. -. FINANCIAL TIMES Bermuda The US .wf FT Guide Today’s survey al A tiny paradise Ulii, Clinton’s U-turn William Dawkins: Maharashtra flexes its muscles Lam on the budget Japan's stock market Michael Prowse, Page 14 Page 8 Separate Section I MONDAY JUNE *D 1995 m Shell pledges to Russian premier in telephone talks go ahead with Bosnian Serbs plan to sink oil rig Hopes rise Anglo-Dutch. oil giant Shell insisted there would be no last-minute change in plans to sink the Brent for end of Spar oil platform, which today »® approach its free the last 26 dumping site 130 miles off the west coast of Scot- land. While the British government again defended „ Chechnya Shell's actions, opposition parties joined calls across Europe for a boycott of Shell filling stations Shell said it expected to sink the platform “in the hostage middle of tbe week", although it stressed that timing hostages bad weather could upset the Two members UN of Greenpeace, the environmental protest crisis group, will have to be removed from the Bren! Spar By Laura Sflbor in Belgrade and before Shell uses explosives to sink the rig. Bruce Clark in London Civilians die as shell hits By Chrystia Freeland in Moscow Page 16 The Bosnian Serbs last World Bank sot to approve Mexico loan: night water in Sarajevo Mr Victor Chernomyrdin, the released the last 26 of the UN queue The World Bank is poised to approve a Slbn loan, Russian prime minister, yester- peacekeepers held hostage but the single biggest in its history, as part of its back- day used a crackling telephone faced fresh international censure ending of tbe hostage ing for the multi-billion dollar support package for crisis, Mr Haris Silajdric. the Bosnian connection with Chechen gun- after at least seven civilians were which developed on May 2C when prime minister, said yesterday J Mexico, Page 17 I men to secure the release of 200 killed by ,t shell in a Sarajevo the Bosnian Serbs captured the government offensive had hostages and raise hopes of a I ‘. 5l115 France’s Iff tails In local elections: France’s suburb. nearly peacekeepers, - Hk i^. 400 would been aimed at averting fresh negotiated settlement to the cri- extreme right-wing National party failed The shelling of civilians queue- Front to give the UN greater flexibility in attacks on the capital, whose cen- i sis. take control of a number of towns where it was pre- ing for water in a government- responding to Serb actions. tre has been shelled intermit- Mr Chernomyrdin's display of & t dicted to gain a high proportion of votes in local held district of the Bosnian capi- However. French President Jac- teoely since April 2962. telephone diplomacy - shown to elections. ta 1 was tbe first sign of Serb ques Chirac said he hoped the Mr Silajdzic said the case Tor millions on domestic television - retaliation to the bid by govern- freeing of the peacekeepers ending tbe arms embargo against could be the start of a break- 7. Twelve die In petrol station blast: At least 12 as ment forces to weaken tbe 38- would clear the way for a cease- his country had been strength- through in the four-day hostage 'juanij people were killed in an explosion at a petrol sta- moatb-old siege of the city. fire, a negotiated end to the Serb ened by yesterday's attack on the crisis in the southern Russian tion at Eynaten, Belgium, owned by Belgian oil The atrocity was expected to blockade of Sarajevo and all- civilians. company Petrofma. city of Budennovsk. It is also rj-^t trigger fresh calls, especially in party talks. Tbe Bosnian Serbs denied hav- likely to boost the political for- ;•' «fe-ne. BZW poised to buy Wells Fargo NDcko: the US Congress, for air strikes A Bosnian official, in a hint ing lost any ground in recent tunes of the prime minister, who ••• PfrfrtB*- BZW, the investment banking arm of Barclays, is against the Serbs. But there were that the city's plight could be fighting and they threatened to recently formed his own political • • tiLTE. on the verge of buying Wells Fargo Nikko Invest- also signs that negotiations to eased by negotiation rather than strike back bard. Mr Momcilo parry, at the expense of Russian ment Advisors, the US fund management group in a ease the city's encirclement were force, said yesterday he believed Krajisnik, the chairman of the president Boris Yeltsin, whose •:• •*: -T.. ^ deal estimated to be worth between SSOOm and making some progress. the Serbs might be willing to Bosnian Serb assembly, said his popularity has fallen further -• !j sSb 5700m. Page 17 Bosnian president Alija Jzet- restore water, electricity and gas forces would “stop and break after what is seen as his mishan- .sssiTi? begovic said yesterday he would to government-held parts of the Moslem aggression against Serb dling of the Budennovsk attack. * Belgian bank looks set to win CLBN: hS« •:.- restrain government forces city. Sarajevo." Chechen gunmen responded to • ’• Generate L'"2 Bank of Belgium looked likely to be the £4; around Sarajevo if the Serbs “I believe the Serbs . have Tbe 26 captives - li Canadians the telephone talks with the preferred bidder to take over Credit Lyonnais Bank : -£' wr ns withdrew heavy weapons and realised it is senseless,” said Mr and 15 military observers from immediate release of 100 women Nederland, Dutch subsidiary of French bank Credit .': 2l 'iSS- opened routes for relief convoys. Hassan Muratovic, a Bosnian other countries - were taken to and 100 children. Later yesterday, Lyonnais which is selling off assets to ease its He also offered a ceasefire minister without portfolio, in an Serbia by bus after the UN the Chechen guerrillas asked for heavy debt burden. Page 20 throughout the country if the indication tbat UN-mediated released four Serb soldiers who six buses to take themselves, BAe rules out derivatives m VSEL battle: Bosnian Serbs lilted their objec- negotiations on easing the block- were captured in a firelight with some of the hostages and a group British Aerospace ruled out using derivatives to tions to an internationally spon- ade might have made some prog- French forces last month. of Russian MPs to a village in underpin the value of any new bid for submarine sored peace plan. ress. In Sarajevo, the UN mission southern Chechnya. Mr Cherno- builder VSEL. Page 17 Leaders of the Group of Seven The Bosnian government, was allowed by tbe Serbs to with- myrdin ordered an immediate industrialised nations and Russia which has so far rebuffed inter- draw 67 soldiers from weapons halt to Russian military' activities to 07 step up crime fight: The Group of Seven ended their summit at Halifax in national appeals for an immedi- depots and observation posts on in Chechnya and the commander leading industrial nations Russia agreed to step and Canada on Saturday with an ate ceasefire, said it had gained Serb-held territory. They had of Russian forces in the region up cooperation in tbe fight against international appeal for a halt to the violence, ground on three sides of Sarajevo been surrounded by Serb soldiers confirmed that decision last even- minimise crime and to the dangers posed by the use but there was little immediate before yesterday's lull in tbe for the three weeks, and their ing. A group of Russian officials nuclear of civil power. Page 5 sign that either side would heed fighting. The UN said it could withdrawal means the UN has yesterday flew to Grozny, the call. Basayev Bndennovsk capital, begin broader China warns Washington of crisis: China the only .confirm govtmment gains gf-VR up trying to control heavy Chechen rebel commander Shamil inside the Chechen to Western diplomats said the the western side of the city. weapons in Sarajevo. hospital where he was holding hundreds of hostages p.n» at peace talks with Chechen sepa- escalated the war of words over the visit to the US on ratists. this month of President Lee Teng-hui of Taiwan by "Good day. Shamil Basayev. again bitterly denouncing the US and warning that this is Chernomyrdin. It’s a very relations were at a crossroads. Page 4 bad line, can you hear me?" the Opec worried by surge In output: Oil UK networking group plans $300m purchase prime minister bellowed in the ministers from tbe Organisation of Petroleum highest level contact so far Exporting Countries are due to meet in Vienna By Antonia Sharpe including traditional data com- between Moscow and Mr Bas- today against a worrying background in which non- In London Madge aims to consolidate its market position munications, imaging, video and ayev, leader of the Chechen gun- Opec producers, including the UK and Norway, are multi-media. men in Budennovsk. Caking the lion's share of the growth in world Madge Networks, the biggest the backbone of the multi-media employees. Mr Madge said the of S2I3m in 1991. Lannet. which "Of all the switching technolo- With his grey suit, gold- demand. Page 3 UK-based computer networking systems planned by many of the acquisition reflected the trend was listed on Nasdaq in 1991, has gies. ATM is the one that holds rimmed glasses and silver pen group, plans to acquire an Israeli world's leading organisations. towards consolidation in the mar- revenues of about STOm. The new the promise of handling all types poised over a notebook. Mr Cher- Rfft over single market: Deep divisions over company for about $300m in a Although based in the UK - Mr ket.