LM (Accrai Dot (I 1122 Regulations 1972vn SI l ermra UT. Main, 5, to. ttetm In Peabody drainage Quences of such failure. 31 Son SUM, Loadm EC2M ZAP 070845322 Cnra» «n» 1 *- Ti^a -2J\ 609 Fm4D* M> Tttv 7Q2.5 S- “' heingbeing held Lable.liable. The proceed-proceed' plane BrMtaMLtate No. !E lAaan ItiUCkl 317) provides: . . the The council therefore, in con- Cm Intel Tmi- 0277217916 114 7 hags against approved by the load authority CnmOamciiil Hira CM IK Gnte Tfl -1465 G«r4 foundations of a building shall the structural Crate Fl Mas (Ml sidering whether to approve the VfcU Fd E65 ten GcaPiap State TbJ*65 53 =&2£ UtatO 1.023.7 engineers were discontinued were, to the knowledge of the HU* Enter — 706 DartiagtM , (a) safely sustain . . Unit Trait Mngt LM GAItete AS . the . . . plans, before trial because they local authority, not adhered to and in its subsequent Mu 114 load in such a manner were 52^12^ HmMtm Bate Unit Tract Naaajm LM (?) as not to TaMtet IteTa 5141 i£ . J60 uninsured. by the plaintiffs. In the Court of inspection, owed no duty of care hu -uJ 457 Pmritr ITT Mm*, cause any settlement or other 5 RarWgh Htenn. Brentinat «wi(ACOCT imu 574 Appeal it was said there was no to Anglia. The appeal was PbmUu Miy Unit Fund Mmgw E«» D277217916 Hte<*ranr >510 Judge William Stabb concluded F4 1* (Aeon, movement . . JtaMta Jra __J22L9 MLfl HUI 222 36/38 Nn Broad St EC2H 1HU 01-6384485 teteCteBUW^U -og 142 llano h657 justification “for extending the allowed. *-T———-r B-ir—* 52H* that the council owed a duty of Htatera Ewnr l*anr . b7 4 * * Doc tac JralO J79J BS*I 1 451 * For die council: Piers Ash- H—frutEwtpmuTa 150 (Accunllbi care to Anglia, though Anglia law of negligence by imposing tateteiote LORD JUSTICE' SLADE, giving Atlanta OMt Manager* LM tinmort Fond Hagt LM HtaraitekhKTiu.. KLO Ira. a authority worth QC ond Adrian Brunner 772 (ACCm tints) J503 the judgment was not the occupier of the build- on local ... a duty 46 kfcwtee, London ECU 6LL 01-6381711 RegUHoai*, KMg WriBamSl. EC4A9/UI 01-6234951 HMnteiFafal. of the court, said TOkunntarannn - Jtate>6 Eowrai— , . .. (Barlow Lyde and Gilbert). 33.9 -M3 0*1 «— »0 ings and had engaged indepen- . . . towards a site owner who 2) Gin Cj|> Fail Mt- 0252 (Accra) UmU IwBi, that in 1972 a site, which had -5-4 HWaRaikua.. (74 proper require- For the developer: Stanley 6M 041 GteCrateDAct Jtara StelkrCtfi —jkL7 dent contractors, architects and disregards the *0.4 a*b OnlraFtete . formerly contained an excep- . (Accrai Urau Juj Brodie QC and Andrew Pugh 139 UntacFoMAtc ZJbS tionally engineers. He said: “This was ments of the load authority.” large pool, was acquired uim*. Utafai .jm£.07o* (Hunt and Hunt, Romford). 6** DuncAi Dntt Trt Mns LM established Acrecrest with n I (h) by a haulage contractor. He was in " [1983] That passage was cited W (O . ,_bTJ For die architects: Stephen 3® 3CtetowSLEdtaterMEK240S 1-2254571 Pntecr UT Adtek Rtotak ROM. IIomUmu . granted planning permission [1983] QB 260. approval in the House of Lords, Sko«I to . Desch QC and Harry de Lot- J® Bran* Grate Ta. 0277217238 Enw _B60« tip soil, hardcore and other He hedd the council was in which dismissed an appeal and Ewnwra Grate Tn J970 45J is (Aoml Uta&l -Jl0*53 biniere (BextaU Erskine and 272 FvEMTiva —Hi V* StellrrDMHnrv- ...JU95 material. breach of its statutory duty and overruled Acrecrest. JwaSterCMTn 0055 111. UMU Company). hraiiMnaFl) §1 -1?a*n In August 1972 Anglia con- its duty of care. The council Five propositions eouOd be BaflBa Citford A Co Ltd S.OU Davies Trait tracted buy site. appealed. derived Anns and Peabody By Rachel 3 GI«4Mk St. EdWmgk on-226 6066 Ehl UnH Mnngm LM ~ to the Anglia from (Acc. UlUfcl J M 4 MeMie Crejoea. EdBEwM and its architects council breach of the of the overriding of Barrister 365J L39 knew that The was in in fight 2504 034 CFW 4menc» FmMU JtO.7 levelling and refilling were going its obligation under section 64 Acrecrest, 1885 149 EFU Craui FiteUI PfTOT-1 liriDRl5 3BB1 — IGrateAtacFM kK-AEnite U27 on. The council most also of the 1936 Act on account of (1) The purpose for Which the THESE REPORTS wiU be Pttete UK Dk1S__fiilZ IM* KJWtaiUl.- have known because it had given its passing the plans; its failure legislature had conferred the published in volume form with UOi ODD _ 1SES!= M6M IMt Mnm LM BG Anma III. 145J 0*6 CFM Rairacn F«du 206 EjOratac — 1291g toGM to permission for tipping. to object the over building the full texts of judgments. For BSTKManb 157* 216 EFMSaikrAnCa'sUI. 010 Hose, Hm* Wwtteg to design detaHs; supervisory powers SteteCMDn D5 Hwnra 'EMrarui lUA EFH ToCw FraKUJ 023 Pte.&BH B.4 . ...» 1779 189. On November 15 1973 the and its approval of the founda- operations on local authorities details contact Kluwer Law .ituMK-tiratei &573 1MJE® council gave Anglia planning cions. was to protect occupiers and Publishing, Africa House. 68 BKEataUI- IO S ssiiwi 1102! SS ‘imrawtei JauaJra* H“sl lActellltel) Ill9B9 201 permission to build four ware- However, it was clear that members of the public against Kingsway. London WC2B 6ED. TkcncJraU Cte||| MraMHl houses on the site. that date. safety. It Tel. 01-831 0391. SterJmCacJMlO^ o®- ub MIA Unit Trast Managonwat On Anglia itself was in breach of danger to health and •MUe Trait Itannsn LM -ImraXtarad zaysr*** -S3 0» 99-1M 5aodHii9 Ra, Usteowe Mine* S. VMOM W1X — | 1 9 5 — — —. + “ - . B 15 1986 30 Financial Times Wednesday January COMMODITIES AND AGRICULTURE ORANGE JUICE 15,000 ft. contoflb LONDON UlojB INDICES US MARKETS Close rtiyn Low Jamaican 9620 PRECIOUS METALS were Jam 98JO 96.30 94.80 Bank sues Tin Council MARKETS FINANCIAL TIMES March njo 98-00 96.25 97.40 generally awatiug steady May 98.58 99 JO 97 80 99.06 bauxite OVERNIGHT Strength In Jan. MjJan. 13]nrth~i^o.Yeara(K* fresh direction from financial July 100 JO 101.00 99.60 101.10 BY STEFAN WAGSTYL 102.10 New York and news that the markets, Teporo Hein old Sept 101 JO 101 -SO 101.60 llm.sa' Nov 102.00 10L0O 102.00 102.60 Tin battle. with half the votes on the ITC, Bank of England regarded a Markets, reports Heinold Com- 103.10 THE INTERNATIONAL (Boses July 1 1962-100} 102.75 193.00 HB.70 attracted Jen output Council, which yesterday The case indicates that the indicated that they are willing farther increase in base lend- modities, Copper March 103.75 103.00 moo 104.80 104.70 started its latest emergency groups of 16 banks and 13 to negotiate on the Newco plan. ing raxes as inappropriate REUTERS tight haying In response to Msy UM.OQ the Increase in sales of session on the three-month-old broken are having increasing But consumer countries, helped to posh copper values Jin.i4 jaiu lSJflW wuS/trayex j agpYwaflo PLATINUM » tray cut sharply tin crisis, is being sued by one difficulty in maintaining a maki ng up the other half Of np farther on the London durable goods. Aluminium 4 Prav 1888/4,1863* j creditors. united front They stressed last the ITC, remained divided. Metal Exchange- cash wu jISmV moved Slightly lower on Close Wfih Uw of its The 361-8 By Canute " 383.5 380J) James hi Kingston night that time was running EEC countries once again said higher grade quotation {Bam: September 18 193lj-100}~ profit-taking following Mon- Jan 381.0 Corporation, added 363.0 — — 363.9 Arab Banking rise. March out for tiie latest rescue plan that they had no mandate to £15 to Monday's £14 rise at day’s Sharp Speculative 301. 385.7 JAMAICA'S BAUXITE output which together with 15 other DOW JONES April 384-5 350.0 S It not dear long liquidation led to sharp 388.0 346.0 the ITC, which accumulated negotiate. is I £1,063.50 tonne 387-8 388.5 In 1985 fell to O.Z4xd tonnes, 30 banks has lent the ITC some for a — the first July Dow [ Jan. ) Jan. Y 373.4 gross debts of about £900m to whether West Germany, time it has breached the Mr declines in sugar values. Oct 372-3 373,0 371.0 per cent below 1984 output, £350m, is suing the council for Jonas 15 : io aso 3HJ 376.0 378.0 378.0 fund a tin stockpile in an France and Holland and others £1,000 mark since mid- pan Cocoa finned mi trade buying Jan according to the Jamaica return of about £i5m. It is the ' Spot 18396138 , 46 120 failure to attempt to support prices. which have taken a tough line September. Other base metals . 6® and the to respond SILVER SMO Cray os. cents/troy ot Bauxite Institute, a state agency also asking for a court injunc- Fut, 188.1* — ,184.80 so far are prepared to settle at markets were quiet. Nervosa _ disappointing grind results. which oversees the industry. tion to stop the ITC selling any put forward (Bata: acam bar Lew Prev The rescue plan, -but are 31 1931 —100) Coffee registered sharp gains Close High the end of the day— trading on the coffee market * avails 538.0 8003 Exports of alumina were Nat bis dun la uapat- - 600.6 589.5 assets. by Mr Peter Graham, senior in the limitless March post- deliberately holding out to saw tbe March position •ton of tin LME. 603.6 •Men taws 603.1 per cent below those of 1984, deputy chairman of Standard end In Feb It is understood that the ITC extract better terms from the the middle of a £150 range at tion on good trade baying. March 8073 610.5 604.6 607.0 at 1.6m tonnes. Chartered Bank, and Mr Ralph May 615-5 616.0 614.0 815.1 is contesting the action by creditors. Dr GuenterBebrendt, £2,611 a tonne, down £650 on Cotton weakened on technical The Institute said the fall in pleading diplomatic immunity Kestenbaum, joint managing selling linked to Monday’s 823.8 6263 621.0 623.5 tbe West German delegation the day. Dealers said many 6323 6363 6313 632.4 Jamaican output, the world's director of Gerald Metals, MAIN PRICE CHANGES reversal. The energy com- Sept as an Intergovernmental body. head, said on Monday that his operators bad became wary Dec 6453 640.0 6443 645.6 third largest bauxite producer, involves the creation of a new In tonne* unless othtnwln stated. nervous The case is being heard in objections concerned the rela- following the recent violent plex weakened on Jan 660-5 — 650.3 was caused in part by the private in chambers by Mr company to take over the selling ahead of the weekly March 6S93 860.0 6883 656.3 tive size of the government and price fluctuations and as a — termination of mining and continues council’s debts and assets and trade stocks report. The May 8683 — 666.7 Justice Steyn and bank contributions to the result trading was less active Jan. 14 + or Month shipping of ore by Reynolds selling off the tin stockpile over 1B86 — mao soyabean complex gained “11" today. package. than of late. Producer calls METALS SUGAR WOULD 112,000 lb. Jamaica Mines, a subsidiary of three years. ground In the nearbys on light cents/lb News of the action win It could also be that Britain's for early suspension of Inter- Reynolds Metals of the US in Alumlnlu m.... -I country movement and con- remind the tin council and its It would be funded with partners are applying pres- national Coffee Agreement Close High Lew Prav June 1964. EEC Frew Ml jS 1220/240,' + 20 [*118*88 tinued concern over Brazilian creditor banks and London £200m from FTC member sure on the UK Government to quotas also encouraged Copper. March 5.13 534 5.07 6-34 It said also that last year’s crop prospects. Maize and 5.67 Cash h i £ lft May 638 5.54 5.28 Metal Exchange brokers of tbe governments, £50m from put up money the Government caution, they added. On tbe Oracle. 1003.8 > j£970.SB production figures reflected the — Smths k 1023 JU\ + 14.SX996.25 wheat traded mixed with new July 5.58 5.71 591 R +» possibility that the whole crisis brokers and £2Qm from banks. has hinted that it would guaran- cocoa market a bigger-tban- 1*340.26,-0.73; 6.82 completion of a contract Gold Tray oz- 8321.78 crops weak In reaction- to the Sept 5.74 637 638 Lead Cash XS68 *-0.6 X275.0 6.09 may yet have to be resolved in At yesterday’s council tee the first £50m of the new expected West German grind- 1- Oct 538 6.04 5.79 between the Jamaican Govern- 3 mth*_ £267 .73 + O.SBj-- lower than expected loan rate. — a long and expensive legal session, tin producing countries, bank finance needed for Newco. figure for the fourth Jan 632 6.S3 ment and the US General ings NfoJcel March 635 «.«a 646 6.70 for the quarter of 1985 was counter- Free Mfct 1 89/1050 1—0.81 i2D0i22Qc May 635 635 8.88 Services Administration Palladium il08.obj— 830 balanced by a lower-than- as . Lootl3sjS94.50 supply of 3.6m tonnes of PtattRum oz •368.71 7 — + 0. ^*336.80 NEW YORK bauxite for the US strategic expected British figure and QfiiakSUrart _ *220 •<•280(270 prices ended little chan ed. Stiver tray oz |418.00pj—4JK 410.60b CHICAGO mineral stockpile. g 8 months l-4.n48l.80p ALUMINIUM 40,000 farm incomes down 43% — |« 30.e p ft, corns/* UK T.MB prices supplied by Institute attributed the Tin cash lb, cente/lb The — * Jan 36^40 55.40 LIVE CATTLE 40300 Trading. 3 month*— t I'linz fall In alumina exports to the Amalgamated Metal Feb EB.70 — 64.80 BY ANDREW GOWERS Tungsten .. *06.92 887.77 Close High Lew Prav last February of an March 56.06 5530 59.15 5636 shutdown Wolfram 22.0th „ 883.-61 1*66,64 Feta 57.06 5837 6730 56.46 May 96.06 87 JO 96.16 58.86 800,000 tonnes a year refinery extent of tbe public spending on agriculture ship between liabilities and Zina (£ 444.6 - 0.5 £503 April 60.16 60.60 59.30 60.12 THE FULL July 57JS 57.70 S7.40 67JS ALUMINIUM 3 months .(£48B.7fi< 2J25 C6O7.0 June 80.07 5930 59 .76 owned by the Aluminium damage wrought among UK in the UK last year—the first assets remains sound for the Sept 6735 5736 603* PrdducK 888*780 — 1*8881878 Aug 58.70 50.00 58.00 58.65 Company of America. fanners by last summer’s poor time for as long as officials can majority of farm businesses.” Dec 57.75 — — 98.75 Unofficial or Oct 57.90 57.90 57.05 57.40 | + Jan 99.05 — — 53.0S • The Australian Government weather was revealed yesterday remember that support spend- As to investment, the Minis- — High/low OILS Dec 59.20 58.75 59.50 I douitun.) March 9835 — 63.66 5930 has given approval for an per tonne with the publication of official ing has exceeded incomes. This try reckons that the value of £ Coconut (Phil) May 60.25 — — 6035 LIVE HOGS 30,000 ip. esnta/fb export shipment of bauxite by figures showing that agricul- largely reflects increased spend- new investment in fixed assets Palm Malayan ; : Cash J 805-7+ 788 797. COCOA 10 tonnes. S/tonnes Gove Aluminium although the last tural Incomes fell by 43 per ing on intervention purchases fell year by 7 per cent 3 months ! B33-.6+0.5 846(822 Close Low Prav Close High Low Prav dispute over tihe way it prices with buildings SEEDS Feb 48.07 46.18 44.10 cent in 1985. of farm produce. and works bear- March *177 *184 X1G6 2161 its bauxite has not been ing the brunt of the decrease. Official closing (im): Cash 797-5 May 77K April 41.16 41.20 40.10 40.60 The drop, which followed a Copra Pit'll i?£4bv lTaBSS" 2227 2201 June 4446 44.70 43.88 4387 resolved, Fanning incomes totalled (800.5-1), throe months 823-. 5 (826.5- lJOy 1*292.1 July 2288 2259 On aggregate, the volume of Soyabean (U.SJ BM _i—4,8 2238 2240 July 45.20 46.36 «J0 44 42 similarly sharp increase in £l.l5bn last year, 7). settlement 737-5 (BOD. Final Kerb Sept 2259 down £879m total gross fixed capital forma- 2278 2274 2263 Aug 43.47 43.95 43.15 43.15 1984. is considerably larger than close: 834-5. Dec 2288 2274 from their 1984 level—which 34.450 tonnes. GRAINS Oct 40.66 40.76 4038 «a BO tion is said to have fallen by Turnover: March 2298 _ 2288 METALS the Ministry was expecting as was in turn 35 per cent above Dec 41.60 41.60 41-25 41 20 WEEKLY per 0.1BX1 Mary 2308 — — 2292 recently as last November. 12 cent Barley Fut. Mar. (£118.20.— 13,76 Feb 42J7 4237 4240 42.35 It the figure far 1983, according Malax £142.001 +0.2BX142.60 All prices as supplied by figures indicate COPPER COFFEE “C~ 37300 tb. cents/ lb means that in real terms farm The that tbe Wheat !£11880,+0.Bl|£ll3.4O Bulletin. to the Ministry’s revised esti- Fut Mar. MAIZE 5.000 bu min. eams/M-M> bushel Metal incomes from • Close incomes have reached their mate. Gross output, meanwhile, gap between No. 2 Hard Wint t J t High Higher March 257.40 268.60 25230 arable farming and livestock grade i 24431 Cion High Low ANTIMONY: European free lowest levels since Britain declined by 5 per cent in 1985 (Mmc _ Prav enterprises dramatic- OTHERS May 28234 264.00 259.92 265.9* Merab 246.8 247.2 2*4.6 248.2 market. 99.6 per cent. $ per joined the EEC, and in narrowed July 288.52 267.60 to £11.88bn. Cash <1003— + 16 :iOS5.5/IOO$ 265.00 271.00 May 251.0 251 3. 248.6 250.6 tonne, in warehouse, 2,73042,780. ally last year. This differential 4 , nominal terms they are back 3 month* 11029-.B }+ HA 1031.5.1019 Cocoa Ft. May IE17&4.5 '.+2.6 1*1744.6 Sept 230*8 274.10 2S8.7S 276.78 July 251.4 261.6 248.0 251.4 Bank borrowings by farmers has been widening steadily over Dec 27438 275.00 27430 28030 BISMUTH: European free where they were in 1979. Coffee Ft. Mar. (£2611 1-6.5 '£2432.6 Sept 228.6 230.0 229.4 233.0 rose by a further 5 per cent the past few years, reflecting Official closing (am): Cash 1005.5-8 Cotton A Index 51.30c '+0.86,48.400 March 277-96 279.00 277aB 283-48 Deo 218.4 220.0 218JI 223,0 market, min. 99-99 per cent, (890-.5). three months 1030.5-1 ( 1018.5- Gas Oil Mar. MIOO.OO 6.75:4229 May 280.00 280.00 270.63 *8533 The figures, published by tbe last year to £5.52bn, after the growth in scale and pro- f— March 227 J> 228.0 22B-4 231.0 per pound, tonne lots In ware- 7). settlement 1006 (990.5). Final Kart* Rubber IKIlO] JftB.JlBp l+0-7fl'57.Op May 2314 $ Ministry of Agriculture,* also increasing by an estimated ductivity of cereal COPPER 25.000 lb, cents/lb 232.0 232.0 236.0 units and clow: 1031-32. Sugar (raw) |*28l.Ov i—6.6 I H43 house, 3.40-3.70. Woottoca 64# Close show that farm income only 12 per cent in 1984. But the the cost-price squeeze on other Cittiodti BokiKl+3 ,*00oMo High Low Prav PORK BELLIES 38.000 1b. cartts/B, f — half < 987-9 i >988 Jan 6635 6630 CADMIUM: European free represented about of total Ministry says: “The relation- farm businesses. Cash + 14 987 * Unquoted, t Par 75 lb flask, c Cents 3 months 1 1017-9 ’+14 igiBUMt Feb 68.68 — 68.80 Cloaa HI* Lew Prav market, min. 99.95 per cent. $ per pound, v Jan-Feb. z Fpb. March 6736 67.40 66.50 6635 Fab 62.17 82.60 60-70 51.60 ingots, Official closing (am): Cash 98741 per pound, in warehouse, Hey 67.05 67.30 66.50 66.80 March 62-62 6230 61,18 51 30 0.74-0.79, sticks, 0.780.83. (974-5). throe months 10168 (1004-5), July 67 -2D 67 SO 86.70 6630 May 83.65 6330 62J6 6237 settlement 988 (975). COCOA Sept 67.30 6730 6630 67.00 July 83.40 6330 82X0 62.95 COBALT: European free mar- Turnover: 31.025 tonnes. US Pro- Dec 67.45 67.75 67.10 67.15 Aug 81.05 cuts beef export prices Although occasionally active futures tIJffi 6030 60.77 EEC or price* 69-73 cents per pound. ket, per due Jea 67.50 — 67.20 99.5 per cent S pound, wars generally trapped in a narrow March 67.6S 67.50 67JO 6730 SOYABEANS 5,000 min, in warehouse. 10.60-10.85. range and closed virtually unchanged. bu May 67.80 — — 07.45 crtnts/40-R] bushel BY IVO DAWNAY IN BRUSSELS LEAD Apart from very limited scale-down MERCURY: European free consumer offtake, physical* were 60,000 lb. OMItS/ta also COTTON Closa High market, min. 99.99 per cent THE FIRST in what is expected a certain fixed tonnage. some irritation and concern dull with producers continuing to stay ¥ > I Unofficial -f- or Closv High Low Prav Jan 52S.0 52S.4 &20.4 to be a flood of measures Furthermore, withdrawn, reports Gill and Duff us. 244- new . per flask, in warehouse, the Commission from its competitors, not least [doaefp-fn.j — H>9hliow March 81.73 62.08 81.65 62.15 March S35.4 536.0 525.4 530 2 254. to speed tbe disposal of emphasised yesterday that f i: per tonne EEC the Australia, Argentina and j Yesterdsys May 61.80 62.05 81.75 62.17 May 548.6 547.4 5373 HU food surpluses was announced new incentives are intended 1 July 58.51 60.06 5931 60.28 July 5863 5663 647.0 562.4 to Canada. Cash )207.6-8Jn +0.5 [867.6(297 Close + or .1 MOLYBDENUM: European Oct 60.10 50.40 49.90 50.67 Auguat »Z3 553.0 646.0 5603 367.6-8 +0,88 27Q.B67.S COCOA — I Done by the European Commission encourage sales in all world Farm Ministers of the EEC 3 month* 1 ! free market, drummed molybdic £ per tonne " Dec 48.60 48.7Z 48.50 48.72 Sept 530.0 532.0 527.0 631.0 yesterday the cuts markets, 1 oxide, $ per pound Mo, In ware- — in form of not Just Eastern are expected to approve a new March 43.1S — 4333 New 525.2 526.0 520.0 SXK2 Official closing (am): Cash 2S7-8 49.40 Jen beef prices available to Europe. deal this month allowing March 1717-X718 1+8.0 1 1721-1705 May 49.88 538-0 536.0 530.4 637.4 house, Z55-2.63. an (2S7-J5). three months 267-6 (267- S). May 1724 1729 +2.9 , 1729-1710 March 546.4 S4M 540,0 548.4 traders. increase in the quota of so- settlement 258 (257.25). fins) Kerb CRUDE OIL (LIGHT) 42300 US galloiM. SELENIUM: European free The new prices available to July .... 1744-17491+2.0 174S-17W called Hilton or high quality close: 267-67,5. Sept 1769-17681 + 3.0 1788-1764 market, min. 99.5 per cent The move, which involves the trade reduce the cost of tonnes. US spot: $ beef to be allowed into the Turnover. 8.300 Dec. 1778-1779 +4.9 1778-1768 Latest High Low Pr*v reductions of 17 per cent for forequarters from the 18,5-20 cents per pound. March—... 17941798 1794-1790 Close per pound, in warehouse, 6.85- Era 1,390 Community thi '+4.0 Feb 2439 2630 *430. 25.08 High Low Prev forequarters and 14.6 per cent market s year. May. 18041818* *1.5 Jan 150.8 7.05. established last year to Consequently, March 23.58 2336 23.SO 23.72 1S1.0 148.8 160.1 any protests over April 2235 •23.17 22.79 March- 1533 1533 1S1.1 152.7 for hindquarters, is aimed at Ecu 1,150. Hindquarters will be NICKEL Sales: 2,676 (1,4ffn lots of 10 tonnes. 22.99 TUNGSTEN European its plans for y May 22.47 22.75 May 166.1 1663 153.0 164.9 ORE: 730,000' marketing lower ICCO indicator prices cents 2237 22.64 substantially cutting tbe offered at Ecu 2,050 compared (US per July 157.1 June .22.30 22.18. 22.43 . 1573 155.0 167.1 free market, standard min. grade beef worldwide i Unofficial -4- or , pound). Daily price January 22.5P- beef may be for 14: - tonnes of now in Commu- to Ecu 2,400 previously. • — 'HigtUlow July 22.13 2230- 22.00- 22.2S Auguat 1673 167.0 166.5 167.1 65 per cent S per tonne unit muffled. icioeetp.mj 105.40 (105.26): five-day average for ' 22.18 -2130 Sept 152.0 1523 1S0.S nity stores. £ per tonne January 15; 105.73 Aug 2130 22.08 163.0 (108.88). • • WO, cif, 5462. Commission officials claimed Nevertheless, tbe Commis- Sept • 21.77 22.10 *1.75 2131 Oct 1473 .147.5 148.6 147.8 Measures last autumn suc- 2825-49 I -10 12860,' Dec emphatically yesterday that the sion's avowed plan for a radical Cash 1 7m Oct 2137 2-30 2-35 21.74 1483 143.0 WA 140.5 VANADIUM: European free —7.6 2920.12900 COFFEE ceeded in provoking sales of 3 months 8900-20 , Nov 2130 21.70 21.40 2138 Jan 1483 1483 1473 1484 market min. per cent moves fully conformed to the reform of the beef regime in 98 VO, about 215,000 tonnes to Eastern The market, continued to trade — mo EEC’s obligations under tbe 1986 and Official closing (am): Cash 2835-45 GOLD 100 troy OA 5/trOjr u other sources. $ per pound VO, the disposal of its erratrcelly. Commission house sailing Europe and the Soviet Union. (2855-95). three months 2905-15 (2545- General Agreement on Tariffs 730,000 tonne stock could have pushed levels lower on die opening. CJoee ffigh Low Prav SOYABEAN OIL 80800 lb. centa/lb cif, 2JJ0-2.30. 50), settlement 2846 (2865), Final Kerb The new prices will be available and Trade (Gatt). But the The selling was met by trade buying Jan 339.7 3403 3403 340.0 new a major impact on a world claae: 2910-20. cross High URANIUM: Nuexco exchange to all traders, will and small stop-loss orders pushed Feb 3413 3443 3403 341.5 Low Prav and not be impetus in the Community’s market of under Turnover: 1.092 tonnes. the 2.3m tonnes 3423 3443 344 JZ 3433 Jan 20.05 20.10 19-65 18.78 value, per pound UO, 17.00. restricted to martlet up to the highs. Prices fell ¥ consignments over beef export drive may provoke where demand April 3443 3483 343.8 March 20.37 20.46 19.86 20.06 remains poor. back end remained around £2.600 basis 346.4 , May 20.78 March with a lack ot any fresh news, 3463 3613 348.3 349.6 20.86 2D-25 20.4ft ZINC 21-05 reports Orexei Burnham Lambert. Aug 363.1 3663 3632 3538 July 21.15 20.56 20.73 Dec 362.1 364.1 3613 3628 Auguat 21-02 21.16 20.62 20.75 Unofficial or • |Yesterd/i High + COFFEE + or 1 Business Feb 3663 3863 368.3 367.6 Smpt 20.80 20.90 20.66 20.63 sJo*e(p.mJ — iHlghflow dose Done 20.75 20-60 | 3788 Oet 2080 20.60 grade [ June 3783 3788 3788 2 per tonne i Aug 3823 3823 3813 3*2.0 Doc 20:72 20.75 20.46 20.00 Jan 20.73 444-5 0.5 Oet 3863 387.1 3858 387.1 _ 20.65 Cash Jan 8640-60 —30.01 Silver 5 months 468.5-9 1+2.9 ^6*456 9580-490 goes down market March--—- 8610-18 —6.0 2M0B4O WHEAT 5,000 bu min, US gallons Office! closing (im): Cash 447-8 (440- M^/— 2686-90 -4.6 8795-640 -eonfe/BO-tb bushel July^— .- ... 876084 —10.6 2868 730 BY 5). three months 459-80 (4S3-.6). settle- Latest High Low Prav STEFAN WAGSTYL Sept. 8838-46 —4.0 8906-810 Class High ment 448 (440-.5). Final Kerb close-. Feb 67,70 70.40 87.70 68.63 Low Prav Nov.. 8906-18 +4.0 2950-890 March 324.4 327.0 318.0 325.0 DECLINE of silver prices 454.5-5. March 65.40 68.00 66.40 6785 THE But the price rise drove pensate for poor base metal Jan 8980-60 -38.H 2980-976 299-0 plies are still running ahead of Turnover: 7.500 tonnes. US Prime April 82.80 6440 62.40 63.74 May 302.0 296.6 289.6 over the last two years has called silver consumers in photo- prices. in July 270-6 275.2 2888 Z73.4 Only the US is silver consumption at an estimate! Western: 39-35.75 cents per pound. Seles: 8,453 (13.694) lots of 5 tonnes. May 80.70 61 .86 00.20 80-97 into question its status as graphy, —*— — —* ----- Sept 270-2 ZKA 280.2 273.0 * jewellery and other in- output expected to fall— rate of ICO indicator prices (US cents per June 80.00 60 JO 5925 59.80 70m ounces a year. As Dec 281.6 284.4 200.0 284.4 precious metal. dustries to cut silver consump- slightly pound) for January 13: Comp daily 1979 July 6080 60.18 59 J20 69.00 though —as a result of Mr Demler says, investors will GOLD Watching the 209.12 (227.05); 15-day average 212.13 Auguat 60.40 60. GO 5980 59.75 SPOT PRICES—Chicago loon lard price fall to tion. As a result even after the cutbacks by hard-pressed clearly need attractive prices to Gold (ell Ka an ounce from Monday's (210.34). Sept 60 JO 6081 60.51 6080 16-00 (same) cants per pound. Handy under S6 and under £4 an ounce end of tbe recession of tbe early copper mining companies. buy these stocks. close in the London bullion marital Oct 82.01 — — 6080 and Harman silver bullion 801.6 (903.0) —its lowest levels since 1982 1980s, silver consumption has llniah 5340-340*2. The Nov 62.01 — — 60.90 cents per trey ounce. However. _ if tbe supply of The trouble Is that silver has yesterday to at FREIGHT FUTURES some traders wondered whether only recovered to about per metal opened at 5333-3384 which 75 new silver Continues to grow lost its attraction as a store of With no new developments tbe proved to be me day’s low and touched on silver was losing its traditional cent of its peak in the early unabated, at least' 'Supplies of wealth physical freight futures were for many investors, to high ©1 5342-342*1. Alter touching its market, link with gold. Broker quiet. Some short-covering during the Shearson 1970s — or 375m ounces in the recycled metal have fallen -in^ the point at which its status best level since August lest year, POTATOES OIL afternoon saw values rise slightly, Lehman Brothers, among others, western world. Consumption response to the decline in as a precious is demand lor gold faltered as the dollar metal no longer reports Clarkson Wolff. The Baltic - Values drifted 30*60p lower during The decline suggested that recovered (rom early low*. In addition e in prices was halted silver was no taken for granted. Freight index 0.5. thin morning as the the mewl was meeting some resistance wee 217, down market awaited briefly by Nymex opening only Sc dawn longer reacting further atari like gold to * PMB erica. The initial for February but by 1.30 EST WTI In a round current levels with dealers un- ' ~ Prav. review of the silver I erode iHffiitfLowr reaction to the general monetary and political willing to eey whether gold would consumption figures was Price* began to slip end Nymex traded industry published in Novem- confused but keen buying, from one around Ite below conditions, but was instead break out and move higher or fall beck 904/910 905/905 804/805 Monday's close. In ber Shearson broker especially, lilted April values the petroleum products responding g*"SILVER pointed out that on leek ol Impetus. April 960/961 900/960 967/969 marker prices to supply and — late in the day, reports Coley end reacted nervously, continuing their fr LONOOKI BULLION the ratio between the gold July 888/840 832/839 tall demand in the silver industry GOLD BULLION (fine ounce) Jen. 24 Oet. B16/BS5 92S/B85 812/890 Harper. across the banal on poor buying PRICE and sliver price j —traditionally Jan. 020(945 926(930 BB8,fiJM6 interest end good availability and behaving like a base metal. per trey Close »340-M0ig 1*836*256 esterday*ar Previous — £ owes between 30 — - 1006/1020 iBudness Petroleum and 40 to 1 bas 8538-3381* (£9541e-23Bj April 1000(1010 Argue, London. However, last Opening July 840/890 840/880 Month r dose dose done week’s jump in slipped to more than 50. This M’nl'gtflX. *338.80 (£235.87Bi the silver Oat. 970/990 — 970.894 £ per tonne price to a peak of traditional measure of silver’s Alfn'n fix 8341.00 (£257.136) $6.28 GOLD SPOT PRICES on the New York spot precious metal status “could Turnover: 36 (138). Feb. 80.80 I 60.30 LONDON PRICE COLD AMP PIATIHDM COINS Apr . 9930 08.00 M.eD-WUW market showed there was still eventually have j Spar fine ounce no meaning at May. 106.00 , 108.30 10S.M-MJW some sparkle in all.” Kfg'rind S340V341U «a«36^ 237) the market. GRAINS Nov- 76.80 76.00 Latest Significantly, .h Krug. 9180U-1805* v£12au-l£5tu the rise was Jd But other traders say that Krug. f82-92la >£64-64>4> Old crop wheat again rose steadily, U CRUDE OIL—FOB (8 per barren— F« b. direct response to a leap in although silver prices have I/IB Krug. *37V38U t£26i<-26i< reaching new contract highs on lack of Seles: 795 (768) Ion of 40 tonnes. fal- Arab Light 27.00 27.10 -0.80 the gold price. Nevertheless, len further than Mapleleaf *&40tx-841 i4hi36is-az selling. Good merchant and shipper gold in the Arab Heavy . 26 MS ».lft - Angel 5348-361 (£2421* 243) 1 0.20 buying wes noted with Hght profit- Dubai few traders expect silver to go 1980s, the same basic factors 1/10 Angel 834-89 1223*3-27) 23.70-23.80 1.80 caking trimming gains 20p towards SOYABEAN MEAL Brent Blend B&2*.8S.SS I —0.4ft much higher, and many believe have influenced both. They NawSov. 481V82I4 (£56^-674) dose. Barley wee again quiet with W.T4. Ilpm ; It New So* *48** 46 >4 1435*1-34141 Price* remained under pressure from cat) Z5.T5-S5J0 —0.39 it will struggle argue that values ramaming in a narrow range iHlgyrisj to stay above tbe decline in infla- Old Sov, *90 8113 (£62>S-83lgl mixed Belling. Trade buying at the foraedoe 3*jn-SS.» nm around unchanged levels. New crops Urals [off ‘ S6 an ounce this year. tion rates this decade has *20 Eajle *440-480 (£30GA. 33JUa) lows consolidated values, reports G. NME) — Mr Fred driven were a little steadier, reports Muirpeca. T. Demler, metals economist with investors away from precious NOblePMt8368>g 372 1* [£256-2081*) Roddick. PRODUCTS—North West Europe Drexel Burnham Lambert, 1979 *80 TS1 *82 metals towards income-earning WHEAT BARLEY the Yesterday Bualnes Prompt delivery cif <1 per tonne) New York financial bouse, says: assets. In particular high real SILVER lYesteKfysl + onYestordyaj + or close | Done Premium BssoilneJ 838-986 Mnth elese a lose j -8.5 “Sure, silver might go up if interests have made govern- SasOO; — has increased in 5ilvar was fixed 4.65p an ouitea t .77} 207-200 —5 you work in only Japan, .prices... The amount of scrap ment bonds a safe Heevyfuei"rti"!‘!Z"J geological tune.” and lucrative lower for spot delivery in the London I 128-150 —2 the Iper tonne where electronics industry silver, old coins, and' jewellery alternative. bullion market yesterday at 418p. US Jan — 114.00 + 0.201 112.60 Naphtha. 7] 904-306 It is a far cry from 1980 when * " * 1S8J 1MJ — 0.761 134.5 j — has been a good customer“ for from India cent equivalents of the fixing levels 116.90 + 0JJ6 116.20 baying by the Texan oil billion- (where there are Mar— IfiJJS-HU — l.BSjl3S.7-1SU PMralanm Argus eat/ mats* Hr Jeff Christian, commodi- were: spot 800.66c. down 5.06c; three- May-! 1.20.00 +.O.R 117.60 1*1.0-151.4 stiver. still huge stocks in private aires Mr Nelson Bunker Hunt ties analyst at the J. Aron/ month 612c, down 5.1c; sfx-monHi July. JB2.3S +OJ6 - 128 .6 IS8.0 —X-TDf — _ ( However, hands) slumped 89.78 — 08.40 + 0.85 and his brother Herbert drove just as demand by perhaps 50 Goldman Sachs investment 623.85c. down 5.06c: and 12-month Sept. IM.5-ISM 1.7*1 per cent in 1984 649.25c, down 4.15c. The metal opened Nov- 103.00 +O.10I 102.66 + 0.05 128.6- 180.9 8.50] GAS OIL FUTURES the silver price to an all-time declined, so supplies of silver to under 100m house in u New York, says: The BI 416417p (588.600c) end closed 1E0.0-1SM — ljun — began to grow. The rise in ounces, their lowest level Business done—Wheat: Jen 114.00- high of over £20 an ounce. trouble for silver is that infla- 416-41 8p (flOO-fiCCc). sliver prices since 1971. In the west and 3.85. Mar 117.00-6.80, May 120.20-19.75, Sata; 441 (174) kits of 20 tonnes. Bualnes Last October, the Hunts encouraged mining in tion is low. What it needs is July 12250-2.10. Sspt 99.75. Nov Month ran*-- Done announced that they comPani« to expand output at India, people have stopped sell- had sold a pick-up ip inflation.'* SILVER Bullion + or} I_M.IL. 103.00-2-90. Salas; *79 low of 100 a rale whieh shows little “• «M silver they put on 115.25- SUGAR *U4L 1 about 90 per cent the sign per Fixing — 1 P-nr. tonnes. Belay: Jan 11ZS0, Mar of 59m oz “J6 Other analysts 'per tonnej the market when prices argue that troy Pries Unoffie’l 5.2). May 117.80-7.50, Sane end Nov un- LONDON DAILY PRICE „ . | silver stockpile slowing down. Latin Ameri- were | —Raw sugar they built up there will iota — « 208.60 tugh; conversely always be some traded. Sales: 34 ol 100 tonne*. *121.00 (H84.CJ0) dawn *6.50 2* 02JM «•» countries opened up new those who xn- (down Msr— ~ ..I 180.00 in their failed attempt to corner Scot 418,00p -4.86' 415.5p LONDON GRAINS et: US dark .—9.78 204 fin nn vested in stiver investors who want to hold Wh (G4.50) e tonne lor January-February the market The olofis an d have kept increasing coins and ingots 8 months 430,B0p -4.7fl' **Z8JSp northern spring 1 per cent Feb news that this silver, No 15 delivery. White sugar *162.00. down mcluding even in preference to- 6 months ‘444.00p -4.4S; - x—H laabi^issM °“tput 1970s* many .. . 138-75, 138 sellers transhipment huge hoard had been sold lifted in the 1980s in order • M#r *4.00. -"ul” 1 U manthtl470.30p -*». ~ Mat CMSL US Ho 2 soft red winter The prices briefly; but within days 10 earn foreign exchange to ser- JJS investora, have tried to keep J® A* market remained under pressure their JJ**?ItS PrtCC flafi in theJ*** F*b 125-25. Mar 125JS0, Jun .106 from March long liquidation, Aug ellear slippedclirvnori hoolr r/iwb. U ..... viceVtf» mountingHUMlntinfr intPi-n.Mnnal holdings until pricesnnffl past been LME—Turnover: 37 (13) lots of raperts ——.—I 188.50 1—3,28, lfi£.oa.BB>a silver back, since it was international sellers. EC French Jan 138 ' seller. Czamikow. sap improve. more volatile than that of gold. 10.000 oz. C. D 184.00 —sIbS _ clear that the metal bad debts. Mexico, the world’s Cash English feed fab Jen 116.00. Feb passed So it would high/low 415p: three month* be more likely to eellera. Mar 1 1940/U0.0O. April/ into the bands of other in- Largest producer, has increased Overall, there has been final kari> 42B-29p. 118.50 Tumover: a respond quickly to any radical Jun 123 00/123. SO buyer/eeller. Sept 4,542 lota ol 100 tonnes. vestors, largely in the US, and production by 85 per cent since dramatic tumronnd Jan/Feb/Mar in the shift in sentiment about the 102- GO. Oct/Dee 107, so was still on the market. the mid-1970s to an estimated balance between supply MEAT 112.60 tetters. Mein; US No 3 yoHow/ CRUDE OIL FUTURES— and outlook for precious metals. Indu, Brent Bland ounces French transhipment east coast Jan : barret. (Close, The Hunts' sale has left the 70m last year. In Peru, demand. According to Drexel Fresh buying interest gushed value* change. However, if Shearson is right 142. Bfefey: English lead tab Jan market free to which higher despite concentrate on has overtaken Canada Burnham Lambert an average unchanged physical sellers, Mer 118.25/ and silver behaves in future 118.50. Feb 11750 5*^ —0,63, 2a.25- Mar prices, repo ns Eastern Capita l-CCST. 142. 4-142. B; 144J-1SG.6 the longer-term outlook for and the US to become the west* shortfall in supplies of both new 119.00 buyer/tsllora, April/June 122.00 Apr 21,50-21.80. more like a base metal, then 148J-143.4^ I47J-147.? . -O.K^ prices, era Mffare. Rest unquoted. 14fiJ-14I.fi May ao.M.60: silver and the stark con- world's second biggest pro- and scrap silver of about 12m nrestsrdoy'aj Previous) Business 14fi.fi IMA 1G3.IMS3.4: Jun 20.00- the outlook for prices Is grim. el ex-form spot 1MjB.lB2.fi f1.g21.56: Marrtn l olose HGCA—location trast between ever-increasing ducer, output has risen ounces a year in the 1 gloss 1 done 158.8- 1543 IU.0-IU.4' by 37 1970s real prices. Food bsriey: 9. East 112,00. 15WU&L2 In terms the price of 33 <41 > o( 1.000 mine production and very per cent over the last years turned into a huge excess of p. per kilo (deadweight) Midi N. WNI 110.00. The J I fcJSP"" Jb 10 silver is still well above its level W. 111.7a monetary coefficient tar the week modest growth in silver con- to 56m ounces in 1985. 115m ounces a year for 1980-84, 100.SQ 100.20 1D0.JU- 1 1 UK of the early Feb—-| M. 1970s—whereas beginning Monday. January 20 (besed Seise: 1.9!» (1.778) lets of 50 tonnes. sumption. In Canada, where silver Is which has been added to the April —i 101 30 101.60 base metal prices are generally June— 89.00 98.90 B9 .W~ an HGCA calculations using hue days' Tata 8 Lyle delivery price for Throughout the 1970s, silver produced largely as a by- world’s stocks. Aug exchange ntas) Is expected to remain granulated basis sugar was far lower. In 1985 price terms, j 97.70 97.60 97.7987.Bfi £185.50 RUBBER prices rose, partly response unchanged. (£181.04) s tonne for export. in product in copper, zinc gnVf lead Tbe biggest buyers were priv- Oat 104.10 103.90 1M.M copper averaged 158 cents a Now.. J 104.70 104.60 International 9bgnr Agreement PHYSICALS to increasing growth in inflation mines, production fell in the ate investors, —(US —The.... London market among them of pound in 1970, and 54 last year. canto per pound tap and otovred '•ObUy in western countries, partly early 19S0s Sales: JUTE Pf*"* steadier. MtneMdmrad and as the mining com- 64 (51) late of SO carcases, u ,‘ n course the Hunts, who together Silver was 84.37 an Caribbean ports.) Pricen for Januery b > a Interest throughout ounce in kg. , Hia because consumption 2.250 JUT!—Raw. Jep/Fab e and I Dundee 0(1 d.VZ fell short panies cut back their operations accumulated some 500m 12: Dally price 4.73 <4J»): IMay ounces. 1970, and $6.15 an oanCe in MEAT COMMISSION—Average fat- BTC *480. 8WC *470. BTD $426, 8WO i™** Of the supply of silver from to save costs. But more recently mrarage 4.85 (4,87). Some, like the Hunts, have sold. 19S5. At the very least, it is stock prices at representative markets. $435: c end I Antwerp BTC S440, BWC WSltS mines, leaving governments and the companies QB—Cattle 9E.S4p per (-0.34). 5*50. *400. *410. Products: PARIS—(FFr per tonne): Mar have increased kg | w BTD BWD 1239/ ^ The balance between supply and worth seeing last mSL\ maren bi5?SSH!L ' ~ week's silver 1241. 57-600b/.50o f5fl(5e.OOn\001 +1,^ SB—•ShMp 193 kg « t f Dundee ex-Indian Jan/Fab May 1288/1266. Aug 1320/1330, investors selling silver to make silver output, to about 40m .©p Mr 3 dew c end Kw>l* 1-umpurLumn,^nl,)Ur f0 demand has improved in tbe price movements In thi* uncom- Oct 1361/1371. Dae " ** (Malaysia/ shortfall. (+0.13). GB—Pigs 73.11 p per kg lw shipment 40 in 10 02 £15.28. 40 in oz 1388/1400. M ar Si'noBn^8 B , up the ounces a year, in n k fl order to corn- last two years, but silver sup- fortable context. —2.31). £12-53: twills £42.79. 1450/1481. 8 SS No i waa { B ?82 (180.5)f«ffi™ !end?lfor SMR 20 IJi (289.5).(289 51 1 * — —— ; 1 ))) . .. m a 1 Financial Times Wednesday January 15 1986 CURRENCIES, MONEY and CAPITAL MARKETS Trade futures I FOREIGN EXCHANGES LONDON US TREASURY BONDS nmnd-tnm I FINANCIAL 8% 5100.000 32nda of TOOK commission dose High Low Prev m 20-YEAR «% NOTIONAL GILT March sane 32JD 8240 92.lt Tfow youcaa trade fatutm cootracts with Aoterica'a largeat futaws I £50,000 FUTURES Steel* of 100% June 81 JB 81.14 8144 91.07 dneotmt firm Itar only S18 round-mmoomawaalop. This low tare swat Pound Mob Eat. Volume — (—1 retreats from Um Pin Previous toy's open int. — (3477) «SSaSteteK4%Av AmUratikai Ires been made to toe Conacfl of Hib Stock Exchange tor the Debentoree, jaaoed mk 100 per cent, to be Bank moves to calm nerves admitted to Um Official list. Interest on the Debenture* wfll be peyablB Manually o» February U begfamiiigFtbnny 1987* The Debcaitiirai will not Discount bouses buying rates Credit conditions in toe market miia Twatnring in official Interest rates were very vola- be redeemable iHior to maturity. closed were fiat yesterday, but the Bank Qe in nervous trading on the for three-month bank bills hands, repayment of late assist- English bought a total of TTntailn nf thai Tlrbrnitwire, fa thn foral nf an Urtnl mrd| irm nraflaMn hi thr TTrffil fltirtintiral FTi ni l i mu! ro lra m a 1m .ondon money market y ester- unchanged at 12*>13I per cent. of ance and a take-up of Treasury p y £L0B2bn bills In all four dealing obtained daring naGalboBi hcira iro tendIndpgngjGnmy 17,1966from the CompanyAanoBBkMBMBtiOfficeoC lay, and in spite of moves by Earlier in toe day the Bank of bills drained £132m, with bank — rates, for dealers England said a further increase bauds, at unchanged TbeStodcRxcnangt and cp to and Indttdiiig January a, 1986 from;-- he Bank of England in equal amounts of balances below target absorbing autoori- in bank base rates was inappro- settlement rare sceptical that the Friday. £125m. These were roughly off- R.Nfvis 32 Financial Times Wednesday January 15 1986 BRITISH FUNDS AMERICANS—Cant. INDUSTRIALS—Continued new Men I - I **t m* u. tot I r MiUj?! tKpm Year*) SERVICE Five SHARE urn Plant 5p “Siorts" (Lives up to LONDON utam U5 Pmarl >1 :er, J6%c — fed- life TffciflDttBtm... B5 , . W,Coft»4- suw- BUILDIN6, TIMBER, ROADS—Cent. aaef«n«iFM20-J £32 3* 19»___- law. 294CPC 25c , Africa* FI* 82 MPas 1966 lA%CSXCoroUS5XOQ J 32 tag. 7fep. was 12* 198X— Stack 23 bqfeNMbe-.^ llSbtfedlneSXCa ZO jJewtaelAXHHfe 3 HlMa., Bb 25Mf«5»i30c_ 50 jcnaMRty.Aa»J AMpelOp 24 1 ""SPS2* 23WCairfpilhrTrac«W . _ 50 87%j 151, Pnaear Trim life. J 70 IS27p towwC«.25c.J Til 1-2 -1-1- tBHfc: 3ftpusmniKaM^J 14 AsMey Ind. — 1 kmc-Br Cng.Ui.,. 'rtHl&WKb'B? — ZJWteteeal New Yertc_ 3 Oe BpcOmCaMN^ 685- 2V8HB7 Z2 WtaagMWtSL. WO 180 taeeBntPtotS h7 aoi*iw7 24Wti|jlerJ6% ZTOMconH .. ?P*ORS_ » fAftoc. EBMBrSp H)5 10*1987. Z— 9? 4101a 303 tewHmStwK 590 _J >% loytws CrtyFedFw Carp. 2987 > I 92% Common 10*>* 1999— 27% SnUitlV— QUc 13 1 [ReSand C£ WrrrasJ I umriHi.lAie2000._-ZJ UV 5*K8.F3S1— IRekemMM QX5c 28 Over Fifteen Yean 52% SanPmcsiemBfASl J TOP 32*j Awry S080_I 10.76) 1097 Cor* 165 13 96%) 94%)Tmn 10* 2001 1 14**9001 lira 32i;5aBCo.l*.Sl. >. Da8%RO»Pia SVte 120% 115% Trent 1X5* Da8*C«P(Cl. 2001 1089) 1095 52%nWltac.Sl%. BS 98% 90% CamfrwM 9%* 3Z Oapr 1L30 S%r«aw»S5 ^pe* Faber toerobtos — *5* 2* Mai 114% J02 Edil^WC. ZJ 108 Da89*Cn»CvP»_j toMttn 10*2002. 10.92 |145 On. KpeUtStt. 91-5 J 251 p*ftwto Brit*. &4% 101 V 92% 19WTexacaS685 20 >lKMm20p.. <«*J 94% rrM»9%*2002 1089 &KU1I IWnil_ . dXQ23 as 15»3rn*l*.Sl_ 4«JEe*.S6e«tel 128 114% Trent 13%* 2000-03 1X30 " &rniU510p -5033*1- 11 Cmrevayled. 113*4 101% Tie*. 11%* 2001-04. 1185 SOp — iSX 65 OtanfelMPlLUfe-J 101W 94% Trent l(fec2004 1085 FTayHooes 1 lB%frran5wof« Cent 15-4 165 3teKtDte2p. 53% 46% FuAag 3*j* *9904 OSS 930 Tajrlor Woodraw. =1 29UU4Iqb 8 Kteadcal MttPnih _I 97% 89% Eome>«n9>dc2Q04._J 1084 CaMe SI ——-4 as irtounGn* llfvt T«± 123 95% 91% [MMni«9%*2aa5. 1079 26 3ft -% Trim 8 Arnold _ POMLfeMH^J 17%WUS Steel SI— 200 feriteetlM-lOp _i 108% 94% ExdLlftpc 2005 10.77 9 rraMHoidamlOp-i SIVIfSIjIlfSWMS 73 122% 111% taw. 2003-06. 1099 TarriH Carp- aarterCtemem) 1ft* 3UjVWodw«r*S3ij. 80 85% 19 Treat8*2002 IUIW.&HJ 9i . HmmHM*. 25 BWSI I tmhRppa.. .. _ 47 “Recent Issuer' and “Right*” Page 38 (International Edition Page 34) ms ttnkx n anUfa ta mn Caonoy dead h m stick Esters flit Untted Onte fn a In at SXn nr HM far neb ncoritar. a P 1 A . 1 — 1 l S3IM1J 15 1986 34 financial Times Wednesday January LONDON STOCK EXCHANGE 4- MARKET REPORT RECENT ISSUES Account Dealing Dates encountered further persistent EQUITIES Option small selling and dipped 5 to •First Bedara- Last Account a 1985-86 low of- I90p. Secondary Dealings titans Dealings Day New interest rate scare makes Issues were generally a shade Dec 23 Jan 9 Jan 10 Jan 20 easier1 where changed bat the Jan 13 Jan 23 Jan 24 Feb 3 Irish exploration stocks -attrac- Jan 27 Feb 6 Feb 7 Feb 17 ted renewed speculative demand * ” a may oka Nsw dre " (toolings on talk of an oil- find in the place from 0.30 am two bus Imran days Celtic Sea by Atlantic Re- for turbulent , •triter. day in markets sources. The latter; Further punhtenent a strong heavy market late on tlal receded 12 to 773p and gar Boose ended similarly Mooday, held was inflicted on an interest rate- at 32p. Aran Pearl lost to £12}. at Energy hardened sensitive stock market yesterday i cheaper 318p. Elsewhere, .JflB./W; 2JZ 7.BI 8.3 2 to 29p and Oliver Prospecting . Apart from Midland, which FINANCIAL TIMES STOCK INDICES news of Mtllmiae's UOQ.T 9.6j l.rf as commercial money market cash offer | -~— ,18 -t 6.4 3 to 2Sp while ,-2 GrU>ti 6p— Tuskar Be* - llJ3 iri.fl- Aft 5J 8.7 rates continued to race ahead, fceW the overnight level of 420p, worth 87p per share left Gomme iff Dial one...-- sources advanced 1L. 60 bfi.l 2.6' 5.0 7 to 28p. *Granyte Surfeoo1 H.B Other factors, including Mon- clearing banks drifted lower for Holdings 24 higher at S3p. 6B1b , Jan. Jan. Jan. Jan. Jan, Jan. year HntL Bus. Cemira 10( of support. Barclays lost Manchester Strip Canal 78 -* day's good news about UK In- want 14 13 10 8 e 7 ago were ilntUnv. Trt. J’ny 7 at 443p as did ^Wds, at 463p, also outstanding at 563p, up 61, Golds .up again dustry’js raw material costs and I t»3.S; 9.7. 1.9 68.9 iK.PdIS/1 (270 {170 f*J S PaWTOWgyJOp - lWV . aad NatWest, at 676p. -Else- after 5S8p, on the aimounce- South African -Golds extended \+s Wall Streets late overnight Government 80.61 80.85 81.40 81. 10 81 J». 81.78, 79.87 (f.P.'IO)I JlSB Ills kaacquesVsri 10p~'L21 -.hsBA !LB-flJiiiA 8*ca_: meat their IU03.4I 3.9 where. Wagon Finance at I33p, that Highams had in- recent good performance. |FJ»4 7/2 196 110 Lexicon I no. 60.01 ^..;2l9 9.0,11.? recovery, were overshadowed by ' 88.70 Fixed Interest ' 87.42 87.67; 87JJ& 88.18! 83.90 . 4.3; Z9 VLZ met with profit-taking and lost 87.60 creased its Ordinary and Pre- Share prices opened' on a mixed f.puSWl 1x27 <132 Merlvale Moore a M.6 the threat of dearer money. 6 &®a.e S.S; Ordinary w 1084.3 1108.8 U19J& 1108.1 1193.8 1 138.8 961.8 F.P. 20/1X170 ‘186 Wfiliwart Brown-—1170 -1 2.18.6 ference Share holding in the note, unsettled by - turbulent opening deal- the rather 78 4>MonKs A Crwie 10|T 82 002,7 8,7 4,711,6 Amid 300.2’ disappointing ,88 I Odd Mines. 306.8 298.4; £80.2 286.6 277.* 460.1 company- Following confirma- showing by gold '104 rank systems Bp- 95 tqsjo, 2.4! 4,6 12.9 tags. Government securities fell 'JP.X2.-1 •mo 1 tion of the discussions in ill? .! BIJL SJS 1,9.18.9 *“*« latter Old. PfV. Yield..... — 4.52. 4At- 4.43! 4.47- 4.41, 4.37 4JS0 merger the US Overnight. However, 9/1 (119 106 SAC IfitnL tito- nearly points and the FT . 1J 1 *5 •ffSiemcx IntL 9S uo5M8£Ogi8.7 -with Ladbroke, Granada, became an Improvement in the t.pjlU/a 107 1 J 88 Earnings, YM. Stfull) 11.07 10.94 10.85) u.ia' 10.96 10.86, 1JL3S metal 1 Ordinary share index dropped .P.ilO/L ,106 97 4 TRADITIONAL eUlLDINGS <1J. pin.hm Group. Insurances ended a volatUe Provisional retail sies fof while British" Tel^i gaVe up OPTIONS NEW HIGHS AND CHEMICALS (11 Money financial Times Wednesday January 15 1988 35 WORLD STOCK MARKETS AUSTRIA GERMANY ! NORWAY I AUSTRALIA (continued) JAPAN ! Price or I ' Price or Jan 14 "*--+ ! + Prloa or , ' : >"» .Kroner — tr +*<- «-» ias +_- Jan. 14 . Yen BS ;h~Dm. — - ^,4 js .'ssrr CANADA 1 389 +1 pSSwr^ llToo + BoSwS5Sll!ZZl: ils -ki ejruPTop-TMwt Z.W — + ?So IOOO ! —IO fall • AHtanz’ vi'r*''~“'Ver* Imjo i» Martle Interim 14.400 — - £.600 +63 Christiania Bank' 175 +3 iJ»ma«— 3 »8 +OJU£ I** Cbg I tfigk Ong Chsg High Lew Chsa Cbng —400 £!!£? , 412 -4 1+ Dm Ms M toe Qom Wgh Low Ona Jungbunzlauar*. 43.600. + loo *-i 1-5 +6.4 DenNortka OrM. I79.S +0.5 M»rtnaan Energy 2.0 -OJ* KJL S 1,030 . +10 Lacndarb&nk — £,igo *®2 +* Elkao. 102 Hjraid WyTlme* HJ ! 2 1 Jo RgT V,"?r-" -k* 215 I +1 Perimooser.. *+l Nownos •« Aust 2.4 + 0.09 1070 Comterm 205 201 201 - 4 Lakllw Selkirk t 788 +8 -i S5* 179 , 613 -5 148250 3 f A 23% Bayer- Vareln • Stayr .... 668 i +-22 . Jlmbcrtnna oja Bern -3? Oaimiar 160 * B Kwanwr : 187.8 +03 F.P_ 886 —5 TORONTO 55200 Can a $18% 18% 18% + % 44200 Leigh intt » » Shell Can » 23% Veltattier Mag . 10.000 Hor»k Data -481 —1.0 JkOmCoB .0 20 1008 COWb B 1 S5% £% 3% -% 2024 LoUde 22i, 22% Sherrm 7% T% BHF-BankK'"- 547 888 ... _ Prices at 2.30pm Co ! - ~ *| Mondek Hydro 1SO.B150.6 WdatonWdeton coldGold I 5.6 -040^ 2250 Cons Gas -% 770 Lumorvc* T7i, 17% 16 16 bSK» sin , 1.390 -* 20 $25 24% Southm ' Lend LeaseLews 6.3 - +0.1 Janaary 14 Bro«n'iioi«'ri— ?S« Storebrand9 brand— 278275 +1 1,250 +10 2000 Con Glass S18% 18% *8% +% 19700 Mice 395 400 Soar Aero I 22 22% - MIPS. B.BS +Q.0C 1 — — ' 300 Bank BELGIUM/LUXEMBOURG Commerxh.^ ... 693 -4 CTL 310% 10% 10% 183300 Helen H X 14% 14% +% Slelnbg A ( 3*% 3* , 355 +9 Mayna Nickless— 1.583.38 ToJS+OJ» mS~n*SZZL 1,610 *10 404S3 AMCA hH STS'j -T5> 1000 Comm 8 37% 7% 7% 4400 Mein HY I «% '* Stelco A 23% 231, Myar ‘ 4 W4 1£» Emporium.- 3.5 988 isa» 550 Corby 318% 18% 18% 12540 MacmUan 23% 23% Sufpfro 165 165 Nat. Aust. 4.7 —0.85 —5 Aberiord 37 6% 7 3an.,4 IN Sank~ - 2600 Falcon gsr®E= flh 130 000 AHUM Pr S15V IW4 151, C C 317 16% 18% + % 9450 Magna A f 19% 19% ~ % Tara £« 16% 18% + % lb Naum f:L9.38 ss-o.oe 50405 240 — 815 +12 12M AEMande li»i '9% Coseka R 235 340 4588 Manama 1 14% +% Teck b 1 IB W, 16% .. Price ;+«r; or MdioiaiNicholas KiwikiwilT.. 2.9 +0.05 2,320 + 2B 477 —3 Anuco 2030 Crowns 23 23 Spoc 147, 147, -2 D’waJw.Babcools. Jan.jan. 14 Pta*pta* — 8800 E SZ3, 23 £3>i 323% + % 200 Out Tatra Mn 203 283 Banq. • Gen. Lux... 9,600 223 +2 •'orandaP'ciP/pd a70.7 +0.65 -2 206*38 4302 Ceowro A f 22 Maes 299 +8 Deutsche '' 758 Albru En US'* 16% 18% 322% 22 7598 Far 299 Texaco Can 29% 29% Banq. I nt. A. Lux... 9,650 Bank- B87.S +13 .-T=.-Zrzz — North BknHlIL—. 2.S2.8 .+0J6 BknHM— +0J8 154 —1 174515 5850 Czar Res 212 Intyre 40 40 I" .• • Alcan S42% 4» 42% 215 215 -S 1$ Me Thom N A 22 22 BokaarL...... 8.250 BrndnerBanki.. 468 +B.B Bao Bilbao....—. 475 +10 OakhridN +0.64 _ 4 % % —ion 11 —1 825 Algo Cent S2 20% 15302 Oaon Dev 490 475 47$ - 5 400 MercanW 8% «% Tor Dm Bk 23 23 -% Cl men t C8R. 2 650 ®HH«. — 259 Bco Central 380 +10 Pancontmenta) 178 +002 Nippon Svlnn— 644344 (*a 20% —5050 +n * Algam ?1D0 Denison A p 3141, 14% 141, 1200 Mlnrt Res 2S0 250 -1 Tor Sul) 26 25 OookerinTTr.r'. '!» Henkel 406 +1 Bco exterior 226 +8 Pioneer .1 £7 Z Nippon Yusen ... 3M -4 309 St tiff* 19*4 13% SS > 25M Denison B I Mltat +> ... 6650 Asemera S12 12 12> 313% 13% 13% 1B050 Corp TorsJar B i 33% 34% 60’ Hochtief.— ...... +.5 Bco Hlfpano ..... 184 . +10 Poseidon— .' Nissan Motor.. 872 —8 4 % 4 2 DelhaUa...... 8 660 + 77S 2.85 . 0.15 15200 - -2 5168 AJco I I SHTj 101- 10** Develoon S5 495 495 17 3900 Uotaon A 1 a% Total Pea 2<% *»% +'S EB£8 3*530 Hoeohst 291.50 +1.H Bco Popular—’ 830 +25 Queensland Coal 1 49 —0.61 Hrtatiln Hour.—+ 4W % +00 1140 24 5G8SO Okimsn A t *8% - 15200 Mol son 1M. -% Traders I 281, -% + ! “2° BC Sugar A S24 24 8% 6% . % B 19% A 28% EtoatrotMl. Hof'O'i Warka.~ 198^0 SSdttjfSSlSS’ »•“? - lO^Sls +i:S I 3.75 Zl 9050 Dicknsn - —bo Boog22SKS^«-VUCayiM..— 670£JS 7« Oiympwffi™* 901 1300 BGR A S73g 7% 7% 8 381, 8% 8*4 % 12T2 Monaco A f TiCan ft A 230 230 +4 FftbrkliiC Mats a nan oat Hoizminn CP} M.« 076 +16 +10 Rppco — - 1.S2 +Q.D2 OBIiJSobm „.T‘ SjiS Ta Hoitan— 226 +a Brasado* 172 +11 ; i'll In* Onoda Cement- 819 3437 BP Censes SXh 30% Wi 1800 Dotasco 328% 28 26% 4400 M Trusco 15 IS -% Tim kB 11 % 11 % *% ' " Orient Flnane#--. 911 1000 10502 Dome Gda 21250 Moore 26% 28% TmAta UA 287, 27 -% GBL IBruxl 2 290 in Huasal.— ..... 461 +1 HldroUU— 88^ +L6 Smith (Howard). 4 7 — — Bbmw C -HO Vl 7% 7% Orient Laaaliig 11153 Bk S% 123950 Dome tone t&t 14% 1075 Murphy 22% 22<4 TrCan General* Bank..! 4;550 —150 80 +** ,«£.* TV'S Thos. Natwtde — 2 83 ...4400 BCot S5>, Sh PL 20% 20% Kailfhof. SSI' £•*«*«* + r — +50 24156 8k Monti S32S 32% 371, 78085 Dome Pme 290 291 14705 Nal Bk Can 22% 22% -% Triton A 21% 21% -% Oevaert ... 4440 —io ——- 394.50 +6.50 ??££ i-S Tooth —— 5.5 E|2£S* ?»5?9 + §2 TBlBlort 14 13 ID I Mgk I Ism High Low AUSTRALIA Essitor -2,376 -6 Slecvler-NDO....-'Etsevfcr-NDU....-' 1BS.B186.9 -5 +4.7 m^irmlrZZZunrrterahur 5.300 +80 5^“ Tat Lae 2.20 All Ord. ill 1/801 1040.9 1961.1 1044.9 1048.9 715.3 , SS T? Bk —- IJ14.11- 1^2053 U12S3 11 15*7.71 1052.3 125110) 17/165. tal BAH 4X32 >: Zurich Ins. : 6,800 -10O Minis. 629.4 631.2 -5. foxxtFokker , 80.8, 1,1i Emm...... 008 ; 3JB -044 Metals * 11/1/90) OILS 5M.2 598.0(2981 352^/7/165. imctciS2S2*“*" ’it81 ^*-0.7Zn-r7 +L+ EHiSSsnEES' S§2 d/i/as anas GMGist BrooadM^Brocades •— «B1281 ‘ +1.3 Crcen^mil-^2.060 -50 mm 1 - L*f«rgo Coppae. 764 -i—1 tMiMkiaHelheken — 1 284.6224.5 ...... 5322 —6 AUSTRIA — Helwa Real Est— 840 -T SOUTH AFRICA aazjgr nui L'Oreal-. -80 Hoogovens 1 85 * OUI 553JS 7ZZ31 1Z3Z Credit Aitken (2,1|82) 136.74 126.5 124.36 124 JBb 1«JU14;1 68.21 , +2 AUSTRALIA Hitachi 732 I -3 Ml (34>llth Legrand 2.672 . —8 Int Mueller ! 74.B +1.B mim (B/7/371 — Hitachi Credit— 3,170 : Jan. MtuaoiM Phenix 170 Price +or KLM ——_i 57.1. +1.8 .. Honda— 1,180 —10 BELGIUM '~-.-—— — MfttraSJL ...1,680 2 Jan. 14 Aust 6. — 17234 — + KNp 133 -1J5 IfidL I I72JT 17275 Bk. Japan— 1,080 I -SO Abaraom — 2.35 —0,05 Brussels BE (Si 1/80) 278HJ6 2772.94 27B0.63 2782.64 29M2B (26/111 2990.7.11,1.06. MlcheUn -80 * B 1.690 NaarOcn 63 • +a» ' ishlkawaJlmaHr 154 ... AEAGi...... 9.3 -O* mm (7/1/36) £28/4/42) ' ANZ Group — MldUCle) 4,590 +40 Nat Nad Cert—.1 87 —0.5 • ’ Isuzu Motors-—I 343 —3 Allied Tech 56.566.3 . DENMARK Moat-Kannaaay. 2,275 —75 Ned Mid BanK—l 241 Ampol Fat.£f-~~ o'+O —-0.60 +4 ~ 438 -9 i SEtSilitSl '216.85 f-t? n'u Jtoh — , Angle Am. GcalJ 60.0 „ TnAgwt 1Mb 172b Copenhagen (m 225.91 225.11 237.79 pjlfBSl 15*44 L#;l/86. Moulinex.. 71.8 • +1.5 Nudlloyd 1 211.5 AaHton . +1 •to-Ito. YYokado0k»do *.“02.950 ' “10-10 AngleAnglo Am. Corp ., 38^89.5 + Nerd Eat. .... AwLCona.Is. ndL* age IgSt +1J) ’ 174.6.-2,5 OceGrlntan 444 , +3 * ; S'K JAJAII . ..8.350S.5SO -40—40 AngloArtcrtO Am. Gold-Gokl^ 221281 . + FRANCE Pernod Rica 36.5' 8urt.Guara —— , +1 858 Ommercn (Van). 1 ' J usoo 3,070 + 30 BarsHys Bank 80.50. Jm IP Jos YmrAgctflypre) CAC General (3/lHlh 279.2 278.6 276.3 27B.3 282.4 iflzlrMi 1B0J >3.I Hand delivery to home or office is available in Aflanta, Boston, Chicago, Dallas, Get your News early in Stuttgart Detroit, Miami, Minneapolis, Houston, Los Angeles, New York, Philadelphia, || Pittsburgh, Seattle, San Francisco, Washington, Montreal, Ottawa, Toronto, Einc Ztfitung erst mittags geliclcrt, hut fur Sic nur Rufen Sie <£e Abonnenten- Vancouver. Please call for details between 9am—6pm New Yark Time. den halbcn Wert. AbteQungan. Damit Sic Ihre Financial Times noch vor Gcschiifts- Telcfon: 069/7598-0 heginn crhalten, haben wir unscrcn Botcndicnst in a,: The Financial Times FINANCIALTIMES lhrer Stadt weiter verbossert. (Europe) Ltd. Because we live in financial times. Einzclheilcn erfahren Sic von Financial Times in -'JiLliL f *t GuiollcttstraBe 54 FT FiiWcAwm. Inc. MB Frankfurt. * 6000 Frank furt/Main 1 46 3 ‘ 11 . 1 1 1r. 1 1 1 1 1 11 7 e 1 16 1 1 1 % January!J 1985 Financial Times Wednesday '' Prices at 3pm, January 14 NEW YORK STOCK EXCHANGE COMPOSITE PRICES & Gk'v Ch-gtl 12 o>l EtatSta* Marti I l Cte*Ptr». 1 P/ Sh OnePra*. I IZMsmfa H S>t OmQua Pw.Pm. I IZMmA2 Memfe Sb Ctaafcw. 12 Mm* P/ Sx Osh I 12 ftw. 12 Mon* H f Dw FmJPm. 12JM V/ 9* On ( V I^iu \m Om,Ob» HWi law ^ sock Onr. Hqb Swt OH. W- E lam Mgb lorn Stack Ofr. tU. lOOf Ngb lam Mgb lam Sock l Sw* W. £ IQQtHtfi Uw QaataOue I l» lObMab QrawOra E DmOm ON. W. C lO&Hi# lam Out 13m High ln» Static Ow. YU. £ lOteSgi, la* ftMtCkac Hgh m | j 1 111 *« 2*3* 1.7777 228 14 14 74 ft W AAR r.5656 £1 1810 208 2737 26% 27 +1+ ftft ft B*S«WBert* % % + % i«L s, CmmwCrtWc S9 300 131 13 is,731 .++% 12 pM.«l % % ft% % . +%" A Ift % R*» 12TZ- n72 13 O13 13 ft" 41. jne^o m 1449 8% ft +% ft TO*, AOS IS 148748 32227V* 22% 22 -n- % ft21% 131*,% MB*SWhStf '!» CcrtTaMO 77.08.ob sea2 25 ay25 29 + ft % % c ^ 52 !£» If* If* ft 5 SSSw M ft% % aS»•, +y+Ja 3ft 20 RSWSb.W J n 390 MV » IB 53 53% 1 1 L Sft toUOfHZM -9 1354 5ft ft ft AMCA 2 II11 II 11 +'.+ . -ft 3636*4% BefhStp*BeftStp* 5 I3 496 30%4 2S% -% -w: 75 SSB 21211 20 207» - 2° SS* ij* -ft ° ft I 3B» aH ft% ciOauCtOaia S88 %* 20%V 29g “V-H 371* 31 P»MPl 2 73 ^33 3 ti 1 ^ &B 38J, 5 2 S* 2 :> V » % 1 31 InoR pi 8- 5 X>4 36V + % ft 33 AMR 7 5450S4J0 4QS* 40 4 4+I 20 181 B«hStpf£6ffiStpf£505< II 89 10 79 18 + *« ft 335 % ft V <®tft ; , ft% B % % % % 4®, 32 CflDl 0(4 50 T£ ztOO 35 3SV 338ft% 4 3®i FMEC . 16a .4, 13« 182 ^401 40 m - ‘777 ft , 19 InpiTec 54 S 3 27 1* 1 18% 1ft +V ft 18 AMR pi2. 188 aa9.3 1 23 2 22*8 + V -O',01, 31 8B*v*r*rty0rty 32 A 18 36 3ft 77 ??%* 1 * % n ft % % ft ft $% ft % / *£*U 24 ftft* 3ft 23V fUPtgZSS 7.4 9 479 3ft 3tP 2 pf II. +i; 3 18 BMP n 20 „ ft S3V ANR 26717 11 . 11 24 24 24 30ftV 18V B«IP 218 2 20V -% 421. Caopr 4 40 440 +, % % % % ft % 29 152 4717 1816 053653 40ft% -ft% -ftft% + « 1 125, Rasa £2 8 V4 11 18 Iff 23 19 38 BIBIpTnr7 Hr .88 91 153 - ft £ V AMR pi 2 12 10. 2 2 3 220 -%-j£ 2 2ft IS 2 1 1 • ft ft ft% ft% B ft ft ft % ^ ^ Co^Tr .TO 42£2 9 2162« «18 17ft% ift1ft 8 ft FtwGan 168 7 ft 1 ft 7 AW. 5 16 1 1 1 347 13 BTOCT n % ft ft ft , % “ g. »* 1ft Coopm.40 1.5 18 272 37 26% 3ft -% 23% 1ft FKMar .48 lft 1ft ARX 13 380 14 14 14 26% 17V BlackO 84 »% ra»a IS-% % % % ^ 15V ft CopwW 31 ft ft ft +H 20% BV Ftoor .40 M% 3 ASA a 53 38 - 1 2ft flfcKMP238 iB ft 2 539 37% 38 % S £V* Sl IS ? ^ 1ft CpwMpl£48 14. 2 1ft 1ft 1ft 59 « ft»MCZ30 37 10 MX 128 1 13 13 27 1 Stall* 1 % Z3 ft % % % ft Tl 2ft Corttinea as is 31 »% 2-v 2*, *% 59% «% &*** zao 2ft 30% AZP £73 10 8 3850 37 ft ft ? % 30% 2ft BtkHfl ,1 38 ^ 72 41% AMLoOI.40 £1 18 1201 68% 67% 68% i % 53% 38V Boetnool OB 27 19%19% ACCOMAcCOWtfM50 1.9 3020 3 2S%2S% 2SV2SV 363,26=4 51 3ft37i4 BoeeCBoeeCl.901.90 ft2«< 10 AenwCAcmeC .40.-0 £0£8 21 147 14%14% 14%14% 14%14% + %\ 61 53%52% BcmeCpfBciseCpI 5 1 7 AcmeE.AcmeE.32b32b 30 27 37^4 2W2 BoRBwBoHBer .10 .3 33 30 34 3 34 ’ 1ftft 39 13 27 ft ft ft % ft4 % ft % 11 ft Craig 13 8 9% 5% ft -% 3C% 222ft Futoo.Tq 14% 12 % MoslPn 1 - 15%15 AdaE*AdaEK 1.90a1 . 90e *132*133 161 18 53%33 31%31 BorfemlBortieml 5253 31 '3 1812 501 2632 . 7% 1ftft % »KL 18%, 17%Tft 18%% +V % % , « JO% 32 Crane 1.600 43 11 1027 38 37% Jft -% 27 2131 Rwnyr 3% ft MnsaOf ft ft % 4 18 Boiff«aS696 24 ^ 22 16It AOmMI 40 1.801.90 34 22 » 18% BQiff«a 40 12 2830 l« 6088 ft ft 2ft% Q 2233 2ft3ft 22 +% S % a% », +> TIP, 27 Oayfl J 39 -298 00% 57% 56% -V 22% iftIS PMEP iilSSa 3 2% MnuPn ft -y 1 - 1 11 + 31 30 1ftft ft AdvSyal.38AdvSysl .38 8.1 15 37 Ift 1ft1ft Ift16V - Financial Times Wednesday January 15 .1986 37 NYSE COMPOSITE PRICES AMEX COMPOSITE PRICES Prices at 3pm. January 14 Ck'ge P/ a* i; .arm Ch'g, rr si* P/ Sic ft SC PnT 12 Sack Ota 180, ^ „ n » ow P/ Sb On* 12 MM ff Sh Chat Pita. E H%b taw tea tegi Stack On E too* High Law Dm Bag, Ota E 160* Mgh Dta E 100* Mgh Uw tea Oiaga Law Suck On.'M.E IDO* High Low QuaDra Ob. 7U. E 100, Wg6 Uu OamCtet High tew Stalk Ota. TU. E TOfotfigh Ltar Oanta One AcmaPr 5 2), 2% 2% 4 f. CrCPB 8 11 10% I®, 15% 12% SJunnfl tefloM 7 18 61* R R Continued from Page 36 8% 19 20 11% 11% 11% 4 _ 7% ®, Trico 20 29 13 68 7 S. 7 Agon 65 1% r, «* + % Cruicfl 1 70 5-16 Sandr .60 AdPuol % % te«Sy S 160 1>, Ragaa .12 43 10 21 21 21 + 43% 29% 1.7 19 405 34% 341, 34%. +% 1i> 12% Trtely JO 61 555 W« 19% 19, *! .18 10 04 20% 27% 27% 4 i, CryMO 40pg S-l 5 % n. %. 6,1 % tesSysri 2S 12 Ronsbg .72 24 63 20% iff, S2* S* S™** * *3 H US? 553, 55% 55% + % 23% 21 SArmrai.M 7913 81 25 24%. 24% 35% 14% TritEnalOb .4 20 281 2®, 24% 25 +% Aeronc 114 m. 41, 4%-r u CuWc J9 12 38 23 22% 23 + 2% 2% ff; ]»»- PaPL 2-56 371, ~ % IntCtyg 60 130 117, 11 11 - Rasn A 20S 44% 43% 2fj 23% 91 10 KB 281; 28% 28% -% 25% SFeSoP 1 28 14 1789 347, 341, 34% 4®, 34 TucsEP 3 7J 10 207 41% 41 4«% 4% AfllPbc .60 23 6 5*1, 541, 5<%- % Curtice .92 10 31 27 20% 27 + % % % PaPL % teetlk .126 39 157, 15% Heart B *50 48 40 pM 50 II 2120 *1 .40 . 41 +3, a 31% 8areLoa.60 3 3 13 319 46% 47% 481, * 20 10% Till nx .48 24 M 345 u2S% 19% 19% - % AlrCal 9 191 7% d 7% 7% 1®, + % 29% teSoM 84 3 RMAsB 14 77, 25% PaPL dpr3.42 12 8 29% 29 39 41% 29% S0WM 1 48 30 16 8 38% -38% 38% 4% 2®, 16 TwteOa JO 60 14 10 18% 18 18 ArCMptl.20 115 10% 10% 1®, 4 1, D D 3% 3% 10Ou 0% DWG .061 94 1% V, 17, IntPwr 0 4% RaiAsA 12 23 S% S3, WV 02% PaPL p«640 11. 2100 7b 73 75 +1 1®, 15% SwlRE 20 I.2 43 28 16% 18% 167, 4% 50 33% TycoLb .80 1.6 IS 115 GO 49% 49% 4 AigCwt 1 0i% 0ti, 01% - 1% 4% 4% u ®«* % PaPL % Damon TOO 4% 4 4-1, IraoBrd 37 2* 4Q 39% - Rckwya JB 27 87 iff, tfl% 28% 3*i tJpr3B5 11. 8 28% 28% 28% 23% 17% S6VETP10D 73 8 27 22% 21% 22% 4% 17% 12% Tyler * .40 27 13 243 1®, IS 15 AJpftaJn 101 11% 11% 11% - 39% % T% % DmtaPd .16 20* 1®, 1®, Rouen* .12 71 165 31% 28 PaPL dprara 11 5 29% 29% 29% -% 0"-* II. 2 11% 11% 1i% Amdahl JO 21 372 14 13% 13% - % 15% J K 20% 20% sr* 100 PaPL Vfr 3i** STF U U U Debited 55 1V16 11-16 RBW 8 0% B 79% pfflj* 13 2350 99 99 99 9% Savin 59 37, 3% 3% Atanral 4 Si ®. a>, ®,4 % Jacob* 17 1 7% 7%, 1%4 M 104i, 59% 39% UAL 1 £1 2109 40% 47% 47% *% % DevTCp 1450 11 14% IK, 14i,+ 1, % Ryfeaff .80 13 40 80% PaPL nr 11 11. Z3S2D104 -104 104 + % 1®< 4% Savin pi AMZOA J2 00 12 14% 14% 14% 4 1, Jetron .711 15 62 9% 9 9 2®, 23% 23%+ § 71 18 11% UCCEL 19 38 18% 18% 10% D i . Bgggfeg^SgT?&f3e&£& 1986 38 Financial Times Wednesday January 15 FINANCIAL TIMES WORLD STOCK MARKETS WALL STREET on interest-rate prospects, edged for* which is expected to boost profitability LONDON AUSTRALIA TOKYO ward. Public Service Electric & Gas at at the grain plants. Most favoured was S31K added SK. Archer Daniel Midland, one of the larg- WORSE-THAN-EXPECTED balance-of- The technology sector continued to est com millers* which jumped $1% to payments figures for December took the Pre-holiday Uncertain give the market a firm lead on the back $27% in heavy turnover. CPC Interna- More heavy lustre off Sydney gold stocks and led the of NCR’s results and of news from the tional added $1% to $50% All Ordinaries index 22 down to 1,048.9. semiconductor association that orders Motor stocks turned a shade' easier as The All Industrials index, however, ex- response for microchips had increased last the latest industry sales statistics began punishment tended the gains of the previous session distraction month. IBM. with figures due this week, to appear. At $89% General Motors shed with a 0.1 rise to a record 1,548.9. edged up to $14916, only 6 per cent of $ft, and Ford and Chrysler showed simi- A late rally among industrial issues its peak despite last week’s shake-out lar fells. helped to prop up market sentiment saps energy to data The most active stock on the NYSE, inflicted NCR jumped $116 to $41, Honeywell against the worst ravages of the profit- Also Moana Hawaii Properties, added of feder- $116 to $74 and Digital Equipment takers. BHP was actively traded but fin- THE FIRST of the week’s batch $2 to FURTHER HEAVY punishment was in- THE PRE-HOLIDAY mood took hold in $% to $2. with a single block trade of ished 2 cents lower at AS8.94, CSR was al economic data found an uncertain re- £13716. Among the personal computer flicted on mterest-rate-sensitive stock Tokyo yesterday with most investors on 1.2m shares making its mark. steady at AS3.70 and Bell Resources sponse on Wall Street yesterday, writes makers, Apple added $ft to $23% on markets in London yesterday as com- prices finishing BAT Industries held unchanged at the sidelines and share York. results. slipped 6 cents to AS5.80. Terry Byland in New mercial money-market rates continued lower for the fourth consecutive session, $4% with the ADRs still trading briskly against the Despite news of a sizable gain in De- The flow of industrial-sector results to race ahead. MIM Holdings moved NishiioakA o/Jiji Press. off parts of writes Shigeo prices moved moved on, with International Minerals on the decision to sell the UK weaker trend in the mining sector with cember’s retail sales, bond Prices fluctuated sharply, and the FT In lacklustre trading. Sumitomo Metal group’s US retail interests. Also in the its 2-cent rise to AS2J95. CRA weakened higher while the stock market drifted and Chemical up $16 at $35 despite lower Ordinary index reflected the volatility Mining continued to attract buying' in- ADR trading area, Plessey gained $% to 12 cents to A$5.82. lower. profits. Airline stocks looked mixed as by rebounding from a low of 1,089.5 to terest while securities houses' dealer Eastern Air lines held after $2416 as it explained its resistance to the Among tumbling gold stocks. Central The 1.9 per cent jump in retail sales steady at 55 finish a net 14.5 lower at 1,094.3. sections and speculators hunted 'some takeover offer from GEC of the UK. Norseman shed 30 cents to AS7.20 and was at the high end of market predic- disclosing a loss for the fourth quarter of Amid turbulent opening dealings, gov- supermarket chains such as Daiei and Despite Federal funds at 7% per cent, 30 cents to A$9.O0. tions and reinforced the signs of eco- last year. American added 5% to 54016 ernment securities fell nearly 1* points GMK and auto parts. The Tokyo mar- Treasury-bill rates edged higher. Bond with 46- Nichii, nomic growth indicated by last week’s and United $66 to $48. on general despondency at the rise in 2EL continued to feature a public the Fed’s ket will be closed today for a more In the financial sector, prices responded firmly to cent gain to AS7.44 while related compa- employment data. But bonds took Chubb three-month interbank money of 13% holiday. market intervention, adding nearly % ny Brieriey Investments dipped 10 cents notice of a dip in federal funds rate and bounded ahead $216 to $5816 after two per cent A measure of calm was re- The Nikkei average shed 48.42 points point before gains were trimmed on lack ‘ to AS5.34. of $2.5bn customer repurchases by the brokerage houses endorsed the group’s stored when the Bank of England took to 12,928.60. Trad- retail from the previous day reinsurance agreements with Alli- of support Trading banks were mixed, with Fed. which suggested that the Reserve Sun the unusual step of signalling disappro- ing remained slow at 228m shares, com*. Westpac picking up 1 cent to AS4.59, Board remained accommodating. ance and London Insurance of the UK, val of a further increase in bank base pared with Monday’s 199m. Falls out- stock market responded favour- which significantly protects Chubb ANZ steady at AS4.68 and National Aus- The EUROPE lending rates. The ensuing rally was paced rises by 422 to 377, with 146 issues tralia 5 cents down at AS4.70. ably to the retail sales announcement, against further losses on medical mal- confined to the gilt market unchanged. but early gains were not carried practice insurance. Longs regained full point of losses, a The session had a steady start, wife . significant increase in large E. F. Hutton, the Wall Street firm through. A while shorts settled with falls ranging to HONG KONG small-lot buying centring on electricals share deals indicated some reshuffling troubled by illegal bank overdrafting Upward trek after a full-point decline. Index-linked % following the first rise in four tradkg-- institutional portfolios. problems, remained unchanged at $35% CONCERN over the financial health of of issues were also firmer, finishing the days in New York. Later, however, the At the close the Dow Jones industrial after announcing a management re- some small banking institutions unset- session just % lower. market lost steam as many investors average was down 1.49 at 1419.04. structuring. tled Hong Kong and turned the Hang resumed Among active blue chips, BAT Indus- backed off! Amay wiatnk Seng index 17.38 lower to 1.7&SL23. Bank stocks improved as analysts , the international com- tries was one of the few to finish strong, The lade of pace reflected the with-, sector results. First Chicago pany, eased $16 to after announcing Strong selling of Union Bank of Hong scanned the $14% with a 5p gain to 328p on its intention to stock market of institu- . Kong, the only publicly listed bank in drawal from the at $27% added $% on the quarterly fig- a restructuring. of its dispose part of US retail interests. tional investors, who have seen the ratio - after pause is not backed or con- ures. Chase Manhattan gained $1 to Stocks of the cereal and grain milling the colony that Chief price changes. Page 35; Details. their transactions to total trading vol- trolled by a major international bank, of $74% and J.P. Morgan $% to $64. companies were firmer on the reduction Page 34; Share information service. EUROPE looked set to resume its up- triggered a broad retreat ume expand to around 50 per cent Utility stocks, the market’s barometer in federal support prices to farmers. Pages 32-33 ward climb yesterday after Monday’s Union Bank lost 80 cents to HKS2.2Q Wall Streets overnight rally did not pause for breath. Despite some early while Bank of East Asia shed 30 cents in buoy investor enthusiasm because of un- profit-taking after investors deemed it CANADA sympathy to HKS25.30. Hang Seng was certainties over US interest rate trends. • - KEY MARKET MONITORS time to take gains while Wall Street was the active TRANSPORT issues set the pace in the 25 cents cheaper at HKS48 and Hong- Nippon Mining topped list in a bullish mood, prices in most bourses with shares traded, rising to - attempt to buoy Toronto higher. kong Bank 5 cents at HKS7.95. 7.85m Y15 rose in late trading. Canadian Pacific traded C$V6 up to Local profit-taking developed among Y403. Banks led the advance in Frankfurt C$17% while Laidlaw Class B moved property and utility stocks. Cheung Sumitomo Metal Mining was in the .. after rumours that Allianz, the insur- slipped spotlight busiest GSft higher to CS14ft. Other actives in- Kong 20 cents to HKS21.10 as and became the second ance group, was taking control of Bayer- - cluded Bell Canada, which firmed C$ft Hongkong Land weakened 5 cents to issue with 7.56m shares changing hands. ische Hypotheken und Wechsel Bank. to C$39%, and Maclean Hunter Class A, HKS6.65. China Light & Power led utili- The issue gained Y2Q at one stage but The Commerzbank index hit a record CSVt higher at C314%. ties lower with its 20-cent setback at came under profit-taking pressure later 2,106.1, up 422 from Monday and 72 Bank of Nova Scotia was actively HKS16 while Hongkong Telephone was to close at Y2.000, unchanged from the higher than the previous high of 2,008.8 traded CSft lower to C$12ft after the 10 cents off at HKS10.80. preceding day. set on January 8. i prime lending-rate rises of the previous Sumitomo attracted buying interest Allianz added DM 53 to a record DM day. Other banks were mixed. on the strength of its development of the 2,600, and Bayerische Hypo topped the SINGAPORE Metal and mineral issues consolidated Hishikari gold mine in Kagoshima pre- banking sector with a DM 42 increase to WAITING continued in gains achieved on Monday, with Alcan THE GAME a fecture, southern Japan, and rising gold DM 854 despite a denial that such a slightly weaker that trimmed C$tt firmer at CS42V6 Singapore prices. takeover is under way. i Montreal managed to extend of 222 off the Straits Times industrial some Blue chips were bought in .small lots, . i Cars were again strong, with Daimler index to the isolated gains of Monday. 634.00. supported by Wall Streets overnight adding DM 20 to DM L385, VW rising Investors are holding fire until gov- advance. Hitachi, the fourth most active . DM 8 to DM 553.50, BMW DM 4 to DM ernment intentions over rumoured cor- .. SOUTH AFRICA stock with 3.45m shares, added an early 639 and Porsche a similar amount to DM porate tax cuts and a reduction in com- Y8 but closed Y3 lower at Y732. NEC and 1,350. RELATIVELY light profit-taking devel- pulsory contributions to the Central Matusushita Electric Industrial gained Blue-chip electrical Siemens gained oped among Johannesburg gold shares, Provident Fund become dear. STOCK MARKET MDIceS bullion Y10 each to YI.25Q and Yl,240, respec- DM 14 to DM 764. The group plans to in- but a recovery in the price al- Singapore Land led the active list with ' tively. Anritsu Electric leaped Y106 to YORK Jan 14 Previous Year ago vest Pta lObn ($64.8m) in Spain over the lowed a slight rebound from the day's a proportionally high turnover of lm Y2.210 and TDK Y50 to Y4,1O0. DJ Industrials 1.514.11’ 1,520.53 1.234.54 next four years. low. shares from the total volume I of 7.8m but DJ Transport 692.07* prices 692.31 588.02 All West German bourses continued to Vaal Reefs closed R4 down at R217 af- retreated 2 cents to S$2» Singapore Air- Bond turned firmer, supported DJ utilities 17239* 17234 by speculative buying by 14834 operate for the normal number of hours ter R215, while President Steyn shed R3 lines, also active, shed 2 cents to SS4-92. some major ; ?• SAP Composite 20620* 206.72 170.51 brokerage houses. yesterday, but Frankfurt bourse presi- to R56.50. Other miners were mixed, Singapore Press slipped 10 cents to The yield on fee 6-2 per cent government bond, maturing LONDON dent Michael Hauck said bourses would with Impala Platinum 50 cents down at SS5.80 in modest trading, and Genting in * probably continue to extend the R27 and leading diamond producer De July 1995, declined to 5.790 per cent from FTOrd 1,094.3 1.108.8 961.8 two eased 4 cents to S$4J>0. Cold Storage Monday s 5.855 per FT-SE 100 1270.1 1284.6 12203 hours of official trading on an ad hoc Beers 20 cents higher at R16JW. edged 5 cents lower to SS2.58. cent FT-A All-share 664.42 67232 594.77 basis. FT-A 500 72733 73623 652.79 Two large foreign buy orders injected • Hu • i FT Gold mines 306.8 3002 480.1 enthusiasm into the bond market, and ,,, FT-A Long gSt 10.77 10.69 10.72 prices firmed. Longer-dated issues Be'" • f gp./i TOKYO added between 10 and 15 basis points 1 Euro-currencies J«n14 Prev while shorts ended mostly unchanged. Nikkei 12.928.60 '* 1227732 11.82330 1 (3-month offered rate) an 3 Tokyo The Bundesbank changed its tack and SE 1,02730 1,02920 93038 £ 13* 13* b SFr 4%, sold DM 53Dm worth of domestic paper AUSTRALIA 4*, DM 4 after buying DM 15.3m. on Monday. COMMERCIALS AflOrd. BANCA ITALIANA 1.048.9 1,051.1 7342 FFr 12* 11'*« Multinationals made a reasonable re- Metals & Mins. 1 Joint-Stock Company tftfi Head Office in Mian - Capital Lb*420000.000000 My paid - Legal reserve Uv 1W.00Q.000.000 - 528.4 5323 409.9 FT London Interbank firing in Amsterdam, aided by the last- Bank of National Mawt covery Registry - - 1 (offered rate) Registered at the Mian Reg. no. 2774 Tax axle no. 01255Z7D157 minute overnight rally Wall Street AUSTRIA 3-month USS 8% 8*. on Credit Aktien 125.74 125 3 58.73 6-morrth US$ 8* 8* and a slightly softer dollar against the US Fed Funds 7ft- 7* guilder. BELGIUM US3-moath CDs 7.95* 7.95 Unilever picked up some of Monday’s p£]i Belgian SE 2,78826 2772.94 2,15720 US 3-