IBC COFFEE AUCTIONS TO START SOON


21-APR-1987 11:35:01.50 coffee ukbrazil dauster C T f1400reute b f BC-IBC-COFFEE-AUCTIONS-T 04-21 0115 IBC COFFEE AUCTIONS TO START SOON – DAUSTER LONDON, April 21 – The Brazilian Coffee Institute, IBC, plans to sell in a series of auctions over the next few weeks robusta coffee purchased in London last year, but details of where and when auctions will take place are still to be finalised, IBC president Jorio Dauster told reporters. The sales of 630,000 bags of robusta and an unspecified amount of Brazilian arabica coffee will take place over a minimum of six months but it is not decided where sales will take place or whether they will be held weekly or monthly. The amount offered at each sale has also not been set, but could be in the order of 100,000 bags, Dauster said. Reuter 21-APR-1987 11:37:33.52 canada E f1416reute u f BC-AMCA-(AIL)-NAMES-NEW 04-21 0054 AMCA (AIL) NAMES NEW CHAIRMAN TORONTO, April 21 – AMCA International Ltd said it appointed president and chief executive officer WIlliam Holland to succeed Kenneth Barclay as chairman. Barclay, who is 60 years old, decided not to stand for reappointment as chairman this year but will continue as a director, AMCA said. Reuter 21-APR-1987 11:38:04.12 crude usa Y f1418reute u f BC-API-OIL-INVENTORY-REP 04-21 0081 API OIL INVENTORY REPORT TO BE ISSUED TONIGHT NEW YORK, APRIL 21 – The American Petroleum Institute, API, said its weekly U.S. petroleum inventory report will be issued tonight, despite many company closures on Friday of last week for the Easter holiday. The API report is usually released around 1700 EDT on Tuesday nights. The Energy Information Administration said it also expects its weekly oil statistic report to be released as usual, on Wednesday night at about 1700 EDT. Reuter 21-APR-1987 11:44:00.53 acq usa F f1442reute u f BC-FAIRCHILD 04-21 0095 SORO GROUP TO LIMIT FAIRCHILD STOCK BUYS WASHINGTON, April 21 – Quantum Fund N.V., a Netherlands Antilles mutual fund for which New York investor George Soros is investment adviser, said it has agreed to limit further purchases of Fairchild Industries Inc stock. In a filing with the Securities and Exchange Commission, Quantum, which already holds 1,647,481 Fairchild common shares, or 11.5 pct of the total outstanding, said it agreed to the restriction after Fairchild said its security clearance might be jeopardized if Quantum acquires a major stake in it. But Quantum said Fairchild management was told that Soros, acting either individually or through entities other than Quantum that he controls, may decide to buy common stock in the company on his own behalf. Quantum had recently notified the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 that it might buy up to 49.9 pct of Fairchild’s voting stock. Unless the FTC had objected, Quantum would have been free, but not obligated, to buy up to 49.9 pct of Fairchild stock. Fairchild management, however, warned that if Quantum, a foreign entity, raises its stake in the company to 49.9 pct, it could “impair” the government security clearances Fairchild needs to carry out its its defense contract work. In response, Quantum said it told Fairchild it will not make “significant additional purchases” of its common or preferred stock without giving Fairchild enough prior notice to enable it to consult with Quantum over the impact of action. Quantum also said it has withdrawn its notification request to the FTC and the antitrust division of the Justice Department of its intent to buy up to 49.9 pct of Fairchild. Quantum also said it told the FTC and the Justice Department that it does not expect to resubmit any further notifications of intent to significantly raise its stake in Fairchild at this time. The restrictions Quantum has agreed to follow regarding further dealings in Fairchild stock do not apply to Soros as an individual investor. Fairchild’s annual shareholders meeting is scheduled to be held tomorrow. Reuter 21-APR-1987 11:45:56.03 money-fx usa V RM f1446reute b f BC-/-FED-ADDS-RESERVES-V 04-21 0059 FED ADDS RESERVES VIA TWO-DAY REPURCHASES NEW YORK, April 21 – The Federal Reserve entered the U.S. Government securities market to arrange two-day System repurchase agreements, a Fed spokesman said. Dealers said that Federal funds were trading at 6-7/16 pct when the Fed began its temporary and direct supply of reserves to the banking system. Reuter 21-APR-1987 11:49:31.32 usa nasdaq F f1466reute d f BC-CAPITAL-ASSOCIATES- TO TRADE ON NASDAQ COLORADO SPRINGS, Colo., April 21 – Capital Associates Inc said its common stock will be included in NASDAQ’s national market system, starting today. Capital Associates is an equipment leasing and financial service company with headquarters in Colorado Springs, Colo. Reuter 21-APR-1987 11:52:37.63 copper usa C M f1486reute u f BC-/MINT-REVIEWS-OFFERS 04-21 0105 MINT REVIEWS OFFERS ON 3,701,000 LBS COPPER WASHINGTON, April 21 – The U.S. Mint received 17 offers from seven firms at prices ranging from 0.66845-0.6840 dlrs per lb for payment by standard check and 0.66695-0.68 dlrs per lb for wire transfer payment in a review of offers on 3,701,000 lbs of electrolytic copper it is seeking to purchase. Philipp Brothers, N.Y., led with the lowest offers of 0.66695 for wire transfer payment and 0.66845 dlrs per lb to be paid by check, followed by Cerro Sales Corp, N.Y., with 0.6684 dlrs per lb on one mln lbs for wire payment, and 0.6713 dlrs per lb on one mln lbs for standard payment. Firms, in submitting offers, elect to be paid by standard check or wire transfer, with awards based on whichever of the two methods is more cost advantageous at that time. Cerro Sales also offered prices for wire payment of 0.6689 dlrs per lb on one mln lbs and 0.6693 dlrs per lb on 1,701,000 lbs. Cerro’s standard payment offers included 0.6719 dlrs per lb on one mln lbs and 0.6723 dlrs per lb on 1,701,000 lbs. Cargill Metals, Minneapolis, offered 0.67025 dlrs per lb for wire payment and 0.67275 dlrs per lb for standard payment, while Elders Raw Materials, Darien, Ct., offered 0.6718 dlrs per lb for wire payment and 0.6735 dlrs per lb for standard payment on increments of 950,000 lbs each. Other offers for wire transfer payment include 0.6759 dlrs per lb on 380,000 lbs, submitted by Deak International, N.Y., 0.6789 dlrs per lb on the entire quantity by Diversified Metals Corp, St. Louis, and 0.68 dlrs per lb by Gerald Metals, Stamford, Ct. Other standard payment offers include 0.6819 dlrs per lb on 950,000 lbs by Diversified Metals, and 0.6840 dlrs per lb on the entire quantity by Gerald Metals. The Mint said the copper is for delivery the week of May 11 to Olin Corp, East Alton, Ill. The offers have a minimum acceptance period of three calendar days, it said. Reuter 21-APR-1987 11:55:33.03 canada E F f1500reute r f BC-ahed--may-iss 04-21 0076 AHED MAY ISSUE ONE MLN SHARES Toronto, April 21 – Ahed Corp said it began discussions with an investment dealer about issuing an additional one mln treasury shares in the near future. Ahed also said it believes recent increases in its stock price could be attributable to a published report describing the activities of the company. Ahed said no other events are known to have taken place which would cause these recent price increases. Reuter 21-APR-1987 11:55:57.82 usa F f1503reute r f BC-U.S.-WEST--INTRO 04-21 0082 U.S. WEST INTRODUCES DATA NETWORK PRODUCT NEW YORK, April 21 – U.S. WEST INC said it introduced its first product for managing data networks, called the NETCENTER graphic network monitor. The product was developed by U.S. WEST Network Systems Inc, a subsidiary of U.S. WEST INC, it said. It will be distributed in the third quarter of 1987. The company said the product is aimed at companies with IBM SNA networks, and will allow customers control over their own networks. The initial license fee for a typical configuration will be in the 100,000 dlr to 300,000 dlr range, depending on the size of the network, the company said. Reuter 21-APR-1987 12:04:11.03 grainwheatbarleyoilseedrapeseed france C G f1537reute u f BC-FRENCH-WINTER-CEREAL 04-21 0106 FRENCH WINTER CEREAL SOWING SEEN LITTLE CHANGED PARIS, April 21 – The Ministry of Agriculture left its estimates of French winter cereal sowings for the 1986/87 campaign barely changed at 6.606 mln hectares compared with its previous forecast of 6.601 mln. This compared with the 6.41 mln ha of winter cereals harvested in the 1985/86 campaign. Winter soft wheat sowings were put at 4.647 mln ha compared with its previous estimate of 4.651 mln and 4.57 mln ha harvested last campaign. Winter barley plantings were forecast at 1.46 mln ha, unchanged from its previous estimate and compared with 1.41 mln harvested last season. The ministry put hard winter wheat sowings at 246,000 ha versus a February 1 estimate of 236,000 and actual area harvested last campaign of 217,000. Winter rape plantings were forecast at 627,000 ha against a previous estimate of 621,000 and 375,000 rpt 375,000 harvested in 1985/86. Reuter 21-APR-1987 12:11:18.43 gold canada F f1591reute r f BC-ENERGEX-MINERALS- MAY RUN UP TO THREE PITS VANCOUVER, British Columbia, April 21 – Energex Minerals Ltd said economic evaluation of reserves indicates high-grade operation from three open pits may be feasable based on five-year operation at 100 tons a day, a payback of less than 1-1/2 years. An increase in the project’s life, profitability and scale is anticipated as additional reserves are developed in 1987, the company said. Current reserves are one mln long tons at 0.20 ounce gold per ton, all categories; proven-probable 262,242 long tons at 0.25 ounce gold per ton, the company said. Reuter 21-APR-1987 12:13:27.73 acq canada E F Y f1605reute r f BC-dome--executives 04-21 0083 TURNER TO MEET WITH DOME EXECUTIVES Ottawa, April 21 – Liberal Party leader John Turner said he will meet with senior executives of Dome Petroleum Ltd in Calgary tomorrow to discuss the proposed sale of Dome. Turner’s office said he will hold a news conference tomorrow at 1400 MDT (1600 EDT) in Calgary. Turner, who is opposition leader in Parliament, has criticized Dome’s acceptance of a 5.1 billion dlr takeover bid from Amoco Corp as a sell-out of Canada’s oil industry. Reuter 21-APR-1987 12:13:34.25 usa F f1606reute r f BC-NEW-YORK-TIMES- 04-21 0079 NEW YORK TIMES SEES UNEVEN GAINS IN 1987 HUNTSVILLE, Ala., April 21 – The New York Times Co said that if prevailing business conditions continue, the company sees “another outstanding year, although the remaining quarters of 1987 will probably not show uniform gains.” The company’s first quarter earnings rose 21 pct to 41.1 mln dlrs or 50 cts a share compared to 33.9 mln dlrs or 42 cts a share in the year-ago quarter restated for a two-for-one stock split. The company also said its newspaper division, which includes the New York Times and 32 regional newspapers, had a first quarter operating profit of 69.8 mln dlrs compared with 60.7 mln dlrs in the year-ago first quarter mainly due to advertising volume and rate increases. The company’s magazine division, which includes “Family Circle,” had a first quarter profit of 9.7 mln dlrs compared to 7.4 mln dlrs in the year ago quarter. The company’s broadcasting and cable tv group reported an operating profit of 2.9 mln dlrs compared to 2.6 mln dlrs in the year-ago first quarter. Reuter 21-APR-1987 12:14:27.18 usa F A RM f1611reute u f BC-BANKERS-TRUST--TI 04-21 0115 BANKERS TRUST TIES NET TO CURRENCY EARNINGS NEW YORK, April 21 – Bankers Trust New York Corp said its first quarter foreign exchange trading income rose to 82.8 mln dlrs from 20.9 mln dlrs in the first qtr of 1986, offsetting the bank’s 7.4 mln dlr loss incurred from placing 540 mln dlrs of Brazilian loans on a non-accrual status. Earlier, the bank reported that first quarter net income increased to 124.2 mln dlrs, or 1.77 dlrs a share, from 115.9 mln dlrs, or 1.64 dlrs a share, a year ago. Bankers Trust chairman Alfred Brittain III said increased non-interest income, a lower provision for loan-losses and increased net interest income also helped first quarter net. Bankers Trust previously announced that the 540 mln dlrs in non-accruable Brazilian loans would cut its first quarter earnings by 7.4 mln dlrs, and could slice about 30 mln dlrs from the full year’s net. Bankers Trust said non-interest income in the first quarter equaled 275.4 mln dlrs, up 37.1 mln dlrs from a year ago. Loan losses fell in the quarter to 22 mln dlrs, versus 40 mln dlrs a year ago while taxable net interest income remained flat at 266 mln dlrs, the bank said. Reuter 21-APR-1987 12:15:12.80 acq usa F Y f1618reute r f BC-ALTEX--TO-SELL-O 04-21 0072 ALTEX TO SELL OILFIELD SERVICES ASSETS DENVER, April 21 – Altex Industries Inc said it agreed to sell the assets of its wholly-owned oilfield service subsidiary, Parrish Oil Tools Inc. The price and buyer were not disclosed. Altex said Parrish had a loss from operations of 428,000 dlrs on revenues of 881,000 dlrs in fiscal 1986 and a loss from operations of 48,000 dlrs on revenues of two mln dlrs in fiscal 1985. Reuter 21-APR-1987 12:17:02.35 usa F f1633reute r f BC-IMARK-INDS--V 04-21 0041 IMARK INDS VOTES ANNUAL 25 CT DIVIDEND GENESEO, ILL., April 21 – Imark Industries Inc said its directors approved payment of an annual dividend of 25 cts on May 21, record May seven. The company paid the same dividend last year. Reuter 21-APR-1987 12:17:09.99 usa F f1634reute r f BC-DUQUESNE-LIGHT- 04-21 0083 DUQUESNE LIGHT HURT BY LEGISLATION PITTSBURGH, APril 21 – Duquesne Light Co president Wesley von Schack told shareholders that current state law and regulatory policies will result in higher capital rates and higher rates for customers. “Pennsylvania’s recently enacted excess capacity legislation denies shareholders the opportunity to earn a fair return on their investment and undermines economic development in Pennsylvania,” von Schack told shareholders at the annual meeting. Von Schack said two major bond rating agencies have recently downgraded Duquesne’s credit rating due to regulatory uncertainty. The action will result in higher capital rates and higher rates for customers, he said. He said the Pennsylvania Utility commission indicated in its most recent rate case decision that even if newly constructed Perry No. 1 nuclear plant was in commercial operation, shareholders would be denied a return on their investment in the plant. Von Schack called on shareholders to join it and certain legislators’ efforts to create a partnership to fight these issues and resolve these problems. Reuter 21-APR-1987 12:17:49.31 interestmoney-fxgnp kuwait RM f1638reute r f BC-CREATIVE-MONETARY-POL 04-21 0109 CREATIVE MONETARY POLICY TO SPUR KUWAITI ECONOMY By Rory Channing, Reuters KUWAIT, April 21 – Kuwait, a major oil producer hit by last year’s price slump, is leaning towards a more creative monetary policy to help spur its economy, banking sources said. “There is a clear emphasis on encouraging the use of money in productive ventures, rather than having it all tied up in interest bearing investments which have no direct productive outlet,” one banker said. Kuwait’s Central Bank yesterday cut one key money market rate and abandoned another which had been used since February 1986 to direct inter-bank borrowing and lending costs. The bank reduced to six pct from 6-1/2 pct the rate at which it will offer funds of one month to one year in the inter-bank market. This, in turn, affected retail rates. The cut, the third this year, followed a major overhaul of interest rate policy last month which Central Bank Governor Sheikh Salem Abdul-Aziz al-Sabah said was designed to revive the economy. One banker said “There is growing flexibility, creativity, in interest rate policy, amid an awareness of the need to diversify the economy by stimulating the non-oil sector.” For the first time in nearly three years domestic interest rates are now significantly below those for the U.S. Dollar, a favourite haven for Gulf speculative and investor funds in the past, banking sources said. Despite uncertainties generated by the 6-1/2 year old Iran- Iraq war on Kuwait’s northern doorstep, bankers play down the prospect of any significant capital flight. The Kuwaiti dinar, whose value is set by the Central Bank and was fixed today at 0.27095/129 to the dollar, is stronger now than for several years. Fears that the dollar may fall further will prompt second thoughts among Kuwaiti investors prepared to consider switching funds into the U.S. Currency, the sources said. “There is a distinct exchange rate risk,” they added. Bankers said the dollar slump hurt many investors behind the last major capital outflow in 1984, encouraged then by 18 pct U.S. Interest rates and the start of Iranian attacks on neutral shipping in the Gulf. The Central Bank calculates its dinar exchange rate against a basket of currencies. Bankers do not know the basket’s exact make-up but say it is weighted heavily in favour of the dollar. Some bankers believe any strengthening of the dinar beyond 0.27000 to the dollar might provoke investors into shifting funds into the U.S. Currency. “They may ask:When will the dollar be so cheap again?” one said. And with dinar interest rates now roughly one pct below those for the dollar, they say the Central Bank faces a delicate balancing role requiring further flexibility. Bankers said the current, expansionary interest rate policy is only part of a broader attempt to encourage local investment and strengthen the backbone of the economy. They estimate the economy, measured in terms of GDP and allowing for inflation, shrank 19 pct in 1986 after an 8.1 pct contraction the previous year. Bankers also noted recent measures to stimulate stock market activity, capped today by sharp cuts in brokerage fees to make it cheaper for investors to trade. REUTER 21-APR-1987 12:23:33.91 usa F f1672reute r f BC-CSX--UNIT-CHAIRM 04-21 0065 CSX UNIT CHAIRMAN RETIRES WHITE SULPHUR SPRINGS, W. Va., April 21 – CSX Corp said that Joseph Abely, chairman and chief executive officer of CSX’s Sea-Land Corp unit, will retire by the end of the month. The company said he will be replaced by Robert Hintz, executive vice president of CSX and president and chief executive officer of the company’s energy and properties groups. Reuter 21-APR-1987 12:28:08.02 brazil F f1702reute d f BC-BRAZIL-FUND-SHOULD-ST 04-21 0095 BRAZIL FUND SHOULD START OPERATING SOON SAO PAULO, April 21 – A Brazil Fund through which foreign investors will be able to buy stocks in Brazilian companies should start operating in about two months, the Securities and Exchange Commission said. A spokesman told Reuters that four institutions in the United States were interested in participating in the Fund — Merrill Lynch and Co Inc, Salomon Brothers Inc, the IFC and the First Boston Corp. The spokesman said the Fund, approved last December, was expected to attract about 100 mln dlrs of investments. Reuter 21-APR-1987 12:36:27.62 oilseedrapeseed japancanada C G f1756reute u f BC-JAPAN-BUYS-4,000-TONN 04-21 0043 JAPAN BUYS 4,000 TONNES OF CANADIAN RAPESEED WINNIPEG, April 21 – Japan bought 4,000 tonnes of Canadian rapeseed for last-half May/first-half June shipment, nearly completing buying for May needs, trade sources said. Price details were not available. Reuter 21-APR-1987 12:39:08.68 grainwheat south-koreacanada C G f1763reute u f BC-SOUTH-KOREA-BUYS-50,0 04-21 0038 SOUTH KOREA BUYS 50,000 TONNES CANADIAN WHEAT WINNIPEG, April 21 – South Korea yesterday bought 50,000 tonnes of Canadian feed wheat for late June/early July shipment at 95.00 dlrs per tonne FOB Vancouver, trade sources said. Reuter 21-APR-1987 12:39:55.30 trade usa reagan RM A f1766reute r f BC-WASHINGTON-BUDGET 04-21 0106 SENATE PREPARING FOR NEW U.S. BUDGET BATTLE By Michael Posner, Reuters WASHINGTON, April 21 – Congress returned from its Easter recess ready for the annual Spring budget battle that promises to be a partisan dispute. The budget fight pitting Democrats against President Reagan and Republicans is expected to get underway this week in the Senate late this week and last at least another week. It is taking on new prominence because of current trade woes. That is because the budget problems and its associated huge deficits are said to be at the root of related international trade friction currently worrying financiers. As the dollar slides downward on global markets and stock exchanges gyrate wildly, the trade dispute involving the United States and Japan once again is spreading fears of a major trade war between the two trading giants for the first time since World War II. Ostensibly that dispute is over U.S. charges that Japan is refusing to open its markets to semi-conductor chips and the resulting U.S. tariffs doubling prices of Japanese televisions and small computers. Behind the elements of a brewing trade war which neither side wants, is the dilemma of the U.S. budget and its deficit. Some analysts say the financial markets may be waking up to the economic realities that the huge debt cannot continue to grow without repercussions. A large portion of the U.S. debt has been financed by foreigners from their accumulated trade surpluses. But if they withdraw this support the result can only be further problems, including higher interest rates for Americans. In a nutshell, the U.S. budget process has now moved to the showdown stages in Congress. Reagan’s own trillion dollar spending budget for the government year 1988, starting Oct. 1, was trounced badly in the House on April 9. The Senate takes up a plan similar to one that passed the House, calling for slashing the deficit from its estimated 171 billion dlr level next year to about 134 billion dlrs, through defense and domestic spending cuts and about 18.5 billion dlrs in new, unspecified, taxes. As the Senate prepares to take up its own budget plan, majority Democrats predict there will be passage of a bill, only after a protracted partisan battle. In the House, not one Republican voted for the budget, which passed by 230 to 192. In the Senate, none of Reagan’s Republicans voted for the budget as it passed out of the Senate Budget Committee for full Senate consideration. A key Senate Budget Committee source told Reuters he believes this very unusual unanimous opposition was by design among congressional Republicans, perhaps with the tacit approval of the White House. “Republicans want Democrats to take the heat for any tax hikes and defense cuts,” he said. In the coming weeks, the source said, Democrats will press for a bipartisan budget and seek a negotiated budget with Reagan — who already is opposed to the idea. But “it is not clear how the Republicans will act,” he added. He said Republicans may propose their own plan for lower taxes and more defense spending, which they did not offer after Reagan’s budget was clobbered in an early vote in the House. When Reagan entered the White House in 1981, he inherited what was labelled a huge deficit from Jimmy Carter that wound up to be nearly 79 billion dlrs that year. Despite Reagan’s promise to balance the budget by 1983, critics note that his administration’s record of accumulated debt is estimated over one trillion dlrs, or 1,100 billion dlrs. That is money the government must borrow, and pay back, and many analysts say it is what kept the dollar high and caused the worst U.S. trade deficit ever. Last year the United States bought goods from the world worth 169.8 billion dlrs more than what it sold, including purchases of 58.6 billion dlrs in Japanese goods. While Congress is trying to attack the trade deficit on one front through a get-tough trade bill promising retaliatory measures unless all markets are opened, its success so far against the budget deficit has been marked by limited progress. Congress, which controls the pursestrings, has put the deficit on a downward path from its record high of 220.7 billion dlrs accumulated in fiscal 1986, which ended Sept. 30. Because of the Gramm-Rudman-Hollings balanced budget law enacted in late 1985, there has been pressure on Congress to do more than talk about deficits. That law, named after Republican Senators Phil Gramm of Texas, Warren Rudman of New Hampshire and Democrat Ernest Hollings of South Carolina, calls for a balanced budget by 1991 through a series of set deficit targets that Congress must meet. The law has been followed, even though an enforcement mechanism to mandate automatic across-the-board cuts if Congress misses its goal was stricken by the Supreme Court. The legislators have followed the targets — on paper. But in reality, the goal has actually been missed. For example, Congress last year approved legislation to meet the 1987 target of a 144 billion dlr deficit. But even after approving the numbers, the deficit for 1987 is estimated at over 170 billion dlrs — far off the target. This year the target is 108 billion dlrs and that goal is expected to be missed widely. Reuter 21-APR-1987 12:42:37.02 usa A RM f1778reute r f BC-COMMONWEALTH-EDISON-< 04-21 0112 COMMONWEALTH EDISON SELLS MORTGAGE BONDS NEW YORK, April 21 – Commonwealth Edison Co is raising 360 mln dlrs via a two-tranche offering of first and refunding mortgage bonds, said lead manager Morgan Stanley and Co Inc. A 200 mln dlr issue of bonds due 1990 has an 8-1/8 pct coupon and was priced at 99.775 to yield 8.21 pct, or 65 basis points over comparable Treasury securities. A 160 mln dlr offering of bonds due 1992 has an 8-5/8 pct coupon and was priced at 99.85 to yield 8.661 pct, or 78 basis points more than Treasuries. Both tranches are non-callable for life and rated A-3 by Moody’s and A by S and P. Salomon Brothers Inc co-managed the deal. Reuter 21-APR-1987 12:47:33.66 acq usa F f1796reute r f BC-ROYAL-RESOURCES 04-21 0058 BUSINESSMAN HAS ROYAL RESOURCES STAKE WASHINGTON, April 21 – James Stuckert, a Louisville, Ky., businessman, told the Securities and Exchange Commission he has acquired 380,000 shares of Royal Resources Corp, or 5.7 pct of the total outstanding common stock. Stuckert said he bought the stake for 600,000 dlrs solely as an investment. Reuter 21-APR-1987 12:48:28.99 usa F f1800reute d f BC-ATT--LAUNCHES-SYST 04-21 0091 ATT LAUNCHES SYSTEMS FOR SMALL BUSINESSES NEW YORK, April 21 – American Telephone and Telegraph Co introduced two communications systems, Spirit and Merlin, and other products, in a bid to strengthen its position with small businesses, the company said. The Spirit system, with a basic price tag of 1,500 dlrs, can handle up to six lines and 16 telephones and a more advanced line which can handle up to 24 lines and 48 tlelphones. ATT said the Merlin line, which starts at 2,500 dlrs, can handle up to 32 lines and 72 telephones. ATT said the new products will eventually replace the current Merlin product family. Some of the systems will be available in May and others in the third quarter. ATT also introduced software enhancements for the System 25, for business that require PBX voice and data communications and need up to 150 phones. These and other enhancements will be available in the third quarter, the company said. Reuter 21-APR-1987 12:53:58.04 cpi spain RM f1823reute r f BC-SPAIN-MAINTAINS-FIVE 04-21 0091 SPAIN MAINTAINS FIVE PCT INFLATION TARGET MADRID, April 21 – Spanish Secretary of State for the economy Guillermo de la Dehesa said the government maintained its five pct inflation target for this year although a 0.6 pct increase in March pushed the rise in the year on year consumer price index to 6.3 pct. De la Dehesa said the March rise, announced today by the National Statistics Institute, was not entirely satisfactory but acceptable. The year on year rate at the end of February was six pct. Prices rose 8.3 pct last year. The March rise included a 0.05 pct increase correcting an error in last January’s consumer price index. Economists had earlier said the error could have been as high as 0.2 pct. De la Dehesa said seasonal increases in food prices pushed the index up in March and he expected the rate to be lower in April. The Communist-led Workers Commissions union said the March price rise showed inflation was going up again and the government looked increasingly unlikely to meet its five pct target. The Workers Commissions said the inflation trend fuelled unions’s claims to wage increases beyond the government’s recomendation to limit wage rises at around five pct. Spain is being affected by a two-month-old wave of strikes for wage rises. Government officials note wage settlements so far this year have yielded average increases upwards of six pct, while unions say the figure is higher then seven pct. REUTER 21-APR-1987 13:00:06.84 crude usa Y f1842reute u f BC-API-SAID-STATISTICS-T 04-21 0036 API SAID STATISTICS TO BE RELEASED TONIGHT NEW YORK, April 21 – The American Petroleum Institute said it plans to release its weekly report on U.S. oil inventories tonight, even though last Friday was a holiday. Reuter 23-APR-1987 18:32:18.42 usa F f3036reute r f BC-GCA--COMPLETES-F 04-23 0102 GCA COMPLETES FINANCIAL RESTRUCTURING ANDOVER, Mass., April 23 – GCA Corp said it completed its previously announced plan of financial restructuring under which Hallwood Group Inc took a 14 pct interest in the company, a maker of semiconductor manufacturing equipment. The company said it also implemented a one-for-50 reverse stock split. Under terms of the plan, the company exchanged about 109 mln dlrs in debt to creditors and suppliers for 43 mln dlrs in cash, and warrants to purchase 2.2 mln shares of its common stock. GCA also raised 71.7 mln dlrs through the sale of common stock. Reuter 23-APR-1987 18:34:33.58 usa F f3040reute u f BC-SEC 04-23 0098 SEC WARNS SECURITIES DEALERS ON HIGH MARK-UPS WASHINGTON, April 23 – The Securities and Exchange Commission reminded securities dealers that its mark-up disclosure requirements also applies to transactions on zero-coupon securities. Dealers and brokers are required by U.S. securities law to disclose their mark-ups if they are excessive, the SEC said in a public notice. Further, excessive mark-ups on securities transactions, whether disclosed or not, violate the rules of the national Association of Securities Dealers Inc and Municipal Securities Rulemaking Board, it said. In a separate action, the SEC filed a friend-of-the-court brief in a private civil case involving a complaint against Merrill Lynch over excessive mark-ups on zero-coupon bonds. The case is being appealed to the U.S. Appeals Court. The lower court dismissed the complaint, finding antifraud provisions of securities laws do not prohibit undisclosed excessive mark-ups on securities transactions. The SEC is urging the appeals court to reverse the decision, citing its nearly 50 year-old position that undisclosed excessive mark-ups by securities dealers violate the general antifraud provisions of securities laws. Reuter 23-APR-1987 18:37:03.79 earn canada E F f3044reute u f BC-SOUTHAM-INC- 04-23 0043 SOUTHAM INC 1ST QTR NET TORONTO, April 23 – Oper shr 32 cts vs 37 cts Oper net 18.9 mln vs 21.6 mln Revs 352.1 mln vs 323.0 mln Note: 1987 net excludes extraordinary gain of 2.8 mln dlrs or five cts shr from sale of surplus property. Reuter 23-APR-1987 18:45:40.42 earn usa F f3052reute r f BC-LOCTITE-CORP--3R 04-23 0044 LOCTITE CORP 3RD QTR MARCH 31 NET NEWINGTON, Conn., April 23 – Shr 96 cts vs 53 cts Net 8,663,000 vs 4,798,000 Revs 89.7 m ln vs 66.8 mln Nine mths Shr 2.33 dlrs vs 1.67 dlrs Net 21.1 mln vs 15.1 mln Revs 241.3 mln vs 192.8 mln Reuter 23-APR-1987 18:56:03.00 usajapan RM V f3056reute u f BC-U.S.-CONGRESS-STILL-A 04-23 0104 U.S. CONGRESS STILL ANGRY WITH JAPAN – ABE NEW YORK, April 23 – Special Japanese envoy Shintaro Abe said in a brief interview with Reuters that the feeling in the U.S. congress is “very severe” against Japan. However, Abe said he believed that neither Congress nor the Reagan administration wants to undermine relations with Japan. He said the Reagan administration showed “relative understanding” of how Japan is trying to alleviate its U.S. trade imbalance. Abe said he was convinced “Congress and the administration had the same view that the relationship between Tokyo and Washington should not be undermined.” Reuter 23-APR-1987 18:59:23.50 earn usa F f3060reute u f BC-GLENFED-INC--3RD 04-23 0070 GLENFED INC 3RD QTR MARCH 31 NET GLENDALE, Calif., April 23 – Oper shr 1.54 dlrs vs 82 cts Oper net 33.7 mln vs 17.66 mln Revs 473.1 mln vs 419.0 mln Nine mths Oper shr 4.60 dlrs vs 2.39 dlrs Oper net 100.4 mln vs 51.0 mln Revs 1.38 billion vs 1.21 billion Assets 18.5 billion vs 15.5 billion Deposits 13.00 billion vs 11.29 billion Loans 15.04 billion vs 12.56 billion Note: Oper net excludes extraordinary loss 6,636,000 and 11.9 mln for 1987 qtr and nine mths on prepayment of borrowings from the Federal Home Loan Bank Board. Oper also excludes tax credits of 15.8 mln vs 5,954,000 for qtr and 17.8 mln vs 11.6 mln for nine mths. Reuter 23-APR-1987 19:00:51.40 earn usa F f3062reute r f BC-HORIZON-INDUSTRIES-IN 04-23 0053 HORIZON INDUSTRIES INC 2ND QTR NET CALHOUN, Ga., April 23 – Qtr ended April four Shr profit eight cts vs loss 22 cts Net profit 341,000 vs loss 903,000 Revs 58.4 mln vs 46.3 mln Six mths Shr profit 35 cts vs loss 19 cts Net profit 1,466,000 vs loss 767,000 Revs 121.4 ln vs 95.9 mln Reuter 23-APR-1987 19:02:27.01 money-supply usa RM V f3063reute u f BC-/FED-DATA-PROVIDE-NEW 04-23 0097 FED DATA PROVIDE NEW EVIDENCE OF TIGHTER POLICY By Alan Wheatley, Reuters NEW YORK, April 23 – U.S. banking data released today are too distorted to draw sweeping conclusions about monetary policy, but they do support the market’s assumption that the Federal Reserve has started to tighten its grip on credit, economists said. “It’s clear that the Fed has firmed somewhat. Discount window borrowings, net free reserves, the Fed funds rate average and the pattern of reserve additions are all consistent with a modest tightening,” said Dana Johnson of First Chicago Corp. Johnson, and several other economists, now estimate that the Fed funds rate should trade between 6-1/4 and 6-3/8 pct. Discount window borrowings in the week to Wednesday were 935 mln dlrs a day, producing a daily average for the two-week statement period of 689 mln dlrs, the highest since the week of December 31, 1986, and up from 393 mln dlrs previously. Moreover, banks were forced to borrow a huge 5.2 billion dlrs from the Fed on Wednesday – the highest daily total this year – even though unexpectedly low Treasury balances at the Fed that day left banks with over two billion dlrs more in reserves than the Fed had anticipated. However, economists said it is almost certain that the Fed is aiming for much lower discount window borrowings than witnessed this week. They pointed to two factors that may have forced banks to scramble for reserves at the end of the week. First, economists now expect M-1 money supply for the week ended April 29 to rise by a staggering 15 to 20 billion dlrs, partly reflecting the parking in checking accounts of the proceeds from stock market sales and mutual fund redemptions to pay annual income taxes. As banks’ checking-account liabilities rise, so do the reserves that they are required to hold on deposit at the Fed. Required reserves did indeed rise sharply by 2.5 billion dlrs a day in the two weeks ended Wednesday, but economists said the Fed may not have believed in the magnitude of the projected M-1 surge until late in the week and so started to add reserves too late. Second, an apparent shortage of Treasury bills apparently left Wall Street dealers with too little collateral with which to enagage in repurchase agreements with the Fed, economists said. Thus, although there were 10.3 billion dlrs of repos outstanding on Wednesday night, the Fed may have wanted to add even more reserves but was prevented from doing so. “It’s not at all inconceivable that the Fed didn’t add as much as they wanted to because of the shortage of collateral,” said Ward McCarthy of Merrill Lynch Economics Inc. McCarthy estimated that the Fed is now targetting discount-window borrowings of about 400 mln dlrs a day, equivalent to a Fed funds rate of around 6-3/8 pct. After citing the reasons why the Fed probably has not tightened credit to the degree suggested by the data, economists said the fact that the Fed delayed arranging overnight injections of reserves until the last day of the statement period was a good sign of a more restrictive policy. Jeffrey Leeds of Chemical Bank had not been convinced that the Fed was tightening policy. But after reviewing today’s figures, he said, “It’s fair to say that the Fed may be moving toward a slightly less accommodative reserve posture.” Leeds expects Fed funds to trade between 6-1/4 and 6-3/8 pct and said the Fed is unlikely to raise the discount rate unless the dollar’s fall gathers pace. Johnson at First Chicago agreed, citing political opposition in Washington to a dollar-defense package at a time when Congress sees further dollar depreciation as the key to reducing the U.S. trade surplus with Japan. Reuter 23-APR-1987 19:08:09.42 earn usa F f3066reute r f BC-RORER-GROUP-INC- 04-23 0072 RORER GROUP INC 1ST QTR NET FORT WASHINGTON, Pa., April 23 – Oper shr profit 34 cts vs loss 78 cts Oper net profit 7,434,000 vs loss 17.0 mln Revs 201.2 mln vs 171.7 mln Note: Year-ago oper exludes gain on sale of businesses of 139.6 mln. Year-ago oper includes charges of 27.8 mln resulting from allocation of the purchase price of Revlon’s businesses to inventory and 7.1 mln for restructuring costs. Reuter 23-APR-1987 19:36:56.77 coffee costa-ricaguatemala ico-coffee T f3073reute u f AM-centam-coffee 04-23 0088 MILD COFFEE GROWERS TO MEET IN GUATEMALA SAN JOSE, April 23 – A large group of “other milds” coffee-growing nations will hold talks in Guatemala next month to map their strategy for next September’s meeting of the International Coffee Organisation (ICO). Mario Fernandez, executive director of the Costa Rican coffee institute, said delegates from Mexico, the Dominican Republic, Peru, Ecuador, India, Papua New Guinea and five central american nations will participate in the two-day strategy session beginning May 4. The main topic will be reform of what many producing countries perceive as the ICO’s unfair distribution of export quotas, Fernandez said. He said Costa Rica would press for quotas “based on the real production and export potential of each country in the past few years” and to distribute quotas based on “historic” production levels rather than recent harvests and crop estimates. Reuter 23-APR-1987 19:48:08.94 acq usa F f3076reute u f AM-COMSAT 04-23 0107 US STUDY DISCUSSES DROPPED COMSAT-CONTEL MERGER WASHINGTON, April 23 – A congressional study today said the proposed, but now apparently abandoned, merger of the Communications Satellite Corp and Contel Corp would technically be legal but could violate the spirt of the law setting up COMSAT. Two weeks ago before the study was completed, Contel announced it would seek to terminate the proposed merger. The study by the non partisan Congressional Research Service (CRS) said “the proposed merger appears to comply, technically, with the mandates or letter of statutes, if may nevertheless violate the spirit of the law.” Comsat, created by a 1962 act of Congress, and Contel, a corporation of local telephone and communications firms, filed with the Federal Communications Commission last November 3 an application for merger. Several firms had protested the proposed merger. In an analysis of the law, the research service issued several critical comments about the structure of the new firm and said apparent domination by Contel of a restructured COMSAT would have broken the spirit of the law setting up COMSAT.COMSAT is the U.S. arm of Intelstat, the international satellite communications firm. Reuter…^M 23-APR-1987 19:48:47.25 japanusa nakasone C f3077reute u f BC-JAPANESE-PARLIAMENT-P 04-23 0138 SETBACK SEEN FOR NAKASONE IN JAPANESE PARLIAMENT TOKYO, April 24 – Japan’s Lower House passed the 1987 budget after the ruling Liberal Democratic Party agreed to a mediation proposal that could kill its plan to introduce a controversial sales tax, political analysts said. The move was seen as a major blow to Prime Minister Yasuhiro Nakasone, the leading advocate of the five pct tax. Some analysts predicted Nakasone might be forced to step down just after the June summit of leaders from major industrial democracies, well before his one-year term is due to expire at the end of October. The ruling party though was anxious to pass the budget before Nakasone leaves next week for the U.S. so that he could tell Washington the Japanese government was doing its utmost to boost the sagging economy and imports. Reuter 23-APR-1987 20:21:46.09 money-fxdlr RM f3091reute b f BC-BANK-OF-JAPAN-INTERVE 04-23 0086 BANK OF JAPAN INTERVENES IN TOKYO MARKET TOKYO, April 24 – The Bank of Japan intervened just after the Tokyo market opened to support the dollar from falling below 140.00 yen, dealers said. The central bank bought a moderate amount of dollars to prevent its decline amid bearish sentiment for the U.S. Currency, they said. The dollar opened at a record Tokyo low of 140.00 yen against 140.70/80 in New York and 141.15 at the close here yesterday. The previous Tokyo low was 140.55 yen set on April 15. REUTER 23-APR-1987 20:24:10.50 money-supply australia RM f3092reute b f BC-AUSTRALIA’S-M-3-MONEY 04-23 0101 AUSTRALIA’S M-3 MONEY SUPPLY RISE 1.5 PCT IN MARCH SYDNEY, April 24 – Australia’s M-3 money supply growth was 1.5 pct in March and 11.3 pct in the 12 months to March, the Reserve Bank said. This compared with a revised rise of 0.5 pct in February and 11.1 pct in the year to end-February. The Reserve Bank said the M-3 data for March was affected by the start of the operations of , which has resulted in the transfer of deposits (equivalent to around 1.5 pct of m-3) from the United Permanent Building Society to National Mutual Royal Savings Bank Ltd. The Reserve Bank said M-3 money supply in March was 110.77 billion Australian dlrs compared with a revised 109.11 billion in February and 99.48 billion in March, 1986. M-3 is deposits of the private sector held by trading and savings banks plus holdings of notes and coins. REUTER 23-APR-1987 20:30:17.87 japan RM f3094reute b f BC-JAPANESE-PARLIAMENT-P 04-23 0111 JAPANESE PARLIAMENT PASSES 1987 BUDGET TOKYO, April 24 – Parliament’s Lower House passed the 1987 budget shortly before midnight local time, official parliamentary sources said. The move followed agreement by the ruling Liberal Democratic Party to a proposal that could kill its plan to introduce a controversial sales tax, political analysts said. The move was seen as a major blow to Prime Minister Yasuhiro Nakasone, the leading advocate of the five pct tax, they said. Some analysts said Nakasone may be forced to step down after the June summit of heads of major industrial democracies and before his one-year term is due to expire at end-October. Under the compromise agreed by the LDP and opposition parties, Lower House Speaker Kenzaburo Hara will take charge of the sales tax bill, appoint a ruling/opposition party council to debate it and allow opposition leaders to review the present tax system, analysts said. Hara also verbally agreed to scrap the sales tax plan entirely if the joint council fails to reach agreement on how to handle the tax. The opposition parties, who have been vociferously attacking the sales tax plan for months, hailed the decision as a great victory. The opposition parties had already delayed passage of the budget for three weeks after the April 1 start of the fiscal year by intermittent parliamentary boycotts. Although the LDP had more than enough votes to ram the budget through parliament, it had been reluctant to do so for fear of a backlash of public opinion, especially after its setback in recent local elections due to the sales tax issue. The ruling party though was anxious to pass the budget before Nakasone leaves next week for the U.S. So that he could tell Washington the Japanese government was doing its utmost to boost the sagging economy and imports. According to Kyodo News Service, Nakasone told reporters he did not think the sales tax was dead. If the sales tax is dropped, it could prove a major boost to the economy because it would increase the government budget deficit, economists said. The sales tax was originally scheduled to be introduced next January to help offset the loss of government revenues stemming from a cut in income and corporate taxes due to go into effect this month. REUTER 23-APR-1987 20:35:24.14 money-fxdlr usajapan RM f3095reute f f BC-Dollar-trades-at-post 04-23 0011 ******Dollar trades at post-war low of 139.50 yen in Tokyo – brokers Blah blah blah. 23-APR-1987 21:19:18.12 dlr RM f3111reute f f BC-Many-major-nations-ye 04-23 0012 ******Many major nations yesterday intervened heavily to aid dlr – Miyazawa Blah blah blah. 23-APR-1987 21:25:22.52 acq uk F f3114reute f f BC-STANDARD-OIL-SAYS-BRI 04-23 0012 ******STANDARD OIL SAYS BRITISH PETROLEUM SHARE TENDER EXTENDED UNTIL MAY 4 Blah blah blah. 23-APR-1987 21:28:14.05 money-fxdlr usajapan miyazawa RM f3115reute b f BC-JAPAN-HAS-NO-PLANS-FO 04-23 0110 JAPAN HAS NO PLANS FOR NEW MEASURES TO AID DLR TOKYO, April 24 – Finance Minister Kiichi Miyazawa said Japan has no plans to take new emergency measures to support the dollar, other than foreign exchange intervention. He also told reporters that many major nations yesterday intervened heavily to support the dollar against the yen. Yesterday’s intervention was large in terms of the countries involved and the amounts expended, he said. With the continued fall of the dollar against the yen, 0speculation had arisen in currency markets here that Japan might take new measures to support the U.S. Currency, such as curbing capital outflows. Miyazawa said that yesterday’s news of a 4.3 pct rise in U.S. Gnp in the first quarter had been expected. Although the growth looks robust on the surface, the figures in reality are not that good, he said. He said the ruling Liberal Democratic Party (LDP) is expected to come up with a final set of recommendations of ways to stimulate the Japanese economy before Prime Minister Yasuhiro Nakasone leaves for Washington next week. Commenting on yesterday’s report on economic restructuring by a high-level advisory panel to Nakasone, Miyazawa said it was important to put the panel’s recommendations into effect. REUTER 23-APR-1987 21:34:36.89 acq usauk F f3117reute b f BC-STANDARD-OIL-SAYS-BP 04-23 0082 STANDARD OIL SAYS BP EXTENDS TENDER NEW YORK, April 23 – Standard Oil Co said in a brief announcement issued after a meeting of its board of directors that British Petroleum Co PLC (BP) has extended its 70 dlr per share tender offer until midnight May 4. The offer for the 45 pct of Standard shares not owned by BP had been due to expire midnight April 28. Standard Oil said discussions with BP concerning the tender were continuing but provided no further details. “So long as those discussions continue, no recommendation will be made to Standard Oil shareholders regarding the offer,” Standard said. Standard directors met at the company’s Cleveland headquarters on Thursday in a regularly scheduled meeting. The spokesman was unable to say if the meeting would continue on Friday. A committee of independent directors previously obtained an opinion from First Boston Corp that the Standard shares were worth 85 dlrs each, 15 dlrs more than the BP offer. REUTER 23-APR-1987 21:38:26.85 usa F f3120reute u f BC-QANTAS-TO-BUY-EXTENDE 04-23 0104 QANTAS TO BUY EXTENDED RANGE BOEING 767 AIRCRAFT SYDNEY, April 24 – State-owned said it has placed a firm order for a single Boeing Co 767-300ER (extended range) aircraft for delivery in August 1988 at a cost of 150 mln Australian dlrs, including spares. A statement said it also has options to buy six more and will decide in mid-1987 whether to use engines made by United Technologies Corp unit Pratt and Whitney or General Electric Co . The 767-300ER can carry more cargo and passengers and is more fuel-efficient than the 767-200, six of which Qantas has in service. REUTER 23-APR-1987 21:40:47.37 usajapan RM f3123reute u f BC-JAPAN-AGENCY-URGES-WA 04-23 0115 JAPAN AGENCY URGES WATCH ON YEN RISE EFFECTS TOKYO, April 24 – Japan should look out for possible effects of the yen’s recent sharp rise on Japan’s economy as growth remains slow, the government’s Economic Planning Agency said in a monthly report submitted to cabinet ministers. EPA officials told reporters the underlying trend of the economy is firm but growth is slow due to sluggish exports. Customs-cleared exports by volume fell 4.9 pct month-on-month in February after a 2.8 pct fall in March. The government must take adequate economic measures to expand domestic demand and stabilise exchange rates in a bid to ensure sustained econonic growth, the report said. The report made a special reference to the yen’s renewed rise and its effect on the economy, the officials said, adding the agency’s judgement of current economic conditions has not changed since last month. The EPA said last month Japan’s economy is beginning to show signs of bottoming out, conditional upon exchange rates. The dollar fell below 139 yen in early trading today – a post-war low. REUTER 23-APR-1987 22:03:13.44 money-supplyinterest japan RM f3135reute b f BC-JAPAN-DOES-NOT-INTEND 04-23 0108 JAPAN DOES NOT INTEND TO EASE CREDIT – OFFICIALS TOKYO, April 24 – The Bank of Japan does not intend to ease credit policy further, bank officials told Reuters. They were responding to rumours in the Japanese bond market that the central bank was planning to cut its 2.5 pct discount rate soon, possibly before Prime Minister Yasuhiro Nakasone leaves for Washington on April 29. Bank of Japan governor Satoshi Sumita will be in Osaka, western Japan on April 27 and 28 for the annual meeting of the Asian Development Bank, making a rate cut announcement early next week a virtual impossibility, they said. April 29 is a holiday here. REUTER 23-APR-1987 22:49:55.57 interest australia RM f3162reute u f BC-NATIONAL-MUTUAL-CUTS 04-23 0068 NATIONAL MUTUAL CUTS AUSTRALIAN PRIME TO 17.75 PCT MELBOURNE, April 24 – National Mutual Royal Bank Ltd said it would cut its prime rate to 17.75 pct from 18.25, effective April 27. The cut follows a trend toward lower rates started last month and accelerated by Westpac Banking Corp, which yesterday cut its prime to 17.50 pct from 18.25 pct. Westpac’s 17.50 pct is the lowest prevailing rate. REUTER 23-APR-1987 23:12:19.63 acq australiacanada F f3171reute u f BC-ELDERS-PURCHASE-OF-CA 04-23 0102 ELDERS PURCHASE OF CANADIAN BREWER APPROVED SYDNEY, April 24 – Elders IXL Ltd said the Canadian government approved its bid for . Elders earlier announced it was buying 10.9 mln shares, or 50.1 pct of Carling, from the Canadian subsidiary of Rothmans International Plc for 18 Canadian dlrs each. Elders chairman John Elliott said in a statement when the offer for the ordinary shares closed on April 23, that acceptances representing over 93 pct of outstanding shares had been received. would proceed to acquire the rest compulsorily, he said. REUTER 23-APR-1987 23:51:21.93 crude ecuadorcolombia opec RM f3186reute u f BC-ECUADOR-TO-USE-COLOMB 04-23 0106 ECUADOR TO USE COLOMBIA OIL LINK FOR FIVE YEARS BOGOTA, April 23 – Ecuador will use a new pipeline link with Colombia to export crude oil for the next five years, Colombian mines and energy minister Guillermo Perry said. The link will be inaugurated on May 8. It was built to allow Ecuador to resume exports of crude oil halted on March 5 by earthquake damage to its Lago Agrio to Balao pipeline, Once that pipeline is repaired, Ecuador will exceed its OPEC quota in order to offset lost income and pay debts contracted with Venezuela and Nigeria since the quake, Ecuador mines and energy minister Javier Espinosa said. The two ministers were speaking at a news conference after signing an agreement for joint oil exploration and exploitation of the jungle border zone between the two nations. Drilling will begin in September. “The agreement to transport Ecuadorean crude oil is not only for this emergency period but for the next five years, with possibility of an extension. Between 20,000 and 50,000 barrels per day (bpd) will be pumped along it,” Perry said. Espinosa said Ecuador planned to pump 35 mln barrels through the link in the next five years, at a cost of 75 cents per barrel during the first year. The 43-km link, with a maximum capacity of 50,000 bpd, will run from Lago Agrio, the centre of of Ecuador’s jungle oilfields, to an existing Colombian pipeline that runs to the Pacific port of Tumaco. Espinosa said the 32-km stretch of the link built on the Ecuadorean side cost 10.5 mln dlrs. Perry gave no figures for Colombia’s 11 km segment but said it was “insignificant compared with what we are going to earn.” OPEC member Ecuador was pumping around 250,000 bpd before the quake. Lost exports of 185,000 bpd are costing it 90 mln dlrs per month, Espinosa said. REUTER 23-APR-1987 23:57:39.18 indonesia RM f0001reute u f BC-SUHARTO-PARTY-SET-FOR 04-23 0107 SUHARTO PARTY SET FOR EASY WIN IN INDONESIA POLLS JAKARTA, April 24 – President Suharto’s ruling Golkar party appears to have made substantial gains with over 75 pct of the votes counted in Indonesia’s national elections. Figures released by the election commission showed Golkar on target to take 70 pct of the vote. Provisional figures indicate that with results of 68.9 mln ballots announced, Golkar had won 50.29 mln, the Moslem-based United Development Party 10.93 mln and the nationalist Democratic Party 7.69 mln. The total electorate is 94 mln and officials said they thought about 90 pct of the votes had been counted. 24-APR-1987 06:10:35.04 denmark zse F f0368reute r f BC-DENMARK’S-NOVO-INDUST 04-24 0108 DENMARK’S NOVO INDUSTRI GETS SWISS SHARE LISTING COPENHAGEN, April 24 – Danish-based insulin and enzymes producer Novo Industri A/S said in a statement that its “B” shares would be listed on stock exchanges in Zurich, Basel and Geneva from May 4. The aim is to create broader European interest in Novo stock, currently listed in Copenhagen, London and New York, said the statement issued after yesterday’s ordinary general meeting. Novo said more than 50 pct of its B shares were owned by U.S. Investors. The new listings, the first by a Danish company on the Swiss exchanges, will not involve issuing of new share capital. REUTER 24-APR-1987 06:16:49.25 graincorn taiwanusa G C f0376reute u f BC-TAIWAN-TO-TENDER-UP-T 04-24 0088 TAIWAN TO TENDER UP TO 87,000 TONNES OF U.S. MAIZE TAIPEI, April 24 – The joint committee of Taiwan’s maize importers will tender on April 29 for two cargoes of U.S. Maize, totalling between 54,000 and 87,000 tonnes for delivery between May 21 and June 25, a committee spokesman told Reuters. Taiwan has set a calendar 1987 import target of 2.92 mln tonnes compared with imports of 3.05 mln in 1986. About 80 pct of the imports are expected to come from the U.S. And the rest from South Africa, the spokesman said. REUTER 24-APR-1987 06:18:18.37 money-fx switzerland languetin RM f0379reute u f BC-SWISS-COMMITTED-TO-JO 04-24 0106 SWISS COMMITTED TO JOINT CURRENCY INTERVENTION BERNE, April 24 – The Swiss National Bank will continue to take part in concerted intervention on currency markets as necessary, president Pierre Languetin told the bank’s annual meeting. He said the dollar had on occasion hit highs or lows which bore no relation to economic fundamentals and cooperation between all monetary authorities was necessary to prevent it breaching thresholds that would damage everyone. “We are resolved — as we have done in the past — to take part in concerted intervention to the extent that this is possible and desirable,” Languetin said. Languetin said Switzerland had noted with satisfaction the six nation Paris accord on currency stabilisation measures in February, adding that it had anchored the principle of strengthened international cooperation. He said measures such as recent concerted intervention were useful in the short term. But he added, “The (Paris) Louvre accord can produce no lasting effects without a correction of the fundamental imbalances, without a reduction of the American budget deficit and without stronger growth in Europe and Japan.” Languetin said certain changes would probably be necessary in the “too expansive” monetary policy of the United States, adding that there was a prevailing view that U.S. Money supply was expanding too strongly. “If this should last long the dollar could only be stabilised at the cost of a substantial easing in monetary policy on the part of the other central banks, which would in turn create the basis for a new wave of world-wide inflation,” he said. One positive factor was that monetary authorities in the most important countries had not relinquished their anti-inflation policies. REUTER 24-APR-1987 06:34:22.72 sugar japancuba C T f0409reute u f BC-JAPANESE-BUYERS-ACCEP 04-24 0103 JAPANESE BUYERS ACCEPT CUBA SUGAR DELAY – TRADERS TOKYO, April 24 – Several Japanese buyers have accepted postponement of between 150,000 and 200,000 tonnes of Cuban raw sugar scheduled for delivery in calendar 1987 until next year following a request from Cuba, trade sources said. Cuba had sought delays for some 300,000 tonnes of deliveries, they said. It made a similar request in January when Japanese buyers agreed to postpone some 200,000 tonnes of sugar deliveries for 1987 until 1988. Some buyers rejected the Cuban request because they have already sold the sugar on to refiners, they added. Japanese buyers are believed to have contracts to buy some 950,000 tonnes of raw sugar from Cuba for 1987 shipment. But Japan’s actual raw sugar imports from Cuba are likely to total only some 400,000 to 450,000 tonnes this year, against 576,990 in 1986, reflecting both the postponements and sales earlier this year by Japanese traders of an estimated 150,000 tonnes of Cuban sugar to the USSR for 1987 shipment, they said. They estimated Japan’s total sugar imports this year at 1.8 mln tonnes, against 1.81 mln in 1986, of which Australia is expected to supply 550,000, against 470,000, South Africa 350,000, against 331,866, and Thailand 400,000, after 390,776. REUTER 24-APR-1987 06:48:14.73 tea india C T f0423reute r f BC-INDIA-AIMS-TO-EXPORT 04-24 0106 INDIA AIMS TO EXPORT 280 MLN KILOS TEA BY 1990 NEW DELHI, April 24 – India plans to export about 280 mln kilos of tea a year by 1990, up from estimates of 202 mln in 1986 and 220 mln in 1985, Minister of State for Commerce Priya Ranjan Dasmunsi told Parliament. Bad weather reduced domestic tea output in 1986 causing a shortfall in exports. To boost exports the government recently introduced higher cash compensatory support on packet tea, excise tax rebate of 50 paise per kilo of bulk tea, full rebate of excise duty on packet tea exports and exemption of customs duty on filter paper used in making tea bags, he said. REUTER 24-APR-1987 06:54:11.82 switzerland F f0430reute u f BC-UBS-CONFIRMS-FIRST-QU 04-24 0099 UBS CONFIRMS FIRST QUARTER PROFITS LOWER ZURICH, April 24 – Union Bank of Switzerland said first quarter profits were higher than in the third and fourth quarters of 1986, but were below the record results of the first quarter of last year. Nevertheless, the bank said overall performance in the first three months was satisfactory, with the situation particularly promising in commission, foreign exchange, securities and trading sectors. In a newspaper interview on April 10, chief executive Nikolaus Senn said first quarter earnings had been below last year’s level. The bank said its assets grew by 1.2 billion francs in the three month period to reach 153.3 billion at end-March. If it had not been for the decline in the dollar, the rise would have been as much as 4.3 billion francs, it said. REUTER 24-APR-1987 07:03:23.39 reserves norway RM f0444reute r f BC-NORWEGIAN-CENTRAL-BAN 04-24 0107 NORWEGIAN CENTRAL BANK RESERVES RISE IN MARCH OSLO, April 24 – Norway’s Central Bank reserves totalled 74.77 billion crowns in March, against 70.56 billion in February and 98.55 billion in March 1986, the Central Bank said in its monthly balance sheet. Foreign exchange reserves totalled 67.05 billion crowns, compared with 67.21 billion in February and 92.08 billion crowns a year ago. Gold reserves totalled 284.7 mln crowns, unchanged from the previous month and last year’s figure. Central Bank special drawing right holdings were 3.07 billion crowns, compared with 3.06 billion in February and 2.27 billion a year ago. REUTER 24-APR-1987 07:14:16.83 interestmoney-fxmoney-supply spain RM f0463reute u f BC-BANK-OF-SPAIN-RAISES 04-24 0099 BANK OF SPAIN RAISES INTEREST RATES MADRID, April 24 – The Bank of Spain announced a one-point rise in overnight call money rates to 16-5/8 pct, which a central bank spokesman said was part of government efforts to control money supply growth. The increase came after yesterday’s one-point rise and pushed interbank rates to 19 19-1/2 pct from 18-1/8 19 pct. The M-4 money supply, liquid assets in public hands, the broadest measure of money supply, rose 14.1 pct in the first three months compared with this year’s eight pct target. Money supply growth was 11.4 pct last year. REUTER 24-APR-1987 07:21:43.09 money-fxdlryen west-germany RM f0469reute b f BC-BUNDESBANK-BOUGHT-DOL 04-24 0099 BUNDESBANK BOUGHT DOLLARS FOR YEN IN OPEN MARKET FRANKFURT, April 24 – The Bundesbank intervened in the open market to buy dollars for yen ahead of the Frankfurt fixing, dealers said. They said the Bundesbank bought dollars for around 139.80 yen in small amounts in the half-hour running up to the 1100 GMT fix. The Bundesbank did not intervene when the dollar was fixed in Frankfurt at 1.7969 marks. Earlier the Bank of Japan bought dollars steadily in the Far East, but could not stop heavy selling which pushed the dollar to a post-war low of 139.05 yen at one point. REUTER 24-APR-1987 07:22:09.79 money-fxdlryen switzerland RM f0471reute b f BC-NO-SWISS-NATIONAL-BAN 04-24 0094 NO SWISS NATIONAL BANK INTERVENTION SEEN ZURICH, April 24 – A Swiss National Bank spokesman said the bank had not intervened in currency markets today and dealers said they had seen no evidence of Bundesbank action outside West Germany. Frankfurt dealers reported that the Bundesbank bought dollars for yen in the open market there. Zurich dealers said the absence of the Swiss National Bank suggested that no concerted intervention was under way. Asked earlier today if the Swiss National Bank had intervened, the spokesman said “not yet.” REUTER 24-APR-1987 07:23:50.50 money-fxdlr japan V f0474reute u f BC-BANK-OF-JAPAN-INTERVE 04-24 0085 BANK OF JAPAN INTERVENES IN TOKYO MARKET TOKYO, April 24 – The Bank of Japan intervened just after the Tokyo market opened to support the dollar from falling below 140.00 yen, dealers said. The central bank bought a moderate amount of dollars to prevent its decline amid bearish sentiment for the U.S. Currency, they said. The dollar opened at a record Tokyo low of 140.00 yen against 140.70/80 in New York and 141.15 at the close here yesterday. The previous Tokyo low was 140.55 yen set on April 15. REUTER 24-APR-1987 07:26:38.57 sugar france C T f0488reute u f BC-FRENCH-BEET-PLANTERS 04-24 0094 FRENCH BEET PLANTERS SEE FAVOURABLE SOWINGS START PARIS, April 24 – French sugar beet plantings are off to a good start, thanks to generally favourable winter and spring weather, the CGB beet planters’ association said. It said in a report that soil structure was likely to be excellent for good preparation as a result of a cold, reasonably showery, winter. By April 15, 27.8 pct of the area had been sown against three pct at the same year ago date. It added the area sown was likely to be reduced this year by 1.2 pct to 445,000 hectares. REUTER 24-APR-1987 07:28:06.22 trademoney-fxyen japan A f0493reute r f BC-JAPAN-AGENCY-URGES-WA 04-24 0114 JAPAN AGENCY URGES WATCH ON YEN RISE EFFECTS TOKYO, April 24 – Japan should look out for possible effects of the yen’s recent sharp rise on Japan’s economy as growth remains slow, the government’s Economic Planning Agency said in a monthly report submitted to cabinet ministers. EPA officials told reporters the underlying trend of the economy is firm but growth is slow due to sluggish exports. Customs-cleared exports by volume fell 4.9 pct month-on-month in February after a 2.8 pct fall in March. The government must take adequate economic measures to expand domestic demand and stabilise exchange rates in a bid to ensure sustained econonic growth, the report said. The report made a special reference to the yen’s renewed rise and its effect on the economy, the officials said, adding the agency’s judgement of current economic conditions has not changed since last month. The EPA said last month Japan’s economy is beginning to show signs of bottoming out, conditional upon exchange rates. The dollar fell below 139 yen in early trading today – a post-war low. REUTER 24-APR-1987 07:54:16.72 money-fxyen netherlands RM f0538reute b f BC-DEALERS-SEE-MODERATE 04-24 0105 DEALERS SEE MODERATE DUTCH CENTRAL BANK YEN SALES AMSTERDAM, April 24 – The Dutch central bank has intervened in the currency markets today, in apparent concerted action with other central banks, foreign exchange dealers said. They detected selling of the yen for dollars, which some estimated would run to a moderate 200 mln guilders, comparable to token Dutch intervention reported last week. Other dealers, however, said they believed today’s moderate intervention had been in guilders against dollar. The dealers agreed the intervention was minimal and more a political gesture than a market moving force. REUTER 24-APR-1987 08:05:55.09 japan nakasone RM f0558reute u f BC-NAKASONE-EXPECTED-TO 04-24 0103 NAKASONE EXPECTED TO SURVIVE SALES TAX DEFEAT By Janet Snyder, Reuters TOKYO, April 24 – Prime Minister Yasuhiro Nakasone’s unpopular sales tax plan has been defeated and although fellow politicians and political analysts agree he has suffered a grave loss of face only a few are willing to write him off. Michio Watanabe, a Nakasone faction member and deputy secretary general of the ruling Liberal Democratic Party, LDP, is one of those who believes he will survive. “He’s tough, he won’t step down,” but “will hang on to the death” at least until his term ends on October 30, Watanabe told Reuters. The sales tax scheme was a mainstay in Nakasone’s plans to revamp the nation’s tax system for the first time in 36 years. Watanabe acknowledged that the five pct sales tax was a mistake. “It was too greedy,” he said. A two or three pct tariff might have been easier to swallow, he said. One popular school of thought among skeptical analysts is that Nakasone will be remain in office at least until the June 8-10 summit of industrialised nations in Venice. A Western diplomatic observer said he believed that Nakasone would be at the summit as prime minister. But he would not bet on his chances of survival up until October. Masamichi Inoki, a senior fellow at the conservative Institute of Peace and Security, said he did not think Nakasone had suffered irreparable damage. “He will certainly hang on for the summit,” Inoki said. In any event, the general belief now is that the five pct sales tax, as championed by Nakasone, is a dead issue but that an indirect tax, in another form, will be introduced by the LDP. Inoki said he believed the issue would be resurrected as early as the next Diet (parliament) meets. The current session finishes on May 27. The newspaper Tokyo Shimbun expressed another stream of opinion, stating that Nakasone might well get another year to deal with the unfinished and unpopular business of tax reform. The government has to find a way of generating revenue to support an expected glut of elderly Japanese. And the only means of drumming up the money is to levy an indirect tax, said Watanabe, a former Minister of International Trade and Industry. The next prime minister will have to grapple with an indirect tax, and “whoever is the next prime minister won’t be in the job very long,” Watanabe said. Watanabe said he doubted the next prime minister would be any of the three so-called “New Leaders,” LDP secretary general Noboru Takeshita, LDP executive council chairman Shintaro Abe, and Finance Minister Kiichi Miyazawa. Each of them controls a powerful LDP faction. “It will be somebody else,” he said. Political science professor Rei Shiratori of Dokkyo University gave one of the darkest readings on Nakasone’s political future. “Soon after the Venice summit, there will be a move to change the government by the New Leaders,” Shiratori said. “He can’t fight on,” he said. He said Nakasone had a special emotional attachment to the sales tax plan as the last and most important item in Japan’s purge of policies inherited from the U.S. Occupation. Shiratori said an indirect tax will have to be levied, but “to introduce such a tax, they’ll have to change the prime minister.” Nevertheless, Shiratori said he believes Nakasone could hang on until as late as September. REUTER 24-APR-1987 08:22:48.54 interest japan A f0610reute r f BC-JAPAN-DOES-NOT-INTEND 04-24 0107 JAPAN DOES NOT INTEND TO EASE CREDIT – OFFICIALS TOKYO, April 24 – The Bank of Japan does not intend to ease credit policy further, bank officials told Reuters. They were responding to rumours in the Japanese bond market that the central bank was planning to cut its 2.5 pct discount rate soon, possibly before Prime Minister Yasuhiro Nakasone leaves for Washington on April 29. Bank of Japan governor Satoshi Sumita will be in Osaka, western Japan on April 27 and 28 for the annual meeting of the Asian Development Bank, making a rate cut announcement early next week a virtual impossibility, they said. April 29 is a holiday here. REUTER 24-APR-1987 08:23:17.24 money-fxdlr japan miyazawa V f0612reute u f BC-JAPAN-HAS-NO-PLANS-FO 04-24 0109 JAPAN HAS NO PLANS FOR NEW MEASURES TO AID DLR TOKYO, April 24 – Finance Minister Kiichi Miyazawa said Japan has no plans to take new emergency measures to support the dollar, other than foreign exchange intervention. He also told reporters that many major nations yesterday intervened heavily to support the dollar against the yen. Yesterday’s intervention was large in terms of the countries involved and the amounts expended, he said. With the continued fall of the dollar against the yen, speculation had arisen in currency markets here that Japan might take new measures to support the U.S. Currency, such as curbing capital outflows. Miyazawa said that yesterday’s news of a 4.3 pct rise in U.S. Gnp in the first quarter had been expected. Although the growth looks robust on the surface, the figures in reality are not that good, he said. He said the ruling Liberal Democratic Party (LDP) is expected to come up with a final set of recommendations of ways to stimulate the Japanese economy before Prime Minister Yasuhiro Nakasone leaves for Washington next week. Commenting on yesterday’s report on economic restructuring by a high-level advisory panel to Nakasone, Miyazawa said it was important to put the panel’s recommendations into effect. REUTER 24-APR-1987 08:28:22.67 ship japan C G T M f0623reute d f BC-JAPAN-DOCKWORKERS-STR 04-24 0105 JAPAN DOCK STRIKE TO CONTINUE OVER WEEKEND TOKYO, April 24 – A strike by Japanese dockworkers will continue over the weekend as no breakthrough is in sight, a Japan Harbour Transportation Association spokesman said. The association has not yet agreed on a schedule for preliminary negotiations with the National Council of Harbour Workers Unions, because the council insisted on talks with shippers as well as dock management, he said. The strike, which began on Tuesday, halted container movements to points inside Japan from the ports of Tokyo, Yokohama, Nagoya, Osaka, Kobe, Kitakyushu, Shimizu, Yokkaichi and Hakata. Reuter 24-APR-1987 08:36:19.96 trade taiwanusahong-kongsouth-korea A f0657reute r f BC-TAIWAN-WINS-REVISED-T 04-24 0107 TAIWAN WINS REVISED TEXTILE ACCORD FROM U.S. TAIPEI, April 24 – Taiwan and the U.S. Have revised and extended their textile export agreement after negotiations in Washington this week, a spokesman for the Taiwan Textile Federation said. Charles Chen told Reuters the original three year accord has been extended by one year to the end of 1989. The U.S. Has agreed to raise the limit on annual growth of Taiwan’s textile and apparel exports to one pct from 0.5 pct for calendar 1989, he said. “The new accord is more fair and gives breathing space to our textile makers (so they can) diversify their exports to other nations,” he added. Chen said the revised agreement puts Taiwan on similar textile exporting terms to Hong Kong and South Korea. But despite the changes, Taiwanese firms have lost orders to rivals in Hong Kong and South Korea because of the strong Taiwan dollar, he said. The Taiwan currency has risen 17 pct against the U.S. Dollar since September 1985 while the Korean won rose by some six pct and the Hong Kong dollar was stable. Taiwan’s textile exports to the U.S. Amounted to 2.8 billion U.S. Dlrs last year out of total exports to the U.S. Of 7.8 billion. Textile exports are expected to remain the same this year, Chen said. REUTER 24-APR-1987 08:37:06.39 trade japanusa nakasone A f0659reute h f BC-JAPAN-RULING-PARTY-PR 04-24 0111 JAPAN RULING PARTY PREPARES FINAL ECONOMIC PACKAGE TOKYO, April 24 – Japan’s ruling Liberal Democratic Party (LDP) drew up a final plan to expand domestic demand and boost imports in time for Prime Minister Yasuhiro Nakasone’s visit to Washington next week, LDP officials said. The plan calls for additional fiscal measures worth more than 5,000 billion yen, a large-scale supplementary budget for the current fiscal year started April 1, and concentration of more than 80 pct of the annual public works budget in the first half of the year, they said. Nakasone will explain the measures to U.S. Officials during his visit to Washington starting April 29. The LDP plan will be the basis for a government package of pump-priming measures expected to be unveiled in late May. The LDP said Japan should do more to reduce its trade surplus. Its plan is expected to help increase economic growth led by domestic demand, officials said. The government was also urged to review the ceiling on budgetary requests for investment purposes in 1988/89. The government has imposed a five pct cut in investment outlays in the past five years in line with Nakasone’s avowed policy of fiscal reforms. The plan called on Japan to promote government purchases of foreign goods and private sector imports of manufactured goods by improving import financing, and to make clear official procurement procedures for foreign supercomputers. The LDP also said Japan should contribute further to society at large through measures such as doubling its official development assistance to 7.6 billion dlrs in five years or so instead of seven years as the government had originally promised. The government was urged to work out a program to recycle funds from Japan’s trade surpluses to debt-ridden countries. The officials said the funds to be recycled would include those from the private sector and others provided through the government Export-Import Bank of Japan and Japan’s Overseas Economic Cooperation Fund. The plan also calls for the government to take steps to help the development of African and other less developed nations. The LDP called for adequate and flexible management of monetary policy, such as a cut in interest rates on deposits with the Finance Ministry’s Trust Fund, and a tax cut to promote plant and equipment investment. REUTER 24-APR-1987 08:39:45.06 acq usa F f0670reute r f BC-FRIEDMAN-INDUSTRIES-< 04-24 0107 FRIEDMAN INDUSTRIES MERGER NOT APPROVED HOUSTON, April 23 – Friedman Industries Inc said shareholders at a special meeting held for a vote on its proposed merger into companies controlled by Venezuelan businessman John Castellvi failed to provide a high enough affirmative vote for approval. It said about 75 pct of the shares entitled to vote at the meeting were voted in favor, but an 80 pct vote was needed. The company said a significant number of shares held in street name were not voted. As a result, it said it adjourned the meeting until April 28 and, if the merger is approved, closing is expected late next week. Reuter 24-APR-1987 08:44:46.92 interest japan A f0696reute r f BC-BANKERS-CONFIRM-JAPAN 04-24 0107 BANKERS CONFIRM JAPAN LONG-TERM PRIME UNCHANGED TOKYO, April 24 – Long-term bank sources confirmed their banks have decided to leave the current 5.2 pct long-term prime rate unchanged. The current rate has been in effect since March 28. The bankers said the rate was unchanged because the falling dollar and the bond market rally made it difficult to clarify the current level of yen interest rates. There had earlier this week been expectations of a 0.2 point cut from today in response to the fall in the secondary market yield in five-year long-term bank debentures, but bankers said last night the rate would be unchanged. REUTER 24-APR-1987 08:45:02.17 money-fxyen netherlands A f0697reute u f BC-DEALERS-SEE-MODERATE 04-24 0104 DEALERS SEE MODERATE DUTCH CENTRAL BANK YEN SALES AMSTERDAM, April 24 – The Dutch central bank has intervened in the currency markets today, in apparent concerted action with other central banks, foreign exchange dealers said. They detected selling of the yen for dollars, which some estimated would run to a moderate 200 mln guilders, comparable to token Dutch intervention reported last week. Other dealers, however, said they believed today’s moderate intervention had been in guilders against dollar. The dealers agreed the intervention was minimal and more a political gesture than a market moving force. REUTER 24-APR-1987 08:47:39.31 crudenat-gaspet-chemacq canada E F Y f0708reute r f BC-shell-canada- 04-24 0083 SHELL CANADA SEES BETTER YEAR CALGARY, Alberta, April 24 – Shell Canada Ltd said performance in all business segments in the first quarter showed improvement over last year and it expects “significantly enhanced performance” in 1987. Shell Canada reported first quarter earnings of 103 mln dlrs, or 90 cts per share, up from 40 mln dlrs, or 32 cts per share. Oil products earnings were 38 mln dlrs, up 19 mln dlrs from last year, when margins were impaired by lower oil prices. Shell Canada said chemical earnings were 17 mln dlrs in the quarter, compared with a loss of five mln dlrs in 1986. The styrene business saw significant improvement, stemming from an increase in international demand. Resources earnings increased by six mln dlrs to 46 mln dlrs. Lower prices for all commodities were offset by the removal of the Petroleum and Gas Revenue Tax, the impact of lower royalty rates and higher volumes. Gross production of crude oil and natural gas liquids increased seven pct from the first quarter of last year to 11,200 cubic meters a day, Shell said. Shell Canada also said natural gas sales volumes of 19.6 mln cubic meters a day was up five pct from last year. Sulphur sales of 4,143 tonnes a day were up 70 pct. The company also recorded benefits of 10 mln dlrs from the acquisition of Shell Explorer Ltd. Interest expense for the quarter was lower than in the previous year, due to the early retirement of a 200 mln U.S. dlr debenture and the impact of a stronger Canadian dollar on U.S. dollar-denominated debt. Reuter 24-APR-1987 08:48:51.41 nat-gas usa F Y f0714reute r f BC-VALERO-PARTNERS- 04-24 0103 VALERO PARTNERS WINS TAKE OR PAY CASE SAN ANTONIO, Texas, April 24 – Valero Natural Gas Partners LP, 49 pct owned by Valero Energy Corp , said a jury in Sutton County, Texas, district court has found that it had no liability for 21 mln dlrs in take-or-pay claims that had been alleged by Lively Exploration Co. Take-or-pay claims involve allegations that natural gas supply contracts require volume of natural gas to be paid for even if not taken. As a result of declining markets, most pipelines, like Valero, do not have customers for all the gas that could be delivered by producers, such as Lively. Valero said it used as its primary defense the Texas Railroad Commission’s rules that require intrastate pipelines to take ratably from their producers and in times of surplus take gas in accordance with priority categories set by the commission. Reuter 24-APR-1987 08:52:42.34 acq usa F f0734reute r f BC-SERVICE-RESOURCES- OFFERS SORG STAKE NEW YORK, April 24 – Service Resources Corp said its Chas. P. Young Co subsidiary, which has offered to acquire Sorg Inc in a friendly merger at 22 dlrs per share, is willing to explore the possibility that members of the Sorg family and other Sorg shareholders could continue to hold an equity position in the combined company. The company also said it has received a commitment for up to 66 mln dlrs in financing from Security Pacific Corp for the merger, the repayment of Sorg’s bank debt and working capital of the combined company. Reuter 24-APR-1987 09:00:36.72 acq canada E F f0750reute r f BC-hudsons 04-24 0086 HUDSON’S BAY SELLS ROXY STAKE TORONTO, April 24 – Hudson’s Bay Co said it agreed to sell its entire 54.5 pct interest in Canadian Roxy Petroleum Ltd, a total of about 7.5 mln shares, to Westcoast Transmission Co Ltd for 11 dlrs a share. Hudson’s Bay said proceeds of about 82 mln dlrs will be used to reduce corporate debt. It said the sale was part of a program of concentrating on its core business of department stores and real estate. The sale is subject to regulatory approvals. Reuter 24-APR-1987 09:05:21.63 trade japanusa nakasone A RM f0766reute r f AM-TRADE-ABE 04-24 0083 U.S., JAPAN TRADE TIES REMAIN HOSTILE By Robert Trautman, Reuters WASHINGTON, April 24 – The visit this week by a special Japanese envoy has done little to defuse Japan’s trade frictions with the United States, U.S. and congressional leaders say. White House and congressional leaders took a wait-and-see stance, after a series of meetings with former Japanese Foreign Minister Shintaro Abe, who was here paving the way for the April 29-May 2 visit of Prime Minister Yasuhiro Nakasone. They are withholding judgment until Nakasone’s visit, with one senator saying Japan had promised to stimulate its economy and open its markets to foreign goods in the past, but it was time now for action. The U.S. trade deficit last year was a record 169.8 billion dlrs, with more than one-third of it in trade with Japan. Congress is ready to approve tough trade legislation to try to turn around the deficit, which has cost millions of U.S. jobs and closed thousands of factories. Much of the anger has been directed at Japan. U.S.-Japan trade friction was further fueled by President Reagan’s April 17 decision to impose 100 pct tariffs on 300 mln dlrs worth of Japanese goods in retaliation for unfair practices in semiconductor trade. Reagan said he imposed the tariffs on personal computers, television sets and hand tools because Japan failed to keep an agreement to end dumping semiconductors in world markets at less than cost and to open its home market to U.S. products. Abe had asked Reagan to end the tariffs quickly, but U.S. officials said the curbs would not be dropped until Japan had shown it was honoring the pact, which could take several months. White House spokesman Marlin Fitzwater, asked if Nakasone’s visit might help to defuse trade tensions, said “whether progress can be made depends on how you want to measure it.” He added, “I would expect progress to be made. If you want to measure that in terms of lifting the sanctions, that’s more doubtful.” Congressmen were equally skeptical. Abe met Senate and Democratic leaders active in trade legislation, telling them of Japan’s plan to spur domestic spending by 34 billion dlrs and open its markets to a wide range of goods, including supercomputers and farm products. Sen. John Danforth, a Missouri Republican, said after the meeting, “We have heard promises in the past, but the question now is whether there will be real action.” Abe also met House leaders pressing for a tough trade bill, including Congressman Richard Gephardt, a Missouri Democrat. Gephardt is sponsoring legislation to penalize nations with large deficits and which are guilty of unfair trade practices. Gephardt’s legislation would hit Japan, as well as Taiwan, South Korea, and West Germany. The bill is expected to pass the House next week – coinciding with Nakasone’s visit – but its fate in the more moderate Senate is uncertain. A bipartisan group of senators, however, told Nakasone in a letter released as Abe was holding Senate meetings, that fresh Japanese-U.S. trade strife would erupt if Japan’s markets were not soon opened to American goods. The signers included Democratic leader Robert Byrd of West Virginia, Republican leader Robert Dole of Kansas and others ranging from moderate to hardline on trade issues. They said in the letter there was growing U.S. sentiment that Japan was fighting opening its markets and “evidence to the contrary is necessary to combat this perception, or it is likley that additional efforts will be attempted to close off the American market to Japanese goods. Reuter 24-APR-1987 09:11:48.08 trade chinausa G f0791reute d f BC-CHINA-TEXTILE-EXPORTS 04-24 0111 CHINA TEXTILE EXPORTS RECORD HIGH IN 1ST QUARTER PEKING, April 24 – China’s textile exports in the first quarter reached a record 2.2 billion dlrs, an increase of 49 pct on the year-earlier period, the People’s Daily said. Its overseas edition gave no country breakdown. The U.S. Is one of China’s largest markets for textiles. U.S. Commerce Secretary Malcolm Baldrige told a press conference that Chinese textile and apparel exports to the U.S. In 1986 rose 65 pct in value from the 1985 level, a rate of growth that “is not sustainable nor equitable to our other major foreign suppliers.” China is now the United States’ largest textile supplier, he said. Baldrige declined to say what would be an acceptable growth rate for Chinese textile exports. Negotiations on the next China-U.S. Textile agreement are due to begin in May, he said. “There clearly has to be a limit,” he said. “Our economy can only absorb so much textiles. It is in both of our interests to reach a satisfactory conclusion. Without an agreement, we would have a chaotic situation.” Reuter 24-APR-1987 09:16:58.52 gnptradecpijobs switzerland RM f0811reute r f BC-SWISS-GROWTH-SEEN-SLO 04-24 0115 SWISS GROWTH SEEN SLOWING THIS YEAR AND NEXT BASLE, Switzerland, April 24 – The growth of the Swiss economy will likely slow to 2.2 pct this year and 1.9 pct in 1988 after reaching 2.8 pct last year, according to a study by a group at Basle University’s Institute of Applied Economics. It blamed the expected slowdown partly on a disappointing outlook for exports caused by the weaker dollar. Exports would likely grow by 2.8 pct this year and by 3.0 pct in 1988, after 3.0 pct in 1986, the group predicted. Final domestic demand will also fall back, to a likely 3.0 pct this year and 2.3 pct next, after 4.1 pct in 1986. However, the domestic picture will likely be mixed. The study said investment in plant and equipment would continue to be the main motor for the growth in domestic demand, although it was unlikely to grow as fast as last year’s 7.4 pct, rising this year by 4.5 pct and by 2.8 pct in 1988. While the growth in private consumption is expected to fall back to 2.5 pct this year and 2.1 pct in 1988 from last year’s 3.1 pct, public consumption spending will likely grow by 1.9 pct in 1987 and 2.0 pct next year, after 1.5 pct in 1986. Consumer prices were seen rising by 1.7 pct this year and 2.4 pct in 1988, after just 0.8 pct in 1986. Unemployment should fall back to 0.7 pct from last year’s 0.8 pct. REUTER 24-APR-1987 09:18:30.33 acq usa F f0818reute b f BC-/CHRYSLER--SETS-NE 04-24 0099 CHRYSLER SETS NEW AMC TARGET DATE DETROIT, April 24 – Chrysler Corp said it and Regie Nationale des Usines Renault agreed to set May 5 as the new target date when Chrysler aimed at reaching a definitive agreement for Chrysler for acquire American Motors Corp. AMC is 46.1 pct owned by Renault. The two companies originally had targeted April 23 as completion date for reaching a definitive agreement. Chrysler, which signed a letter of intent on March 9 to acquire AMC, said “considerable progress has been made, but a number of issues remain to be resolved.” Reuter 24-APR-1987 09:18:44.31 usa adb-africa A RM f0820reute u f BC-MOODY’S-RATES-ADB’S-S 04-24 0092 MOODY’S RATES ADB’S SENIOR SAMURAI BONDS AAA NEW YORK, April 24 – Moody’s Investors Service Inc said it assigned a top-flight Aaa rating to African Development Bank’s 15 billion yen senior Samurai bond due 2002 issued in Tokyo. The rating reflects the support provided by the callable capital of non-borrowing member countries, which include the U.S., Japan, Canada, West Germany and several other European nations. Moody’s said that African Development Bank’s sound lending, borrowing and liquidity policies also support the top rating grade. Reuter 24-APR-1987 09:29:16.99 money-fxdlryen switzerland RM f0848reute b f BC-SWISS-SAY-THEY-INTERV 04-24 0115 SWISS SAY THEY INTERVENED WITH BUNDESBANK AND FED ZURICH, April 24 – The Swiss National Bank bought dollars and sold yen in concerted action along with the Bundesbank and the U.S. Federal Reserve Board, a bank spokesman told Reuters. “We intervened in dollar-yen with the Bundesbank and the Fed,” he said. He declined to specify the extent of the intervention, which took place at around 1200 GMT, after reports by Frankfurt dealers the Bundesbank was in the market. The intervention failed to prevent the dollar dipping to 1.4548 Swiss francs at around 1320 GMT, close to its all-time low of 1.4510 francs set on September 26, 1978. It then steadied to 1.4560/75 francs. REUTER 24-APR-1987 09:34:21.09 money-fx uk RM f0874reute b f BC-U.K.-MONEY-MARKET-GIV 04-24 0074 U.K. MONEY MARKET GIVEN FURTHER 518 MLN STG HELP LONDON, April 24 – The Bank of England said it provided the money market with further assistance worth 518 mln stg this afternoon. It bought 349 mln stg of band one bank bills at 9-7/8 pct and 169 mln stg of band two bank bills at 9-13/16 pct. This brings its total assistance on the day to 543 mln stg compared with a liquidity shortage it has estimated at around 850 mln stg. REUTER 24-APR-1987 09:43:24.20 hoglivestock usa C L f0892reute u f BC-slaughter-guesstimate 04-24 0089 HOG AND CATTLE SLAUGHTER GUESSTIMATES CHICAGO, April 24 – Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today’s hog slaughter at about 280,000 to 287,000 head versus 257,000 week ago and 311,000 a year ago. Saturday’s hog slaughter is guesstimated at about 40,000 to 55,000 head. Cattle slaughter is guesstimated at about 121,000 to 126,000 head versus 128,000 week ago and 136,000 a year ago. Saturday’s cattle slaughter is guesstimated at about 19,000 to 35,000 head. Reuter 24-APR-1987 10:02:29.91 income usa V RM f0974reute r f BC-/U.S.-PERSONAL-INCOME 04-24 0096 U.S. PERSONAL INCOME ROSE 0.2 PCT IN MARCH WASHINGTON, April 24 – U.S. personal income rose 0.2 pct, or 5.4 billion dlrs, in March to a seasonally adjusted annual rate of 3,603.9 billion dlrs, the Commerce Department said. The increase followed an upwardly revised 1.3 pct rise in February. Earlier, the department said income rose 0.9 pct in February. Personal consumption expenditures rose 0.3 pct, or 8.9 billion dlrs, to 2,882.6 billion dlrs in March after rising a revised 2.4 pct in February instead of the previously reported 1.7 pct rise, the department said. Last month’s income gain matched a 0.2 pct rise in November and was the lowest since June when income was unchanged. The spending rise was the weakest since January’s 2.0 pct decline. The department said the slowdown in income was mainly due to a drop in subsidies to farmers. Excluding that factor, personal income rose 0.4 pct in March and 0.7 pct in February. Wages and salaries rose 7.4 billion dlrs last month after gaining 16.6 billion dlrs in February, while manufacturing payrolls declined 1.3 billion dlrs after rising 2.5 billion dlrs in February. Reuter 24-APR-1987 10:10:11.37 graincornsorghum belgiumargentinaspain ecgatt C G f1005reute u f BC-EC-TO-OFFER-ARGENTINA 04-24 0103 EC TO OFFER ARGENTINA GRAIN SALE COMPENSATION BRUSSELS, April 24 – The European Community is to offer Argentina compensation for its loss of maize and sorghum exports to Spain following Spain’s accession to the EC, EC sources said. They said the offer will be made next week in Geneva, headquarters of the General Agreement on Tariffs and Trade (GATT), and will also involve products other than cereals. They gave no further details. Argentine exports of sorghum to Spain fell to zero last year from 300,000 tonnes in 1985, while maize sales fell to 15,000 tonnes from 994,000, official EC statistics show. The sources noted that an agreement between the EC and the U.S. guarantees special access to the Spanish market for two mln tonnes of non-EC maize and 300,000 tonnes of sorghum each year for the next four years. But they said various details of this accord will tend to inhibit imports from Argentina. These include a provision for reduction of the amounts if Spain imports cereals substitutes, and the EC’s plan to import the special maize and sorghum on a regular monthly basis. Argentina tends to have exportable quantities only three or four times a year. Reuter 24-APR-1987 10:11:40.65 crudenat-gas usa F Y f1014reute r f BC-CONSOLIDATED-GAS-HIGH BIDDER ON GULF TRACTS PITTSBURGH, April 24 – Consolidated Natural Gas Co said its CNG Producing Co subsidiary, bidding alone or with partners, was the apparent high bidder on six of seven tracts it south at Wednesday’s sale of federal oil and gas leases in the Gulf of Mexico. The company said it share of the six bids totaled 6.2 mln dlrs. Its 100 pct interest bids were on three offshore tracts — West Cameron 209, 302 and 303. Consolidated has a 50 pct interest in the bid for Eugene Island 375 and Ship Shoal 128 and 129. The remaining interest in 139 is held by Sun Energy Partners , which is 96.3 pct owned by Sun Co Inc . , which is 49.7 pct owned by Allied-Signal Inc , is Consolidated’s partner on the other two tracts. Reuter 24-APR-1987 10:12:31.76 uk F f1019reute r f BC-GM,-ISUZU-IN-U.K.-TRU 04-24 0100 GM, ISUZU IN U.K. TRUCK JOINT VENTURE LONDON, April 24 – General Motors Corp’s Bedford Trucks subsidiary has signed a memorandum of understanding with its affiliate Isuzu Motors Ltd to negotiate a van manufacturing joint venture in the U.K. The proposals would involve doubling output at the loss making plant at Luton in southern England to around 40,000 vans a year by 1990. Bedford, faced with reduced demand for heavy trucks in the last few years, stopped most of its heavy truck production at the end of 1986. GM would have a 60 pct stake in the venture and Izuzu 40 pct GM holds a 38.6 pct stake in Isuzu. Bedford already has a link with Izuzu under which it assembles some smaller Japanese vehicles in Britain. A Bedford spokesman said financial details of the deal had not yet been finalised although it was anticipated that the venture would start without debt. Currently the Luton van plant was estimated to be losing some 500,000 stg a week, he added. Bedford’s other truck plant, which manufactures military vehicles and trucks in kit form for export, was not involved in the venture. Analysts said the deal was another attempt by U.K. Truck manufacturers to restructure operations and cope with heavy losses and low demand that have hit the market over the past few years. In February, state-owned Rover Group Plc formed a joint venture with for truck manufacture, with Daf owning 60 pct. Last year, Ford Motor Co’s U.K. Subsidiary formed a joint venture with Fiat SpA’s ‘s for the supply and marketing of small commercial vehicles in Britain. Reuter 24-APR-1987 10:22:39.00 iron-steel usa F f1052reute r f BC-BETHLEHEM-STEEL-CORP 04-24 0062 BETHLEHEM STEEL CORP INCREASES PRICES BETHLEHEM, Pa., April 24 – Bethlehem Steel Corp said it was raising the prices by 30 dlrs per ton on section extras on certain wide planned structural shapes. The increase will affect seven wide planned section groups and will increase the price to 500 dlrs per ton from 470 dlrs per ton, effective May 3, the company said. Reuter 24-APR-1987 10:31:44.23 crudenat-gas usa F Y f1097reute u f BC-/EXXON--NET-DROP 04-24 0090 EXXON NET DROPS ON LOWER OIL, GAS PRICES NEW YORK, April 24 – Exxon Corp reported a 37 pct drop in first quarter profits to 1.07 billion dlrs citing lower oil and gas prices. The company said profits in the lastest quarter included a 26 mln drl restructuring gain from divestment of certain gold operations overseas, while last year’s first quarter profit of 1.71 billion dlrs included the initial charge of 235 mln dlrs for its 1986 corporate reorganization. First quarter revenues were down 13 pct to 19.44 billion dlrs. One time items aside, Exxon said, its first quarter results were stronger than 1986’s final quarter which included several large asset sales and positive inventory adjustments. It said earnings per share declined 36 pct reflecting the company’s continued purchases of its own common for the treasury. During the first quarter, 5,085,000 shares were acquired at a cost of 416 mln dlrs compared with 3,132,000 in 1986’s fourth quarter. Commenting on the first quarter, Exxon said crude oil prices strengthened moderately within the quarter and were higher than a year ago at the end of the quarter. However, average crude prices for the quarter were below the year ago period, leading to lower earnings for exploration and production operations, Exxon said. Also contributing to reduced earnings were lower natural gas prices, primarily overseas, representing contract adjustments representing contract adjustments tied to falling product prices in 1986, the company said. During the first quarter, the company said, intense competition in both domestic and international markets served to depress margins for refined products. Exxon said the lower product margins resulted in significantly reduced earnings for refining and marketing operations, contrasting sharply with the unusually strong margins prevailing in the first qtr of 1986. It said savings from efforts to control costs and improve efficiency helped soften the negative impact of lower oil and natural gas prices. Exxon said earnings from chemicals and power generation activities showed consideratble improvement, remaining strong throughout the period. Reuter 24-APR-1987 10:43:35.83 sugar denmark T f1149reute d f BC-DANISH-SUGAR-BEET-PLA 04-24 0079 DANISH SUGAR BEET PLANTING BEHIND SCHEDULE COPENHAGEN, April 24 – Sugar beet planting in Denmark is about two weeks behind normal due to a severe winter and a wet spring, a spokesman for the country’s largest sugar beet concern, De Danske Sukkerfabrikker A/S, said. The weather has improved recently but very little beet has been drilled so far. “If good weather conditions continue, I think we will be sowing next week or the following week,” the spokesman said. Reuter 24-APR-1987 10:48:51.00 cpi usa V RM f1165reute b f BC-/FED-SPOKESMAN-SAYS-N 04-24 0086 FED SPOKESMAN SAYS NO NEWS CONFERENCE PLANNED WASHINGTON, April 24 – The Federal Reserve Board has no news conference or announcement planned for today, a Fed spokesman said, dispelling market rumors that a statement was pending. “No such event is scheduled or planned,” said spokesman Bob Moore. Rumors of a pending Fed announcement or news conference circulated in financial markets, following a government report that consumer prices advanced by 0.4 pct in March, suggesting a rapid rise of inflation. Reuter 24-APR-1987 10:50:18.12 acq usa F f1170reute u f BC-/TEXAS-COMMERCE- 04-24 0107 TEXAS COMMERCE HOLDERS APPROVE MERGER HOUSTON, April 24 – Texas Commerce Bancshares Inc said its shareholders approved the merger of the bank with Chemical New York Corp , moving a step closer towards creating the nation’s fourth largest bank. The company said each holder will receive 31.19 dlrs a share in cash and securities, somewhat less than the 35 dlrs to 36 dlrs a share estimated when the deal was announced on December 15, 1986. The deal is now worth 1.16 billion dlrs. The merger is still subject to approval by Chemical’s shareholders, who will vote on the deal at the company’s annual meeting on April 28. The company said 98.7 pct of the shareholders voting on the merger cast an affirmative vote. Chairman and chief executive officer Ben Love said all regulatory hurdles to the merger have been cleared, including last week’s final approval of the transaction by the U.S. comptroller of the currency. Pending approval of Chemical’s shareholders, the merger should be closed by May one, he added. The bank said the combined company will have assets of about 80 billion dlrs. Reuter 24-APR-1987 10:51:04.17 crudenat-gas usa F Y f1176reute u f BC-/PHILLIPS-

-CITES-L 04-24 0090 PHILLIPS

CITES LOWER OIL PRICES IN DECLINE BARTLESVILLE, Okla., April 24 – Phillips Petroleum Co cited lower oil and gas prices in its first quarter loss of 32 mln dlrs or 16 cts a shares compared with net income of 96 mln dlrs or 39 cts a share in the year-ago period. It also said there was a decline in crude oil production due to its recently completed asset sales program. Phillips also said it expects crude prices will continue to be soft in the second and third quarters, but will improve toward the end of the year. Phillips also said that foreign currency transaction losses in the first quarter were 10 mln dlrs compared with a gain of 46 mln dlrs in the fourth quarter of 1986 and a loss of one mln dlrs in the first quarter of 1986. Reuter 24-APR-1987 10:57:23.61 crudefuelgasnaphthajetnat-gas usavenezuela Y f1195reute u f BC-VENEZUELA-RE-ESTABLIS 04-24 0105 VENEZUELA RE-ESTABLISHES POSTED PRODUCT PRICES NEW YORK, APRIL 24 – Petroleos de Venezuela, PDVSA, the state owned oil company, has re-established posted prices for some light products and heavy fuel oil, industry sources in New York said. The return to posted prices is a sign that the market is returning to a more stable and orderly condition after a year of volatile price movements in which Venezuela ceased posting prices and moved to negotiating prices with companies. “We are in more stable market now and PDVSA has probably decided to return to postings for some products,” one industry trade source said. But there was no talk of Venezuela posting prices for crude oil which were also dropped in 1986. Posted prices were dropped in the first quarter of 1986 when prices for crude oil and products tumbled in response to OPEC’s market share strategy and netback arrangements. PDVSA has set out posted prices for several groups of light products including gasoline, naphtha, jet kerosene and distillates effective April 15 as follows. Unleaded gasoline was posted at 19.74 dlrs a barrel (47 cts a gallon) with leaded gasoline at 20.16 dlrs a barrel (48 cts a gallon). Light naphtha was posted at 17.85 dlrs a barrel (42.5 cts a gallon), full range naphtha at 19.11 dlrs a barrel (45.50 cts a gallon), and heavy naphtha at 19.53 cts a gallon (46.5 cts a gallon). Jet kerosene was posted at 18.90 dlrs a barrel, also effective April 15, or (45 cts a gallon) with dual purpose kerosene at 18.06 dlrs a barrel (43 cts a gallon). Distillates of 0.2 pct sulphur and 0.3 pct sulphur grades were posted at 18.48 dlrs a barrel (44 cts a gallon), each with 0.5 pct sulphur 18.08 dlrs a barrel (43.05 cts a gallon). LPG postings, also effective from April 15, were made as follows, propane 175 dlrs a tonne (33.33 cts a gallon), butane 210 dlrs a tonne (46.26 cts a gallon) and isobutane at 240 dlrs a tonne. Heavy fuel products were given a posted price effective April 10 and ranged from 0.3 pct sulphur at 19.35 dlrs a barrel to 17.21 dlrs a barrel for 2.8 pct sulphur. Heavy fuel postings are also referred to as minimum export prices. Reuter 24-APR-1987 11:09:38.67 heat usa Y f1265reute u f BC-EXXON--RAISES-HE 04-24 0064 EXXON RAISES HEATING OIL PRICE, TRADERS SAID NEW YORK, April 24 – Oil traders in the New York area said Exxon Corp’s Exxon U.S.A. subsidiary raised the price it charges contract barge customers for heating oil in the New York harbor by 0.50 cent a gallon, effective today. They said the 0.50 cent a gallon increase brings Exxon’s contract barge price to 49.25 cts a gallon. Reuter 24-APR-1987 11:10:16.57 acq netherlandsusa F f1270reute u f BC-PHILIPS-PLANS-MEDICAL 04-24 0100 PHILIPS PLANS MEDICAL JOINT VENTURE WITH GEC EINDHOVEN, Netherlands, April 24 – NV Philips Gloeilampenfabrieken and General Electric Co Plc are planning a 50-50 joint venture in the medical equipment field, Philips announced. The venture will group all the medical systems of the two companies, combining GEC’s Ohio-based medical division Picker International with Philips’ medical division in a new U.S.-based subsidiary. Picker employs 6,000 people worldwide and has production and distribution facilities in North America, Britain, West Germany, the Caribbean and Japan. Picker’s turnover in the year ending March 31, 1986 totalled 612 mln dlrs, according to Philips. Philips’ own medical systems activities, currently part of its Professional Products and Systems division, with headquarters in the Dutch town of Brest near Eindhoven, has production facilities in the U.S., West Germany, France, Italy and Britain as well as in the Netherlands. Its 1986 turnover was 2.82 billion guilders. Philips said GEC was planning substantial additional investment in the project to bring its share to 50 pct. “The new company will be a vigorous competitor in all the important areas in the world, with matching distribution networks and other facilities capable of meeting the needs of rapidly advancing technology in medical systems,” Philips said. Dutch corporate analysts said the merger will create the world’s second biggest company specialised in medical technology after U.S. General Electric Co . The new company should start operations in the second half of this year, a Philips spokesman said. Reuter 24-APR-1987 11:10:37.74 canadasouth-korea E F f1273reute r f BC-hyundai 04-24 0081 HYUNDAI AUTO CANADA TO RECALL 126,524 CARS TORONTO, April 24 – Hyundai Auto Canada Inc, wholly owned by the South Korean concern, said it recalled 126,524 cars for inspection of a mechanism that may cause the hood to open without warning while the vehicle is in motion. The company said the voluntary recall affects Hyundai Pony cars sold in Canada and produced before Dec 4, 1986. Hyundai models sold in the United States and other countries are not affected by the recall. Reuter 24-APR-1987 11:19:05.03 palm-oilveg-oil ukindia G f1313reute b f BC-TRADERS-CONFIRM-SOME 04-24 0083 TRADERS CONFIRM SOME INDIAN PALM OLEIN PURCHASES LONDON, April 24 – Traders said the Indian State Trading Corporation (STC) bought three 6,000 tonne cargoes of refined bleached deodorised palm olein at its import tender today. They also said the STC is still in the market and additional business may be concluded over the weekend. The confirmed business comprised two cargoes of rbd olein for June shipment at 351.50 dlrs per tonne and one July at 352 dlrs cif, all on 30 pct counter trade. Reuter 24-APR-1987 11:20:56.30 bopipitrade zimbabwe RM f1322reute r f BC-ZIMBABWE-BANKING-CORP 04-24 0113 ZIMBABWE BANKING CORP URGES POLICY REFORM HARARE, April 24 – A range of substantial policy initiatives need to be implemented to shift resources from consumption to production in the Zimbabwe economy, says the Zimbabwe Banking Corporation (ZBC) in its quarterly economic review. The state owned banking group says although Zimbabwe’s balance of payments improved significantly last year the underlying position deteriorated. Last year’s improved trade surplus was partly the result of sales of stockpiled gold and continued import restraint. It says debt service charges are projected to exceed 35 pct of exports in 1987 and warns against squeezing imports further. ZBC says mining industry import quotas for the first six months of 1987 have been halved and those for manufacturing industry cut by a third. It contrasts the performance of manufacturing industry in 1967 to 1974, with that since independence in 1980. Industrial production almost doubled between 1967 and 1974, when foreign currency allocations almost trebled in real terms. Since 1980, import allocations have been cut 45 pct and the Zimbabwe dollar has depreciated by more than 60 pct. As a result the bank says the external purchasing power of foreign currency allocations is currently only 20 pct of its 1980 levels. REUTER 24-APR-1987 11:22:35.11 canada E F f1328reute u f BC-CANADA-STOCK-PURCHASE 04-24 0091 CANADA STOCK PURCHASES BY FOREIGNERS SOAR OTTAWA, April 24 – Foreign investors purchased, on a net basis, a record one billion dlrs of Canadian stocks in February, more than the total for all of 1986, Statistics Canada said. U.S. residents continued to be the largest investor, with purchases doubling from the previous month to more than 800 mln dlrs. Net sales of outstanding Canadian bonds to Japan, however, amounted to 679 mln dlrs in February, which, on average, was about 500 mln less than in each of the four previous months. Reuter 24-APR-1987 11:31:18.91 crudenat-gas usa F Y f1358reute h f BC-NOBLE--SUBMITS-H 04-24 0068 NOBLE SUBMITS HIGH BID FOR TRACT ARDMORE, Okla., April 24 – Noble Affiliates Inc said it submitted the high bid for six tracts at the Central Gulf of Mexico sale on April 22. It said its exploration and production subsidiary, Samedan Oil Corp, participated in the high bid for the following tracts, West Cameron 296, East Cameron 296, Vermilion 266, Ship Shoal 350, Main Pass 90 and Main Pass 100. Reuter 24-APR-1987 11:39:16.40 leadzinc canada E F f1395reute r f BC-COMINCO--B.C.-WO 04-24 0086 COMINCO B.C. WORKERS AUTHORIZE STRIKE TRAIL, British Columbia, April 24 – Cominco Ltd’s 3,200 unionized workers at its Trail and Kimberley, British Columbia lead-zinc operations voted 94 pct in favor of authorizing a possible strike, the union said in reply to an inquiry. Their two-year contracts expire on April 30. A spokesman for the United Steelworkers of America, which represents the workers, reiterated that private mediation talks are set for Monday and that no strike date had been set. The union has said it is asking for a three pct wage hike in each year of a proposed two-year contract, while Cominco has offered a 40 ct an hour increase in the third year of a proposed contract if workers agree to loosen rules on job classifications. The average unionized worker’s wage is now about 14.78 dlrs an hour. Cominco’s Trail operations produced 240,000 long tons of zinc and 110,000 long tons of lead in 1986. The Sullivan mine at Kimberley produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. Reuter 24-APR-1987 11:40:48.73 acqcrude ukusa F f1404reute d f BC-PETRANOL-IN-TAKEOVER 04-24 0117 PETRANOL IN TAKEOVER TALKS WITH PERRODO GROUP LONDON, April 25 – said it was discussing the takeover of an unnamed company owned by Frenchman Hubert Perrodo in exchange for Perrodo taking a 51 pct stake in Petranol. It said in a statement the assets of the company to be acquired included a “substantial interest” in an unspecified oil field in Torrance, California, and five mln dlrs in cash. Funding commitments for Petranol, both in respect of the Californian oil field and Petranol’s existing U.S. Assets, would be included in the agreement. Petranol said the deal would enhance its presence in the U.S., Increase its capital and secure the availability of development cash. Reuter 24-APR-1987 11:41:34.25 canada F f1410reute d f BC-HAGENSBORG-RESOURCES 04-24 0100 HAGENSBORG RESOURCES RAISES SEVEN MLN VANCOUVER, British Columbia, April 24 – Hagensborg Resources Ltd said it will receive a seven mln dlrs Canadian line of credit from the Bank of Novia Scotia to develop a salmon farming operation. The company said the funds will be used to complete construction of the land-based operation at Nanaimo in British Columbia. Details of the credit line are being finalized with the Bank of Novia Scotia with the financing to be fully guaranteed by Norway-based Den Norske Creditbank and the Norwegian Guarantee Institute for Export Credit, it added. Reuter 24-APR-1987 11:46:50.46 usamorocco worldbank A RM f1432reute r f BC-WORLD-BANK-LOANS-MORO 04-24 0098 WORLD BANK LOANS MOROCCO 125 MLN DLRS WASHINGTON, April 24 – The World Bank said it will provide Morocco a 125 mln dlr loan for a project intended to improve, expand and modernize its telecommunications network. The Bank said the project expects to satisfy about 80 pct of the demand for telephone service and the 100 pct of the demand for telex service by 1994. The total cost of the project is 647.5 mln dlrs, with the Office National des Postes et Telecommunications du Maroc providing 359.6 mln dlrs and bilateral sources expected to provide 189.9 mln dlrs, the Bank said. REUTER 24-APR-1987 11:48:52.59 earn usa F f1439reute r f BC-JIM-WALTER--APRO 04-24 0104 JIM WALTER APROVES STOCK SPLIT TAMPA, Fla., April 24 – Jim Walter Corp said its board approved a 5-for-4 stock split in the form of a 25 pct stock dividend to be distributed July 12 to stockholders of record June 15. It also said its board approved a regular quarterly cash dividend of 35 cts a share on its pre-split common, payable July one to holders of record June 15. The current dividend is equal to 28 cts on the common outstanding after the split. The company said it plans to increase the quarterly cash dividend on the post-split shares by seven pct to 30 cts beginning with the October one payment. Reuter 24-APR-1987 11:50:02.02 usa A f1448reute r f BC-BANK-BOARD-CHAIRMAN-S 04-24 0105 BANK BOARD CHAIRMAN SAYS MORE FSLIC FUNDS NEEDED WASHINGTON, April 24 – Federal Home Loan Bank Board chairman Edwin Gray said pending bills do not provide enough money for the Federal Savings and Loan Insurance Corp to deal with insolvent thrift associations. The Senate has passed a bill to provide 7.5 billion dlrs in FSLIC recapitalization, while the House Banking Committee has approved five billion dlrs in new funds. “We are operating right now on net operating losses of four billion dlrs a year. That’s double last year. We think it’s going to increase,” Gray told a Senate Appropriations subcommittee hearing. “The FSLIC is insolvent under generally accepted accounting procedures and it lacks the financial resources to cost-effectively resolve its caseload of insolvent institutions,” Gray said. Gray said FSLIC now had 191 cases and the number was expected to increase. He said the gap between the 80 pct of healthy savings associations and the other 20 pct of thrifts grew in 1986. Banking committee chairman William Proxmire, D-Wis, told Gray he supported more recapitalization, but other members did not want to impose a greater burden on healthy thrifts. Reuter 24-APR-1987 11:56:05.90 acq usa F f1469reute r f BC-SIERRA-HEALTH 04-24 0082 INVESTOR HAS 5.1 PCT OF SIERRA HEALTH WASHINGTON, April 24 – Peter Lin, a Montebello, Calif., physician, told the Securities and Exchange Commission he has acquired 285,000 shares of Sierra Health Services Inc, or 5.1 pct of the total outstanding common stock. Lin said he bought the stock for about 1.7 mln dlrs solely for investment purposes. Although he said he may buy more stock in Sierra Health Services, Lin said he has no intention of seeking control of the company. Reuter 24-APR-1987 11:57:12.23 usa F f1476reute r f BC-GM-,-TOYOTA-JOINT 04-24 0094 GM , TOYOTA JOINT VENTURE CUTS PRODUCTION FREMONT, Calif., April 24 – New United Motor Manufacturing Inc, a joint venture formed by General Motors Corp and Toyota Motor Corp, said it plans to cut production at its automaking facility here because of lower than anticipated sales. The company said production will be reduced to about 750 vehicles per day from the current rate of 800 per day, effective May 18. It said there will be no layoffs because of the cutbacks, but the lower production schedule will be in effect throughout the 1987 model year. GM and Toyota produce the Chevrolet Nova at the joint-venture plant, which began production in December, 1984. Reuter 24-APR-1987 12:02:57.56 ship iraqiran RM f1502reute u f BC-IRAQ-SAYS-IT-HIT-TWO 04-24 0097 IRAQ SAYS IT HIT TWO SHIPS IN GULF, DOWNS IRAN F-4 BAGHDAD, April 24 – Iraq said its warplanes attacked two large naval targets — Baghdad’s usual term for oil tankers or merchant ships — in the Gulf today. A military spokesman said the planes scored accurate and effective hits in both attacks. There was no immediate confirmation of the raids from independent shipping sources in the region. The spokesman said during one of the attacks, Iraqi planes intercepted an Iranian F-4 Phantom and shot it down. All Iraqi warplanes returned safely to base, he added. REUTER 24-APR-1987 12:04:49.88 coppernickel usa C M f1510reute u f BC-U.S.-MINT-ANNOUNCES-C 04-24 0094 U.S. MINT ANNOUNCES COPPER/NICKEL AWARDS WASHINGTON, April 24 – The U.S. Mint said it awarded contracts to Philipp Brothers, N.Y., and Sidney Danziger, a New York metals merchant, to procure 3,701,000 lbs of electrolytic copper and 629,000 lbs electrolytic cut nickel cathodes or briquettes. The Mint said Philipp Brothers will supply the entire 3,701,000 lbs of copper at a cost of 0.66845 dlrs per lb. Sidney Danziger will furnish 338,000 lbs of the nickel at 1.8344 dlrs per lb, while Phibro will provide 291,000 lbs at 1.8369 dlrs per lb, the Mint said. Reuter 24-APR-1987 12:07:15.93 bopgnp west-germanyusa bangemann RM f1531reute u f BC-GERMAN-GROWTH-WILL-NO 04-24 0119 GERMAN GROWTH WILL NOT CUT U.S. DEFICIT -BANGEMANN BONN, April 24 – Economics Minister Martin Bangemann, who flies to Washington this weekend for high level talks, said boosting West German economic growth would not have any significant effect on the high U.S. Current account deficit. In a paper prepared ahead of his trip, Bangemann said Bonn’s trading partners had been asking whether West German growth was slowing and whether the Federal Republic should not in the future pursue more strongly expansionary policies. In the paper Bangemann wrote, “It is not possible to reduce the U.S. Current account deficit by any signficant amount just through more stimulation of the West German economy.” One U.S. Administration policy maker said in Washington this week that the United States government wanted West Germany and Japan to reduce their interest rates even further to stimulate their economies. Bangemann said it was clear the high mark, as well as uncertainty about further currency developments, was making companies here cautious about production plans and investments. While West Germany did not seek exchange rates which unilaterally favoured its exports, it favoured more stability and realistic rates, which corresponded to “fundamentals.” He welcomed the February “Louvre Agreement” of six industrial nations to stabilise currencies and said, “(We) expect all parties to hold by the accords struck there.” West Germany had fulfilled its pledge of boosting planned tax cuts, he noted. Despite calls for lower interest rates, Bundesbank Vice-President Helmut Schlesinger has hinted that central bank policy may even have to be tightened. He wrote in a newspaper article published yesterday that the Bundesbank’s current accommodative stance could not continue in the long term. During his trip to Washington, which runs from April 26 to 29, Bangemann will meet Secretary of State George Shultz, trade envoy Clayton Yeutter, World Bank President Barber Conable, IMF Managing Director Michel Camdessus and Paul Volcker, Chairman of the Federal Reserve Board. REUTER 24-APR-1987 12:07:42.60 usa F Y f1534reute r f BC-PHIBRO-ENERGY-CHAIRMA 04-24 0086 PHIBRO ENERGY CHAIRMAN SAID TO HAVE RESIGNED New York, April 24 – Thomas O’Malley, Chairman of Phibro Energy, a subsidiary of Salomon Bros Inc , has left the company to form his own oil trading firm because of unhappiness with the current arrangement between Salomon Brothers and Phibro Energy, industry sources said. Earlier he resigned as a Director and Vice Chairman of Salomon Inc. A Salomon spokesman did not deny that O’Malley had left the company but offered no further comments at this time. Al Kaplan, another former Phibro Energy executive, will join the new business, the sources said. The new company, Argus Energy, is located in Stamford, Conn., and will begin active trading in June of this year. Reuter 24-APR-1987 12:09:23.59 usa F A f1546reute r f BC-FARM-CREDIT-SEEN-NEED 04-24 0078 FARM CREDIT SEEN NEEDING UP TO 4.5 BILLION DLRS WASHINGTON, April 24 – The Farm Credit System will need 3-4.5 billion dlrs in federal assistance to cover losses over the next three years, a member of the board of the System’s regulatory agency said. Jim Billington, member of the three-person board of directors of the Farm Credit Administration, said he intended to ask the board on May 5 to vote to certify that the ailing farm lending network needs federal aid. Billington, the sole Democrat on the board, said the System would need federal aid sooner than suggested by a FCA report, which said assistance would be required by the end of 1987. “I would say the System will require outside financial assistance possibly by July 1 if System districts don’t lend unsecured credit to one another to meet collateral problems,” he said. FCA officials today disclosed that efforts by the System’s districts to reach a collateral-sharing agreement has been suspended. Reuter 24-APR-1987 12:18:34.57 acqgold usacanada F E f1595reute r f BC-ABM-GOLD-TO-RAISE-INT 04-24 0109 ABM GOLD TO RAISE INTERESTS IN CANADA COMPANIES NEW YORK, April 24 – ABM Gold Corp will use the proceeds of an initial public offering of seven mln shares of stock at 10 dlrs a share to increase its interest in three Canadian companies, said co-managing underwriters PaineWebber Inc and Advest Inc. ABM Gold manages and develops properties of Sonora Gold Corp , Goldenbell Resources Inc , United Gold Corp and Inca Resources Inc . Proceeds will be used to raise its stake in Sonora, buy a 15 pct interest in the net profits of Sonora’s Jamestown mine, and buy capital stock of Goldenball and United, they said. ABM Gold explores, acquires and develops gold properties in California, and also processes gold-bearing ore into gold bullion. The co-managing underwriters said they are selling 3.5 mln shares in the U.S. and Canada, while an interational offering will be managed by PaineWebber International. The underwriters have been granted an option to buy up to an additional 105,000 shares to cover over-allotments. Reuter 24-APR-1987 12:22:42.86 sugar west-germanyussrfrance T f1621reute u f BC-EUROPEAN-BEET-SOWINGS 04-24 0120 EUROPEAN BEET SOWINGS CATCH UP, USSR DELAYED RATZEBURG, April 24 – Fine weather throughout Europe allowed farmers to make good progress with sugar beet sowings during the period April 16-21, but conditions in the Soviet Union remained unfavourable, West German analyst F.O. Licht said. With daytime temperatures in parts of Europe exceeding 20 degrees centigrade Licht said sowings have been boosted and may be completed in most countries by the end of the month. In France the beet growers’ association said the entire crop could be sown within a week if the good weather persists. Sowings this year will still be behind 1986 but Licht noted that good results have often been produced from late-sown crops. In the Soviet Union, however, most beet-growing regions still had cool weather with night frosts. Only in the western Ukraine was it warm enough to permit sowings, Licht said. Sowings in the USSR will consequently be much later than last year when one mln hectares had already been drilled by mid-April. Reuter 24-APR-1987 12:25:23.51 usa F f1636reute r f BC-FERRO--INCREASES 04-24 0061 FERRO INCREASES SHARES CLEVELAND, Ohio, APril 24 – Ferro Corp said shareholders approved increasing the number of authorized common shares to 50 mln from 20 mln. Shareholders also approved amending the indemnification provisions of the Code of Regulations of the company and re-elected three directors to three-year terms on the board of directors. Reuter 24-APR-1987 12:26:00.70 gas usa F Y f1640reute r f BC-AMOCO--TO-SUPPLY 04-24 0086 AMOCO TO SUPPLY LEADED GAS TO FARMERS CHICAGO, April 24 – Amoco Oil Co said it will continue to sell leaded gasoline to farmers in certain portions of the midwest as long as there is sufficient demand for the product. “It appears that the agricultural community will need limited amounts of leaded gasoline for certain types of equipment until an acceptable alternative is found,” the company said. Amoco previously announced it would sell all lead-free gasoline to motorists at its service stations. Reuter 24-APR-1987 12:28:16.49 money-fxdlrtrade usajapan james-baker V RM f1651reute b f BC-/BAKER-SAYS-G-7-WANTS 04-24 0096 BAKER SAYS G-7 WANTS TO HALT DOLLAR FALL WASHINGTON, April 24 – Treasury Secretary James Baker said the Group of Seven leading industrial nations is fully committed to halting a further decline in the dollar. “Let me emphasize that all seven major industrial nations remain fully committed to strengthening policy coordination, promoting growth and cooperating to foster stability of exchange rates,” he told the American Enterprise Institute. “We all believe a further decline of the dollar could be counter productive to our efforts (to promote growth),” he said. Baker also said that after meeting Japanese special envy Shintaro Abe, “it’s clear that Japan intends to take strong steps to stimulate its economy to meet its committments under the Louvre Accord.” Baker said in the past two years he has worked to promote greater coordination of economic policies and important progress has been made. “Substantial exchange rate adjustments have also been accomplished over the past two years so that today we are better positioned to promote growth and reduce external imbalances,” he said. Baker pointed out that in February the seven agreed to foster stable exchange rates and those commitments were renewed recently. In a speech largely devoted to discussing trade and competitiveness, Baker again warned of the dangers of protectionist trade legislation, saying it would harm the U.S. standard of living. Baker stressed adminstration trade policy sought to remove foreign barriers to trade and via forthcoming GATT talks will focus on agriculture, services and intellectual property. The Treasury Secretary said that as well as trade issues he had to focus on macroeconomic issues as well which encompass the trade picture. “The world economy today is really one constantly flowing circle of capital and goods. Trade accounts catch and measure that flow at only one spot on the circle,” he said. Reuter 24-APR-1987 12:28:56.31 acq canada E F f1655reute r f BC-ELDERS-ACQUIRES-95-PC 04-24 0059 ELDERS ACQUIRES 95 PCT OF CARLING TORONTO, April 24 – , of Australia, said it acquired 20.8 mln or 95 pct of Carling O’Keefe Ltd common shares under its previously announced tender offer that expired yesterday. Investment Canada said earlier this week it approved Elders’s takeover of Carling, Canada’s third largest brewery. Reuter 24-APR-1987 12:30:46.85 cpi usa C G L M T f1661reute u f BC-WHITE-HOUSE-SAYS-MARC 04-24 0111 WHITE HOUSE SAYS MARCH CPI “NO CAUSE FOR ALARM” WASHINGTON, April 24 – The White House said last month’s 0.4 per cent in increase in the CPI, the third sharp rise in three months and one that brought the annual inflation rate to 6.2 pct so far this year, was no cause for alarm. “While this is something to watch, it’s not something to be alarmed about,” said spokesman Marlin Fitzwater. He said the three month increase in inflation was due almost entirely to higher energy prices. Fitzwater said once an OPEC price hike is “passed through the system,” the nation should see a slowing of the inflation rate to the administration’s 3.8 pct 1987 forecast. REUTER 24-APR-1987 12:36:47.82 ipi usa F A RM f1702reute r f BC-U.S.-PRODUCTIVITY-REP 04-24 0065 U.S. PRODUCTIVITY REPORT RESCHEDULED TO MAY 4 WASHINGTON, April 24 – The Labor Department said it rescheduled the release of the first-quarter nonfarm productivity report to May 4 at 1000 EDT (1400 GMT) from April 27. The delay was necessary because the Commerce Department moved back release of national income and product data used by the Labor Department to compute productivity. Reuter 24-APR-1987 12:41:07.11 usa F f1716reute u f BC-SEARS--RESTRUCTURE 04-24 0081 SEARS RESTRUCTURES BUSINESS SYSTEMS CENTERS CHICAGO, April 24 – Sears Roebuck and Co said it will restructure its business systems centers, which sell computer systems. The restructuring reflects the changing personal computer market, Sears said. Sears will consolidate 41 business systems center outlets in markets where it has more than one sales facility. Sales and support staffs will remain intact and will report to a single location in most metropolitan areas. When the consolidation is complete, Sears will operate 59 computer centers in 51 markets nationwide. Some 31 markets with single sales offices will not be affected. “We no longer need as many sales locations in each market because our sales organization will be calling directly upon our customers at their places of business,” explained John H. Rollins, national manager of Sears Business Systems Centers. Reuter 24-APR-1987 12:43:46.43 oilseedsunseedveg-oilsun-oil spain ec G C f1728reute u f BC-SPANISH-SUNOIL-EXPORT 04-24 0095 SPANISH SUNOIL EXPORTERS SEEK SEED CLEARANCE MADRID, April 24 – Spanish exporters are asking the government to clear 33,200 tonnes of sunflower seed authorised for export by the European Community (EC), a spokesman for one of Spain’s major sunflower oil producers said. He told Reuters in a telephone interview the government was holding back on authorisation to hold prices low. “They are deliberately keeping prices down to help meet this year’s inflation target despite the threat of a surplus on what looks like a bigger harvest than we expected,” he said. He said the policy of allowing stocks to accumulate had caused a price drop, with raw oil prices falling to 147 pesetas a kilo from 160 at the start of the 1986/87 marketing year ending July 31. Sunflower oil output was expected to rise to 370,000 tonnes this year from 340,000 last year, with seed output up at 905,000 tonnes from 860,000 last year. He said domestic consumption was falling due to imports of other edible oils. “We estimate demand at 296,000 tonnes this year, leaving a 124,000 tonne surplus with the 50,000 tonnes now stockpiled,” he said. “If we discount 24,000 tonnes held for strategic purposes, this still leaves us with 100,000 tonnes.” Reuter 24-APR-1987 12:43:50.14 oilseedrapeseed japancanada C G f1729reute u f BC-JAPAN-BUYS-UP-TO-8,00 04-24 0039 JAPAN BUYS UP TO 8,000 TONNES CANADIAN RAPESEED WINNIPEG, April 24 – Japanese crushers bought 5,000 to 8,000 tonnes of Canadian rapeseed for last-half May/first-half June shipment, trade sources said. Price details were not available. Reuter 24-APR-1987 12:46:35.95 usa F Y f1739reute u f BC-CORRECTION—PHIBRO-E 04-24 0067 CORRECTION – PHIBRO ENERGY CHAIRMAN In New York story headlined “Phibro Energy chairman said to have resigned,” please read in headline “Former Phibro Energy Chariman Starts New company” and first paragraph: Thomas O’Malley, former chairman and chief executive officer of Phibro Energy, a subsidiary of Salomon Bros. Inc., has formed a oil trading company. (clarifies that O’Malley was former chairman) 24-APR-1987 12:49:58.10 acq usa F f1751reute d f BC-CONTINENTAL- 04-24 0109 CONTINENTAL BOARD CONSIDERS SUIT MECHANICSBURG, Pa, April 24 – Continental Medical Systems Inc said its board met to consider the allegations in the derivative action filed by Continental Care Group and that officers named as defendants believe it to be totally without merit is likely to be dismissed in Maryland Federal court. Continental Medical has sued Continental Care Group for over 5 mln dlrs for breach of a contract calling for it to buy 12 nursing homes from Continental Care. Yesterday, Continental Care filed a derivative action against Continental Medical charging it with fraud and misrepresentation of fiduciary duties. Reuter 24-APR-1987 12:54:36.57 crudenat-gasgaspet-chem usa F Y f1767reute u f BC-/SHELL-OIL-FIRST-QUAR 04-24 0099 SHELL OIL FIRST QUARTER NET DROPS 61 PCT HOUSTON, April 24 – Shell Oil Co said first quarter net income dropped 61 pct over the prior-year quarter on revenues that slipped four pct. “Lower prices for crude oil and natural gas and reduced margins in our oil and chemical products businesses were the major factor for the earings decline,” John F. Bookout, president, said in a statement. For the quarter, the company, a unit of Royal Dutch/Shell Group , earned 108 mln dlrs on sales of 4.50 billion dlrs, compared with 276 mln dlrs on sales of 4.67 billion dlrs a year ago. Bookout said the company is cautiously optimistic oil markets will be less volatile in coming months than they were in 1986. “In coming months, oil products results should benefit from seasonally higher gasoline volumes,” he said. “However, so long as U.S. product inventories remain high, it may be difficult to fully recover from the depressed margins of recent periods,” he added. Bookout said the company’s chemical products earnings should benefit from strong performances in chemical sales volumes and continued high industry operating rates. Shell said its oil and gas exploration and product segment earned 110 mln dlrs for the quarter vs 91 mln dlrs in 1986. It said earnings were hurt by lower selling prices for crude oil, natural gas and natural gas liquids. Domestic crude oil prices averaged 14.24 dlrs a barrel, compared with 19.28 dlrs last year, while natural gas prices dropped 24 pct, Shell said. Shell said earnings at its oil products segment plunged by 53 mln dlrs, to eight mln dlrs. It said lower refined product selling prices were only partially offset by reduced raw material costs. The company said earnings from chemical products also fell sharply, to 40 mln dlrs from 72 mln dlrs, due mainly to lower margins, especially in commodity chemicals, coupled with its pullout from the agricultural chemicals business in October 1986. Shell said capital and exploratory outlays totaled 500 mln dlrs for the quarter, off from 645 mln dlrs. Reuter 24-APR-1987 12:56:25.76 ethiopia uneca RM f1774reute r f BC-AFRICAN-GOVERNMENTS-C 04-24 0110 AFRICAN GOVERNMENTS COMPLY ON RECOVERY PROGRAMMES ADDIS ABABA, April 24 – A majority of 31 African countries replying to a questionnaire had carried out economic reforms recommended in United Nations and Organisation of African Unity (OAU) recovery programmes, Adebayo Adedji, Executive Secretary of the U.N.’s Economic Commission for Africa said. He told African planning and economy ministers that the questionnaires, distributed by the Economic Commission to monitor the programmes, showed that 25 of the 31 countries had taken steps to increase foreign aid. The same number had improved the investment climate in their countries, he said. Twenty-two had made structural adjustments to their economies, 22 had taken measures to promote exports and five had carried out an “overall economic rehabilitation,” he added. The main thrust of the recovery programmes was to encourage agriculture by giving farmers greater incentives to produce. The OAU plan envisaged investment of 128 billion dlrs in all 50 African countries over the next five years. Foreign donors were expected to contribute 46 billion dlrs. Nineteen out of 50 African governments have failed to answer the questionnaire, he said. REUTER 24-APR-1987 13:06:58.68 veg-oil usa C G f1810reute u f BC-ASCS-SEEKS-12.5-MLN-P 04-24 0062 ASCS SEEKS 12.5 MLN POUNDS VEG OIL FOR EXPORT CHICAGO, April 24 – The Agricultural Stabilization and Conservation Service (ASCS) is seeking 12.5 mln pounds of vegetable oil for export June 6-20 and June 21/July 5, an ASCS official said. Offers must be received at the Kansas City Commodity Office by 1430 CDT May 4, and successful offerors will be notified May 5. reuter 24-APR-1987 13:07:35.68 money-fxdlryen usa james-baker V RM f1813reute u f BC-TREASURY’S-BAKER—G- 04-24 0109 TREASURY’S BAKER – G-7 OPPOSE FURTHER DLR DROP WASHINGTON, April 24 – Treasury Secretary James Baker said the Group of Seven countries, in seeking to foster stability in exchange markets, believe a further decline in the value of the dollar would be counterproductive. In answer to questions by a business group, Baker said that for one thing further reductions could make it economically difficult for the surplus countries to grow, thereby making it difficult for them to purchase overseas goods. In addition, Baker said he was opposed to the U.S. selling a yen denominated bond arguing that such a move might send the wrong signal to markets. Reuter 24-APR-1987 13:08:14.57 west-germany RM f1818reute u f BC-GERMAN-BANKS-FACE-DIS 04-24 0109 GERMAN BANKS FACE DISRUPTION AFTER TALKS COLLAPSE DUESSELDORF, April 24 – West German banks face disruption from strike ballots and selective strikes after the breakdown of talks on wages and working hours, the German Employees Union, DAG, and the Commerce, Banking and Insurance Union, HBV, said. But the chairman of the bank employers’ federation, Horst Burgard, told reporters in Frankfurt he hoped the two sides would reach agreement after a pause for thought. DAG chief negotiator Gerhard Renner said the employers’ offer to resume talks was farcical as long as they refused to remove the issue of flexible working hours from the talks. Both sides agreed there was now little point in top level negotiations similar to those held in the engineering industry which resolved a dispute on working hours. Renner and HBV chief negotiator Lorenz Schwegler said they were prepared to compromise on the issue of flexible working hours, but this subject should not be included in the wage negotiations for the 380,000 bank employees. Burgard, also management board member of Deutsche Bank AG, said the employers sought acceptance of more flexible hours on an unchanged 40 hour week in the negotiations. The employers have unilaterally imposed a 3.6 pct pay rise backdated to March 1, with the collapse of the talks. The HBV is seeking a six pct rise and DAG a 6.5 pct increase. Schwegler said the unions would react to the collapse of the talks with protest and warning strikes. Union officials would resist overtime and attempts to introduce flexible hours. Next week the unions will set strike ballots aiming at strikes in sensitive areas such as bank computer and bourse data centres. The unions only account for some 25 pct of bank employees. DAG will seek support from its members in the Bundesbank who are not directly affected by the negotiations. REUTER 24-APR-1987 13:09:16.09 sugar ukwest-germany ec C T f1825reute u f BC-GERMAN-INTERVENTION-S 04-24 0120 GERMAN INTERVENTION SUGAR FOR EXPORT – LDN TRADE LONDON, April 24 – The most likely reason for West German producers withdrawing white sugar from intervention stores is that they already have, or are reasonably certain of, obtaining European Community (EC) export licences for it, traders said. They were responding to EC Commission sources in Brussels saying West German producers have withdrawn most of the 79,250 tonnes of the sugar they put into intervention on April 1. The traders said it is also likely that French producers, who put over 700,000 tonnes into intervention, will withdraw a significant proportion of this for the same reason before they are due to accept payment for the sugar in early May. Earlier this week traders said the stepping up of the level of export licences being granted by the EC at recent tenders, with generous subsidies, had been due to producer threats to leave the sugar in intervention and to a desire to move most of the old crop sugar before the new crop tenders start in May. The EC has so far granted licences for 2,467,970 tonnes out of around 3.1 mln tonnes targetted for export in the 1986/87 series of tenders. This would indicate the likelihood of high tonnages continuing to be moved over the next few tenders and subsidies also remaining high in order to attract producer bids for the export licences, traders said. Reuter 24-APR-1987 13:17:09.30 money-fxbopcoffee uganda RM f1875reute r f BC-UGANDAN-GOVERNMENT-PR 04-24 0100 UGANDAN GOVERNMENT PROPOSES NEW TAXES KAMPALA, April 24 – The Ugandan government, in its four year investment and development plan, proposed taxing land and food crops in an attempt to broaden its revenue base away from dependence on coffee sales. The government also said in the plan, made available to Reuters, that a devaluation of the Ugandan shilling would do little to redress a chronic balance of payments deficit. The plan, the first since President Yoweri Museveni took power 15 months ago, seeks to raise 2.4 billion dlrs in investment funds from abroad between 1987 and 1991. It says the government had already secured 1.4 billion dlrs in pledges before Islamic lenders promised a further 494 mln dlrs at a conference in Kampala last week. Uganda already had an external debt of 984 mln dlrs at the end of 1986 and in the nine months of the current budget debt servicing will cost 204 mln dlrs, almost 50 pct of export earnings of 431 mln, the plan said. The new fiscal measures include a proposed tax on large land holdings, regardless of whether the owners are exploiting them, and taxes on maize, beans and other crops sold by the Produce Marketing Board. The plan says the aim is to spread the tax burden, which in Uganda has traditionally fallen almost exclusively on coffee farmers. Coffee provides over 90 pct of foreign exchange earnings and more than 70 pct of government revenue. On exchange rate policy, it repeats Museveni’s argument that any form of fotation would not help allocating resources. Western governments and multilateral funds say the Ugandan shilling is grossly overvalued and the government must change the exchange rate if it wishes to encourage investment. The shilling sells on the black market at more than 15,000 to the dollar, compared with an official rate of 1,400. REUTER 24-APR-1987 13:17:50.07 silver mexicoperu del-mazomancera-aguayo F A f1879reute u f BC-no-mexican-reaction-t 04-24 0105 NO MEXICO REACTION TO PERU SILVER TALKS PROPOSAL Mexico city, april 24 – mexico’s minister of energy and mines, alfredo del mazo, has yet to reply to a peruvian invitation for ministerial-level talks on bilateral cooperation in silver marketing, a ministry spokesman said. Peruvian officials said they extended the invitation earlier this week and that it was possible the talks could be held within the next 15 days. Meanwhile, a banco de mexico spokesman confirmed that mexican central bank head miguel mancera aguayo held private talks here yesterday with the president of the peruvian central bank leonel figueroa. Reuter 24-APR-1987 13:30:20.65 gnpjobscpi jamaica A RM f1919reute u f BC-seaga-presents-growth 04-24 0101 SEAGA PRESENTS GROWTH BUDGET FOR 1987 KINGSTON, Jamaica, April 24 – prime minister edward seaga last night presented a budget of 6.9 billion jamaica dlrs, the largest in the country’s history, which projects increases in capital spending and continued divestment of state companies. In a nationally televised speech to the parliament, the prime minister, who is also minister of finance, said jamaica’s gdp grew by four pct, the highest level in 15 years, while unemployment stood at 23.6 pct, down from last year’s 26 pct. Inflation, meanwhile, was 9.4 pct, as compared to 19.7 pct two years ago. Government revenues were up by 419 mln jamaica dlrs, to 4.3 billion, enough to finance the entire recurrent expenditure of 3.7 billion dlrs, with a 666 mln dlr surplus. Seaga said that with financial accounts in order, the government will proceed to reduce the country’s debt service ratio from the current level of 49 pct of gdp to 25 pct over the next five years. During this period, he said, growth would be targetted at three to four pct. The 6.9 billion dlr budget, which represents an increase of 18 pct over last year’s 5.8 billion, will be financed by borrowing of 8.868 billion dlrs and estmated revenue of 1.385 billion. Seaga said 1.835 billion of the budget will go to finance a government capital investment program. The plan, which represents a 10.3 pct increase over last year, projects greater spending on health, education, housing and infrastructure. Some 818 mln dlrs in revenue to finance the budget will come from the government’s divestment program, which seaga said will be stepped up in 1987. Reuter 24-APR-1987 13:30:26.81 gnpbop france RM f1920reute u f BC-FRANCE-REVISES-1986-G 04-24 0083 FRANCE REVISES 1986 GDP GROWTH FROM TWO TO 1.9 PCT PARIS, April 24 – France’s National Statistics Institute (INSEE) said French 1986 Gross Domestic Product (GDP) grew by 1.9 pct, after Finance Minister Edouard Balladur reported a 1986 rise of just two pct in February. France’s balance of payments surplus in goods and services rose to 53 billion francs in 1986 against 28 billion in 1985. The annual average monthly rise in retail prices was 2.7 pct in 1986 from 1985, INSEE added. REUTER 24-APR-1987 13:34:27.87 shipgraincorn usaussr C G f1936reute u f BC-SOVIET-CORN-CARGO-REJ 04-24 0121 SOVIET CORN CARGO REJECTED, RELOADING AT CHICAGO CHICAGO, April 24 – A cargo of U.S. corn for the Soviet Union was rejected and forced to be unloaded at a Chicago export elevator earlier this week after it failed to make grade, with the British vessel Broompark now being reloaded, an elevator spokesman said. The first attempt to load the ship failed when the percentage of broken kernels proved to be higher than contract specifications, he said. The Soviets traditionally refuse to take sub-grade grain at a price discount, as is the practice with many other importing nations, he added. The official estimated the reloading of the vessel with about 700,000 tonnes of corn may be completed by Tuesday, April 28. Reuter 24-APR-1987 13:39:19.71 acq usa F f1947reute u f BC-HENLEY-GROUP- 04-24 0093 HENLEY GROUP DID NOT HIRE BEAR STEARNS New York, April 24 – Henley Group said it has not hired Bear Stearns and Co in connection with Santa Fe Southern Pacific Corp , a Henley spokesman said. Traders have said in the past two sessions that it seems Bear Stearns was restricted in both Santa Fe Southern and Henley, implying that Bear Stearns may be helping Henley examine the possibility of taking over Santa Fe. “We don’t have them looking into anything, including Santa Fe,” a spokesman said, in response to questions from Reuters. Bear Stearns has declined comment. Traders said there was also speculation that Henley was a buyer of Santa Fe stock in the last two days. Henley said it does not comment on whether it is buying or selling stock in a company. Separately, Wall Street sources said the reports of Henley acquiring Santa Fe stock in recent sessions are untrue. Henley has told the securities and exchange commission that it bought about five pct of Santa Fe stock last year. Santa Fe was up earlier by more than two points. It was trading at 42, up 1/8. Reuter 24-APR-1987 13:44:27.47 interestmoney-fx finland RM f1965reute r f BC-BANK-OF-FINLAND-EASES 04-24 0102 BANK OF FINLAND EASES REFERENCE RATE RESTRICTIONS HELSINKI, April 24 – The Bank of Finland said it was reducing restrictions on the use of money market rates as reference rates for loans. The Bank would start quoting money market rates referred to as HELIBOR (Helsinki Interbank Offered Rate). Banks may henceforth use these as reference rates in their lending, it said. From May 1 the banks would be allowed, without special central bank approval, to use as a reference rate not only its base rate but also other Bank of Finland rates or the official money market rate used in market transactions. A derivative of these could also be used, the statement said. But housing loans would be excepted and their lending rate would, as formerly, be linked directly or indirectly to the Bank of Finland’s base rate. The new guidelines involve mainly two changes. Money market rates in future would be used as reference rates for loans with a maturity of over five years and the introduction of a new reference rate would no longer require central bank approval. The decision was made as a continuation of the central bank’s process of liberalisation, it said. REUTER 24-APR-1987 13:45:44.12 acq france F f1970reute r f BC-ROCKWELL-SIGNS-AGREEM 04-24 0101 ROCKWELL SIGNS AGREEMENT ON VALEO SUBSIDIARY PARIS, April 24 – Rockwell International Corp has signed an agreement leading to the takeover of Valeo subsidiary , Valeo said in a statement. The company said Rockwell had agreed to handle Soma sales around the world and to help Valeo in restructuring its loss-making subsidiary. It also said Rockwell, an American high-technology engineering group with interests in aerospace and the car industry, would take control of Soma at the beginning of 1988 if it obtained approval from the French government. Soma, a fully owned subsidiary of Valeo, makes axles and gear boxes for heavy vehicles and machinery mostly used in the construction business. A Valeo spokesman said , a subsidiary of Soma specialized in equipment for military vehicles, had been excluded from the agreement with Rockwell. He said no details were available on the eventual amount Rockwell would pay for Soma. Vehicle components maker Valeo was the object of a takeover bid in 1986 by Italian group (CIR), controlled by Olivetti chairman Carlo de Benedetti. The French government limited CIR’s holding in Valeo to less than 30 pct in June 1986, after classifying Valeo as a defence contractor. Today CIR has effective control of Valeo through its French holding company , Cerus, which has a 18.24 pct stake in Valeo. Since CIR won control of the French group in June, Valeo has pursued a policy of concentrating its activities on the car industry. The company spokesman said Valeo had sold off all its construction interests in 1986 but declined to comment on the amount of the sales. The spokesman said figures were not available on Soma’s losses in 1986 but said the company had registered a turnover of 546 mln francs. Valeo recorded a consolidated net loss of 388 mln francs in 1986 on a turnover of 12.1 billion francs. REUTER 24-APR-1987 13:53:22.43 silver mexicoperu del-mazomancera-aguayo C M f1997reute b f BC-no-mexican-reaction-t 04-24 0102 MEXICO YET TO REPLY TO PERU’S SILVER INVITATION MEXICO CITY, April 24 – Mexico’s minister of energy and mines, Alfredo del Mazo, has yet to reply to a Peruvian invitation for ministerial-level talks on bilateral cooperation in silver marketing, a ministry spokesman said. Peruvian officials said they extended the invitation earlier this week and that it was possible the talks could be held within the next 15 days. Meanwhile, a Banco de Mexico spokesman confirmed that Mexican central bank head Miguel Mancera Aguayo held private talks here yesterday with the president of the Peruvian central bank. The spokesman said the talks were in line with mutual consultation agreements made during Peruvian President Alan Garcia’s visit to Mexico in march. Press reports citing diplomatic sources at the meeting said the two central bank heads discussed means of coordinating actions in the silver market. Mexico is the world’s leading silver produer. It produced about 73.9 mln troy ounces in 1986, according to preliminary government figures. Peru, the second biggest producer of the precious metal, earlier this week froze new silver sales in an effort to stabilize silver prices. It produced 57 mln troy ounces in 1986. Reuter 24-APR-1987 13:55:30.42 usa F f2002reute d f BC-WURLITZER--ELECT 04-24 0099 WURLITZER ELECTS NEW TOP OFFICERS DEKALB, ILL., April 24 – Wurlitzer Co said George Howell was elected vice chairman, succeeding Sid Weiss who was named chief executive officer. Weiss became vice chairman in December 1986. Weiss and Leonard Friedman, Wurlitzer chairman, led Wurlitzer Investments Ltd, a Texas partnership which purchased a controlling interest in Wurlitzer. In other action, Frank Rubury was elected president and chief operating officer of Wurlitzer, effective April 27. Rubury was formerly president of Horsman Inc, a subsidiary of Drew Industries Inc . Reuter 24-APR-1987 13:58:51.21 acq usa F f2007reute d f BC-GLENMEDE-TRUST-TO-SEL 04-24 0105 GLENMEDE TRUST TO SELL PART OF SUN STOCK RADNOR, Pa., April 24 – and Sun Co said that Glenmede plans to sell a portion of its charitable holdings of Sun common stock, of which it holds 28 pct of the outstanding shares. They said the sales, to be made in the market subject to prevailing market conditions, will not exceed 2.5 pct of Sun’s 107.7 mln outstanding common shares. Glenmede, a trustee for various trusts and estates, said the sales are part of an ongoing plan to maintain its Sun holdings at levels roughly equal to those prior to the Sun stock buyback program that began in 1980. Reuter 24-APR-1987 14:02:59.88 gnp algeriaswitzerland RM f2020reute r f BC-ALGERIAN-MINISTER-RUL 04-24 0086 ALGERIAN MINISTER RULES OUT DEBT RESCHEDULING GENEVA, April 24 – Algeria’s Finance Minister Abdelaziz Khelaf said no rescheduling of his country’s foreign debt is envisaged. Khelaf, who came to Geneva for a meeting organised by the World Economic Forum, told Reuters Algerian debt amounted to about one third of the country’s Gross National Product of 55 billion dlrs. France and Algeria yesterday finalised two agreements giving Algeria a total 580 mln dlrs in credits to finance trade and projects. REUTER 24-APR-1987 14:10:37.53 usa F f2041reute u f BC-VOLKSWAGEN-TO-IDLE-U. 04-24 0064 VOLKSWAGEN TO IDLE U.S. PLANT, 1,650 WORKERS NEW STANTON, Pa., April 24 – Volkswagen of America said it will shut down its U.S. car assembly plant for two weeks and idle 1,650 workers. The wholly owned subsidiary of Volkswagen A.G. said the facility will be closed for two weeks starting today to adjust inventories. The 1,650 hourly workers will be laid off until May 11. Volkswagen’s sales of U.S.-made cars this year have dropped sharply below last year’s figures, a spokeswoman said. So far this year, sales are down nearly 40 pct compared to last year. The U.S. company has sold a total of 13,218 U.S.-made cars so far this year, down from 21,943 during the same period last year. In its most recent 10-day sales period, April 11-20, the company sold 30.7 pct fewer cars. It sold a total of 1,167 cars during the period against 1,683 in the same 1986 period. The spokeswoman also said inventories of Volkswagen’s cars are running as high as 335 day’s supply as of April 20, well above the inventory level of 50 to 60 days supply considered acceptable by the U.S. car industry. The highest inventories are on the company’s new “GT” model. Stocks of Volkswagen’s 16-valve “GTI” model are 164 days’ supply. Inventory levels for other Volkswagen models are as follows–“Golf” gas-powered-87 days, “Golf” diesel-powered 20 days, regular “GTI”-83 days. Reuter 24-APR-1987 14:12:13.79 silver perumexico mancera-aguayo C M f2046reute u f BC-peru-says-it-held-tal 04-24 0101 PERU SAYS IT HELD TALKS WITH MEXICO ON SILVER LIMA, April 24 – The heads of the central banks of Mexico and Peru have met in Mexico city to coordinate actions aimed at consolidating the upward trend in the price of silver, the official newspaper El Peruano said. It said that Peruvian central bank president Leonel Figueroa met yesterday with the president of the bank of Mexico, Miguel Mancera Aguayo. Peru, which froze new sales of refined silver and its government-marketed silver ore on tuesday, is the world’s second biggest producer of the precious metal. Mexico is the largest producer. Together, the two nations account for nearly 40 pct of the world’s silver output, the official paper El Peruano said. Peru adopted the move on tuesday in an bid to stablilise the price of silver bullion, which has climbed in a month from about 5.70 dlrs an ounce to over 9.00 dlrs an ounce today. After the meeting of the Peruvian and Mexican central bank heads, it was understood that Mexico might diversify the use of silver, El Peruano said. It said that Mexico and Peru did not want to speculate with the price of silver. Instead, they aimed to see that the price of the precious metal recuperated to adequate levels. El peruano did not specify what these levels were. El peruano quoted energy and mines minister Wilfredo Huayta as saying that Peru did not want to participate in speculative operations with silver. He said the government’s aim was to avoid a “brutal fall” in the price of silver. Figueroa’s office confirmed the Peruvian central bank president had travelled to mexico city. It was not certain if he had returned to Lima by midday today. Reuter 24-APR-1987 14:15:16.65 iron-steel spain M f2051reute d f BC-SPAIN-APPROVES-AID-FU 04-24 0093 SPAIN APPROVES AID FUNDS FOR STEEL INDUSTRY MADRID, April 24 – The Spanish cabinet agreed a 223.33 billion peseta aid package for the steel industry to restore the sector to profitability by 1989, Industry Minister Luis Carlos Croissier said. He told reporters at a news conference the money would be shared among four state and privately-owned mills, which now operate at a loss. The funds will be used to help modernise the industry, increase productivity and cut production to 17.5 mln tonnes a year from a current capacity of 18.2 mln tonnes. Reuter 24-APR-1987 14:18:29.22 money-supply usa A RM f2059reute u f BC-U.S.-M-1-MONEY-SUPPLY 04-24 0101 U.S. M-1 MONEY SUPPLY SURGE EXPECTED NEXT WEEK NEW YORK, April 24 – The U.S. M-1 money supply number to be announced next Thursday is expected to show one of the largest one-week increases in history, analysts said. The average forecast of economists polled by Reuters calls for a 17.7 billion dlr M-1 jump for the week ended April 20. Estimates of the increase range from five billion dlrs to 26.3 billion dlrs. “The M-1 surge will be very temporary. About two thirds of the increase is likely to be washed out in the following week,” said Kim Rupert, an economist at Money Market Services Inc. Rupert said a huge increase in M-1 for the April 20 week is implied by very strong deposit survey data and by an unexpectedly sharp gain in required reserves in Federal Reserve data released Thursday. Those numbers, covering the two-week bank statement period that ended on April 22, show a 2.5 billion dlr jump in basic required reserves. Economists said this largely reflected the parking in checking accounts of the proceeds from stock market sales and mutual fund redemptions to pay annual income taxes. Fed seasonal adjustments do not adequately compensate for these and other special factors. Analysts noted that income tax refunds from the Treasury also appear to be coming earlier than usual. They also are not adequately compensated for by the Fed’s seasonal adjustment factors to the money supply. The Federal Reserve is no longer targeting M-1 because the link between M-1 and economic growth has largely been severed by financial market innovation and deregulation. As such, there is likely to be little financial market reaction to the huge M-1 increase that is expected to be announced next week. Reuter 24-APR-1987 14:20:24.06 gnp algeriaswitzerland A f2069reute r f BC-ALGERIAN-MINISTER-RUL 04-24 0085 ALGERIAN MINISTER RULES OUT DEBT RESCHEDULING GENEVA, April 24 – Algeria’s Finance Minister Abdelaziz Khelaf said no rescheduling of his country’s foreign debt is envisaged. Khelaf, who came to Geneva for a meeting organised by the Word Economic Forum, told Reuters Algerian debt amounted to about one third of the country’s Gross National Product of 55 billion dlrs. France and Algeria yesterday finalised two agreements giving Algeria a total 580 mln dlrs in credits to finance trade and projects. Reuter 24-APR-1987 14:22:34.20 usa F f2073reute u f BC-BOEING--GETS-ORDE 04-24 0064 BOEING GETS ORDERS TOTALING 543 MLN DLRS SEATTLE, April 24 – Boeing Co said it confirmed orders totaling 543 mln dlrs for 14 jet aircraft from four customers. The company said Delta Air Lines has increased its orders for the 767-300 jetliner by six, bringing its total commitment for the longer-fuselage plane to 15, with a total value of more than 300 mln dlrs. Boeing said will take delivery of five more 737-300 jetliners worth about 130 mln dlrs, bringing its orders for the twinjets to 15. of Australia has ordered its first 767-300 with extended range capability for about 75 mln dlrs, Boeing said. Boeing said has placed firm orders for two additional 737-200 twinjets valued at 38 mln dlrs. Reuter 24-APR-1987 14:24:06.66 canada E F f2075reute u f BC-cominco 04-24 0113 COMINCO TO CLOSE B.C. FERTILIZER PLANT VANCOUVER, British Columbia, April 24 – Cominco Ltd said it will permanently close its fertilizer plant at Kimberley, British Columbia, in the latter half of May and 140 employees will lose their jobs. It said the operation has been losing money for several years, and lost seven mln dlrs in 1986. Cominco said the decision to close the plant was based on high production costs, anticipated continued losses and excess capacity for phosphate-based fertilizers. The plant produced 98,500 metric tonnes of ammonium phosphate fertilizer and 190,000 tonnes of sulphuric acid in 1986. Reuter 24-APR-1987 14:30:44.71 nigeria C G T f2086reute d f AM-WAGES 04-24 0124 NIGERIA REVERSES POLICY, RESTORES MINIMUM WAGE LAGOS, April 24 – Nigeria’s military government retreated in the face of hostile public opinion and restored the minimum wage of 125 naira (about 32 dlrs) a month. It revoked an order made only last December which exempted companies with fewer than 500 employees — the vast majority — from paying the minimum wage. Labour Minister Brigadier Ike Nwachukwu, announcing the decision in Lagos today, said it was made out of respect for public opinion and to maintain industrial harmony. Nwachukwu said the thinking behind the exemption was in line with Nigeria’s far-reaching structural adjustment program and the measure was intended to promote small-scale industry and agriculture. Reuter 24-APR-1987 14:36:36.73 crudenat-gasgasfuelcpi usa Y RM f2109reute u f BC-/U.S.-ENERGY-COSTS-RO 04-24 0091 U.S. ENERGY COSTS ROSE IN MARCH BY 1.0 PCT WASHINGTON, April 24 – Consumer energy costs rose 1.0 pct in March following a moderate rise last month, the Labor Department said. The March increase in the overall energy costs, including petroleum, coal and natural gas, followed a 3.0 pct rise in January and a 1.9 pct rise in February, it said. However, energy prices were 5.6 pct below year-ago levels. The department’s Consumer Price Index showed that the cost of gasoline rose in March by 2.3 pct, after a 4.2 pct rise in February. Gasoline prices were nonetheless 5.9 pct below their levels as of March 1986. Also, the category including fuel oil, coal and bottled gas rose in March by 1.4 pct, putting it 9.0 pct under the year-ago figure. The index also showed that natural gas and electricity were unchanged last month, but down 3.1 pct from the March 1986 figure, the department said. The index has been updated to reflect 1982-84 consumption patterns. Previously, the index was based on 1972-73 patterns. Reuter 24-APR-1987 14:37:55.90 usabrazil A RM f2113reute r f BC-INTERSTATE-(I)-CHIEF 04-24 0089 INTERSTATE (I) CHIEF DOUBTFUL ON BRAZIL DEBT LOS ANGELES, April 24 – First Interstate Bank Corp Chairman Joseph Pinola said he was not optimistic about the prospects for a resolution of the Brazilian debt situation during the current year. “I am not as optimistic personally on a resolution as some others are,” Pinola told reporters after the company’s annual meeting. He said it did not seem likely that the Brazilian government has the will to take the steps necessary to resolve their domestic economic difficulties. In February, Brazil suspended interest payment on about 68 bln dlrs of its commercial debt. Many U.S. banks have placed their Brazilian loans on non-accrual status as a result of this action, but they also expressed confidence that Brazil and U.S. lenders could resolve the situation before the end of the year. Reuter 24-APR-1987 14:44:10.61 gold usa F f2125reute u f BC-FMC--TO-SELL-STA 04-24 0106 FMC TO SELL STAKE IN GOLD PROPERTIES CHICAGO, April 24 – FMC Corp said it will consider selling to the public a minority interest in a subsidiary that will hold the company’s North American gold and precious metals properties and operations. FMC said its board also authorized the transfer of the metals properties to the newly formed unit. An unnamed investment advisor has been retained to help in evaluating alternatives on the properties, which consist of a wholly owned gold mine at Paradise Peak, Nev., a 30 pct interest in a gold mine at Jerritt Canyon, Nev., and a 28 pct interest in a gold mine near Austin, Nev. Reuter 24-APR-1987 15:00:00.68 acq usa F A f2172reute r f BC-interstate-(I)-spent 04-24 0093 INTERSTATE (I) SPENT 3.5 MLN ON TAKEOVER BID LOS ANGELES, April 24 – First Interstate Bank Corp spent about 3.5 mln dlrs on its attempted takeover of BankAmerica Corp, First Interstate Chairman Joseph Pinola said. In response to a shareholder’s question following the company’s annual meeting, Pinola also said that figure could ultimately be lower depending on the outcome of negotiations with the firm’s insurers. Pinola explained that the company’s insurance rates went up “substantially” after last year’s attempt to acquire BankAmerica Corp. In February, First Interstate withdrew its 3.20 bln dlr bid for BankAmerica and said it was no longer interested in the acquisition because of BankAmerica’s divestitures. During the takeover battle, BankAmerica sold its Italian banking operations and its profitable Charles Schwab and Co discount brokerage firm. Reuter 24-APR-1987 15:09:10.69 f-cattlelivestock usa C L f2217reute b f BC-pig-crop-cme-reaction 04-24 0057 CATTLE ON FEED REPORT CALLED NEGATIVE CHICAGO, April 24 – Chicago Mercantile Exchange floor traders’ immediate comments on the 13-state USDA quarterly cattle on feed report were negative. Traders said that placements on feed and total on-feed numbers were at the high end of expectations and will likely weigh on futures tomorrow. Reuter 24-APR-1987 15:14:39.20 lumber usajapan F f2241reute u f BC-WALL-STREET-STOCKS/PA 04-24 0104 WALL STREET STOCKS/PAPER AND LUMBER PRODUCERS By Gary Seidman, Reuters NEW YORK, April 24 – Stocks of paper and lumber producers tumbled as a rumor spread that the Japanese may impose tariffs on wood and paper products, analysts and industry officials said. But, they said, logic and their own research do not support the rumors. “Apparently a rumor is floating around trading circles about the Japanese doing something about tariffs on wood and paper products,” Lowell Moholt, director of investor relations at Weyerhaeuser Co said. “And we can only assume that this rumor is one of the factors hurting the stocks.” “I have talked to many people, some with government contacts, and most of them have been mystified by the rumor,” said Moholt. Nevertheless, International Paper fell 4-3/8 to 95-1/2, Weyerhaeuser Co two to 51-1/2, Potlatch Corp 3-1/2 to 69, Great Northern Nekoosa 3-1/8 to 85-1/2, Temple Inland Inc 2-3/4 to 57-1/4, Boise Cascade 2-3/8 to 74-3/8, Georgia Pacific Corp 1-1/2 to 43-3/4, Champion International Corp 1-3/8 to 36-1/2 and Pope and Talbot Inc 1/2 to 36. “My sources told me there is no grain of truth to the Japanese imposing tariffs,” Sherman Chao, analyst with Salomon Inc said. “The realities and the logic do not support these rumors,” he said. “The Japanese have a lot more to lose by imposing tariffs. They are running a trade surplus,” he said, “and if they started a trade war it would hurt them more than the U.S.” Chao said that U.S. producers annually export about two billion dlrs of forest products to Japan. “Three quarters of that is in the form of wood products, meaning logs, wood chips and lumber, and the balance is paper products.” “They (the Japanese) don’t have any domestic sources to make up for the restrictions,” Chao said, “so it’s not like they would put a tariff to protect their own industry.” “The rumors do no make economic sense, and I am skeptical,” analyst Mark Rogers of Prudential Bache Securities said, “but politics has been known to override economic concerns.” Speculation has surfaced on Wall Street recently that the Japanese would take action to retaliate against tariffs the Reagan Administration imposed last Friday on Japanese electronics products. Rogers said the rumor fueled the profit taking that was already occuring in these stocks. “In a nervous market, people tend to take profits, and they tend to take profits that have been the biggest gainers lately.” Reuter 24-APR-1987 15:16:07.27 grainwheat usaalgeria C G f2245reute u f BC-USDA-ANNOUNCES-EXPORT 04-24 0102 USDA ANNOUNCES EXPORT BONUS WHEAT TO ALGERIA WASHINGTON, April 24 – The U.S. Agriculture Department announced it accepted three bids from two exporters for export bonuses to cover sales of 54,000 tonnes of durum wheat to Algeria. USDA said the bonuses awarded were 42.45 dlrs per tonne, to be paid in the form of commodities from CCC inventory. The bonus awards were made to Cam USA Inc (36,000 tonnes) and Corprostate Inc (18,000 tonnes). Shipment is scheduled for June 1-30, 1987. An additional 64,000 tonnes of durum wheat are still available to Algeria under the export enhancement program. Reuter 24-APR-1987 15:56:02.48 acq usa F f2370reute r f BC-MOLECULAR-GENETICS- IN MERGER TALKS MINNETONKA, Minn., April 24 – Molecular Genetics Inc said it has held preliminary discussions with a privately-held company convening a possible acquisition. “No agreement in principle has been reached, and serious negotiations on material terms have not begun,” said Robert Auritt, acting co-chief executive officer and co-president. Molecular said it would have no further comment on the matter until an agreement in principle is reached or discussions are terminated. Reuter 24-APR-1987 16:00:35.93 money-supply usa A RM f2378reute u f BC-TREASURY-BALANCES-AT 04-24 0084 TREASURY BALANCES AT FED FELL ON APRIL 23 WASHINGTON, April 24 – Treasury balances at the Federal Reserve fell on April 23 to 6.211 billion dlrs from 9.431 billion dlrs on the previous business day, the Treasury said in its latest budget statement. Balances in tax and loan note accounts rose to 25.154 billion dlrs from 24.953 billion dlrs on the same respective days. The Treasury’s operating cash balance totaled 31.366 billion dlrs on April 23 compared with 34.385 billion dlrs on April 22. Reuter 24-APR-1987 16:02:11.01 ipitrade ussr RM f2387reute u f AM-SOVIET-ECONOMY 04-24 0109 SOVIETS SAY 1987 ECONOMIC RESULTS UNSATISFACTORY MOSCOW, April 24 – The Soviet government said economic results achieved in the first three months of the year were unsatisfactory, the official news agency Tass said. Soviet industrial production from January to March grew by 2.5 per cent compared with the same period last year, but fell short of its target by 0.8 percent, official statistics showed. “The Council of Ministers (government) emphasised that the results did not meet the Communist Party’s exacting demands for the radical reconstruction of the economy,” Tass said. “The first quarter economic results were deemed unsatisfactory.” The government said poor economic results last January, when industrial production was 0.1 lower than in January 1986, had been overcome to a considerable extent in March, but the negative effects had not been completely eliminated. It singled out failings in the engineering, chemical and timber industries, as well as light industry. Growth in the machine-building sector, a priority in Kremlin plans for economic renewal, also fell short of target by 4.2 per cent, with below-level output in nearly all branches at a cost of 723 million roubles (1.08 billion dollars) in undelivered products. The sales volume of consumer goods fell 2.7 per cent short of planned growth, with a resulting decline in income to the state, the figures showed. Foreign trade turnover totalled 27.5 billion roubles (41.25 billion dollars), or 4.8 billion roubles (7.2 billion dollars) less than in the same period last year. The power industry, however, performed well. Output of oil, electricity, gas and coal were all above plan. Reuter 24-APR-1987 16:17:09.32 acq usa F f2430reute r f BC-CARMEL--HOLDER-S 04-24 0057 CARMEL HOLDER SELLS SHARES NEW YORK, April 24 – Carmel Container Systems Ltd said Mikhal Industrial and Development Management Ltd sold 202,500 shares to a group of private investors. After the sale, Mikhal retains a 49 pct ownership of Carmel Plaro Holding Ltd, which owns 51 pct of Carmel Container SYstems’ outstanding stock. Reuter 24-APR-1987 16:18:20.46 gnpinterest usaukjapan RM A f2432reute r f BC-BARCLAYS-SAYS-PROSPEC 04-24 0112 BARCLAYS SAYS PROSPECTS BRIGHT FOR UK ECONOMY NEW YORK, April 24 – Britain can look forward to fairly strong economic growth, falling interest rates and firm Sterling, Barclays Bank Plc chairman-elect John Quinton said. “We should see a reasonable decline in interest rates in the next few months, but not a great one and not a rapid one,” Quinton told a press luncheon. He said that whereas the British economy is growing at about three pct, he expects only “minor” growth for the western industrialized world as a whole. But, unless there is a major move toward protectionism, there should be no need to worry about a recession in the next two or three years. Quinton said much will depend on the resolution of trade disputed between the United States and Japan. He said Tokyo, in resisting the appreciation of the yen, had been “holding back the laws of economics.” But if the dollar has to fall further to reduce Japan’s trade surplus, he said he hoped the fall would be slow rather than rapid. Quinton said it will be difficult for the City of London to stave off the creation of a powerful securities industry regulatory body along the lines of the Securities and Exchange Commission in the U.S., especially if there are more insider trading scandals and if the Labour Party wins the next U.K. election. Reuter 24-APR-1987 16:22:19.48 gas usa F Y f2446reute d f BC-U.S.-GASOLINE-SURPLUS 04-24 0104 U.S. GASOLINE SURPLUS SEEN OVER NEAR TERM By SUZANNA SANBORN, Reuters NEW YORK, April 24 – Unless U.S. refiners reduce the amount of gasoline they now produce, the oil industry will enter the coming summer driving season with the largest surplus of motor fuel since 1984, oil analysts and traders said. “They key question is how much gasoline refiners produce in the coming weeks,” said Larry Goldstein of Petroleum Industry Research Inc. “If refiners cut output and demand turns upward, gasoline stocks could begin to draw, and the surplus could potentially turn around in four to eight weeks,” said Goldstein. The American Petroleum Institute said U.S. gasoline stocks for the week ended April 17 are 37.6 mln barrels above last year’s levels, and analysts said they don’t believe the expected one to two pct rise in demand will take care of the surplus before the start of the summer driving season, which begins Memorial Day weekend. The API said the last time stocks were this high was in 1984, when there was a 27 mln barrel excess. Oil traders said that the surplus held throughout the summer of 1984, depressing prices for the motor fuel. Over the past several weeks, analysts said they expected refiners to reduce production because there was no profit in continued production of gasoline due to the surplus. However, refineries continued to operate at higher levels, they said. U.S. refineries have been running at about 78.8 pct of capacity during March and April this year, compared to 77.5 at this time last year, API statistics show. Because of the current excess in stocks, one planner for a major oil company said he believed that most companies are contemplating cutting refinery throughput over the near term. He said some refiners appear to be selling less aggressively in order to have product on hand to meet the expected rise in demand this summer. Goldstein said that other factors, such as higher speed limits, the gasoline lead phasedown, and possible new restrictions on gasoline vapor pressure could tighten the supply situation this summer. However, a planner at another major oil company said that although large inventories are dampening the price outlook for gasoline this season, he does not expect refiners to cut output soon. That oil company planner said high crude oil runs reduce the refiner’s average costs, making the incremental barrel of gasoline cheaper to produce. Most analysts expect a slight upturn this summer over the summer of 1986. Bo Poates, an analyst at the Energy Futures Group Inc said he foresees demand up about one pct in the second and third quarters of 1987. Chase Econometrics’ Scott Jones sees gasoline demand rising 1.9 to 2.2 pct for the year, due mainly to continued low prices. Reuter 24-APR-1987 16:27:06.81 acq usa F f2462reute r f BC-BECOR-WESTERN--S 04-24 0092 BECOR WESTERN SETS SPECIAL MEETING DATE MILWAUKEE, April 24 – Becor Western Inc said it set June 4 as the date for a special meeting at which stockholders will vote on two proposals involving the sale of its subsidiary and the acquisition of the company. The previously-announced proposals call for the sale of its aerospace operations subsidiary to and the related leveraged buyout of the company by , the company said. Becord said May 4 has been set as the record date for the special meeting. Reuter 24-APR-1987 16:28:06.65 usa F f2468reute d f BC-ATCOR-INC--TO 04-24 0111 ATCOR INC TO CONTEST ANTITRUST RULING HARVEY, Ill., April 24 – Atcor Inc said a Federal Court has reinstated a 1986 jury verdict against it and in favor of Indian Head Inc for antitrust damages of 3.8 mln dlrs before trebling and attorneys’ fees. The company said it will challenge the ruling by the United States Court of Appeals for the Second Circuit which reversed a decision of the District Court in its favor. The case involved charges that Atcor acted improperly in opposing Indian Head’s attempt to have its plastic electrical conduit sanctioned by the National Fire Protection Association under the 1981 National Electrical Code, it said. Atcor said the ruling by the three-judge panel of the Court of Appeal was incorrect and “seriously questionable in light of established Supreme Court doctrine”. The legal avenues to be examined in an attempt to have the ruling reversed could include filing a petition for Supreme Court review, the company added. Reuter 24-APR-1987 16:58:05.41 livestockf-cattlepork-bellyl-cattlecarcass usa C L f2546reute u f BC-USDA-REPORTS-SEEN-NEG 04-24 0126 USDA REPORTS SEEN NEGATIVE TO LIVESTOCK FUTURES By Jerry Bieszk, Reuters CHICAGO, April 24 – Commission house livestock analysts agreed with Chicago Mercantile Exchange floor traders in calling today’s USDA 13-state quarterly cattle on feed report and cold storage report for pork bellies negative. June live cattle futures are called 0.20 to 0.50 cent lower on Monday and back months of cattle are expected 0.50 to 1.00 cent lower. Pork bellies are expected 0.50 to 1.00 cent or more lower, the analysts said. Disappointment was voiced over the placement and total on feed figures in the cattle report. Both the quarterly section and monthly 7-state part showed the amount placed on feed and on feed numbers at the high end of expectations. The other disappearance figure of only three pct above a year ago in the 7-state section was also vieved as negative. Most of the early guesses predicted a much larger number for death loss following the two winter snow storms that struck the west in late March, they said. However, weight groupings were friendly to the nearby futures and should prompt some bull spreading on the decline, they said. William Arndt from Dean Witter noted that the 900 to 1,100 lb steers and 700 to 900 lb heifers were at 94 pct of a year ago and should lend some support to June futures. However, 700 to 900 lb steers at 119 pct will weigh on August, he said. “The big reduction in cattle weighing over 900 lbs should be friendly to the market for at least the next 30 to 60 days,” AGE Clearing analyst Jerry Abbenhaus said. Movement of bellies into frozen storage was at the high end of expectations and should weigh on futures tomorrow, especially as futures prices ended weak today, they said. Other parts of the cold storage report were also viewed as negative to livestock and meat futures. “We have a lot of poultry in storage. Even though we have smaller pork supplies, the decline is not enough to offset the increases in poultry,” Shearson Lehman analyst Chuck Levitt said. Also, there is more beef in storage than last year and this was achieved on smaller production. Reuter 24-APR-1987 16:59:14.29 silver perumexico garciade-la-madriddel-mazomancera-aguayo C M f2550reute u f BC-peru-to-maintain-silv 04-24 0124 PERU TO MAINTAIN SILVER SALES FREEZE LIMA, April 24 – Energy and mines minister, Wilfredo Huayta, said Peru would maintain its freeze on new sales of silver until the price of the precious metal reaches “the true value this raw material should have.” He spoke to reporters at the presidential palace after meeting president Alan Garcia, whom he said recently spoke by telephone with Mexican president Miguel de la Madrid. Mexico and Peru are the world’s two largest silver producers. Huayta, asked what the true price level of silver should be, repled: “well, this cannot be predicted.” He said Minero Peru Comercial (Minpeco), the government’s minerals marketing arm, would closely study the price of silver in the world market. Last Tuesday, the government instructed Minpeco, which handles all Peru’s exports of refined silver and state- produced ore, to immediately freeze all new silver sales until the metal’s price reached equilibrium in the world market. Peru plans to produce 63 mln ounces of silver this year, and is the largest producer of the precious metal after Mexico. Huayta said both nations’ central banks would coordinate their work, but did not elaborate how they would do this. Peruvian central bank president Leonel Figueroa and the head of Bank of Mexico, Miguel Mancera Aguayo, met in Mexico City yesterday to coordinate actions aimed at consolidating the upward trend in the price of silver, the official newspaper El Peruano said today. Huayta said his Mexican counterpart, minister of oil, mines and parastatal industry, Alfredo del Mazo, should be in Lima on a visit at a nearby date. Huayta added Peru did not want to see great fluctuations in the price of silver, but declined to comment on what Peru would like to see as a ceiling for the precious metal’s price. Silver bullion climbed to nearly 10.00 dlrs an ounce today from about 5.70 dlrs an ounce a month ago. Reuter 24-APR-1987 17:05:54.55 acq usa F f2575reute r f BC-ALLEGHENY 04-24 0115 GABELLI GROUP LIFTS ALLEGHENY INT’L STAKE WASHINGTON, April 24 – An investor group led by New York money manager Mario Gabelli said it raised its stake in Allegheny International to the equivalent of 1,026,261 shares, or 9.4 pct of the total, from 884,061 shares, or 8.2 pct. In a filing with the Securities and Exchange Commission, Gabelli and companies he controls said they bought a total of 142,200 Allegheny common shares between March 30 and April 22 at prices ranging from 24.125 to 24.875 dlrs a share. The stake, which includes some 11.25 dlr cumulative preferred stock, was bought solely for investment purposes and not to seek control of the company, the group said. Reuter 24-APR-1987 17:06:04.79 grainwheatricecotton usa G f2576reute d f BC-USDA-SEEKING-COMMENTS 04-24 0123 USDA SEEKING COMMENTS ON 1988 FARM PROGRAMS WASHINGTON, April 24 – The U.S. Agriculture Department is seeking comments on common provisions of the 1988 wheat, feedgrains, cotton and rice programs. It said many program provisions are common to all the commodity programs and decisions made in regard to one will likely apply to other program crops. It asked for specific comments on the percentage reduction for acreage limitation requirements under the wheat program, the loan and purchase level, and whether a marketing loan, the inventory reduction program and related provisions should be implemented. The percentage acreage reduction of between 20 and 30 pct must be announced no later than June 1, 1987 for wheat, it said. Reuter 24-APR-1987 17:06:40.68 trade brazil RM F A f2578reute u f BC-BRAZIL-TRADE-SURPLUS 04-24 0105 BRAZIL TRADE SURPLUS FALLS SHARPLY IN MARCH RIO DE JANEIRO, APRIL 24 – Brazil’s trade surplus in March totalled 136 mln dlrs, down from 1.13 billion dlrs in the same month last year, the official Banco do Brasil announced. In a news conference, the director of the bank’s Foreign Trade Department (Cacex), Roberto Fendt, attributed March’s weak performance to labour strikes. March exports totalled 1.43 billion dlrs, against 1.53 billion dlrs in February, and 2.16 billion dlrs in March 1986. March imports amounted to 1.29 billion dlrs compared to 1.27 billion dlrs in February and 1.02 billion dlrs in March 1986. Fendt said coffee earnings were up to 220 mln dlrs in March from 110 mln dlrs in February, while oil derivatives were down to 54 mln dlrs from 58 mln dlrs in February. He said that although the March results were considerably lower than the same month last year, the government’s target of an eight billion dlr surplus for 1987 should be achieved. The January-March trade surplus totalled 526 mln dlrs, below the same period last year, which reached 2.46 billion dlrs. Asked to explain the reason for his optimism, Fendt said the trade surplus should reach one billion dlrs in each of the last six months of the year. Even though results in the exports of steel, shoes and frozen concentrated orange juice were weaker compared to February, Fendt said this was not an indication that the United States was retaliating on account of its dispute with Brazil in the issue of informatics. For the next three months, Fendt estimated a monthly trade surplus of 400 mln dlrs, for an overall surplus of 1.2 billion dlrs in the April-May-June period. Reuter 24-APR-1987 17:10:11.47 usa F f2587reute u f BC-ANALYST-UPGRADES-OPIN 04-24 0107 ANALYST UPGRADES OPINION ON U.S. BANK STOCKS NEW YORK, April 24 – Analyst George Salem of Donaldson, Lufkin and Jenrette Securities Corp upgraded his recommendation on most U.S. money center banks following comments from a Japanese official that Japan plans to provide developing nations with up to 30 billion dlrs in loans. Salem said he changed his trading recommendation from negative to a buy. He is still neutral to negative long term. But the Japanese assistance is a psychological boost for the stocks. He said his report focused on Citicorp , J.P. Morgan and Co , Chase Manhattan Corp and Bankers Trust Co . Yesterday, a U.S. state department spokesman said the loans will help the countries import goods needed to increase domestic production. The countries could then boost exports and earn foreign exchange, making it easier to repay loans to U.S. banks. “This is a group of stocks that was starving for good news,” Salem said. “I”m not declaring an end to the debt crisis, or that problems of all the countries are now under control.” Stocks in the money center bank group were generally higher today, adding to yesterday’s gains. Reuter 24-APR-1987 17:15:26.18 acq usa F f2592reute r f BC-ENTWISTLE 04-24 0106 ENTWISTLE HAS 5.1 PCT OF ESPEY WASHINGTON, April 24 – Entwistle Co told the Securities and Exchange Commission it has acquired 62,500 shares of Espey Manufacturing and Electronics Corp, or 5.1 pct of the total outstanding common stock. Entwistle, a Hudson, Mass., machinery maker and military contractor, said it bought the stake for investment purposes and has no plans to seek control of the company or to seek representation on its board of directors. But Entwistle said it has indicated its interest to Espey management in acquiring a family-held 19 pct stake in the company in addition to its current stake. Reuter 24-APR-1987 17:39:02.68 graincorn usa C G f2655reute u f BC-/USDA-ADJUSTS-LOUISIA 04-24 0107 USDA ADJUSTS LOUISIANA GULF PRICE DIFFERENTIALS WASHINGTON, April 24 – The U.S. Agriculture Department has narrowed by three cents the price differential between the Louisiana Gulf price of corn and posted country prices pegged to the gulf price, USDA officials said. The change, effective April 27, means posted county prices will be three cents higher in the region, Robert Sindt, assistant deputy administrator of USDA’s Agricultural Stabilization and Conservation Service, said. Trade sources said USDA adjusted the differentials because gulf prices had shown some weakness in recent days compared with the rest of the country. Sindt said Louisiana Gulf corn price differentials that had been between four and eight cents would, effective Monday, range between one and five cents. Trade sources said cash bids at the Louisiana Gulf have been between three and 4.5 cents weaker than in the rest of the country in recent days, and that USDA’s move would strengthen the front end of the corn market. Reuter 24-APR-1987 17:50:19.03 acq usa F f2672reute d f BC-ALEXANDERS-SERVED-WIT 04-24 0093 ALEXANDER’S SERVED WITH COMPLAINTS NEW YORK, April 24 – Alexander’s Inc said that although no proposal has been received, the company has been served with several shareholder complaints challenging the 47-dlr-a-share acquisition price under consideration by Donald Trump and Interstate Properties. Alexander’s chairman Robin Farks said that an announcement made earlier this month indicated that no assurance could be given that Trump and Interstate would reach any agreement regarding an acquisition of the company, or what price might be offered. Reuter 24-APR-1987 18:01:23.05 gnpcpijobs swedenfrance oecd RM f2693reute r f BC-OECD-WARNS-SWEDEN-ON 04-24 0102 OECD WARNS SWEDEN ON LABOUR COSTS PARIS, April 25 – High labour costs and slower corporate investment could hinder Sweden’s economic growth after 1987, the Organisation for Economic Cooperation and Development, OECD, said. The Swedish economy grew at a slower rate in 1986 than in previous years. GDP rose about 1.7 pct in 1986 compared with 2.2 pct in 1985. But this growth depended largely on external factors, particularly lower oil prices, the OECD secretariat said in its latest annual report on Sweden. It warned that labour costs had risen more rapidly in Sweden than in other OECD countries. Because of high labour costs Swedish industry, which largely relies upon export markets, was losing market share. Wages in the manufacturing sector grew by seven pct in 1986, in line with 1985 increases, while public sector wages rose an estimated 9.2 pct in 1986, up from six pct in 1985. This was significantly higher than average wage increases of 3.75 pct for the seven largest members of the OECD in 1986. The report said wage moderation was central to maintaining economic growth in Sweden. It suggested that wage negotiations should be at least partly centralised to control the total wages bill and hold down inflation and unemployment levels. Helped by low oil prices and the government’s tight fiscal policy, inflation fell to just over three pct in 1986 from almost six pct in 1985 but remained higher than in most other OECD countries, the report said. Unemployment, a principal policy target, was at 2.7 pct in 1986, in line with 1985’s 2.8 pct and well below the OECD average of 8.6 pct. The report said Sweden’s employment policies accounted for the high levels of wage inflation. It also said that economic growth in 1986 relied increasingly on private consumption because corporate investment in machinery and equipment had shrunk. The total volume of industrial investments dropped by two pct in 1986, with sharp declines in spending by the wood, pulp and paper industries. This compared to a 19 pct rise in 1985 when there was heavy investment in these industries. The OECD said Sweden should now make an effort to boost corporate investments and reduce its dependence on domestic consumption for economic growth. It suggested there was room for reform in the tax system. Sweden should continue to cut public sector spending, especially in local government, to keep in line with its tighter fiscal policy, the report said. REUTER 24-APR-1987 18:42:49.05 trade brazil C G L M T f2750reute r f BC-BRAZIL-TRADE-SURPLUS 04-24 0108 BRAZIL TRADE SURPLUS FALLS SHARPLY IN MARCH RIO DE JANEIRO, APRIL 24 – Brazil’s trade surplus in March totalled only 136 mln dlrs compared to 1.13 billion dlrs in the same month last year, director of the Banco do Brasil’s Foreign Trade Department (Cacex) Roberto Fendt said. In a news conference, Fendt attributed the weak performance in the March trade balance to labour strikes in the country. March exports totalled 1.43 billion dlrs, against 1.53 billion dlrs in February, and 2.16 billion dlrs in March 1986. March imports amounted to 1.29 billion dlrs compared to 1.27 billion dlrs in February and 1.02 billion dlrs in March 1986. Fendt said that coffee earnings rose to 220 mln dlrs in March from 110 mln dlrs in February while oil derivatives were down to 54 mln dlrs from 58 mln dlrs in February. He said that although the March results were considerably lower than the same month last year, the government’s target of an eight billion dlr surplus for 1987 should be achieved. The January-March trade surplus totalled 526 mln dlrs, well below a similar period last year, which reached 2.46 billion dlrs. Asked to explain the reason for his optimism, Fendt said they were estimating that in each of the last six months of the year the trade surplus would amount one billion dlrs. Reuter 24-APR-1987 18:57:55.76 silver perumexico garciade-la-madridmancera-aguayo C M f2760reute u f AM-peru-silver 04-24 0131 PERU PRESIDENT WARNS OF RETALIATION ON SILVER By Walker Simon, Reuters LIMA, April 24 – The Peruvian government’s freeze on silver sales, which has contributed to a sharp boost in the metal’s price, could draw retaliation by rich nations and big traders seeking lower prices, President Alan Garcia said. Peru, the world’s second biggest silver producer, stopped selling its refined silver and state-marketed ore on tuesday. Since then, the metal’s price has risen to its highest level in nearly three years. It closed today at over nine dlrs an ounce on world markets. Garcia said the move showed that a small nation like Peru could move international markets and did not have to accept cheap prices for silver, traditionally one of the top revenue earners of the country. Peru exported its refined silver last year at an average price of 5.40 dlrs a troy ounce. As recently as one month ago, silver bullion was trading for about 5.70 dlrs an ounce on world markets. “One thing is that Peru, which produces silver, sells it silently and in a submissive manner at the price world markets want,” he told reporters at the presidential palace. “The other is that a nationalist government says, ‘wait a moment I can’t sell silver at these prices,'” he added. The peruvian energy and mines minister, Wilfredo Huayta, said the government would maintain its freeze on new sales of silver until the price of the metal reaches “the true value this raw material should have.” He did not specify this level. Garcia said rich nations and big traders, faced with Peru’s stance, could try to defend themselves. “They have some stocks, they have silver deposits, they can make fictitious sales and that way try to make the price of our mineral fall in the world market,” Garcia said. “Whatever manoeuvre they take will be answered by Peru,” he said. “Peru is in a position of action.” President Garcia had recently spoken by telephone with Mexican President Miguel de la Madrid, Huayta said. Mexico is the world’s biggest producer of silver. Mexico and Peru together produce nearly nearly 40 pct of the world’s silver, the official newspaper El Peruano said. The newspaper added that Peruvian central bank president Leonel Figueroa and the head of the central bank of Mexico, Miguel Mancera Aguayo, met in Mexico City yesterday to coordinate actions aimed at consolidating the upward trend of the price of the metal. Analysts in Zurich, a major silver trading centre, said today the rally in silver prices was also fuelled by investors buying the metal to protect themselves against inflation, which they fear could be rekindled by the dollar’s weakness. On an historical basis, silver is still relatively cheap compared to gold, which some investors believe could set the stage for further rises, they said. Reuter 24-APR-1987 19:03:13.49 ipi ussr C G L M T f2767reute d f AM-SOVIET-ECONOMY 04-24 0126 SOVIET GOVT SAYS ECONOMIC RESULTS UNSATISFACTORY MOSCOW, April 24 – The Soviet government said economic results achieved in the first three months of the year were unsatisfactory, the official news agency Tass said. Soviet industrial production from January to March grew by 2.5 pct compared with the same period last year, but fell short of its target by 0.8 pct, official statistics showed. “The Council of Ministers (government) emphasised that the results did not meet the Communist Party’s exacting demands for the radical reconstruction of the economy,” Tass said. “The first quarter economic results were deemed unsatisfactory.” It singled out failings in the engineering, chemical and timber industriess, as well as light industry. Reuter 24-APR-1987 19:04:56.28 usa F f2768reute u f BC-AM-INT’L--SAYS-3R 04-24 0104 AM INT’L SAYS 3RD QTR MAY NOT TOP BREAKEVEN CHICAGO, April 24 – AM International Inc said its third quarter net income may not exceed the breakeven level. However, the company said its fourth quarter operating profits are expected to be the largest of this year, and added its operating profits for the full year should be more than twice the fiscal 1986 year. AM International earned 8.5 mln dlrs, or 17 cts a share in the third period last year. Its operating profit for the fourth quarter last year was 6.7 mln dlrs. For the full year last year AM International had an operating profit of 29.1 mln dlrs. Reuter 24-APR-1987 19:57:55.16 gnpcrudetradebop ecuador Y RM f2782reute u f PM-ecuador 04-24 0115 ECUADOR ECONOMY SEEN CONTRACTING IN 1987 QUITO, April 24 – The Ecuadorean economy, struck by an earthquake last month, will contract an estimated four pct in 1987 and its crude oil output will drop by 42 pct, the government’s national development council (Conade) said. A Conade report, dated April 21 and obtained, said that the country’s gross domestic product (gdp) would fall by an estimated four pct compared to 1.5 pct growth last year. Conade functions as the country’s main planning institution. Crude output will fall to 61.2 mln barrels in 1987 from 105.6 mln in 1986, Conade said. It forecast exports of 22.9 mln of crude and derivatives against 63.3 mln last year. The March five earthquake killed up to 1,000 people and caused an estimated one billion dlrs in damage. It paralyzed Ecuador’s crude output because it ruptured the country’s main pipeline from Lago Agrio, at the heart of jungle oilfields, to the Pacific Ocean port of Balao. It will take until at least end-July to repair the line and return output to normal levels, oil officials said. Ecuador output was about 250,000 barrels per day before the tremor. Conade forecast total 1987 exports of 1.77 billion dlrs, 572 mln dlrs of which would be oil and derivatives. Imports were forecast at 1.70 billion dlrs. Total 1986 exports were 2.18 billion dlrs, of which 979 mln dlrs were crude and derivatives, with total imports 1.66 billion dlrs. Conade predicted that payments on Ecuador’s 8.16 billion dlrs foreign debt will be limited to 947 mln dlrs this year against 1.489 billion dlrs last year. Conade’s projected ceiling on payments is not legally binding. The current account balance of payments deficit was seen at 934 mln dlrs in 1987. It was 696 mln dlrs in 1986. Reuter 24-APR-1987 23:25:29.64 interest hong-kong RM f2806reute u f BC-HONG-KONG-BANKS-LEAVE 04-24 0073 HONG KONG BANKS LEAVE INTEREST RATES UNCHANGED HONG KONG, April 25 – The Hong Kong Association of Banks said it decided to leave interest rates unchanged at today’s regular weekly meeting. Current rates are savings accounts and 24-hours two pct, seven-day call, one and two-weeks 2-1/4 pct, one and two months 2-3/4 pct, three and six months 3-1/4 pct, nine months 3-1/2 pct and 12 months four pct. Prime rate is 6-1/2 pct. REUTER 31-MAR-1987 605:12:19.12 hong-kong F f0391reute u f BC-KUMAGAI-GUMI’S-UNIT-S 03-31 0107 KUMAGAI GUMI’S UNIT SEEKS LISTING IN HONG KONG HONG KONG, March 31 – A subsidiary of the Japanese construction group Kumagai Gumi Co Ltd is seeking to float its shares on the Hong Kong Stock Exchange, merchant banking sources said. They said has appointed , and as arrangers for the flotation. But they declined disclosure of any further details. A spokesman of Cheung Kong (Holdings) Ltd told Reuters the group’s chairman Li Ka-shing also will take a 10-15 pct stake in Kumagai Gumi (Hong Kong). He said the privately held

  • will receive a certain number of shares in Kumagai Gumi (Hong Kong) for injection into the company and up to 50 pct interest in a 520 mln H.K. Dlr worth property project at Hong Kong’s New Territories. But he added the Cheung Kong group will have no interest in the construction firm. REUTER 26-APR-1987 00:13:33.63 money-supplycpi west-germany RM f0001reute u f BC-BUNDESBANK-AIMS-FOR-T 04-26 0099 BUNDESBANK AIMS FOR TIGHT MONEY POLICY – SCHLESINGER FRANKFURT, April 26 – The Bundesbank is trying to keep monetary policy tight in order to counter inflationary tendencies, Bundesbank Vice-President Helmut Schlesinger was quoted as saying. “We are trying to keep the monetary framework tight, so that inflationary pressures cannot develop,” he told the Frankfurter Neue Presse daily in an interview. “Central bank money stock does not have to be reduced because of this, but it must continue to grow modestly,” he said. Bundesbank spokesmen were not available for comment. On Thursday Schlesinger said in a contribution to the Handelsblatt daily that the accommodative monetary stance in West Germany caused by outside pressures could not determine policy in the long term. The improvement in West German terms of trade, providing room for non-inflationary expansion of domestic demand in excess of output growth, put the overshoot of central bank money stock in a more positive light, he said on Thursday. Central bank money stock, the Bundesbank’s main monetary measure, was growing at an annual rate of 7.3 pct in March, above the 1987 three-six pct target range. Money stock overshot the 3.5-5.5 pct 1986 growth target. Schlesinger told the Frankfurter Neue Presse that the phase of falling prices was over in West Germany. Prices might still be lower on a comparison with their level one year earlier. But the cost of living index has risen to 120.7 in March from its November 1986 low of 120.0, expressing a slight rise in prices, Schlesinger said. In March the cost of living was steady against February but 0.2 pct below March 1986. Schlesinger said a rise of between one and 1.5 pct during 1987 would be acceptable, and effectively mean price stability. Agreements so far in the current West German wage round are neutral as far as inflation is concerned because of the strength of the mark, Schlesinger said. Wage agreements in the public service and engineering industry were relatively high in view of the stable cost of living. But the higher costs would be compensated for, he said. “I am thinking above all of the fact that in the course of this year we will in all probability have a stronger mark against other currencies than last year,” he said, adding “Without this mark revaluation effect, we would have had to say that the wage rise agreements were not neutral for prices.” Schlesinger said exchange rate movements had increased the scope for redistributing wealth this year, but this development was unlikely to continue in 1988. “For this reason I cannot comment on that part of the engineering agreement which covers the coming years,” he said. Some 2.3 mln workers for the public services received a 3.4 pct pay rise from January 1. An agreement for four mln engineering workers raised pay by 3.7 pct from April 1, and then raises pay by another two pct from April 1, 1988 and by 2.5 pct from April 1, 1989. The engineering agreement also cuts the working week by 1-1/2 hours to 37 hours in two stages. REUTER 26-APR-1987 00:24:03.40 trade japan nakasone RM f0006reute u f BC-NAKASONE-ADVISED-TO-E 04-26 0104 NAKASONE ADVISED TO EXPAND PURCHASES ABROAD TOKYO, April 26 – Prime Minister Yasuhiro Nakasone was advised to work out a plan for his government to buy more than one billion dlrs worth of foreign industrial products as part of efforts to defuse Japan’s trade frictions with the United States, officials said. Former Foreign Minister Shintaro Abe made the recommendation at a meeting with Nakasone soon after returning from a U.S. Visit designed to pave the way for the prime minister’s visit to Washington starting next Wednesday. Abe met President Ronald Reagan and U.S. Congressional leaders during his visit. It was not known how Nakasone responded to the suggestion. It also included increasing the nation’s untied loans to developing countries to between 25 billion and 30 billion dlrs over the next three years and giving foreign firms greater access to a six billion dlr international airport project in western Japan, officials said. Abe called for tax cuts and government funds to be funneled into public works projects to stimulate domestic demand. Abe spoke of the possibility that Nakasone’s visit could coincide with the passage of a protectionist trade bill by the U.S. House of Representatives. REUTER 26-APR-1987 01:21:08.89 japan de-clercq ec RM f0020reute u f BC-EC-SAYS-JAPAN-CAR-EXP 04-26 0108 EC SAYS JAPAN CAR EXPORT RESTRAINT NOT ENOUGH KASHIKOJIMA, JAPAN, April 26 – Japan”s 1987 car export restraint to the European Community (EC) is not enough, EC external trade chief Willy de Clercq said. There are also strong signs Japanese exporters are diverting cars to the EC after the dollar”s fall against the yen made their U.S. Market unprofitable, he told reporters after meeting U.S., Japanese, and Canadian trade ministers. The EC has agreed that if it detects an abnormal diversion in Japanese exports from the U.S. To the EC market due to currency movements over the past two years, it will move to prevent it, he said. Over the period, the yen has risen against the dollar almost eight times as fast as against the European Currency Unit, he said. Japan has set an unofficial, voluntary 10 pct rise in car exports to the EC this year as part of its efforts to stop its rising trade surplus with the Community, which hit a record 18 billion dlrs last year. But Japanese car exports to the EC so far this year jumped over 30 pct compared to a drop of 17 pct in U.S. Sales, and a seven per cent fall globally. “We think there is some diversion there,” said de Clercq. Japanese officials say the overall annual rise will be only 10 pct. “But even 10 pct is 100,000 cars, whereas we sell only 40,000 cars to Japan (per year) in total,” he said. The EC is also demanding that Japan ease its strict checks and requirements for imported cars, which Brussels says is a non-tariff barrier. The EC is also worried because EC demand for cars is falling this year, making any rise in Japanese imports even more serious for EC auto manufacturers. De Clercq, who has taken a hard line on world trade problems at this weekend meeting in central Japan, said the EC appreciated Japan”s plans to cut exports and lift domestic growth instead. “But even if all these measures are implemented, it will take time. But there is not time,” he said. “There are burning issues on the table which cannot wait. It were better that the fire were put out immediately and not to wait till the house burns down,” he said. REUTER 26-APR-1987 01:32:34.09 money-fx uae gcc RM f0024reute u f BC-UAE-TO-COORDINATE-EXC 04-26 0116 UAE TO COORDINATE EXCHANGE RATES WITH GCC ABU DHABI, April 26 – United Arab Emirates (UAE) Central Bank Governor Abdel Malik al-Hamar said any changes in the UAE”s exchange rate policy would be carried out in conjunction with other Gulf Cooperation Council (GCC) countries. In a speech opening a seminar on Arab exchange rate policies, he noted the UAE had not changed the value of the dirham against the U.S. Dollar since 1980 despite wide fluctuations in the latter”s value against other currencies. “The exchange rate policy of the dirham has realised its goals in the past and changes in this policy depend on coordination and cooperation with other GCC countries,” he said. The GCC states — the UAE, Saudi Arabia, Bahrain, Qatar, Oman and Kuwait — have agreed in principle to link their currencies to a common grid. Their currencies are now linked either to the dollar, IMF special drawing right (SDR) or, in the case of Kuwait, a trade-weighted basket of international currencies. The UAE dirham can fluctuate within a band of 7.25 pct higher or lower than 4.7619 to the SDR but has been fixed at 3.671 to the dollar since November 1980. REUTER 26-APR-1987 01:41:57.71 francepakistan worldbank RM f0026reute u f BC-WORLD-BANK-AGREES-2.4 04-26 0101 WORLD BANK AGREES 2.4 BILLION DLR PAKISTAN AID PARIS, April 26 – The World Bank, citing Pakistan”s progress in its economic performance and fiscal policy reforms, said it had agreed a 2.4 billion dlr aid programme for 1988. The bank said in a statement “substantial increases” had been approved to help fund support for refugees from neighbouring Afghanistan. But the bank said it had expressed serious concern at Pakistan”s budget. “This year”s overall budget deficit is expected to be larger than either either last year”s outcome or the amount originally budgeted (for 1987),” it added. REUTER 26-APR-1987 01:54:30.41 tradegrainwheat japancanadausaaustralia ecoecd C G L M T f0027reute u f BC-TOP-NATIONS-AGREE-OVE 04-26 0114 TOP NATIONS AGREE OVER FARM TRADE ISSUE KASHIKOJIMA, JAPAN, April 26 – Ministers from the major trading nations have for the first time made a concerted commitment to review the whole distorted structure of world farm trade, Canadian Trade Minister Patricia Carney said. “We think we can get some movement on this,” she told reporters at a briefing following informal talks with the U.S., Japanese and European Community (EC) trade ministers here. Canada, strongly supported by Australia, has championed the cause of both developed and developing nations which have seen their farm trade suffer largely due to a farm subsidy war between the United States and the EC. Japan”s protected agricultural markets have also attracted criticism. The issue is of extreme importance to many indebted, developing nations which often rely totally on one or two farm sector exports to sustain their economies but which cannot compete with the subsidised U.S. And EC products. “Canada can afford so many billions of dollars (to do so), but many countries cannot,” said Carney. She said the EC had changed its previous unhelpful attitude and had raised proposals similar to those of Canada under which to discuss the issue. Talks will now continue at the Organisation of Economic Cooperation and Development (OECD), which meets next month, and at the series of discussions on a new world trading framework, begun at Punta del Este, Uruguay, last year. Carney said Japan had also agreed to take a positive role in the farm talks, and that the United States was willing to see short-term progress, as long as long-term solutions were not affected. Canada”s five point programme demands that farm product prices must reflect open world market prices, that any support for farmers incomes should not be linked to production incentives, that there should be no new farm subsidies, no new farm import barriers, and that any decisions should be implemented collectively. The farm trade problem was almost completely ignored by the industrialised world until Canada raised it last year at the Tokyo summit of seven leading industrial powers. The distortions created by subsidies and protectionism have created some absurd situations. For example, to protect its farmers the Japanese government buys Canadian wheat and sells it at 10 times the purchase price to Japanese consumers. “So we end up borrowing in the Japanese (financial) market to help pay subsidies to keep our farmers while they make a profit on our wheat to help pay the price support for their farmers,” said Carney. The problem causes pain for many nations and increases the already dangerously high debts that they owe mainly to U.S., Japanese and EC banks. REUTER 26-APR-1987 02:25:43.49 crude qatar opec RM f0032reute u f BC-QATAR”S-BANKS-SET-FOR 04-26 0105 QATAR”S BANKS SET FOR FURTHER LEAN SPELL By Stephen Jukes, Reuters DOHA, April 26 – Bank profits in the Gulf oil state of Qatar are coming under renewed pressure and foreign banks are retrenching further in one of the region”s most overbanked markets. Results for 1986 show a year of declining profit for several foreign banks, although locally-owned operations were in some cases able to cushion the drop by increasing market share. “s (QNB) General Manager, Abdulla Khalid al-Attiya, said: “The economy is not improving as we hoped… 1987 will be another difficult year for the banks.” Oil-dependent Qatar, with a tiny indigenous population of 60,000 to 80,000 and an expatriate workforce estimated at about 280,000, boasts five local banks and 10 foreign bank operations. Local and foreign bankers in the capital said the Gulf-wide recession, aggravated this year by Qatar”s severe difficulty marketing its crude oil at official OPEC prices, has taken a heavy toll on the economy and bank profitability. As a result, the only U.S. Bank, , is thought to be negotiating to sell its operation to the fast growing locally based which only started operations in 1984, bankers said. Citibank would not comment. Other foreign banks have retrenched, with cutting staff and others expected to follow. is examining a change in its status to admit 51 pct Qatari ownership in a bid to improve its access to local business, bankers said. One banker added: “Weak profits are here to stay for the time being. There is no cause for optimism at the moment.” Sentiment had picked up briefly at the end of last year when OPEC reached its accord to curb oil output and return to fixed prices. However, it soon became apparent that Qatar was having difficulty selling oil at OPEC prices. The soft spot oil market has left official Qatari crude prices 20 to 40 cents more expensive and sales have been running in recent weeks at 100,000 and 120,000 barrels per day, well down on the nation”s OPEC quota of 285,000, oil sources said. Bankers said this serious shortfall in Qatar”s revenue has led to a new spate of payments delays from the public sector to private contractors after a marginal improvement in January. Loan loss provisions continued to eat into bank profits last year, as did the introduction of minimum reserve requirements by the Qatar Monetary Agency. Trade financing has almost dried up as a traditional source of bank income. Of the local banks, QNB conducts the bulk of the government”s business and subsequently enjoys a huge advantage its rivals cannot expect to match, bankers said. The bank reported a 2.9 pct rise in net 1986 profit to 93.1 mln Qatari riyals, while its balance sheet grew by 10.8 pct to 9.0 billion, making it by far the largest bank in Qatar. But the strong assets growth partly reflected bridging loans for the public and private sector to tide government departments and local business over the lean economic spell, Attiya said. “Generally speaking, we are overbanked in Qatar,” he said, echoing a widespread feeling in the banking community. Other local banks fared less strongly. The second largest, , reported a 13 pct drop in net profit to 27.5 mln riyals, while , registered a decline to 18.5 mln riyals from 19.4 mln in 1985. The newcomer Al Ahli Bank, continued to expand rapidly and reported net profit of 5.2 mln compared with 3.3 mln during the start-up period from August 4, 1984 to end-1985. Bankers said the local banks had clearly begun to win commercial deposits previously held by foreign banks, increasing already strong pressure on non-Qatari banks to reexamine their staffing levels and overheads. recorded a net loss at its Doha branch last year of 4.7 mln riyals after registering a nominal profit in 1985 of 12,000 riyals. Two other long-established banks in the Gulf, the (BBME) and Standard Chartered, also found last year a difficult climate to make strong profits. BBME”s net profit fell to 3.2 mln riyals from 10.4 mln in 1985, but Assistant Manager John Farquharson said 1985″s result had been artificially inflated by tax rebates on provisions. “Foreign banks are seeing their assets decline, while local banks are increasing their market share,” Farquharson said. BBME”s operating profit was steady in 1986, edging up to 12.3 mln riyals from 11.5 mln in 1985. “We are expecting the same level of operating profit in 1987,” Farquharson said. Standard Chartered”s net profit last year recovered slightly to 1.6 mln riyals after a loss of 161,000 in 1985. Staff numbers were cut last year to reduce overheads. Bankers said the lack of new construction projects in Qatar means business is unlikely to pick up this year although hopes are rising that the start of Qatari gas exploitation could provide a boost. But the threat of higher U.S. Interest rates may erode bank deposits as savings are moved offshore. REUTER 26-APR-1987 04:21:41.57 money-fxdlrinterest japanusa corrigan RM f0041reute u f BC-U.S.-CENTRAL-BANKER-O 04-26 0112 U.S. CENTRAL BANKER OPPOSES FURTHER DOLLAR FALL OSAKA, JAPAN, April 26 – New York Federal Reserve Bank President Gerald Corrigan opposed a further fall in the value of the dollar but refused to say whether U.S. Interest rates would be raised to protect the currency. “A further decline in the dollar or appreciation of the yen at this juncture I would regard as counterproductive,” he told a news conference. His comments echoed those made last week by U.S. Treasury Secretary James Baker, who also warned against a further dollar fall. The U.S. Currency plunged to a post-war low below 140 yen last week, despite dollar-buying by a number of central banks. Currency speculators and investors are convinced that a further dollar fall is needed to help reduce the huge U.S. Trade deficit, dealers said. The only thing likely to help the dollar is seen as a rise in U.S. Interest rates. Corrigan refused to say whether the U.S. Was ready to risk damaging its economic recovery by raising interest rates. The dollar”s sharp drop this month has also raised questions about the usefulness of recent meetings of the Group of Seven. But Corrigan said: “They have played a constructive role in so far as the broad objective of facilitating a higher degree of economic policy coordination.” REUTER 26-APR-1987 04:35:07.82 trade usa reagannakasone RM f0043reute u f BC-REAGAN-WARNS-CONGRESS 04-26 0110 REAGAN WARNS CONGRESS ON PROTECTIONISM WASHINGTON, April 26 – President Reagan warned the U.S. Congress in his weekly radio address against passing what he called dangerous, protectionist trade legislation that would tie his hands in trade negotiations with Japan and other countries. Reagan, who will hold talks with Japanese Prime Minister Yasuhiro Nakasone here this week, said he would lift tariffs imposed last week against some Japanese products as soon as Tokyo complied with a U.S.-Japanese pact on semiconductors. U.S. Officials gave the same message to former Japanese Foreign Minister Shintaro Abe in meetings in Washington last week. In his weekly radio address on Saturday, Reagan said he would tell Nakasone: “We want to continue to work cooperatively on trade problems and want very much to lift these trade restrictions as soon as evidence permits. Reagan said the 100 pct tariffs he imposed on some 300 mln dlrs worth of Japanese goods was a special case of trade retaliation and did not signal a shift in what he called his staunch anti-protectionist policies. “In imposing these tariffs we were just trying to deal with a particular problem, not begin a trade war,” he said. But Congress is ready to approve tough trade legislation to try to turn round the record U.S. Trade deficit, which has cost millions of U.S. Jobs and closed thousands of factories. A vote on a trade bill sponsored by Congressman Richard Gephardt is expected to come during Nakasone”s visit. It would penalise nations with large trade surpluses and which are alleged to use unfair trade practices. Reagan warned Congress that such action would undercut his ability to negotiate on trade issues with Nakasone and others. “With my meeting with Prime Minister Nakasone and the Venice economic summit coming up, it”s terribly important not to restrict a president”s options in such trade dealings with foreign governments,” he said. “Unfortunately, some in the Congress are trying to do exactly that,” he said. Reagan said he would keep the American people “informed on this dangerous legislation because it”s just another form of protectionism and I may need your help to stop it.” REUTER 26-APR-1987 04:56:51.37 trademoney-fxdlr japanusacanada tamurade-clercqyeutter ec RM f0047reute u f BC-TRADE-MINISTERS-SAY-G 04-26 0089 TRADE MINISTERS SAY GOVERNMENTS NEED CREDIBILITY By Eric Hall, Reuters KASHIKOJIMA, Japan, April 26 – Four trade ministers ended a weekend meeting with a frank confession that their governments are losing credibility in world financial markets and will not regain it until they back their promises over trade and currencies with action. “Until today we have anounced policies, but when it came to action required it was done in a way that satisfied nobody,” Japanese Trade Minister Hajime Tamura told a news conference. “From now on, if a government comes up with a certain policy, it must be followed by action,” he said following two days of informal talks with the trade ministers of the United States, the European Community and Canada in central Japan. Last week, the dollar fell to a new record low below 140 yen, despite statements from the Group of Seven (G-7) leading industrial powers that currencies should be stabilised to underpin world trade. “We need credibility to gain confidence. When we have confidence, then we can have an impact,” said Tamura. His colleagues agreed that when major trade nations fought over trade issues while calling for each other to honour free trade rules in general, it was not a sight which inspired confidence in the markets. “The time has come now to act in step with the talk. If you belong to a club, you have to act in concord with the rules, if you want to be credible,” said EC external trade chief Willy de Clercq. Canadian Trade Minister Patricia Carney also agreed: “We are meeting in a time of great trade tension. What the world needs to see is that we have the political will to deal with these problems we face.” She said that next month”s meeting of the Organisation of Economic Cooperation and Development and the meeting of leaders of the G-7 nations in Venice in the summer would be a forum to show this will existed. U.S. Trade Representative Clayton Yeutter reminded the news conference that the results of such high level meetings could lead to action which would only have an effect on smoothing out world trade imbalances perhaps years later. “The media typically has a tendency to evaluate meetings like this in terms of tangible results. That is not the way it should be pursued,” he said. “What is achieved in an intangible way almost always exceeds what is achieved in a tangible way,” he said. Progress in personal contacts and understanding each others” positions and policies was just as important toward reducing trade tensions, he said. Tamura read out an agreed summary of the joint talks: Currency stability was now essential, but currency movements alone would not correct a U.S. Trade deficit with Japan which hit 58 billion dlrs last year, an 18 billion dlr EC deficit with Japan in 1986, and a Japanese global trade surplus of almost 90 billion, he said. Trade retaliation, protectionism, and forcible export restraints which lead to a shrinkage in world trade flows were most dangerous, he said. The imbalances can only be solved by coordinated policies over a whole range of fiscal, monetary, trade and industrial measures, and in line with a body of internationally agreed rules, he said. In this regard, the policing role of the Geneva-based General Agreement on Tariffs and Trade world trade body must be strengthened, he said. The ministers reconfirmed their individual promises to solve the problem. The United States will try to reduce its large budget deficit and restore competitiveness within its industries. Japan will introduce early and effective measures to expand its domestic growth and rely less on exports. The EC must continue efforts for balanced growth and reduced unemployment. All felt satisfied at the new progress in the Canadian economy. REUTER 26-APR-1987 05:35:00.34 belgiumluxembourg ec C G L M T f0056reute u f BC-EC-FARM-MINISTERS-TO 04-26 0107 EC FARM MINISTERS TO RESUME PRICE TALKS BRUSSELS, April 26 – European Community (EC) agriculture ministers resume discussions in Luxembourg tomorrow on tough 1987/88 farm price proposals from the bloc”s executive Commission with only thin hopes of reaching a quick agreement. Their current chairman, Belgium”s Paul de Keersmaeker, promised at the end of the group”s last meeting that if agreement appeared in sight this week, he would keep his colleagues at the negotiating table for long days and nights. But one diplomat told journalists: “I don”t think you need to worry about that. We are a long way from the crunch yet.” The commission has tabled a series of proposals which farm experts say would together amount to the most swingeing attack on overspending on the bloc”s Common Agricultural Policy, and the biggest blow to farmers” incomes, in years. As well as cuts in common farm prices of 2.5 pct in the key cereals sector, quality standards for farm goods sold into EC surplus stores would be raised and the period of the year when such sales were allowed restricted. The experts say prices received by farmers would be cut by over 10 pct for many crops if such measures were agreed. The effects, however, would be mitigated by Commission proposals unveiled on April 14 for generous cash grants to farmers worst hit by the struggle to curb EC food surpluses. When ministers met on March 30 and 31 in Brussels for initial discussions on the farm price package, several, notably France”s Francois Guillaume and West Germany”s Ignaz Kiechle, said the proposals were unacceptably tough. Only the Dutch and British delegations gave general support to the Commission line that such drastic measures were necessary to curb surplus food production in the EC and to reduce the massive cost of the CAP. But even then, the British are among several delegations which oppose the Commission”s controversial plan to raise two billion European Currency Units through a tax on imported and EC-produced oilseeds and fats. In order to seek common ground, de Keersmaeker plans to spend the whole of tomorrow in bilateral meetings with each of his colleagues in turn. Diplomats said although the ministers will meet together on Tuesday, de Keersmaeker is likely to conclude that further talks at the level of officials are necessary and that the hard bargaining will have to wait until May. REUTER 26-APR-1987 05:36:58.42 money-fxinterest bahrainsaudi-arabia RM f0057reute u f BC-SAUDI-RIYAL-DEPOSITS 04-26 0087 SAUDI RIYAL DEPOSITS STEADY IN DULL MARKET BAHRAIN, April 26 – Saudi riyal interbank deposits were mainly steady at yesterday”s higher levels in a market which saw little activity due to the European weekend, dealers said. They said banks in the kingdom offered two and three month deposits 1/16 of a percentage point lower, but there were few takers. Rates for short-dated and other fixed period funds were little changed following their sharp rise on Saturday brought on by higher eurodollar deposit rates. Spot-next and one-week deposits were relatively unchanged at 6-3/4, 1/2 pct. One-month deposits were steady at 6-3/4, 1/2 pct while three-month funds eased to 6-7/8, 5/8 pct from 6-15/16, 11/16. Six-month deposits also declined marginally to 7-5/16, 7-1/8 pct from quotes of 7-3/8, 1/8 at the close of trade on Saturday. The spot riyal was steady at 3.7499/7504 to the dollar. REUTER 26-APR-1987 06:24:19.96 trademoney-fxdlr japanusaukcanadafranceitalywest-germany RM f0062reute u f BC-G-7-OFFICIALS-TO-DECI 04-26 0104 G-7 OFFICIALS TO DECIDE ON SUMMIT AGENDA OSAKA, Japan, April 26 – Senior officials from the Group of Seven (G-7) countries will meet next week to decide an agenda for the body”s June summit scheduled to be held in Venice, Japanese officials said. The meeting will provide senior government officials with their first chance to discuss the recent sharp drop of the dollar, although the main focus of the gathering is longer term, they said. Deputy Finance Ministers, including Japanese Vice-Finance Minister Toyoo Gyohten, will attend. The meeting will be held in Italy, they said, but gave no other details. The leaders of the G-7, the United States, Britain, Canada, France, Italy, Japan and West Germany, are expected to discuss ways of improving economic policy coordination in Venice. The hope is that increased coordination will help reduce the huge imbalances in world trade and calm volatile currency markets. But economists say the strategy has so far not worked. Japanese officials admitted there is little more they can do on their own to stem the dollar decline, which last week saw the currency plunge to a post-war low below 140 yen. The officials said they expected sentiment against the dollar to change soon, once the U.S. Trade deficit starts to fall and the Japanese surplus begins to shrink. “We have already seen some signs of improvement (in the trade picture), but the market does not appreciate it yet,” one said. Last week”s passage of the Japanese government budget by parliament”s Lower House also paves the way for Tokyo to take additional action to stimulate its sagging economy and boost imports, the officials said. REUTER 26-APR-1987 06:44:58.79 gnp luxembourgukfrancewest-germany delors ec RM f0065reute u f BC-EC-MINISTERS-LIKELY-T 04-26 0110 EC MINISTERS LIKELY TO CRITICISE FINANCE IDEAS LUXEMBOURG, April 26 – Plans for a new-style European Community (EC) free of damaging budget wrangles receive their first full review from EC foreign ministers today, but are unlikely to gather much support. Diplomats said key EC capitals would voice strong criticism of proposals that would lead to a sharp increase in EC budget payments by bringing member states” contributions more into line with national wealth. They said the EC”s current paymasters, Britain, France, and West Germany, would lead the opposition to the plans, designed to enable the community meet the challenges of the 1990s. Faced with a budget deficit this year of at least five billion dlrs, EC Commission President Jacques Delors called in February for a radical overhaul of the EC financing system. Such action was necessary, he argued, to end a damaging cycle of annual budget crises and ensure cash for technological research programs and regional and social spending projects. Ironically, diplomats said, the move could spark exactly the type of row it was intended to avoid with industrially developed northern states demanding assurances the new cash would not be swallowed up by the poorer southern members. Delors” plans, by linking a country”s contributions to its Gross National Product (GNP), would over the next five years add some 18 billion dlrs to the present budget of 34 billion. Currently, contributions are calculated on a percentage of Value Added Tax (VAT) returns. Under the new scheme, all countries would pay one pct of their VAT receipts to Brussels. Extra cash would then be raised in line with needs by a levy on the difference between a country”s total VAT receipts and its GNP. London is one of the most resolutely opposed countries to the scheme, arguing instead that money should be made available from deep cutbacks in the EC”s heavily-subsidised farm sector. Unofficially many EC capitals secretly support the wearisome budget wrangling, taking the line that the highly diverse 12-nation Community can only take tough decisions when forced to do so. The issue is further complicated by a possible general election in Britain and acceptance that the EC problems cannot seriously be addressed by London until those polls are out of the way. REUTER 26-APR-1987 07:50:48.05 japanchinataiwanussrusavietnamsouth-koreaphilippines adb-asia RM f0069reute u f BC-ADB-DELEGATES-GATHER 04-26 0100 ADB DELEGATES GATHER IN JAPAN AMID CONTROVERSY By Chaitanya Kalbag, Reuters OSAKA, Japan, April 26 – Delegates from 46 countries are gathering for the 20th meeting of the Asian Development Bank (ADB) amid concern over the bank”s role in aiding regional development. The three-day meeting, the first to be held in Japan since the bank”s inaugural meeting in Tokyo in 1966, will open tomorrow with political controversy dogging its heels. Taiwan, one of the ADB”s founders, will boycott the meeting for the second year in succession in protest against China”s admission last year. Taiwan, which borrowed only 100 mln dlrs or 0.51 pct of the ADB”s total lending of 19.4 billion dlrs over the past 20 years, is staying away because its name was changed by the bank to “Taipei, China.” But the boycott is likely to be overshadowed by the presence of communist giants China and the Soviet Union. Moscow is attending an ADB meeting for the first time in what is widely seen as a first step to eventual full membership. China is expected to obtain its first loans from the bank in 1987. A senior ADB official said Peking, now the bank”s third largest shareholder after the United States and Japan, would also take one of the 12 seats on the bank”s board of governors. The official, who declined to be identified, expected sparks to fly when governors met in formal session on Tuesday. He said calls for expanded bank lending were expected from poorer countries in the Asia-Pacific region, hit by plunging commodity prices, tariff barriers in export markets, a growing resources crunch and balance of payments crises. But the U.S. Delegation was likely to repeat warnings ADB lending should stress quality over quantity, the official said. The debate over ADB lending is fuelled by the bank”s highly successful money management. With liquid reserves of about four billion dlrs, profits have been rising steadily and touched 287 mln dlrs last year. The key indicator of the ADB”s reduced role in regional development is its net transfer of resources — loan disbursements less repayments made by borrowers — which fell sharply to 237 mln dlrs in 1986 from 421 mln in 1985. In 1986, the bank approved loans totalling two billion dlrs, but only to 19 of its 29 developing members. ADB chief economist Kedar Nath Kohli told Reuters the bank”s ordinary lending had declined each year since 1984. “I”m afraid if you exclude India and China, it”s going to go down even further in 1987,” Kohli said. Kohli said developing countries in the region were entering a period of painful adjustments. He said one country that seemed to be on the right track was South Korea, which had bucked the regional trend of rising indebtedness by cutting its foreign debt by about two billion dlrs last year. One country that has complained about the ADB’s lending policies is Vietnam, which charged at last year’s meeting that the bank had cut off its aid on political grounds. The bank abruptly halted loans to Hanoi after the fall of the Saigon government in 1975. Despite Moscow’s presence, however, the bank is not expected to change its Vietnam policy. The Philippines, the ABD’s second-largest borrower in 1986 with loans totalling 316 mln dlrs, is happy with the bank’s role. Finance Minister Jaime Ongpin told Reuters he expected the figure would reach roughly the same level this year. REUTER 26-APR-1987 20:39:56.64 money-fxdlr japan RM f0108reute b f BC-BANK-OF-JAPAN-INTERVE 04-26 0090 BANK OF JAPAN INTERVENES IN TOKYO BUYING DOLLARS TOKYO, April 27 – The Bank of Japan intervened buying dollars shortly after the opening of 137.70 yen, dealers said. Strong selling from life insurance companies and investment trusts pressured the dollar downward, but the U.S. Unit steadied on profit-taking buying by petroleum companies and intervention by the central bank. The dollar’s upward potential looks limited as forward dollar selling by exporters for commercial purposes is expected above 137.80, dealers said. REUTER 26-APR-1987 22:02:13.59 money-fxdlryen japan sumita RM f0133reute b f BC-SUMITA-SAYS-FURTHER-Y 04-26 0118 SUMITA SAYS FURTHER YEN RISE UNLIKELY – JIJI PRESS OSAKA, April 27 – Japan’s Jiji Press quoted Bank of Japan Governor Satoshi Sumita as telling Japanese reporters the central bank will continue determined market intervention to prevent a further rise in the value of the yen. Sumita, who is attending an annual meeting of the Asian Development Bank, also said he does not think the yen will continue to rise, Jiji reported. He said the Bank of Japan is keeping close contact with other major industrial nations on concerted market intervention, Jiji said. He said coordinated intervention is the only way to stop the dollar from dropping too fast, Jiji said. The dollar fell below 138 yen today. REUTER 26-APR-1987 22:41:44.69 money-fxdlr japanwest-germany RM f0158reute b f BC-BUNDESBANK-INTERVENES 04-26 0089 BUNDESBANK INTERVENES IN TOKYO VIA BANK OF JAPAN TOKYO, April 27 – The Bundesbank intervened in the Tokyo foreign exchange market to buy a small amount of dollars against marks through the Bank of Japan, dealers said. The West German central bank bought dollars when the dollar was at about 1.7770-80 marks. Dealers’ estimates of the intervention amount varied from 100 mln to one billion dlrs. Some dealers said the Bank of Japan appeared to have undertaken small-lot mark-selling intervention on its own account. REUTER 26-APR-1987 22:49:27.79 money-fxdlr japan miyazawa RM f0164reute b f BC-MIYAZAWA-SAYS-POLICY 04-26 0107 MIYAZAWA SAYS POLICY COORDINATION KEY TO CURRENCY OSAKA, April 27 – Japanese Finance Minister Kiichi Miyazawa told a press conference the basic solution to currency instability among major nations is economic policy coordination. He said that is a time-consuming process as coordination does not always proceed in a way policy makers envisage. “That is democracy,” he said. Upon that foundation, Miyazawa said, there must be coordinated intervention. Major nations have sufficient funds to continue concerted intervention, he added. “Without doubt this set-up of coordinated intervention will continue to operate,” Miyazawa said. Miyazawa said Prime Minister Yasuhiro Nakasone and U.S. President Ronald Reagan are likely to reaffirm the Louvre and Washington Group of Seven (G-7) agreements on currency stability when they meet later this week. Asked whether the dollar is declining against all major currencies, not only the yen, Miyazawa declined to make any comments. He reiterated that many major nations have undertaken coordinated intervention in recent weeks to prop up the dollar, including countries who are not members of the G-7. REUTER 26-APR-1987 22:57:22.08 acq australia F f0173reute b f BC-CSR-PLANS-TAKEOVER-BI 04-26 0098 CSR PLANS TAKEOVER BID FOR MONIER SYDNEY, April 27 – CSR Ltd said it plans to offer 3.50 dlrs a share cum-bonus for all the issued capital of building products group Monier Ltd . The offer values Monier’s current issued capital of 156.28 mln shares at 547 mln dlrs and compares with the latest share market price of 2.80 dlrs, equal to last Friday’s close. Monier recently said it proposes to make a one-for-two bonus issue before June 30. CSR will shortly announce further details of the offer including a CSR share alternative, it said in a statement. CSR said it currently holds 323,000 Monier shares or only 0.21 pct of the company’s issued capital. Redland Plc , the holder of 49.87 pct of Monier, has agreed with CSR that Redland will not accept the offer for its stake initially, CSR said. Instead, CSR has granted Redland two alternative options, the first giving Redland the right to accept the CSR offer at the same price within six months of the closing date of the bid, the company said. The second grants Redland the option to increase its Monier holding to 50.1 pct in the same period. The second option is exercisable by Redland at 3.50 dlrs a share, CSR said. Both option deals are subject to the approval of Monier shareholders except CSR and Redland. As previously reported, Redland and Monier had been discussing a possible Redland bid for Monier but the talks broke off two weeks ago. CSR said Redland supports the CSR offer as a means of establishing a fruitful joint venture in building materials in which they both have interests. At the end of the offer, they will discuss how these interests may be developed. Redland has indicated that it would be prepared to consider at a later stage an increase in CSR’s Monier stake to enable it to become a CSR subsidiary, assuming Redland exercises the second option, CSR said. It said the offer is generous because it will give Monier shareholders a price equivalent to 16.8 times after-tax earnings in 1985/86 ended June 30, a 25 pct premium over Friday’s market price and a 125 pct premium over last reported net tangible asset backing per share of 1.57 dlrs. The offer is beneficial for both CSR and Monier shareholders, CSR’s chief executive officer Bryan Kelman said. “The acquisition will broaden CSR interests in building materials by the addition of complementary domestic and overseas businesses in concrete and clay tiles, metal roofing materials and concrete blocks and piping,” Kelman said in the statement. “Importantly, the acquisition will provide CSR with new growth opportunities in building materials both in Australia and overseas,” he added. Monier, which earned a net 32.49 mln dlrs in 1985/86, has operations in a number of countries, including the U.S., Japan, Britain and New Zealand, as well as Australia. REUTER 26-APR-1987 23:26:24.51 money-fxdlr japan RM f0189reute b f BC-CORRECTION—BUNDESBA 04-26 0048 CORRECTION – BUNDESBANK INTERVENES IN TOKYO In the Tokyo item “/BUNDESBANK INTERVENES IN TOKYO VIA BANK OF JAPAN,” please read in the second para: “Dealers’ estimates of the intervention amount varied from 10 mln to 100 mln dlrs.” Corrects figures from 100 mln to one billion dlrs. REUTER 26-APR-1987 23:32:09.99 japanussr adb-asia RM f0193reute u f BC-USSR-ATTENDS-ADB-MEET 04-26 0106 USSR ATTENDS ADB MEET, UNCERTAIN ON MEMBERSHIP By Rich Miller, Reuters OSAKA, Japan, April 27 – The Soviet Union is attending an Asian Development Bank (ADB) annual general meeting for the first time, but has not decided whether to apply for membership, a senior Soviet State Bank official said. “No specific plans exist for applying for membership,” Yurij Ponomarev, international managing director of the State Bank, told Reuters. “It’s too early to draw up any plans.” The USSR is attending the 20th meeting as an observer. “The sole purpose is to observe and collect information first hand,” Ponomarev said. He said the Soviet Union was responding to a long-standing ADB invitation to attend the meetings. “This is one of the fastest growing regions in the world,” the State Bank official said. “It is in our interest to have good contacts.” But those strengthened contacts will not be made at the expense of the Soviet Union’s other relationships, he said. Delegates here said the USSR move was connected to recent efforts to develop closer ties with Asia. The policy was announced last year by Soviet leader Mikhail Gorbachev in a speech at Vladivostok. Moscow’s decision to attend the meetings follows its application last year for membership of the General Agreement on Tariffs and Trade (GATT). Delegates said the USSR faces lacklustre growth and is searching for ways to boost its economy. Although the ADB said political ideology is not a critiera for membership, several delegates said politics would play a large role in any decision to allow Moscow to join. Moscow’s application would have to be approved by two-thirds of the board of governors representing three-quarters of the total voting power of member countries. The basic votes of the 47 members are all equal and total one-fifth of all votes. The remainder are proportional to the number of shares held by each member. Japan is the largest shareholder, at 15.1 pct, followed by the U.S. With 14.9 pct and China with 7.2 pct. The U.S. Has more than 12 pct of the total votes, insufficient to block a Moscow membership bid. Japanese officials said Tokyo has not decided its position regarding the possibility of Soviet membership and said they noted the Soviets had not yet made any move to join. REUTER 26-APR-1987 23:42:23.02 china G C f0201reute u f BC-RAINFALL-EASES-DROUGH 04-26 0103 RAINFALL EASES DROUGHT IN NORTH CHINA PEKING, April 27 – Spring rain in the last few days has helped ease a serious drought in most of north China, the New China News Agency said. It said rain fell in Peking, Shandong, Hebei, Henan, Shanxi, Shaanxi, Qinghai, Sichuan and parts of Inner Mongolia. It said the drought in Shanxi, north Hebei, north Shaanxi and Peking has basically ended. But snowfalls of 10 mm have affected spring sowing in Liaoning, struck by abnormally cold and warm weather since January, including rainfall 10 times more than normal in some places, it said, but gave no more details. REUTER 27-APR-1987 00:44:20.00 trade usajapan nakasonereagan RM f0017reute u f BC-U.S.-MAY-TELL-JAPAN-S 04-27 0112 U.S. MAY TELL JAPAN SANCTIONS CAN END – NY TIMES NEW YORK, April 27 – President Reagan is expected to tell Prime Minister Yasuhiro Nakasone this week that the U.S. May be able to lift trade sanctions against Japan by the end of June, the New York Times said. The newspaper, quoting administration officials, said that under such a scenario the President would announce just before the June 8-10 economic summit meeting in Venice that he hoped to lift the restrictions on electronics imports by the end of the month. Japan, for its part, would have to show that it had stopped underpricing semiconductors and had widened access in Japan for U.S. Chip producers. The U.S. Administration imposed 100 pct tariffs on 300 mln dlrs worth of Japanese color television sets, motorised tools and personal computers on April 17. Japanese officials have said Nakasone’s main demand when he arrives for talks with Reagan on Wednesday would be the immediate lifting of the tariffs. But with Congress planning further trade reprisals against Japanese trade policies, the end-of-June timeframe is seen as the best Reagan can offer, the Times said. It said some verbal formulation was expected to be found in a communique that would allow Nakasone to claim at least a modest victory. REUTER 27-APR-1987 00:48:57.77 japanphilippines ongpin adb-asia RM f0020reute u f BC-PHILIPPINES-TO-GET-30 04-27 0108 PHILIPPINES TO GET 300 MLN DLR JAPANESE LOAN OSAKA, Japan, April 27 – The Philippines has received a 300 mln dlr loan from the Japanese Export-Import Bank, Philippine Finance Minister Jaime Ongpin told Reuters. Ongpin said the loan, carrying interest of 5.5 pct a year, matches a 300 mln dlr economic recovery loan approved by the World Bank in March. Ongpin said Japanese Finance Minister Kiichi Miyazawa expressed satisfaction at the recent rescheduling of the Philippines’ 10.3 billion dlr foreign debt during a meeting here yesterday. The 14th yen aid package from Japan’s Overseas Economic Cooperation Fund was also discussed. Ongpin said the Japan is expected to respond favourably to a Philippine request to raise the aid level to between 75 and 80 billion yen. The aid package, originally scheduled for Japan’s 1986/87 fiscal year ended March, was delayed because of the Philippines’ change of government last year. “The Japanese have indicated we may not get as much as we are asking for in one big jump from the 13th yen package of 49 billion yen,” he said. “But they are likely to bring it up to that level for the 15th package.” Ongpin said Manila had 14 projects in the pipeline for the 14th yen package. “We are trying get the 15th package mainly in the form of untied commodity loans,” he said. Discussion on a Philippine request for 500 mln dlrs in soft loans to finance a land reform program, for which Japan is expected to supply most of the financing, had been put off until next month because of delays in preparatory work. Ongpin said he will make a strong pitch for the land reform program in his speech on Tuesday at the 20th annual meeting of the Asian Development Bank (ADB) here. Ongpin said the Philippines is very happy about the ADB’s support after President Corazon Aquino took over from deposed leader Ferdinand Marcos. “But I would like to see them push more aggressively in the field of lending to the private sector,” he said. The Philippines was the bank’s second-biggest borrower after Pakistan in 1986, with loans totalling 316 mln dlrs. Ongpin said he expects ADB lending to the Philippines in 1987 to reach the same level. “They have told us they can lend us two billion dlrs if we want. But we have to come up with the projects,” he said. REUTER 27-APR-1987 00:53:25.17 usaaustralia james-baker RM f0024reute u f BC-U.S.-TREASURY-SECRETA 04-27 0107 U.S. TREASURY SECRETARY CANCELS TRIP TO AUSTRALIA WASHINGTON, April 27 – U.S. Treasury Secretary James Baker has cancelled a trip to Australia because of pressing business at home, including the visit this week by Japanese Prime Minister Yasuhiro Nakasone, a Treasury spokesman said. The spokesman, who asked not to be identified, said, “I would not draw any conclusion from the cancellation … I would just say it’s the press of business.” He said Nakasone’s visit was “part of the press of business” but denied the cancellation was linked to the current turmoil in the financial markets. REUTER 27-APR-1987 01:08:32.41 indonesia G C f0034reute u f BC-STRONG-INDONESIAN-EAR 04-27 0104 STRONG INDONESIAN EARTHQUAKE LEADS TO FLOOD FEARS JAKARTA, April 27 – Fresh tremors hit the northern area of the Indonesian island of Sumatra after an earthquake measuring 6.6 on the Richter scale yesterday and local officials told Reuters they fear flooding after a dam was cracked. Contacted by telephone, they said the area around the town of Tarutung, south of the city of Medan and about 560 km west of Singapore, was shaken by more tremors this morning. The dam on the Sigeon river is leaking and there is a possibility of flooding if it rains in the next few days before repairs can be made, they said. REUTER 27-APR-1987 01:11:59.67 egyptusa imf RM f0036reute u f BC-EGYPT-SEEKS-ARAB-FUND 04-27 0097 EGYPT SEEKS ARAB FUNDS TO BUY ITS MILITARY DEBTS CAIRO, April 27 – Egypt is trying to persuade Arab states and banks to buy its military debts to the United States and other Western countries so it can repay them on better terms, an Egyptian official said. “We want the Arabs to buy the debt and reschedule it at a more reasonable interest rate of up to seven pct,” the official, who asked not to be named, told Reuters. Egypt owes the U.S. 4.5 billion dlrs in military debt and has failed to persuade Washington to reduce interest rates on it averaging about 14 pct. Eqypt also owes France an undisclosed amount, estimated by Arab diplomats at over two billion dlrs, and has not serviced the debt for over a year. Other military debts are owed to Spain, West Germany and Britain. The official said negotiations on the possibility of buying the debt have started, with approaches made to Kuwait and Saudi Arabia, but no firm decisions have been reached. The official also said the International Monetary Fund (IMF) and Egypt have agreed on certain economic reforms in return for emergency funds. An accord with the IMF would open the way for Cairo to reschedule its 40 billion dlr debt. The official said the IMF agreement requires Egypt to raise energy prices to international levels, unify its multi-tiered foreign exchange system and raise interest rates. “Egypt will seek loans from various countries immediately after the agreement with the IMF is signed,” he said. “If an Arab country buys part of the military debt or gives us guarantees, it will encourage banks to step in,” he added. REUTER 27-APR-1987 01:16:14.62 sugar pakistan T C f0040reute r f BC-FIRE-DAMAGES-PAKISTAN 04-27 0064 FIRE DAMAGES PAKISTAN SUGAR STOCK KARACHI, April 27 – A fire damaged a large stock of imported sugar stored in a customs warehouse at Karachi on Saturday night, customs officials said. They said the warehouse contained about 15,000 tonnes of sugar in 150,000 bags but they did not know how much had been destroyed or damaged. They said the cause of the fire was unknown. REUTER 27-APR-1987 01:18:54.86 interestgnp malaysia RM f0043reute u f BC-MALAYSIA-MAY-CUT-BASE 04-27 0097 MALAYSIA MAY CUT BASE LENDING RATE IN JUNE KUALA LUMPUR, April 27 – Malaysia may cut its base lending rate by 0.75 to one percentage point from a current 8.5 pct in June to stimulate economic growth, Finance Minister Daim Zainuddin said. The last cut, of 0.5 pct, was effected by banks and finance companies on April 1 following a Central Bank directive. The lending rate has been declining in recent months because the Central Bank has injected more funds into the economy, Daim told an assembly of the dominant Malay-based United Malays National Organisation party. Daim, who is also the party’s Treasurer General, said Malaysia’s gross domestic product growth in 1987 is likely to exceed the one pct forecast in his 1987 budget presented last year. He gave no details of the expected rise. GDP growth in 1986 was 0.5 pct. REUTER 27-APR-1987 01:28:05.50 jobs taiwan RM f0046reute u f BC-TAIWAN-UNEMPLOYMENT-F 04-27 0096 TAIWAN UNEMPLOYMENT FALLS IN MARCH TAIPEI, April 27 – Taiwan’s unemployment rate fell to 2.03 pct of the labour force in March from 2.37 pct in February and 2.79 pct in March 1986, the government statistics department said. A department official said the decline was due to rising employment in the manufacturing sector, including textiles and footwear. The unemployed totalled 163,000 in March against 193,000 in February and 216,000 in March 1986. The labour force fell to 8.03 mln in March from 8.14 mln in February and 7.74 mln in March 1986, it said. REUTER 27-APR-1987 01:29:37.16 gold japanaustralia RM M C f0047reute r f BC-JAPANESE-FIRMS-TO-SEL 04-27 0084 JAPANESE FIRMS TO SELL AUSTRALIAN GOLD COINS TOKYO, April 27 – Three Japanese trading companies and one coin retailer will start selling Australia’s Nugget gold coins in Japan from May 12 after actively buying at the first international trading of the coins last Thursday, officials involved in the sale said. They estimated Japanese companies bought 30 pct of 155,000 ounces sold on Thursday. The coins are likely to be sold in Japan at prices similar to the South African krugerrand. REUTER 27-APR-1987 01:31:05.62 nat-gas algeriausa F f0048reute u f BC-ALGERIA-SIGNS-MAJOR-L 04-27 0108 ALGERIA SIGNS MAJOR LNG DEAL WITH U.S. GROUP ALGIERS, April 27 – Algeria’s national petroleum agency Sonatrach and the U.S. Panhandle-Trunkline group signed a 20-year accord for the delivery of liquefied natural gas (LNG), the official APS news agency said. Deliveries will start next winter and rise over three years to reach 4.5 billion cubic metres annually, with 60 pct of the gas carried in Algerian ships to a terminal at Lake Charles, La., APS said. APS said the pricing formula will “preserve the purchasing power of LNG and the interests of Sonatrach, and take into account … The world (and) the American market.” The agreement follows months of negotiations between Panhandle Eastern Petroleum Corp and Sonatrach over the new LNG contract. The talks followed an accord in July 1986 which resolved a long-standing dispute between Sonatrach and Panhandle subsidiary after the U.S. Group unilaterally suspended purchases of Algerian LNG. REUTER 27-APR-1987 01:33:55.58 japan tse F f0050reute u f BC-FOREIGN-INVESTORS-NET 04-27 0082 FOREIGN INVESTORS NET SELLERS OF JAPANESE STOCKS TOKYO, April 27 – Foreigners were net sellers of Japanese stocks in the week ended April 17 for the seventh consecutive week, the Tokyo Stock Exchange said. Net sales were 112.15 billion yen against 105.80 billion the previous week. Overseas investors sold shares worth 727.08 billion yen on the Tokyo, Osaka and Nagoya Exchanges, down 5.3 pct from the previous week. They bought stock worth 614.93 billion yen, down 5.2 pct. REUTER 27-APR-1987 01:42:06.31 barbadosspain RM f0056reute u f BC-LATIN-AMERICAN,-SPANI 04-27 0109 LATIN AMERICAN, SPANISH BANK GOVERNORS TO MEET BRIDGETOWN, Barbados, April 27 – Central bank governors from Spain, Latin America and the Caribbean will meet here this week for two separate conferences on finance and monetary problems, the Central Bank of Barbados said. The 24th session of Central Bank governors of the American continent opens today for two days and the central bank governors of Latin America and Spain will hold a separate conference from April 29-30. Representatives of the Inter-American Development Bank, the International Monetary Fund and other international financial organisations will attend both conferences. REUTER 27-APR-1987 02:00:12.82 alumiron-steelpet-chem venezuelajapan RM M C f0063reute u f BC-VENEZUELA-FINANCE-MIN 04-27 0103 VENEZUELA FINANCE MINISTER TO SEEK JAPANESE CREDIT CARACAS, April 27 – Finance minister Manuel Azpurua said he will visit Japan in mid-May to seek new credits for planned expansion in Venezuela’s state-owned aluminum, steel and petrochemical industries. Azpurua told reporters he will be accompanied by central bank president Hernan Anzola and director of public finance Jorge Marcano. “The idea is to hold meetings with Japanese economic and financial authorities, with the banks which have business and credits in Venezuela and with some of the Japanese companies already active here,” Azpurua said. Azpurua said he was optimistic about the trip, in light of Japan’s recent announcement it will disburse 30 billion dlrs in new credit to Latin American countries. “I think this trip is being taken at an opportune time and will allow us to reveal the potencial which this country holds for the Japanese economic community,” Azpurua said. He would not say how much Venezuela will seek in credits from Japan. REUTER 27-APR-1987 02:21:13.19 ipiinventories japan RM f0073reute b f BC-JAPAN-INDUSTRIAL-PROD 04-27 0073 JAPAN INDUSTRIAL PRODUCTION RISES IN MARCH TOKYO, April 27 – Japan’s preliminary industrial production index (base 1980) rose 0.7 pct to a seasonally adjusted 122.8 in March from the previous month, the Ministry of International Trade and Industry said. Production had fallen 0.2 in Feburary from a month earlier. The preliminary, unadjusted March index fell 0.2 pct from a year earlier after remaining flat in Feburary. The adjusted March producers’ shipment index (same base) fell 0.6 to 117.3 from February. The unadjusted index rose 0.3 pct from a year earlier. The adjusted March index of producers’ inventories of finished goods (same base) rose 0.7 pct to 105.4 from Feburary. The unadjusted index fell 1.1 pct from a year earlier. REUTER 27-APR-1987 02:30:57.13 money-fxdlr japan RM f0077reute b f BC-BANK-OF-JAPAN-INTERVE 04-27 0075 BANK OF JAPAN INTERVENES IN TOKYO TOKYO, April 27 – The Bank of Japan intervened in the market, buying a moderate amount of dollars around 137.80-85 yen, dealers said. Some dealers noted talk that the Bundesbank intervened here directly buying dollars against marks, after reports that it intervened through the Bank of Japan in the morning. The dollar moved up on short-covering aided by the central bank intervention, they said. REUTER 27-APR-1987 02:37:14.92 money-fxdlr hong-kongusa RM f0079reute b f BC-BALDRIGE-SAYS-FURTHER 04-27 0057 BALDRIGE SAYS FURTHER DOLLAR FALL NOT PRODUCTIVE HONG KONG, April 27 – The U.S. Secretary of Commerce Malcolm Baldrige said a further decline of the dollar would not be productive. He told reporters here that Treasury Secretary James Baker “feels, and I feel the same way, that a further dollar fall would be counterproductive.” Baldrige also said governments cannot determine long-term currency exchange rates and that currencies would eventually reflect underlying economic fundamentals. The U.S. Commerce Secretary is in Hong Kong after stops in Peking and Seoul on an Asian trade tour. REUTER 27-APR-1987 02:42:56.63 japanusa F f0084reute u f BC-C.-ITOH-TO-BUY-CRAY-S 04-27 0109 C. ITOH TO BUY CRAY SUPERCOMPUTER TOKYO, April 27 – C. Itoh and Co Ltd said in a statement it has agreed in principle to buy a Cray Research Inc X-MP supercomputer worth 8.3 mln dlrs. The computer will be paid for and used by the Century Research Center (CRC), a research body specialising in civil engineering, in which C. Itoh has a 36.2 pct stake, a company spokesman said. The final contract will be signed on May 15 and delivery is scheduled for December this year. The U.S. Administration has been urging Japan to buy more U.S. Supercomputers to help relieve trade friction and reduce Japan’s trade surplus with the U.S. The supercomputer will the eighth such machine sold to a Japanese concern, the spokesman said. He said Cray has about 70 pct of the world supercomputer market but under 10 pct in Japan. Fujitsu Ltd dominates the Japanese market for such machines, industry sources said. Nippon Telegraph and Telephone Corp, which bought a Cray supercomputer in 1984 when it was publicly-owned, is the only government-owned entity to have done so. Trade Minister Hajime Tamura was quoted as saying last week that the government is considering buying U.S. Supercomputers. REUTER 27-APR-1987 02:44:18.17 money-supply china RM f0087reute u f BC-CHINA-CALLS-FOR-CAUTI 04-27 0115 CHINA CALLS FOR CAUTION ON NEW CREDIT INSTRUMENTS PEKING, April 27 – A Chinese newspaper said the country must be careful about introducing credit instruments to avoid the risk of an uncontrolled credit expansion. It said: “The introduction of credit, while undoubtedly facilitating business, could result in unhealthy expansion of the volume of money in circulation…” adding that the ordinary consumer must learn how to use credit wisely. The paper said in an editorial that “a sound approach and one that will not entail the risks of introducing uncontrolled expansion of credit into the monetary system is the present one of issuing renminbi in larger denomications.” Today, the first two of nine new bank notes, including notes for 50- and 100-yuan were introduced. The largest denomination had been 10 yuan. The paper said the new notes are necessary because of the rapid development of the economy, which has made it inconvenient to carry large amounts of cash in small denominations. Economists have been urging that personal cheques, buying on instalment, letters of credit and credit cards be introduced more widely, it added. REUTER 27-APR-1987 03:06:12.08 japanindia adb-asia RM f0117reute u f BC-INDIAN-BORROWING-FROM 04-27 0110 INDIAN BORROWING FROM ADB SEEN RISING By Chaitanya Kalbag, Reuters OSAKA, Japan, April 27 – India, which received its first loans from the Asian Development Bank (ADB) in 1986, expects to increase borrowing this year, an Indian official said. The official, a member of the Indian delegation at the ADB’s annual meeting here, told Reuters the bank is likely to approve three loans totalling between 350 and 400 mln dlrs in 1987, up from the 250 mln in two loans in 1986. The official said negotiations on a 100 mln dlr loan for the modernisation of the Haldia and Madras ports had been completed and only need approval by the bank’s board. The official said an ADB team is now in India for a survey of the second project involving imports of railway locomotives. He said the bank was also likely to extend a credit line to the Industrial Development Bank of India. The ADB in 1986 extended a 100 mln dlr line of credit to state-owned Industrial Finance Corp of India. The official said the ADB wants to gradually expand lending to India. “They (the bank) do not want their traditional borrowers from smaller countries in the region to get overwhelmed by (India and China),” he said. China is expected to receive its first ADB loan this year. “We are quite satisfied at having opened this new window in borrowing,” the official said. “Our projects are being vetted quickly. We have no complaints.” He said the ADB in any case would not be able to match Indian borrowing needs. “In fiscal 1986/87 ending June India will borrow two billion dlrs from the World Bank alone,” he said. “That represents the total ADB lending to all its borrowers in 1986.” The official said total Indian development assistance from multilateral and bilateral creditors is likely to total four billion dlrs in 1986/87. Asked to comment on U.S. Criticism of the quality of ADB lending, the official said: “The ADB is a regional bank and ought to have a better understanding of realities in Asia.” “You cannot apply World Bank conditionalities everywhere,” he said. “The U.S. Cannot impose one yardstick for every country.” REUTER 27-APR-1987 03:15:44.58 taiwanchina adb-asia RM f0135reute u f BC-TAIWAN-ACCUSES-CHINA 04-27 0098 TAIWAN ACCUSES CHINA OF UNDERMINING ITS ADB STATUS TAIPEI, April 27 – Taiwan accused China of trying to downgrade its international status by forcing the Asian Development Bank (ADB) to change its name in the organisation. Taiwan is boycotting the annual meeting of the ADB, which opened in Tokyo today, in protest at the Bank’s decision to change its name to “Taipei, China” from “Republic of China” after admitting China as a member. “It is a plot by China to downgrade Taiwan’s status in the organisation,” Foreign Ministry spokesman Cheyne Chiu told a news conference. REUTER 27-APR-1987 03:28:31.23 crude usa herrington RM f0153reute u f BC-U.S.-CONSIDERING-OIL 04-27 0107 U.S. CONSIDERING OIL INDUSTRY TAX INCENTIVES HOUSTON, April 27 – The Reagan Administration is considering tax incentives to boost oil output and restore 100,000 jobs, U.S. Energy Secretary John Herrington said. A tax credit for new exploration would be part of a package to bring 1,000 idle drilling rigs back into operation and raise domestic production by one mln barrels a day, he said. The tax status of exploration might also be changed, Herrington told reporters at the World Petroleum Congress. He said the oil industry was experiencing difficult times internationally and had been devastated in the United States. Consumer demand and a significant decline in domestic production has resulted in a rise in oil imports of one mln barrels a day in over the last 16 months, Herrington said. “Steps must be taken…To reverse the downturn in our domestic energy industry and to safeguard and increase our energy security,” he said. The administration is committed to improving marketplace conditions and incentives to spur exploration and development. “This commitment includes rejecting quick fix solutions, like an oil import fee, which are bad for the United States and bad for the world,” he added. REUTER 27-APR-1987 03:37:56.22 boptrade bangladesh RM f0166reute u f BC-BANGLADESH-PAYMENTS-D 04-27 0081 BANGLADESH PAYMENTS DEFICIT NARROWS IN NOVEMBER DHAKA, April 27 – Bangladesh’s overall balance of payments deficit narrowed to 3.03 mln U.S. Dlrs in November from 8.3 mln in October and 22.63 mln in November 1985, Central Bank officials said. The current account deficit increased to 28.68 mln dlrs in November against 10.69 mln in October and 55.19 mln in November 1985. The trade deficit rose to 88 mln dlrs from 36.36 mln in October and 86.2 mln in November 1985. REUTER 27-APR-1987 03:47:51.53 zinc netherlands C M f0181reute b f BC-WORLD-MARCH-ZINC-SMEL 04-27 0063 WORLD MARCH ZINC SMELTER STOCKS FALL 31,800 TONNES EINDHOVEN, April 27 – Total world closing stocks of primary zinc at smelters, excluding Eastern Bloc countries, fell 31,800 tonnes to 432,800 tonnes in March from a corrected February figure of 464,600 tonnes, provisional European Zinc Institute figures show. This compares with 403,300 tonnes in March last year. Total European stocks of primary zinc, excluding Yugoslavia, fell 10,100 tonnes to 149,900 tonnes in March from 160,000 tonnes in February, against 131,300 tonnes in March last year. REUTER 27-APR-1987 03:51:50.46 cpi venezuela RM f0185reute u f BC-VENEZUELA-PREPARING-N 04-27 0102 VENEZUELA PREPARING NEW WAGE, INFLATION PLAN CARACAS, April 27 – President Jaime Lusinchi is preparing an economic package in response to demands from organised labour in Venezuela for a general wage increase and controls on inflation, the state news agency Venpres reported. Venpres said the plan includes pay hikes and a “strategy against indiscriminate increases in prices or speculation.” The Venezuelan Workers Confederation (CTV), the country’s largest labour group, last week proposed a general wage increase of between 10 and 30 pct and a six-month freeze on consumer prices and on layoffs. The CTV asked Lusinchi to respond to its proposal before the May 1 Workers’ Day holiday. Labour’s demands comes as private economists forecast inflation will reach between 25 and 30 pct in 1987 as the country begins to feel the effects of the December devaluation of the bolivar by 100 pct against the dollar. Inflation increased 4.2 pct in the first two months of 1987, almost double the rate in the same 1986 period. Venpres said Lusinchi is prepared to approve some price increases, but intends to protect the public against speculation and indiscriminate hikes in the cost of living. REUTER 27-APR-1987 03:55:26.22 money-fxdlrinterest japanusa miyazawa RM f0189reute b f BC-MIYAZAWA-DOES-NOT-THI 04-27 0100 MIYAZAWA DOES NOT THINK DOLLAR IN FREEFALL TOKYO, April 27 – Japanese Finance Minister Kiichi Miyazawa told a parliamentary Upper House budget committee that he does not think the dollar is in a freefall. He said concerted intervention is only a supplementary measure to moderate volatility in exchange rates and repeated that policy coordination among major industrial nations is necessary. “We cannot expect currency stability only through coordinated market intervention,” he said. Miyazawa also told the committee the U.S. Has not called on Japan to cut its 2.5 pct discount rate. Miyazawa said the government is not considering investing in U.S. Government bonds to help stabilize exchange rates. This matter has to be dealt with carefully because it involves the public’s money and exchange rates are moving widely, he added. The ministry will consider where to invest its funds when exchange rates become stable, he said. Asked if Japan is considering a request to the U.S. For it to raise its discount rate to stabilize exchange rates, Miyazawa said the U.S. Has not been able to take action now because it has to maintain its economic growth. REUTER 27-APR-1987 03:59:25.25 sugar australia T C f0196reute u f BC-SOAKING-RAINS-BOOST-D 04-27 0103 SOAKING RAINS BOOST DRY AUSTRALIAN SUGAR CANE AREA SYDNEY, April 27 – Good soaking rain is boosting the sugar cane crop in the key Mackay region of Queensland following a prolonged dry spell relieved only by intermittent falls, an Australian Sugar Producers Association spokesman told Reuters. The rains began late last week, developed into heavy downpours over the weekend and are continuing today, he said from Brisbane. The Mackay and Burdekin regions, which together grow about half the Australian cane crop, have been the Queensland cane areas hardest hit by unseasonal dry weather since December. The spokesman said the rain missed the Burdekin area, just to the north of the Mackay region on the central Queensland coastal fringe, although recent light showers have freshened the crop there. Owing to the dry spell in the Mackay and Burdekin areas, the overall 1987 Australian cane crop is likely to be below the 25.4 mln tonnes crushed in 1986 for a 94 net titre raws outturn of 3.37 mln tonnes, he said. But any decline will not be as great as seemed likely a couple of months ago when it appeared the Mackay-Burdekin crops were going to suffer badly, he said. Preliminary crop estimates are expected to be available early next month, the spokesman said. The crush in the Mackay-Burdekin is likely to start later this year, in late June or early July against mid-June last year, to allow the cane to grow and sweeten further, he said. The crush normally runs to around the end of December. Elsewhere in the sugar belt, the cane is doing well, with some mill areas expecting record crops, he said. Industry records show variations in the crop are not always mirrored in raws output. In 1985, 24.4 mln tonnes of sweeter cane than in 1986 produced 3.38 mln tonnes of raws. REUTER 27-APR-1987 04:00:37.90 west-germany RM f0197reute u f BC-BUNDESBANK-CALL-TO-BO 04-27 0117 BUNDESBANK CALL TO BONN ON OVER-SPENDING RISKS FRANKFURT, April 27 – The Bundesbank urged the West German government not to relax efforts to rein in spending when taxes are cut in a 1990 fiscal reform package, saying that higher expenditure could lead to a dangerous rise in interest rates. The Bundesbank’s 1986 annual report said the government’s choice of measures to compensate for any cut in tax income was a key political task. “There will also be consequences for the state’s attitude on spending,” it said. It added that, while tax cuts should have a stimulatory effect on the economy, the government should not expect any significant increase in tax income in the short-term. The reform will cut taxes by a gross 44 billion marks, of which 19 billion marks will be financed through as yet unspecified measures. The Bundesbank noted that reducing tax preferences and financial grants as well as raising some indirect taxes were being considered. “As experience shows that a tax cut is not self-financing … The question remains of how the rest of the tax cuts will be financed,” the Bundesbank said. The Bundesbank noted that in 1986, spending had increased by more than the three pct annual average rise for 1982 to 1986. If this three pct limit were exceeded over a long period, there would be a danger that increased new borrowing would be necessary to finance deficits. It added that interest rates in West Germany were now low, partly because of a high influx of foreign funds. But the situation would become more difficult if the government’s credit requirements increased massively. “The anticipated stimulatory effects on the economy from the tax cuts could be thrown into jeopardy by higher interest rates,” it said. REUTER 27-APR-1987 04:02:40.00 boptrade west-germany RM f0202reute u f BC-GERMAN-TRADE-SURPLUS 04-27 0105 GERMAN TRADE SURPLUS SHOULD NARROW, BUNDESBANK SAYS FRANKFURT, April 27 – Germany’s current account and trade surpluses should narrow sharply in 1987 but they will take a long time to get back to normal levels, the Bundesbank said in its 1986 yearly report. The procedure would be slow as an abrupt turnaround in external factors such as oil prices and exchange rates was not expected. It did not specify what levels it considered normal. West Germany posted a record trade surplus of 124 billion marks in 1986, after 86 billion in 1985 and its current account surplus widened to 76.50 billion from 44.6 billion. Signs imports would continue to rise, a factor already noted at the start of 1986, while exports rose only slightly, would lead to a smaller trade surplus, the Bundesbank said. In real terms, West German imports rose 5.7 pct in 1986 while exports only increased by 0.8 pct. Germany’s current account surplus widened to a provisional 6.6 billion in February from 4.8 billion in January but was down from 6.85 billion posted in February 1986. The trade surplus in February widened to a provisional 10.4 billion marks from 7.2 billion in January and was still above the 6.84 billion reached in the same month the year before. REUTER 27-APR-1987 04:24:43.50 money-fxinterest japan RM f0233reute b f BC-BANK-OF-JAPAN-DEPUTY 04-27 0102 BANK OF JAPAN DEPUTY SAYS NO NEW MEASURES PLANNED TOKYO, April 27 – The Bank of Japan’s deputy governor Yasushi Mieno told a parliamentary Upper House budget committee that the central bank has no monetary measures other than intervention planned to stabilize currency rates. He also said the Bank of Japan is not considering a cut in its 2.5 pct discount rate. Mieno said the central bank is determined to restore currency stability through intervention by the major industrial nations as recent exchange rate volatility stems from speculation. Economic fundamentals have not changed, he added. REUTER 27-APR-1987 04:28:43.31 trade hong-kongusajapan RM f0240reute u f BC-BALDRIGE-SAYS-U.S.-WA 04-27 0105 BALDRIGE SAYS U.S. WANTS JAPAN TRADE PROPOSALS HONG KONG, April 27 – U.S. Secretary of Commerce Malcolm Baldrige said he hopes Japanese Prime Minister Yasuhiro Nakasone will make specific proposals to ease U.S.-Japan trade friction at a meeting with President Reagan this week. He also told reporters he hopes the U.S. Will soon be able to lift sanctions imposed against Japan for alleged violations of an accord on semiconductors. “We have been very specific about our trade problems,” he told a news conference during a stopover in Hong Kong. “I hope (Nakasone) brings some specific answers to the trade problems.” “We want to lift the sanctions as soon as possible,” Baldrige said. He said that once the U.S. Determines that Japan is selling semiconductors at cost it will be able to lift the 300 mln U.S. Dlrs of duties it imposed on Japanese electronics goods on April 17. “We have not seen that yet,” he said, adding that it would take about one month to determine whether the alleged violations of a bilateral semiconductor pact had been discontinued. Baldrige did not say what specific solutions he wanted for U.S.-Japan trade problems. But the New York Times today quoted administration sources as saying that the U.S. May be able to lift trade sanctions against Japan by the end of June. Japan would have to show that it had stopped underpricing semiconductors and had widened access in Japan top U.S. Chip producers. Baldrige also said that despite the current trade rift, the U.S. And Japan have long had friendly ties that neither side wants to change. “We have a very special relationship with Japan. Japan is a friend and our ally,” Baldrige said. “Neither one of us wants that to change.” He also repeated statements that he did not foresee a trade war with Japan but that the U.S. Had no choice but to impose the trade sanctions. REUTER 27-APR-1987 04:52:43.21 money-supply west-germany RM f0279reute u f BC-SIGN-OF-SLOWING-IN-GE 04-27 0113 SIGN OF SLOWING IN GERMAN MONEY GROWTH -BUNDESBANK FRANKFURT, April 27 – Central bank money stock was growing at about seven pct in the first quarter of 1987, down from 9-1/2 pct in the second half of 1986, so there are signs that the pace of growth is slowing even though it is still above target, the Bundesbank said in its 1986 annual report. The Bundesbank set a target range of three to six pct growth from fourth quarter 1986 to fourth quarter 1987 for central bank money stock. In the previous year it grew 7.7 pct, outside the 3-1/2 to 5-1/2 pct target range. The Bundesbank noted that monetary policy in 1986 was limited by a series of external factors. These included the revaluation of the mark, growing foreign payments surpluses of non-banks, and currency inflows. The Bundesbank therefore tolerated the monetary overshoot in 1986, as an attempt to counter monetary expansion with interest rate and liquidity moves would have increased upward pressure on the mark, it said. The lower end of the 1987 target range would be realistic if a large part of funds currently held in a liquid form were invested in long-term bank accounts or bonds, public bonds or foreign securities, the Bundesbank said. But if companies and private households continue to hold their funds in liquid forms, or if there are further currency inflows, growth will be closer to the upper end of the range. “The more the conflict between external constraints and domestic objectives relaxes — and many things point to this at the time of writing this report — the more possible it will be to do justice again to the medium-term concept of money supply control,” the Bundesbank said. It noted that prices were beginning to tend upwards again at the start of 1987. There would be virtually no easing of other production costs in 1987 to compensate for the rise in unit-wage costs. “Nevertheless, no inflationary trends are likely to set in this year,” the Bundesbank said. A link between excessive monetary growth and intensifying price rises can only be observed in the long term, it added. The continuing trend for non-banks to switch into long-term borrowing to take advantage of low interest rates, while for the same reason shunning long-term investments, increases the risks in changing interest rates for banks refinancing themselves with variable-interest deposits, it added. REUTER 27-APR-1987 04:55:17.67 interest uae RM f0290reute u f BC-UAE-TO-RECOGNISE-CONT 04-27 0101 UAE TO RECOGNISE CONTRACTUAL INTEREST RATES ABU DHABI, April 27 – A top United Arab Emirates (UAE) banker said a new law would be introduced soon obliging courts to recognise interest rates contracted between bank and borrower. Sheikh Suroor bin Sultan al-Dhahiri, Chairman of Abu Dhabi Commercial Bank, told reporters after the shareholders’ meeting last night the decree would make interest in debt cases payable at the contracted rate up to the day a case is filed in court. Subsequently, interest would be charged at a maximum nine pct for personal and 12 pct for corporate loans, he said. The law, if passed, would mark a breakthrough in solving what UAE bankers say is one of their biggest problems, collecting bad debts in court. Under current UAE law in all emirates, except Dubai, courts recognise only simple interest at a maximum nine and 12 pct even if a loan was contracted at higher compounded rates. The Central Bank said last year that roughly a quarter of total loans in the UAE banking system were non-performing. Sheikh Suroor also said a judicial committee set up to consider debt cases would begin functioning within a month. REUTER 27-APR-1987 05:19:15.02 money-fx west-germany RM f0329reute r f BC-EMS-INTERVENTION-SAID 04-27 0117 EMS INTERVENTION SAID SOMETIMES COUNTERPRODUCTIVE FRANKFURT, April 27 – Attempts to hold currency rates rigidly within tight ranges through European Monetary System intramarginal intervention can be counterproductive, bringing funds into the stronger currency from the weaker at rates still considered fairly favourable, the Bundesbank said. “The movements thus sparked can actually promote the weaker tendency of a currency, requiring still larger obligatory intervention when rates hit band limits,” it said in its 1986 annual report. The other danger was that money supply expansion could be caused in the stronger currency nation without its central bank being involved in the activity. “For this reason, currency levels should be allowed as much room for manoeuvre as possible inside the band limits when a currency is in a phase of weakness,” the Bundesbank said. “In addition, speculative positions are made more expensive to hold when interest differentials are increased.” In the report, the Bundesbank gave a rare glimpse of the extent of intramarginal and obligatory EMS intervention that has taken place since the foundation of the eight-currency system on March 13, 1979. Obligatory intervention is that required by EMS central banks when a currency reaches its agreed limit against another participating unit. Intramarginal intervention is undertaken on agreement between central banks when speculative pressure moves a currency in an unwanted direction, although it may not yet be near any allowed EMS limits. At the start of this year, central banks were very actively selling marks and supporting weaker currencies, primarily the French franc, as speculative EMS pressure grew. But the announcement by the Bank of France that it was ceasing intramarginal intervention sent the franc straight to its then-permitted floor of 31.8850 marks per 100. Data in the Bundesbank report showed the EMS central banks bought a net total 29.9 billion marks after the April 6, 1986 realignment until the selling petered out on July 7. But this was far outweighed by net purchases between July 8, 1986, and the realignment on January 12 this year totalling 63.0 billion marks – 44.1 billion of which was intramarginal and 18.9 billion was obligatory intervention. The data showed that 17.4 billion marks of the total eventually filtered into the West German monetary system. Since the latest realignment, central banks have bought 16.1 billion marks in intramarginal intervention, the Bundesbank said, without naming the banks involved. Only very high activity after the March 21, 1983 realignment came close to matching moves up to last January. Then, central banks bought a massive 61.6 billion marks in the period up to July 1985, mainly to stabilise the EMS as the dollar surged. This then turned into mark sales of a net 34.0 billion from July 11, 1985 in the run-up to the April 1986 realignment. REUTER 27-APR-1987 05:46:13.54 west-germany poehlkohl RM f0379reute u f BC-POEHL-TO-REMAIN-BUNDE 04-27 0113 POEHL TO REMAIN BUNDESBANK CHIEF, MAGAZINE SAYS HAMBURG, April 27 – Chancellor Helmut Kohl has decided to keep Bundesbank President Karl Otto Poehl in office for a further eight years, the news magazine Der Spiegel said. Government officials were not immediately available to comment on the report, which said that because Poehl is a member of the Social Democratic Party (SPD), Kohl had not taken the decision lightly. Poehl has been Bundesbank chief since January 1, 1980, while Kohl’s conservative/liberal coalition has held power since 1982. Der Spiegel said Kohl would have preferred to offer the post to a member of his Christian Democratic Union (CDU). But the magazine noted Poehl enjoyed a good international reputation. Officials have often said Poehl and CDU Finance Minister Gerhard Stoltenberg hold each other in high regard. Poehl’s current term expires at the end of this year. Officials have said no date has been set for an announcement on whether his tenure will be extended. Poehl was made an economic adviser to SPD Chancellor Willy Brandt in 1971. A year later he was appointed State Secretary at the Finance Ministry when former SPD Chancellor Helmut Schmidt was Finance Minister. There has recently been press speculation that the Bundesbank presidency may be offered to Poehl’s deputy, Helmut Schlesinger, a conservative monetarist. According to these reports, Schlesinger would be replaced two years later by CDU member Hans Tietmeyer, the current Finance Ministry State Secretary. Also under discussion as president was Johann Wilhelm Gaddum, a member of the Bundesbank board and a CDU member who is known to be close to Kohl. REUTER 27-APR-1987 05:47:32.88 acq uk F f0382reute u f BC-COATS-VIYELLA-MAKES-A 04-27 0111 COATS VIYELLA MAKES AGREED BID FOR YOUGHAL LONDON, April 27 – Coats Viyella Plc and have agreed to merge on the basis of an offer from Coats, a joint statement said. Coats is offering one Irish penny in cash per Youghal ordinary share. The offer also covers shares arising on conversion of Youghal convertible preference shares. As an alternative, Coats is offering a convertible redeemable note of 10 pence sterling per Youghal ordinary share. The notes being offered will have the right to conversion into Coats Viyella ordinary shares or redemption at 10 pence stg in 10 years time, the statement said. For 1986, Coats Vieylla had pre-tax profits of 182 mln stg on turnover of 1.75 billion stg. Youghal in 1986 had a pre-tax profit of 205,000 Irish pounds on turnover of 44.5 mln Irish pounds. Foir Teoranta, which holds four mln Youghal ordinary shares plus preference shares which are convertible into 27.6 mln ordinary shares, has irrevocably undertaken to accept the offer. The cash terms value Youghal at 538,000 Irish pounds. REUTER 27-APR-1987 06:03:23.49 trade south-africa RM f0407reute u f BC-SOUTH-AFRICAN-TRADE-S 04-27 0104 SOUTH AFRICAN TRADE SURPLUS FALLS SHARPLY IN MARCH PRETORIA, April 27 – South Africa’s trade surplus fell sharply to 940.8 mln rand in March after rising to 1.62 billion in February, Customs and Excise figures show. In February last year the surplus stood at 752.8 mln rand. Exports fell to 3.24 mln rand in March from 3.36 billion in February while imports rose to 2.30 billion rand from 1.74 billion. This brought total exports for the first quarter of this year to 9.92 billion rand and imports to 6.45 billion rand for a surplus of 3.47 billion versus 2.47 billion rand in the same in 1986 period. REUTER 27-APR-1987 06:05:46.79 brazil imf RM f0412reute u f BC-FUNARO’S-DEPARTURE-CO 04-27 0110 FUNARO’S DEPARTURE COULD LEAD TO BRAZIL DEBT DEAL By Stephen Powell, Reuters SAO PAULO, April 27 – The resignation of Finance Minister Dilson Funaro is bound to focus attention on whether Brazil will now adopt a more flexible debt stance and move towards an accord with creditors, bankers and political analysts said. With Funaro in charge, Brazil’s relations with creditors sank to a low ebb, they said. Bankers told anti-Funaro jokes from Sao Paulo to New York and economic analysts said the personal animosity between the minister and U.S. Bankers was a real obstacle to reaching agreement on rescheduling Brazil’s 111 billion dlr debt. Commenting on Funaro, a foreign banker here recently told Reuters, “They (banks) see his removal pretty much as a precondition for getting serious negotiations under way.” Funaro angered the banks in February by suspending interest payment on Brazil’s 68 billion dlr bank debt. There was also a question of personal style. Bankers disliked Funaro’s aloof demeanor and in private heatedly accused him of arrogance and inflexibility. However, Funaro did not fall because he upset foreign bankers but rather because his Cruzado Plan price freeze last year was a massive flop, economically and politically. However, it is in the domain of the debt and Brazil’s relation with creditors that his departure will have the most closely-watched international repercussion, bankers said. It became part of Funaro’s trademark that he would have no truck with the International Monetary Fund (IMF), thus effectively blocking a debt agreement. He argued that if Brazil sought the help of the IMF, the Fund would lay down conditions which would lead to recession. Funaro and others who supported this position had memories of the IMF austerity program in Brazil in the early 1980s, a period when hungry crowds stormed supermarkets. The foreign banker in Sao Paulo said, “I think Brazil could have an agreement with the IMF which would allow (it) acceptable growth.” Argentina, working with the IMF, won excellent terms for a major portion of its 50 billion dlr debt earlier this month. Given the IMF role in the Argentine accord, a U.S. Diplomat here said the agreement had been extremely damaging for Funaro because it showed that cooperation with the IMF bore fruit. Mexico has also taken the IMF path and, earlier than Argentina, clinched a favourable pioneering agreement with creditors on its 100 billion dlr debt. Brazil is now the only one of the three biggest Latin American debtors not to have a debt agreement. Some Brazilian opinion, particularly in the business community, is favourable to an IMF accord. A leading newspaper, Jornal do Brazil, carried a report from Washington over the weekend saying it was a myth the IMF brought recession and the best moment for an accord was now. As it happens, a routine IMF mission is visiting Brasilia. The government has repeatedly dismissed speculation it is considering any major change in debt policy and political analysts caution against expecting changes on the IMF issue. The government of President Jose Sarney has gained a reputation for chronic indecisiveness and some analysts believe the government will turn to the IMF only if it comes to the conclusion there really is no option. But such a policy shift looks more and more likely before too long in the eyes of many analysts. One major political obstacle, Funaro, is no longer in the picture and the economic pressures on Brazil are growing. The sharp drop in the trade surplus, which triggered Brazil’s present debt crisis, shows no sign of being reversed. In the first quarter of 1987 Brazil chalked up a surplus of only 526 mln dlrs, just a fraction of the 2.47 billion dlr surplus it had in the same period last year. Brazilian officials concede that time is not on their side in the debt crisis. “Brazil has an interest in resolving this problem as rapidly as possible,” Central Bank President Francisco Gros said on Friday. REUTER 27-APR-1987 06:07:02.53 west-germany F f0414reute b f BC-KLOECKNER-WERKE-SHARE 04-27 0108 KLOECKNER-WERKE SHARES SUSPENDED IN FRANKFURT FRANKFURT, April 27 – Shares in Kloeckner-Werke AG were suspended from stock exchange trading pending an announcement expected by the company today or tomorrow, a bourse spokesman said, without giving further details. Kloeckner shares closed Friday at 67.20 marks. They had come under pressure in recent sessions on reports the company may be exposed to as much as 300 mln marks in debts as a result of the bankruptcy of steelmaker Eisenwerk-Gesellschaft Maximilanshuette mbH (Maxhuette). Kloeckner owns just over 49 pct of the share capital in the Bavarian-based Maxhuette. REUTER 27-APR-1987 06:27:25.47 crude indonesia subroto opec RM f0436reute u f BC-WORLD-OIL-DEMAND-LIKE 04-27 0110 WORLD OIL DEMAND LIKELY TO INCREASE, SUBROTO SAYS JAKARTA, April 27 – Oil prices have stabilized in world markets and demand is likely to increase in the second half of the year, Indonesia’s Mines and Energy Minister Subroto said. He told a meeting of oil industry executives that oil prices had stabilized at 18 dlrs a barrel — the average fixed price OPEC put into effect in February — and supply and demand have been in equilibrium since March. If OPEC does not increase overall output in the second half of the year, prices will tend to increase, because non-OPEC producers have not been able to produce more oil at current prices, he said. But he declined to predict, when asked after the meeting, whether OPEC would raise its production ceiling of 15.8 mln barrels at its next meeting in June. He said in his speech that world oil production over the last two months was estimated at 45.6 mln barrels a day, or two mln barrels a day less than world oil demand. Oil production by industrialized countries, particularly the U.S. And Canada, is expected to decrease this year, but some of that slack will be taken up by increased production in Cameroon, India and other developing countries, he said. This year is a battle between OPEC and non-OPEC oil producers and consumers in the industrialized world for the upper hand in world oil markets, Subroto said in an earlier speech to management trainees at Pertamina Oil Company. “If OPEC emerges the winner, than it can gradually resume its former role in world oil markets,” he said. “But don’t expect oil prices to return to the level of 28-30 dlrs a barrel, at least not in the next three or four years,” Subroto said. REUTER 27-APR-1987 06:31:40.95 japanusa F f0450reute u f BC-TOSHIBA-TO-SET-UP-MIC 04-27 0064 TOSHIBA TO SET UP MICROCHIP PARTNERSHIP IN U.S. TOKYO, April 27 – Toshiba Corp will set up a five-year technology partnership with California-based SDA Systems Inc with the intention of designing and producing computer microchips, a company spokesman said. Toshiba’s investment in the project is likely to total less than 10 mln dlrs over the five years, he said. REUTER 27-APR-1987 06:39:34.03 trade japanusa nakasone RM f0465reute u f BC-NAKASONE-HOPES-U.S.-V 04-27 0101 NAKASONE HOPES U.S. VISIT WILL HELP END TRADE ROW TOKYO, April 27 – Prime Minister Yasuhiro Nakasone said he hopes his visit to Washington later this week will help resolve Japan’s severe trade problems with the United States. Nakasone leaves on his sixth official visit to the United States on Wednesday, only weeks after President Reagan imposed punitive tariffs of 300 mln dlrs a year on Japanese electronic goods for alleged violation of a semiconductor pact. Japan also faces more possible sanctions amid calls in the U.S. Congress for further action to help improve trade imbalances. Japan’s trade surplus with the United States reached a record 58.6 billion dlrs in 1986. Nakasone told reporters that special envoy Shintaro Abe, who has just returned from Washington, told him protectionist sentiment in the United States is severe. “We are well aware of a movement in the United States to enact legislation,” Nakasone said. He said friends at home and abroad have advised him not to go to the United States but it is now more important than ever that he express Japan’s view and carefully listens to the views of the United States. “My visit to the United States at this time will be the most important visit of all,” Nakasone said. While in Washington, he said he hopes to have candid and frank discussions with President Reagan and Congressionl leaders. He said he plans to discuss exchange rate stability, economic cooperation to developing countries and U.S.-Soviet disarmament and arms control. On the recently imposed trade sactions, Nakasone said he would present evidence that Japanese semiconductor imports are increasing and that Japan is monitoring exports to third countries. “We have full confidence we can present clear evidence,” he said. “(Therefore), we will request that the sanctions be lifted at the earliest possible time.” On the trade imbalance, Nakasone said Japan has already taken action. The volume of exports to the United States has been cut, while U.S. Imports have increased. But Japanese imports from Europe and other Asian nations have recently surged, those from the United States remain weak, indicating a lack of U.S. Competitiveness, he said. Nakasone said Japan will continue to strive to improve the trade imbalance but the United States will have to become more competitive and improve its huge budget deficit. He said he will also discuss the forthcoming Venice summit of the seven major industrial nations in June. “We can further enhance the efforts for improving peace, disarmament and the world economies as a whole through solidarity,” Nakasone said. REUTER 27-APR-1987 06:41:27.14 grainrice thailandvietnam G C f0473reute u f BC-NORTHERN-VIETNAMESE-R 04-27 0094 NORTHERN VIETNAMESE RICE CROP THREATENED BANGKOK, April 27 – Insects are threatening to destroy 367,000 hectares or about one-third of the spring rice crop in northern Vietnam, Hanoi radio reported. Drought has hit another 189,000 hectares, with 40,000 hectares very badly affected, it said. Insecticides are in short supply so only the most endangered rice fields should be sprayed, the radio added. The affected areas — the Red River delta and other coastal areas in northern Vietnam — produce between 30 to 40 per cent of the country’s rice. The radio report, monitored in Bangkok on April 20 but only translated here over the weekend, said the threatened damage was spread over twice as large an area as last year. Vietnam has not been able to grow enough food for its expanding population, with the Soviet Union buying rice in Thailand and Burma in recent years for supply to Vietnam. Vietnam produced 18.2 million tonnes of food, most of it rice, last year and hopes to boost that to 23-24 million tonnes by 1990. REUTER 27-APR-1987 06:41:45.29 money-fx japan RM f0474reute u f BC-BANK-OF-JAPAN-TO-SELL 04-27 0091 BANK OF JAPAN TO SELL 600 BILLION YEN IN BILLS TOKYO, April 27 – The Bank of Japan will sell 600 billion yen in 60-day financing bills tomorrow through 36-day repurchase agreements maturing June 3 to roll over a previously issued 400 billion yen of such bills maturing tomorrow, money traders said. The yield on the bills for sale to banks and securities houses by money houses will be 3.8498 pct compared with the one-month commercial bill discount rate today of 3.8125 pct and the one-month certificate of deposit rate of 4.18/07 pct. The traders estimate the surplus tomorrow at about 700 billion yen. The remaining 300 billion yen is mainly due to increased cash holdings by the banking system because of central bank dollar purchases. The operation will put the outstanding supply of such bills to 3,500 billion yen. REUTER 27-APR-1987 06:46:39.05 west-germany poehlkohl RM f0480reute u f BC-FURTHER-TERM-FOR-POEH 04-27 0115 FURTHER TERM FOR POEHL LIKELY, BONN SOURCES SAY BONN, April 27 – Karl Otto Poehl is likely to be re-elected President of the Bundesbank when his current term in office expires at the end of this year, government sources said. They were commenting on a report in Der Spiegel news magazine which said Chancellor Helmut Kohl had decided to keep Poehl in office for another eight years. Government spokesman Friedhelm Ost had no comment on the report, other than to say that the subject of the Bundesbank presidency was not currently under discussion. Der Spiegel said that, because Poehl is a member of the Social Democratic Party (SPD), Kohl had not taken the decision lightly. Poehl has been Bundesbank chief since January 1, 1980, while Kohl’s conservative/liberal coalition has held power since 1982. Der Spiegel said Kohl would have preferred to offer the post to a member of his Christian Democratic Union (CDU). REUTER 27-APR-1987 06:47:51.48 money-supply taiwan RM f0483reute u f BC-TAIWAN-ISSUES-MORE-CD 04-27 0077 TAIWAN ISSUES MORE CDS TO CURB MONEY SUPPLY GROWTH TAIPEI, April 27 – The central bank issued 7.53 billion Taiwan dlrs worth of certificates of deposits (CDs), bringing issues so far this year to 174.48 billion against 40 billion a year ago, a bank spokesman said. The new CDs, with maturities of six months, one and two years, carry interest ranging from 4.03 to 5.12 pct. The issues are designed to help curb the growth of M-1b money supply. REUTER 27-APR-1987 06:48:30.38 japan miyazawafujioka adb-asia RM f0484reute u f BC-JAPAN-HOLDS-OUT-PROMI 04-27 0103 JAPAN HOLDS OUT PROMISE OF FUNDS FOR ASIAN BANK By Rich Miller, Reuters OSAKA, Japan, April 27 – Japanese Finance Minister Kiichi Miyazawa opened the 20th annual meeting of the Asian Development Bank by holding out the promise of more Japanese money for the organisation. “We are … Striving to enhance the flow of capital from Japan to the developing countries,” he said. “The Asia-Pacific region is an area of special concern for us in our bilateral and multilateral assistance.” He said Tokyo was ready to study setting up a special Japanese fund at the ADB, like the one at the World Bank. The World Bank fund is earmarked for use by developing countries. Developing countries and the United States have criticised Japan for failing to use its trade surplus to help poor countries. Later this week, Prime Minister Yasuhiro Nakasone is expected to tell President Reagan that Japan plans to extend as much as 30 billion dlrs to developing countries over the next three years, Japanese officials said. The exta ADB funding would be part of that amount. “Our cooperation is intended to contibute to … Alleviating the burden on (developing countries),” said Miyazawa, who is also chairman of the ADB board of governors. “The developing countries today find themselves in a very difficult situation,” he said. “With a few notable exceptions, those countries that are highly dependent upon commodity exports face a rough road ahead.” While the developing countries can help themselves by striving to become internationally competitive and seeking to attract foreign investment, the ADB also has a role to play, he said. Miyazawa told the meeting the bank must beef up its economic advice program to developing nations and must work vigorously to identify development projects for loans. He also called for more use of loans that were not tied to development projects, but provided more overall help to the borrower. ADB President Masao Fujioka supported Miyazawa’s view. “The bank has been fondly described as the family doctor,” Fujioka said. “The bank will now have to equip itself to meet a range of services required to attend to varied needs of its developing members.” Miyazawa told the meeting Tokyo was ready to allow its Export-Import Bank to co-finance ADB loans. These would not have to be used for the purchase of Japanese equipment. Tokyo was also prepared to let the Asian Development Bank raise more funds in Tokyo and financial markets should it need to do so, he said. REUTER 27-APR-1987 06:51:49.00 japan F f0492reute u f BC-NIPPON-STEEL-NOMINATE 04-27 0112 NIPPON STEEL NOMINATES NEW PRESIDENT TOKYO, April 27 – Nippon Steel Corp nominated Hiroshi Saito as president, to replace Yutaka Takeda, subject to shareholders’ approval at a meeting on June 26, company officials told a press conference. Takeda will become chairman, and vice president Akira Miki will be vice chairman, they said. Current chairman Eishiro Saito, who is also chairman of the Federation of Economic Organisations (Keidanren), a leading Japanese business organisation, will act as honorary chairman and advisor, they added. Nippon Steel is now undergoing a strict rationalisation program to meet declining demand for steel products. REUTER 27-APR-1987 06:52:19.33 japanusa adb-asia RM f0493reute r f BC-U.S.,-JAPAN-AT-ODDS-A 04-27 0107 U.S., JAPAN AT ODDS AT ADB MEETING TOKYO, April 27 – The United States and Japan are waging a behind the scenes battle at this week’s Asian Development Bank meeting over Tokyo’s attempts to win a greater say in the organization, U.S. And Japanese delegates said. Washington is opposing the Japanese efforts because it would mean the end of the long-standing parity between the two nations in the Bank, U.S. Officials said. Right now, the two countries’ voting shares are about equal, Japan having 12.53 pct and the United States 12.36 pct. The slight difference is due to a temporary delay in the U.S. Subscription to the Bank. “It’s quite a delicate matter,” Japanese Finance Ministry deputy director general Fumiya Iwasaki told Reuters. “I don’t see the discussion ending soon.” The issue is further complicated because other member nations would have to give up some of their power in the Bank if Japan were to increase its influence, he said. Tokyo raised the issue at last year’s annual meeting in Manila, arguing that the 3.7 billion dlrs it has contributed to the Bank’s soft loans fund entitled it to a greater say in the overall organization. The United States has given 1.2 billion dlrs to the Asian Development Fund. REUTER 27-APR-1987 06:57:39.48 gold australia F M C f0498reute u f BC-GMK-SAYS-THREE-KMA-PA 04-27 0107 GMK SAYS THREE KMA PARTNERS MULLING RECONSTRUCTION MELBOURNE, April 27 – The three Australian participants in the (KMA) gold mining venture are discussing a possible restructuring of their interests in (GMK), KMA said. The other participants are Western Mining Corp Holdings Ltd (WMC) and Poseidon Ltd , GMK said in a brief statement. It gave no further details. KMA is owned 52 pct by (KLV) and 48 pct by a local unit of Homestake Mining Co . KLV in turn is owned 47 pct each by Poseidon and GMK and six pct by WMC. The KMA joint venture was formed in 1976 and operates the Mount Charlotte and Fimiston gold mines in Western Australia. The two mines produced a total of 222,000 ounces of gold in 1985/86 ended June 17. KMA is the sole source of GMK’s revenue and profits and the major contributor to Poseidon’s earnings, their annual reports show. GMK is owned 31.8 pct by WMC. REUTER 27-APR-1987 07:07:53.68 money-fxdlr japan V f0521reute u f BC-BANK-OF-JAPAN-INTERVE 04-27 0073 BANK OF JAPAN INTERVENES IN TOKYO TOKYO, April 27 – The Bank of Japan intervened in the market, buying a moderate amount of dollars around 137.80-85 yen, dealers said. Some dealers noted talk that the Bundesbank intervened here directly buying dollars against marks, after reports that it intervened through the Bank of Japan in the morning. The dollar moved up on short-covering aided by the central bank intervention, they said. REUTER 27-APR-1987 07:08:34.59 money-fxdlrinterest japanusa miyazawa V f0525reute u f BC-MIYAZAWA-DOES-NOT-THI 04-27 0099 MIYAZAWA DOES NOT THINK DOLLAR IN FREEFALL TOKYO, April 27 – Japanese Finance Minister Kiichi Miyazawa told a parliamentary Upper House budget committee that he does not think the dollar is in a freefall. He said concerted intervention is only a supplementary measure to moderate volatility in exchange rates and repeated that policy coordination among major industrial nations is necessary. “We cannot expect currency stability only through coordinated market intervention,” he said. Miyazawa also told the committee the U.S. Has not called on Japan to cut its 2.5 pct discount rate. Miyazawa said the government is not considering investing in U.S. Government bonds to help stabilize exchange rates. This matter has to be dealt with carefully because it involves the public’s money and exchange rates are moving widely, he added. The ministry will consider where to invest its funds when exchange rates become stable, he said. Asked if Japan is considering a request to the U.S. For it to raise its discount rate to stabilize exchange rates, Miyazawa said the U.S. Has not been able to take action now because it has to maintain its economic growth. REUTER 27-APR-1987 07:10:09.39 money-fxinterest japan A f0530reute r f BC-BANK-OF-JAPAN-DEPUTY 04-27 0101 BANK OF JAPAN DEPUTY SAYS NO NEW MEASURES PLANNED TOKYO, April 27 – The Bank of Japan’s deputy governor Yasushi Mieno told a parliamentary Upper House budget committee that the central bank has no monetary measures other than intervention planned to stabilize currency rates. He also said the Bank of Japan is not considering a cut in its 2.5 pct discount rate. Mieno said the central bank is determined to restore currency stability through intervention by the major industrial nations as recent exchange rate volatility stems from speculation. Economic fundamentals have not changed, he added. REUTER 27-APR-1987 07:11:40.68 money-fxdlrinterest japanusa corrigan V f0536reute u f BC-U.S.-CENTRAL-BANKER-O 04-27 0090 FED’S CORRIGAN OPPOSES FURTHER DOLLAR FALL OSAKA, JAPAN, April 27 – New York Federal Reserve Bank President Gerald Corrigan opposed a further fall in the value of the dollar but refused to say whether U.S. interest rates would be raised to protect the currency. “A further decline in the dollar or appreciation of the yen at this juncture I would regard as counterproductive,” he told a news conference. His comments echoed those made last week by U.S. Treasury Secretary James Baker, who also warned against a further dollar fall. Currency speculators and investors are convinced that a further dollar fall is needed to help reduce the huge U.S. trade deficit, dealers said, adding the only thing likely to help the dollar is seen as a rise in U.S. Interest rates. Corrigan refused to say whether the U.S. was ready to risk damaging its economic recovery by raising interest rates. The dollar’s sharp drop this month has also raised questions about the usefulness of recent meetings of the Group of Seven. But Corrigan said: “They have played a constructive role in so far as the broad objective of facilitating a higher degree of economic policy coordination.” Reuter 27-APR-1987 07:12:03.05 trade usa reagan V f0538reute u f BC-REAGAN-WARNS-CONGRESS 04-27 0107 REAGAN WARNS CONGRESS ON PROTECTIONISM WASHINGTON, April 27 – President Reagan warned the U.S. Congress in his weekly radio address against passing what he called dangerous, protectionist trade legislation that would tie his hands in trade negotiations with Japan and other countries. Reagan, who will hold talks with Japanese Prime Minister Yasuhiro Nakasone here this week, said he would lift tariffs imposed last week against some Japanese products as soon as Tokyo complied with a U.S.-Japanese pact on semiconductors. U.S. officials gave the same message to former Japanese Foreign Minister Shintaro Abe in talks here last week. In his weekly radio address on Saturday, Reagan said he would tell Nakasone: “We want to continue to work cooperatively on trade problems and want very much to lift these trade restrictions as soon as evidence permits. Reagan said the 100 pct tariffs he imposed on some 300 mln dlrs worth of Japanese goods was a special case of trade retaliation and did not signal a shift in what he called his staunch anti-protectionist policies. “In imposing these tariffs we were just trying to deal with a particular problem, not begin a trade war,” he said. Reuter 27-APR-1987 07:13:16.65 money-fxdlr japan miyazawa V f0545reute u f BC-MIYAZAWA-SAYS-POLICY 04-27 0107 MIYAZAWA SAYS POLICY COORDINATION KEY TO CURRENCY OSAKA, April 27 – Japanese Finance Minister Kiichi Miyazawa told a press conference the basic solution to currency instability among major nations is economic policy coordination. He said that is a time-consuming process as coordination does not always proceed in a way policy makers envisage. “That is democracy,” he said. Upon that foundation, Miyazawa said, there must be coordinated intervention. Major nations have sufficient funds to continue concerted intervention, he added. “Without doubt this set-up of coordinated intervention will continue to operate,” Miyazawa said. Miyazawa said Prime Minister Yasuhiro Nakasone and U.S. President Ronald Reagan are likely to reaffirm the Louvre and Washington Group of Seven (G-7) agreements on currency stability when they meet later this week. Asked whether the dollar is declining against all major currencies, not only the yen, Miyazawa declined to make any comments. He reiterated that many major nations have undertaken coordinated intervention in recent weeks to prop up the dollar, including countries who are not members of the G-7. Reuter 27-APR-1987 07:14:00.45 japanphilippines ongpin adb-asia A f0549reute r f BC-PHILIPPINES-TO-GET-30 04-27 0107 PHILIPPINES TO GET 300 MLN DLR JAPANESE LOAN OSAKA, Japan, April 27 – The Philippines has received a 300 mln dlr loan from the Japanese Export-Import Bank, Philippine Finance Minister Jaime Ongpin told Reuters. Ongpin said the loan, carrying interest of 5.5 pct a year, matches a 300 mln dlr economic recovery loan approved by the World Bank in March. Ongpin said Japanese Finance Minister Kiichi Miyazawa expressed satisfaction at the recent rescheduling of the Philippines’ 10.3 billion dlr foreign debt during a meeting here yesterday. The 14th yen aid package from Japan’s Overseas Economic Cooperation Fund was also discussed. Ongpin said the Japan is expected to respond favourably to a Philippine request to raise the aid level to between 75 and 80 billion yen. The aid package, originally scheduled for Japan’s 1986/87 fiscal year ended March, was delayed because of the Philippines’ change of government last year. “The Japanese have indicated we may not get as much as we are asking for in one big jump from the 13th yen package of 49 billion yen,” he said. “But they are likely to bring it up to that level for the 15th package.” Ongpin said Manila had 14 projects in the pipeline for the 14th yen package. “We are trying get the 15th package mainly in the form of untied commodity loans,” he said. Discussion on a Philippine request for 500 mln dlrs in soft loans to finance a land reform program, for which Japan is expected to supply most of the financing, had been put off until next month because of delays in preparatory work. Ongpin said he will make a strong pitch for the land reform program in his speech on Tuesday at the 20th annual meeting of the Asian Development Bank (ADB) here. Ongpin said the Philippines is very happy about the ADB’s support after President Corazon Aquino took over from deposed leader Ferdinand Marcos. “But I would like to see them push more aggressively in the field of lending to the private sector,” he said. The Philippines was the bank’s second-biggest borrower after Pakistan in 1986, with loans totalling 316 mln dlrs. Ongpin said he expects ADB lending to the Philippines in 1987 to reach the same level. “They have told us they can lend us two billion dlrs if we want. But we have to come up with the projects,” he said. REUTER 27-APR-1987 07:16:46.51 west-germany poehlkohl A f0557reute r f BC-POEHL-TO-REMAIN-BUNDE 04-27 0112 POEHL TO REMAIN BUNDESBANK CHIEF, MAGAZINE SAYS HAMBURG, April 27 – Chancellor Helmut Kohl has decided to keep Bundesbank President Karl Otto Poehl in office for a further eight years, the news magazine Der Spiegel said. Government officials were not immediately available to comment on the report, which said that because Poehl is a member of the Social Democratic Party (SPD), Kohl had not taken the decision lightly. Poehl has been Bundesbank chief since January 1, 1980, while Kohl’s conservative/liberal coalition has held power since 1982. Der Spiegel said Kohl would have preferred to offer the post to a member of his Christian Democratic Union (CDU). But the magazine noted Poehl enjoyed a good international reputation. Officials have often said Poehl and CDU Finance Minister Gerhard Stoltenberg hold each other in high regard. Poehl’s current term expires at the end of this year. Officials have said no date has been set for an announcement on whether his tenure will be extended. Poehl was made an economic adviser to SPD Chancellor Willy Brandt in 1971. A year later he was appointed State Secretary at the Finance Ministry when former SPD Chancellor Helmut Schmidt was Finance Minister. There has recently been press speculation that the Bundesbank presidency may be offered to Poehl’s deputy, Helmut Schlesinger, a conservative monetarist. According to these reports, Schlesinger would be replaced two years later by CDU member Hans Tietmeyer, the current Finance Ministry State Secretary. Also under discussion as president was Johann Wilhelm Gaddum, a member of the Bundesbank board and a CDU member who is known to be close to Kohl. REUTER 27-APR-1987 07:18:39.06 gold japanusa RM f0571reute r f BC-U.S.-OFFICIAL-SAYS-EA 04-27 0101 U.S. OFFICIAL SAYS EAGLE GOLD COIN HAS MAJOR SHARE TOKYO, April 27 – A visiting U.S. Mint official told reporters that American Eagle gold coins took the largest share of the world bullion coin market in 1986 despite the fact sales only began in October last year. She said the U.S. Coins accounted for 37 pct of the world market share, against 31.9 pct for Canadian coins and 18.6 pct for South African. She gave no sales volume figures for 1986. Sales of the U.S. Coins in the first six months of issue totalled 2.32 mln ounces, exceeding the target of 2.2 mln in the first year, she said. Japan alone has imported 140,000 ounces of the coins since November, the official said, adding that the U.S. Mint sees Japan as a major market. Sumitomo Corp and Tanaka Kikinzoku KK already distribute the coins in Japan, she said. Nissho Iwai Corp has just been appointed a distributor, she added. The U.S. Started issuing gold bullion coins, following the ban on imports of South African Krugerrands to the U.S., In a bid to offer investment grade coins to investors, the Mint said in a statement. REUTER 27-APR-1987 07:24:22.56 trade hong-kongusajapan V f0585reute u f BC-BALDRIGE-SAYS-U.S.-WA 04-27 0104 BALDRIGE SAYS U.S. WANTS JAPAN TRADE PROPOSALS HONG KONG, April 27 – U.S. Secretary of Commerce Malcolm Baldrige said he hopes Japanese Prime Minister Yasuhiro Nakasone will make specific proposals to ease U.S.-Japan trade friction at a meeting with President Reagan this week. He also told reporters he hopes the U.S. Will soon be able to lift sanctions imposed against Japan for alleged violations of an accord on semiconductors. “We have been very specific about our trade problems,” he told a news conference during a stopover in Hong Kong. “I hope (Nakasone) brings some specific answers to the trade problems.” “We want to lift the sanctions as soon as possible,” Baldrige said. He said that once the U.S. Determines that Japan is selling semiconductors at cost it will be able to lift the 300 mln U.S. Dlrs of duties it imposed on Japanese electronics goods on April 17. “We have not seen that yet,” he said, adding that it would take about one month to determine whether the alleged violations of a bilateral semiconductor pact had been discontinued. Baldrige did not say what specific solutions he wanted for U.S.-Japan trade problems. But the New York Times today quoted administration sources as saying that the U.S. May be able to lift trade sanctions against Japan by the end of June. Japan would have to show that it had stopped underpricing semiconductors and had widened access in Japan top U.S. Chip producers. Baldrige also said that despite the current trade rift, the U.S. And Japan have long had friendly ties that neither side wants to change. “We have a very special relationship with Japan. Japan is a friend and our ally,” Baldrige said. “Neither one of us wants that to change.” He also repeated statements that he did not foresee a trade war with Japan but that the U.S. Had no choice but to impose the trade sanctions. REUTER 27-APR-1987 07:24:51.19 sugar west-germany T C f0589reute r f BC-GERMAN-SUGAR-BEET-PLA 04-27 0102 GERMAN SUGAR BEET PLANTINGS MOST ADVANCED IN SOUTH HAMBURG, April 27 – Sugar beet plantings are almost complete in southern West Germany but are lagging behind in other regions, trade sources said. In the west of the country, about 60 pct of the plantings were completed, while in the north only 40 pct of the sugar beet area has been sown, they said. The weather is forecast to stay mild in northern West Germany in the coming days and more planting progress is expected there, they said. This year’s area sown to sugar beets is likely to fall to 38,500 hectares from around 40,000 last year. REUTER 27-APR-1987 07:25:11.26 france RM f0591reute u f BC-FRENCH-HOUSEHOLD-CONS 04-27 0086 FRENCH HOUSEHOLD CONSUMPTION DOWN 3.6 PCT IN MARCH PARIS, April 27 – French household consumption of manufactured goods fell 3.6 pct in March, the National Statistics Institute (INSEE) said. It said the figure fell to 46.35 billion francs seasonally adjusted and in real terms from February’s 48.07 billion, where it had held steady for three months. It said sales of most durable goods had fallen 3.5 pct while household electricals, clothing and textiles were down by about eight pct from February. REUTER 27-APR-1987 07:25:24.81 trade usajapan reagannakasone V f0592reute u f BC-U.S.-MAY-TELL-JAPAN-S 04-27 0111 U.S. MAY TELL JAPAN SANCTIONS CAN END – NY TIMES NEW YORK, April 27 – President Reagan is expected to tell Prime Minister Yasuhiro Nakasone this week that the U.S. May be able to lift trade sanctions against Japan by the end of June, the New York Times said. The newspaper, quoting administration officials, said that under such a scenario the President would announce just before the June 8-10 economic summit meeting in Venice that he hoped to lift the restrictions on electronics imports by the end of the month. Japan, for its part, would have to show that it had stopped underpricing semiconductors and had widened access in Japan for U.S. Chip producers. The U.S. Administration imposed 100 pct tariffs on 300 mln dlrs worth of Japanese color television sets, motorised tools and personal computers on April 17. Japanese officials have said Nakasone’s main demand when he arrives for talks with Reagan on Wednesday would be the immediate lifting of the tariffs. But with Congress planning further trade reprisals against Japanese trade policies, the end-of-June timeframe is seen as the best Reagan can offer, the Times said. It said some verbal formulation was expected to be found in a communique that would allow Nakasone to claim at least a modest victory. REUTER 27-APR-1987 07:26:48.48 hong-kongusa F f0594reute r f BC-INTEGRATED-RESOURCES 04-27 0072 INTEGRATED RESOURCES SETS UP BRANCHES IN HONG KONG HONG KONG, April 27 – U.S.-based insurance and investment broker has set up two subsidiaries in Hong Kong, a company statement said. will focus on insurance marketing and on stock broking. The statement gave no financial details for the local firms. REUTER 27-APR-1987 07:27:50.15 trade japanusa de-clercqyeutter ec A F f0597reute r f BC-U.S.-WARNS-OF-TRADE-B 04-27 0073 U.S. WARNS OF TRADE BILL, EC ATTACKS JAPAN KASHIJIMA, Japan, April 27 – The U.S. warned its major trade partners that its trade deficit must fall by September or a protectionist trade bill from Congress would be highly likely. Meanwhile, European Community (EC) external trade chief Willy de Clercq said that if Japan’s trade surplus, which hit almost 90 billion dlrs last year, continued so high, there would be stormy weather ahead. U.S. Trade representative Clayton Yeutter told trade leaders from Japan, the EC and Canada that there was at least a 50-50 chance that a protectionist bill reaching the House of Representatives this week would pass the Senate in September. The U.S. economy badly needed better trade figures by then, or President Ronald Reagan would have a difficult time vetoing such a bill, he said, according to a series of briefings to reporters by official delegates at the weekend meeting. A 15 billion dlr U.S. Trade deficit in March had only incensed Congress further, he said. Reuter 27-APR-1987 07:28:06.01 grainrice thailandusa C G f0599reute r f BC-THAILAND-TO-SEEK-CLAR 04-27 0103 THAILAND TO SEEK CLARIFICATION ON U.S. RICE PRICES BANGKOK, April 27 – Thailand will this week seek clarification from the U.S. About its decision to freeze rice export prices from January to early April, Commerce Minister Montri Pongpanich said. Montri told reporters he will seek a meeting with U.S. Ambassador William Brown to determine why the U.S. Failed to set its weekly rice prices in accordance with rising world prices during the period. He said the U.S. Has followed a policy of weakening world rice prices by announcing highly subsidised export prices lower than those quoted by Thai traders. Thai officials said weekly rice prices as announced by the U.S. Agriculture Department were unchanged for 11 weeks up to April 8. Thailand, a major rice exporter, has criticised the U.S. Farm Act which provides heavy subsidies to U.S. Exporters enabling them to compete with Thai exporters. Thai officials said average export prices of Thai rice fell 19 pct last year and another 5.8 pct during the first quarter this year. The Board of Trade said Thailand exported 1.23 mln tonnes in January/March, down from 1.29 mln a year ago. It said the export decline was partly due to the reluctance of Thai traders to accept all foreign orders as world prices did not rise in line with firming domestic prices. The board said, however, that Thailand may export more rice later this year, especially to Africa, the Middle East and Asia, due to lower production in many drought affected African countries and to expected small exportable surpluses in Burma and Pakistan. It said Thai rice exports to nine major African buyers rose to 351,889 tonnes during the first quarter from 93,038 a year earlier. REUTER 27-APR-1987 07:28:29.65 uk A f0601reute r f BC-NEW-POLL-PUTS-BRITISH 04-27 0091 NEW POLL PUTS BRITISH CONSERVATIVES WELL AHEAD LONDON, April 27 – Britain’s ruling Conservatives maintained a commanding lead in a new opinion poll, reinforcing views that Prime Minister Margaret Thatcher is poised to call a general election in June. The Harris poll published in the Observer newspaper gave the Conservatives the support of 42 pct of those questioned, Labour 31 pct, and the Liberal-Social Democratic Alliance trailing with 25 pct. This would give the Conservatives a 94-seat overall majority in the House of Commons. Reuter 27-APR-1987 07:28:38.38 trade japan de-clercq ec A F f0602reute r f BC-EC-SAYS-JAPAN-CAR-EXP 04-27 0107 EC SAYS JAPAN CAR EXPORT RESTRAINT NOT ENOUGH KASHIKOJIMA, JAPAN, April 27 – Japan’s 1987 car export restraint to the European Community (EC) is not enough, EC external trade chief Willy de Clercq said. There are also strong signs Japanese exporters are diverting cars to the EC after the dollar’s fall against the yen made their U.S. market unprofitable, he told reporters after meeting U.S., Japanese, and Canadian trade ministers. The EC has agreed that if it detects an abnormal diversion in Japanese exports from the U.S. To the EC market due to currency movements over the past two years, it will move to prevent it, he said. Over the period, the yen has risen against the dollar almost eight times as fast as against the European Currency Unit, he said. Japan has set an unofficial, voluntary 10 pct rise in car exports to the EC this year as part of its efforts to stop its rising trade surplus with the Community, which hit a record 18 billion dlrs last year. But Japanese car exports to the EC so far this year jumped over 30 pct compared to a drop of 17 pct in U.S. Sales, and a seven per cent fall globally. “We think there is some diversion there,” said de Clercq. Reuter 27-APR-1987 07:28:53.17 trademoney-fxdlr japan A F f0604reute r f BC-G-7-OFFICIALS-TO-DECI 04-27 0103 G-7 OFFICIALS TO DECIDE ON SUMMIT AGENDA OSAKA, Japan, April 27 – Senior officials from the Group of Seven (G-7) countries will meet next week to decide an agenda for the body’s June summit scheduled to be held in Venice, Japanese officials said. The meeting will provide senior government officials with their first chance to discuss the recent sharp drop of the dollar, although the main focus of the gathering is longer term, they said. Deputy Finance Ministers, including Japanese Vice-Finance Minister Toyoo Gyohten, will attend. The meeting will be held in Italy, they said, but gave no other details. The leaders of the G-7, the United States, Britain, Canada, France, Italy, Japan and West Germany, are expected to discuss ways of improving economic policy coordination in Venice. The hope is that increased coordination will help reduce the huge imbalances in world trade and calm volatile currency markets. But economists say the strategy has so far not worked. Japanese officials admitted there is little more they can do on their own to stem the dollar decline, which last week saw the currency plunge to a post-war low below 140 yen. The officials said they expected sentiment against the dollar to change soon, once the U.S. Trade deficit starts to fall and the Japanese surplus begins to shrink. “We have already seen some signs of improvement (in the trade picture), but the market does not appreciate it yet,” one said. Last week’s passage of the Japanese government budget by parliament’s Lower House also paves the way for Tokyo to take additional action to stimulate its sagging economy and boost imports, the officials said. Reuter 27-APR-1987 07:31:11.28 money-fx uk RM f0619reute b f BC-BANK-OF-ENGLAND-DOES 04-27 0047 BANK OF ENGLAND DOES NOT INTERVENE IN MONEY MARKET LONDON, April 27 – The Bank of England said it did not intervene in the money market during the morning. It also said that it had raised its estimate of the liquidity shortage in the market to 450 mln stg from 400 mln. REUTER 27-APR-1987 07:31:38.46 gold japanaustralia A f0624reute d f BC-JAPANESE-FIRMS-TO-SEL 04-27 0083 JAPANESE FIRMS TO SELL AUSTRALIAN GOLD COINS TOKYO, April 27 – Three Japanese trading companies and one coin retailer will start selling Australia’s Nugget gold coins in Japan from May 12 after actively buying at the first international trading of the coins last Thursday, officials involved in the sale said. They estimated Japanese companies bought 30 pct of 155,000 ounces sold on Thursday. The coins are likely to be sold in Japan at prices similar to the South African krugerrand. REUTER 27-APR-1987 07:31:47.80 uk F f0625reute d f AM-CATERPILLAR 04-27 0134 WORKERS VOTE TO LEAVE CATERPILLAR PLANT LONDON, April 27 – Strikers at the Caterpillar Inc tractor plant near Glasgow, due to be closed by the U.S.-owned firm, voted to end their occupation of the factory after more than three months. A meeting attended by 700 of the plant’s 1,200 workers approved an agreement reached with management on Thursday after four days of talks. Production will resume today. The agreement calls for the establishment of a working group of representatives from both sides, which has been given until October 16 to find a new buyer for the factory. The company has promised that there will be no job losses before that date. Workers began their occupation on January 14 after Caterpillar said it planned to close the plant and lay off the entire work force. Reuter 27-APR-1987 07:31:54.89 alumiron-steelpet-chem venezuelajapan A F f0626reute d f BC-VENEZUELA-FINANCE-MIN 04-27 0102 VENEZUELA FINANCE MINISTER TO JAPAN IN MID-MAY CARACAS, April 27 – Finance Minister Manuel Azpurua said today he will travel to Japan in mid-May to seek new credits for planned expansions in Venezuela’s state aluminum, steel and petrochemical industries. Azpurua told reporters he will be accompanied by Central Bank President Hernan Anzola and Director of Public Finance Jorge Marcano. ‘The idea is to hold meetings with Japanese economic and financial authorities, with the banks which have business and credits in Venezuela and with some of the Japanese companies already active here,’ Azpurua said. Reuter 27-APR-1987 07:32:04.63 barbadosspain A f0627reute w f BC-regional-central-bank 04-27 0118 CENTRAL BANK GOVERNORS TO MEET IN BARBADOS BRIDGETOWN, BARBADOS, April 27 – Central bank governors from Spain, Latin America and the Caribbean will meet here this week at two separate conmferences to discuss finance and monetary problems, the Central Bank of Barbados said. The 24th session of central bank governors of the american continent opens today for two days. Central bank governors of Latin America and Spain will hold a separate conference from april 29-30. Representatives of the Inter American Development Bank, the International Monetary Fund and other international financial organizations will attend both conferences. The Central Bank of Barbados gave no agenda for the meetings Reuter 27-APR-1987 07:32:15.73 crude indonesia subroto opec V f0628reute u f BC-WORLD-OIL-DEMAND-LIKE 04-27 0109 WORLD OIL DEMAND LIKELY TO INCREASE, SUBROTO SAYS JAKARTA, April 27 – Oil prices have stabilized in world markets and demand is likely to increase in the second half of the year, Indonesia’s Mines and Energy Minister Subroto said. He told a meeting of oil industry executives that oil prices had stabilized at 18 dlrs a barrel — the average fixed price OPEC put into effect in February — and supply and demand have been in equilibrium since March. If OPEC does not increase overall output in the second half of the year, prices will tend to increase, because non-OPEC producers have not been able to produce more oil at current prices, he said. But he declined to predict, when asked after the meeting, whether OPEC would raise its production ceiling of 15.8 mln barrels at its next meeting in June. He said in his speech that world oil production over the last two months was estimated at 45.6 mln barrels a day, or two mln barrels a day less than world oil demand. Oil production by industrialized countries, particularly the U.S. And Canada, is expected to decrease this year, but some of that slack will be taken up by increased production in Cameroon, India and other developing countries, he said. This year is a battle between OPEC and non-OPEC oil producers and consumers in the industrialized world for the upper hand in world oil markets, Subroto said in an earlier speech to management trainees at Pertamina Oil Company. “If OPEC emerges the winner, than it can gradually resume its former role in world oil markets,” he said. “But don’t expect oil prices to return to the level of 28-30 dlrs a barrel, at least not in the next three or four years,” Subroto said. REUTER 27-APR-1987 07:33:56.13 switzerlandusaussr A f0636reute r f PM-ARMS-TALKS *** 04-27 0102 SOVIETS TO PRESENT TREATY ON MISSILES – SOURCES GENEVA, April 27 – The Soviet Union will present a draft treaty today calling for elimination of all U.S.-Soviet medium-range missiles in Europe, an official source in the Soviet arms negotiating team told Reuters. The draft treaty will be handed over to the American team negotiating on medium-range missiles during talks at the U.S. Diplomatic mission in Geneva this afternoon, the source said. The United States presented its draft treaty, which would also scrap the so-called “Euromissiles,” during a previous round of negotiations in early March. REUTER 27-APR-1987 07:40:04.43 crude cyprussaudi-arabiairaniraqkuwaitnigeria opec RM f0646reute u f BC-SAUDIS-NOT-SEEKING-OI 04-27 0099 SAUDIS NOT SEEKING OIL PRICE ABOVE 18 DLRS – MEES NICOSIA, April 27 – Saudi Arabia will not seek to push OPEC oil prices above the current benchmark of 18 dlrs per barrel unless oil demand grows strongly, the Middle East Economic Survey (MEES) said. The Cyprus-based weekly newsletter quoted authoritative Saudi sources as saying the Kingdom’s oil price policy would not change “unless and until there is a strong revival in the growth of demand for oil.” MEES said this contradicted recent hints of new Saudi price hawkishness from U.S. Congressional and oil industry sources. The Saudi sources said their policy was firmly based on the long-term need to restore the competitive position of oil in general and OPEC oil in particular against other energy sources. “Saudi Arabia is certainly committed to cooperating with its OPEC partners to exercise the necessary production restraint to maintain the 18 dlr per barrel reference price level,” MEES said. The newsletter said Saudi output in the first three weeks of April averaged slightly above its OPEC quota of 4.133 mln barrels per day (bpd). Output would fall in the last week, causing the month’s average to be below quota, MEES said. MEES estimated overall OPEC production for April at around 16.8-16.9 mln bpd — two mln bpd more than both its figures for March and Reuter estimates for March. It said Iranian production had risen by 500,000 bpd this month to 2.2-2.3 mln bpd, around its quota level. In Iraq, with an OPEC-assigned quota of 1.466 mln bpd, output rose this month to two mln bpd, not including “war relief” supplies from Kuwait and Saudi Arabia, the newsletter said. Nigeria, which has had problems selling its full 1.238 mln bpd entitlement, increased its output to 1.2 mln bpd, it added. REUTER 27-APR-1987 07:40:49.36 interest india RM f0649reute r f BC-INDIAN-BANKER-SAYS-RA 04-27 0108 INDIAN BANKER SAYS RATES CUT AFFECTS PROFITABILITY BOMBAY, April 27 – The cut in the lending rates and other changes made in the interest rates will hit the profitability of many commercial banks in India, Indian Banks’ Association chairman M. N. Goiporia told a bankers’ conference. The changes were announced by the Reserve Bank of India on March 31 and became effective on April 1. “Some of the latest credit policy measures such as reduced lending rates, raising the statutory liquidity ratio and restructuring of deposit rates will pose a potential threat to commercial banks’ continuing higher profitability levels,” he said. Goiporia said most foreign and Indian commercial banks including those owned by the government have been making profits over the years, mainly due to better fund management and the enlargement of the banks’ capital base. He did not elaborate. The Reserve Bank’s new credit policy for commercial banks cut the maximum lending rate by one pct to 16.5 pct, raised rates on deposits of two years by a half pct to nine pct and by one pct to 10 pct on deposits of more than two years. To cut excess liquidity in the industry, the Reserve Bank raised the banks’ liquidity ratio by a half pct to 37.5 pct, immobilising nearly five billion rupees of deposits, bankers said. REUTER 27-APR-1987 07:46:34.04 money-fxdlrlit italyfranceusa balladur RM f0659reute b f BC-BALLADUR-URGES-ADHERE 04-27 0113 BALLADUR URGES ADHERENCE TO G-7 CURRENCY ACCORDS MILAN, April 27 – French Finance Minister Edouard Balladur said the Group of Seven major industrial nations, G-7, can achieve stable currency values by adhering to accords reached this year in Paris and Washington. Balladur, asked at a news conference if coordinated market intervention by central banks was sufficient to halt the dollar’s recent slide, said “each country has to fulfill commitments” outlined in the G-7 accords. Earlier this month in Washington, finance ministers of the U.S., Japan, West Germany, France, Italy, Britain and Canada reaffirmed an earlier Paris accord to arrest the dollar’s fall. Balladur said the current nervousness in foreign exchange markets can be partly attributed to “some operators in the market only watching short term economic indicators. You have to keep a cool head,” he said, declining to elaborate further. In an earlier speech before the Milan Chamber of Commerce, the minister said European countries have to seek “a better consensus of economic and monetary policies.” On the European Monetary System, he said, “The persistent vulnerability of the foreign currency mechanism, particularly to the movements of the dollar, can be explained by the absence of a common policy for currencies of other countries.” Balladur said, “I am profoundly convinced that the European countries have to define together this position with respect to the dollar and the yen.” He said Italy eventually would have to abandon its higher margin of fluctuation within the European Montetary System. “I hope that the spectacular improvement of the economic situation and of the balance of payments will permit (Italy) to do it soon.” The lira is currently allowed a fluctuation margin either side of its agreed midpoints with other EMS currencies of six pct, against 2.25 pct permitted for the other members. REUTER 27-APR-1987 07:57:49.23 norway ose F f0683reute r f BC-NORWAY-BOURSE-PRICE-B 04-27 0113 NORWAY BOURSE PRICE BOOM WILL NOT LAST – ANALYSTS By Nicholas Doughty, Reuters OSLO, April 27 – Norway’s stock exchange has touched record levels, propelled by higher oil prices and foreign buying interest. But analysts say the bullish trend probably will not last. Tight restrictions on foreign ownership of shares have held back development on the market, they say. While some of these rules could soon be eased, Norway’s unresolved economic woes mean the prices boom is likely to be short-lived. Last Thursday, the all-share index reached 325.48 points to beat the previous record of 325.31 set in mid-November, 1985. Brokers say the new record, spurred by firmer oil prices above 18 dlrs a barrel which are crucial to Norway’s economy, has for now set the Oslo bourse apart from the current fluctuations on other world stock markets. “It’s an underdeveloped market…Virgin territory ,” Jenny Tora, a Scandinavian securities analyst with London-based stockbrokers James Capel, told Reuters. But the attraction for foreign investors of the stock market, where price/earnings ratios average around a relatively low 11, is tempered by restrictions and some nervousness about the future of Norway’s economy, analysts say. Foreign ownerhsip is limited in all sectors and varies between 10 and 40 pct of the shares of any company – and the class of shares rarely carry voting rights. “It’s often hard to get stocks as the quotas are full,” Tora said. “There can be problems of liquidity in the market. You can get into the market, but perhaps not get out.” Analysts said this meant that foreign interest had been restricted mostly to professional trading rather than client buying, and that the market missed some speculative impetus. There are also no stock options, and bonds cannot be held by foreigners in Norwegian securities trading. Thor Bang, chief economist at Den Norske Creditbank A/S, Norway’s biggest bank, said he thought the stocks boom had little foundation in Norway’s economic situation. “One of the factors (in the rise) is a belief in…Political stability,” he told Oslo’s business daily, Dagens Naeringsliv. The minority Labour government has looked increasingly stable since it came to power in May, 1986, with the former right-centrist coalition in disarray. But stock market analysts say continued economic problems could soon jeopardise the bourse’s bull trend, in spite of the appreciation of the crown against the dollar. Although firming oil prices mean better news for Norway, Western Europe’s biggest oil producer after Britain, analysts point to high interest rates, uncertainty over the future price of oil and a weighty current account balance of payments deficit as threats to the bourse. Interest rates stand at around 14 pct, while annual inflation is 10 pct. The current account balance of payments deficit stood at 32.8 billion crowns last year, against a surplus of 26.8 billion crowns in 1985. “I’d be very cautious about present stock levels,” Chris Honnor of London-based brokers Grieveson Grant said. The record-breaking performance last Thursday meant that the all-share index had increased by 16 pct from the start of 1987. On Friday the index leapt another 7.78 points to 333.26. But analysts noted this was largely due to much better than expected profits in the first quarter from Norsk Hydro, Norway’s largest diversified corporation. Foreign investors, spurred by the appreciating crown and the rise in oil prices, have been more prominent in the market this year, although they still trade selectively mainly in Norsk Hydro, Norsk Data and a few other top-traded industrials. Earlier this month the government proposed allowing the share of foreign ownerhsip permitted in financial institutions to rise in a bid to boost competition. Depending on the circumstances, the share foreign owners can have will rise from 10 pct to between 15 and 25 pct. Saga Petroleum, Norway’s largest fully private oil company, has also said it will seek government permission to boost permitted foreign share ownerhsip to 40 pct from the present 20 pct. Saga shares have registered some of the strongest gains on the bourse because of the move, adding more than 60 pct to their value so far this year. REUTER 27-APR-1987 08:02:36.89 italy RM f0696reute u f BC-G-7-OFFICIALS-TO-MEET 04-27 0100 G-7 OFFICIALS TO MEET IN SARDINIA THIS WEEK ROME, April 27 – Representatives of the Group of Seven will meet in the Sardinian resort of Porto Cervo from April 30 to May 2 to discuss the agenda for the group’s Venice summit in June, sources close to the Italian Foreign Ministry said. The sources said the meeting would be informal and attended by the personal representatives of G-7 leaders. The sources did not comment on reports from Osaka that deputy finance ministers would attend the Porto Cervo meeting, and said there would be a complete information blackout on the gathering. The sources had no comment on statements by Japanese officials in Osaka yesterday that the falling dollar would be among topics discussed. The Japanese officials had said the meeting, while focusing on longer-term issues, would provide senior government officials with their first chance to discuss the recent sharp drop of the dollar. REUTER 27-APR-1987 08:15:16.13 money-fxtrade usaaustraliajapan james-bakernakasone V f0736reute u f AM-BAKER 04-27 0106 U.S. TREASURY’S BAKER CANCELS TRIP TO AUSTRALIA WASHINGTON, April 27 – Treasury Secretary James Baker has cancelled a trip to Australia because of pressing business at home, including the visit this week by Japanese Prime Minister Yasuhiro Nakasone, a Treasury spokesman said. The spokesman, who asked not to be identified, said: “I would not draw any conclusion from the cancellation…I would just say it’s the press of business.” But he added that the visit by the Japanese leader was “part of the press of business.” The spokesman denied the cancellation was linked to the current turmoil in the financial markets. Nakasone’s visit is expected to be crucial for the currency markets. Unless the Japanese prime minister brings with him measures to stimulate the Japanese economy by fiscal expansion or lower interest rates, the visit is likely to be considered by currency markets as an outright failure. In addition, it is thought highly unlikely that Nakasone and Reagan will agree on the removal of U.S. trade sanctions imposed earlier this month on certain electronic goods. But the participation in the talks by Baker, the administration’s top policy maker on international economic affairs, suggests that hard bargaining between the two sides may be in prospect. Asked if the trip by Baker, who was to have left April 30 and returned May 6, had been dropped in the last couple of days, the Treasury spokesman replied: “I would think so.” He described the trip as “purely ceremonial.” Both Japan and the United States have a lot to lose from an unsuccessful outcome to the this week’s talks. Tokyo and Washington are aware that nervous currency markets stand ready to bail out of dollars and buy yen, which economists fear could send world interest rates soaring and even lead to global recession. Baker has been the driving force behind the administration’s efforts to coordinate international economic policies and reduce global trade imbalances. Reuter 27-APR-1987 08:16:35.20 japanchina adb-asia RM f0746reute r f BC-CHINA-TO-HOST-1989-AD 04-27 0076 CHINA TO HOST 1989 ADB ANNUAL MEETING OSAKA, April 27 – The 22nd annual meeting of the Asian Development Bank will be held in Peking in 1989, a senior bank official told Reuters. China, which was admitted as the bank’s 47th member in March 1986, will take a place on the ADB board at the current meeting here, he said. Peking’s representatives have been attending board meetings over the past year as observers with no voting rights, he added. He said China, the bank’s third-largest shareholder after Japan and the United States, will take the seat on the 12-member board currently occupied by a grouping of Sri Lanka, Vietnam, the Maldives, Laos and Afghanistan. He also said the U.S., Whose nominee on the board, Joe O. Rogers, resigned in September 1986, has named Victor Frank as his replacement. Frank, a private-sector appointee, is awaiting Senate approval and will take up his post later this year, he added. REUTER 27-APR-1987 08:17:09.02 crude usa herrington F f0748reute r f BC-U.S.-CONSIDERING-OIL 04-27 0106 U.S. CONSIDERING OIL INDUSTRY TAX INCENTIVES HOUSTON, April 27 – The Reagan Administration is considering tax incentives to boost oil output and restore 100,000 jobs, U.S. Energy Secretary John Herrington said. A tax credit for new exploration would be part of a package to bring 1,000 idle drilling rigs back into operation and raise domestic production by one mln barrels a day, he said. The tax status of exploration might also be changed, Herrington told reporters at the World Petroleum Congress. He said the oil industry was experiencing difficult times internationally and had been devastated in the United States. Consumer demand and a significant decline in domestic production has resulted in a rise in oil imports of one mln barrels a day in over the last 16 months, Herrington said. “Steps must be taken…To reverse the downturn in our domestic energy industry and to safeguard and increase our energy security,” he said. The administration is committed to improving marketplace conditions and incentives to spur exploration and development. “This commitment includes rejecting quick fix solutions, like an oil import fee, which are bad for the United States and bad for the world,” he added. REUTER 27-APR-1987 08:18:43.76 italy A f0754reute h f BC-G-7-OFFICIALS-TO-MEET 04-27 0099 G-7 OFFICIALS TO MEET IN SARDINIA THIS WEEK ROME, April 27 – Representatives of the Group of Seven will meet in the Sardinian resort of Porto Cervo from April 30 to May 2 to discuss the agenda for the group’s Venice summit in June, sources close to the Italian Foreign Ministry said. The sources said the meeting would be informal and attended by the personal representatives of G-7 leaders. The sources did not comment on reports from Osaka that deputy finance ministers would attend the Porto Cervo meeting, and said there would be a complete information blackout on the gathering. The sources had no comment on statements by Japanese officials in Osaka yesterday that the falling dollar would be among topics discussed. The Japanese officials had said the meeting, while focusing on longer-term issues, would provide senior government officials with their first chance to discuss the recent sharp drop of the dollar. REUTER 27-APR-1987 08:19:58.38 money-fxdlrlit italyfrance balladur A f0762reute h f BC-BALLADUR-URGES-ADHERE 04-27 0112 BALLADUR URGES ADHERENCE TO G-7 CURRENCY ACCORDS MILAN, April 27 – French Finance Minister Edouard Balladur said the Group of Seven major industrial nations, G-7, can achieve stable currency values by adhering to accords reached this year in Paris and Washington. Balladur, asked at a news conference if coordinated market intervention by central banks was sufficient to halt the dollar’s recent slide, said “each country has to fulfill commitments” outlined in the G-7 accords. Earlier this month in Washington, finance ministers of the U.S., Japan, West Germany, France, Italy, Britain and Canada reaffirmed an earlier Paris accord to arrest the dollar’s fall. Balladur said the current nervousness in foreign exchange markets can be partly attributed to “some operators in the market only watching short term economic indicators. You have to keep a cool head,” he said, declining to elaborate further. In an earlier speech before the Milan Chamber of Commerce, the minister said European countries have to seek “a better consensus of economic and monetary policies.” On the European Monetary System, he said, “The persistent vulnerability of the foreign currency mechanism, particularly to the movements of the dollar, can be explained by the absence of a common policy for currencies of other countries.” Balladur said, “I am profoundly convinced that the European countries have to define together this position with respect to the dollar and the yen.” He said Italy eventually would have to abandon its higher margin of fluctuation within the European Montetary System. “I hope that the spectacular improvement of the economic situation and of the balance of payments will permit (Italy) to do it soon.” The lira is currently allowed a fluctuation margin either side of its agreed midpoints with other EMS currencies of six pct, against 2.25 pct permitted for the other members. REUTER 27-APR-1987 08:20:24.50 iron-steel japancanada E A f0764reute r f BC-JAPAN-STEELMAKERS,-CA 04-27 0101 JAPAN STEELMAKERS, CANADA MINE DISCUSS COAL PRICE TOKYO, April 27 – of Canada and Japanese steelmakers failed to agree on the Canadian coal base price over four years from April 1, but agreed to have another round of talks in late May, officials involved said. Japanese firms have asked for the base price to be set at 44 U.S. Dlrs per tonne (FOB), sharply lower than the 75 to 76 dlrs of the past four years, they told Reuters. The base price is reviewed every four years under the long-term accord. The Canadian mine insisted on maintaining the present price, they said. Japanese firms bought 4.75 mln tonnes of Quintette coal in 1986/87, and plan to buy the same volume in 1987/88 depending on the result of the talks, the officials said. They added Japan has no plans to withdraw its price cutback request due to recent falls in coking coal prices on the world market. Meanwhile of Canada has agreed on a Japanese proposal to set a temporary price of 75.80 Canadian dlrs on and after May shipment following the failure of the 1987/88 price talks, they said. Japanese firms plan to buy 150,000 tonnes of Gregg River coal for May shipment and hold another round of talks with Gregg in late May, they added. REUTER 27-APR-1987 08:27:25.36 ship south-korea RM f0796reute r f BC-TOP-EXECUTIVE-OF-PAN 04-27 0102 TOP EXECUTIVE OF PAN OCEAN SHIPPING CHARGED SEOUL, April 27 – South Korean prosecutors formally charged the chief executive of Pan Ocean Shipping Company, the country’s largest shipping firm, with alleged financial offences. A statement from the prosecutors’ office said charges of illegal capital movement, violation of foreign exchange laws and tax evasion were laid against Hahn Sang-yon, president of the hugely indebted company whose chairman, Park Ken-sek, fell to his death a week ago. Prosecutors said that over the past six years Hahn and Park illegally sent abroad more than 15 mln dlrs. The prosecutors said that the two executives used more than 2.7 mln dlrs of the diverted funds to acquire U.S. Real estate. The Office of National Tax Administration has sent banking experts to the United States to investigate. Park plunged to his death from his 10th floor office window on April 19. Finance Minister Chung In-young last week ordered the state-owned Korea Exchange Bank to take over Pan Ocean, burdened by debts of more than 1,000 billion won. REUTER 27-APR-1987 08:39:29.16 ipiinventories japan A f0849reute h f BC-JAPAN-INDUSTRIAL-PROD 04-27 0072 JAPAN INDUSTRIAL PRODUCTION RISES IN MARCH TOKYO, April 27 – Japan’s preliminary industrial production index (base 1980) rose 0.7 pct to a seasonally adjusted 122.8 in March from the previous month, the Ministry of International Trade and Industry said. Production had fallen 0.2 in Feburary from a month earlier. The preliminary, unadjusted March index fell 0.2 pct from a year earlier after remaining flat in Feburary. The adjusted March producers’ shipment index (same base) fell 0.6 to 117.3 from February. The unadjusted index rose 0.3 pct from a year earlier. The adjusted March index of producers’ inventories of finished goods (same base) rose 0.7 pct to 105.4 from Feburary. The unadjusted index fell 1.1 pct from a year earlier. REUTER 27-APR-1987 08:40:20.43 trade japanusa nakasone V f0852reute u f BC-NAKASONE-ADVISED-TO-E 04-27 0104 NAKASONE ADVISED TO EXPAND PURCHASES ABROAD TOKYO, April 27 – Prime Minister Yasuhiro Nakasone was advised to work out a plan for his government to buy more than one billion dlrs worth of foreign industrial products as part of efforts to defuse Japan’s trade frictions with the United States, officials said. Former Foreign Minister Shintaro Abe made the recommendation at a meeting with Nakasone soon after returning from a U.S. Visit designed to pave the way for the prime minister’s visit to Washington starting next Wednesday. Abe met President Ronald Reagan and U.S. Congressional leaders during his visit. It was not known how Nakasone responded to the suggestion. It also included increasing the nation’s untied loans to developing countries to between 25 billion and 30 billion dlrs over the next three years and giving foreign firms greater access to a six billion dlr international airport project in western Japan, officials said. Abe called for tax cuts and government funds to be funneled into public works projects to stimulate domestic demand. Abe spoke of the possibility that Nakasone’s visit could coincide with the passage of a protectionist trade bill by the U.S. House of Representatives. Reuter 27-APR-1987 08:43:28.47 trade japanusa nakasonereagan A F f0861reute r f BC-NAKASONE-TO-MEET-REAG 04-27 0090 NAKASONE TO MEET REAGAN AMID TRADE TENSIONS By Yuko Nakamikado, Reuters TOKYO, April 27 – Prime Minister Yasuhiro Nakasone, beleaguered by political turmoil at home, sets out Wednesday on a tough mission to Washington aimed at defusing the most serious U.S.-Japanese trade tension in recent memory. Two rounds of talks between President Reagan and Nakasone, scheduled for Thursday and Friday, come on the heels of the imposition by the United States of punitive tariffs on Japanese goods for the first time since World War Two. In the past, bilateral trade friction involving cotton goods, steel, television sets, textiles and cars have ended with Japan taking on voluntary export curbs. Nakasone’s visit could coincide with the passage of a protectionist trade bill by the U.S. House of Representatives. A proposed amendment to the bill, drafted by Representative Richard Gephardt of Missouri, will mandate a 10 pct annual reduction in the trade surpluses of Japan and other nations which have large trade gaps with the United States. The United States last year had a record trade deficit of 169.8 billion dlrs and Japan accounted for about one-third. Foreign Ministry spokesman Yoshifumi Matsuda said recently he was reasonably optimistic about the results of talks between the two leaders. Top U.S. and Japanese officials have shuttled back and forth across the Pacific to lay the groundwork for Nakasone’s visit. The last of the talks leading up to the main event will be in Washington next Wednesday between U.S. Secretary of State George Shultz and Foreign Minister Tadashi Kuranari. Nakasone will have an economic package worked out by the ruling Liberal Democratic Party (LDP) and by an advisory body led by former Bank of Japan Governor Haruo Maekawa. Japan plans to spend over 5,000 billion yen to boost domestic demand, increase imports of U.S. products including supercomputers and give more help to developing countries, government officials said. The government has been making last ditch efforts in time for Nakasone’s trip to address outstanding bilateral issues, officials said. The issues include foreign access to a new Japanese overseas telecommunications venture and a six billion dlr international airport project in western Japan. Nakasone and his party last week reached a compromise accord with opposition parties over a controversial sales tax plan in exchange for parliamentary passage by the Lower House of a government draft budget for 1987/88. The accord, offered by House Speaker Kenzaburo Hara, virtually killed the Nakasone-sponsored plan, but left room for future tax reform plans, political analysts said. Nakasone, who led his party to a resounding electoral triumph last July, saw his popularity drop because of the sales tax. His party suffered setbacks in an Upper House by-election and nationwide local elections in the past two months. Mitsuru Uchida, professor of political science at Waseda University, told Reuters: “I doubt that whatever Nakasone does in Washington — no matter how good it might be — would help restore his weakened power-base at home.” Many analysts said Nakasone might step down after the Venice summit of industrialized nations in June. Reuter 27-APR-1987 08:46:08.86 money-fx west-germany A f0873reute h f BC-EMS-INTERVENTION-SAID 04-27 0116 EMS INTERVENTION SAID SOMETIMES COUNTERPRODUCTIVE FRANKFURT, April 27 – Attempts to hold currency rates rigidly within tight ranges through European Monetary System intramarginal intervention can be counterproductive, bringing funds into the stronger currency from the weaker at rates still considered fairly favourable, the Bundesbank said. “The movements thus sparked can actually promote the weaker tendency of a currency, requiring still larger obligatory intervention when rates hit band limits,” it said in its 1986 annual report. The other danger was that money supply expansion could be caused in the stronger currency nation without its central bank being involved in the activity. “For this reason, currency levels should be allowed as much room for manoeuvre as possible inside the band limits when a currency is in a phase of weakness,” the Bundesbank said. “In addition, speculative positions are made more expensive to hold when interest differentials are increased.” In the report, the Bundesbank gave a rare glimpse of the extent of intramarginal and obligatory EMS intervention that has taken place since the foundation of the eight-currency system on March 13, 1979. Obligatory intervention is that required by EMS central banks when a currency reaches its agreed limit against another participating unit. Intramarginal intervention is undertaken on agreement between central banks when speculative pressure moves a currency in an unwanted direction, although it may not yet be near any allowed EMS limits. At the start of this year, central banks were very actively selling marks and supporting weaker currencies, primarily the French franc, as speculative EMS pressure grew. But the announcement by the Bank of France that it was ceasing intramarginal intervention sent the franc straight to its then-permitted floor of 31.8850 marks per 100. Data in the Bundesbank report showed the EMS central banks bought a net total 29.9 billion marks after the April 6, 1986 realignment until the selling petered out on July 7. But this was far outweighed by net purchases between July 8, 1986, and the realignment on January 12 this year totalling 63.0 billion marks – 44.1 billion of which was intramarginal and 18.9 billion was obligatory intervention. The data showed that 17.4 billion marks of the total eventually filtered into the West German monetary system. Since the latest realignment, central banks have bought 16.1 billion marks in intramarginal intervention, the Bundesbank said, without naming the banks involved. Only very high activity after the March 21, 1983 realignment came close to matching moves up to last January. Then, central banks bought a massive 61.6 billion marks in the period up to July 1985, mainly to stabilise the EMS as the dollar surged. This then turned into mark sales of a net 34.0 billion from July 11, 1985 in the run-up to the April 1986 realignment. REUTER 27-APR-1987 08:47:37.96 trademoney-fx japan tamurade-clercqyeutter ec A F f0882reute d f BC-TRADE-MINISTERS-SAY-G 04-27 0088 TRADE MINISTERS SAY GOVERNMENTS NEED CREDIBILITY By Eric Hall, Reuters KASHIKOJIMA, Japan, April 27 – Four trade ministers ended a weekend meeting with a frank confession that their governments are losing credibility in world financial markets and will not regain it until they back their promises over trade and currencies with action. “Until today we have anounced policies, but when it came to action required it was done in a way that satisfied nobody,” Japanese Trade Minister Hajime Tamura told a news conference. “From now on, if a government comes up with a certain policy, it must be followed by action,” he said following two days of informal talks with the trade ministers of the United States, the European Community and Canada in central Japan. Last week, the dollar fell to a new record low below 140 yen, despite statements from the Group of Seven (G-7) leading industrial powers that currencies should be stabilised to underpin world trade. “We need credibility to gain confidence. When we have confidence, then we can have an impact,” said Tamura. His colleagues agreed that when major trade nations fought over trade issues while calling for each other to honour free trade rules in general, it was not a sight which inspired confidence in the markets. “The time has come now to act in step with the talk. If you belong to a club, you have to act in concord with the rules, if you want to be credible,” said EC external trade chief Willy de Clercq. Pat Carney of Canada said “We are meeting in a time of great trade tension. What the world needs to see is that we have the political will to deal with these problems we face.” She said that next month’s meeting of the Organisation of Economic Cooperation and Development and the meeting of leaders of the G-7 nations in Venice in the summer would be a forum to show this will existed. U.S. Trade Representative Clayton Yeutter reminded the news conference that the results of such high level meetings could lead to action which would only have an effect on smoothing out world trade imbalances perhaps years later. “The media typically has a tendency to evaluate meetings like this in terms of tangible results. That is not the way it should be pursued,” he said. “What is achieved in an intangible way almost always exceeds what is achieved in a tangible way,” he said. Progress in personal contacts and understanding each others’ positions and policies was just as important toward reducing trade tensions, he said. Tamura read out an agreed summary of the joint talks: Currency stability was now essential, but currency movements alone would not correct a U.S. trade deficit with Japan which hit 58 billion dlrs last year, an 18 billion dlr EC deficit with Japan in 1986, and a Japanese global trade surplus of almost 90 billion, he said. Trade retaliation, protectionism, and forcible export restraints which lead to a shrinkage in world trade flows were most dangerous, he said. The imbalances can only be solved by coordinated policies over a whole range of fiscal, monetary, trade and industrial measures, and in line with a body of internationally agreed rules, he said. In this regard, the policing role of the Geneva-based General Agreement on Tariffs and Trade world trade body must be strengthened, he said. The ministers reconfirmed their individual promises to solve the problem. The United States will try to reduce its large budget deficit and restore competitiveness within its industries. Japan will introduce early and effective measures to expand its domestic growth and rely less on exports. The EC must continue efforts for balanced growth and reduced unemployment. All felt satisfied at the new progress in the Canadian economy. Reuter 27-APR-1987 08:50:10.56 money-fxdlr netherlands V f0896reute u f BC-DUTCH-CENTRAL-BANK-IN 04-27 0102 DUTCH CENTRAL BANK INTERVENES TO SUPPORT DOLLAR AMSTERDAM, April 27 – The Dutch Central Bank intervened modestly to support the dollar with spot market transactions, dealers said. They said the bank bought dollars against guilders as the U.S. Currency dipped to a low of 2.0013 guilders from 2.0130-40 on opening, the lowest since the end of January. There was no intervention at the fix, however, which put the dollar at 2.0045 guilders after 2.0280 last Friday, and dealers said the Bank’s buying was limited. “I’d be surprised if the Bank had bought as much as 100 mln dlrs,” one dealer said. Reuter 27-APR-1987 08:53:01.80 philippinesusa V f0906reute u f AM-PHILIPPINES-BLAST ***URGENT 04-27 0081 BLAST ROCKS U.S. MILITARY BUILDING IN MANILA MANILA, April 27 – An explosion rocked a building at the U.S. military office in Manila but there were no immediate reports of casualties, a police spokesman said tonight. He said investigators were still looking into the explosion inside the motor pool building of the Joint United States Military Assistance Group (JUSMAG) in a Manila suburb. Home-made bombs were thrown into the JUSMAG compound last July causing minor damage. Reuter 27-APR-1987 08:53:52.96 bahrain RM f0907reute u f BC-INVESTCORP-SIGNS-FOR 04-27 0111 INVESTCORP SIGNS FOR 75 MLN DLR CREDIT FACILITY BAHRAIN, April 27 – (Investcorp) signed for a 75 mln dlr revolving credit facility, one of the lead managers , ABC, said. The facility was first mandated for 50 mln dlrs but was increased before syndication to 60 mln when a lead group of six banks was formed. Strong demand during syndication led to another increase in the final amount to 75 mln dlrs. ABC said the facility, with a final lending syndicate of 32 banks from 13 countries, is part of Investcorp’s strategy to develop and diversify its source of funds and reduce its borrowing costs. ABC as overall arranger said the facility will be used to finance Bahrain-based Investcorp’s general corporate funding requirements. It can be exercised in three different ways. These are through the issue of euronotes or advances by tender, the extension of committed advances by underwriting banks, or the issue of contingent obligations from a panel of selected banks. The facility has a maturity of three years, with interest on committed advances based on utilisation from 17.5 basis points over London Interbank Offered Rates for one third to 20 basis points for two thirds and 22.5 for an amount above that level. REUTER 27-APR-1987 08:54:37.14 tin uk itc C M f0912reute b f BC-TIN-PACT-EXTENDED-FOR 04-27 0094 TIN PACT EXTENDED FOR TWO YEARS LONDON, April 27 – The Sixth International Tin Agreement, ITA, has been extended for two years from July 1, 1987, the International Tin Council, ITC, said. The extension was formally agreed at a resumed special session of the council held here this morning and follows a session early this month when the council agreed in principle to extend the pact but had to await the formal approval of some member governments. The extension will enable the council to continue with its statistical work and studies of the tin industry. Reuter 27-APR-1987 09:06:52.84 tradealumzincpet-chemiron-steelgrainwheatcorncottonoilseedsoybean south-koreausa C G M f0937reute u f BC-SEOUL-UNVEILS-SHOPPIN 04-27 0132 SEOUL UNVEILS SHOPPING LIST OF U.S. GOODS SEOUL, April 27 – South Korea unveiled a shopping list of 2.6 billion dlrs of U.S. Goods in line with its new policy of seeking to limiting its trade surplus to ease trade friction with Washington. The government said this would help freeze this year’s trade surplus with the United States at the 1986 level. “The surplus, which rose to 7.4 billion dollars last year from 4.3 billion in 1985, was projected to top 10 billion this year but the government has taken steps to constrain it to the seven billion dollar level,” one Trade Ministry official told Reuters. A government statement said the 2.6 billion dlrs was in addition to about two billion dlrs of purchases made last month by a South Korean trade mission to the United States. The announcement follows a visit here this week by U.S. Commerce Secretary Malcolm Baldrige, who said that if South Korea wanted to avoid protectionist retaliation it should not falter in its policies to open its market and cut its surplus. The statement said the government, state agencies and other public institutions would buy 480 mln dlrs worth of U.S. Cars, computers, helicopters, ambulances, motorcycles, medical and laboratory equipment and other products. “This amounts includes 89 mln dlrs worth of purchases which were not originally reflected in their budgets,” it added. The list includes 1.13 billion dlrs of capital goods, 700 mln of farm products, 50 mln of aluminium, zinc, polyethylene and other raw materials, and 250 mln of steel, electronics and shipbuilding parts which would be shifted from other nations. Agriculture Ministry officials said South Korea had already bought 310 mln dlrs worth of U.S. Wheat, raw cotton, corn and soybeans. This meant the country would buy from the United States nearly all of the 1.27 billion dlrs of its planned imports of such commodities this year, they said. The government will also take steps to reduce tariffs, accelerate the opening of its markets, voluntarily restrain exports and cut export financing, the statement said. South Korea will also reorganise the country’s 3,600 trade agents to deliver better after-sales services for imported products and hold a trade show in November for U.S. Products. Reuter 27-APR-1987 09:09:20.32 money-fxdlr west-germany stoltenberg RM f0951reute r f BC-STOLTENBERG-REAFFIRMS 04-27 0109 STOLTENBERG REAFFIRMS COMMITMENT TO LOUVRE ACCORD BONN, April 27 – Finance Minister Gerhard Stoltenberg reaffirmed his commitment to the Louvre accord struck in Paris where leading industrialised countries agreed to stabilise the dollar around then current levels. He told a congress of West German tax advisers in Hamburg the policy agreed in Paris has so far been successful in the mark/dollar relationship. “We want to continue it (the policy),” Stoltenberg said. According to a text of his remarks released in Bonn, he also said trade tensions in specific branches had to be overcome and he warned against any return to protectionism. REUTER 27-APR-1987 09:09:40.27 acq italyfrancesweden balladur F f0954reute d f BC-BALLADUR-DEFENDS-CGCT 04-27 0112 BALLADUR DEFENDS CGCT DECISION ON ERICSSON MILAN, April 27 – French Finance Minister Edouard Balladur said the government awarded control of (CGCT) to a consortium headed by Sweden’s AB LM Ericsson last week because its proposal was “judged technically sound and valid.” Balladur, responding to a question following a speech before the Milan Chamber of Commerce, said the successful bid by Ericsson and French partners Matra and was “well organised and equipment will be readily available.” He did not comment further. CGCT has 16 pct of France’s telephone switching market. Reuter 27-APR-1987 09:22:45.97 iron-steel canada E F f0994reute r f BC-stelco,-uswa-reach 04-27 0104 STELCO , USWA REACH CONTRACT SETTLEMENT TORONTO, April 27 – Stelco Inc said contract negotiations with United Steelworkers of America concluded in a memorandum of settlement for a new three-year collective agreement covering about 12,000 workers at 15 of Stelco’s plants. Further terms of the new agreement were not immediately disclosed. The company said early negotiations began March 2, 1987 in order to reach a new contract well before the July 31, 1987 expiry of the existing contract. It said the new contract was endorsed by negotiating committees of all union locals representing Stelco workers. Reuter 27-APR-1987 09:32:02.19 reserves taiwan RM f1021reute r f BC-TAIWAN-CRITICISED-FOR 04-27 0107 TAIWAN CRITICISED FOR AMOUNT OF DOLLAR HOLDINGS TAIPEI, April 27 – About 20 members of the Taiwan parliament criticised the government for holding too much of foreign exchange reserves in U.S. Dollars and asked the cabinet to diversify these holdings into other major currencies. A parliament statement said the criticism came from 18 Kuomintang (nationalist) legislators and several opposition members, who asked the government to diversify reserves into mark, yen, Swiss franc, other currencies or gold. It said that from September 1985 to September 1986 the central bank’s exchange rate loss was about 144 billion Taiwan dlrs. Fourteen local banks lost 12.6 billion Taiwan dlrs during the period, it said. In the same time span the Taiwan dollar rose to 36.77 to the U.S. Currency from 40.45. It closed at 33.17 today. The statement said the central bank’s loss this year would more than double because of the rising Taiwan dollar and reserves, which had reached 54 billion U.S. Dlrs last week. Government legislators said they expected the reserves to increase to more than 60 billion U.S. Dlrs this year and the trade surplus to increase by about 15 billion U.S. Dlrs, compared with 15.6 billion last year. REUTER 27-APR-1987 09:34:23.40 acq usa F f1031reute d f BC-HUNTINGDON- 04-27 0062 HUNTINGDON IN ACQUISITION TALKS NEW YORK, April 27 – Huntingdon International Holdings plc said it has entered into discussions with a view to acquiring Northern Engineering and Testing Inc, a company based mainly in the northwestern United States. The company said Northern Engineering had sales of approximately 6.5 mln dlrs in the year ended March 31. Reuter 27-APR-1987 09:44:52.36 ship uk F f1068reute h f BC-TOWNSEND-FERRY-INQUIR 04-27 0097 TOWNSEND FERRY INQUIRY TOLD BOW DOORS TO BLAME LONDON, April 27 – The Zeebrugge ferry disaster, in which around 200 people drowned seven weeks ago, was almost certainly caused by the ship leaving port with its bow doors wide open, a British government inquiry was told. Lawyer David Steel, representing the government, told the opening session of a public inquiry into the March 6 tragedy that this was “the only tenable explanation.” The ferry, the Herald of Free Enterprise, is owned by Townsend Thoresen, part of P and O’s subsidiary European Ferries Group. Steel, commissioner of wrecks for England and Wales, said the inquiry would probably conclude that the ferry capsized in calm seas and fair weather a mile outside the Belgian port when water poured into the car deck. “We think you will also conclude that the immediate cause of that was that the doors were open, he said. Steel told the tribunal it appeared no attempt was made to close either the inner or outer bow doors prior to what should have been a routine voyage to the English port of Dover, despite a provision in the ship’s “Stability Booklet” that the doors were to be closed and kept closed. Reuter 27-APR-1987 09:47:10.87 hoglivestock usa C L f1076reute u f BC-slaughter-guesstimate 04-27 0063 HOG AND CATTLE SLAUGHTER GUESSTIMATES CHICAGO, April 27 – Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today’s hog slaughter at about 275,000 to 285,000 head versus 157,000 week ago and 305,000 a year ago. Cattle slaughter is guesstimated at about 120,000 to 126,000 head versus 109,000 week ago and 133,000 a year ago. Reuter 27-APR-1987 09:50:27.58 dlrmoney-fx usa james-baker V RM f1082reute b f BC-/WHITE-HOUSE-DECLINES 04-27 0090 WHITE HOUSE DECLINES COMMENT ON DOLLAR’S SLIDE WASHINGTON, April 27 – White House spokesman Marlin Fitzwater declined to comment on the continuing slide of the dollar against the Japanese yen, but said Treasury Secretary James Baker was watching developments. “Jim Baker is monitoring that at the Treasury Department, but at this point we don’t have any comment to make on the dollar,” Fitzwater told reporters. He was asked at a briefing whether the White House was concerned about the continuing decline in the dollar’s value. Reuter 27-APR-1987 09:52:08.27 usa james-baker V RM f1086reute b f BC–debt 04-27 0107 TREASURY’S BAKER ASKS FAST ACTION ON DEBT BILL WASHINGTON, April 27 – Treasury Secretary James Baker is urging Congress to pass legislation promptly to raise the ceiling on U.S. debt the United States can borrow, Senate majority leader Robert Byrd said. Byrd told reporters Baker visited him late Friday to urge Congress not to add time-delaying amendments to the debt ceiling bill that Congress must pass before May 15. Byrd, a Democrat, said he agrees but said others may want amendments. The current ceiling of 2.3 trillion (2,300 billion) dlrs drops on May 15 to 2.1 trillion dlrs, a level considered too low for U.S. borrowing. Reuter 27-APR-1987 09:59:44.27 money-fxtrade usa A f1102reute r f BC-BANKER-SEES-CURRENCY 04-27 0108 BANKER SEES CURRENCY FALLING TO BALANCE TRADE BOCA RATON, Fla., April 27 – A leading regional banker said that it was axiomatic that despite market intervention, a country’s currency will eventually fall to an exchange rate which balances its international trade and payments accounts. John Medlin, president and chief executive officer for the First Wachovia Corp, said that “substantial and rapid currency devaluations usually are followed in time by surging price inflation, spiralling interest rates and painful economic austerity.” Speaking to a banking trade group, he also said the peak of debt writeoff has not yet been reached. Medlin told the Bankers Association for Foreign Trade that ultimately “our nation’s budget and trade deficits will be balanced either through voluntary restraints in spending and consumption or through forced austerity imposed by a dispassionate and unmerciful international market place.” He said the continuing weakness of the dollar and the recent increase in inflation and interest rates “provide early warning that the classic laws of international economics still are in effect.” He also told the association that trying to reduce the trade deficit by erecting protectionist barriers to imports would not give lasting relief. “However, the imposition and enforcement of fair trade rules could help improve imbalances with nations which practice protectionism and deception on us.” Medlin noted that the U.S. economy was likely to continue “at best being a sluggish mixture of depressed segments and growth areas.” But he said that the business cycle was still alive and that the next downturn “could be deeper and harder to reverse than the last one.” Reuter 27-APR-1987 10:07:30.73 grainacq west-germanyusa C G f1131reute d f BC-CONAGRA-TAKES-OVER-WE 04-27 0093 CONAGRA TAKES OVER WEST GERMAN TRADE HOUSE BREMEN, April 27 – One of West Germany’s major feedstuff and grain traders, Kurt A. Becher GmbH and Co KG, said ConAgra Inc of the U.S. Was taking it over, effective June 1. Becher said ConAgra, which already owns 50 pct of the trade house, would take over the remaining 50 pct from the Becher family. Further details were not immediately available. ConAgra, based in Omaha, Nebraska, is a foodstuff company and has access to world markets through its agricultural trade subsidiary, ConAgra International. Reuter 27-APR-1987 10:15:31.74 canadausa E F f1161reute u f BC-northern-telecom 04-27 0098 NORTHERN TELECOM U.S. UNIT SETS NEW GROUP TORONTO, April 27 – Northern Telecom Ltd’s U.S. unit will announce a reorganization today to form a new division focusing on sales and servicing of data communications equipment, spokesman Richard Lowe said. The new division, called data communications and networks, will be formed effective May 1 and will market, sell and service data communications equipment, Lowe said from Northern Telecom Inc’s Nashville, Tenn. headquarters. The group will include the company’s sales to the U.S. federal government and U.S. military, he said. The U.S. unit’s new division will also concentrate on sales to large end user customers who have a variety of equipment combined in one network, as well as data packet switching business for either public or private networks, Northern Telecom spokesman Lowe said. Lowe said the company anticipates revenues from the new operating group will be about 350 mln dlrs in 1987, increasing to about one billion dlrs in five years. “Raising this to a group level within the company demonstrates the importance we see in this marketplace and the rapid growth that could occur there,” Lowe said. Lowe said the business of the new group was previously part of Northern Telecom Inc’s Dallas-based private branch exchange division. Northern Telecom Inc accounted for about 65 pct of parent company Northern Telecom Ltd’s 1986 revenues of 4.38 billion dlrs. Northern Telecom, North America’s second largest telecommunications equipment designer and manufacturer, is 52 pct owned by Bell Canada Enterprises Inc . Reuter 27-APR-1987 10:18:34.80 dlrmoney-fxinterest usa V RM f1175reute b f BC-/PRESSURE-GROWS-FOR-U 04-27 0104 PRESSURE GROWS FOR U.S. ACTION TO AID DOLLAR by Jeremy Solomons, Reuters NEW YORK, April 27 – Pressure is growing in the financial markets for the U.S. to take overt action to stabilize the dollar even though doubts linger that it has fallen far enough to help redress world trade imbalances, economists and dealers said. Some experts believe that a half-point increase in the U.S. discount rate, preferably in conjunction with rate cuts in Tokyo and Bonn, would be enough to discourage sellers. But many fear that more drastic action, such as a U.S. issue of yen-denominated Treasury bonds, may be needed. Despite official warnings about the dangers of a further dollar decline and concerted central bank intervention, the dollar extended its recent sharp depreciation, touching a 40-year low of 137.25 yen in Tokyo earlier today after closing here on Friday at 139.30/40. The impact on other financial markets was devastating. In Tokyo, the stock market suffered its largest single day decline; in London, gold bullion prices rose to four-year highs and in the U.S., long Treasury bond yields surged above 8.80 pct and the Dow Jones Industrial Average fell more than 40 points in hectic early trading. “The problem now is linkage. This is not just a currency problem. It is affecting all the markets,” said one senior trader at a major U.S. bank. Up until September of last year, international efforts to redress world trade imbalances appeared to working like a dream; the dollar was falling in an orderly manner, world interest rates were tumbling and inflation was kept in check. In recent months, however, this strategy has begun to show signs of severe stress, with the U.S. imposition of punitive tariffs on Japan threatening to unravel this spirit of cooperating and condemn the world to a damaging trade war. “The markets fear that we have built up a momentum that is really difficult to stop. A U.S. rate hike has become an inevitability,” one currency dealer said. “At this point, nothing short of a Fed discount rate increase, ideally combined with further discount rate cuts by Japan and Germany, would seem capable of stabilizing the dollar,” said David Jones of Aubrey G. Lanston and Co Inc. Allen Sinai of Shearson Lehman Brothers Inc predicted a 1/4 to 1/2 point U.S. rate increase before May 19 and a rise in U.S. bank prime lending rates to eight pct from 7-3/4 pct in the near future. But many economists feared that any moderate U.S. rate increases, which appear unlikely to be matched by rate cuts overseas, would be too little, too late. “They should have done this 10 days ago. It would have done the trick then,” said one currency analyst. “If they do it now, it would be seen as a defensive measure not an offensive one. It would show policy weakness not strength,” added one trader. In addition, economists fear that a discount rate rise might place additional strain on a sluggish U.S. economy and tempt embattled debtor nations to retaliate. A U.S. discount rate increase would also fuel the protectionist fires in Washington, where the House is expected to pass a protectionist trade bill, whatever compromises President Reagan and Prime Minister Nakasone can come up with during their summit later in the week. “Politically, they can’t really do it this week,” said one currency analyst, pointing out that if it failed to stabilize the dollar, it would only weaken the U.S. negotiating stance. Even if the U.S. retains the upper hand, economists and traders do not hold out high hopes for any major new initiatives from this week’s talks. At best, the experts see some sort of accord whereby Japan will agree to stimulate growth and open its domestic markets to outsiders while the U.S. promises to lift its tariffs and support the Group of Seven dollar stabilization agreement. But many fear that this may not be enough to assuage the market’s speculative selling fervor, which has now raised fears of weak overseas interest at next week’s quarterly U.S. Treasury refunding program. Japanese and European investors have traditionally played an active role in these auctions, which are expected to total 28 to 29 billion dlrs. Consequently, thoughts are turning to the possibility that President Reagan may try to remove foreign investors’ worries about currency risk by financing part of the U.S. budget deficit in yen or mark bonds, rather than dollars. While similar action by former President Carter helped to stabilize the dollar in 1978, the White House is clearly reluctant to take such a step, economists said. This hesitance was amply shown last Friday when U.S. Treasury Secretary James Baker said, “there might well be some who would view (yen-denominated bonds) as a lack of confidence by the U.S. in its own currency.” Baker added, “therefore we don’t think it’s an appropriate thing to do.” A foreign exchange analyst at a major Japanese bank here shared Baker’s doubts. “Dollar defending measures are very unlikely. They will confirm the dollar’s weak undertone and lead to further speculative dollar selling,” he said. Thus, it may be less destabilizing for the authorities to stop trying to fight the market’s bearish sentiment. In a recent lengthy report, economists at Morgan Guaranty Trust Co concluded, “the dollar should be left free to trade at whatever level market forces produce.” Reuter 27-APR-1987 10:20:08.53 usa F f1185reute r f BC-ITT-CORP--CONFID 04-27 0088 ITT CORP CONFIDENT ABOUT FISCAL 1987 NEW YORK, April 27 – ITT Corp said first quarter results, reported earlier, were substantially ahead of budget and added it is confident of a continued improvement by all divisions in the remainder of the year. The company said the natural resources division more than doubled its contribution from the year ago quarter while the diversified services business reported strong operating results due to continued improvement in the domestic casualty business at The Hartford. It said the operationg performance of the industrial and defense technology business was above expectations but below the year ago result. Reuter 27-APR-1987 10:22:14.05 usa F Y f1198reute u f BC-DU-PONT-
    -NET-DOWN 04-27 0086 DU PONT
    NET DOWN ON OIL EARNINGS DECLINE WILMAINGTON, Del., April 27 – Du Pont Co, reporting lower first quarter profits, said a drop in energy earnings was only partially offset by surging chemical and specialty products. Du Pont earned 391 mln dlrs, or 1.62 dlrs a share, in the latest quarter, down from 404 mln, or 1.67 dlrs a share, in 1986’s initial quarter. It had sales of 7.13 billion dlrs, down from 7.17 billion last year and total revenues of 7.20 billion dlrs down from 7.29 billion dlrs. Du Pont said after-tax operating income for its chemical and specialty products businesses totaled 393 mln dlrs in the latest quarter, rising 55 pct from last year’s first quarter due to improved results from most businesses, notably fibers, white pigments and specialty polymers. Results benefited from improved worldwide demand and lower costs attributable to lower energy feedstock prices, earlier restructurings, and efforts to improve productivity. It said sales of these businesses were up eight pct to 4.2 billion dlrs on a sales volume increase of five pct and three pct higher average prices, reflecting a weaker dollar. Du Pont said after-tax operating income from the petroleum segments dropped 64 pct from a year ago to 55 mln dlrs in the latest quarter. These results reflect lower refined petroleum product margins and lower worldwide crude oil and domestic natural gas prices. Coal earnings were down 27 pct on lower prices. The company said it anticipates continued strong results from chemicals and specialty products as worldwide demand remains high. Improvement in petroleum will require flat or improved crude oil prices and improved refined product margins. Reuter 27-APR-1987 10:28:14.37 jobs france RM f1216reute b f BC-FRENCH-MARCH-UNEMPLOY 04-27 0066 FRENCH MARCH UNEMPLOYMENT RISES TO RECORD 11.1 PCT PARIS, April 27 – France’s seasonally adjusted unemployment rate rose to a record 11.1 pct of the workforce at end-March compared with 11 pct at end-February, the National Statistics Institute (INSEE) said. The total number of unemployed edged up to 2.67 mln at end-March from 2.65 mln at end-February, an INSEE spokeswoman said. REUTER 27-APR-1987 10:35:02.45 crude usa Y F f1245reute b f BC-/EXXON--SEES-DRO 04-27 0084 EXXON SEES DROP IN NEW OIL DISCOVERIES HOUSTON, April 27 – Exxon Corp chairman Lawrence Rawl said total world energy consumption will continue to grow, but added new oil discoveries worldwide are slowing down and can not offset annual production. In a speech at the World Petroleum Congress here, Rawl said oil companies would increasingly be forced to turn to enhanced recovery techniques, very heavy oil and synthetics to compensate for substantial declines in conventional oil production. “What our current outlook suggests is that total world energy consumption will continue to grow steadily in an ever more energy efficient world,” Rawl said. But, he added, Exxon projects that “despite today’s ample supplies, the world will also be facing up to inherent limitations on the availability of oil and gas, which currently supplies more than half of the world’s energy needs.” The Exxon chairman told some 1,500 oil executives from around the world that some synthetics projects could become practical when oil reaches 30 dlrs to 40 dlrs a barrel range in real terms. “The question is when and how this will happen,” he said. “I believe that synthetic projects will not only re-emerge but will become commercial well below those we were thinking about the last time oil prices moved substantially higher.” Rawl said synthetic fuel would become economic at lower prices because companies are investigating “a new generation of ideas that promise substantially lower costs” and projects begun in the late 1970s, which have since been suspended. Rawl also said companies must find new and more effective ways of enhanced recovery from existing oil fields. “It would be my view that new oil discoveries, even with advanced technology, are likely to slow down – not reverse – the decline in worldwide oil discoveries,” he said. “So it is essential to find a better way to recover more of the discovered oil from producing fields using chemicals, solvents, heat, and other techniques.” Rawl emphasized that private oil companies need some assistance from government in developing synfuels technology. “More importantly, they need to provide a political and economic environment that is stable enough to allow the developmental process to function effectively, he said. Rawl also said stable energy markets serve the best interest of producing and consuming nations by allowing both groups to plan for steady economic growth. He did not make any oil price prediction, saying only that the economic goals of the U.S. and other nations can only be achieved if world oil prices “stabilize within a reasonable range.” “Prices must be high enough to meet realistic aspirations for income and encourage resource development in the producing countries, but not so high as to inhibit economic growth in consuming nations,” he said. The Exxon chairman also criticized “the occasional attempt of consuming nations to try to control domestic oil prices, calling such protectionist measures disruptive to the world oil market. Reuter 27-APR-1987 10:36:12.75 sugar francewest-germany ec C T f1255reute b f BC-FRENCH-PRODUCERS-WITH 04-27 0081 FRENCH PRODUCERS WITHDRAW SUGAR FROM INTERVENTION BRUSSELS, April 27 – French producers have withdrawn all offers to sell more than 700,000 tonnes of sugar into European Community intervention stocks, EC Commission sources said. They also said West German producers had now withdrawn the last 3,000 of the 79,250 tonnes they sold into EC stores on April 1. The sales were made to protest against the level of export restitutions being granted for sugar at weekly EC tenders. Last Friday, commission sources said the West German producers had withdrawn all but 3,000 tonnes of their sales. The protest by European producers involved sales of 854,000 tonnes of sugar into intervention, of which 785,000 tonnes were accepted by the commission. Under EC regulations, operators had five weeks before receiving payment to withdraw the sugar. Their decision to withdraw the sugar follows what commission sources have said is a slight shift in the authority’s stance in recent weeks. The commission last week increased the maximum restitutions to within about 0.5 Ecus per kilo of the prices which traders claim are needed to match intervention prices. Reuter 27-APR-1987 10:36:51.27 usa F f1260reute r f BC-BRUNSWICK--NET-GA 04-27 0113 BRUNSWICK NET GAINS DESPITE CHARGE SKOKIE, April 27 – Brunswick Corp said its first-quarter sales and profits hit records despite an after-tax charge of about 10 mln dlrs from its new boat-building units. The 10 mln dlrs charge, or 22 cts a share, was for amortization of intangible assets at Bayliner and Sea Ray, two boatmakers acquired in December, a spokesman told Reuters. Earlier it said net profits for the period were 34.7 mln or 78 cts a share versus 23.8 mln or 57 cts a share a year ago. Its Mercury unit’s first-quarter sales increased 26 pct and operating earnings rose 19 pct, while its industrial products unit operated at a slight loss, it said. Reuter 27-APR-1987 10:40:56.39 graincorn usa C G f1281reute u f BC-/CCC-ADJUSTS-PIK-DIFF 04-27 0132 CCC ADJUSTS PIK DIFFERENTIALS FOR GULF CORN CHICAGO, April 27 – The Commodity Credit Corporation late Friday readjusted county price differentials for PIK corn redemptions traded off the Louisiana Gulf, according to a CCC spokesman at the Kansas City Agricultural Stabilization and Conservation Service, ASCS, office. He said the adjusted differentials supersede the adjustments made March 30. They represent an increase over the original differentials but are lower than the differential adjustments recently made. For differentials of five to 15 cents, CCC added one cent. For 16-25 cents add two cents, for 26-35 cts add three cts, for 36-45 cts add four cts and for 46-55 cts add five cts. The recent drop in barge freight rates prompted the adjustments, the source said. Reuter 27-APR-1987 10:41:33.85 acq uk F f1287reute r f BC-CHEVRON-SELLS-THREE-N 04-27 0118 CHEVRON SELLS THREE NORTH SEA INTERESTS LONDON, April 27 – Chevron Corp’s said it sold interests in two North Sea blocks and part of a third block to . The two firms said they have signed an agreement which transfers Chevron’s interests, comprising 29.41 pct in block 2/10b under licence p326, 29.41 pct in block 2/15a under licence p327 and part of block 2/10a under licence p234. The part of block 2/10a which is being sold covers Chevron’s interest in the Emerald accumulation, discovered by the company in 1978. Chevron is retaining its 25 pct interest in the remainder of block 2/10a and in block 3/28a under licence p234. Reuter 27-APR-1987 10:42:25.35 sugar usa C G T f1292reute d f BC-HIGH-COURT-REFUSES-TO 04-27 0109 U.S. COURT REFUSES TO DISMISS ADM-NABISCO SUIT WASHINGTON, April 27 – The Supreme Court refused to dismiss a Justice Department civil suit charging Archer Daniels Midland Co, ADM, and Nabisco Brands Inc with violating the antitrust laws. The high court let stand lower court rulings that rejected the motion by the two companies seeking dismissal of the suit. The suit challenged the 1982 agreement by Nabisco to lease both of its high fructose corn syrup, HFCS, plants to ADM. The department said that before 1982 ADM was the second largest U.S. producer of HFCS while Nabisco ranked third. The deal made ADM the nation’s largest producer. Reuter 27-APR-1987 10:43:31.44 trade usajapan reagan V RM f1296reute b f BC-/REAGAN-HOPES-TO-LIFT 04-27 0089 REAGAN HOPES TO LIFT JAPAN SANCTIONS SOON WASHINGTON, April 27 – President Reagan said he hoped the United States could lift trade sanctions against Japan soon. But he said the United States would do what is necessary to see that other nations lived up to their trade agreements. In a speech prepared for delivery to the U.S. Chamber of Commerce, he said, “I hope that, before long, we can lift these (Japanese trade sanctions) and that this episode will be recorded as a small incident in the building of our relationship.” But, Reagan added, “we will do what is necessary to see that other nations live up to their obligations and trading agreements with us. Trade must be free. It must also be fair.” Reagan said the decision to impose 100 pct tariffs on 300 mln dlrs worth of electronic exports to the United States sent a message it was time to complete a U.S.-Japan “trade bridge.” “The final answer to the trade problems between America and Japan is not more hemming and hawing, not more trade sanctions, not more voluntary restraint agreements – though these may be needed as steps along the way – and certainly not more unfulfilled agreements,” he said. Reagan said the answer was genuinely fair and open markets on both sides of the Pacific – “and the sooner, the better.” Reagan said the administration’s tools for dealing with unfair trade practices met the need for both firmness and finesse. He said trade legislation pending in Congress would be dangerous because it would force the administration to use “a steamroller against unfair practices every time, no matter whether the steamroller would open the trade doors or flatten the entire house,” he said. Reagan said that ending every unfair trade practice in Japan would cut the U.S. trade deficit by only about 10 pct. “If our trade deficit is to come down, more must be done — and is being done,” he said. “The change in the dollar’s value is part of it, and since the middle of last year, the actual volume of our exports had been on the rise,” he said. He also said he believed America’s trading partners should cut taxes and regulations, as the United States had done, so that they could create jobs and buy more goods. Reuter 27-APR-1987 10:45:47.53 usa F f1306reute r f BC-NCR--SLASHES-PRI 04-27 0110 NCR SLASHES PRICES ON PERSONAL COMPUTERS DAYTON, Ohio, April 27 – NCR Corp said it cut prices on its personal computers, the 80286-based PC8 and 8088-based PC6 models, by 10 pct to 21 pct effective immediately, to maintain a competitive position on pricing. NCR said prices of its high-end PC8 models have been cut by 10 pct to 13 pct and by 10 pct in its PC8 model designed to compete with 286-based XT-level PCs. It also reduced the list price of its PC6 model configured with 256 RAM and 360 K flex drive, along with other products in the line. NCR also said it reduced the price of its 64MB fixed disk drive to 2,995 dlrs from 3,595 dlrs. Reuter 27-APR-1987 10:49:30.03 oilseedsoybeanstrategic-metal netherlands C G M f1325reute d f BC-SOY-PLANTS-MIGHT-BE-U 04-27 0114 SOY PLANTS MIGHT BE USED TO DRAW CADMIUM FROM SOIL ROTTERDAM, April 27 – Effective extraction of the toxic metal cadmium from soil may at last be feasible using soybean plants, research in the Netherlands by a Belgian-based environment group shows. Cadmium, naturally drawn up by plants and passed on to consumers, has been shown to produce kidney damage and resulting calcium loss as well as causing high blood pressure and cancers, a spokesman for the Ecological Life and Cultivation (VELT) said. Three years of experiments by the organization showed soybean plants extracted up to 16 pct of soil-borne cadmium, which went into the leaves and not into the beans themselves. Cadmium is present in the soil because of emissions in the past by factories producing non-ferrous metals, the spokesman said. “Although many of these factories are now using far safer methods of manufacture, the cadmium is already in the soil and until now there has been no way to get rid of it,” he said. Reuter 27-APR-1987 10:56:15.68 trade hungary ec RM f1357reute r f BC-EC-TO-BEGIN-TALKS-ON 04-27 0119 EC TO BEGIN TALKS ON ECONOMIC PACT WITH HUNGARY LUXEMBOURG, April 27 – European Community foreign ministers agreed to formal talks on signing an economic pact with Hungary, in a move which could clear the way towards establishing EC diplomatic ties with Budapest, EC officials said. They said Community foreign ministers agreed to mandate the EC executive Commission to open talks on a cooperation pact which would boost trade and economic ties with Hungary. Earlier this year, Hungarian Deputy Prime Minister Jozsef Marjai said Hungary might be willing to normalise relations with the Community in exchange for such a deal, according to EC officials. No date has been fixed for opening the talks. REUTER 27-APR-1987 10:59:16.05 usa F f1370reute r f BC-CRANE--SHAREHOLDE 04-27 0091 CRANE SHAREHOLDERS APPROVE 3-FOR-2 SPLIT NEW YORK, April 27 – Crane Co said shareholders at its annual meeting approved a three-for-two stock split of its common to shareholders of record May seven. Crane said the additional shares will be issued on or about May 21. It said the number of common shares outstanding will increase to 23.7 mln from 15.8 mln. Crane also said shareholder’s approved an increase in the company’s common to 80 mln from 40 mln and authorized five mln shares of preferred stock with a par value of one ct. Reuter 27-APR-1987 10:59:47.11 acq canada E F f1371reute r f BC-NATL-BUSINESS- 04-27 0099 NATL BUSINESS SUBSIDIARY IN BUYOUT TORONTO, April 27 – National Business Systems Inc said its Transact Data Services Inc subsidiary agreed to acquire Access ATM Network Inc ‘s 1.6 mln outstanding shares for 1.6 mln dlrs cash. The company said the deal was conditional on Access completing the previously announced sale of its automated teller machine assets to unidentified buyers and approval by Access shareholders. Closing is expected in May, it said. National Business said Transact Data planned to amalgamate Access’s software and switching capability operations. Reuter 27-APR-1987 11:01:32.42 sugar ukperu C T f1379reute b f BC-PERU-FAILS-TO-BUY-SUG 04-27 0075 PERU FAILS TO BUY SUGAR AT WEEKEND TENDER LONDON, April 27 – Peru failed to conclude any purchases at its weekend buying tender for two cargoes June shipment white sugar owing to the sharp price rise that day, traders said. However, the country had bought whites last week at 202.90 dlrs a tonne cost and freight for May/June, they said. Meanwhile there was no news of the recent tender quest by Algeria for 30,000 whites, the traders said. Reuter 27-APR-1987 11:02:46.90 sugar uksyria C T f1387reute u f BC-SYRIA-SEEKING-WHITE-S 04-27 0038 SYRIA SEEKING WHITE SUGAR NEXT MONTH – TRADE LONDON, April 27 – Syria is holding a buying tender on May 6, for reply the next day, for 24,000 tonnes white sugar for shipment in two equal parts in June and July, traders said. Reuter 27-APR-1987 11:07:13.72 money-fx usa V RM f1416reute b f BC-/-FED-EXPECTED-TO-SET 04-27 0102 FED EXPECTED TO SET MULTI-DAY REPURCHASE PACTS NEW YORK, April 27 – The Federal Reserve is expected to directly supply temporary reserves by arranging three or four-day System repurchase agreements, economists said. They said there is less chance that it will add reserves indirectly instead. If the Fed fails to supply reserves, however, economists said this will be a strong indication that it is firming policy, perhaps in preparation for a near term discount rate increase from 5-1/2 pct. Federal funds, which averaged 6.29 pct on Friday, opened at 6-7/16 pct and remained there in early trading. Reuter 27-APR-1987 11:07:40.39 france RM f1420reute u f BC-BANQUE-NATIONALE-DE-P 04-27 0095 BANQUE NATIONALE DE PARIS TO RAISE CAPITAL PARIS, April 27 – French state-owned Banque Nationale de Paris is planning a one-for-10 capital increase in the next few months, the bank announced at its annual press conference. BNP is planning to distribute one new share or investment certificate for every 10 held. The French state is a 99.97 pct shareholder in the bank, which is due for privatisation during the next five years under the government’s plan to return 65 state-owned banks, insurance companies and industrial groups to the private sector. REUTER 27-APR-1987 11:08:48.24 usa F f1426reute r f BC-STANLEY-WORKS--S 04-27 0087 STANLEY WORKS SEES RECORD 1987 NET NEW BRITAIN, Conn., April 27 – Stanley Works said it expects record sales and earnings in 1987 against earnings of 78.7 mln dlrs on sales of 1.37 billion dlrs in 1986. “We feel confident that, with our present momentum, the Stanley Works is positioned for strong performance with record sales and earnings expected for 1987,” chairman Donald W. Davis said. The company said its first quarter earnings from operations rose to 19.2 mln dlrs from 14.8 mln dlrs a year ago. Reuter 27-APR-1987 11:09:07.13 sugar west-germany ec C T f1428reute u f BC-EC-SUGAR-STANCE-LED-T 04-27 0112 EC SUGAR STANCE LED TO GERMAN INTERVENTION MOVE BONN, April 27 – A shift in the European Community’s attitude to exports led to West German producers withdrawing sugar sold into intervention, industry sources said. The sources noted the withdrawal followed a rise in maximum Commission restitutions to within 0.5 European currency units, Ecus, per 100 kilos of the level traders claim is needed to match intervention prices. One source said, “This was taken as a sign that the Community was taking a more favourable stance towards exports.” He added producers still expected more from the Commission. German producers had sold 79,250 tonnes into intervention. Reuter 27-APR-1987 11:10:08.59 acq usa F f1433reute b f BC-FEDERATED--TO-BU 04-27 0102 FEDERATED TO BUY UNIT CINCINNATI, Ohio, April 27 – Federated Department Stores Inc and Allied Stores, currently wholly owned by Robert Campeau, said they have entered into a definitive stock purchase agreement for the sale of Allied’s Blocks Inc unit to Federated for 55 mln dlrs cash. The price is subject to certain cloising adjustments, the companies said. Allied said it is selling Blocks, which operates 10 department stores under that name in Indiana and Ohio, and two Michigan stores under the Herpolsheimer’s name, under its previously announced restructuring program. The transaction is expected to close in June of this year when the twelve Blocks stores will be operated as an entity of Federated’s Cincinnati-based Lazarus Department store division, the companies said. The companies added that the deal is subject to customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act. Reuter 27-APR-1987 11:10:56.19 usa F f1439reute b f BC-/IBM--SEES-INCRE 04-27 0098 IBM SEES INCREASINGLY POSITIVE 1987 NEW ORLEANS, April 27 – International Business Machines Corp expects its new products and cost-cutting measures to have an increasingly positive impact as 1987 proceeds, chairman John Akers told the annual meeting. Akers repeated his assessment of the company’s outlook when first quarter results were announced last week that “although the worldwide economic situation remains unsettled, we see some encouraging signs.” He said IBM shipments in the first quarter exceeded the 1986 level, “the first time that has happened since 1985.” Akers said that IBM will increase its emphasis on service and support of customers this year and that by the end of 1987 it will have 20 pct more sales representatives and systems engineers than two years ago. He said the company is accomplishing this by both moving as many existing employees as possible into marketing and through new hires. Akers said IBM will increase its U.S. software programming workforce, both through retraining and hiring, by nearly six thousands people over early 1985, to a yearend total of 26,000. Last year IBM announced that it would try to reduce its workforce without violating its historical no-layoff policy through early-retirement offers and retraining. Earlier this month, the company introduced a new line of personal computers and this summer it will begin shipping a new generation of minicomputers it hopes will compete successfully against offerings from Digital Equipment Corp . Akers said, “We expect our product announcements and resource-balancing measures to have an increasingly positive impact as 1987 proceeds.” Akers said that since last April the company’s worldwide workforce has been reduced by 11,000. He said some 14,000 people have been moved from one IBM location to another, headquarters staff positions were cut by 7,000 and the number of U.S. managers has been cut by 1,500. Akers said IBM is “working hard to reduce our product cycle,” which is the time between the cenception of a new product and its first shipment. “We want to make this as short as possible and we are making progress,” he said. Reuter 27-APR-1987 11:11:23.01 acq usa F f1444reute r f BC-GENCORP--UNIT-CON 04-27 0079 GENCORP UNIT CONSIDERING SALE OF STORES AKRON, Ohio, April 27 – General Tire, a subsidiary of GenCorp, said it was evaluating the sale of its company-owned stores as part of its ongoing restructuring program. General Tire said it received inquiries from tire dealers and other interest parties. The company said the stores would only be sold as a complete package, not individually. General Tire said it has 84 commerical and retail outlets across the country. Reuter 27-APR-1987 11:12:04.71 usa V RM Vf1450reute u f BC-BUDGET 04-27 0103 U.S. SENATE LEADER WANTS BUDGET PASSED THIS WEEK WASHINGTON, April 27 – Senate majority leader Robert Byrd said he wants the Senate to pass by late Friday a fiscal 1988 budget that starts reducing the flow of U.S. debt. The Democratic leader told a news conference and later the Senate itself that the Senate would debate the measure today even though technically the first procedural vote –on formally bringing up the vital measure for action–would not take place until tomorrow afternoon. The pending budget would cut some 38 billion dlrs from an anticipated deficit that would occur without any action. Senate Republican Leader Bob Dole also said he wanted quick action on the budget measure this week, before Friday afternoon when some Republicans want to leave town. Dole said a Republican substitute probably would be offered to the Democratic-written budget which would reduce the estimated 1988 deficit of about 171 billion dlrs to about 134 billion dlrs, through cuts in defence and social spending and some 18.5 billion dlrs in unspecified tax hikes in 1988. The House, also controlled by Democrats, has passed a similar budget which would have to be reconciled with a Senate plan. President Reagan’s budget was defeated in the House. Reuter 28-APR-1987 16:26:42.44 grainwheatbarley canada G C f2752reute r f BC-MANITOBA-SEEDINGS-PRO 04-28 0136 MANITOBA SEEDINGS PROGRESS WELL IN DRY WEATHER WINNIPEG, April 28 – The Manitoba Agriculture Department weekly crop report said no measurable precipitation was reported across the province in the past week, allowing small grain seedings to progress rapidly across the south, with field preparation under way in the northern growing regions. Small grains should be seeded across the Province in one to two weeks, assuming weather remains dry. Planting progress was most advanced in the southeast, with 30 pct of the spring wheat acres and 40 pct of the barley acres seeded. Cereals plantings were well under way in the south central part of the province, with seedings spotty so far in the southwest. Summer fallow acres should be in line with the latest Statistics Canada projections, the report said. Reuter 28-APR-1987 16:33:11.11 gnp canada E A RM f2774reute u f BC-ROYAL-BANK-SEES-CANAD 04-28 0116 ROYAL BANK SEES CANADIAN ECONOMY EASING MONTREAL, April 28 – Canadian gross domestic product should grow at a real rate of 3.3 pct this year before easing to a 3.0 pct growth rate next year when U.S. economic growth is expected to decline, Royal Bank of Canada, Canada’s largest bank, said in its monthly economic forecast. The forecast is from fourth quarter to fourth quarter. The bank did not give Canada’s real rate of growth for 1986. The bank said it expects the Canadian dollar to remain at the 75 U.S. ct level for the next few months as major economic fundamentals have not improved enough to return the currency to a higher level in the absence of a wider interest rate spread. Reuter 28-APR-1987 16:42:54.32 crudenat-gas uk F Y f2807reute u f BC-UK-NOT-CONSIDERING-RE 04-28 0097 UK NOT CONSIDERING RESTRICTING OIL OUTPUT HOUSTON, April 28 – Britain is not considering any restriction of its present oil production, UK Energy Minister Alick Buchanan-Smith said. Speaking to reporters at the Offshore Technology Conference, Buchanan-Smith said, “No, we’ve made that absolutely clear, we see no reason for changing (the production level).” Earlier today, Buchanan-Smith gave the go-ahead to Mobil Corp for two new North Sea developments — the Ness oil field and Beryl B subsea water injection project — totalling 96 mln dlrs (60 mln British pounds). Unlike Norway, which has restricted its production of North Sea oil by 80,000 barrels a day in an effort to stabilize world oil prices, Britain has consistently refused to intervene in the market place. Buchanan-Smith also said there may be a demand-supply gap in the 1990s for natural gas in Britain, but added that it would probably be less than had been previously estimated. Norway is a major producer of natural gas and this morning Norway’s Energy Minister Arne Oien said he was hoping Britain will take more Norwegian gas in the 1990s. Buchanan-Smith also said he expects to announce the results of the 10th licensing round of North Sea tracts next month. He said there had been 75 applications for 127 tracts by 84 companies, and added that he expects about 50 blocks will be licensed. He said the results would be in line with rounds prior to but not equal to the ninth two years ago, which was one of the most successful ever. Reuter 28-APR-1987 16:47:13.28 crudenat-gas usa F f2826reute r f BC-POGO--SEES-INCRE 04-28 0094 POGO SEES INCREASING OIL PRODUCTION HOUSTON, April 28 – Pogo Producing Co said it should gain some 700 to 800 barrels per day of additional oil production when new onshore wells start production in June. The company said work on offshore properties appears to be on schedule to complete the addition before year end of about 10 mln cubic feet of gas and 400 barrels of liquids to Pogo’s daily producing capabilities. In the first quarter, liquids production averaged 8,525 barrels daily, down from 11,233 barrels a day in the year earlier quarter. Reuter 28-APR-1987 16:47:51.50 crudenat-gas usanorway F Y f2829reute r f BC-OCCIDENTAL--HAS 04-28 0106 OCCIDENTAL HAS STAKE IN NORWAY OIL FIND LOS ANGELES, April 28 – Occidental Petroleum Corp said a group in which it is a participant discovered oil in the offshore Norwegian North Sea Block 9/2-1 exploratory well. The well tested at a maximum rate of 6,800 barrels of 39 degree API gravity oil and 918 thousand cubic feet of gas through a 3/4 inch choke. The well, the first to be drilled on the block, was drilled in about 320 feet of water to a total depth of 12,228 feet subsea. Occidental has a 10-pct stake in the 136,067-acre block operated by Statoil, the Norwegian state oil company, which holds a 50 pct interest. Reuter 28-APR-1987 16:51:58.73 grainwheat usaussr C G f2848reute u f BC-SHULTZ-SAYS-U.S.-WHEA 04-28 0091 SHULTZ SAYS U.S. WHEAT BONUS OFFER UP TO USDA WASHINGTON, April 28 – U.S. Secretary of State George Shultz said it was up to the Agriculture Department to decide whether to offer subsidized wheat to the Soviet Union. Shultz told the Newspaper Farm Editors of America that a wheat bonus offer to the Soviet Union “is something that I basically leave to the Agriculture Department to figure out.” Last year, Shultz spoke out against President Reagan’s decision to offer subsidized U.S. wheat to the Soviet Union — an offer Moscow spurned. “I’ve always been a little put off by the idea that we would arrange our food supplies so as to price them in such a way that the Soviet housewife could buy American-produced food for less than the American housewife could buy it,” Shultz said. “It also seems to me that if we are going to sell in world markets, we have to meet the price,” he added. Shultz called proposals to broaden the eligibility criteria of USDA’s export enhancement program (EEP) to include all U.S. customers “questionable.” An across-the-board EEP would mark a “considerable change” in the current program, which Shultz said is designed “to say to other countries that subsidize, particularly the European Common Market, that we’re not going to give up our markets to those subsidized sales and we’ll have a little kit bag that will meet that competition and hold our markets for our farmers.” “If you just go across-the-board and subsidize everything, that’s a different order of program and seems to me quite questionable,” he said. Reuter 28-APR-1987 17:07:17.14 nat-gas canadausa E F Y f2899reute r f BC-NORTH-AMERICAN-GAS-MA 04-28 0087 NORTH AMERICAN GAS MARKET SOUGHT BY FERC CALGARY, Alberta, April 28 – Blocking Canadian gas imports would not serve the long-term interests of the United States, said Martha Hesse, chairman of the Federal Energy Regulatory Commission, adding that the development of a freely open North American energy market should be encouraged. “I firmly believe that the long-term interest of U.S. consumers would not be served by any attempt to promote a ‘Made in America’ label for gas,” she said at an oil and gas conference. She said the commission recognizes the important role Canadian gas plays in the American market, despite grumblings among U.S. domestic producers of the competition from north of the border. Recent figures show Canada shipped 2.48 billion Canadian dlrs worth of gas to the U.S. in 1986, down sharply from the 3.91 billion dlr total in 1985. “But we do seriously recognize the importance in the years to come of the supplies of Canadian gas to U.S. markets,” she said. “And even in the short term, competition is generally a good thing,” she added. She said the commission is concentrating on improving the access to U.S. pipelines, something that would be of great benefit to Canadian producers. Hesse said transportation of Canadian gas is already improving, gas imports rising more than 21 pct in the first two months of the year. But Hesse declined to comment in detail on the controversial December order, known as the “as billed issue”, because it is the subject of a new hearing. The order, which is being fought by Canada, involves barring U.S. pipeline companies and consumers from paying certain Canadian shipping expenses. Hesse said the order was never intended “as an attempt to extend the arm of U.S. regulations across the border.” However, a senior Canadian government energy official warned delegates the ruling could severely weaken Canadian gas producers. “Besides the extra territorial effect, there is the potential that Canadian consumers and producers may end up subsidizing the cost of transportation services originally incurred on behalf of U.S. customers,” said Robert Skinner, an assistant deputy minister in Canada’s energy department. Reuter 28-APR-1987 17:18:43.51 carcasslivestockorange japanusa lyngyeutter C L T f2940reute d f BC-/U.S.-BEEF,-CITRUS-TA 04-28 0130 U.S. BEEF, CITRUS TALKS WITH JAPAN SEEN TOUGH By Greg McCune, Reuters TOKYO, April 28 – The Reagan administration is expected to face tough resistance from Japan and from some entrenched U.S. interests, if it hopes to succeed in forcing Japan to end beef and citrus import controls by April, 1988, U.S. and Japanese officials said. Agriculture Secretary Richard Lyng and Trade Representative Clayton Yeutter took a hardline stance on beef and citrus in talks here last week, insisting that the quotas be abandoned by April, 1988. But that stance will be difficult to maintain because Japan will resist the pressure fiercely and because some U.S. suppliers of those commodities have an interest in maintaining the quotas, U.S. and Japanese officials told Reuters. Twice in the past, the United States has negotiated with Japan on beef and citrus import quotas — during the Tokyo round of multilateral trade negotiations in 1978, and in bilateral talks in 1984. Each time the U.S. demanded an end to the quotas at the outset but ultimately accepted substantial increases instead. The current agreement calls for an increase in high quality beef imports to 58,400 tonnes in fiscal 1987, oranges to 126,000 tonnes and orange juice to 8,500 tonnes. Lyng has said repeatedly that this time the United States will not settle for simple increases in the quotas. Japan has been given plenty of time to reform its agricultural support system and the quotas must be scrapped, Lyng said. Japanese officials want to begin informal talks on beef and citrus in August or September in Hawaii, sources said. If the U.S. intends to press its tough stance, and Japan, as expected rejects the demands, the issue may then be put to the General Agreement on Tariffs and Trade for settlement, which would mean prolonging the friction beyond the April, 1988 deadline set by the U.S., officials said. In interviews here, Japanese officials insist that on beef they will not liberalize imports, regardless of the U.S. pressure, because the Japanese beef industry is not competitive and would be damaged by freer trade. Most Japanese beef production still tends to be on small farms which Japanese officials said must be protected from cheap imports by use of the quota system. Furthermore, while the U.S. National Cattlemen’s Association is strongly supporting the tough administration position, some U.S. meat exporters and packers are ambivalent. This is because to some U.S. exporters and packers beef exports to Japan under the quota system are a steady, reliable business managed by a quasi-government Japan Livestock Industry Promotion Corporation. Under quotas the U.S. share of Japan’s beef market has expanded at the expense of Australia. In the absence of quotas, some U.S. suppliers are concerned the U.S. share might decline and exporting to Japan would become a riskier business, meat industry sources said. Major U.S meat industry leaders will meet in Washington next week, including cattlemen, processors and exporters, in an effort to reach an industry-wide consensus toward Japan. The citrus industry also appears split on the quota issue. California’s Sunkist, the largest U.S. supplier of oranges to Japan, has expressed reservations about eliminating quotas. A representative of Sunkist said the cooperative is concerned that in the absence of quotas, lower quality oranges from Israel and South Africa might be competitive in Japan. Ironically, some Japanese officials hinted that fresh oranges may be a product on which imports could be freed with a minimum of impact on Japanese mandarin orange production. This is because U.S. oranges do not directly compete with smaller Japanese mandarins, officials said. But Japan wants to maintain quotas on orange juice because it fears imported juice tastes better and would displace Japanese mandarin orange juice, they said. One scenario mentioned by both U.S. and Japanese officials is that Tokyo may try to blunt the tough administration stance by offering to scrap the quota on fresh oranges in return for U.S. acceptance of increases in beef and juice quotas. Lyng has acknowledged that liberalization of beef and citrus imports is a difficult objective, but he insisted during the week-long tour here that it is a high priority on the U.S./Japan agriculture agenda– more important than the rice issue which received most of the attention. Asked about the ambivalence of some in U.S. agribusiness, Lyng noted some interests on both the U.S. and Japanese side have benefited from quotas but this will not stop the administration from pressing for liberalization. And Lyng said the administration believes it can marshall more support for eliminating the quotas now than ever before, because of concern about Japan’s rising trade surplus. “We’re coming at this one (beef and citrus negotiation) with a much stronger view coming out of Washington. The times have changed. The trade balance is much worse,” Lyng said. Reuter 28-APR-1987 17:20:01.49 crude usa opec F Y RM f2948reute u f BC-OILPATCH-EXECUTIVES-S 04-28 0095 DECLINE IN U.S. DOLLAR MAY BOOST OPEC OIL PRICE By JULIE VORMAN, Reuters HOUSTON, April 28 – The sliding value of the U.S. dollar may soon force the Organization of Petroleum Exporting Countries to raise its oil benchmark price, setting the stage for prices as high as 22 dlrs a barrel by yearend, top executives with U.S. oil companies said. The current benchmark price of 18 dlrs a barrel was established by the Organization of Petroleum Exporting Countries (OPEC) at its December meeting when the cartel set a 15.8 mln barrel per day production ceiling. But the continuing weakness of the U.S. dollar, the currency used by OPEC for its oil sales, is making the 18 dlr price difficult to sustain, said Fred Hartley, chairman of Unocal Corp . The U.S. dollar has fallen in value by about 10 pct since December and has fallen by a total of about 40 pct during the past two years. Hartley told Reuters he expected significantly higher oil prices this winter and would not rule out the potential for 25 dlrs a barrel by the spring of 1988. “I think June will be the critical month to see what they do,” said Hartley, who was in Houston to attend the World Petroleum Congress. OPEC has scheduled a regular meeting in June which some experts believe is likely to revive suggestions that oil should be priced according to a basket of world currencies instead of the U.S. dollar. E.H. Clark, chairman of , said the Saudi kingdom’s need to generate revenues — rather than greater world demand — would drive any price increases. “The Saudis have made committments and have a balance of trade based on receiving 18 dlrs a barrel for this oil. But the U.S. dollar won’t buy as much as it did five or six months ago,” Clark said in an interview. “I’m betting on the Saudi king’s need to sustain revenues.” Clark predicted that world oil prices would top 22 dlrs a barrel by January one. However, the authoritative Middle East Economic Survey reported yesterday that Saudi Arabia would not seek to increase OPEC oil prices unless oil demand showed strong growth. Saudi sources told the newsletter that the policy was based on the longterm need to restore the competitive position of OPEC oil against other energy sources. Many oil industry experts are forecasting a modest increase in world oil demand averaging one pct annually during the next few years. Michel Moreau, a director of the , said he believed the worldwide oil industry had reached a consensus that prices of at least 20 dlrs a barrel were necessary to cover exploration costs, royalties and taxes on new production. The 20 dlr level will be reached this year only if the cash-strapped nations of Nigeria, Egypt and Gabon refrain from discounting oil prices or increasing production levels, Moreau said. “I think if more than two (OPEC nations) defect, the production agreement will fall apart,” he said. “But this threat is the Saudis’ big stick to keep producers in line. Nobody wants a repeat of the collapse that occurred in 1986.” Lawrence Rawl, chairman of Exxon Corp , told Reuters he expected prices would remain at 18 dlrs through the end of 1987, adding that 20 dlrs a barrel was a possibility. Other major companies are taking a more cautious view of prices, fearing that some OPEC members may yet upset the cartel’s production agreement. “This is a year of testing,” said Alfred Munk, manager of foreign affairs at Amoco Corp. (AN). “If they fail, there may be a price decline to about 14 dlrs a barrel.” French-owned Total CFP’s vice president Pierre Vaillaud said, “Demand is not going up very quickly, at best maybe one percent a year. You can’t change the price with just one pct,” Vaillaud said. Reuter 28-APR-1987 17:23:28.70 usa nyse F f2959reute u f BC-NYSE-SAYS-ADVEST- DECLINES COMMENT NEW YORK, APril 28 – Advest Group Inc said it is against company policy to comment on unusual market activity or rumors in response to inquiries on the unusual activity of its stock, according to the New York Stock Exchange. The stock closed up 1-1/2 to 15. The exchange said it had contacted the company and requested a public statement indicating whether there are any corporate developments which may explain the activity. Reuter 28-APR-1987 17:26:50.23 nat-gas usacanada F E Y f2968reute r f BC-MORGAN-STANLEY-GROUP 04-28 0094 MORGAN STANLEY GROUP UNIT IN GAS DEAL HOUSTON, April 28 – Morgan Stanley Group Inc unit Natural Gas Clearinghouse Inc said it has reached agreement with (Pan-Alberta Gas Ltd) of Canada to import substantial quantities of natural gas for its U.S. customers. The company said potentially 500 mln cubic feet a day of Canadian natural gas could be imported under the agreement. It said the natural gas would be competitively priced but did not refer to specific prices. Pan-Alberta is owned by Nova and Alberta Energy Co, the company added. Reuter 28-APR-1987 17:35:02.42 usa amex F f2991reute d f BC-AMERICUS-TRUST/KODAK 04-28 0101 AMERICUS TRUST/KODAK BEGINS TRADING NEW YORK, April 28 – The American Stock Exchange said an investment trust which issues units in exchange for Eastman Kodak Co shares began trading today on a “when issued” basis. AMEX said the trust, known as the Americus Trust for Kodak shares, trades under the ticker symbol KDUWI and will accept a maximum of 7,500,000 shares. The trust included two categories which traded separately from the units, known as prime and score components, which respectively allowed investors to receive current income or capital appreciation potential, it said. Reuter 28-APR-1987 17:58:50.31 dlrmoney-fx usa james-baker V RM f3041reute u f BC-/U.S.-MAY-HAVE-TO-ACT 04-28 0109 U.S. MAY HAVE TO ACT TO SUPPORT DOLLAR BY PETER TORDAY, REUTERS WASHINGTON, April 29 – The prospect of renewed assaults on the dollar might force the United States eventually to unveil distasteful measures to bolster support for its currency, monetary analysts and economists said. Treasury Secretary James Baker has acknowledged that the Reagan administration discussed the possibility of issuing yen-denominated U.S. government bonds to support the dollar. But he has also dismissed speculation that he was ready to take such an unusual step. Nonetheless, monetary sources say the issue has been seriously discussed by the administration. “It is unlikely that we would undertake to do that now,” Baker said last week. “In our view there might well be some who would view (issuing U.S. yen bonds) as, in fact, a lack of confidence by the U.S. in its own currency. And therefore we don’t think it’s an appropriate thing to do.” But if the Reagan administration did announce measures, they could be a part of an internationally-coordinated effort to end the instability in financial markets with genuine action to reduce massive economic imbalances, monetary analysts believe. And, like a currency defense package unveiled by the Carter administration, issuing yen bonds could be accompanied by a rise in the discount rate, now 5.5 pct. The Federal Reserve has resisted pressure to raise this key rate so far, chiefly, some Fed officials say, because it could hurt economic growth. Another concern is the fragile international debt situation. Analysts who expect a currency support package are divided over its possible timing. Some even believe an announcement could come this week during a visit to Washington by Japanese Prime Minister Yasuhiro Nakasone. “It would give some real focus to the visit, and it might steady the dollar and prevent it from going down,” said Charles Taylor, an analyst with Prudential-Bache Securities. But monetary sources said they thought it unlikely that the Reagan administration would resort to measures which would bring to mind the troubles of President Carter. Until very recently, the current administration has urged a lower dollar to help redress its huge trade deficit while Carter faced a weak dollar as confidence in his economic policies collapsed. But today, Washington’s policies are increasingly in question. The Carter plan was unleashed on Nov. 1, 1978. And it was a resounding success. “This package really gave credibility to the administration to get the dollar up,” said Robert Hormats, vice-president of Goldman Sachs Inc and a former senior U.S. economic in the Carter and Reagan Administrations. The dollar then stood at just under 1.87 marks and around 188 yen. Today it stands around 1.79 marks and 139 yen. “The problem is now that the administration in rhetoric is evidencing concern about the dollar but in practice is really doing very little,” Hormats said of statements to support the dollar by U.S. officials. Several currency traders and foreign central bank officials think these statements still fall short of unequivocally saying the dollar has declined far enough. Carter issued 6.4 billion dlrs of mark and swiss franc bonds aimed essentially at buttressing pyschological support for the dollar but also at attracting foreign investors, who had lost confidence in the dollar, to U.S. government notes. The package was supported by a one pct rise in the discount rate, to 9.5 pct, drawings on U.S. monetary reserves at the International Monetary Fund and sales of U.S.-held SDRS to other IMF members. It was also supported by increased Fed currency swap lines with other central banks and stepped up official U.S. gold sales. Stephen Axilrod, a former Fed official who is now vice-chairman of Nikko Securities, said, “I think it’s very unlikely they would do that now.” He argued that it was politically difficult to take action to support the dollar while Japan and West Germany have still to fulfill pledges to stimulate their economies. But most analysts believe a currency support package would only work if genuine economic measures to redress world trade imbalances are undertaken by the leading industrial powers. It could coincide with the June Venice summit of leaders of the seven major industrial democracies — the United States, Japan, West Germany, Britain, France, Italy and Canada. Hormats said he believed the currency has to decline slightly further for a package to have impact. He said the seven nations’ Paris Accord to stabilize currencies was forged too soon to fundamentally change market sentiment. “I think we’re nearing a point when they would feel (politically) comfortable doing this,” Hormats said. Many analysts think the administration’s reluctance to act firmly on the dollar has been due to its desire to keep up the pressure on its allies to bolster their economies and for fear of fanning protectionist sentiment in Congress. But Hormats said “there will be a point at which the government of the United States shows it does give a damn for the dollar.” Reuter 28-APR-1987 18:10:47.47 ship usa F f3061reute r f BC-GENERAL-DYNAMICS- 04-28 0112 GENERAL DYNAMICS NAMED AS DEFENDANT NEW YORK, April 28 – General Dynamics Corp was named as a defendant in a multimillion dlr fraud suit brought by the U.S. government in 1985 stemming from government subsidized shipbuilding contracts, according to court documents. The government originally filed the suit against two of Dynamic’s officers and two officers of its subcontractor, Frigitemp Corp. The suit, filed in federal court in New York, seeks to reclaim funds from kickbacks, overpayments and subsidies that were allegedly overexpended on two shipbuilding projects. The government paid 70 mln dlrs in subsidies between 1978 and 1982, court papers said. Reuter 28-APR-1987 18:35:40.10 crude usa F Y f3084reute d f BC-GOVERNMENTS-SEEN-MORE 04-28 0105 GOVERNMENTS SEEN MORE INVOLVED IN OIL DRILLING HOUSTON, April 28 – The offshore oil drilling industry will attract increasing numbers of government connected firms in the 1990s, according to Ronald Tappmeyer, Vice Chairman of Reading and Bates Drilling Co. Tappmeyer told the Offshore Technology Conference that contract drilling was reaching the same kind of situation that oil producing companies reached when their oilfields were nationalized in nations as Venezuela, Iran and Saudi Arabia. He said local connections to the nation whose waters are being drilled was an increasingly important factor in the market. “We have seen contractors put at competitive disadvantages in nations in which they had worked successfully for years essentially moved aside to make room for locally-owned firms or a locally-built rig,” he said. Tappmeyer, who is president of the International Association of Drilling Contractors, said how far the trend would spread depends on the growth of trade protectionism. He added that international contractors will increasingly find their role restricted to regions that require special expertise and experience, such as wildcat areas and severe environments such as in the Arctic and extremely deep waters. Tappmeyer also said he expects producing companies to provide the main financing for offshore drilling in the coming decade as banks will be unwilling to repeat overexposing themselves and drilling contractors will have difficulty providing financing out of cash flow. At the same time, he said he saw the financing as indirect as he does not see producers getting back in the rig-owning business. He also said projectfinancing will have to be backed up by work commitments to guarantee the payoff of construction costs. For the time being, he said there was a superabundance of rigs. But he said there will be a need for new, technologically advanced rigs within a few years. He said the floating-drilling rigs were most likely to benefit from new developments in technology, adding that by 2,000 there should not be an ocean left that is too deep, too cold, too stormy or too remote to be explored. Reuter 28-APR-1987 18:47:31.82 grainoilseed andriessen ec C G T f3100reute u f PM-COMMUNITY-AGRICULTURE 04-28 0109 EC OFFICIALS PLAN NEW EFFORT ON FARM PRICE TALKS By Gerrard Raven, Reuters LUXEMBOURG, April 29 – European Community (EC) leaders hope to make a new attempt to inject fresh urgency into talks on reforming the bloc’s controversial farm policy when EC agriculture ministers meet for a third day of discussions here this morning. Community officials said farm commissioner Frans Andriessen met Belgian minister Paul de Keersmaeker late last night to plan a new initiative. Both Andriessen and de Keersmaeker, who currently chairs EC farm ministers’ meetings, were said to be disappointed by the lack of progress in the talks so far this week. The bloc’s executive Commission has proposed a tough package involving effective cuts of upwards of 10 pct in farmers’ returns for many crops this year. Ministers were due to have adopted a package by April 1 but are only this week getting down to serious negotiations. Yesterday, they discussed plans to cut cereals prices by 2.5 pct, and reduce farmers’ rights to sell surpluses to EC stores, to cut prices for fruit and vegetables by larger margins, and to impose a tax on EC-produced and imported oilseeds, a proposal which would be likely to sour EC trade relations with the United States. Diplomatic sources said ministers, all of whom are opposed to at least one of these propositions, maintained entrenched positions yesterday, making the task of de Keersmaeker in steering his colleagues towards a compromise a daunting one. They said he could also be treading a minefield if he sought to breach the divide between his fellow ministers over plans to change the system by which EC farm prices, expressed in a notional common currency, are translated into the currencies of member states. West German minister Ignaz Kiechle indicated yesterday he would veto the adoption of Commission proposals in this area, saying they would unfairly affect farmers in strong currency nations. The Belgian sources said de Keersmaeker may today present a paper to his colleagues which, while not having the status of a compromise proposal, would attempt to narrow their options. But diplomats said the philosophical gap between ministers like Kiechle, with his commitment to maintaining traditional rural patterns, and others who see runaway farm spending as unacceptable economically, is likely to prove extremely difficult to bridge. They agreed with EC farmers’ union association president Hans Kjeldsen who said yesterday that an agreement in June appeared to be the best that could be hoped for. Reuter 28-APR-1987 18:54:47.76 money-fxdlrstg usa RM C f3115reute u f BC-fin-futures-outlook 04-28 0102 NERVOUS CONSOLIDATION SEEN IN CURRENCY FUTURES By Brad Schade, Reuters CHICAGO, April 28 – Currency futures at the International Monetary Market (IMM) are likely to consolidate near current levels in nervous trading conditions over the next few days, although underlying sentiment remains positive, currency analysts said. “Currencies are likely to muddle around these levels,” said Shearson Lehman Brothers analyst Anne Parker Mills. Traders are unwilling to establish either long or short positions in futures because of uncertainty over upcoming trade talks and U.S. trade legislation, they said. Japanese prime minister Yasuhiro Nakasone and President Reagan will meet Thursday and Friday to discuss trade tensions between their two countries, while at the same time the Democratic-led U.S. House of Representatives will be voting on a controversial trade bill. “Unless something really surprising comes out of the Nakasone/Reagan talks, I don’t see the dollar getting above 142 (yen) and 1.83 (marks),” Mills said. The equivalent in futures of those interbank levels are about 0.007050 to 0.007025 in the June yen contract and about 0.5500 in June marks, she said. June yen closed at 0.007191 on Tuesday while June marks finished the day at 0.5602. Mills said, however, that “the chances of them (Reagan and Nakasone) coming up with something new are limited.” One possibility might be a Japanese discount rate cut, but “they probably won’t do that unless we raise our discount rate.” Recent firmness in the federal funds rate and the Federal Reserve’s slowness in adding reserves to the banking system has heightened sentiment that the money-policy making body has already tightened credit and a discount rate hike is possible, analysts said. Recent weakness in currencies and strength in the dollar has been more the result of nervous shortcovering ahead of the meeting rather than reaction to the White House statement Monday supporting a stable dollar, said Harris bank currency analyst Earl Johnson. Traders “are worried about the outcome of the talks between Reagan and Nakasone,” and as the talks are late in the week, the market may not get a chance to react to any developments until Monday, Johnson said. Until then, Johnson expects the dollar to remain in a broad range between 1.77 and 1.85 marks and 137 to 140.50 yen. Chicago Corp analyst John Bilson, however, expects a rally in the European currencies over the near-term, while the yen, at this point is overbought. “The Japanese are moving away from the U.S. market,” and investment funds formerly directed to the U.S. are likely to flow into Europe, Bilson said. The chief beneficiary of such a flow of funds will be sterling, Bilson said. “Sterling rates are about four pct above Japanese rates, despite the half point rate cut,” Bilson said. Major U.K. banks lowered their base lending rates today to 9.5 pct. In addition to a favorable interest rate spread which should attract funds, Bilson said the firm oil market and the strong political situation of Prime Minister Thatcher also make British investments attractive. Passage of the trade bill, which includes an amendment by Missouri Democrat Richard Gephardt that would force a 10 pct annual cut in imports from countries with an excessive trade surplus with the U.S. if they fail to remove unfair trade barriers to the U.S. after six months of negatiations, would likely pressure the yen, Bilson said. Bilson, however, said the legislation is unlikely to pass, but that Nakasone is likely to bring a promise to open Japanese markets to U.S. goods and back it up with government contracts with U.S. manufacturers. Reuter 28-APR-1987 19:44:20.97 usa oecd A RM f3153reute u f BC-GLOBAL-ECONOMIC-ILLS 04-28 0079 GLOBAL ECONOMIC ILLS MAY TAKE YEARS TO RESOLVE By Peter Torday, Reuters WASHINGTON, April 28 – A study by the Organization for Economic Cooperation and Development says it may take years to resolve the huge economic imbalances now plaguing the world economy, U.S. and western officials said. The paper was expected to stimulate policy debate among senior officials of leading industrial nations preparing for next month’s annual meeting of finance ministers in Paris. The May 11-13 ministerial meeting of the 24-nation OECD, a forum for coordinating economic policies, has taken on added significance in view of the difficulties dogging the attempts of major nations to achieve joint goals. Despite two meetings of the seven leading industrial powers — the United States, Japan, West Germany, France, Britain, Italy and Canada — pledges to change policy have still to be turned into action. As a result, financial markets have been unusually unstable and have focussed their attention on every international meeting for clues that change is in the air. The study concludes that there needs to be much greater fiscal action by the United States, West Germany and Japan to reduce their massive trade imbalances, a U.S. official said. “We looked at what we could do to get from here to there. We’ve got to continue cutting the deficit, and there needs to be domestic expansion (in West Germany and Japan),” the official said, noting that significant actions are called for. Officials noted the study strongly underscores the need for action by West Germany and Japan. Seperately, western officials said they understood that U.S. overtures to Japan and West Germany to cut their short-term interest rates have been rebuffed for now. Such rate reductions would have helped stabilize the steep decline of the dollar, by widening the difference between bond yields in the United States, on the one hand, and in Japan and West Germany on the other. One official said that while the policy actions called for were similar to those urged by the seven, the study shows “it’s going to take several years to resolve (the trade imbalances).” The OECD has set three pct as the necessary target for average annual growth in the industrial world if trade imbalances are to be corrected and the Third World debt crisis kept under control. The study strongly implies these targets will not be met without major action by the three leading nations, officials said. Equally, it suggests that without major fiscal expansion by Bonn and Tokyo, and a corresponding deep reduction in the U.S. budget deficit, the current trend of an upturn in U.S. interest rates and a weakening dollar will go uncorrected. U.S. Treasury Secretary James Baker says the dollar’s deep decline alone will shave only 15 billion dlrs off the roughly 140 billion dlrs U.S. deficit in goods and services this year. But the study group also found that progress has been made and the seven main nations are moving in the right direction. In Paris this February, the seven agreed that fiscal actions by the three major powers would help them stabilize currencies around levels ruling then. The Reagan administration, this week facing the prospect of a tough trade bill aimed at curbing foreign trade surpluses, also promised to fight protectionism. The officials said Washington must move ahead with budget deficit cuts of around 36 billion dlrs, a figure set as a goal by the Democratic leadership of the House of Representatives. They also called for significant increases in the budget deficits of Japan and West Germany. Since the study group met, Japan has announced a roughly 35 billion dlr supplementary budget which was warmly welcomed by Washington. Nonetheless there is caution over both the timing and the content of the proposed Japanese budget. Financial markets, unconvinced by yet another Japanese promise of action, have pushed the yen sharply higher against the dollar. While no West German fiscal action is promised before January 1988, U.S. officials would welcome such a move. “We’d love them to accelerate their tax cuts,” one official said. West German economic growth fell steeply in the first quarter this year, but the official said Bonn has reassured U.S. officials they expect growth to pick up again. If faster German growth fails to emerge, Bonn could find itself under pressure to speed up tax cuts planned for early 1988 when leaders of the seven meet in Venice this June. reuter 28-APR-1987 19:45:10.95 crudenat-gas usaussr Y f3154reute u f BC-SOVIET-SAYS-DATA-SHAR 04-28 0086 SOVIET SAYS DATA SHARING WILL HELP FIND OIL HOUSTON, April 28 – A Soviet geologist said scientists need to coordinate data about onshore and offshore oil deposits to help identify global formations that would indicate other potential discoveries of oil and gas reserves. Vladmir Vladiminovich Semenovich, the head of petroleum geology at Moscow State University, told delegates at the World Petroleum Congress that exploration efficiency could also be improved through new and more sophisticated technology. “We should emphasize that when having the data about petroleum distribution onshore and offshore, it is possible to clarify the idea of global regularities in oil and gas prospects,” Semenovich said. “However, much work should be done to coordinate data concerning the structure and oil and gas prospects in adjoining onshore and offshore basins.” Sharing the information could help geologists better predict regional trends and underground formations that indicate the presence of oil or gas, he said. Semenovich also said that existing estimates of the potential oil and natural gas resources of the world may need to be revised upward as oil companies continue to examine unexplored regions. The world, which has already produced 476 billion barrels of oil and gas, has a current total of about 733 billion barrels in proved reserves. Undiscovered resources are estimated at about 1.4 trillion barrels, or about half of the total ultimate reserves, Semenovich said. “There are a lot of unstudied regions all over the world and, as far as the already known basins, one continues to find additional reserves,” he said, noting that Antarctica has been virtually ignored. “The existing estimate of potential resources of the world may need to be enlarged.” To find deeper and more expensive reserves, scientists will need to use 3-D mapping of underground formations and laser spectrometry to measure bitumen in soils and plants among other techniques, he said. He estimated that continental slopes contain about 10 to 13 pct of all offshore reserves. Semenovich also said that virtually all of the total oil and gas resources now estimated to exist in the world would be discovered and placed in production during the next 50 years. After his speech, Semenovich told Reuters that Soviet oil production was increasing. “The difficulties of 1985 have been overcome and we’re now back to normal production,” he said. The Soviet Union, the world’s largest producer of oil, had experienced drilling and technical problems that cut total liquids production from 12.45 mln barrels a day in 1984 to 12.1 mln barrels a day in 1985. Last year, the Soviets produced an estimated 12.3 mln barrels. When asked about the recent reopening and testing of a coal gasification project in Soviet Central Asia, Semenovich said the project was important because of the lack of oil reserves in the region. Semenovich declined to identify at what level of world oil prices the coal gasification process would become economic again. “It’s too expensive for the time being,” Semenovich said. “Theoretical development is underway and tests are being run. For the moment, coal gasification is a very small part of the energy industry,” he said. Reuter 28-APR-1987 22:59:31.46 hkdlrmoney-fx japanhong-kong adb-asia RM f3217reute u f BC-HONG-KONG-DEFENDS-CUR 04-28 0113 HONG KONG DEFENDS CURRENCY LINK WITH U.S. DOLLAR OSAKA, Japan, April 29 – Hong Kong has not taken unfair advantage of its currency’s link with the U.S. Dollar, Hong Kong monetary affairs secretary David Nendick told the annual meeting of the Asian Development Bank here. He said: “We have taken the rough with the smooth, having to accept a downward adjustment of our economy in 1985 following a period when the U.S. Dollar was clearly overvalued in world terms, but benefiting as that currency subsequently declined.” He said that since the establishment of the link in 1983, Hong Kong’s trade had been broadly in balance. This year a modest deficit was expected. “Under the link, Hong Kong’s entirely free and open economy continues to adjust quickly to any external imbalances, but the burden of adjustment now falls almost entirely on our domestic interest rates, money supply and price levels,” Nendick said. “The relative volatility in these domestic variables is the price we pay for the stability of our currency against the U.S. Dollar,” he said. REUTER 29-APR-1987 00:05:46.87 japan adb-asia RM f0002reute u f BC-ADB-MEETING-ENDS,-MAR 04-29 0103 ADB MEETING ENDS, MARKED BY CRITICISM By Rich Miller, Reuters OSAKA, Japan, April 29 – The Asian Development Bank (ADB) today wound up a three-day meeting which was marked by criticism of the ADB from both rich and poor member nations. In speech after speech, the 20-year-old ADB was charged either with not doing enough to help countries in the region, or with funding projects which were not worthwhile. The attacks often, but not always, broke down along developed and developing country lines. The former, which provide the ADB with money, generally emphasized the need for quality projects. The ADB was not even spared criticism from its host country and largest shareholder, Japan. “I am not 100 pct satisfied with the performance of the ADB,” Japanese finance ministry deputy director-general Fumiya Iwasaki told Reuters. He said the Bank had only approved five pct more new loans in 1986 than in 1985. He hoped for a return to the more rapid growth rates of earlier years. “The Asian economy is now changing. The ADB should adapt itself to those changes,” he said. But supporters of the ADB said it already was changing, and Iwasaki made it clear Japan welcomed the steps being taken by the ADB’s president Masao Fujioka. “So far, we have confidence in Mr Fujioka’s leadership,” Iwasaki said. To spur demand for loans, the ADB has restructured its country and agricultural departments to enable it to identify the needs of developing member countries more quickly. But some delegates said the ADB was putting too much emphasis on the need to give out more money, and not enough on checking the quality of the projects involved. “The success of the Bank should not be measured by the volume of its lending but by its contribution to the development process,” chief U.S. Delegate Charles H. Dallara told the meeting. He said: “Project quality is an area which has attracted attention recently and on which the United States has expressed strong views. Although over the years the majority of ADB loans have been sound, we have had problems with some of the projects brought before the board of directors lately.” Australia voiced similar concerns. Australian delegate C. J. Hurford said: “Bad projects benefit neither the Bank nor its borrowers. They damage the Bank’s reputation and ultimately lessen support from donor countries and capital markets.” There were also criticisms of proposals from developing countries that the ADB make more of its loans dependent on economic reforms in Third World nations. “We are concerned with the Bank’s increasing preoccupation with dialogue,” said India’s delegate, S. Venkitaramanan. “We have expressed our unhappiness with the insistence of multi-lateral agencies on global prescriptions,” he said. REUTER 29-APR-1987 01:20:46.89 gnp sri-lanka RM f0048reute u f BC-SRI-LANKAN-MINISTER-S 04-29 0107 SRI LANKAN MINISTER SEES SLOWEST GROWTH IN DECADE By Chaitanya Kalbag, Reuters OSAKA, Japan, April 29 – Civil strife in Sri Lanka will make the economy’s growth rate in 1987 its slowest in a decade, Sri Lankan finance minister Ronnie de Mel said here. He told Reuters in an interview that he expected gross domestic product to expand by only four pct in 1987. He said it averaged five pct over the past three years. For the first two years after the present troubles began in 1983, production of key commodities like tea, rubber, coconuts and rice kept up, he said. Tamils on the island are fighting for a seperate state. De Mel said: “Private sector production in fact grew by 25 pct in 1984 and 20 pct in 1985. But last year things took a turn for the worse.” He said prices of tea, the main export, fell to half their 1984 levels. World prices of rubber and copra also fell. “There was also a decline in income from tourism and remittances from Sri Lankans working in the Middle East.” He said any savings from the worldwide drop in crude oil prices were wiped out by the cut in commodity earnings. “To add to all this we have had, between January and March this year, the worst drought I have seen in my life,” he said. De Mel said the drought would seriously affect agricultural production. He said because of the fighting in the country, defence expenditure was now about 20 pct of the national 1987 budget of 70 billion rupees. Sri Lanka planned to borrow about 600 mln dlrs in 1987 from the World Bank and the Sri Lanka Aid Consortium which comprises members of the Organisation for Economic Cooperation and Development (OECD), he said. “We also plan to ask the International Monetary Fund for another 200 mln dlrs through a structural adjustment facility and a compensatory financing facility to balance our export revenue cuts,” de Mel said. He said despite the unrest, Sri Lanka had succeeded in keeping its total foreign debt to three billion dlrs by avoiding borrowing from commercial banks. “Commercial bank debt accounts for only 15 pct of our total foreign debt,” he said. He said the Mahaweli hydro-electric project was nearing completion. It was likely to cut dependence on oil imports. “The project will more than treble our hydro-electric power from 300 megawatts to nearly 1,000 megawatts,” de Mel said. He said 20 new townships would rise around the project, which is in the north-central part of the island. It was expected to irrigate 1.2 mln acres of land and indirectly provide employment for 500,000 landless families. De Mel said Tamil guerrillas were waging a war of attrition in the island’s north and east. REUTER 29-APR-1987 04:19:41.23 japanchinavietnam fujioka adb-asia RM f0176reute u f BC-ADB-CHIEF-SAYS-CHINA 04-29 0107 ADB CHIEF SAYS CHINA LIKELY TO BORROW 300 MLN DLRS By Chaitanya Kalbag, Reuters OSAKA, Japan, April 29 – China is likely to borrow up to 300 mln dlrs this year from the Asian Development Bank (ADB), president Masao Fujioka said. The loans would be China’s first from the ADB. “I think there will be at least one loan to China this year, and possibly a second,” Fujioka told a news conference at the end of the ADB’s annual meeting here. Asked how large the loans were likely to be, Fujioka said he thought they would range from 100 mln to 150 mln dlrs each. China is the ADB’s newest member, joining in March 1986. China is the third-largest shareholder after Japan and the U.S.. It was elected to the ADB’s 12-member board yesterday. Fujioka announced that the ADB’s 1989 meeting would be held in Peking. The 1988 meeting will be held in Manila. Fujioka said the ADB would consider delegates’ suggestions that it set up a task force of experts to define its future role. The ADB’s performance was criticised by both its rich and poor members at the three-day meeting just finished. External experts had carried out a study on ADB policy for the 1980s, Fujioka said. He said a similar study for the 1990s would be useful, but the ADB had no fixed ideas yet. He said the ADB had already responded to members like the U.S., Which urged it to improve analysis of funded projects. “We had already decided that the ADB should strengthen its research capability,” Fujioka said. He said ADB lending had declined, but “the amount is not the only thing that counts. We also want to be a catalyst by taking innovative measures like the promotion of the private sector.” Fujioka also talked of the struggle between the U.S. And Japan over their voting power in the ADB. Total Japanese contributions to the ADB are higher than those of the U.S., So Japanese delegates asked for their voting power to reflect this. The U.S. Opposed the move. “It is advisable and wise, for institutions like the ADB to be viable, that there be a reasonable relationship between financial contributions and voting power,” Fujioka said. But he indicated the problem remained unresolved. Asked if the ADB would respond to a plea by Vietnam to resume lending which was cut off in 1974, Fujioka re-iterated his view that conditions there were not conducive to banking. Fujioka declined to elaborate on Vietnam, but said there had been no pressure from the U.S. Or any other country on the issue. He also spoke about demands by the bank’s financiers that it take a more active role in prodding borrowers into making economic policy changes. “The initiative must come from the borrowing country. We don’t accept that we impose policy conditions. There must be a two-way consultation,” he said. REUTER 29-APR-1987 04:39:06.29 reservestrade taiwan RM f0201reute u f BC-TAIWAN-RESERVES-RISE 04-29 0098 TAIWAN RESERVES RISE ON TRADE SURPLUS, SPECULATION By Chen Chien-kuo, Reuters TAIPEI, April 29 – Taiwan’s foreign exchange reserves have risen to a new high of 56 billion U.S. Dlrs, and officials attribute the increase to a surging trade surplus and the influx of speculative funds. The reserves, up from 54 billion dlrs on April 19, compare with 27.3 billion a year ago, the Central Bank said. Vice economic minister Wang Chien-shien told Reuters: “The rising reserves will certainly intensify our trade friction with the U.S.” A central bank official, who declined to be named, said Taiwan’s trade surplus is expected to exceed 5.5 billion U.S. Dlrs in the first four months of 1987, against 4.25 billion a year ago. The influx of speculative funds, mainly from Hong Kong, Japan and the U.S., Also played a major role behind the rise of the reserves, he said, but declined to give figures. Banking sources said almost 10 billion U.S. Dlrs had entered Taiwan since early 1986. About three billion of the funds were remitted through different channels, including the black market, since the start of this year, they said. Wang Chao-ming, vice chairman of the government’s Council for Economic Planning and Development, said he expects the reserves to rise in the next few months because of the continuing high level of Taiwan’s exports and the steady appreciation of the local dollar against the U.S. Currency. “The latest government moves to open (the domestic) market, cut import tariffs and lift foreign exchange controls have achieved little success,” he said. Vice economic minister Li Mo said tariffs were cut on some 1,700 products in January and a further 862 this month in a bid to encourage more imports, especially the U.S. More tariff cuts on about 300 imported products, including televisions, video tape recorders, cosmetics and refrigerators will be announced in a month or two, Li said. Li’s colleague, Wang Chien-shien, said the government will send several trade missions to the U.S. This year to buy about one billion U.S. Dlrs of products, including machinery, power equipment, grains and precision tools. “We earnestly hope to reduce our trade surplus with the U.S.,” he said. Taiwan’s trade surplus rose to a record 13.6 billion U.S. Dlrs last year from 10.2 billion in 1985, and it widened to 3.61 billion in the first quarter of 1987 against 2.78 billion a year ago, official statistics show. The surplus has increased U.S. Pressure on Taiwan for a faster appreciation of its currency, which has risen by about 18 pct since September 1985. It opened at 33.10 to the U.S. Dollar today. REUTER 29-APR-1987 04:57:56.71 boptrade west-germany RM f0237reute b f BC-GERMAN-CURRENT-ACCOUN 04-29 0090 GERMAN CURRENT ACCOUNT SURPLUS WIDENS IN MARCH WIESBADEN, April 29 – West Germany’s current account surplus widened to a provisional 8.8 billion marks in March from a slightly downwards revised 6.5 billion in February, a spokesman for the Federal Statistics Office said. The trade surplus fell to a provisional 10.1 billion marks from 10.4 billion in February. The Statistics Office had earlier put the February current account surplus at a provisional 6.6 billion marks. The provisional February trade surplus was confirmed. The Office said the March trade surplus had also risen strongly from the year-ago month total of 8.5 billion marks, while the March current account surplus compared with only 4.3 billion marks a year earlier. The figures given by the office show nominal trade flows, but an office statement said that the current account surplus had also risen in real terms from February. However, it attributed this partly to the fact that payments to the European Community had been brought forward in February, with the result that transfers abroad in March were unusually low. The Statistics Office said March imports totalled 36.93 billion marks, a rise of 15 pct from February and of 4.7 pct compared with March 1986. March exports of 47.06 billion marks were 11 pct higher than in February and 7.6 pct higher than in March last year. Other data reported in the current account balance showed there was a 400 mln mark deficit in supplementary trade items, a 500 mln mark deficit in the services account and a 400 mln mark deficit in transfer payments. The Statistics Office said that in the first three months of this year the trade surplus had risen to 27.8 billion marks from 22.6 billion marks in the same period last year. The current account surplus had risen to 20.0 billion marks from 15.6 billion. REUTER 29-APR-1987 05:09:58.42 japanussr adb-asia RM f0260reute u f BC-SOVIET-UNION-UNDECIDE 04-29 0099 SOVIET UNION UNDECIDED ON ADB MEMBERSHIP OSAKA, Japan, April 29 – The Soviet Union’s first official observer at the Asian Development Bank (ADB) said he came away from this week’s ADB annual meeting with a favourable impression but that no decision has been made on whether the Soviet Union should join as a full member. Yurij V. Ponomarev, international managing director of the State Bank, said he will file a formal report when he returns to Moscow, but it will not contain any recommendation on membership. “We haven’t started any process with a view toward membership,” he said. Ponomarev downplayed the significance of his attendance, saying it only signalled a slight change in attitude by Moscow. Although this is the first time Moscow has attended the ADB’s annual meeting as an observer, Soviet bankers have come to meetings in the past as guests, he said. Delegates here saw the Soviet move as part of an overall strategy to strengthen ties with Asia and improve the functioning of the Soviet economy. Ponomarev declined to comment on remarks yesterday by a senior U.S. Official, who warned that Soviet membership in the ADB would cause serious operational problems. “How would the ADB, for instance, use the (Soviet) rouble as a basis for expanding its capital?” asked the U.S. Official, who declined to be identified. Ponomarev said: “It is far too premature to speculate on the potential difficulties that might be involved if we applied for membership.” In order to become a member, Moscow would have to gain the backing of two-thirds of the board of governors representing three-quarters of the voting power of member countries. Washington has just over a 12 pct voting share. REUTER 29-APR-1987 05:30:06.64 money-supplyreserves taiwan RM f0296reute u f BC-TAIWAN-ISSUES-MORE-CD 04-29 0096 TAIWAN ISSUES MORE CD’S AS RESERVES HIT RECORD TAIPEI, April 29 – The Central Bank issued 5.68 billion Taiwan dlrs’ worth of certificates of deposit (cd’s), bringing issues so far this year to 180.16 billion dlrs against 40 billion issued a year earlier, a bank spokesman said. The new cd’s, with maturities of six months, one and two years, bear interest of 4.03 to 5.12 pct. The issues are intended to help curb the growth of m-1b money supply resulting from large foreign exchange reserves which the bank said today had reached a record 56 billion U.S. Dlrs. REUTER 29-APR-1987 05:43:34.88 graincorn taiwanusa G C f0325reute u f BC-TAIWAN-BUYS-81,000-TO 04-29 0093 TAIWAN BUYS 81,000 TONNES OF U.S. MAIZE TAIPEI, April 29 – The joint committee of Taiwan’s maize importers awarded contracts to two U.S. Firms to supply two shipments totalling 81,000 tonnes, a committee spokesman said. Continental Grain Co of New York won a contract for the supply of 54,000 tonnes, priced at 96.17 U.S. Dlrs a tonne c and f Taiwan for delivery between May 21 and June 5. Gulf Coast Grain Inc of Memphis, Tennessee, won a contract for 27,000 tonnes at 100.75 dlrs a tonne also c and f Taiwan, for May 21-June 5 delivery. REUTER 29-APR-1987 05:47:25.94 incomeipi china RM f0331reute u f BC-CHINA’S-WAGE-BILL-GRE 04-29 0107 CHINA’S WAGE BILL GREW TOO FAST IN FIRST QUARTER PEKING, April 29 – China’s total wage bill for state employees grew too fast in the first quarter, because of excessive bonuses, allowances and overtime pay, the official Economic Information newspaper said. It said the total wage bill in the period was 38.7 billion yuan, an increase of 16.7 pct over the first quarter of 1986, when the bill grew a year-on-year 16.3 pct. The increase accounted for 39.6 pct of planned wage rises in all of 1987. It said bonus payments rose a 42.6 pct, far in excess of growth in productivity. Industrial output grew a 14.1 pct in the period. The newspaper said state allowances rose in the period by 20 pct over the corresponding 1986 quarter, with some areas and work units increasing coal and electricity allowances on their own without proper authorisation. It said overtime pay rose a year-on-year 32 pct, with some enterprises ignoring official regulations in their payments. REUTER 29-APR-1987 05:49:58.85 meal-feedtapiocagrainbarley west-germany C G f0340reute r f BC-WEST-GERMAN-TAPIOCA-U 04-29 0109 WEST GERMAN TAPIOCA USE SEEN DECLINING HAMBURG, April 29 – West German use of tapioca is likely to decline further despite favourable prices and import licences for only 420,000 tonnes have been registered since the start of the current agricultural year, compared with 640,000 tonnes during August/April the previous year, trade sources said. The 12 European Community (EC) countries have licensed a total of 4.22 mln tonnes, while at the same year-earlier period the EC contracted for 3.17 mln tonnes, they said. The Netherlands is registering an increase in licences to around 2.9 mln tonnes, up 400,000 tonnes from last year, they said. Total EC tapioca imports during the current agricultural year are expected to stagnate at last year’s level of around 6.0 mln tonnes, the sources said. They reported a rise in consumption and in import licences for France, Spain and Belgium but said the West German compound feed industry was increasingly using grain in feed mixtures. Sellers quoted tapioca for nearby delivery at around 27 marks per 100 kilos against 37 marks in March and 34 marks in April last year. Feed barley was quoted at about 42 marks per 100 kilos, resulting in higher West German feed stuff prices, but demand was seen as slack. The sources said the West German feed industry was trying to help cut the grain surplus through increased use of grain in feed mixtures. Other EC member countries are likely to take advantage of the lower tapioca prices, they said. REUTER 29-APR-1987 05:50:05.89 japanusa adb-asia RM f0341reute u f BC-U.S.-CONCERNED-ABOUT 04-29 0106 U.S. CONCERNED ABOUT INCREASED JAPAN VOTES AT ADB OSAKA, Japan, April 29 – Washington views with concern a plan to increase Japan’s voting power at the Asian Development Bank (ADB), a U.S. Delegate at the bank’s annual meeting said. Japan, which holds 15.1 pct of the ADB’s capital stock, and the U.S. Which holds 14.9 pct, currently have near-parity in voting power. “The ADB was set up in 1966 as a partnership between the U.S. And Japan,” the official said. “Any change in that relationship would transmit a psychological message to this region’s countries that there is a slackening of interest on the part of the U.S.” “We do not want any dilution of our influence in the organisation,” the U.S. Official added. He said an imbalance in procurement contracts awarded for ADB-funded projects was however improving slowly. The U.S. Share of the contracts had grown from about seven pct to about 12 pct in 1986, the official said, while Japan’s share had dropped from 25 pct to 20 pct. “We will urge more U.S. Businessmen to join in the bidding for these projects,” he said. The official said Washington was concerned about the ADB’s future role in the region. “The U.S. Believes the ADB should act as a catalyst both for policy changes that will lead to sustainable, long-term economic growth and for other financial flows,” chief U.S. Delegate Charles Dallara told the meeting earlier. “Economic reform should be a theme of the ADB’s lending,” the unidentified U.S. Official said. “The bank is doing its borrowers a disservice by not entering into policy dialogue,” he added. “We are looking for the bank to take up the cudgel when its borrowers are at a critical stage in their development. We are looking at a 15 or 20 year horizon.” REUTER 29-APR-1987 06:01:22.34 reservesdlrmoney-fx taiwan RM f0363reute u f BC-TAIWAN-CENTRAL-BANK-D 04-29 0120 TAIWAN CENTRAL BANK DEFENDS DOLLAR RESERVES POLICY TAIPEI, April 29 – Central Bank governor Chang Chi-cheng defended Taiwan’s policy of holding a large amount of its foreign exchange reserves in U.S. Dollars, citing similar policies followed by countries such as West Germany and Japan. The reserves, now a record 56 billion U.S. Dlrs, are the world’s largest after those of West Germany and Japan. About 90 pct is held in U.S. Dollars and the rest in yen and marks. Chang’s remarks to parliament were in response to a call on Monday by about 20 members of the parliament who asked the government to diversify into other currencies, including yen, marks and Swiss francs because of exchange rate losses. The legislators said the bank lost about 3.8 billion U.S. Dlrs between September 1985 and September 1986 as the Taiwan dollar rose to 36.77 to the U.S. Dollar from 40.45. They said they expected the losses to continue because of the rising Taiwan dollar against the U.S. Currency. Chang said the central bank could not sell the U.S. Dollars like other private banks or enterprises because such trading would be speculative and risky. “The U.S. Dollar is an international currency and is widely used among trading nations,” he added. Chang said the Central Bank has further revised foreign exchange rules, which would relax most controls or even suspend them. The revised rules have been submitted to the cabinet for approval, he said. He declined to give details. REUTER 29-APR-1987 06:25:08.30 grainwheat ukchina C G f0393reute u f BC-U.K.-TO-SUPPLY-WHEAT 04-29 0091 U.K. TO SUPPLY WHEAT TO CHINA UNDER AID PROGRAM LONDON, April 29 – The U.K. Will ship 39,250 tonnes of feed wheat to China this month as food aid at a cost to the British aid program of 3.4 mln stg, the Overseas Development Administration (ODA) said. The wheat will be supplied by grain exporter Ceres UK Ltd. As part of the European Community’s obligation under the Food Aid Convention, the U.K. Is pledged to supply 110,700 tonnes of cereals each year. From this commitment the U.K. Makes allocations to the World Food Programme. REUTER 29-APR-1987 07:46:16.86 jobs ec RM f0561reute r f BC-EC-UNEMPLOYMENT-FALLS 04-29 0101 EC UNEMPLOYMENT FALLS BELOW 17 MLN IN MARCH LUXEMBOURG, April 29 – Unemployment in the European Community fell in March to 16.8 mln from 17 mln in February thanks to an improvement in the weather, the EC’s statistics agency Eurostat said. It said the number of jobless fell in all 12 Community member states as weather conditions improved, though France, Italy and Spain saw declines of less than one pct. There was also a particularly large drop in the number of jobless under-25s in all states except Italy, where 19,300 more young people were unemployed in March than in the month before. REUTER 29-APR-1987 07:47:06.88 gnptradecpi thailand RM M G C f0564reute r f BC-THAI-ECONOMY-TO-ACHIE 04-29 0105 THAI ECONOMY TO ACHIEVE FIVE PCT GROWTH THIS YEAR BANGKOK, April 29 – Thailand’s gross domestic product will expand five pct this calendar year, up from 3.8 pct in 1986, despite a projected slight decline in agricultural output due to drought, the Bank of Thailand said. Central bank spokesman Siri Karncharoendi told reporters the Thai economy clearly recovered in the first quarter from the lingering effects of the 1984-85 recession. He said the industrial sector is expected to expand 5.5 pct this year, up from five pct in 1986. Agricultural output is projected to grow 2.8 pct after 1.5 pct contraction in 1986. He said January/March imports grew 19.2 pct to 70.7 billion baht, in response to an improving domestic market, compared with a nine pct decline to 59.3 billion a year ago. Non-oil imports grew 24.8 pct to 60.2 billion baht while oil imports declined 5.6 pct to 10.5 billion. First quarter exports increased 12.7 pct to 63.2 billion baht compared with 14.4 pct and 56.1 billion a year ago. Siri said he expects the trade deficit to widen to about 30 billion baht this year from 17.4 billion in 1986. The current account, which last year posted a surplus of 3.5 billion baht, is projected to return to a 7.4 billion deficit in 1987. He said overall January/March lending by the Thai banking system grew a strong nine pct to 577.9 billion baht, up from 4.7 pct growth in the previous quarter and 5.8 pct for the whole of 1986. He said the Thai consumer price index rose 1.8 pct in the first quarter, down from 2.3 pct a year ago, but added that with the economy picking up, inflation is expected to rise to 2.5 pct this year from 1.9 pct for the whole 1986. REUTER 29-APR-1987 08:01:47.21 oilseedgrainveg-oil ec G T C f0588reute b f BC-EC-FARM-MINISTERS-END 04-29 0103 EC FARM MINISTERS END PRICES MEETING STILL DIVIDED By Gerrard Raven, Reuters LUXEMBOURG, April 29 – European Community (EC) agriculture ministers ended a three-day meeting in Luxembourg still deeply divided over plans by the EC Commission to curb the cost of the EC’s farm policy through sharp cuts in farm returns. Their chairman, Belgium’s Paul de Keersmaeker, told a news conference after the meeting he would work on a paper setting out possible compromise solutions in the next two weeks, with the hope that the ministers can get down to detailed negotiations at a meeting in Brussels on May 18. But diplomats said the talks this week had served little more than to clarify member states’ positions on the complex package of measures proposed by the commission. The executive body has proposed measures which would result in price cuts this year for many crops of upwards of 10 pct. Other controversial plans include a tax on EC-produced and imported oilseeds and fats to bring in two billion European currency units, to help the EC’s cash crisis, and changes in the conversion of EC common farm prices into national currencies which would inflict extra burdens on West German and Dutch farmers. De Keersmaeker attempted yesterday to narrow differences between EC states on the oils tax proposal, the currency measures and the key question of cereals prices and associated measures. But he told journalists, “We have used this meeting to reach the point at which real negotiations can start at the next meeting. Ideally they should have started now but our procedures took much longer than planned.” Ministers are in theory supposed to agree a price package by April 1 each year, although this target is seldom reached in practice. Diplomats said on all the points there were widely diverging views, with Britain and the Netherlands, the countries most supportive of commission proposals for cereals price cuts, strongly opposed to the oils tax. However, de Keersmaeker said West German objections to the monetary proposals could prove the most difficult issue to resolve. “This is a very tough political nut, and because of the very nature of the problem there is no technical solution,” he said. Commission sources said farm commissioner Frans Andriessen was prepared to alter some technical aspects of his proposals to make an agreement easier. However, because of the EC’s budgetary crisis, he had little room for concessions to pleas for a cut in the impact of his proposals on farmers’ incomes as several ministers, led by Germany’s Ignaz Kiechle, are demanding. EC Commission president Jacques Delors has warned that the EC will have an accumulated budgetary deficit of over five billion Ecus by the end of this year, even if the commission farm price package is adopted in its entirety. REUTER 29-APR-1987 08:08:04.59 shipiron-steel ukvenezuela M f0612reute d f BC-GREEK-BULK-CARRIER-AG 04-29 0074 GREEK BULK ORE CARRIER AGROUND IN ORINOCO RIVER LONDON, April 29 – A Greek bulk carrier loaded with iron ore has run aground in Venezuela’s Orinoco river, Lloyd’s shipping services reports. The 74,596-dwt Andromachi is reported to have run aground near mile 149 on Monday and attempts to refloat the vessel using tugs has so far been unsuccessful, Lloyd’s said. The Andromachi is managed by Theodore and Angelos Efstathiou of Piraeus. Reuter 29-APR-1987 08:36:16.68 acqalum francecanada C M f0718reute u f BC-PECHINEY-TO-SELL-PART 04-29 0097 PECHINEY TO SELL PART OF STAKE IN CANADA PLANT PARIS, April 29 – French state-owned aluminium and special metals group Pechiney is planning to sell 25 pct of a Canadian aluminium plant at Becancour to the U.S.’s Reynolds Metals Co over the coming weeks, the company said. Pechiney currently holds a majority 50.1 pct stake in the plant. The company also said it planned an agreement soon with Italy’s , a 57 pct owned subsidiary of related to cupreous products. No further details were available. REUTER 29-APR-1987 09:07:37.92 veg-oil ec C G f0819reute u f BC-BELGIAN-MINISTER-TO-R 04-29 0134 BELGIAN MINISTER TO REVIEW EC OILS/FATS TAX PLAN LUXEMBOURG, April 29 – Belgian Agriculture Minister Paul de Keersmaeker said he would review EC Commission proposals for a tax on imported and EC produced vegetable oils and fats in the light of objections made by certain EC member states. De Keersmaeker, current chairman of the EC farm ministers’ council, was speaking after a three-day meeting of ministers at which the tax proposal was one of the key themes. He said he would review the position as part of plans to present compromise proposals for the 1987/88 farm price package to the next meeting, starting in Brussels on May 18. De Keersmaeker, who said there was “a great deal of resistance in many delegations” to the tax, declined to say what aspects of the proposals he would review. However, EC Commission sources said they are expected to include the question of whether it should apply to marine oils. They said Denmark and Portugal might agree to the tax, to be set initially at 330 Ecus a tonne, if these oils, of which they are major producers, were excluded. The sources said, however, that Britain, the Netherlands and West Germany continue to have strong objections to the tax, partly because of fears that its impact on U.S. Soybean exports could provoke transatlantic trade friction. They said that, if these three countries held firm to this position, they would be able to block the proposal under the EC’s majority voting mechanism. Reuter 29-APR-1987 09:39:27.58 hoglivestock usa C L f0933reute u f BC-slaughter-guesstimate 04-29 0063 HOG AND CATTLE SLAUGHTER GUESSTIMATES CHICAGO, April 29 – Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today’s hog slaughter at about 275,000 to 285,000 head versus 283,000 week ago and 312,000 a year ago. Cattle slaughter is guesstimated at about 125,000 to 128,000 head versus 124,000 week ago and 136,000 a year ago. Reuter 29-APR-1987 09:45:10.87 leignp usa A RM f0948reute r f BC-U.S.-INDEX-SAID-CONSI 04-29 0086 U.S. INDEX SAID CONSISTENT WITH GROWTH FORECAST WASHINGTON, April 29 – Robert Ortner, under secretary of commerce, said last month’s 0.4 pct rise in the Index of Leading Indicators was consistent with growth of 3.0 pct this year. He said in a statement that stock prices accounted for a large share of the index’s growth in the last six months. “Excluding stock prices, the rate of increase was still a healthy 6.2 pct and is consistent with 3.0 pct or more overall economic growth during 1987,” he said. Reuter 29-APR-1987 10:21:28.80 teacoffee kenya T f1096reute d f BC-KENYA’S-TEA-AND-COFFE 04-29 0113 KENYA’S TEA AND COFFEE AREAS CONTINUE DRY NAIROBI, April 29 – Kenya’s coffee and tea growing areas remained generally dry for the second consecutive week, in the period to April 28, weather and farming sources said. All areas east and west of the Rift Valley recorded below 25 mm of rain with western Kericho town having only 21 mm, they said. Kericho, which last year received 387 mm in April last year, has so far recorded only 176 mm and little rain is forecast throughout the country in the next two days. Tea and coffee crops are doing well but farmers fear that output will be low if the unusually dry spell continues. April is normally the wettest month in Kenya. Reuter 29-APR-1987 10:25:40.86 graincorn C G T f1102reute b f BC-SOVIET-SPRING-CROPS-S 04-29 0122 SOVIET SPRING CROPS SOWN ON ONLY 11 PCT OF LAND ****MOSCOW, April 29 – Soviet farmers had sown spring crops on only 15.8 mln hectares or 11 pct of cultivated land by April 27, compared with 26.2 mln ha by April 21, 1986, Izvestia said. Grains and pulses (except maize) were sown on 6.7 mln ha, compared with 13.1 mln at the same time last year, it added. Spring sowing is off to a slow start, with planting two to four weeks behind schedule in many areas of the Ukraine, Byelorussia and Russia, because the winter was unusually cold. Western agricultural experts believe the crop could still be good but heavy winterkill will make it difficult to reach the 1987 grain target of 232 mln tonnes. The 1986 crop was 210 mln. Reuter 29-APR-1987 10:54:30.74 netherlands oecd RM f1240reute r f BC-WORLD-ECONOMIC-CONVER 04-29 0102 WORLD ECONOMIC CONVERGENCE VITAL, OECD ENVOY SAYS THE HAGUE, April 29 – It is vitally important that the industrialised countries of the world work towards convergence of their economies and economic policies, U.S. Ambassador to the Organisation for Economic Cooperation and Development Edward Streator said. He told an American Chamber of Commerce lunch the world was changing rapidly and national attitudes had to alter accordingly if growth was not to falter and world depression set in. Liberalisation of world trade in money, goods and services and technology was an overriding goal, he added. World financial flows were now 12 times as large as traditional trade flows, the importance of commodities was declining rapidly, countries such as those on the Pacific Rim were becoming major growth areas, and the labour element in manufacturing was declining sharply, Streator said. All these factors were creating major social and economic pressures and demanding a rapid reassessment of traditional attitudes, he added. “Agriculture is a prime target for change.One of the first things we must do is disconnect farm subsidies from production,” Streator said. At an OECD ministerial meeting in two weeks time there would be an attempt to agree global principles to help reduce this major agricultural problem, Streator said. “However, of equal and vital importance in reducing the world’s dangerous slide towards protectionism will be the outcome of the new round of talks under the General Agreement on Tariffs and Trade (GATT),” Streator added. Dutch finance minister Onno Ruding, who also spoke briefly at the lunch, stressed the importance of coordinating national policies and of the GATT talks in preventing a rapid decline into bilateralism and global protectionism. REUTER 29-APR-1987 11:00:47.87 money-fxsfrmoney-supply switzerland RM f1262reute u f BC-SWISS-PREPARED-TO-INC 04-29 0105 SWISS PREPARED TO INCREASE CURRENCY INTERVENTION LIESTAL, Switzerland, April 29 – The Swiss National Bank is prepared to increase its intervention on currency markets if the action can be properly coordinated with other central banks, Markus Lusser, a member of the Bank’s three man directorate, said. He told a meeting of Swiss industrialists that intervention to support the dollar could not bring about lasting changes in exchange rates unless accompanied by fundamental changes in economic policy. However, intervention could send signals that would contribute to a short term smoothing of currency movements. The National Bank was prepared to intensify cooperation with other central banks, especially where convincing coordination and significant timing are guaranteed, Lusser said. He said currency developments could not simply be talked into existence but needed to be matched by actions in the field of economic policy. “Put simply, that means that in order to stabilise the dollar in a lasting way, a reduction of the budget deficit and a slowdown in money supply growth in the United States are unavoidable,” he said. The National Bank has intervened in dollar-yen repeatedly in the last few weeks and earlier this week it said it had intervened in dollar-Swiss franc for the first time since last October. Lusser said the key to increased exchange rate stability lay not in currency intervention by central banks but only in an improvement in international economic policy coordination. This meant that industrial countries must avoid abrupt switches in economic policy and give priority to price stability. Lusser said the National Bank continued to take the view that easing its strict monetary policies would be incompatible with its primary goal of combatting inflation. The bank target is for growth of two pct in central bank money supply in 1987. He noted that in 1978, when the Swiss franc rose sharply against all currencies, the bank was forced to abandon its money supply targets in favour of an exchange rate target, with the result that inflation surged. “Current exchange rate developments have not, until today at any rate, made any such measures by the National Bank necessary,” he said. REUTER 29-APR-1987 11:05:19.31 money-fxdmkinterest west-germany RM f1294reute u f BC-LOWER-MARK-RATE-SPECU 04-29 0112 LOWER MARK RATE SPECULATION NOT SHARED IN GERMANY By Jonathan Lynn, Reuters FRANKFURT, April 29 – Speculation abroad that the Bundesbank will steer money market rates lower, opening the for interest rate cuts around Europe, is not shared by many economists and money market dealers within Germany. Speculation has developed that the Bundesbank would engineer lower rates to take pressure off the dollar/mark. A strong rise in U.S. Market rates this month, prompting speculation the Fed would raise its 5-1/2 pct discount rate, has raised the question whether Germany and Japan would also broaden interest rate differentials to support the dollar. The U.S.-Japanese trade dispute is the key to the interest rate outlook, money market dealers in Paris said. Talks this week between Japanese Prime Minister Yasuhiro Nakasone and President Reagan, if successful, could take pressure off the dollar, dealers and economists said. Short term interest rates would be likely to ease if the trade dispute is solved and the dollar steadies, they said. But if no solution is found, the Paris dealers said, a renewed dollar fall would put strains on the mark/French franc rate and force the Bank of France to raise short-term rates. The three-month U.S. Treasury bill rate rose to six pct this week from 5.6 pct at the start of April, and the yield on the 30-year benchmark treasury bonds rose this week in Tokyo to a 14-month high of 8.86 pct from 7.66 pct in late March. The dollar stabilized today just below 1.80 marks and above 140 yen, underpinned by higher U.S. Rates and the Fed discount rate speculation. But most dealers expect it to weaken further, which would put pressure on the Bundesbank to ease interest rates. Japanese Finance Minister Kiichi Miyazawa said yesterday the U.S. Had requested Japan to cut short-term interest rates. The Bank of Japan was making efforts to do this, he said, adding the U.S. Had not asked for a cut in Japan’s 2.5 pct discount rate, a move which Bank of Japan Governor Satoshi Sumita said was not under consideration. A call for a German move came yesterday from Dutch central bank president Wim Duisenberg, who said the Dutch central bank favoured a cut in West German interest rates and would follow suit if it happened. Citibank AG said in its April report that another expected phase of dollar weakness would prompt the Bundesbank to cut key money market rates in the next three to six months. The Bundesbank has set a fixed rate of 3.80 pct on repurchase pacts since February, with call money trading around 3.70 pct for much of April. Phillips and Drew senior European economist Richard Reid said the Bundesbank would allow interest rates to ease further, either with a lower fixed rate tender, or a tender by interest rate, allowing the market to set the rate. “I’m fairly confident we’ll see lower rates,” he said. Reid said taking 30 basis points off the repurchase rate would have little impact on the German economy or fundamental exchange rates, but could change market currency perceptions. “A cut in German rates wouldn’t be bad for the dollar, but I think its effect would be limited in duration unless it was accompanied by other measures elsewhere,” he said. Money market dealers here noted the speculation abroad that the Bundesbank would push down repurchase rates, but said the Bundesbank had little reason to cut rates further at the moment, despite the liquid market seen for most of this month. The dealers said the Bundesbank was likely to move to an interest rate tender for its repurchase pacts next month. That should not be seen as a sign of easing monetary policy however, they said. The Bundesbank would merely be experimenting with interest rate tenders, following the introduction of a new system to speed up the tender process at the start of April, they said. Reinhard Pohl, head of the monetary policy section at the DIW economic research institute in West Berlin, said the Bundesbank would probably not cut rates on repurchase pacts. “I don’t think that if they cut the repurchase rate a little it would stop a wave of (currency) speculation,” he said. But a sharp and sudden deterioration in the dollar could force the Bundesbank to take some action, he said. Pohl said the Bundesbank was concerned that a cut in interest rates would accelerate excessive monetary growth. Some Bundesbank officials have argued recently that the monetary overshoot was due to strong currency inflows rather than credit growth, and therefore a more appropriate response to excessive money supply growth would be to cut rates, to make the mark and mark investments less attractive. Pohl said the Bundesbank was hoping that domestic investors would switch funds parked in liquid short-term accounts, which have swollen central bank money stock, into securities, which would take them out of the Bundesbank’s key monetary measure. A cut in interest rates at this stage however would lead investors to assume that rates had bottomed out and the next move would be upwards. They would therefore hold off buying bonds, leaving central bank money stock swollen. There are so far no signs that German investors are switching funds into long term securities as the Bundesbank hopes they will, Berliner Handels- und Frankfurter Bank economist Hermann Remsperger said. But Phillips and Drew’s Reid said prospects of lower rates and a strong currency would attract foreign investors into German bonds, which would in turn attract domestic investors. Werner Rein, chief economist at Union Bank of Switzerland in Zurich, said he thought it likely that interest rates would continue to drift lower in many European countries. “The scope for lower rates is probably greatest in Britain but more limited in West Germany, where we could see some consolidation,” he said. Switzerland could be forced to match any cut in German rates to prevent the franc rising further against the mark, he said. Currency dealers in London said another half-point cut in U.K. Bank base rates was likely in the next few weeks as the pound had shrugged off yesterday’s cuts and was still rising. REUTER 29-APR-1987 11:13:25.08 money-fxsfrmoney-supply switzerland A f1345reute r f BC-SWISS-PREPARED-TO-INC 04-29 0104 SWISS PREPARED TO INCREASE CURRENCY INTERVENTION LIESTAL, Switzerland, April 29 – The Swiss National Bank is prepared to increase its intervention on currency markets if the action can be properly coordinated with other central banks, Markus Lusser, a member of the Bank’s three man directorate, said. He told a meeting of Swiss industrialists that intervention to support the dollar could not bring about lasting changes in exchange rates unless accompanied by fundamental changes in economic policy. However, intervention could send signals that would contribute to a short term smoothing of currency movements. The National Bank was prepared to intensify cooperation with other central banks, especially where convincing coordination and significant timing are guaranteed, Lusser said. He said currency developments could not simply be talked into existence but needed to be matched by actions in the field of economic policy. “Put simply, that means that in order to stabilise the dollar in a lasting way, a reduction of the budget deficit and a slowdown in money supply growth in the United States are unavoidable,” he said. The National Bank has intervened in dollar-yen repeatedly in the last few weeks and earlier this week it said it had intervened in dollar-Swiss franc for the first time since last October. Lusser said the key to increased exchange rate stability lay not in currency intervention by central banks but only in an improvement in international economic policy coordination. This meant that industrial countries must avoid abrupt switches in economic policy and give priority to price stability. Lusser said the National Bank continued to take the view that easing its strict monetary policies would be incompatible with its primary goal of combatting inflation. The bank target is for growth of two pct in central bank money supply in 1987. He noted that in 1978, when the Swiss franc rose sharply against all currencies, the bank was forced to abandon its money supply targets in favour of an exchange rate target, with the result that inflation surged. “Current exchange rate developments have not, until today at any rate, made any such measures by the National Bank necessary,” he said. REUTER 29-APR-1987 11:15:53.85 grainwheat usazaire C G f1360reute u f BC-CCC-ACEPTS-BONUS-BID 04-29 0102 CCC ACEPTS BONUS BID ON WHEAT TO ZAIRE – USDA WASHINGTON, April 29 – The Commodity Credit Crporation has accepted a bid for an export bonus to cover the sale of 8,000 tonnes of hard red winter wheat to Zaire, the U.S. Agriculture Department said. The wheat is scheduled for shipment May 11-June 11, 1987, the department said. The bonus, to Continental Grain Co, was 32.55 dlrs per tonne and will be paid in the form of commodities from CCC stocks. An additional 7,000 tonnes of wheat are still available to Zaire under the Export Enhancement program initiative announced on October 17, 1986, it said. Reuter 29-APR-1987 11:30:03.51 livestock usa L f1414reute d f BC-USDA-PROGRAM-TO-FIGHT 04-29 0135 USDA PROGRAM TO FIGHT SCREWWORMS IN LIVESTOCK WASHINGTON, April 29 – Sterile screwworm flies will be released this weekend in Miami, Florida, and Albuquerque, New Mexico, to combat a potential outbreak of screwworms, a serious pest of livestock, the Agriculture Department said. The action follows identification April 21 of screwworm larvae in a hunting dog which passed through airports in Miami and Albuquerque while being returned to the United States from Venezuela, it said. Sexually sterilized screwworm flies will be released twice a week for six weeks in an effort to eradicate any breeding populations of the flies. Adult femals usually mate only once in their lifetime and eggs resulting from matings between sterile and fertile flies will not hatch, thus ending the life cycle, it said. Reuter 29-APR-1987 11:33:50.14 wpi netherlands RM f1433reute u f BC-DUTCH-PRODUCER-PRICES 04-29 0090 DUTCH PRODUCER PRICES RISE 0.3 IN JANUARY THE HAGUE, April 29 – The index of Dutch producer prices of finished and intermediate goods rose 0.3 pct in January to a provisional 112.1, base 1980, against 111.8 in December 1986, Central Bureau of Statistics figures show. The January figure was 4.7 pct below the January 1986 figure of 117.6. In December 1986, the index showed a 5.7 pct year-on-year decline. The Bureau said earlier this week it had run into delays in processing producer price statistics for recent months. REUTER 29-APR-1987 12:11:41.17 leignp usa V RM f1627reute u f BC-/U.S.-MARCH-LEADING-I 04-29 0110 U.S. MARCH LEADING INDEX SIGNALS MODEST GROWTH by Kathleen Hays, Reuters NEW YORK, April 29 – A 0.4 pct rise in the March U.S. index of leading indicators points to continued moderate U.S. real economic growth, economists said. “The report is consistent with a modestly growing economy,” said Steve Slifer of Lehman Government Securities Inc. “The economy is not robust, but we’re not heading into a recession either.” “The report suggests more of the same: continued moderate growth,” said Ward McCarthy of Merrill Lynch Government and Co Inc. “The gain was mostly in stock prices. There was no change in the fundamental movement of the economy.” The Commerce Department said that higher stock prices led the March gain. Unemployment claims, vendor performance, contracts and orders for plant and equipment, manufacturers’ orders, and building permits also were positive. The average workweek, raw materials prices, and money supply detracted from the index. Economists noted that the index signals the direction but not the magnitude of changes in gross national product. “You can’t derive profound conclusions on the economy from the report,” McCarthy said. “The link between leading indicators and the economy is not strong.” Reuter 29-APR-1987 12:13:25.22 gnpcpibop uk lawson RM f1637reute u f BC-U.K.-ECONOMY-STRONGER 04-29 0117 U.K. ECONOMY STRONGER THAN AT BUDGET, LAWSON SAYS 0 LONDON, April 29 – The U.K. Economy looks stronger than it did only last month, when the government unveiled its budget for fiscal 1987/88, Chancellor of the Exchequer Nigel Lawson said. He told Parliament that “all the indicators that have been published since the budget confirm that, if anything, we are doing even better than I suggested then.” The budget was unveiled on March 17. “The PSBR (Public Sector Borrowing Requirement) has come out lower than I forecast in the Budget. Inflation, too, is lower than I suggested … (and) the current account of the balance of payments is also performing better, so far, than I predicted.” The budget foresaw inflation easing to 4.0 pct at the end of this year after peaking at around 4.5 pct. Lawson said at the time that the overall 1986/87 PSBR would be around 4.0 billion stg. It was in fact lower, at 3.3 billion stg. He had also projected average GDP growth in calendar 1987 of 3.0 pct after 2.5 pct in 1986. Lawson today said “output appears to be rising, if anything, rather faster.” Speaking during a House of Commons debate, he said, “by the end of this year we will have registered the longest period of steady growth, at close to 3.0 pct a year, that the British economy has known since the (Second World) War.” The 1987/88 budget contained a proposal to cut the basic rate of taxation by two pence, to 27 pence in the pound. Lawson today reaffirmed that the government aimed to further cut the standard rate to “no more than 25p.” He said that that objective “should not take too long to achieve.” Turning to policies proposed by political opposition parties, Lawson said those advocated by the Labour Party would entail extra public expenditure of some 34 billion stg. That, he said, “would require either a doubling of the basic rates of income tax or more than trebling the standard rate of (valued added tax) VAT,” which is currently 15 pct. On value added tax, Lawson noted that the Conservative government promised back in 1984 not to extend VAT to food. “Beyond that, the incidence of taxation has to be determined in the light of the budgetary needs at the time, and no responsible government could conceivably take any other position,” he said. Labour MPs have accused the Conservatives of planning VAT increases for some essential consumer goods. Lawson reiterated his belief that reductions in taxation can often produce higher, not lower, revenues “thus leading to the scope for still further reductions in taxation.” Lawson said “inheritance tax is expected this year to yield almost 50 pct more in real terms than Capital Transfer Tax did in 1978-79. The yield of Capital Gains Tax is forecast to be 80 pct higher in real terms, and Stamp Duty up by 140 pct.” He said that “the greatly increased yield of Corporation Tax, reflecting greatly increased company profitability, is clearly connected with the reform of Corporation Taxation I introduced in 1984, which brought the rate of tax on company profits in this country to the lowest in the industrialised world.” REUTER 29-APR-1987 12:54:50.57 ship iraq C f1813reute u f BC-IRAQ-REPORTS-MERCHANT 04-29 0097 IRAQ REPORTS MERCHANT SHIP HIT IN THE GULF BAGHDAD, April 29 – Iraqi warplanes attacked and hit a large “naval target” — Baghdad’s term for a tanker or merchant vessel — in the Gulf today, an Iraqi military spokesman said. He said the raid took place off the Iranian coast at 0600 gmt and all aircraft returned safely to base. Lloyds Shipping Intelligence earlier today said the Greek bulk carrier Pamit, 84,137 tonnes dw, was attacked and hit in the engine room this morning in the northern Gulf. It said all the crew were safe and tugs were heading to aid the ship. Reuter 29-APR-1987 12:56:39.43 usa amex F f1824reute r f BC-AMEX-STARTS-TRADING-A 04-29 0036 AMEX STARTS TRADING AMERICAN LAND CRUISERS NEW YORK, April 29 – The said it has started trading the common stock of American Land Cruisers Inc, which had traded on the NASDAQ system. Reuter 29-APR-1987 13:00:37.03 crude usavenezuela F Y f1853reute d f BC-ENERGY/HEAVY-OILS–(p 04-29 0086 ENERGY/HEAVY OILS By SUSAN SHERER, Reuters HOUSTON, April 29 – The oil price collapse of 1986 put development of a vast petroleum resource — heavy and extra heavy oils — on hold. But as oil prices increase the long-term economic outlook is favorable, oil industry experts said. “Estimated potential world reserves of extra heavy oils exceed 500 billion barrels, of which more than half are located in Venezuela,” Juan Chacin Guzman, President of Petroleos de Venezuela told the World Petroleum Congress. “And this virtually unused resource represents a prime example of the need to invest in technology to ensure tomorrow’s energy future,” he added. Venezuela had to reduce heavy crude oil output in favor of light oils because of economics and a very limited market. Not many refineries have been upgraded to process the heavy oils. “Improved technology has the potential for reducing the capital investment and operating costs of typical heavy oil development projects by 30 pct or more,” Gordon Willmon, VP and general manager, oil sands and coal department, Esso Resources Canada Ltd said at the World Petroleum Congress. Crude oil prices fell under 10 dlrs dlrs a barrel last summer as OPEC members increased production to gain market share, but have since risen to around 18 dlrs because the OPEC production/pricing agreement is basically in tact. Willmon said light and medium crude oils currently supply 90 pct of world oil demand yet they account for less than 25 pct of remaining petroleum resources. “So future demand increasingly will be met from the various forms of heavy oil,” Willmon said. Heavy crude oil resources include extra-heavy oil/tar sand, natural bituminous sands and oil shales (in sedimentary rock). Willmon cited major factors that will make heavy oil development economical, including real and stable growth in crude oil prices, favorable fiscal terms, and improved technology. He said he expects “all pieces of the puzzle to fit together.” But he cautioned that the short-term outlook is very sensitive to crude oil prices. And he said the most important factor in development of heavy oils is the recovery of the price of crude. Willmon said the price of light crude must be about eight dlrs higher than heavy crude before there is an incentive for an oil company to upgrade its refinery to process heavy oil. He said the current price differential is only about five dlrs a barrel. Willmon indicated that a benchmark crude oil price above 20 dlrs would be ideal. But he said currently under study are a broad range of high potential cost-effective technologies for resources recovery, transportation and upgrading of heavy oils, which would permit commercial development despite a lower crude oil price outlook. Willmon said these technologies included enhanced recovery by steam injection and oil-and-water emulsion to reduce the viscocity of the heavy oils so they can flow easily through a pipeline. He said such technologies may substantially reduce current captial investment and operating costs. But he emphasized that innovative technology alone may not encourage new investment, that oil prices need to show a meaningful and sustained recovery. Most of the expenses associated with heavy oils production is fixed operating costs as in an oil sands project, rather than in exploration, according to Robert Smith, Senior VP Operations . While exploration costs for conventional crude oil range from four to nine dlrs a barrel, discovery costs for synthetic crude from oil sands are nearly zero because the location and nature of the deposit are known, according to Smith. But the remote location of oil sands deposits mean that everything required to build and operate the plant must come from outside the area. Willmon also said, “Public policy could best help by providing financial support to offset the high cost of technology developmemt which would help generate projects that could survive even at low oil prices for extended periods of time.” U.S. Energy Secretary John Herrington said, “The Reagan Administration is firmly committed, without equivocation, to continuing our efforts to improve conditions and incentives in the marketplace that will spur oil and gas exploration and development.” Reuter 29-APR-1987 13:01:29.10 gnp franceusa RM f1862reute r f BC-ECONOMIST-SEES-SLOWDO 04-29 0108 ECONOMIST SEES SLOWDOWN IN U.S. ECONOMIC GROWTH PARIS, April 29 – The U.S. Economy has peaked and will slow to a growth rate of between 2.5 pct and three pct for the remainder of 1987, First Boston Corp Managing Director Albert Wojnilower said. He told an investment conference the U.S. Economy will not be able to sustain the 4.3 pct growth rate recorded in first quarter gross national product. He said continued intermittent attacks on the U.S. Currency could lead to a substantial rise in long term interest rates. However, he predicted that rates will eventually decline either in anticipation of a recession or because of one. REUTER 29-APR-1987 13:18:04.43 usa nasdaq C f1941reute d f BC-SEC 04-29 0100 SEC OKAYS MIDWEST STOCK TRADING OF OTC ISSUES WASHINGTON, April 29 – The Securities Exchange Commission decided to allow the Midwest Stock exchange to trade 25 stocks currently listed on the National Securities Dealers Association Automated Quotation, NASDAQ, system. The SEC’s unanimous decision granting so-called unlisted trading privileges to the 25 NASDAQ securities will allow the Midwest Exchange to begin trading the issues by May 18 under a one-year pilot program. Unlisted trading privileges allow trading of stocks on an exchange other than the one on which the stocks are listed. Before it would approve the Midwest Exchange request for the unlisted trading privileges, the SEC had insisted that it and the National Association of Securities Dealers, NASD, come up with a way of reporting and combining information on stock prices and transactions. SEC officials said they needed to be assured that information on the trading in and price of the securities would be in one place, for accuracy and consistency. But since the exchanges still have not come with a master plan, the SEC approved an interim plan under which NASDAQ terminals would be put on the Midwest Exchange floor. All trades in the 25 over the counter securities done on the Midewest Exchange will be quoted in the NASDAQ system as well as on the Midwest Exchange under the interim plan. The NASD, Midwest Exchange and several other exchanges have said they are working on a master plan for consolidating the reporting of price quotes and other information on stocks now traded on NASDAQ and listed on one or more exchanges. But an SEC official said such a new master reporting system is not expected to be in place until early next year. The Midwest Exchange proposed the interim reporting plan so that it can begin unlisted trading immediately, he said. The 25 securities to be traded on the Midwest Exchange are the first over the counter securities to be traded on any exchange besides the NASDAQ. Some issues listed on exchanges, however, are traded on the NASDAQ. The 25 securities had an average dollar volume last year of 2.4 billion dlrs and made up 18 pct of the dollar volume of all the securities quoted on the NASD’s National Market System. SEC officials said they would review the pilot program in about a year. It was intended to spur more competition in the securities industry. Reuter 29-APR-1987 13:34:29.62 crude usa F Y f2026reute u f BC-OIL-IMPORT-FEE-BILL-I 04-29 0101 OIL IMPORT FEE BILL INTRODUCED IN U.S. HOUSE WASHINGTON, April 29 – A bill that would impose an oil import fee to support a world floor price for oil of 25 dlrs a barrel was introduced in the U.S. House of Representatives by 12 Congressmen from oil-producing states. The variable import fee would be dropped if oil prices rise above 25 dlrs a barrel, sponsors of the bill said. Revenues from the fee would be used to buy domestic oil from stripper wells – those that produce 10 barrels a day or less – at a fixed price of 25 dlrs a barrel. Purchases would stop when prices rose above that level. “Time is running out on the domestic oil and gas industry,” Rep. Joe Barton, R-Texas, said in a statement. “An oil import fee is really just the premium for a national insurance policy.” President Reagan opposes an oil import fee, but supporters of the bill said they hoped for action on it before the end of the year. Reuter 29-APR-1987 13:42:34.64 fuelheatjetgasmoney-fx egypt imfworldbank RM f2050reute u f BC-EGYPT-FUEL-PRICE-INCR 04-29 0108 EGYPT FUEL PRICE INCREASES PART OF REFORM PACKAGE By John Rogers, Reuters CAIRO, April 29 – Egypt has embarked on reforms sought by the International Monetary Fund (IMF) and the World Bank by raising the price of diesel oil and other types of transport fuels. The energy price increases were the first visible measures taken in return for IMF standby credits and World Bank loans. Effective today, fuel oil prices were trebled and prices of gas oil, diesel and kerosene went up by over 50 pct, an Egyptian General Petroleum Corp (EGPC) official said. He said fuel oil will sell for 28 Egyptian pounds a ton, instead of 7.5 pounds. Kerosene and gas oil were raised by 66 pct to sell for five piasters a litre, while diesel rose 50 pct to 4.5 piasters. The government is expected also to act soon, possibly as early as next weekend, to simplify the country’s complex exchange rate system, bankers said. Moving towards a more realistic exchange rate for the pound was part of a package of reforms sought by the IMF and creditor governments. In return, Egypt stands to receive up to one billion dlrs in IMF standby credits phased over three years to help it repay its 38.6 billion dlr foreign debt and guarantee rescheduling by western governments, the main creditors. Energy price increases were also a condition of progress on World Bank project loans of up to 800 mln dlrs in energy, communications and other sectors which have been under negotiation for several months, western diplomats said. The U.S. And Western Europe have pledged political backing for President Hosni Mubarak’s government, committed to a multi-party political system and peace with Israel and strategically poised in control of the Suez Canal. Fuel price rises, postponed at least once and likely to lead to higher retail prices of basic goods, were a test of the government’s resolve to pursue economic reform, diplomats said. But the new prices are still below world market levels. There was no announcement of increases in more politically sensitive products such as gasoline or natural gas, used for cooking, and the mass-circulation Al-Akhbar newspaper said they would stay the same. Official comment was not available on speculation among bankers and diplomats that the Central Bank would soon tinker with the pound’s exchange rates to try to channel more dollars into the banking system away from the illegal but tolerated free market. The Central Bank was expected to set up a committee in which 10 commercial banks, including the four state-owned banks, would decide the pound’s value every day. The official “incentive rate,” currently set by the Central Bank daily, is around 1.36 pounds to the dollar, against 2.15 on the free market. Bankers predicted that the banks’ committee might set rates around 1.80 or 1.90. But some doubted this would serve the aim of curbing the free market. REUTER 29-APR-1987 13:56:12.87 nat-gas canada E Y f2078reute r f BC-NORTH-AMERICAN-GAS-MA 04-29 0089 NORTH AMERICAN GAS MARKET RECOVERY YEARS AWAY By RUSSELL BLINCH, Reuters CALGARY, Alberta, April 29 – Better times for the hard hit natural gas industry remains two to three years away as a seemingly intractable supply bubble continues to depress sales and prices, industry officials said. An uncertain regulatory environment, disputes over Canadian pricing policies and unusually warm winters are working against a quick recovery in the sector, a number of corporate and government speakers told an energy conference here. “We see a tough, tough short-term market, both as to price and volume,” said Michael Phelps, vice president of , a major Canadian natural gas carrier. But Phelps predicted a fall in U.S. supply — caused by a sharp drop in exploration — and a slight demand increase should help to burn off the excess supply by 1990. As a result, Canadian gas exports to the U.S. market should rise to up to 1.5 trillion cubic feet a year by the end of the decade, nearly double 1986’s total. The health of the Canadian industry is heavily dependent on the U.S. market where nearly one third of Canada’s gas production is sent. Cuba Wadlington, a vice president at Northwest Pipeline Corp of Salt Lake City, shared the view that markets could be in balance by 1990. He said while North American demand for natural gas has flattened at about 18 trillion cubic feet a year, a return to more colder winters in the next few years could quickly tighten supplies. “Things are clearly working towards a shrinking of the bubble,” Wadlington told Reuters in an interview. However, recent decisions by the U.S. Federal Energy Regulatory Commission (FERC) were sharply criticized by Canadian delegates who suggested the moves could prevent the country from participating in the market’s recovery. The key dispute, known as the as billed issue, involves a ruling last December by FERC which effectively bars U.S. pipeline companies and consumers from paying certain Canadian shipping expenses. The Canadian government believes the ruling could severely weaken the country’s gas producers. “Besides the extra-territorial effect, there is the potential that Conadian producers and consumers may end up subsidizing the cost of transportation services originally incurred on behalf of U.S. customers,” said Robert Skinner, an assistant deputy minister in Canada’s energy department. But FERC Chairman Martha Hesse told the conference the ruling was really intended “to assure equal, fair and open competition in the pricing of natural gas sold within our country — whatever the source of the gas.” Hesse maintained Canadian gas was crucial to the emergence of a freely competitive, continent-wide, energy market. Speaking to concerns in Canada that the U.S. is seeking to limit Canadian gas shipments, Hesse said such a move would work against the long-term interest of American consumers. “We truly constitute a North American market,” she said. “Natural gas moving through pipelines recognizes no boundries.” Reuter 29-APR-1987 14:06:53.79 ship spain C G L M T f2109reute r f BC-60-PCT-SUPPORT-FOR-SP 04-29 0084 SPANISH PORT STRIKE BY 60 PCT OF WORKERS MADRID, April 29 – Some 60 pct of 6,300 employees at Spain’s 27 major ports have supported a strike since Monday in support of wage negotiations, a spokesman for the Public Works Ministry said. He said, however, that the stoppage has had no effect in Barcelona, Bilbao, Las Palmas and Pasajes and that mandatory minimum services in other ports allowed perishable goods to be handled. The strike is due to continue tomorrow with work resuming on Friday. Reuter 29-APR-1987 14:23:25.09 ship usaantigua F f2171reute h f BC-DEVCON-INTERNATIONAL 04-29 0056 DEVCON INTERNATIONAL GETS CONTRACT POMPANO BEACH, Fla., April 29 – Devcon International Corp said it has received a 13.5 mln dlr contract from the government of Antigua for harbor dredging and construction of a deepwater pier at St. John’s, with completion expected within two years. It said work will start immediately. Reuter 29-APR-1987 14:28:50.78 canada tose E F f2195reute b f BC-daiwa-securities 04-29 0080 DAIWA SECURITIES BUYS TORONTO EXCHANGE SEAT TORONTO, April 29 – Daiwa Securities America Inc, wholly owned by Daiwa Securities Co Ltd, of Tokyo, received approval to acquire a seat on the Toronto Stock Exchange for 361,000 Canadian dlrs, the exchange said. Approval was granted by the exchange’s board of governors and is the first acquisition of an exchange seat by a Japanese company, it said. The purchase price is the highest ever paid for an exchange seat, it added. Daiwa acquired the exchange seat from Andras Research Capital Inc, the Toronto Stock Exchange said. Daiwa now intends to apply for exchange membership, which will be subject to approval by other exchange members and the Ontario Securities Commission, it said. Reuter 29-APR-1987 14:29:39.33 usa tse F f2196reute r f BC-REUTERS--SHA 04-29 0086 REUTERS SHAREHOLDERS APPROVE CHANGES NEW YORK, April 29 – Reuters Holdings PLC said shareholders approved changes in the company’s articles of association to allow it to seek a listing on the Tokyo Stock Exchange. The shareholders also approved a stock option plan tied to performance. The plan allows grants of options up to eight times earnings to a small group of executives, the company said. The shareholders approved the measures at a special meeting following the company’s annual meeting. The amendment allowing the Tokyo listing exempts the from a 15 pct shareholding limit contained in the articles of association. Under rules of the Tokyo exchange, shares in foreign companies owned by Japanese must be registered in the name of Japan Securities Clearing or its nominee, the company said. Reuters, based in London, supplies a wide range of information services to business and news media subscribers. Reuter 29-APR-1987 14:30:41.34 crudenat-gas usa Y f2203reute r f AM-drilling 04-29 0098 OFFSHORE OIL DRILLING MOVING INTO DEEPER WATERS HOUSTON, April 29 – Offshore drilling for oil and gas will be moving into deeper and deeper waters, according to Ronald L. Geer, a consultant with Shell Oil Co. and president of the Marine Technology Society. Geer told a press conference at the Offshore Technology Conference that the technology existed to drill exploratory wells in up to 10,000 feet of water. But he added that as the industry moves more and more to floating systems as opposed to fixed bottom supported structures, the financial risks involved were greater. He said such projects involved six to nine year time frames, and there was a “reluctance for people to stick their necks too far out.” Shell holds the world record for the deepest exploratory well, at 6,900 feet, in the Wilmington Canyon in the Atlantic offshore New Jersey in 1984. The company is currently drilling a 6,700 foot well in the Atwater Valley in the Gulf of Mexico offshore Louisiana. Meanwhile, Brazil’s Petrobras set a world record for underwater production when they brought a well in 1,350 feet of water offshore Rio de Janeiro state into production in January. Geer said the industry was particularly interested in the Green Canyon field offshore Louisiana where a number of companies, including Shell, a unit of Royal Dutch/Shell , Dupont Co’s
    Conoco Inc, USX Corp’s Marathon Oil Co, Standard Oil Co and , are working, many of them testing new deep-water technologies. Of particular interest is the controversial Penrod-72 system being operated by the Dallas-based Hunt brothers who last year placed Placid Oil under bankruptcy court protection in order to avoid foreclosures on its valuable oil properties. They have been seeking the right to use assets to drill oil wells in the Green Canyon through Penrod, arguing that continued development of the project is essential to their ability to get out of their financial crisis. Earlier this month, the Hunts were granted permission by a bankruptcy court to pursue the Green Canyon project. The Penrod system involves a controversial floating production platform with well heads sitting 1,350 feet down on the ocean floor. Some 24 wells will be attached to the wellhead, with one satellite well sitting in a record 1,700 feet of water. Geer said he could not comment on the Penrod project, other than to note that it involves so many new technologies, it might have a problem fitting all the pieces together within a specific time frame. He also said he believed the potential production from the project could be in line with what the Hunt Brothers have projected . The Hunts’ creditor banks have contended the Hunts have exaggerated the potential of the project. “They’re in the ballpark,” he said, of the numbers, adding that he did not have enough information to comment further. Reuter 29-APR-1987 14:49:22.86 nat-gas usa Y f2281reute d f BC-GAS-GROWTH-SEEN-HURT 04-29 0096 GAS GROWTH SEEN HURT BY REGULATORY UNCERTAINTY By NAILENE CHOU WIEST, Reuters NEW YORK, April 29 – Demand for natural gas has failed to grow in proportion to the decline in oil deliveries because of concerns over unresolved regulatory issues in the United States, said industry analysts and gas utility company sources. “Natural gas is not free to compete,” said Larry Makovich, director of utilities service at Data Resources Inc, “problems on pipeline open access and take-or-pay liabilities still weigh heavily on end-users’ decision to switch to natural gas.” A manager with an East Coast gas distribution company, agreed that reluctance among end-users often stemmed from fear of unresolved regulatory issues. “The fact that at the federal level open access is not yet firmly in place threatens to impede free flow of natural gas from producers to consumers,” he said. Michael German, an economist with the American Gas Association, said while a significant amount of gas was now replacing oil in dual-fuel boilers, the progress of expanding the marketshare of gas was slow. First quarter natural gas consumption data is not available until June. In the first three months of 1987, residual fuel demand fell by an average of 55,000 barrels per day, according to the American Petroleum Institute. Natural gas, however, was not able to take full advantage of the decline in oil consumption. AGA’s German said that while industrial consumers were concerned with regulatory issues in their long-range capital investment decisions, in the dual-fuel boiler market relied on spot purchases. “With all the capability of switching (from oil to natural gas) already there, price of the fuel is the only concern,” he said, adding that compared with the same period last year, January natural gas price at burner tip is 16 pct lower for industrial users and 32 pct lower for utilities. German attributed the sluggish performance of natural gas to lower demand in the utility sector as a whole. “March was warmer than normal, which cut down gas consumption not only in home heating but also in electricity generation,” he said. In March, according to API monthly statistics, residual fuel deliveries fell by 13.6 pct to 1.2 mln barrels per day from the same period a year ago. While API specifically mentioned lower natural gas prices had put residual fuel at a price disadvantage among electric utilities and industrial users, industry analysts believed the role of natural gas was over-stated. Makovich of DRI noted much of the decline in oil in the fuel mix was taken up by new nuclear capacity coming on stream in the last few years. Nuclear capacity rose nine pct in 1986, and he projected the same rate of growth for 1987 and 11 pct growth in 1988. In contrast, oil and gas together represented only 15 pct of the fuel mix in 1986 and should decline to 13 pct by 1989, he said. Within this sector, gas share fell to 66 pct in 1986 from 76 pct a year ago due to competition from falling oil prices, he added. But this year, gas was expected to recapture only two pct of the share, Makovich said. Michael German of AGA agreed and said, “Nevertheless, outlet for several hundred billion cubic feet of gas a year is significant in a glutted market.” Reuter 29-APR-1987 14:50:18.29 ship ukiran C G L M T f2283reute u f BC-IRAN’S-NAVY-CHIEF-THR 04-29 0125 IRAN’S NAVY CHIEF THREATENS GULF CLOSURE LONDON, April 29 – Iran’s navy commander warned that Iran would close off the Strait of Hormuz, entrance to the Gulf, if there was any disruption to its shipping or sea-bound trade, Tehran radio said. Commodore Mohammed Hoseyn Malekzadegan told a news conference Iran was ready to maintain security in the Gulf. But he added “If there is any disruption in the movement of our ships and our imports and exports, this waterway would not be left open for any country.” The radio, monitored by the British Broadcasting Corporation, quoted Malekzadegan as saying Iran’s navy now had the most advanced defensive equipment, including long-range shore- to-sea missiles and a range of sea-to-sea missiles. He said it had also expanded operations to cover the whole region “from the most northerly point in the Persian Gulf to the most southerly part of the Sea of Oman.” Referring to U.S. fleet movements in and near the Gulf, Malekzadegan said they had so far not been directed against Iran’s interests. “Their movements have been on the basis of international regulations and in the open seas,” the radio quoted him as saying. “However, if any movement or action is carried out against the interests of the Islamic Republic of Iran in whatever context, we shall decisively confront that move.” Reuter 29-APR-1987 15:04:02.18 canadajapan tose E F f2329reute u f BC-daiwa-securities-plan 04-29 0094 DAIWA SECURITIES TO OPEN CANADIAN HOUSE TORONTO, April 29 – Daiwa Securities Co Ltd, of Tokyo, plans to open a new Canadian company after a June 30 deregulation of the Ontario equity market is implemented, Daiwa Securities general manager for Canada Hajimu Watanabe told Reuters in reply to query. The Toronto Stock Exchange earlier announced Daiwa became the first Japanese company to acquire an exchange seat, paying 361,000 Canadian dlrs, the highest price ever paid. “This is a prelude of our establishment of a new Canadian company,” Watanabe said. Watanabe said Daiwa’s new Canadian brokerage house will concentrate on investment in Canadian stocks by Japanese investors, Canadians acquiring Japanese equity, and government and corporate financing, mainly in the Canadian bond market. “We have now a huge amount of demand on the part of Japanese investors for Canadian stocks,” Watanabe said. “So if we can get membership of the Toronto Stock Exchange, that should support our business very much,” he added. Daiwa’s application for exchange membership is subject to approval by other members and the Ontario Securities Commission. When asked, Watanabe declined to specify how much capital Daiwa, the world’s second largest investment dealer, would invest in its Canadian subsidiary. “It is quite confidential at this moment, but say our main intention is not to create any friction with the Canadian houses,” Watanabe said. He said Daiwa could easily set up its new unit with one billion Canadian dlrs of capital, “but we are starting at quite a moderate figure.” “But small means quite big in Canadian terms,” he added. Daiwa, which established a representative office in Canada in 1980, is ready to open its Canadian house as soon as Ontario security deregulation is implemented on June 30, Watanabe said, adding Daiwa is very pleased with its reception by Canadian regulatory authorities. Watanabe said about 10 pct of Japanese investment in foreign securities goes to Canada, ranking second to the United States which receives about 50 pct. “The Japanese institutional investors feel that it is rather risky to concentrate around the 50 pct” in one country, he said. Japanese institutional investors are trying to diversify to other non-American vehicles, and there are very few candidates that remain safe investment objects, Daiwa’s Watanabe added. Investors in Japan are also feeling it is risky to concentrate in fixed income paper, and are looking more towards investment in paper equity and real estate. “So, investment in Canadian paper, especially Canadian equity, should have a great future,” Watanabe said. Reuter 29-APR-1987 15:08:51.63 crude usajapan F Y f2350reute r f BC-NIPPON-MINING-PLANS-M 04-29 0072 NIPPON MINING PLANS MORE U.S. JOINT VENTURES HOUSTON, April 29 – Nippon Mining Co Ltd president Yukio Kasahara said the state-owned Japanese firm hoped to find additional joint venture partners to explore for U.S. oil reserves. “We have to secure the stability of oil for Japan,” Kasahara told reporters at the World Petroleum Congress. “In the exploration area I think Japanese companies are interested in joint ventures.” Nippon Mining, for example, last September signed an agreement with Dupont Co’s
    Conoco Inc to participate in a 135 mln dlr exploration venture that includes six wells on land and 14 offshore Louisiana. The first joint well drilled is in the Gulf of Mexico’s Green Canyon Block 182, a deepwater lease that Conoco was almost forced to return to the federal government undrilled because of low oil prices. “At this moment we have no success but we will proceed with Conoco. Maybe by the end of the year we will find oil there,” Kasahara said. He said that similar kinds of joint ventures “would be best” for Nippon Mining’s oil exploration efforts in the future. Kasahara also said Nippon Mining was not planning to acquire any U.S. refining or marketing outlets. “Retail sales in general do not interest the Japanese oil companies,” he said. When asked whether he believed world oil prices might strengthen later this year, Kasahara said he expected prices to hold steady at today’s level. “Within this year I think the 18 dlrs a barrel will continue. But next year I don’t know,” he said. “For the refining business, stability is important. Whether the price is 18 dlrs or 20 dlrs, we don’t care.” But encouraging additional upstream efforts may require modestly higher oil prices, Kasahara added. “For exploration I think 20 dlrs a barrel or 22 dlrs a barrel would be reasonable,” he said. The key factor in determining whether the Organization of Petroleum Exporting Countries (OPEC) would raise its 18 dlr a barrel benchmark price is the ongoing war between Iran and Iraq, Kasahara said. Saudi Arabia, he added, was an uncertain element in the OPEC equation because of its need to maintain revenues at the same time the weakened U.S. dollar has reduced oil profits. Nippon Mining, which like all Japanese crude buyers is benefitting from the drop in the value of the dollar, favors continuing to price OPEC crude oil according to U.S. currency regardless of the dollar-yen relationship, Kasahara said. “I hope the dollar would strengthen eventually and continue to improve. I would prefer to see the (OPEC) pricing remain in dollars,” he said. Reuter 29-APR-1987 15:26:09.50 dlrmoney-fx usa reagan V RM f2404reute b f BC-/REAGAN-WARNS-ON-FURT 04-29 0080 REAGAN WARNS ON FURTHER DOLLAR FALL WASHINGTON, April 29 – President Reagan said a further decline in the value of the dollar could be counterproductive. In written answers to questions put by Japan’s Asahi Shimbun newspaper, he noted Treasury Secretary James Baker had said all seven major industrial nations were committed to cooperating in fostering stability of exchange rates. “We all believe a further decline of the dollar could be counterproductive,” Reagan said. Reagan said the best way for the United States to reduce its trade deficit was to export more. He said Japan could make a major contribution to reducing external imbalances and sustaining world economic growth by adopting policies to promote stronger domestic demand in the short-run and, in the long-run, implementing structural reforms to ease Japanese dependence on exports as a source of growth. Reuter 29-APR-1987 15:46:11.10 cotton usabangladesh C G f2446reute u f BC-/BANGLADESH-AUTHORIZE 04-29 0062 BANGLADESH AUTHORIZED TO BUY PL 480 COTTON-USDA WASHINGTON, April 29 – Bangladesh has been authorized to purchase about 32,000 bales (480 lbs) of U.S. cotton under an existing PL 480 agreement, the U.S. Agriculture Department said. It may buy the cotton, valued at 10.0 mln dlrs, between May 6 and August 15, 1987 and ship it by September 15, the department said. Reuter 29-APR-1987 15:56:24.90 nat-gas usa F Y f2464reute u f BC-COASTAL-(CGP),-TRANSA 04-29 0071 COASTAL , TRANSAMERICAN SETTLE GAS DISPUTE HOUSTON, April 29 – Coastal Corp and TransAmerican Natural Gas Corp have proposed settling more than four billion dlrs in lawsuits with an agreement for natural gas sales and transportation between the two Texas firms, a lawyer for Coastal said. The proposed settlement also provided for Coastal to withdraw its reorganization plan in TransAmerican’s bankruptcy proceedings. Thomas McDade, a lawyer for Coastal, said the settlement included a five-year agreement for TransAmerican to transport up to 100 mln cubic feet of natural gas daily from south Texas fields to major pipeline interchanges. TransAmerican will also sell Coastal up to 125 mln cubic feet of gas at spot market prices during the next 10 years. McDade said Coastal would agree to support TransAmerican’s plan of reorganization pending in federal bankruptcy court. TransAmerican, a Houston-based natural gas production and pipeline company, had sued Coastal for 4.1 billion dlrs alleging that Coastal chairman Oscar Wyatt wrongly interfered with TransAmerican’s reorganization efforts. Coastal is one of TransAmerican’s unsecured creditors. Reuter 29-APR-1987 16:17:56.64 silver mexicoperu C G M T f2541reute u f AM-silver 04-29 0086 MEXICO SILVER POLICIES UNCHANGED, OFFICIALS SAY Mexico City, April 29 – Mexico’s policies for silver production and sales have not changed despite Peru’s decision last week to freeze its silver sales, government mining and central bank officials said. The officials also expressed doubt that such a policy change was in the works. Mexico is the world’s leading silver producer and had an output of about 73.9 mln troy ounces last year, according to preliminary government figures. Peru, the world’s second leading silver producer, last week suspended sales of the precious metal in what authorities in Lima said was an effort to protect its price in an unstable market. Since the decision, Peruvian officials have said they will discuss cooperation in the silver market with Mexican officials in scheduled meetings. Last week, Peruvian central bank president Leonel Figueroa and the head of the central bank of Mexico, Miguel Mancera Aguayo met in Mexico City in private talks said aimed at consolidating the upward trend of silver prices. Mexican minister of energy and mines, Alfredo del Mazo, is also expected to meet soon with his Peruvian counterpart, Wilfredo Huayta. However, no Mexican decision has been made to follow the Peruvian example of suspending new silver sales, Mexican officials said. One Mexican mining sector official working closely with the government’s production and sales policy told Reuters there have been no changes in policy handed down by the central bank. “The same policy that has been followed will be continued,” said the official, who asked not to be further identified. A spokesman for the central bank said the bank had no information on any silver policy changes. An energy and mines ministry spokesman and an official in the ministry’s metallurgy department also said no government silver policy change had been made. The mining sector official also said he doubted Mexico would follow Peru’s policy, reasoning that if the two governments had intended to coordinate silver policies, Mexico would have announced a sales suspension along with Peru last week. “It’s very probable a change won’t be made,” the official said. Reuter 29-APR-1987 16:19:24.00 carcasslivestock usa C L f2546reute u f BC-NY-MEAT-CUTTERS-UNION 04-29 0125 NY MEAT CUTTERS UNION REJECTS LATEST OFFER CHICAGO, April 29 – Members of local 174 of the United Food and Commercial Workers (UFCW) union, representing 1,900 meat cutters in New York city, yesterday rejected the latest management offer on a new contract. “Members rejected the latest offer by a 2 to 1 margin,” Bob Wilson, executive officer of local 174 said. But workers have been asked to remain on the job while negotiations continue. The union has been in negotiations with the Greater New York Association of Meat and Poultry Dealers, a group of meat wholesalers and distributors. The contract expired April 26 and the latest management offer sought “give backs” in holiday and sick leave which the membership rejected, Wilson said. Reuter 29-APR-1987 16:29:16.98 usa nyse F f2583reute u f BC-GENRAD--DECLINES 04-29 0089 GENRAD DECLINES COMMENT ON ACTIVITY – NYSE NEW YORK – The New York Stock Exchange said Genrad Inc declined to comment on what the exchange called unusual activity in its stock today. The exchange said that in view of the unusual market activity of Genrad stock it requested the company issue a public statement indicating whether there are any corporate developments. The company said its policy is not to comment on unusual market activity or rumors, the Exchange said. Genrad stock closed at 12-1/2, up 1-1/4. Reuter 29-APR-1987 17:29:50.25 grainwheat bangladesh C G f2773reute u f BC-/BANGLADESH-KEEPS-OPT 04-29 0125 BANGLADESH KEEPS OPTIONS OPEN ON GRAIN PENALTY DHAKA, April 29 – Bangladesh is keeping its options open on whether to seek a penalty from Continental Grain Co of the United States for alleged breach of a wheat shipment contract, but is also asking the company to expedite shipment of the cargo, a senior Food Ministry official said. The official, who declined to be named, said the company under a deal agreed to ship 100,000 tonnes of wheat by April 7 and another 100,000 tonnes by April 16. But it shipped only 126,000 tonnes altogether. The supplier will have to pay penalty at a rate of two dlrs per tonne for every delayed day according to a document signed by both the Food Ministry and the suppliers’ agent in Dhaka, he told Reuters. “If they arrange quick shipment, we may take a lenient view,” the official said. The issue is expected to be decided at a cabinet meeting scheduled for next Sunday, he added. A pro-government Bengali daily “Dainik Janata” reported today that Continental Grain could face a penalty of 200 mln taka (6.49 mln dlrs) for alleged failure to maintain shipment schedule. The local agent of Continental Grain, Shafi Ahmed Choudhury, told Reuters he applied to the Bangladesh government for an extension of the shipment period because loading of wheat at London was being delayed due to bad weather and a faulty elevator at a grain silo. But the government has not yet granted the extension, he said. Choudhury said the freight rate and price of wheat had gone up after the deal was signed, which resulted in a financial loss to the company. He said he was not “officially informed” of the move to impose a penalty, although he was “not totally unaware of it.” Continental Grain officials in New York declined to comment. Reuter 29-APR-1987 17:36:38.99 crudegasfuel usa Y f2807reute u f BC-RECENT-U.S.-OIL-DEMAN 04-29 0106 RECENT U.S. OIL DEMAND UP 0.6 PCT FROM YEAR AGO WASHINGTON, April 29 – U.S. oil demand as measured by products supplied rose 0.6 pct in the four weeks ended April 17 to 15.91 mln barrels per day (bpd) from 15.82 mln in the same period a year ago, the Energy Information Administration (EIA) said. In its weekly petroleum status report, the Energy Department agency said distillate demand was off 10.2 pct in the period to 2.67 mln bpd from 2.98 mln a year earlier. Gasoline demand averaged 6.94 mln bpd, off 1.8 pct from 7.06 mln last year, while residual fuel demand was 1.17 mln bpd, off 12.9 pct from 1.34 mln, the EIA said. Domestic crude oil production was estimated at 8.36 mln bpd, down 5.9 pct from 8.88 mln a year ago, and gross daily crude imports (excluding those for the SPR) averaged 3.70 mln bpd, up 5.2 pct from 3.52 mln, the EIA said. Refinery crude runs in the four weeks were 12.58 mln bpd, up 2.0 pct from 12.33 mln a year earlier, it said. In the first 113 days of the year, refinery runs were up 2.3 pct to an average 12.36 mln bpd from 12.09 mln in the year-ago period, the EIA said. Year-to-date demand for all petroleum products averaged 16.26 mln bpd, up 1.6 pct from 15.99 mln in 1986, it said. So far this year, distillate demand fell 3.1 pct to 3.11 mln bpd from 3.21 mln in 1986, gasoline demand was 6.71 mln bpd, off 0.3 pct from 6.73 mln, and residual fuel demand fell 6.2 pct to 1.32 mln bpd from 1.40 mln, the EIA said. Year-to-date domestic crude output was estimated at 8.38 mln bpd, off 7.4 pct from 9.05 mln a year ago, while gross crude imports averaged 3.86 mln bpd, up 21.1 pct from 3.19 mln, it said. Reuter 29-APR-1987 17:43:41.84 dlrmoney-fx panamausa RM A f2830reute r f AM-centam-economy 04-29 0087 SENIOR ECONOMIST PREDICTS 30 PCT FALL IN DOLLAR panama city, april 29 – a senior economist predicted the u.s. dollar would decline another 30 pct by year-end, but said he foresees no significant change in u.s. interest rates. “the market recognizes another 30 pct dollar depreciation is necessary,” said rudiger dornbush of the massachusetts institute of technology. he said the only thing preventing the dollar from dropping far below current levels was intervention by central banks in definace of market forces. he said artifical support of the dollar had put the world’s financial markets in an “excessively volatile” position, however, and predicted that within about four months “it is going to be very difficult to keep the dollar in place.” the forecasts, dornbush added, are for “a steady deterioration from now on.” dornbush, a university of chicago-educated economist, works with the national bureau of economic research as well as mit. he spoke here at the invitation of panama’s national banking association, sponsor of a three-day international banking convention that got under way yesterday. dornbush discarded fears of soaring u.s. interest rates because of the declining dollar. “the u.s. cannot raise interest rates. if it raises interest rates all the debts will bounce in the foreign sector … and all over latin america,” he said. Reuter 29-APR-1987 17:49:13.50 crude usachina Y f2839reute u f BC-CHINESE-OFFICIALS-SAY 04-29 0089 CHINESE OFFICIALS SAY DRILLING OUTLOOK BRIGHT By KAREN YATES, Reuters HOUSTON, April 29 – China’s oil drilling industry is one of the few bright spots in the international oilpatch with about 1,000 rigs currently working and annual increases of 80-100 expected through the end of the century, a Chinese petroleum official said. “In China, production concentrates on the domestic market, and does not depend on the international price of oil,” Zhai Guang Ming, a director of the Chinese Ministry of Petroleum, told Reuters. Chinese oil sold within the nation’s borders is priced at about one-third the 18 dlr a barrel benchmark price established by the Organization of Petroleum Exporting Countries, Zhai said in an interview at the World Petroleum Congress. The optimism in China is in sharp contrast to the United States where weak oil prices have prompted a steep fall in the number of active rigs from a 1981 peak of 4,500 to only 765 last week according to the latest Baker Hughes Co rig count. At this time, China actually has more rigs in operation than any other country in the world, said Xianglin Hou, another member of the 20-man Chinese delegation at the Houston meeting. But this does not mean good news for the sagging oilfield equipment industry in the rest of the world, said Bryan Walman, international sales manager for Reed Tool Co in Houston. Walman said more than 90 pct of China’s drilling activity is on land and under the control of the Chinese government which requires local manufacture of drilling equipment. But U.S. and other western nations do provide equipment for China’s fledgling offshore projects as well as participate in the actual drilling, he said. Amoco Corp , for example, has reported a discovery in 1,000 feet of water in the South China Sea. “We’re encouraged,” said Alfred Munk, manager of Amoco’s foreign affairs, “but we need substantial reserves before we can do commercial production in a remote area like that.” Zhai estimated that current Chinese oil production of 130 mln tonnes a year should rise to total 200 mln tonnes annually by the year 2,000. Chinese crude reserves total 23.6 billion barrels, with ultimate resources estimated at 69.3 billion barrels. Reuter 29-APR-1987 18:20:24.43 crudenat-gas usa F Y f2875reute r f BC-/U.S.-INTERIOR-SECRET 04-29 0098 U.S. INTERIOR SECRETARY OPPOSES OIL IMPORT FEE LOS ANGELES, April 29 – U.S. Interior Secretary Donald Hodel said he does not support an oil import fee as a means to stimulate domestic oil and gas production. “I am an advocate for incentives for exploration,” Hodel said, but added, “I do not favor an oil import fee.” “It would inject the federal government so deeply back in to the process, we would never get the government out again, and I think that would be in the long term disinterest of the nation,” Hodel said in an address to a group of local business executives. Earlier today, Congressmen from oil producing states introduced a bill that would impose a fee on oil imports. Hodel said he supports drilling incentives, such as repeal of the Windfall Profits Tax and Fuel Use Act and deregulation of natural gas. The secretary also said oil and gas exploration offshore California and in the Artic National Wildlife Refuge is necessary to prevent the U.S. from becoming too dependent on foreign supplies of oil for its energy needs. Failure to approve such exploration, Hodel said, would lead to greater U.S. dependence on foreign sources of oil. “In the next two to five years, no matter what we do today, we are very likely to find the U.S becoming 50 pct or more dependent on imports for its oil requirements,” Hodel said. If OPEC were to raise oil prices sharply, Congress would likely act to have the federal government fix gasoline prices and allocate supplies, Hodel said. “If they allocate supplies you and I, in the same two-to-five year time frame, could well find ourselves sitting back in gas lines,” Hodel said. Exploration for oil and gas in offshore areas and in the Arctic National Wildlife Refuge would not jeopardize environmentally sensitive areas, Hodel said. “We are convinced we can meet and resolve every environmental concern that is raised,” Hodel said. Reuter 29-APR-1987 18:26:40.54 crude usa F E Y f2882reute u f BC-FTC 04-29 0109 FTC FINDS 17 BILLION DLR COST IN OIL IMPORT FEE WASHINGTON, April 29 – An oil import fee could cost consumers nearly 17 billion dlrs a year and undermine long-term U.S. energy security by leading to a quicker depletion of domestic reserves, a Federal Trade Commission study said. The study by the FTC’s bureau of economics found that a five dlr a barrel tariff on crude oil and gasoline oil imports would increase costs to consumers by 14 to 16.7 billion dlrs a year. After weighing the benefits of such a tariff against the costs, the study found a five dlr a barrel import fee would have a net cost to the economy of 3.6 billion dlrs a year. Several oil import fee proposals ranging from two to 10 dlrs a barrel have been made in Congress in an effort to cut the federal budget deficit and maintain the momentum for energy conservation programs, which have been hurt by cheaper oil. But by making foreign oil more expensive, the tariffs would reduce oil imports and force greater consumption of domestic oil, which would deplete U.S. reserves faster, the study found. “Any attempt to increase our energy security by limiting imports will actually reduce our long-run energy security by speeding the depletion of domestic reserves,” the study said. The five dlr a barrel tariff would also cut domestic petroleum refiners’ profits by 7.5 to 10 billion dlrs a year, increase domestic crude oil producers’ profits by about 13 billion dlrs a year and raise government revenues by 6.7 to 8.2 billion dlrs a year, the FTC said. Under the Reagan administration, the FTC has consistently opposed government regulation of the oil industry at the state and federal levels. “This study backs up my belief that government regulation and interference with competition hurt both the market and consumers,” FTC Chairman Daniel Oliver said in a statement. Reuter 29-APR-1987 19:02:59.88 cpi spain RM f2933reute r f PM-SPAIN 04-29 0078 GONZALEZ PLEDGES FIRM ANTI-INFLATION BATTLE MADRID, April 29 – Prime Minister Felipe Gonzalez, facing an increasingly violent wave of labour unrest, has told Spaniards he is determined to bring down inflation even if it means slower growth and fewer votes for his Socialist Party. In a 50-minute television interview broadcast live, Gonzalez criticized widespread protests which have blown up less than a year after he won a resounding general election victory. “It seems so important to us that sometimes I ask myself ‘Why don’t they understand when I explain this?'” Gonzalez said of the anti-inflation strategy designed to modernise Spain and make its economy competitive within the European Community. Gonzalez said the illegal work-to-rule at the airline was grounding more and more planes and producing a backlog of maintenance work which would not be cleared until the summer. “The comfortable thing to do would be to give in and have no problems,” the 44-year-old prime minister said, adding that nothing could justify the use of violence in a democracy. Gonzalez said he still believed it was possible to reduce inflation to five pct this year from the current rate of 6.3 pct, even though other government officials have admitted the target may now be beyond reach. Reuter 29-APR-1987 19:22:52.24 crude usa F Y f2957reute r f AM-offshore 04-29 0104 OFFSHORE OIL INDUSTRY WAITING FOR TURNAROUND By PETER ELSWORTH, Reuters HOUSTON, April 29 – The depressed offshore oil industry is still waiting for a turnaround despite increasing optimisim that world oil prices have stabilized around 18 dlrs a barrel. “The perception of a turnaround comes from the change in prices,” Charles Siess Jr, vice chairman of Marathon Manufacturing Co, a subsidiary of USX Corp , and chairman of the National Ocean Industries Association, said in a press briefing at the Offshore Technology Conference. “From the level of industry activity, there is no turnaround,” he added. John Huff, president of Oceaneering International Inc , was slightly more optimistic. “We are through the low part of the cycle — there’s an increase in interest for projects,” he said, adding, “whether it comes to orders, who knows?” The oil industry is recovering from last year’s dramatic fall in oil prices, from 30 dlrs a barrel in late 1985 to under 10 dlrs in mid-1986. Particularly hard hit were the service companies that provide the oil rigs with keys products, such as pipe and tools. Earlier in the week, Secretary the Interior Donald Hodel announced — at the Conference — the government’s new five-year offshore oil and gas leasing program, proposing 38 sales, including tracts in the Gulf Coast, offshore California and in the Arctic National Wildlife Refuge in Alaska. For the most part, the industry was disappointed with the plan, with most arguing that additional areas should have been included. At the same time, most were supportive of Hodel. Environmental concerns, particularly in California, had lobbied strenuously against offshore oil development. “The (Outer Continental Shelf) leasing program fails to take into account the environmental performance of the oil industry,” said Bill Bradford, executive vice president of Dresser Industries and president of the Petroleum Equipment Suppliers Association. Huff quoted National Academy of Science figures showing offshore rigs contributed only two pct of petroleum pollution in the oceans, while tankers were responsible for 47 pct and municiple dumping 31 pct. “The OCS is the keystone of the domestic reserve development program,” said Siess, adding that with oil imports rising to 50 pct of U.S. oil consumption, the issue was one of national security. Looking ahead, Constantine S. Nicandros, president of Dupont’s
    Conoco Inc subsidiary, said, “We are more likely to see a five pct increase in spending this year than the widely-forecast five pct decrease.” Other optimistic signs include the recent sale in New Orleans of offshore tracts in the Gulf of Mexico which raised 290 mln dlrs against an expected 90 mln. However, Ronald Tappmeyer, vice chairman of Reading and Bates Drilling Co , said the oversupply of rigs would continue for the near-term, but added demand for technologically advanced rigs would increase in the 1990s. Much of that demand is seen coming from the move into icreasingly deeper waters, with the projects becoming ever more expensive and needing five to ten years to develop. Over 50 pct of the sales in New Orleans were for deep water tracts. Ronald L. Geer, a consultant with Shell Oil Co, a subsidiary of Royal Dutch/Shell , and president of the Marine Technology Society, said the technology existed to drill exploratory wells in up to 10,000 feet of water. Geer said the industry was particularly interested in the Green Canyon field offshore Louisiana where a number of companies, including Shell, Conoco, USX Corp’s Marathon Oil Co, Standard Oil Co and Placid Oil Co, are working, many of them testing new deep-water technologies involving floating platforms. Reuter 29-APR-1987 22:38:50.43 cpi venezuela RM f3033reute u f BC-VENEZUELA-APPROVES-WA 04-29 0110 VENEZUELA APPROVES WAGE INCREASES, PRICE CONTROLS CARACAS, April 29 – Venezuelan president Jaime Lusinchi approved a general wage increase in the form of bonuses ranging from 20 to 30 pct and a 120-day price freeze on a basket of basic consumer goods. Both measures, which take effect on May 1, were approved by the cabinet. They will be announced to the nation by Lusinchi in a televised address tonight but the text of the decrees was released this afternoon. Businessmen, who met Lusinchi, opposed the pay rise, saying it will fuel inflation. The inflation rate was 11.5 pct in 1986 and private economists say it will be 25 to 30 pct in 1987. The central bank said first quarter inflation was 6.3 pct. The wage increase for public and private sector employees will be 30 pct on salaries of up to 2,100 bolivars a month. For salaries of from 2,101 to 6,100 bolivars 25 pct and for those of 6,101 to 20,000 bolivars 20 pct. The measures were taken in response to a request from the Venezuelan confederation CTV for an increase to offset the loss in the purchasing power of workers’ salaries. It estimated the loss at 40 pct. The general wage rise is the third granted by Lusinchi since his government took office in February 1984. The wage increases are a bonus and will not be considered in calculating benefits or severance pay, the decree said. At the same time, Lusinchi declared a freeze on lay-offs and firings for the next 120 days. The price freeze applies to a group of 120 foods and other consumer goods declared to be “of primary necessity.” It does not apply to prices charged by agricultural producers or to goods for which the price is falling. The decree establishes fines of between 1,000 and 500,000 bolivars for merchants who violate the price control measure. REUTER 1-JUN-1987 00:08:28.39 usa F f0013reute u f BC-HOSPITAL-CORP--G 06-01 0119 HOSPITAL CORP GETS FUNDS FOR RESTRUCTURING NASHVILLE, TENN., May 31 – Hospital Corp of America said it received financing commitments of about 1.9 billion dlrs to pay for its previously announced reorganization, which was approved by the company’s board of directors today. Under the reorganization, Hospital Corp will spin off over 100 hospitals to a new, independent firm for 1.8 billion dlrs in cash and preferred stock and warrants in the new company, which will be owned by an employee stock ownership plan, ESOP. Hospital Corp said that Drexel Burnham Lambert Inc has agreed to provide bridge financing, or to find buyers for debt of the new company, for an amount of up to 956 mln dlrs. This financing will comprise 270 mln dlrs of senior unsecured ESOP debt and 686 mln dlrs of unsecured subordinated financing for the new company, Hospital Corp said. Wells Fargo Bank NA has agreed to syndicate up to 940 mln dlrs of secured bank financing, comprising a 400 mln dlr revolving credit a separate 540 mln dlr term loan. Wells Fargo has committed itself to fund an aggregate 400 mln dlrs of these loans. Hospital Corp said it will not guarantee any of the debt. The transaction will cut the number of hospitals the company owns to about 125 from more than 230. It is expected to be completed in the third quarter of the year. REUTER 1-JUN-1987 00:24:47.47 ship uaeiran RM V f0021reute u f BC-IRAN-SAYS-IT-WILL-COM 06-01 0105 IRAN SAYS IT WILL COMBAT GULF INTERVENTION ABU DHABI, June 1 – Iranian foreign minister Ali Akbar Velayati warned that Iran would combat any superpower intervention in the Gulf. “Iran, which is the most powerful (country) in the Gulf… Will not allow the superpowers or any other foreign forces to interfere in the region,” he said. Velayati, visiting the United Arab Emirates on the first leg of a Gulf tour, told reporters Iran had the “capabilities and means” to prevent any interference. President Reagan has pledged to keep the Gulf sealanes open and to protect Kuwaiti tankers from possible Iranian attack. REUTER 1-JUN-1987 00:26:05.57 sri-lanka RM f0022reute u f BC-SRI-LANKA-OFFERS-250 06-01 0032 SRI LANKA OFFERS 250 MLN RUPEES IN T-BILLS COLOMBO, June 1 – The Central Bank said it will offer offer 250 mln rupees worth of three-month treasury bills in a tender closing on June 4. REUTER 1-JUN-1987 00:28:04.91 japan RM AI f0024reute u f BC-JAPAN-VARIABLE-LIFE-I 06-01 0103 JAPAN VARIABLE LIFE INSURANCE EARNS HIGH RETURNS By Yoshiko Mori, Reuters TOKYO, June 1 – Companies offering variable life insurance policies, introduced in Japan in October, look set to report sparkling results when they report on fund performance later this month, fund managers at major insurance companies said. The managers told Reuters some insurers showed variable life returns topping 50 pct on an annual basis in the five months to March 31. Industry sources said all 17 Japanese and U.S. Insurers offering variable life policies here have earned returns of more than 10 pct on their investments. Returns on variable life policies, which are paid when policies are surrendered, depend on the performance of funds run by insurers. Managers said strong results are due to the loading of funds into the buoyant Tokyo stock market and into convertible bonds and attractive short-term instruments such as large yen time deposits. Japanese share prices rose 30 pct in absolute terms between November 1 and March 31. Key bond yields fell to around four pct from five pct in the same period. “Variable life avails itself of the times and clients are likely to be attracted after the impressive results to be made public in early June,” Ichirou Hayashi, general manager of Nippon Life Insurance Co Ltd’s fund management office said. The Finance Ministry does not allow disclosure of insurance company figures for the year ended March 31 until early June. Nippon Life, the largest Japanese insurer, had about 50,000 investors in variable life by end-March while the three U.S. Firms which offer variable life here have a total of some 7,550 investors, fund managers said. Equitable Life Insurance Co Ltd, American Life Insurance Co Ltd and Sony Prudential Life Insurance Co, which is a joint venture between Sony Corp and Prudential Life Assurance of the U.S., Are the three U.S. Insurers offering variable life here. “Although (variable life) appears to be a short-term financial instrument with death benefit, its first priority is to raise as much cash value as it can over the long period,” said Ichiro Kono, managing director and chief actuary of Sony Prudential. Variable life guarantees a fixed death benefit. “Variables are also attractive to executives of companies who wish to receive them as retirement funds with options for settlement in annuities,” Kono said. Nippon Life’s Hayashi said sales of variable life were shaping up well as interest rate consciousness grows. Insurance managers said they expect variables to survive any credit market collapse since the funds should be able to react to interest rate fluctuations more quickly than huge general insurance accounts, assuming fund managers grow more sophisticated in global fund and risk management. Japanese life insurers have cut dividends paid to holders of regular insurance by as much as 0.45 of a percentage point since April 1 due to declining domestic interest rates. Fund managers said regular insurance funds are invested more conservatively with decisions based on long-term strategies. Major life insurers are expected to report huge exchange losses, estimated at over 2,000 billion yen, on foreign investment for 1986/87, they said. “Asset mix is more of a concept for larger funds, not for our variables, especially after the huge currency losses made in the last fiscal year,” Hayashi of Nippon Life said. Industry analysts said shifts of funds ahead of tax changes due in October are helping boost the demand for variable life. The government is expected to impose a 20 pct withholding tax on interest from certain instruments including single premium endowment insurance, much of which is maturing now, but variable life will be free of such a tax. But Sony Prudential’s Kono said, “A large shift of funds from single premium endowment to variable life is unlikely, because investors in the former are more short-term return-minded, while the latter doesn’t guarantee short-term cash value.” Sony Prudential and Equitable Life each have three separate variable life accounts. Equitable’s funds specialise in Japanese stocks, U.S. Stocks and money market instruments while Sony’s covers bonds, stocks and general investment. Japanese insurers have only one variable account each. The Finance Ministry allowed sales of variable life endowment with terms over 10-years and whole life insurance from October 1 last year but allowed single premiums only on the latter. REUTER 1-JUN-1987 00:30:09.25 F f0027reute f f BC-Toshiba-group-net-34. 06-01 0012 ******Toshiba group net 34.18 billion yen (59.44 billion) year to March 31 Blah blah blah. 1-JUN-1987 00:30:28.91 earn japan F f0028reute b f BC-TOSHIBA-CORP- 06-01 0045 TOSHIBA CORP YEAR ENDED MARCH 31 TOKYO, June 1 – Group shr 11.86 yen vs 19.24 Net 34.18 billion vs 59.44 billion Pretax 78.02 billion vs 130.52 billion Operating 51.58 billion vs 121.50 billion Sales 3,308 billion vs 3,373 billion REUTER 1-JUN-1987 00:32:25.42 gasfuel singapore Y f0033reute u f BC-SINGAPORE-OIL-COMPANI 06-01 0110 SINGAPORE OIL COMPANIES TO SET OWN PUMP PRICES SINGAPORE, June 1 – Singapore oil companies can set their own petrol and diesel prices at the pump from today subject to ceilings determined by their individual wholesale prices, The Ministry of Trade and Industry said. The ministry previously revised pump prices and announced the changes for the oil companies. Lead content of petrol is further cut to 0.15 gm/litre from 0.4 gm from today. Pump prices of the lower lead petrol grades are expected to be announced soon by the oil companies which have said wholesale prices are between 1.3 cents/litre to 3.2 cents higher than previous grades. REUTER 1-JUN-1987 00:35:44.06 cpi peru RM f0038reute u f BC-PERU-CONSUMER-PRICES 06-01 0078 PERU CONSUMER PRICES RISE 5.9 PCT IN MAY LIMA, May 31 – Peru’s consumer price index rose 5.9 pct in May to 15,706.5 (base 1979) compared to 6.6 pct in April and 3.3 pct in May 1986, the National Statistics Institute said. It said accumulated inflation for the first five months of this year was 33.8 pct against 24.1 pct for the same period in 1986. Inflation for the year ending May 1987 was 75.7 pct compared to 76.8 pct for the year ending May 1986. REUTER 1-JUN-1987 00:36:14.37 grainorangesugar china G f0039reute u f BC-CHINA-PROVINCE-BECOME 06-01 0113 CHINA PROVINCE BECOMES GRAIN IMPORTER PEKING, June 1 – The south China province of Guangdong is importing millions of tonnes of grain a year from overseas and other parts of China because farmers have switched from grain to more profitable crops, the Peking Review magazine said. The official magazine said the province’s grain area fell to 4.33 mln hectares in 1985 from 5.7 mln in 1978 out of a total farmland area of 7.4 mln hectares. Farmers have switched to cash crops such as sugarcane, bananas, oranges, papaya and freshwater fish-farming, in part to supply major consumer markets in Hong Kong and Macao, the magazine said. It gave no 1986 area figures. The magazine said China aims to keep 80 pct of national farmland under grain, 10 pct under cash crops and 10 pct under other crops, although the ratio will vary from place to place. It said primitive cultivation methods, labour-intensity and low productivity make grain the least profitable farm commodity. Farmers in one central region of China can from 0.1 hectare earn 2,250 yuan a year from vegetables, 375-450 yuan from cotton or 225 yuan from grain, it added. It said consumer prices for foodgrain can be adjusted only gradually as part of a reform of the entire pricing system. REUTER 1-JUN-1987 00:52:31.57 uk ec F AI f0049reute u f BC-EC-URGED-TO-ACT-QUICK 06-01 0109 EC URGED TO ACT QUICKLY ON EUROPEAN AIRFARE CUTS LONDON, June 1 – The European Commission should make urgent and concrete proposals to break the deadlock over moves to cut sky-high European airfares, an independent report said. The report by the Institute of Economic Affairs (IEA) said costs, fares and profits on international services within Europe are the highest in the world although European airlines are less efficient and not perceptibly safer than their cheaper U.S. Equivalents. “The European airlines protect their position through the secrecy they maintain over the costs and profits of any group of services,” the report said. The airlines also protect themselves through “the ferocity with which (they) resist any relaxation of the monopolistic practices which protect their profits,” the report said. Britain, a strong advocate of deregulation, has been trying to push measures to introduce greater competition among Europe’s airlines but negotiations foundered at the end of 1986 over discount and deep discount fares. The IEA report said European governments and the Commission, the EC executive authority, had been extraordinarily lax about the airlines’ secretiveness, showing “a lack of concern for the interests of the traveller.” REUTER 1-JUN-1987 01:17:35.61 interest RM AI f0062reute f f BC-Bundesbank’s-Schlesin 06-01 0014 ******Bundesbank’s Schlesinger says no plan to cut discount rate-Nihon Keizai newspaper Blah blah blah. 1-JUN-1987 01:19:26.93 gas singapore Y f0063reute u f BC-SINGAPORE-PETROLEUM-C 06-01 0107 SINGAPORE PETROLEUM CO REVISES PETROL PUMP PRICES SINGAPORE, June 1 – Singapore Petroleum Co Pte Ltd will revise pump prices of petrol from June 2, an official said. Grade 97 octane with 0.15 gm/lead will be 96.8 cents/litre against 94 cents previously for 0.4 gm lead. Grade 92 octane will be 90.6 cents against 87.6 previously. SPC’s price revision follows the Ministry of Trade and Industry’s move to liberalise petrol pricing by allowing oil companies to set their own pump prices. New grades of petrol with lower lead content are sold in Singapore from today in line with the Ministry of Environment’s regulations. REUTER 1-JUN-1987 01:19:37.19 RM f0064reute u f BC-KOREA-ELECTRIC-POWER 06-01 0067 KOREA ELECTRIC POWER PLANS FIRST EUROYEN BOND SEOUL, June 1 – Korea Electric Power Corp plans to issue its first euroyen bond, a 7.5 billion yen issue with six-year maturity carrying a coupon of less than five pct, company officials said. They said the bond would be launched in London later this month with Daiwa Securities Co Ltd as lead manager. The officials gave no further details. REUTER 1-JUN-1987 01:25:56.05 interest japan RM AI f0069reute b f BC-BUNDESBANK-REPORTED-T 06-01 0088 BUNDESBANK REPORTED TO HAVE NO PLAN FOR RATE CUT TOKYO, June 1 – Bundesbank Deputy President Helmut Schlesinger said the West German central bank had no plan to cut its three pct discount rate, Nihon Keizai newspaper reported. The financial daily quoted Schlesinger as saying in an interview that the bank would try to maintain current interest rate levels for the time being. He also told the newspaper he saw no need for large-scale intervention in the foreign exchange market because exchange rates are stable. Earlier, Schlesinger told a press conference that the Bundesbank would continue its policy of maintaining short-term interest rates at a low level for currency stability. He also said he was satisfied with the current dollar/mark exchange rate but added that he was not certain if it was ideal for the West German economy. REUTER 1-JUN-1987 01:33:45.10 trade south-koreausa RM AI f0074reute u f BC-SEOUL-ANNOUNCES-MORE 06-01 0097 SEOUL ANNOUNCES MORE TARIFF CUTS FOR U.S. SEOUL, June 1 – South Korea will cut import taxes on 50 items, including construction equipment, photographic film, cigarettes and pipe tobacco, to help reduce its trade surplus with the United States, the finance ministry said. The tariff cuts, of between five and 30 percentage points, take effect on July 1. This brings to 157 the number of goods on which import taxes have been cut this year, a ministry official said. The 157 are among about 290 items on which Washington has asked Seoul to lower tariffs, he added. Today’s announcement follows Saturday’s removal of import curbs on 170 products. For 46 of those products, the U.S. Had had sought free access to the South Korean market. “This is in line with the government’s policy to limit our trade surplus with the United States to help reduce trade friction between the two countries,” the official said. South Korea’s trade surplus with the U.S. Rose to 7.3 billion dlrs in 1986 from 4.3 billion in 1985. Officials said the surplus was expected to widen further in 1987 but Seoul would try to hold it below eight billion dlrs. The finance ministry said tariffs would be cut later this month on a further 53 items, including acrylic yarn and ethylene, by an average 7.7 percentage points in order to check inflation. The officials said the tariff cuts would contribute to holding wholesale and consumer price rises at less than three pct this year. REUTER 1-JUN-1987 02:05:45.88 mexico RM AI f0092reute u f BC-LATIN-DEBTORS-MAKE-NE 06-01 0094 LATIN DEBTORS MAKE NEW PUSH FOR DEBT RELIEF By Keith Grant, Reuters GUANAJUATO, Mexico, June 1 – Rising interest rates and protectionist trade policies had prompted a new push by Latin American nations to win debt relief, regional foreign and finance ministry officials said here. Officials of the Cartagena group of 11 debtor nations met here this week to draw up new proposals in reaction to what they called a deteriorating world panorama, and Citicorp’s decision to create reserves against third world loans. (SEE ECRA FOR SPOTLIGHT HEADLINES) “We are looking at trade, interest rates and financial flows…..In order to put forward a basis for some permanent solutions,” Mexico’s public credit director Angel Gurria said. Recent developments have led to moves for a summit of Latin American presidents and debate on new solutions. Ideas include schemes to link debt payments to trade, and proposals for stable interest rates. The latter was proposed in a letter this week from Cartagena to G-7 leaders who are due to attend a summit in Venice this month. Another idea is to include debt under Gatt negotiations, but Cartegena ministers have yet to endorse any proposals. Speaking earlier in New York, Uruguay’s Foreign Minister and Cartagena group chairman Enrique Iglesias said Citicorp’s decision could discourage new lending. But it might help Cartagena’s bid to have old and new debt treated separately. The Cartagena group, which has not met at ministerial level for over a year, wants to repay debt contracted before the debt crisis at the low interest rates prevailing in the 1970s. It would pay new loans at current market rates. “Many countries fear that what they have gained in months of arduous debt negotiations they can lose at a stroke with a one point rise in interest rates,” one official here said. “The new increase in interest rates has come precisely when we thought they had still not come down enough,” Iglesias said. Latin American officials are also concerned that varying interest spreads granted to different debtor nations could generate discord, as with the Philippines’ recent protest at being given less favourable terms than Argentina. There has been speculation Venezuela would demand a cut in its 7/8 pct spread, but public finances director Jorge Marcano said here there were no plans to renegotiate terms. This week’s meeting came after three Latin American presidents meeting in Montevideo called for stable interest rates on the region’s 380 billion dlr foreign debt. It was called to review developments since the last ministerial meeting in February 1986 and to think up new ideas. Since the last ministerial meeting there have been some advances, such as Mexico’s growth-oriented 77 billion dlr loan and refinancing package agreed last September. But there have also been setbacks, like Brazil’s payments moratorium. The loans expected in the Baker plan have not materialized and debtors have been forced to browbeat reluctant banks. “We have clearly stretched the restructuring process to its limits and and the question is now where do we go from here?” a senior Mexican foreign ministry official said. Existing debt strategy has been based on nursing debtor economies back to a position where they can again service their debts and qualify for new loans. But after five years of economic adjustment, Latin American debtors are currently unable to raise voluntary credits, with the exception of Colombia. Only Venezuela is paying back principal. Most countries have no prospect of paying their debts in the foreseeable future. Citicorp has made clear its decision to move three billion dlrs to reserves does not mean it is writing-off the loans. Latin American officials here said Citicorp’s move would probably boost trading of discounted third world debt in the secondary market, implicitly downvaluing the amount owed. But they said it might make new lending even more remote. Discounted debt can be bought by foreign investors through debt-equity schemes that generate new resources for debtor economies. Chile and Mexico are currently front-runners in this field, but most Latin American officials see these schemes as limited and no panacea for the overall problem. Most Latin officials set greater store on building up export income than on debt-equity schemes. Exports hit 97.7 billion dlrs in 1984, cutting the region’s debt service ratio to 36 pct, but they fell to 78.3 billion last year. So, even though interest rates had dropped the ratio hardly changed. The Cartagena group has called for the debt-trade link to be recognized before, but has not made detailed proposals. Officials said initiatives discussed here would be submitted to foreign and finance ministers of the 11 nations, before IMF and World Bank annual meetings later this year. REUTER 1-JUN-1987 02:13:20.80 RM f0102reute f f BC-TOKYO-STOCK-INDEX-RIS 06-01 0013 ******TOKYO STOCK INDEX RISES 91.19 POINTS TO RECORD CLOSING 24,992.78 – BROKERS Blah blah blah. 1-JUN-1987 02:19:36.44 trade usa RM V f0106reute u f BC-U.S.-STUDY-SAYS-TARIF 06-01 0102 U.S. STUDY SAYS TARIFFS AND QUOTAS COULD BACKFIRE WASHINGTON, June 1 – The use of tariffs and quotas to reduce the flow of foreign goods into the United States will do little to cut the nation’s swelling trade deficit, a government study said. In fact, the Federal Trade Commission (FTC) report said, such protectionist policies could make U.S. Products less competitive in the world marketplace by raising the cost of imported products that are re-exported in different forms. “Such policies are much more likely to hurt, rather than help, the productive capabilities of the U.S. Economy,” it said. The 218-page report, written by FTC economists John Hilke and Philip Nelson, blamed the rising trade shortfall, which climbed to a record 166.3 billion dlrs last year, on shifting currency exchange rates and growing U.S consumer demand. Other factors commonly blamed for the deficit, such as foreign trade practices, deteriorating U.S. Industrial competitiveness, high labour costs and government restrictions on mergers, added little to the problem, it said. “Although each industry’s competitiveness affects the level of imports and exports in that industry, in general we find that there have been no significant industry-specific changes affecting competitiveness that would explain the increase in the overall trade deficit,” the study said. “To the extent any government action is needed to deal with the trade deficits, policies should focus on economy-wide phenomena such as exchange rates and relative economic growth,” the FTC study said. Supporting its conclusion that broad-based economic shifts were the cause of the increase in the trade deficit, the report said it found that nearly all U.S. Industries lost some domestic market share to foreign competitors in the 1980s. It also said it found a “fairly direct relationship” between the increased trade deficit and the influence of shifting currency exchange rates, U.S. Economic growth and domestic demand for goods and services, which has outpaced foreign consumer demand. The study examined seven factors which have been commonly blamed for the trade deficit: foreign government subsidies and trade barriers to protect foreign industries, a lack of investment in U.S. Industry, declining research and development in U.S. Industry, high labour costs, union work rules, the oil prices rises of the 1970s and U.S. Antitrust regulations. In each case, the study found little or no evidence that the factor had any impact on the trade deficit. REUTER 1-JUN-1987 02:26:26.39 japanusaussr F f0113reute u f BC-TOSHIBA-HOPES-EXPORTS 06-01 0089 TOSHIBA HOPES EXPORTS TO U.S. NOT HURT TOKYO, June 1 – A senior Toshiba Corp executive said he hoped the alleged illegal export of high technology equipment to the Soviet Union by a Toshiba subsidiary would not hurt the parent company’s exports to the U.S. Toshiba’s 50-pct subsidiary “is a completely independent company with independent management,” Toshiba Corp senior vice-president Osamu Iemura told a press conference. “We want to have that fact understood overseas,” he said. Iemura said he had no information to suggest the U.S. Defence Department had broken off talks with Toshiba on the possible procurement of lap top computers because of the illegal exports by Toshiba Machine. Kyodo News Agency, quoting the weekly magazine U.S. News and World Report, said on Saturday the U.S. Air Force had decided to cancel an agreement to buy 100 mln dlrs worth of computers because of Toshiba Machine’s illegal exports. “We have no contract. The U.S. Defence Department has been negotiating for procurement with several companies including Toshiba,” Iemura said. Last week, police said they had arrested two Toshiba Machine employees on suspicion of illegally exporting high technology equipment to the Soviet Union. The Japanese government has already banned further shipments of goods to Communist states by Toshiba Machine for one year and by its export agency C. Itoh and Co Ltd for three months. REUTER 1-JUN-1987 02:33:01.00 israel RM AI f0117reute u f BC-ISRAELI-BANK-SAYS-ELE 06-01 0112 ISRAELI BANK SAYS ELECTION COULD HARM ECONOMY JERUSALEM, June 1 – Israel’s central bank said in its annual report the country made striking gains in 1986 under an austerity program, but warned a national election campaign could harm the economy. Elections are due by November 1988, but tension within the government over a Middle East peace conference has led many political analysts to predict the government may fall earlier. Bank of Israel governor Michael Bruno told a news conference the austerity since July 1985 had balanced the national budget for the first time in 15 years, and pushed inflation from 400 pct a year to just below 20 pct in 1986. But Bruno warned that if politicians followed their past practice of lifting customs duties and increasing government subsidies on basic goods in order to curry public favour during elections, the gains of the program could be lost. “The great success of the national unity government in executing the economic programme … Depends on its ability to show proper judgement towards economic issues also when elections are on the horizon,” Bruno said. He blamed a 12 pct rise in real wages in 1986 for a sharp increase in private consumption, and said higher pay was harming attempts to push inflation to under 10 pct a year. “The lowering of inflation was one of the striking successes of 1986,” Bruno said. “It is important to note that in this area of economic stability we still have to tread a delicate path to reach an annualised inflation rate of 10 pct in the second half of this year,” he said. He added that this was achievable. The Bank’s report said Israel’s gross domestic product grew by 2.2 pct in 1986. The business GDP, which most economists view as a better indicator of economic growth, rose by 3.7 pct. REUTER 1-JUN-1987 02:40:44.56 rubber japan M T C f0122reute u f BC-TOKYO-EXCHANGE-ALLOWS 06-01 0089 TOKYO EXCHANGE ALLOWS MORE GOLD AND RUBBER BROKERS TOKYO, June 1 – The Tokyo Commodity Exchange for Industry (TOCOM) said it will allow five more members to become precious metal brokers, taking the total to 54, and four more members to broke rubber, for a total of 39. An exchange official told Reuters the Ministry of International Trade and Industry is expected to approve the the new brokers by mid-June. The move has been under study since early May in response to requests by non-broker members of the exchange. REUTER 1-JUN-1987 03:01:20.73 west-germany RM AI f0138reute u f BC-GERMAN-PRIMARY-BOND-M 06-01 0112 GERMAN PRIMARY BOND MARKET SEEN REVIVING IN JUNE By Alice Ratcliffe, Reuters FRANKFURT, June 1 – West Germany’s eurobond market may revive in June, after two month’s relative dormancy, before dozing off for the summer, bond market sources said. Syndicate managers said many borrowers, anticipating lower West German interest rates, cancelled mandates during the last two-week calendar, hoping borrowing costs would decline. Borrowers are likely to return as domestic interest rates lose downward momentum, syndicate managers said. A supranational issue via Westdeutsche Landesbank Girozcentrale is likely today and Dresdner Bank AG could lead a new bond. New issue volume is likely to be helped by a recent domestic legal change which indirectly lowered costs for European Community state-backed borrowers, the sources said. A statutory change to the West German Exchange Admissions Act, which went into effect on May 1, allows such borrowers to file for bourse listing without a prospectus and without an underwriting group. This saves them the 1/2 point listing fee formerly paid to banks. The two most recent issues for Electricite de France, led by Deutsche Bank AG, and Bank of Greece, led by Commerzbank AG, were brought to market under the new law, managers said. Deutsche Bank confirmed that its bond was brought out in conformance with the new law. Commerzbank had no comment. The success of Commerzbank’s Bank of Greece deal, especially for the shorter of the two tranches of five and eight years, has also encouraged syndicate managers to bring out new issues during the new calendar period. Many borrowers might also seek to get their bonds in before the market enters its quiet summer phase, referred to by German bond dealers as the “summer hole.” But syndicate managers said there are also some factors standing in the way of new issues. One negative factor is that current swap conditions for marks into dollars are not favourable. Syndicate managers said the yield spread between domestic Schuldschein notes and mark eurobonds is now too low to make swaps profitable for eurobond borrowers. Low yields on domestic notes comparable to mark eurobonds mean German banks can now borrow cheaply at domestic rates. They would charge a high premium to borrowers taking up euromarks for swaps as banks have little incentive to take on more expensive euromark liabilities at present. However, some foreign borrowers might anyway borrow in marks out of a genuine need for the currency, managers said. Another factor which might dampen the primary market is uncertainty about the dollar. Its rise last week over 1.80 marks helped send West German government bonds lower by nearly one pfennig over the week. If the dollar looks poised to stabilize or rise further, foreign investors in mark eurobonds could switch out of them on the belief that gains from the mark’s appreciation were ending, dealers said. The dollar is expected to remain stable this week before the seven leading nations begin their economic summit in Venice on June 8. In May, a total of 1.1 billion marks of new mark eurobonds were launched, compared with 1.0 billion in April. This compared with a relatively active March, when 2.3 billion marks of eurobonds were launched, and a very strong February, when issues totalled nearly 5.0 billion. REUTER 1-JUN-1987 03:17:14.53 gold australia C M f0162reute u f BC-RENISON-GC-AND-CITY-R 06-01 0114 RENISON GC AND CITY RESOURCES SET PNG GOLD VENTURE SYDNEY, June 1 – Renison Goldfields Consolidated Ltd (RGC) and explorer have agreed in principle on a joint venture to re-examine the Bulolo alluvial gold field in Papua New Guinea, City Resources said. City Resources would progressively earn up to 66.66 pct of RGC’s Prospecting Authority 585, which covers all the field, by spending a total of 6.5 mln kina, it said in a statement. It said it believed Bulolo was not fully exploited in the past, noting the literature refers to heavy gold losses in tailings during dredging from 1931 to 1967 which produced a total of 2.1 mln ounces. City Resources also said previous dredging was only carried out to a depth of 36 metres and high grade gold values are reported to at least 60 metres in the central part of the Bulolo Valley and possibly as deep as 90 metres. In its productive life, recovered average grade at Bulolo was 0.3 rpt 0.3 grams a tonne from some 207 mln cubic metres of gravel, it said. City Resources will act as operator. The Bulolo field, in Morobe Province, was the first successful gold mining operation of after it was floated in Canada in 1926. It operated the field until dredging ceased in 1967. REUTER 1-JUN-1987 03:32:40.20 mexicovenezuela RM f0177reute u f BC-VENEZUELA-HAS-NO-PLAN 06-01 0103 VENEZUELA HAS NO PLANS TO SEEK REVISED DEBT ACCORD GUANAJUATO, Mexico, June 1 – Venezuela has no plans to try to renegotiate the debt rescheduling agreement it worked out with creditor banks in February, public finance director Jorge Marcano told Reuters. Speaking here after a meeting of the 11-nation Cartagena group, Marcano said he was aware of political pressure at home to reduce debt payments but did not think such a move would benefit Venezuela. “We have no intention of revising the terms of the accord,” he said. “There would be little to gain and in fact it would probably be detrimental.” Venezuela agreed with its bank advisory committee on a 14.5 year rescheduling of 20.3 billion dlrs in public sector foreign debt, with an interest rate 7/8 pct over Libor. The previous agreement, reached a year before but never implemented, was for 12-1/2 years with a 1-1/8 pct spread. In Caracas there have recently been calls to invoke the agreement’s contingency clause which the government used last year to amend the original terms after a 40 pct drop in oil income. But Marcano said the bulk of payments to be made this year are on private debts and non-rescheduled public debts. Marcano said Venezuela, which has reduced its debt by six billion dlrs since 1983, should have no problems in repaying restructured debt this year or next. Asked whether the government felt badly treated with its 7/8 pct spread when Mexico and Argentina have won a 13/16 pct margin, Marcano said he still felt Venezuela had a good deal. “Venezuela has restructured its debt so that most of it is being repaid at 7/8 pct, which I think is better than the other countries,” he said. The rescheduling accord covers some 90 pct of Venezuela’s commercial bank debt, which accounts for more than 90 pct of the total public sector external debt. Venezuela has almost no debt outstanding to multilateral agencies. Marcano said attempting to revise the rescheduling accord a second time would probably hurt Venezuela’s bid to restore it credit rating and raise new loans. He said Venezuela now obtains trade credit lines without a government guarantee, something that Argentina and others are just starting to try to negotiate in their restructuring packages. Venezuela is currently seeking loans in Japan and West Germany to finance steel and aluminium expansion. According to finance minister Manuel Azpurua, a 100 mln mark credit has been lined up for the Venalum aluminium plant. Marcano said no mandate has yet been given for a planned 100 mln dlr bond issue, although he confirmed that talks were continuing with Morgan Guaranty and other banks. Banking sources said one option was to privately place the bonds through the Caracas-based Banco de Venezuela, which would underwrite the issue, but Marcano said no decision has yet been made. REUTER 1-JUN-1987 03:45:53.98 RM AI f0202reute f f BC-Japan-May-external-re 06-01 0014 ******Japan May external reserves hit record 68.94 billion dlrs (April 68.62 billion) Blah blah blah. 1-JUN-1987 03:52:51.55 japan F f0210reute u f BC-TOSHIBA-FORECASTS-11 06-01 0097 TOSHIBA FORECASTS 11 PCT RISE IN 1987/88 GROUP NET TOKYO, June 1 – Toshiba Corp expects to report a group net profit of 38 billion yen for the year ending March 31, 1988, up 11.2 pct from a year earlier, assuming an exchange rate of 140 yen to the dollar, a company official said. Osamu Iemura, a senior vice president, told a news conference sales are forecast at 3,500 billion yen, up 5.8 pct. The forecasts are based on expectations of improved sales of office automation equipment, a recovery in semiconductor market prices and an increase in plant exports. Toshiba said earlier that 1986/87 group net profit fell 42.5 pct from a year earlier to 34.18 billion yen, the second consecutive year-on-year drop. Sales fell 1.9 pct to 3,308 billion yen, the first year-on-year sales drop in 21 years. Iemura said the results reflected trade friction over semiconductor exports to the U.S., The yen’s sharp rise against the dollar and a drop in exports to China. The 1986/87 foreign exchange loss totalled 145 billion yen, including parent company losses of 120 billion. The average value of the yen against the dollar rose to 161 from 221 a year earlier, he added. Weaker prices for semiconductors and office automation equipment cut total sales 245 billion yen, Iemura said. Group sales of telecommunication and electronic devices, accounting for 36 pct of the total, rose five pct to 1,183 billion yen in 1987/88 from a year earlier, helped by good sales of word processors, workstations, medical equipment, point-of-sales systems and exports of personal computers. Semiconductor sales rose to 410 billion yen from 360 billion a year earlier but fell short of an expected 430 billion. Sales are expected to be 460 billion in 1987/88. Office automation equipment sales rose to 650 billion yen in 1986/87 from 600 billion a year earlier, Iemura said. Sales in 1987/88 are expected to be 695 billion yen, mainly due to good sales of computers in Europe and to expectations the U.S. Will remove its 100 pct import duty on computers. Sales of heavy electric goods, accounting for 26 pct of sales, rose 0.2 pct from a year earlier to 868.14 billion yen. Home electronics sales fell 10 pct to 940.64 billion yen, mainly due to the yen’s appreciation against the dollar and a drop in colour television exports to China, Iemura said. Overall 1986/87 overseas sales totalled 1,021 billion yen, down three pct from a year earlier, Iemura said. Overseas sales of telecommunication and electronic devices rose nine pct from a year earlier to 493.90 billion yen, helped by a 80 pct year-on-year rise in computer and computer-related equipment sales. Home appliance sales abroad fell 24 pct to 312.10 billion, mainly due to the yen’s appreciation, lower sales to China, and increased competition with newly-industrialised countries. Toshiba reduced the number of divisions to three from four in reaction to market changes, effective April 1. Group sales of telecommunication and electronic devices are estimated at 1,520 billion yen in 1987/88, Iemura said. Home appliance sales are estimated at 1,260 billion yen and heavy electric goods sales at 720 billion. Iemura said group exports to China are expected to rise to 90 billion yen in 1987/88 from 30 billion in 1986/87 due to an increase in sales of generators. Sales to China were down from 70 billion yen in 1985/86 due to a sharp drop in home appliance exports, he said. Group capital spending in 1987/88 will fall to 197 billion yen from 213.30 billion in 1986/87, Iemura said. Of total capital spending, investment in semiconductors will fall to 65 billion from 68 billion. Research and development spending will rise to 217 billion yen from 201.10 billion, he said. REUTER 1-JUN-1987 03:56:52.77 uk RM f0212reute u f BC-TORIES-MAINTAIN-LEAD 06-01 0112 TORIES MAINTAIN LEAD 10 DAYS BEFORE U.K. ELECTION LONDON, June 1 – A public opinion poll showed Prime Minister Margaret Thatcher’s Conservatives maintaining their lead over the opposition Labour party as Britain’s June 11 general election campaign entered its third week. The poll, conducted for TV-AM breakfast television by the Harris organisation, put the Tories on 43 pct, Labour on 35 and the centrist Social Democrat-Liberal Alliance on 20 pct. If translated into parliamentary seats in a general election, Thatcher would enjoy an overall majority of 50. Since the general elections were announced on May 11, Thatcher’s Tories have maintained the lead. A survey of marginal seats for The Times of London, carried out by the MORI organisation, showed that Thatcher would sweep back in with an overall majority of l40 seats, the same margin she enjoyed in the 1983 general elections. The Times poll of marginal seats where Labour is challenging a Conservative incumbent — and which it must win in order to dislodge the Tories — showed the Conservatives with 42 pct, Labour with 34 and the Alliance on 23. If the result were repeated on polling day, Labour would win only a handful of the marginal seats, giving Thatcher a landslide. REUTER 1-JUN-1987 04:28:10.10 ship kuwaitussr RM V f0251reute u f BC-MOSCOW-SAYS-WILL-RETA 06-01 0109 MOSCOW SAYS WILL RETALIATE AGAINST GULF ATTACKS KUWAIT, June 1 – Any Iranian attack on Soviet ships in the Gulf will bring a forceful and violent response, a Soviet foreign ministry official said in an interview published here. Alexander Ivanov, head of the Gulf desk at the Soviet Foreign Ministry, told Al-Rai al-Aam newspaper Moscow “will answer back with force and violence if Iran attempts to attack any Soviet ship or tanker in the Gulf.” A Soviet tanker hit a mine in the Gulf last month. Ivanov also accused the United States of stepping up the regional crisis and of failing to exert genuine efforts to end the Iran-Iraq war. REUTER 1-JUN-1987 04:35:29.58 gas singapore Y f0257reute u f BC-MOBIL-RAISES-SINGAPOR 06-01 0094 MOBIL RAISES SINGAPORE PETROL PUMP PRICES SINGAPORE, June 1 – Mobil Oil Singapore Pte Lte will raise pump prices of petrol from June 2, a spokeswoman said. Grade 97 octane with 0.15 gm lead will be 96.8 cents/litre against 94 cents previously for 0.4 gm lead. Grade 92 octane will be 90.2 cents against 87.6 previously. SPC earlier announced its pump prices of 96.8 cents and 90.6 cents for 97 and 92 octane, respectively, for 0.15 gm lead petrol which is being sold in Singapore from today in line with the Ministry of Environment’s regulations. REUTER 1-JUN-1987 04:35:44.48 RM V f0258reute f f BC-Lebanon-Prime-Ministe 06-01 0016 ****** Lebanon Prime Minister Karami dies of injuries, after helicopter attacked -official sources Blah blah blah. 1-JUN-1987 04:38:49.95 japan RM f0259reute u f BC-IBJ-AMORTIZES-LOANS-T 06-01 0079 IBJ AMORTIZES LOANS TO JAPAN LINE TOKYO, June 1 – The Industrial Bank of Japan (IBJ) amortized 68 billion yen worth of loans, including the write-off of an unspecified amount of loans, to the group in the year ended March 31, an IBJ spokesman said. He declined to comment on a report in the economic daily Nihon Keizai Shimbun that it had written off loans worth 15 billion yen to Japan Line, one of the world’s largest tanker operators. Japan Line’s current liabilities amounted to 68.98 billion yen at the end of September. In December, Japan Line asked its creditor banks to shelve repayment of 124 billion yen of outstanding loans and about 153 billion in loans to its subsidiaries following the yen’s steep rise and the world recession in shipping. REUTER 1-JUN-1987 04:42:02.76 luxembourg RM f0267reute u f BC-RBC-FINANCE-RAISING-3 06-01 0091 RBC FINANCE RAISING 300 MLN LUXEMBOURG FRANCS LUXEMBOURG, June 1 – RBC Finance BV, a wholly-owned subsidiary of the Royal Bank of Canada, is to raise 300 mln Luxembourg francs through a six-year, 7-3/8 pct private placement, lead manager Banque Paribas (Luxembourg) SA said. The non-callable bullet issue is priced at par. Payment date is June 16 and coupon date is June 17. The issue is co-managed by Banque Generale du Luxembourg SA, Banque Internationale a Luxembourg SA, Kredietbank SA Luxembourgeoise and Credit Europeen SA. REUTER 1-JUN-1987 04:43:50.83 lebanon RM V f0271reute b f BC-LEBANESE-PRIME-MINIST 06-01 0081 LEBANESE PRIME MINISTER KILLED BY HELICOPTER BOMB BEIRUT, June 1 – Lebanon’s Prime Minister Rashid Karami died from injuries after a bomb exploded in a helicopter flying him to Beirut to the northern port of Tripoli, official sources said. They said Karami, 66, died at a hospital in the Christian town of Byblos north of Beirut. The bomb, which exploded under Karami’s seat, also injured Interior Minister Abdallah al-Rassi and the pilot, who made a forced landing. REUTER 1-JUN-1987 04:44:00.47 japanbangladesh RM f0272reute u f BC-JAPAN-EXTENDS-24-BILL 06-01 0081 JAPAN EXTENDS 24 BILLION YEN LOAN TO BANGLADESH DHAKA, June 1 – Japan has extended a 24 billion yen loan to Bangladesh, Finance Ministry officials said. The loan, to be disbursed over two years from next July, is for chemicals, cement, steel and machinery imports and for setting up a power plant in eastern Sylhet district, they said. Terms were not disclosed. The credit brings total Japanese loans and grants to Bangladesh to 441.25 billion yen since 1972, they said. REUTER 1-JUN-1987 04:48:03.41 japan F f0276reute u f BC-POORER-CURRENT-PROFIT 06-01 0103 POORER CURRENT PROFITS SEEN FOR JAPAN FIRMS TOKYO, June 1 – Poor returns by oil refiners and utilities will drag down average current profits of major Japanese firms in the year ending March 31, Wako Research Institute said. Current profits will drop an average 13.5 pct after a 7.3 pct drop in 1986/87, it said. Oil refiners and utilities face a sharp profit fall after two years of high profits due to the yen’s strength, lower world oil prices and reduced interest rates, it said. Sales of all firms are expected to rise 2.3 pct from the previous year when they fell 11.9 pct from a year earlier. The independent institute surveyed 436 firms listed in the first section of the Tokyo Stock Exchange, excluding banks and insurance firms. Excluding the oil refiners and utilities, Wako forecasts that current profits will rise 3.7 pct after a 22.3 pct drop in 1986/87 and a 19.5 pct drop in 1985/86. Electric power firms and gas companies are likely to see 42.5 and 31.6 pct falls in current profits respectively in 1987/88 due to cuts in utility prices to recycle windfall profits made during the yen’s rise against the dollar, and due to the recent recovery in world oil prices, the institute said. Current profits of manufacturing industries will rise an average seven pct after a 29.7 pct drop in 1986/87 and a 25.0 pct drop in 1985/86, Wako said. An increase in overseas production and an expected increase in domestic demand will cause the recovery in manufacturing sector profits, it said. REUTER 1-JUN-1987 04:48:27.24 interest kuwait RM f0277reute u f BC-WINDOW-FOR-BANK-AID-I 06-01 0103 WINDOW FOR BANK AID IN KUWAIT REMAINS SHUT KUWAIT, June 1 – The Kuwait Central Bank kept its window for funds to the domestic interbank deposit market shut as banks returned from a four day holiday, dealers said. The move drove short-term interest rates sharply higher, with overnight and tomorrow-next funds more than doubling from last Wednesday and hitting 20 pct. There were few offers in a tight market and traders scrambled for any available funds. One-month to one-year deposits were indicated one point higher at eight, seven pct but there was little activity at the longer end of the market. Bankers see the suspension of central bank aid as a deliberate move to drive up Kuwaiti dinar interest rates and stem a flow of funds out of the country, where market nervousness is increasing over the growing tension in the Gulf. The central bank’s move has been combined with a steady cut in the dinar exchange rate. Today’s rate was reduced to 0.27939/73 to the dollar from 0.27758/92 on Wednesday before the four day bank holiday that celebrated the end of the fasting month of Ramadan. REUTER 1-JUN-1987 04:51:29.57 japan RM f0283reute u f BC-SKYLARK-TO-ISSUE-20-B 06-01 0091 SKYLARK TO ISSUE 20 BILLION YEN CONVERTIBLE BOND TOKYO, June 1 – Skylark Co Ltd said it will issue a 20 billion yen nine-year unsecured convertible bond in the domestic capital market through public placement with Nomura Securities Co Ltd as lead manager. Coupon and conversion price for par-priced bond maturing June 28, 1996, will be set at its board meeting to be held in mid-June and payment is due on July 1, the company said in a statement. Skylark’s share price fell 10 yen to 2,880 on the Tokyo Stock Exchange today. REUTER 1-JUN-1987 04:58:41.89 gas singapore Y f0288reute u f BC-SHELL,-CALTEX,-BP-REV 06-01 0093 SHELL, CALTEX, BP REVISE SINGAPORE PETROL PRICES SINGAPORE, June 1 – Shell Eastern Pte Ltd will revise pump prices of petrol from 2300 hours local while Caltex Asia Ltd and BP Singapore Pte Ltd will revise theirs at midnight tonight, company officials said. Caltex and Shell will set prices of 0.15 gm lead at 96.8 cents/litre for 97 octane and 90.2 cents for 92 octane. BP will set prices at 96.8 cents/litre and 90.6 cents, respectively. Previous industry pump prices for 0.4 gm lead were 94 cents for 97 octane and 87.6 cents for 92 octane. REUTER 1-JUN-1987 05:00:15.68 fuel bangladesh Y f0295reute u f BC-BANGLADESH-TO-IMPORT 06-01 0070 BANGLADESH TO IMPORT 60,000 TONS OF DIESEL FROM USSR DHAKA, June 1 – Bangladesh will import 60,000 tons of high speed diesel oil from the Soviet Union under a barter agreement signed here last week, Bangladesh petroleum Corporation officials said. The oil worth about 10 mln U.S. Dlrs will be shipped by December this year, they added but did not say what Bangladesh would sell in return to the Soviet Union. REUTER 1-JUN-1987 05:02:05.63 west-germanyjapan F f0302reute r f BC-GERMAN-CAR-FIRMS-SEEN 06-01 0115 GERMAN CAR FIRMS SEEN PRODUCING SOLID 1987 RESULTS By Anthony Williams, Reuters BONN, June 1 – The West German car industry celebrated its 100th birthday with a record-breaking 1986 performance at home and is due to turn in another set of solid results in 1987. But share market analysts warn it faces continued problems from the strong German mark and predict increasingly aggressive competition in Europe from the Japanese. On the plus side for the industry, which is West Germany’s biggest foreign exchange earner, the analysts are confident the technical superiority and innovative qualities of the luxury producers will help them maintain a strong market profile. Most analysts thought Daimler-Benz AG would do best this year but expected Dr. Ing. H.C.F. Porsche AG to continue its slide because of the weak U.S. Dollar. They were generally optimistic for Bayerische Motoren Werke AG (BMW) but some were sceptical it could match record 1986 profits. Views were mixed on Volkswagen AG , but some analysts took comfort from the fact that Europe’s leading car maker had apparently put a major currency scandal behind it. VW could be vulnerable as Japanese exporters, suffering from the strength of the yen against the dollar, switched their sales offensive from the U.S. To Europe, they said. Analyst Joseph Rooney with brokers James Capel in London, noted the Japanese drive was coming at a time when the whole European market was expected to contract slightly. But analysts saw most German manufacturers meeting the challenge, even though the Japanese were now starting to focus on the up-market sector. BMW’s chairman Eberhard von Kuenheim shrugged off the Japanese drive in an interview with Wirtschaftswoche magazine.”I view the move by the Japanese into the top class with a certain equanimity. Not only are we playing on home turf, we also have technical superiority,” he said. The car industry benefitted last year from clarification of domestic rules on low-pollution cars, which meant orders put off in 1985 were carried out the following year. Tax cuts generally boosted domestic demand, especially for cars. Domestic registrations leapt by nearly 19 pct to a record 2.8 mln cars. The VDA industry association says this might ease to 2.7 mln in 1987, but predicts another good year. Looking to the future, Daimler has designated 16 billion marks for car sector spending in the next five years. Chairman Werner Breitschwerdt says spending is not aimed at quantity but improving high quality technology and accessories. Analyst Stephen Reitman with Phillips and Drew in London, said Daimler had the best earnings profile of West German producers, with group profits per share rising to 80 marks from 78.8 in 1986. Analysts were more cautious about VW. Reinhard Fischer with Bank in Liechtenstein (BiL) in Frankfurt saw VW’s group earnings per share falling to 35 marks in 1987 from 42 in 1986. A recent report from his bank said last year’s currency losses were a sign of mismanagement. It stressed heavy losses from VW’s Brazilian operations and its Spanish unit, SEAT. VW’s first quarter figures also highlighted problems in both the U.S. And Brazil, analysts said. VW reported flat first quarter earnings, except for a 39.2 pct fall in U.S. Sales and Brazilian sales which dived 46.5 pct. Reitman was more optimistic than BiL about VW’s 1987 group earnings and, predicting an improvement in both Spain and Brazil, he saw an unchanged 42 marks per share, , He also said that VW now stood to benefit from not hedging against foreign exchange fluctuations. In a May 1 study, he wrote: “One point in VW’s favour is that its extraordinary policy of not hedging forward has meant that it will have less far to go in adjusting to current DM/Dollar rates than the other German manufacturers who were to a lesser or greater extent protected up to 1986.” Reitman was also reassured by the apparent end of the currency scandal, where allegedly faked forward contracts were not acknowledged by VW’s banks. VW fixed final losses from the fraud at 473 mln marks for which provisions were made in 1986. VW’s new Audi 80, a sporty model which German media reports say was designed to jazz up Audi’s staid “Grandpa” image, contributed significantly to VW’s first quarter performance. The 80 doubled its sales against the year-ago level. But the Audi range as a whole has suffered a huge setback in the U.S. Because of an image problem linked to claims of “unintentional acceleration.” Von Kuenheim won’t be pinned down on BMW’s 1987 profits, but at a news conference he emphasised 1986 earnings were a record high. Without referring to 1987, he added: “If profits are less in one year or the other they will still be good.” Rooney said group profits per share, which BMW does not publish, would rise to 62.5 marks this year. Some analysts put the 1986 group profit at 60 marks, a figure BMW does not deny. But Reitman was more pessimistic, predicting 50 marks per share in 1987, and a return to 60 next year. He said: “BMW will be the story of 1988,” when it plans to launch an updated version of its Five series. BMW also has a big investment programme under way and Bil’s Fischer said depreciations could affect earnings. Other analysts pointed to possible hedging problems and Reitman noted a 2.10 marks to the dollar hedge expired this September. Reitman said the outlook for Porsche was bearish for the year to end-July, 1987. Porsche’s 1985/86 group profits at 84 marks per share fell 30 pct from the record 120 marks in 1984/85 and Reitman saw 60 marks in 1986/87. “With the U.S. Currently accounting for 63 pct of unit sales (this is expected to fall to 60 pct in the full year 1986/87) Porsche’s earnings remain uncomfortably exposed to the DM/dollar relationship,” he said. REUTER 1-JUN-1987 05:07:55.27 japan F f0317reute u f BC-BAA-PLC-UNIT-WINS-KAN 06-01 0107 BAA PLC UNIT WINS KANSAI AIRPORT CONTRACT TOKYO, June 1 – (BAS) has concluded an 18 mln yen contract with the for consulting work on the terminal at a new airport to be built in western Japan, the airport company said in a statement. The contract is the first to be awarded to a British company and follows the award of a 200,000 dlr consultancy contract to a division of the U.S-based in consortium with six Japanese companies, a company spokesman told Reuters. BAS is a subsidiary of , the former British Airports Authority. The six-billion dlr project to build the airport has been a major source of friction with the U.S. And the European Community who have put pressure on Japan to allow foreign companies to compete with domestic firms in building it. REUTER 1-JUN-1987 05:11:16.43 uk RM f0324reute b f BC-GOODMAN-FIELDER-UNIT 06-01 0108 GOODMAN FIELDER UNIT ISSUES 75 MLN STG CONVERTIBLE LONDON, June 1 – Goodman Fielder U.K. Plc is issuing a 75 mln stg convertible eurobond due July 4, 1997 with an indicated coupon of five to 5-1/4 pct and par pricing, lead manager Credit Suisse First Boston Ltd said. The issue is guaranteed by Goodman Fielder Ltd and final terms will be set on, or before, June 5. The issue is callable at 106 pct declining by one pct per annum to par thereafter but is not callable until 1992 unless the share price exceeds 130 pct of the conversion price. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. The issue has an investor put option in 1992 which will be priced to give a yield of approximately 8-3/4 pct. The expected conversion premium is 20 to 24 pct. The issue is available in denominations of 1,000 stg and will be listed in London. The payment date is June 24 and there will be a long first coupon period. The conversion period is from July 4, 1987 until June 26, 1997. Over the weekend, Goodman Fielder announced in Sydney that it had signed for a 100 mln U.S. Dollar composite revolving euronote issuance facility to be launched in Hong Kong. REUTER 1-JUN-1987 05:18:59.85 veg-oilcoconutcopra-cakemeal-feedpalm-oilcoconut-oil philippines ec G f0337reute u f BC-PHILIPPINE-COCONUT-CH 06-01 0109 PHILIPPINE COCONUT CHIEF TO LOBBY AGAINST EC TAX By Chaitanya Kalbag, Reuters MANILA, June 1 – Philippine Coconut Authority (PCA) chairman Jose Romero said he would visit Brussels later this month to lobby against a proposed 100 pct European Community (EC) levy on vegetable oil imports. “I intend to visit Brussels and talk to whoever is putting up this devilish scheme to impoverish third world countries like the Philippines,” Romero said in an interview. He said he did not know how much support the levy had within the EC but he said he believed those originally opposed to the tax were under pressure to change their position. Romero said a group of EC members led by West Germany, the Netherlands, Denmark and Norway were opposed to the tax. But there was a danger some of them would be persuaded to change sides, and if that happened opposition could crumble. Romero said another threat to exports lay in an EC warning that copra meal cake used in livestock feeds contained dangerous levels of aflatoxin, a carcinogenic chemical. He said the EC standard of 0.02 parts of aflatoxin per million parts of meal, which EC countries had been asked to apply by October 1988, was too rigid. He said Philippine copra cake contained much higher levels of aflatoxin. Aflatoxin comes from moulds which develop in copra when it is not properly dried or ground. Romero said he would tell big buyers of copra meal in London that the Philippines was doing its best to meet EC standards. It was also trying to eliminate aflatoxin totally, but this was likely to take several years of research. Copra meal exports were 817,641 tonnes or 35 pct of total coconut exports in 1986. The meal was worth 73.5 mln dlrs. Romero said he would also visit Oxford University’s department of agricultural economics to discuss ways of avoiding the copra process altogether. “There are ways of producing coconut products outside of copra,” Romero said. “We can process fresh coconut without drying the meat in the sun. Through the wet process we can process coconuts into other food or non-food products, or we can go to the chemical root.” He said there was a tendency for agricultural countries to become more protectionist and he expected export prices of coconut products to drop. “In the long term we will be getting less and less for more and more production, and I’m not comfortable with that,” he said. With countries like Indonesia and Malaysia stepping up production of palm oil, a coconut oil substitute, palm oil output had risen nearly 70 pct since 1971, Romero said. “To add to that the U.S. Soybean Association is spending billions of dollars to discredit palm oil and coconut oil by saying that they are polysaturated fats and bad for the heart,” he said. Romero said he expected coconut product export prices to stay up for the rest of the year. They would probably touch a high of 20 cents/pound from the current level of 18.59 cents, and a sharp rise from year-ago levels of 10.50 cents. Romero said the Philippines was at the end of a five-year coconut production cycle which showed production tended to fall after two successive years of good harvests. He said 1985 and 1986 were good harvests and this year, to add to the production fall, drought had affected output. “Traders are stocking up and when they have overbought the prices will start declining again. The only sure way to keep prices stable is by processing, adding more value,” he said. Coconut farmers were being encouraged to intercrop by planting other cash crops between coconut trees, he said. “A typical farm may have from 100 to 150 trees sitting on 10,000 square metres of land. That’s a lot of space,” Romero said. He said the government’s proposed land reform program would exclude about 75 pct of the coconut farmers because they had less than the proposed seven-hectares of land. “If the idea of land reform is to increase income levels, production and employment then it won’t happen,” he said. PCA figures show about one-third of the country’s population is dependent on the coconut industry. Coconuts are planted on about 3.2 mln hectares or one-fourth of total agricultural land. REUTER 1-JUN-1987 05:25:17.68 crude japan opec RM Y f0348reute u f BC-PEMEX-OFFICIAL-SAYS-O 06-01 0115 PEMEX OFFICIAL SAYS OPEC OUTPUT CRITICAL TO PRICE TOKYO, June 1 – Crude oil prices could remain around 18 dlrs a barrel until the end of the year, but OPEC’s decision on output at its next meeting would be the critical factor, an official of Mexico’s state oil company, Petroleos Mexicanos (Pemex), told a group of Japanese businessmen. Adrian Lajous, Pemex’ executive vice president of international trade, said current OPEC output already appeared to be very near the 16.6 mln barrel per day level it set itself for the third quarter. “Production is surging ahead of what was originally planned, while demand is growing more slowly than envisaged a few months ago,” he said. He said OPEC had to look very carefully at what level of production in the third quarter would effectively sustain the 18 dlrs price, and that an increase to what had originally been envisaged might soften price levels. The 13-member cartel is scheduled to meet on June 25 in Vienna to review its December accord on prices and output. “I hope OPEC will follow a very conservative attitude in terms of volume decisions,” Lajous said. A repetition of what happened last year, when OPEC boosted output and sent oil prices tumbling down below 10 dlrs, is always there as a possibility, he said. “I hope never again to go through the trauma of 1986. I expect other oil exporters have learned their lessons and discipline will be maintained,” he said. Lajous said there was still excess supply and as long as this remains there will be a tendency to instability in oil markets, but prices should remain around 18 to 19 dlrs during 1987 if output remains under control. He said Saudi King Fahd’s remarks last month, that increased production was not so important as long as incomes would not be affected by the output, were “very relevant and welcome from such a powerful producer.” REUTER 1-JUN-1987 08:20:34.59 acq usa F f0709reute r f BC-CONISTON-GROUP-TO-CON 06-01 0111 CONISTON GROUP TO CONTINUE BID FOR ALLEGIS NEW YORK, June 1 – An investor group led by Coniston Partners said it plans to continue its effort to gain control of Allegis Corp despite the defensive maneuvers Allegis announced last week. Allegis said then that it would borrow three billion dlrs and pay shareholders a dividend of 60 dlrs per share, lowering the company’s net worth. The Coniston group, which owns 13 pct of Allegis stock, has said that it would seek shareholder consents to remove 13 of the 16 Allegis directors. The group had said it would consider breaking up Allegis into its airline, hotel and vehicle rental components if it succeeded. The Coniston group said it expects to make a further announcement today on its plans for Allegis. Wall Street analysts and traders had not expected Coniston to abandon its pursuit of Allegis as a result of the Allegis defensive measures. Allegis officials were unavailable for comment. Reuter 1-JUN-1987 08:28:31.04 zincleadstrategic-metal canada M f0724reute zb f BC-/COMINCO-LEAD/ZINC-UN 06-01 0084 COMINCO LEAD/ZINC UNION REJECTS CONTRACT TRAIL, BRITISH COLUMBIA, June 1 – Three United Steelworkers of America locals on strike at Cominco Ltd rejected a tentative three-year contract, a union representative said. “The vote was 1,229, or 54.5 pct, against, and 1,028, or 45.5 pct, for the contract. Eighty-one pct of the membership voted,” he said. The union representative said that the pact offered cost of living increases designed to keep pace with inflation, but contained no wage increase. The locals’ bargaining committees are expected to meet and prepare for the reopening of negotiations with Cominco, he said. The three locals cover about 2,600 production and maintenance workers at Cominco’s Trail smelter and Kimberley, B.C. lead-zinc mine. Output at both sites has been shut down since the production and maintenance workers, along with about 600 office and technical workers, went on strike May 9. The two Steelworkers locals representing the office and technical workers have not negotiated since May 21. The strike caused Cominco to declare force majeure, which means the company may not be able to honor contracts for products from the smelter and mine. Each of the five locals have separate contracts, all of which expired April 30, but the main issues are similar. The union had requested a three pct wage increase in each year of a two-year contract. Cominco had pressed for a three-year contract and some loosening of the rules on job classifications. The Trail smelter, about 400 miles east of Vancouver, produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley, about 450 miles east of Vancouver, produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. The smelter also produced cadmium, bismuth and indium. Revenues from the Trail smelter totalled 356 mln Canadian dlrs in 1986. Reuter 1-JUN-1987 08:30:25.79 acq F f0728reute f f BC-******SPECTRA-PHYSICS 06-01 0008 ******SPECTRA-PHYSICS REJECTS CIBA-GEIGY TENDER OFFER Blah blah blah. 1-JUN-1987 08:30:40.70 usa F f0730reute u f BC-COMPAQ-COMPUTER- 06-01 0037 COMPAQ COMPUTER CUTS PORTABLE II PRICES HOUSTON, June 1 – Compaq Computer Corp said it has cut prices on its PORTABLE II models 2 and 4 to 2,699 dlrs from 2,999 dlrs and to 3,999 dlrs from 4,499 dlrs respectively. reuter 1-JUN-1987 08:31:09.31 usa F f0734reute u f BC-KAYPRO--CUTS 06-01 0036 KAYPRO CUTS PRICES ON COMPUTERS SOLANA BEACH, Calif., June 1 – Kaypro Corp said it has cut prices on its Kaypro 386 Models A and E supermicrocomputers and Extra! Extra! desktop pulbishing system by 500 dlrs. The Kaypro 386 Model A will retail for 4,495 dlrs, and the Kaypro 386 Models E-40 and E-130 will sell for 5,795 dlrs and 8,095 dlrs, respectively, the company said. The Kaypro 386, Model E is available with eithe a 40 or 130 MB hard disk, the company said. In addition, the Kaypro Extra! Extra! will be reduced to 7,995 dlrs, and the Kaypro 16E, a transportable, IBM PC-compatible computer, now retails for 1,595 dlrs, and the dual floppy Kaypro 162E is 1,395 dlrs, Kaypro said. Reuter 1-JUN-1987 08:35:41.08 acq F f0761reute f f BC-******FIRST-CITY-INDU 06-01 0014 ******FIRST CITY INDUSTRIES SELLS YALE AND NUTONE UNITS FOR 400 MLN DLRS AND SECURITIES Blah blah blah. 1-JUN-1987 08:38:27.91 switzerlandnorway RM f0768reute u f BC-NORWAY’S-RS-BANK-ISSU 06-01 0070 NORWAY’S RS BANK ISSUES 40 MLN SWISS FRANC BOND GENEVA, June 1 – RS Bank Sparebanken Rogaland of Stavanger, Norway is launching a 40 mln Swiss franc seven year bond with a 4-7/8 pct coupon and par issue price, lead manager Banque Gutzwiller, Kurz, Bungener Ltd said. Subscription is from June 11 until June 17 with closing and pay-out on July 7. It can be called at 101 in 1992, and at 100-1/2 in 1993. REUTER 1-JUN-1987 08:40:12.93 leadzincstrategic-metal canada E F f0773reute r f BC-cominco- 06-01 0086 COMINCO UNION REJECTS CONTRACT Trail, British Columbia, June 1 – Three United Steelworkers of America locals on strike at Cominco Ltd rejected a tentative three-year contract, a union representative said. “The vote was 1,229, or 54.5 pct, against, and 1,028, or 45.5 pct, for the contract. Eighty-one pct of the membership voted,” he said. The union representative said that the pact offered cost of living increases designed to keep pace with inflation, but contained no wage increase. The locals’ bargaining committees are expected to meet and prepare for the reopening of negotiations with Cominco, he said. The three locals cover about 2,600 production and maintenance workers at Cominco’s Trail smelter and Kimberley, B.C. lead-zinc mine. Output at both sites has been shut down since the production and maintenance workers, along with about 600 office and technical workers, went on strike May nine. The two Steelworkers locals representing the office and technical workers have not negotiated since May 21. The strike caused Cominco to declare force majeire, which means the company may not be able to honor contracts for products from the smelter and mine. Each of the five locals have separate contracts, all of which expired April 30, but the main issues are similar. The union had requested a three pct wage increase in each year of a two-year contract. Cominco had pressed for a three-year contract and some loosening of the rules on job classifications. The Trail smelter, about 400 miles east of Vancouver, produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley, about 450 miles east of Vancouver, produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. The smelter also produced cadmium, bismuth and indium. Revenues from the Trail smelter totalled 356 mln Canadian dlrs in 1986. Reuter 1-JUN-1987 08:43:14.04 acq F f0781reute f f BC-******BOEING-CO-TO-AC 06-01 0009 ******BOEING CO TO ACQUIRE ARGOSYSTEMS FOR 37 DLRS A SHARE Blah blah blah. 1-JUN-1987 08:47:35.27 acq usa F f0790reute u f BC-FIRST-CITY--SELL 06-01 0077 FIRST CITY SELLS YALE, NUTONE UNITS BEVERLY HILLS, Calif., June 1 – First City Industries Inc said it has reached a definitive agreement to sell its Nuton and Yale security subsidiaries to Valor PLC for 400 mln dlrs and warrants to purchase two mln Valor ordinary shares. In addition, the company said it will recieve a special dividend of 60 mln dlrs from Nutone and Yale and it has agreed to buy 35 mln dlrs of Valor convertible preference shares. First City said it is seeking to increase shareholder values by improving and realizing the values inherent in its operating subsidiaries. The company said the transaction is subject to approval by shareholders of Valor and is expected to be completed within 40 days. It said Valor has arranged financing through an issue of ordinary and convertible preference shares underwritten by Hoare Govette Ltd and Barclays de Zoete Wedd Ltd. Nutone makes built-in electric products for the housing market and Yale makes door locks and electronic security products. Valor makes home products. Reuter 1-JUN-1987 08:50:51.31 earn usa F f0795reute r f BC-GENOVESE-DRUG-STORES 06-01 0027 GENOVESE DRUG STORES INC 1ST QTR MAY 22 MELVILLE, N.Y., June 1 – Shr 23 cts vs seven cts Net 911,000 vs 293,000 Sales 88.1 mln vs 74.8 mln Reuter 1-JUN-1987 08:51:41.01 usa A RM f0796reute r f BC-U.S.-CORPORATE-FINANC 06-01 0109 U.S. CORPORATE FINANCE – FINANCING SURGE SEEN By John Picinich, Reuters NEW YORK, June 1 – U.S. corporate treasurers are expected to race to market this week, propelled by hopes that the recent recoveries of the Treasury market and the dollar will whet investors’ appetities for new issues, underwriters said. Underwriters expect to price about 2.3 billion dlrs of new debt issues this week, including an asset-backed debt deal. “Treasurers have been sitting on the sidelines for weeks, waiting to pounce,” said an underwriter with a large Wall Street house. “They will hit the market at a fast pace as long as the dollar remains stable.” “The financing calendar is the heaviest it has been in weeks,” said a trader with a small securities firm. “And there are billions of dollars on the SEC shelf that can come to market at any time,” he said, referring to company debt filings with the Securities and Exchange Commission. Investment bankers said last week signaled a surge in financings. New debt offerings rose to nearly 2.8 billion dlrs during the holiday-shortened week from 2.09 billion dlrs in the previous week, they calculated. “And most of (last week’s) issues were not even on the calendar,” an underwriter remarked. Analysts noted that in the past few months the fixed-income markets became virtually obsessed with the dollar. The currency’s sharp drop ignited fears that foreign investors would shun dollar-denominated debt vehicles. Also, many participants believed inflation would gather momentum because of the dollar’s fall. Inflation is the number one enemy of fixed-rate investments, analysts explained. But the dollar’s recovery last week calmed worries in the Treasury and corporate bond markets over foreign investor demand and inflation. The resulting decline in yields should bring company treasurers to market, traders said. Underwriters are slated to bid competitively tomorrow for 250 mln dlrs of first mortgage bonds due 2017 of Georgia Power Co, a unit of Southern Co . The issue is rated Baa-1 by Moody’s Investors and BBB-plus by Standard and Poor’s. This would be Georgia Power’s first bond issue in the U.S. since August 1986 when it sold 250 mln dlrs of same-rated, same-maturity 10 pct bonds yielding 250 basis points more than comparable Treasury securities. Tomorrow will see another competitive. Syndicates will bid for 100 mln dlrs of 30-year bonds rated A-1/A-plus of Virginia Electric and Power Co, a unit of Dominion Resources Inc . Virginia Electric last visited the domestic debt market in October 1986 when the utility issued 100 mln dlrs of same-rated, same-maturity 9-1/4 pct bonds. The bonds were priced to yield 9.27 pct, or 141 basis points over Treasuries. The biggest investment grade deal tentatively scheduled for pricing this week is 600 mln dlrs of securities due 1992 backed by the automobile loan receivables of Marine Midland Banks . Salomon Brothers Inc will head the syndicate. The Marine Midland issue follows last week’s offering of 230 mln dlrs of car loan backed debt by RepublicBank Dallas NA, a unit of RepublicBank Corp , underwriters noted. Goldman, Sachs and Co led the group for the RepublicBank deal. First Boston Corp and Salomon Brothers, the most active underwriters of asset-backed securities, were co-managers. First Boston has dominated the asset-backed market since introducing the concept of selling these securities in March 1985. It has a commanding 86.1 pct share of the 12.5 billion dlr market, according to figures tabluated by First Boston. Salomon Brothers is in second place with a market share of 8.8 pct, followed by Drexel Burnham Lambert Inc’s share of 3.5 pct of the market. Goldman Sachs is next with a 1.6 pct market share that was calculated before the RepublicBank Dallas deal. Indeed, investment bankers say that banks will be the most frequent issuers of asset-backed securities this year. The finance arms of the U.S. automakers accounted for the bulk of last year’s offerings, with General Motors Corp’s General Motors Acceptance Corp taking the lion’s share of that. The Marine Midland cars deal is rated a top-flight AAA by both Moody’s and Standard and Poor’s because it is backed by a letter of credit by Union Bank of Switzerland. Recently, Imperial Savings and Loan Association of San Diego filed a registration statement with the SEC covering 100 mln dlrs of credit card backed debt, underwriters noted. Reuter 1-JUN-1987 08:51:47.38 acq usa F f0797reute r f BC-NATIONAL-SECURITY- STAKE ACQUIRED ELBA, Ala., June 1 – National Security Insurance Co said a group of investors has acquired 226,243 common shares, or a 22.2 pct, interest, for 27.50 dlrs per share. The company said the acquisition of the portion of the shares over a five pct interest is subject to approval by the Alabama Department of Insurance. It said the sellers included Atlantic American Corp , Bankers Fidelity Life Insurance Co and Georgia Casualty Insurance Co. Reuter 1-JUN-1987 08:52:15.20 nat-gasship uk Y f0798reute r f BC-GAS-CARRIER-ESCAPED-G 06-01 0059 GAS CARRIER ESCAPED GULF ATTACK LAST WEEK – LLOYDS LONDON, June 1 – The Panamanian liquified gas carrier Nyhammer, 48,772 dwt, was attacked by an Iranian gunboat on May 24, Lloyds Shipping Intelligence said. One rocket was fired but missed. The vessel subsequently arrived at its destination of Ras Tanura on May 25 and left this morning. REUTER 1-JUN-1987 08:52:52.28 acq usa F f0800reute f f BC-******COMPUTER-ASSOCI 06-01 0011 ******COMPUTER ASSOCIATES TO ACQUIRE UCCEL CORP FOR ABOUT 800 MLN DLRS Blah blah blah. 1-JUN-1987 08:53:56.02 tea sri-lanka T f0803reute u f BC-SRI-LANKAN-TEA-WORKER 06-01 0109 SRI LANKAN TEA WORKERS LAUNCH ONE-DAY PROTEST COLOMBO, June 1 – Thousands of tea workers of Indian origin went on strike today to press demands for citizenship and voting rights in Sri Lanka, a union statement said. The Ceylon Workers Congress (CWC) said its 400,000 members launched a prayer campaign at temples and other places in a non-violent protest to get the authorities to expedite citizenship procedures. A CWC spokesman said a three-day campaign was suspended after a Cabinet committee promised to speed up procedures under a new set of regulations. Trade sources said the strike did not affect production or today’s Colombo auction. Reuter 1-JUN-1987 08:55:45.31 usa F f0811reute r f BC-GENETECH--SEE 06-01 0096 GENETECH SEES FDA APPROVAL OF DRUG SOUTH SAN FRANCISCO, June 1 – Genetech Inc said it still remains confident that it will be able to work with the U.S. Food and Drug Adminstration to obtain approval of its tissue plasminogen activator Activase for use in treating heart attack victims. On Friday an advisory committee of the FDA recommended that the blood clot dissolving drug not be approved until additional mortality data be developed. Genetech said it will provide the additional data and believes that much if not all of it is already being developed. Reuter 1-JUN-1987 08:57:20.25 F f0816reute f f BC-******WHITTAKER-CHEMI 06-01 0010 ******WHITTAKER CORP 2nd QTR SHR PROFIT 37 CTS VS LOSS 35 CTS Blah blah blah. 1-JUN-1987 08:58:28.17 usa F f0819reute r f BC-TECHNOLOGY 06-01 0102 TECHNOLOGY/SUPERCOMPUTER MARKET GETTING CROWDED By Catherine Arnst, Reuters BOSTON, June 1 – The supercomputer industry is getting crowded as a handful of startup companies and some huge Japanese manufacturers compete for the right to apply the label “world’s fastest machine” to their products. Currently there are only about 250 supercomputers installed around the world, but many believe that situation is about to change dramatically as these highly specialized and extremely expensive machines move out of the research laboratories where most of them are found today and into commerical applications. “It is commercial supercomputing… that holds the most promise for this young industry’s handful of vendors,” said Gary Smaby, supercomputer analyst for Piper Jaffray and Hopwood. These commercial applications, he said, could propel annual sales of supercomputers from 850 mln dlrs in 1986 to 2.4 billion by 1990. For years two companies, Cray Research Inc and Control Data Corp were virtually the only options for customers seeking to buy supercomputers. But in the last three years a number of new companies have announced supercomputers using some innovative technologies, and the industry finally expanded enough to hold its first World Supercomputer Exhibition in Santa Clara last month. Also in the last month two small companies, ETA Systems Inc (a subsidiary of Control Data) and Thinking Machines Corp both laid claim to having the world’s fastest computer and a joint venture of Honeywell Inc and Japan’s NEC Corp Honeywell-NEC Supercomputers Inc, announced its entrance into the U.S. market. All three are aiming at industry leader Cray Research Inc, which holds more than 60 pct of the market. This week, Cray plans to make a joint announcement with Digital Equipment Corp, already the world’s largest minicomputer maker, of some products that will work on both companies’ computers, expanding the market opportunities for both supers and minis even further. Supercomputers were initially designed only for the most complex of applications, such as predicting worldwide weather patterns, fusion energy research or military defense and weapons design. They are built for speed, not for standard business functions such as payroll processing. The fastest supercomputers can perform more than a billion calculations per second, greater than the combined power of 100,000 personal computers. They also carry stratospheric price tags of between one mln to 20 mln dlrs each, which is why Cray’s revenues could reach 600 mln dlrs last year even though it only shipped 36 new and 10 used supercomputers, a level that would spell starvation for any standard computer company. But speakers at the supercomputer exhibition emphasized that a host of new applications should increase total industry shipments to 150 systems a year by the end of the decade. Most commercial customers of supercomputers now use the machines to simulate a physical process, such as the flow of air over an aircraft wing, in design and testing work. But financial institutions, particularly Wall Street brokerage houses, are considered the next major buyers of supercomputers as they try to recognize changes in stock trading patterns faster than any of their competitors. Two firms, Goldman Sachs and Co and Morgan Stanley and Co, are now using superminicomputers, hybrid machines that are faster than a minicomputer but cheaper than a super, to create financial models of the stock and bond markets. Analysts said it is only a matter of time before actual supercomputers are found on Wall Street. One reason for the shift to commercial applications is that supercomputers are coming down in price as new technologies provide greater speed at lower costs than the Cray and Control Data behemoths. Both the ETA and Thinking Machines Systems use a technology called parallel processing, in which a number of internal processors work together to solve a problem. With such systems a problem is broken up and different segments are assigned to different processors. By contrast, standard computers solve a problem one instruction at a time, or sequentially. The ETA system, the ETA 10, will eventually use as many as eight parallel processors capable of processing up to 8.32 billion operations per second. However, the first ETA 10, installed at Florida State University, has only two processors, later to be expanded to four. ETA president Lloyd Thorndyke said the ETA 10 represents a drastic change in architecture from parent company Control Data’s Cyber system. Priced from 5.5 mln to 22 mln dlrs, the ETA 10 contains about 240 chips in each of its processing units, built onto a board about the size of a standard newspaper section. Each of these boards contains the equivalent of 1.5 miles of embedded wiring. It took ETA about 3-1/2 years to develop its supercomputer but Thorndyke said he expects much faster development time frames in the futre, from both ETA and its competitors. “We’re in a leapfrog business and we just took the last leap,” he said. Thinking Machines also claims to have the world’s fastest computer and in some ways this is true. Its Connection Machine Model CM-2 can process 2.5 billion instructions per second, but it is a very specialized architecture only meant for certain very specific applications. The one mln to five mln dlr Connection Machine uses a technology called “massive parallism.” It contains 64,000 processors crammed into a five foot cube. The processors all work on a problem at once, breaking it down into minute bits. It is an ideal tool for applications with many unpredicatble variables, according to Brian Boyle, analyst for Novon Research Group. “The more unpredictable things are, the more the Thinking Machine will be appropriate,” he said. Reuter 1-JUN-1987 09:03:20.03 F f0830reute b f BC-******FLUOR-RETAINS-S 06-01 0010 ******FLUOR RETAINS SHEARSON TO ASSESS VALUE OF GOLD OPERATIONS Blah blah blah. 1-JUN-1987 09:03:49.51 cocoa netherlands icco C T f0833reute u f BC-DUTCH-COCOA-PROCESSOR 06-01 0104 DUTCH COCOA PROCESSORS UNHAPPY WITH ICCO BUFFER By Jeremy Lovell, Reuters ROTTERDAM, June 1 – Dutch cocoa processors are unhappy with the intermittent buying activities of the International Cocoa Organization’s buffer stock manager, industry sources told Reuters. “The way he is operating at the moment is doing almost nothing to support the market. In fact he could be said to be actively depressing it,” one company spokesman said. Including the 3,000 tonnes he acquired on Friday, the total amount of cocoa bought by the buffer stock manager since he recently began support operations totals 21,000 tonnes. Despite this buying, the price of cocoa is well under the 1,600 Special Drawing Rights, SDRs, a tonne level below which the bsm is obliged to buy cocoa off the market. “Even before he started operations, traders estimated the manager would need to buy at least up to his 75,000 tonnes maximum before prices moved up to or above the 1,600 SDR level, and yet he appears reluctant to do so,” one manufacturer said. “We all hoped the manager would move into the market to buy up to 75,000 tonnes in a fairly short period, and then simply step back,” he added. “The way the manager is only nibbling at the edge of the market at the moment is actually depressing sentiment and the market because everyone is holding back from both buying and selling waiting to see what the manager will do next,” one processor said. “As long as his buying tactics remain the same the market is likely to stay in the doldrums, and I see no indication he is about to alter his methods,” he added. Processors and chocolate manufacturers said consumer prices for cocoa products were unlikely to be affected by buffer stock buying for some time to come. Reuter 1-JUN-1987 09:04:17.30 usa F f0837reute r f BC-JUDGEMENT-ENTERED-AGA 06-01 0093 JUDGEMENT ENTERED AGAINST ARISTECH PITTSBURGH, June 1 – Aristech Chemical Corp said a judgment was entered against it in Texas State Court for nine mln dlrs plus prejudgment interest of 6,500,000 dlrs and legals fees of three mln dlrs. It said the judgment arose from a suit filed by Union Pacific Corp against USX Corp , Aristech’s former parent, in 1983, claiming damages for an alleged 1980 breach of a cumene purchasing contract by Aristech’s predecessor, the USS Chemicals division of USX, which was then known as U.S. Steel Corp. The company said it considers the judgment unjustified and it will seek to have it overturned. Reuter 1-JUN-1987 09:04:54.15 acq F f0840reute b f BC-******ENTERTAINMENT-M 06-01 0012 ******ENTERTAINMENT MARKETING SEEKS TO BUY CRAZY EDDIE FOR EIGHT DLRS A SHARE Blah blah blah. 1-JUN-1987 09:09:43.36 acq usa F f0859reute u f BC-SPECTRA-PHYSICS- 06-01 0092 SPECTRA-PHYSICS BOARD REJECTS TENDER OFFER SAN JOSE, Calif., June 1 – Spectra-Physics Inc said its board rejected a 32 dlrs per share unsolicited tender offer for the company’s stock from Ciba-Geigy Ltd , which already holds 18.8 pct of the stock. Spectra-Physics said it also filed a lawsuit in Delaware federal court this morning seeking to enjoin the offer and alleging, among other things, that the offer vilates federal securities laws, certain agreements between Ciba-Geigy and Spectra-Physics, and Ciba-Geigy’s fiduciary duties. Spectra-Physics said the two Ciba-Geigy designess to its board were not present at yesterday’s special meeting which voted to reject the offer as financially inadequate, unfair and not in the best interests of Spectra-Physics or its stockholders. The company said the board also authorized a special committee of outside directors to take whatever steps it deems necessary to protect the interests of Spectra-Physics and its stockholders and to investigate all alternatives to maximize the value of the stock, including talks with third parties. Spectra-Physics said a letter communicating the board’s recommendation and reasons therefore is being mailed to stockholders. It said Robert Bruce, Reliance Group Holdings Inc’s designee on Spectra-Physics’ board, resigned his position on May 29. His letter of resignation said the action was to alleviate Ciba-Geigy’s stated justification for making the unsolicited offer that it had not contemplated another significant investor having representation on the board when its Spectra-Physics’ investment was made. Reuter 1-JUN-1987 09:10:51.33 grainwheatcorn france G C f0860reute u f BC-FRENCH-SAY-WHEAT-STOC 06-01 0109 FRENCH SAY WHEAT STOCKS FORECAST NO SURPRISE PARIS, June 1 – The U.S. Department of Agriculture’s forecast that French end-of-season soft wheat stocks will almost double in 1987/88 is premature but would not be surprising, according to French cereal organisation officials. The Cereals Intervention Board, ONIC, Wheat Producers’ Association and the National Union of Agricultural and Cereal Cooperatives have not yet forecast 1987/88 exports or end-of-season stocks. However, the officials said the USDA’s figure of end 1987/88 stocks at 5.03 mln tonnes against 1986/87’s 2.87 mln was not surprising given a record high yield forecast in April. The French Feed Cereals Research Institute, ITCF, forecast in mid-April an average yield of 6.58 tonnes per hectare for soft wheat in 1987/88 compared with 5.6 tonnes in 1986/87 and the record high yield of 6.5/6.6 tonnes in 1984. This would result in a French soft wheat harvest of around 31 mln tonnes against 25.5 mln in 1986/87, given a Ministry of Agriculture estimate of area planted of 4.66 mln hectares against 4.61 mln in 1986/87. ONIC’s first preliminary forecast of the 1987/88 campaign will be released at the beginning of September, an ONIC official said. Soft wheat exports in 1987/88 were extremely difficult to estimate at this stage, both within the European Community and to non-EC countries, an ONIC official said. He said, however, that among countries to which France could increase its wheat exports were Egypt and the Maghreb countries (Morocco, Algeria and Tunisia), he said. The USDA’s forecast of an 11.65 mln tonne maize crop in 1987/88 against 11.48 mln in 1986/87, while again premature, was not out of line with estimates of the French Maize Producers Association, AGPM, an AGPM official said. Maize plantings would be down in 1987/88 but yields were expected to be higher, the AGPM official said. It estimated 1987/88 maize plantings of 1.73 mln hectares, down seven pct from the 1.87 mln hectares planted in 1986/87. Reuter 1-JUN-1987 09:11:27.85 F f0866reute r f BC-QT8903/1 06-01 0081 U.S. STOCKS EX-DIVIDEND – Jun 1 NYSE STOCKS… ags 2-for-1 stock split ctb 11 cts aln 14 cts dis 08 cts at 3-for-2 stock split eec 17 cts acb 55 cts fnb 37-1/2 cts aig 06-1/4 cts fpc 60 cts avt 12-1/2 cts gec 34 cts bkp 47 cts gps 12-1/2 cts bni 50 cts gsx 45 cts ciw 01 cts gr 39 cts cne 42 cts g 33 cts cic 65 cts hpc 44 cts cnk 2-for-1 stock split log 25 cts dny 2-for-1 stock split lce 47-1/2 cts pop 2-for-1 stock split mm 51 cts sbo 2-for-1 stock split mcd 58 cts hlt 45 cts mmr 18 cts efh 22 cts mrs 20 cts jml 15 cts ncb 21 cts klt 41-1/2 cts npk 39 cts kmg 27-1/2 cts oec 49 cts kmb 36 cts pin 75 cts lrt .0935 cts see 13 cts U.S. STOCKS EX-DIVIDEND =3 – Jun 1 NYSE STOCKS COND’t… slm 09 cts AMEX STOCKS… sns 45 cts ai 10 cts mip 09 cts tlr 12 cts cvr30 cts wre 32 cts tii 17 cts cgf 37-1/2 cts tka 02 cts cfk 06-1/4 cts wbo 30 cts dpc 08 cts trx 75 cts mpi 03 cts nyt pr a 09 cts wlc 12-1/2 cts rbc 3-for-2 stock split Reuter 1-JUN-1987 09:17:04.26 italy RM f0889reute u f BC-ITALIAN-TREASURY-DETA 06-01 0083 ITALIAN TREASURY DETAILS BORROWING REQUIREMENT Rome, June 1 – The Italian Treasury said the public sector borrowing requirement in the first four months totalled a provisional 40,100 billion lire compared with 40,380 billion in the comparable 1986 period. The Treasury said revenues in the first four months totalled a provisional 64,151 billion lire, while spending was a provisional 108,439 billion lire. Treasury management operations showed a positive balance of 4,188 billion lire. The borrowing requirement was financed through medium and long term bond and loan issues on the domestic market totalling 36,721 billion lire, through foreign borrowing of 60 billion lire, and through a 3,319 billion lire increase in other treasury debts. REUTER 1-JUN-1987 09:18:33.15 acq usa F f0895reute u f BC-BOEING--TO-ACQUIR 06-01 0073 BOEING TO ACQUIRE DEFENSE ELECTRONICS FIRM SEATTLE, June 1 – Boeing Co and ARGOSystems Inc said they reached an agreement for Boeing to acquire the Sunnyvale, Calif., defense electronics firm for about 275 mln dlrs. The boards of both companies have approved the merger, which will be accomplished through a tender offer by a Boeing subsidiary of 37 dlrs a share cash for all of ARGOSystems’ shares, the companies said. Under the agreement, the Boeing subsidiary, TBC Holdings Corp, will begin the tender offer promptly. If at least 90 pct of the shares are not tendered, the offer will be prorated to 49 pct, the companies said. ARGOSystems has granted Boeing an option to buy 1,238,311 shares or 18.5 pct of the outstanding stock for 37 dlrs a share, they said. Also, Bill May, chairman of ARGOSystems, and three other officers have granted Boeing an option to buy their shares, another 8.9 pct of the outstanding stock, for 37 dlrs a share. ARGOSystems makes equipment to monitor and analyze military communications signals, electronic warfare equipment to monitor and jam radar signals and signal processing systems. For the nine months ended March 31, 1987, ARGOSystems reported earnings more than doubled to 6.3 mln dlrs or 95 cts a share from 3.1 mln dlrs or 46 cts. The year-ago period included a 2.2 mln dlr charge from a writedown of securities. Sales rose 23.5 pct to 70.9 mln dlrs. Sales are expected to exceed 100 mln dlrs for the fiscal year ending June 30, the companies said in a joint statement. The company’s backlog is currently more than 180 mln dlrs, they said. It has about 1,200 employees. About 30 pct of ARGOSystems’ business comes from international customers. “ARGOSystems is a clear leader in its field. This association will expand our overall activities and significantly enhance our ability to compete in the defense electronics area,” Boeing president Frank Shrontz said in a statement. ARGOSystems will operate as a wholly owned subsidiary of Boeing Co. The merger following the tender offer will be subject to approval by ARGOSystems shareholders, the companies said. The tender offer and merger are subject to customary conditions and expiration of the Hart-Scott-Rodino notification waiting period, they said. Reuter 1-JUN-1987 09:21:29.20 acq usa F f0905reute u f BC-COMPUTER-ASSOCIATES-< 06-01 0080 COMPUTER ASSOCIATES , UCCEL SET MERGER NEW YORK, June 1 – Computer Associates International Inc and UCCEL Corp said they have signed a definitive merger agreement under which Computer Associates will pay about 800 mln dlrs in stock for all outstanding UCCEL shares. The companies said under the terms of the agreement, all UCCEL shareholders will receive about 1.69 shares of Computer common stock for each of the approximately 17 mln UCCEL shares outstanding. According to the companies, this would amount to about 47.50 dlrs per UCCEL share, based on May 29 New York Stock Exchange closing prices. Closing of the transaction is anticipated in August, the companies said. The companies said the resulting company wil retain the name Computer Associates International Inc. Additionally, the companies said Charles Wang, currently Computer Associates chairman and chief executive, will continue as chairman of the new company. Reuter 1-JUN-1987 09:21:45.97 usa F f0906reute h f AM-USEDCARS 06-01 0123 U.S. BOUGHT 16.5 MLN USED CARS, STUDY SAYS DETROIT, June 1 – American motorists bought 16,524,000 used cars last year at an average cost of 5,833 dlrs each for a total market of 96.4 billion dlrs, according to a yearly study by the Hertz Corp. The study also showed an increase in used car sales of about 600,000 units over 1985 volumes while the average price rose about 400 dlrs. But the survey said the typical used car that changed hands in 1986 was slightly newer at 4.5 years old and 41,140 miles than in the prior year, when such a car had run 45,270 miles and was 4.6 years old. “The sample shows that retail sales volume for used cars turned up after two years of decline,” said Leigh Smith, a Hertz Corp. spokesman. “And while costs of ownership went up to 25.5 cents a mile for used cars from 25.05 cents in 1985, they remain 47 pct under the estimated 48.5 cents a mile cost to own and operate a new car.” The increase in activity appeared to be linked to the record market for new cars, which passed 11.4 mln domestic and imported models last year because of the unprecedented cut-rate loan incentive packages offered by the Detroit-based automakers and changes in U.S. tax laws. The incentive campaigns were largely sparked by General Motors Corp in an attempt to reverse its slipping share of the American car market. Reuter 1-JUN-1987 09:28:59.43 coppersugargraincorn zambia C G L M T f0917reute u f BC-ZAMBIA-CUTS-PRICES-AS 06-01 0132 ZAMBIA CUTS PRICES AS TROOPS PATROL COPPERBELT LUSAKA, June 1 – The Zambian government today announced minor price cuts for essential commodities as part of its new economic strategy, while police and troops patrolled the northern Copperbelt to prevent any outbreaks of rioting. However, staple foods, such as bread, sugar and maize meal, were not affected by the cuts and many people said this could provoke trouble from disgruntled elements who had expected more sweeping reductions. Observers in the capital expressed disillusionment with the small extent of the price cuts, which ranged up to 10 pct on items such as blankets, soap, detergents and baby food. Residents in the Copperbelt contacted by telephone said government forces had set up roadblocks around the main towns. In Lusaka, business went on as usual and there was no sign of troops or police reinforcements on the streets. President Kaunda had ordered the price reductions to take account of lower import costs following the revaluation of the kwacha to a fixed rate of eight per dlr from 21 on May 1. The revaluation formed part of a new go-it-alone economic strategy which Kaunda adopted to replace Zambia’s IMF austerity program. Labour leaders in the Copperbelt said last week gangs of unemployed youths were being formed in the politically volatile region to take action against shops that did not reduce their prices after today’s deadline. Fifteen people were killed in the Copperbelt during food riots last December after the government tried to lift maize subsidies. Reuter 1-JUN-1987 09:31:29.90 canada F E f0924reute r f BC-CANADA-SOUTHERN- TO OFFER SHARES CALGARY, June 1 – Canada Southern Petroleum Ltd said its board has authorized an offering of about three mln shares of limited voting stock to shareholders of record on June 23. The company said the rights offering will expire August Three. The rights are nontransferable. It said shareholders will be entitled to buy one new share for every three held at one dlr U.S. or 1.34 dlrs Canadian. Shareholders subscribing for their entire allotments will have the option of subscribing for shares not bought by others on a contingent allotment basis in any amount up to 100 pct of their original allotments. Reuter 1-JUN-1987 09:34:41.28 trade south-koreausa C G L M T f0937reute u f PM-KOREA-TARIFF CORRECTION 06-01 0140 SEOUL ANNOUNCES MORE TARIFF CUTS FOR U.S. SEOUL, June 1 – South Korea will cut import taxes on 50 goods, including construction equipment, cigarettes and tobacco, to help reduce its trade surplus with the United States, the Finance Ministry said today. The tariff cuts of between five and 30 pct will take effect on July 1. South Korea ran a trade surplus of 7.3 billion dlrs with Washington in 1986, sharply up from 4.3 billion in 1985. Today’s announcement brings to 157 the number of goods for which similar measures were taken this year, a ministry official said. The 157 are among about 290 items on which Washington has asked Seoul to lower tariffs. “This is in line with the government’s policy to limit our trade surplus with the United States to help reduce trade friction between the two countries,” said the official. Reuter 1-JUN-1987 09:39:24.04 C L f0952reute u f BC-slaughter-guesstimate 06-01 0072 HOG AND CATTLE SLAUGHTER GUESSTIMATES CHICAGO, June 1 – Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today’s hog slaughter at about 275,000 to 285,000 head versus 12,000 week ago and 276,000 a year ago. Cattle slaughter is guesstimated at about 126,000 to 132,000 head versus 6,000 week ago and 133,000 a year ago. Note: week ago figures reduced by Memorial Day holiday. Reuter 1-JUN-1987 09:40:01.44 acq usa F f0954reute u f BC-ENTERTAINMENT-MAKES-B 06-01 0098 ENTERTAINMENT MAKES BUYOUT OFFER TO CRAZY EDDIE HOUSTON, Texas, June 1 – Entertainment Marketing Inc said it has made an offer to the board of Crazy Eddie Inc to acquire all outstanding shares of Crazy Eddie Inc for eight dlrs a share in cash. Entertainment said the offer would be conducted through a negotiated merger with a new corporation to be formed by Entertainment Marketing. Entertaiment said it has requested an early meeting with Crazy Eddie Inc’s board and that it has committed 50 mln dlrs toward the purchase of the shares including those already purchased. The company also said it has retained Dean Witter Reynolds Inc to assist in raising the balance of the financing. According to Entertainment, its company and its chairman own about 4.3 pct of Crazy Eddie’s currently outstanding shares. Additionally, the company said it is willing to negotiate all aspects of its offer and is willing to consider a transaction which would be tax free to Crazy Eddie’s shareholders. Reuter 1-JUN-1987 09:42:43.91 usa F f0963reute u f BC-SMITHKLINE-,-BOE 06-01 0100 SMITHKLINE , BOEHRINGER FINALIZE PACT PHILADELPHIA, June 1 – SmithKline Beckman Corp said it and signed a final agreement to develop and market new cardiovascular medicines discovered by Boehringer. Under the agreement, SmithKline said, it will have responsibility for developing the products in the U.S. Both partners will market the products in the U.S. and abroad. Initially, SmithKline said, the companies will concentrate on the clinical development and marketing of carvedilol which is a compound to treat mild to moderate hypertension and angina. An application for marketing approval of carvedilol was submitted in West Germany last December, SmithKline said. Applications expected in other European markets this year and submission to the U.S. Food and Drug Administration is projected for 1990. It said work also underway on thromboxane receptor antagonists, compounds which could be useful in accelerating disolution of blood clots and preventing blod clots from occuring in a heart attack as well as in other arterial diseases. The company said two of these compounds are in clinical evaluation in Europe and the U.S. Reuter 1-JUN-1987 09:43:45.49 usa F f0965reute r f BC-OCCIDENTAL--SETS 06-01 0065 OCCIDENTAL SETS DEBT RETIREMENT DATE LOS ANGELES, June 1 – Occidental Petroleum Corp said the previously reported retirement of nine series of Natural Gas Pipeline Co of America debt will occur on July two. Retirement of the subsidiary’s was announced by Occidental last week. It said notices of redeemptions and pre-payments will be mailed shortly to all registered holders. Reuter 1-JUN-1987 09:44:12.12 crudenat-gas india Y f0968reute u f BC-INDIA-PLANS-MORE-BOMB 06-01 0109 INDIA PLANS MORE BOMBAY OFFSHORE OIL WELLS BOMBAY, June 1 – India’s state-owned Oil and Natural Gas Commission (ONGC) plans to drill more wells in the Bombay offshore area, where a well spudded in February this year gave both oil and gas, an ONGC spokesman said. The exploratory well, spudded at a depth of 2,140 metres, yielded 2,000 barrels of oil and 180,000 cubic metres of gas per day, he said. “The well, one of the four structures drilled in the area 80 km north-west of Bombay, indicates good prospects of both oil and gas. We’ve decided to drill at least three more wells in there before starting production on a commercial scale.” Production of Bombay High, part of the Bombay offshore field, has stabilised at around 500,000 barrels per day for the last two years. ONGC produced 27.85 mln tonnes of crude in 1986/87 ending March, up from 27.51 the previous year. Bombay High accounted for 20.61 mln tonnes, marginally up from 20.10 the year before. India’s total oil output is around 30 mln tonnes. ONGC has been exploring the Bombay offshore area, developed since the late 1970s, for more oil as production from Bombay High has reached a plateau. REUTER 1-JUN-1987 09:44:29.16 usa nasdaq F f0971reute w f BC-TOWN-AND-COUNTRY-CHAN 06-01 0033 TOWN AND COUNTRY CHANGES NASDAQ SYMBOL CHELSEA, Mass., June 1 – Town and Country Jewelry Manufacturing Corp said effective today its NASDAQ ticker symbol has been changed to from Reuter 1-JUN-1987 09:45:25.82 acq usa F f0973reute r f BC-SOCIETY-FOR-SAVINGS-< 06-01 0046 SOCIETY FOR SAVINGS FORMS PARENT HARTFORD, Conn., June 1 – Society for Savings Bancorp Inc said it has completed its previously announced plan of acquisition making a new Delaware-chartered bank holding company the parent of Conneticut chartered Society for Savings. Reuter 1-JUN-1987 09:45:49.01 crude usasaudi-arabia F Y f0974reute u f BC-SAUDI-RENEGOTIATION-O 06-01 0102 SAUDI RENEGOTIATION OF ARAMCO DEAL MOVING ALONG NEW YORK, JUNE 1 – Saudi Arabia’s renegotiation of its collective agreement with Aramco to purchase oil for the latter’s ex-partners is moving along and should lead to a fundamental structural change in the contract, oil industry sources said. Petroleum Intelligence Weekly, in this Monday’s edition, said negotiations are moving along for adjustment of the 1.34 mln bpd joint long term agreement at official prices and volumes and other terms may be rearranged. The agreement signed in January for the months from February to June is up for renegotiation. Under the January contract Aramco was to purchase 1.34 mln bpd for the four partners allocated among them as Exxon Corp 440,000 bpd, Texaco Inc 350,000 bpd, Mobil Corp and Chevron Corp 550,000 bpd between them. But an overlifting by Texaco Inc in the first quarter allowed other companies like Exxon Corp to underlift its obligations under the contract PIW said that that one alternative under consideration is to revert to four individual contracts rather than a collective agrement. John Lichtblau, director of the Petroleum Industry Research Foundation Inc said that renegotiation of the pact was more of a formality as the Saudis have each company on a separate schedule although separate agreements with the companies would favor one on one negotiations and ensure that contracted liftings occur . “The companies will probably follow the Saudi wants within limits as they do not want to antagonize them for the long haul,” he said. Lichtblau said that the renegotiations would most likely concentrate on volume rather than price. Saudi displeasure with the agreement has long been noted and in April industry publications said that renegotiation were being sought, a fact later confirmed by Reuters with Aramco. Aramco Corp was formerly owned by Chevron Corp , Exxon Corp , Mobil Corp and Texaco Inc but is now owned by Saudi Arabia which bought its assets although the ex-partners have various agreements with Saudi Arabia. Reuter 1-JUN-1987 09:46:27.25 usa F f0978reute r f BC-SCHERING-PLOUGH- 06-01 0074 SCHERING-PLOUGH GETS FDA APPROVAL MADISON, N.J., June 1 – Schering-Plough Corp said its Elocon topical steroid for inflammatory skin disorders has been approved for marketing by the U.S. Food and Drug Administration in cream and ointment forms for once-daily applications. The company said overseas health agency registrations for Elocon are scheduled to be submitted in a number of major markets this year and in other areas in 1988. Reuter 1-JUN-1987 09:46:52.56 grainwheat usa C G L f0980reute u f AM-FLOODS 06-01 0173 OKLAHOMA CLEANING UP AFTER WEEK OF FLOODS, RAINS OKLAHOMA CITY, June 1 – Residents of central Oklahoma returned to their homes over the weekend after a week of heavy rains and severe flooding that left two dead and caused more than 20 mln dlrs in damage, officials said. Some 900 people were evacuated from their homes during the rains and flooding last week, civil defense officials said. Many of the shelters set up throughout the state in areas threatened by flooding, except those near the Washita and Red Rivers, closed as residents returned to their damaged homes. Farmers who had expected a near-record wheat crop now say this year will see one of the largest losses in decades. Gov. Henry Bellmon, who on Thursday declared a flooding emergency for central Oklahoma, was expected to ask President Reagan for federal disaster relief for the area. In northern Texas, officials reported several tornadoes on Friday. A twister in Lubbock yesterday damaged six mobile homes and two houses. No injuries were reported. Reuter 1-JUN-1987 09:48:45.44 usajapan cbt A RM f0985reute u f BC-CBT-PROPOSES-JAPANESE 06-01 0115 CBT PROPOSES JAPANESE GOVERNMENT BOND FUTURES WASHINGTON, June 1 – The Chicago Board of Trade (CBT) has asked federal regulators for authority to trade a futures contract in long-term Japanese government bonds. The Commodity Futures Trading Commission (CFTC) said it has received an application from CBT for a contract comprised of yen bonds with a face value at maturity of 100 mln yen. The price of the proposed contract would be quoted in points per 100 yen par value, with one point equal to one mln yen. The minimum price fluctuation would be 10,000 yen per contract, and the contract would have no daily price limits. CFTC has requested public comment on the proposal. Reuter 1-JUN-1987 09:57:19.95 money-fx uk RM f1003reute b f BC-U.K.-MONEY-MARKET-GIV 06-01 0050 U.K. MONEY MARKET GIVEN 25 MLN STG LATE ASSISTANCE LONDON, June 1 – The Bank of England said it provided the money market with late assistance of around 25 mln stg. This takes the Bank’s total help today to some 137 mln stg and compares with its latest forecast of a 150 mln stg shortage. REUTER 1-JUN-1987 09:59:52.42 canada E F f1007reute r f BC-pega-to-buy-stake 06-01 0105 PEGA TO BUY STAKE IN TAMPER-PROOF PACKAGING TORONTO, June 1 – Pega Capital Resources Ltd said it agreed in principle to acquire a 50 pct undivided interest in all rights and patents to a tamper resistant and tamper-evident packaging process for 1,250,000 dlrs. The company said the purchase price is payable in 1,250,000 common shares priced at one dlr each. The shares will be paid under an escrow agreement where Pega may terminate the purchase agreement and cancel the shares up to October 31, 1987. It said the process results in readily visible breakage if packaging material is pierced by a sharp object. Reuter 1-JUN-1987 10:00:58.94 V RM f1011reute f f BC-******U.S.-APRIL-CONS 06-01 0014 ******U.S. APRIL CONSTRUCTION SPENDING ROSE 0.4 PCT AFTER REVISED 1.1 PCT MARCH DROP Blah blah blah. 1-JUN-1987 10:02:00.49 usa F f1018reute d f BC-BAUSCH-AND-LOMB- 06-01 0089 BAUSCH AND LOMB ANNOUNCES NEW PRODUCTS ROCHESTER, N.Y., June 1 – Bausch and Lomb said it plans to launch a new line of soft contact lens care products in the United States. The company said the line will be marketed under the ReNu tradename, and will involve fomulations which will enhance the convenience of contact lens cleaning and disinfecting. Bausch and Lomb said the two products, which are scheduled for shipment in late July, are ReNu Multi-Action Disinfecting Solution and ReNu Sterile Preserved Saline. According to the company, the ReNu disinfecting solution is a single-step product for cold disinfection and the ReNu saline solution contains a new preservative with very low potential for eye irritation. The company said another product in this line, ReNu Enzymatic Tablets, was introduced in December. Additionally, the company said patents are currently pending on all three ReNu products, and that other solutions will be added to the ReNu line following Food and Drug Administration approval. Reuter 1-JUN-1987 10:02:28.15 usa V RM f1021reute r f BC-/U.S.-CONSTRUCTION-SP 06-01 0085 U.S. CONSTRUCTION SPENDING ROSE 0.4 PCT IN APRIL WASHINGTON, June 1 – U.S. construction spending rose 1.7 billion dlrs, or 0.4 pct, in April to a seasonally adjusted rate of 384.1 billion dlrs, the Commerce Department said. Spending in March fell a revised 4.4 billion dlrs, or 1.1 pct, to 382.4 billion dlrs, the department said. Previously it said spending fell 1.3 pct in March. April construction spending was 10.2 billion dlrs, or 2.7 pct, above the April, 1986, level of 373.9 billion dlrs. Private construction spending rose to 307.9 billion dlrs in April from 306.0 billion dlrs the previous month and included a gain in single-family homes, the department said. Spending on one-unit home construction rose to 113.1 billion dlrs from 111.5 billion dlrs while multi-unit spending edged down to 28.3 billion dlrs from 28.6 billion dlrs. Spending on nonresidential construction rose to 88.0 billion dlrs from 87.1 billion dlrs, but outlays on office construction fell to 24.5 billion dlrs from 25.6 billion dlrs in March, the department said. Reuter 1-JUN-1987 10:03:06.53 usa F f1026reute d f BC-TEXACO--SUPPOPTS 06-01 0094 TEXACO SUPPOPTS BOND AND LIEN RULES STUDY AUSTIN, Texas, June 1 – Texaco Inc said it will support the efforts of a Texas legislature joint committee, which will study and propose remedies for problems with the procedural bond and lien rules of the Texas judiciary. The rules, which require a defendant in a civil case to post a bond in the full amount of the judgment plus interest in order to exercise its right to appeal the judgment, directly led to Texaco to file for protection under Chapter 11 of the Federal Bankruptcy Code, Texaco said. Texaco said it was unfortunate that it took its bankruptcy to illustrate the need for reform. Texaco also said Pennzoil Co’s obstructive tactics prevented similar legislation earlier in the legislature’s session, which would have provided the trial judge in Texas flexibility to set the bond at a level appropriate to secure the interest of the judgment creditor based on the circumstances of the case. Under current law, Texaco said it would have had to post the full 11.1 billion dlrs to exercise its right to appeal the judgment. Reuter 1-JUN-1987 10:03:56.29 acq usajapanhong-kongmalaysiaphilippinessingaporetaiwan F f1030reute r f BC-CPC-INTERNATIONAL- COMPLETES ASIAN SALE ENGLEWOOD CLIFFS, N.J., June 1 – CPC International Inc said it has completed previously-announced transactions involving its grocery products businesses in four Asian countries with Ajinomoto Co Inc , raising about 300 mln dlrs. It said it will receive about 40 mln dlrs more later, mostly this month, when closings are expected in three more countries. Proceeds will be used mostly for debt reduction. CPC said Ajinomoto has purchased its equity in Knorr Foods Co Ltd, a joint venture in Japan between the two companies, with CPC to get fees for trademark and technology use. CPC said Ajinomoto is also purchasing 50 pct interests in CPC’s wholly-owned subsidiaries in Hong Kong, Malaysia, the Philippines, Singapore, Taiwan and Thailand. Reuter 1-JUN-1987 10:04:42.04 usa nyse F f1034reute u f BC-THOMPSON-MEDICAL- 06-01 0047 THOMPSON MEDICAL PLANS STATEMENT SHORTLY NEW YORK, June 1 – Thompson Medical Co Inc expects to release a statment in a few minutes, a company spokesman said. The New York Stock Exchange has delayed opening the stock saying news is pending. The stock closed Friday at 19-3/4. Reuter 1-JUN-1987 10:05:15.87 usa A RM f1038reute r f BC-INNOVATIVE-SOFTWARE-< 06-01 0063 INNOVATIVE SOFTWARE TO OFFER CONVERTIBLES NEW YORK, June 1 – Innovative Software Inc said it plans to sell later this month or in July about 25 mln dlrs of convertible subordinated debentures due 2012. Proceeds will be used for general corporate purposes, including possible acquisitions of complementary products, technologies or companies, Innovative Software said. Reuter 1-JUN-1987 10:05:55.63 usa F f1040reute r f BC-CULLINET--RELEAS 06-01 0102 CULLINET RELEASES NEW ANALYSIS SYSTEM WESTWOOD, Mass., June 1 – Cullinet Software Inc said it has introduced Release 10.1 of Performance Monitor, an on-line system that enables system programmers to analyze performance information quicky. Cullinet said the Release 10.1 provides program analysis functions for users of Cullinet’s IDMS/R database software. The company said it also has enhanced the new system with a “windowing” function that allows people to view several resources concurrently. It added the new system is priced at 27,000 dlrs and will be generally available later this month. Reuter 1-JUN-1987 10:10:35.10 usajapan cbt C G L M T f1051reute u f BC-/CBT-PROPOSES-JAPANES 06-01 0115 CBT PROPOSES JAPANESE GOVERNMENT BOND FUTURES WASHINGTON, June 1 – The Chicago Board of Trade, CBT, has asked federal regulators for authority to trade a futures contract in long-term Japanese government bonds. The Commodity Futures Trading Commission, CFTC, said it has received an application from CBT for a contract comprised of yen bonds with a face value at maturity of 100 mln yen. The price of the proposed contract would be quoted in points per 100 yen par value, with one point equal to one mln yen. The minimum price fluctuation would be 10,000 yen per contract, and the contract would have no daily price limits. CFTC has requested public comment on the proposal. Reuter 1-JUN-1987 10:11:52.93 acq F f1053reute f f BC-******BORDEN-TO-ACQUI 06-01 0009 ******BORDEN TO ACQUIRE PRINCE CO FOR ABOUT 180 MLN DLRS Blah blah blah. 1-JUN-1987 10:12:17.80 F f1054reute f f BC-******thompson-medica 06-01 0014 ******THOMPSON MEDICAL SAYS 1,290,000 SHARES TENDERED IN RESPONSE TO BID FOR ONE MLN Blah blah blah. 1-JUN-1987 10:12:40.70 uk RM f1055reute b f BC-MERCEDES-BENZ-CREDIT 06-01 0081 MERCEDES-BENZ CREDIT ISSUES 100 MLN DLR EUROBOND LONDON, June 1 – Mercedes-Benz Credit Corp is issuing a 100 mln dlr eurobond due June 25, 1992 paying 8-1/4 pct and priced at 100-1/2 pct, lead manager Deutsche Bank Capital Markets said. The non-callable bond is available in denominations of 1,000 and 10,000 dlrs and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is June 25. REUTER 1-JUN-1987 10:17:41.90 RM f1078reute f f BC-FRENCH-13-WEEK-T-BILL 06-01 0013 ******FRENCH 13-WEEK T-BILL AVERAGE RATE FALLS TO 7.72 PCT FROM 7.75 PCT – OFFICIAL Blah blah blah. 1-JUN-1987 10:18:24.63 acq usa F f1083reute u f BC-POREX--TO-MER 06-01 0045 POREX TO MERGE WITH MEDCO FAIRLAWN, N.J., June 1 – Porex Technologies Corp said it has agreed to merge with its partly-owned subsidiary Medco Containment Services Inc in a deal worth about 380 mln dlrs in cash and common stock to Porex shareholders. The company said under the agreement, Prex holders would receive new Medco shares representing a pro rata share of the 9,159,552 Medco shares now owned by Porex plus a pro rata shares of the cash value of other porex assets, which is estimated at 60 mln dlrs subject to adjustment. Medco now has 16.9 mln shares outstanding. While exact terms may not be determined until the transaction becomes effective, Porex said each Porex share is expected to be exchanged for 0.82 Medco share and 5.38 dlrs in cash, subject to approval by sharehoilders of both companies. As part of the deal, Medco will split its stock five for two. The company said the merger will be accounted for as a corporate reorganization and be recorded at historical book values. Reuter 1-JUN-1987 10:18:32.39 usa F f1084reute d f BC-WOODSTREAM--SEES 06-01 0072 WOODSTREAM SEES SECOND QUARTER LOSS LITITZ, Pa., June 1 – Woodstream Corp said it expects a second quarter loss on sales below those of a year earlier. In last year’s second quarter, Woodstream earned 349,000 dlrs on sales of 13.1 mln dlrs. The company said it is seeking to reduce expenses and boost sales. It said it is scaling back California fishing rod operations to cut overhead expenses anbd minimize losses. Woodstream said its fishing technologies group is experieincing significantly higher selling, promotion and factory expenses, while fishing product sales have fallen due to inventory corrections by several major customers. It said sales of its color liquid display fish/depth finder are expected to exceed three mln dlrs in the first half but will be substantially less than expected. Reuter 1-JUN-1987 10:22:28.49 acq usauk F f1103reute r f BC-COLT-INDUSTRIES- 06-01 0082 COLT INDUSTRIES TO SELL BRITISH UNIT NEW YORK, June 1 – Colt Industries Inc said it signed a conditional agreement to sell its Woodville Polymer Engineering Ltd subsidiary in Great Britain to the Dowty Group PLC of Gloucestershire, England, for 35.9 mln stg. The deal is scheduled to close by the end of June, the company said. Woodville, which makes high technology precision products for aerospace, automotive and other industries, had 1986 sales of about 24 mln stg, it said. Reuter 1-JUN-1987 10:22:38.78 usacanadachileaustraliaspainuruguay F f1104reute r f BC-FLUOR--TO-ASSESS 06-01 0109 FLUOR TO ASSESS VALUE OF GOLD OPERATIONS IRVINE, Calif., June 1 – Fluor Corp said it retained two investment bankers to assess the value of its gold operations in light of improved world gold market conditions. The engineering, construction and natural resources company said it retained Shearson Lehman Brothers Inc and S.G. Warburg and Co Inc to assist in the assessment. Fluor owns 90 pct of St. Joe Gold Corp , a unit of Fluor’s St. Joe Minerals subsidiary. St. Joe Gold explores, develops, mines and produces precious metals in the U.S., Canada and Chile. It produced 281,000 ounces of gold in its most recent fiscal year. Fluor also has gold operations in Australia, Spain and Uruguay. Reuter 1-JUN-1987 10:24:04.91 usacanada E F f1111reute r f BC-brampton-brick-ups 06-01 0109 BRAMPTON BRICK UPS EARNINGS FORECAST BRAMPTON, Ontario, June 1 – Brampton Brick Ltd said it increased its 1987 earnings forecast to 94 cts a share from the 83 cts a share predicted in its October 30, 1986 public share offering prospectus. It said increased earnings will result from continuing production at its Toronto Don Valley plant past the original termination date of June 30, 1987, which will double 1987 output. In addition, annual capacity at unit Brique Citadelle was increased by about 15 pct to 48 mln bricks. The revised earnings forecast is after a May, 1987 agreement to issue 900,000 class A subordinate voting shares. Reuter 1-JUN-1987 10:24:42.62 earn usa F f1114reute d f BC-ADVANCED-SYSTEMS-INC< 06-01 0054 ADVANCED SYSTEMS INC 2ND QTR APRIL 30 NET CHICAGO, June 1 – Shr 32 cts vs 22 cts Net 2,022,000 vs 1,355,000 Revs 16.0 mln vs 13.2 mln Avg shrs 6,237,000 vs 6,052,000 Six mths Shr 58 cts vs 42 cts Net 3,561,000 vs 2,525,000 Revs 30.0 mln vs 26.1 mln Avg shrs 6,180,000 vs 6,017,000 Reuter 1-JUN-1987 10:25:15.70 earn canada E f1116reute d f BC-mannville-oil-and-gas 06-01 0027 MANNVILLE OIL AND GAS LTD 1ST QTR NET CALGARY, Alberta, June 1 – Shr two cts vs seven cts Net 164,000 vs 417,000 Revs 1,345,000 vs 2,021,000 Reuter 1-JUN-1987 10:25:40.68 earn usa F f1118reute d f BC-HOUSE-OF-FABRICS-INC 06-01 0028 HOUSE OF FABRICS INC 1ST QTR NET APRIL 30 SHERMAN OAKS, Calif., June 1 – Shr 27 cts vs 18 cts Net 1,757,000 vs 1,201,000 Revs 73.5 mln vs 71.2 mln Reuter 1-JUN-1987 10:26:23.22 usa F f1121reute d f BC-HOUSE-OF-FABRICS-PROJ 06-01 0082 HOUSE OF FABRICS PROJECTS GAINS IN FISCAL 1988 SHERMAN OAKS, Calif., June 1 – House of Fabrics Inc said it expects further modest gains in revenues for fiscal year ending January 31, 1988. In fiscal 1987, the company’s revenues were 316.4 mln dlrs compared to 286.7 mln dlrs the previous fiscal year ending January 31. House of Fabrics President and Chief executive, Gary Larkins, said the company will be aggressively promoting sales while applying tighter inventory controls. Reuter 1-JUN-1987 10:26:40.57 earn canada E F f1124reute d f BC-ORBIT-OIL-AND-GAS-LTD 06-01 0033 ORBIT OIL AND GAS LTD 1ST QTR NET Calgary, Alberta, June 1 – Shr three cts vs three cts Net 421,000 vs 333,000 Revs 2,103,000 vs 2,287,000 Avg shrs 16,068,000 vs 12,041,000 Reuter 1-JUN-1987 10:27:12.52 sweden F f1128reute u f BC-METRO-AIRLINES-TO-BUY 06-01 0104 METRO AIRLINES TO BUY 16 SAAB COMMUTER PLANES STOCKHOLM, June 1 – The U.S. Regional carrier has signed an agreement with Saab Scania AB to buy 16 34-seater Saab SF340 aircraft worth a total 650 mln crowns, the Swedish group’s largest single order yet, Saab said. It said in a statement that Metro airlines was also taking an option on a further 15 SF340 commuter planes. The aircraft are to be delivered between now and next April. “The order from Metro airlines is a definite breakthrough for the Saab SF340,” said Tomy Hjort, the head of the SF340 programme at Saab’s air division. reuter 1-JUN-1987 10:28:47.98 switzerland F f1133reute d f BC-HOLDERBANK-EXPECTS-19 06-01 0113 HOLDERBANK EXPECTS 1987 RESULTS TO BE STEADY ZURICH, June 1 – Holderbank Financiere Glarus AG expects its 1987 results to be at least steady, with increases in volume sales and negative currency factors roughly cancelling each other out, deputy chairman Max Amstutz said. He told a news conference that turnover was likely to rise 20 pct in volume terms, partly through the consolidation of recently acquired companies. Ideal Basic Industries Inc of the U.S., Which Holderbank agreed last year to acquire, should boost group sales by around 12 pct. But the weakness of the dollar — the key currency for the group — would remain a strong negative factor. Holderbank earlier reported consolidated 1986 net profit of 239 mln Swiss francs compared with 126 mln in 1985 on sales which fell to 3.3 billion francs from 3.6 billion. Group president Thomas Schmidheiny said Holderbank was now in a consolidation phase after 15 years of enormous growth. Priority would be given to strengthening its existing positions and to integrating recent acquisitions but the group would continue to take advantage of new opportunities for acquisitions. Reuter 1-JUN-1987 10:35:15.55 F f1159reute f f BC-******ROBERT-MAXWELL 06-01 0013 ******ROBERT MAXWELL SAID HE SUING TO STOP HARCOURT BRACE PAYING SPECIAL DIVIDEND Blah blah blah. 1-JUN-1987 10:36:46.62 acq usa F f1165reute d f BC-VIDEO--TO-BUY 06-01 0102 VIDEO TO BUY PRESIDENT’S SHARES MIAMI, June 1 – Video Jukebox Network inc said it signed a letter of intent to purchase up to 3.5 mln shares of the four mln shares of the company’s common stock from its founder and president, Steven Peters. Video said the shares are to be purchased by Louis Wolfson III, senior vice president of , , J. Patrick Michaels Jr and . Video said it currently has 7,525,000 shares of common stock outstanding. The company said it went public earlier this year and its current ask price was 1-7/8. CEA Investors Partnership II has planned the partnership to be operated by Michaels, who is chairman and president of , a media brokerage firm, Video said. The terms of the proposed transaction were not disclosed. Video said Peters will continue as chairman and president of the company. It said the parties have until June 29 to agree to all terms of the letter of intent. Reuter 1-JUN-1987 10:37:16.59 usa F f1168reute u f BC-CIRCUS-CIRCUS--T 06-01 0080 CIRCUS CIRCUS TO HAVE 2ND QTR CHARGE LAS VEGAS, June 1 – Circus Circus Enterprises Inc said it expects to report a charge of about six mln dlrs or 16 cts per share against results for the second quarter ending July 31 due to a tender for all 75 mln dlrs of its first mortgage bonds that expires June Two. In last year’s second quarter, the company took a 6,200,000 dlr or 16 ct per share charge from the redemption of 80 mln dlrs principal amount of subordinated notes. Reuter 1-JUN-1987 10:40:08.38 west-germany RM f1186reute u f BC-GERMAN-APRIL-WHOLESAL 06-01 0085 GERMAN APRIL WHOLESALE TURNOVER FALLS FOUR PCT WIESBADEN, June 1 – West German wholesale turnover provisionally totalled about 66 billion marks in April, a real decline of four pct compared with the same month last year, the Federal Statistics Office said. In March wholesale turnover had risen by a real seven pct on the year-ago period. The Statistics Office said that in the first four months of this year wholesale turnover of about 244 billion marks was a real one pct down from last year. REUTER 1-JUN-1987 10:40:32.49 earn usa F f1191reute r f BC-BERKSHIRE-GAS-CO- RAISES PAYOUT PITTSFIELD, Mass., June 1 – Qtly div 30-1/2 cts vs 28-1/2 cts prior Pay July 15 Record June 30 Reuter 1-JUN-1987 10:40:45.38 usa F f1193reute r f BC-FOOD-LION--M 06-01 0052 FOOD LION MAY SALES RISE SALISBURY, N.C., June 1 – Food Lion Inc said sales for the four weeks ended May 23 were up 21.9 pct to 222.6 mln dlrs from 182.6 mln dlrs a year earlier. The company said sales for the year to date were up 23.4 pct to 1.06 billion dlrs from 858.8 mln dlrs a year before. Reuter 1-JUN-1987 10:40:53.26 earn usa F f1194reute r f BC-MARCADE-GROUP-INC- 1ST QTR MAY 2 NET NEW YORK, June 1 – Shr four cts vs 10 cts Shr diluted two cts vs 10 cts Net 1,841,000 vs 978,000 Revs 36.1 mln vs 20.5 mln Avg shrs 25,734,000 vs 9,200,000 Avg shrs diluted 48,878,000 vs 9,200,000 Reuter 1-JUN-1987 10:41:09.23 usa F f1197reute d f BC-INTELLIGENT-SYSTEMS UNIT UNVEILS NEW BOARDS NORCROSS, Ga., June 1 – Quadram, a unit of Intelligent Systems Corp, said it has introduced three new memory and multifunction boards for the International Business Machines Corp Personal System/2 Models 50 and 60. The company said the new products, scheduled for shipment in August and September, include QuadMEG PS/Q memory board, QuadPort PS/Q, an input/output board, and Quadboard PS/Q a multifunction board. Quadram also said it has slashed prices effective immediately for its QuadEGA+ and QuadEGA ProSync graphics boards by 10 pct and 15 pct, respectively. Quadram said QuadEGA+’s price is cut to 445 dlrs from 495 dlrs, while QuadEGA ProSync’s price is reduced to 495 dlrs from 595 dlrs. The Intelligent Systems unit also has entered into an open-ended joint technology and product development agreement with , Genoa Systems said. Genoa, a maker of PC-compatible products, said the agreement allows Quadram to use Genoa’s proprietary video controller chip sets in Quadram’s new UltraVGA graphics board products and sets up a joint development project for a variety of future graphics products. Genoa Systems said the agreement extends a prior, two-year commercial relationship under which Genoa has supplied Quadram with technology and equipment based on its Galaxy line of tape backup systems. Reuter 1-JUN-1987 10:41:13.85 earn usa F f1198reute d f BC-GREENMAN-BROS-INC- 1ST QTR MAY 2 LOSS FARMINGDALE, N.Y., June 1 – Shr loss 52 cts vs loss 49 cts Net loss 3,142,000 vs loss 2,936,000 Sales 40.9 mln vs 40.1 mln NOTE: Year ago share results adjusted for five-for-four stock split in August 1986 Reuter 1-JUN-1987 10:44:11.77 acq usa F f1208reute d f BC-MARCADE-GROUP--P 06-01 0081 MARCADE GROUP PLANS ACQUISITION NEW YORK, June 1 – Marcade Group Inc said it has agreed in principle to acquire a prominent, privately-held maker of ladies’ sports wear for an cash, shares and options to purchase Marcade common valued at about 20 mln dlrs. In its fiscal year recently ended, Marcade said, the company to be acquired which owns five U.S. manufacturing facilities and one offshore had revenues of over 60 mln dlrs and pretax earnings of about four mln dlrs. Reuter 1-JUN-1987 10:47:12.33 usa F f1217reute r f BC-AMERICAN-HEALTHCARE-A 06-01 0107 AMERICAN HEALTHCARE AND 3M SIGN ACCORD ST. PAUL, MINN., June 1 – Minnesota Mining and Manufacturing Co said it signed a five year agreement to become a preferred supplier to San Diego, California-based (American Healthcare System). The agreement permits American Healthcare hospitals to buy at competitive prices from 3M’s 14 business divisions, products in radiology, laboratory, food service, maintenence supplies and audio visuals, advertising services, office supplies, computer hardware and software, it said. American Healthcare is a health care network representing more than 1,100 not-for-profit hospitals in 47 states. Reuter 1-JUN-1987 10:47:24.24 usa F f1219reute d f BC-THOMPSON-MEDICAL- 06-01 0071 THOMPSON MEDICAL OFFER OVERSUBSCRIBED NEW YORK, June 1 – Thompson Medical Co Inc said about 1,290,000 shares of its common were tendered before the expiration of the company’s offer of 20 dlrs a share for up to one mln common shares. Accordingly, the proration percentage is expected to be about 77.5 pct, Thompson said. It said payment for the one mln shares being purchased is expected to begin about June 12. Reuter 1-JUN-1987 10:48:50.71 acq usa F f1229reute u f BC-PENNSYLVANIA-ENTERPRI 06-01 0106 PENNSYLVANIA ENTERPRISES BID STANDS WILKES-BARRE, Pa., June 1 – Utilities Investment Inc said it still is offering to acquire Pennsylvania Enterprises Inc for 55 dlrs per share. It said it is prepared to negotiate its offer. The Pennsylvania Enterprises board rejected the offer two weeks ago as being inadequate. Utilities said it has the financial commitments required to ensure that Pennsylvania Enterprises’ facilities would be upgraded to insure an adequate supply of safe drinking water. It said its representatives will be attending Pennsylvania Enterprises’ annual meeting tomorrow in Wilkes-Barre, Pa. Reuter 1-JUN-1987 10:50:11.14 pet-chem usa F f1234reute h f BC-DOW-CHEMICAL--TO 06-01 0101 DOW CHEMICAL TO INCREASE PRICES MIDLAND, Mich., June 1 – Dow Chemical U.S.A. Midland Co said it will increase prices of its high performance thermal fluids, in bulk and drums, effective July One, for contract and spot customers. The bulk list prices for diphenyl oxide, in both technical and refined grades, will be raised five pct to 1.26 dlrs per pound for technical and 1.36 dlrs per for refined, Dow said. Other increases include Dowtherm G to 21.92 dlrs per gallon; Dowtherm HT to 20.94 dlrs per gallon; Dowtherm J to 14.96 dlrs per gallon, and Dowtherm LF to 18.68 dlrs per gallon. Reuter 1-JUN-1987 10:50:26.91 usa F f1236reute r f BC-SUFFOLK-BANCORP- RAISES QUARTERLY RIVERHEAD, N.Y., June 1 – Qtly div 13 cts vs 12-1/2 cts prior Pay July One Record June 10 NOTE: Dividend adjusted for recent two-for-one stock split. Reuter 1-JUN-1987 10:50:45.92 usa F f1238reute u f BC-THOMPSON-MEDICAL- 06-01 0060 THOMPSON MEDICAL TENDER OVERSUBSCRIBED NEW YORK, June 1 – Thompson Medical co Inc said it received about 1,290,000 of its common shares in response to its tender offer for up to one mln at 20 dlrs each, and as a result the proration percentage is expected to be about 77.5 pct. The company said payment for the shares is expected to start June 12. Reuter 1-JUN-1987 10:51:15.82 usa F f1241reute r f BC-CATO-CORP--SET 06-01 0041 CATO CORP SETS INITIAL DIVIDEND CHARLOTTE, N.C., June 1 – Cato Corp, which went public April 30, said its board declared an initial quarterly dividend as a public company of two cts per share, payable June 26 to holders of record June 12. Reuter 1-JUN-1987 10:53:25.88 acq F f1251reute f f BC-******MERRILL-LYNCH-S 06-01 0013 ******MERRILL LYNCH SAYS PRORATION FACTOR FOR SUPERMARKETS TENDER IS 85.66 PCT Blah blah blah. 1-JUN-1987 10:54:08.95 cocoa brazil icco C T f1253reute b f BC-BRAZIL-NOT-SELLING-TO 06-01 0131 BRAZIL NOT SELLING TO COCOA BUFFER STOCK – TRADE RIO DE JANEIRO, June 1 – Brazil is not selling cocoa beans to the International Cocoa Organization, ICCO, buffer stock, as spot prices for beans in the interior area are 20 to 25 pct higher than levels which would be paid by the ICCO buffer stock manager, trade sources in the major producing state Bahia said. The scarcity of beans because of the effects of drought on the current temporao harvest has pushed prices well above international levels, the sources noted. The only buyers are bean exporters or local processors covering previously contracted commitments, they added. If sales were made they would be executed by individual exporting companies which are members of the Brazilian Cocoa Trade Commission, they said. Reuter 1-JUN-1987 10:55:50.28 acq usa F f1256reute r f BC-RAVEN-INDUSTRIES- BUYS TRUCK BODY BUSINESS SIOUX FALLS, S.D., June 1 – Raven Industries Inc said it purchased the utility truck body business of (Astoria Fibra-Steel, Inc) for cash. Details of the transaction were not disclosed. The Astoria product line, which has annual sales of about 2.5 mln dlrs, will be manufactured and sold by Raven’s newly formed subsidiary, Astoria Industries Inc, Raven said. Its Glasstite Inc subsidiary also manufactures and sells utility truck bodies. Reuter 1-JUN-1987 10:57:42.09 usa F f1260reute r f BC-GLEASON--UNIT-AD 06-01 0079 GLEASON UNIT ADDS EQUIPMENT TO AUDI MODEL ROCHESTER, N.Y., June 1 – Gleason Corp’s subsidiary, Gleason Power Systems, said its Torsen torque-sensing differential will be supplied as standard equipment in the new Audi 90 Quattro four-wheel drive vehicle. Initial Torsen differential production for the new Audi 90 will not affect earnings in 1987, Gleason said. The Audi Quattros 80 and 90 models will be introduced in the U.S. in late 1987, the company said. Reuter 1-JUN-1987 10:58:29.01 usa F f1264reute r f BC-HOSPITAL-CORP--G 06-01 0099 HOSPITAL CORP GETS FINANCING COMMITMENTS NASHVILLE, Tenn., June 1 – Hospital Corp of America said it received financing commitments of about 1.9 billion dlrs to pay for its previously announced reorganization. Hospital Corp said under the reorganization, over 100 hospitals will be spun off to a new, independent company owned by an employee stock ownership plan, ESOP, for 1.8 billion dlrs in cash. Hospital Corp said in addition to the cash payment, it will also receive preferred stock and warrants to purchase up to 34 pct of the fully diluted stock of the new company. According to Hospital Corp, the transaction is expected to be completed in the third quarter of the year, and proceeds will be used to reduce Hospital Corp’s debt and to repurchase Hospital Corp common shares. Hospital Corp said the 100 hospitals to be acquired by the new company had net revenues totaling about 1.5 mln dlrs in 1986. Hospital Corp further said the ESOP would initially own 99.5 pct of the outstanding common stock of the new company or about 51 pct on a fully diluted basis. Hospital Corp said the new company’s management would initially purchase one-half of one pct of the common stock of the new company, with incentive plans providing management the opportunity to earn up to 10 pct of the stock. According to Hospital Corp, institutions purchasing debt of the new company will receive warrants for the remaining five pct of the new company’s fully diluted common stock. Hospital Corp said Drexel Burnham Lambert Inc has agreed to provide bridge financing, or to find buyers for debt of the new company, for an amount of up to 956 mln dlrs. The financing will comprise 270 mln dlrs of senior unsecured ESOP debt and 686 mln dlrs of unsecured subordinated financing for the new company, Hospital Corp said. Additionally, Wells Fargo Bank NA has agreed to syndicate up to 940 mln dlrs of secured bank financing, comprising a 400 mln dlr revolving credit loan and a 540 mln dlr separate ESOP term loan, Hospital Corp said. Wells Fargo has committed itself to fund an aggregate 400 mln dlrs of these loans, Hospital Corp said. Hospital Corp said it will not guarantee any of the debt. Reuter 1-JUN-1987 11:03:27.17 belgiumukwest-germanyluxembourgdenmarkswitzerlandusajapan ec RM f1290reute r f BC-EC-EUROBOND-ISSUE-REM 06-01 0113 EC EUROBOND ISSUE REMAINS UNRESOLVED – DIPLOMATS BRUSSELS, June 1 – European Community diplomats said the question of whether Eurobonds will fall under proposed EC rules requiring new securities issues in Community countries to be preceded by a prospectus has yet to be resolved. The U.K. Securities industry has been lobbying hard against an EC Commission proposal, aimed at protecting investors, that would require publication and approval of a prospectus before all public offers of securities. The proposed directive currently includes Eurobonds, although it makes an exception to the prospectus rules for issues directed exclusively at professional investors. Diplomats said that with Britain tending towards backing West Germany and Luxembourg in their opposition to the inclusion of Eurobonds, the question of whether they would remain within the scope of the directive or not was wide open. “Everything is in the melting pot,” said one diplomat who declined to be named. The diplomats said Belgium has now given up attempts to have the directive adopted by EC ministers before it hands over the presidency of the 12-nation Community to Denmark on July 1. It was not immediately clear what priority the Danes would attach to getting the proposals through during their six month tenure. Meanwhile, discussions on the directive at working group level have halted, diplomats said. Officials of the EC Commission said it recognised that its proposals created a conflict between the need for greater protection of investors, on the one hand, and for banks and other institutions to place Eurobonds quickly, on the other. “It’s a problem and we are still in the grips of internal debate as to the right line to take,” said one Commission official. Eurobonds were not included in the original draft directive, first put forward in 1981, but were brought into its scope later at the request of a number of EC member states. Diplomats said countries that oppose the inclusion of Eurobonds in the proposals are worried that the prospectus requirements would prevent the thriving Eurobond market from functioning as well as it does now. “With timing so essential to the market for placing and distribution, there’s just not time to deal with these bureaucratic hurdles,” said one. He and others said the overriding concern was that the requirements could drive the Eurobond market out of traditional EC centres like London and Luxembourg to Switzerland, the U.S. Or Japan. Diplomats said the Eurobond question is not the only issue that needs to be resolved before the directive can be passed. They said West Germany’s main objection to the directive in its present form is that it considers as too stringent proposed rules laying down how much information companies issuing non-listed securities should disclose in their prospectuses. The proposed rules create problems for West Germany because its new second tier securities market has less demanding requirements that would have to be tightened. REUTER 1-JUN-1987 11:04:49.38 acq usa F f1298reute u f BC-PAY-N’-PAK--GETS 06-01 0103 PAY N’ PAK GETS TWO OFFERS FOR COMPANY NEW YORK, June 1 – Pay N’ Pak Stores Inc said it received two proposals in response to its previously announced solicitation of potential buyers for the company. The company said it is evaluating the proposals from Paul Bilzerian and from a third party which is active in the leveraged buyout field but which Pay N’ Pak declined to identify. It said the Bilzerian proposal calls for shareholders to receive on a blended basis 16.67 dlrs in cash and 3.30 dlrs in liquidation value of cumulative exchangeable redeemable preferred stock for each common share. Pay N’ Pak said the second proposal is structured as a merger in which each holder would receive a combination of 17.50 dlrs in cash and 2.50 dlrs in liquidation value of 13-1/2 pct cumulative preferred. The company said the dividend on the preferred offered by Bilzerian would be set so that in the opinion his financial advisor and the company’s financial advisor the preferred would trade in the public market at its liquidation value. Dividends on the preferred could be paid at the option of the surviving corporation in cash or additional shares of preferred for the first five years, it added.. Pay N’ Pak said Bilzerian’s proposal is subject to a physical inventory of merchandise at June 30. Bilzerian did not provide details with respect to financing of his proposal, which is not subject to a financing condition. The company said dividends on the preferred being offered in the second proposal would be paid in additional preferred in the first three years and the preferred would be redeemed in years 12 and 13. It said the second offer is contingent on the arrangement of financing, adding the party making the offer is confident of its ability to obtain the balance of the financing. Pay N’ Pak said the second proposal is conditioned upon a satisfactory agreement with the company’s management regarding its equity participation in the new company. The second party anticipates executing a letter of intent when it delivers its financing commitment to the Pay N’ Pak board that would incorporate an expense reinbursement and option arrangement, the company said. Reuter 1-JUN-1987 11:06:11.10 acq usauk F f1304reute u f BC-MAXWELL-FILES-SUIT-TO 06-01 0111 MAXWELL FILES SUIT TO STOP HARCOURT New York, June 1 – Publisher Robert Maxwell’s British Printing and Communicaton Corp PLC said it filed a lawsuit in U.S. district court against Harcourt Brace Jovanovich Inc, its directors and advisers to stop, among other things, payment of the special dividend Harcourt is paying as part of its recapitalization. The suit, filed in Manhattan, also names First Boston Corp and seeks to void the issue by Harcourt of 40,000 shares of super voting preferred stock to First Boston Securities Corp and the issue of convertible voting preferred stock with 4,700,000 votes in the Harcourt employee stock ownership plan. The preferred shares to be issued to First Boston have 8,160,000 votes. The suit, brought derivatively on behalf of Harcourt and individually in British Printing’s capacity as a substantial holder of Harcourt common shares and 6-3/8 pct convertible debentures. The suit alleges Harcourt’s special dividend exceeds by more than one billion dlrs Harcout’s surplus available for dividends under New York law and contstitutes a fraudulent conveyance. The lawsuit also alleges that Harcourt failed to disclose that one consequence of the payment of the dividend, which it terms illegal, will be that shareholders will be liable to repay it. Harcourt last week said it would pay 40 dlrs per share to stockholders as a special dividend. Harcourt also announced an extensive recapitalization plan, which analysts said was aimed at thwarting a takeover effort by British Printing. British Printing last week withdrew its 44 dlr per share, or two billion dlr offer for Harcourt because of the recapitalizaton plan. At the time, it said it was reviewing its alternatives. British Printing said it filed the suit after consultation with its advisers. Its lawsuit also alleges that Harcourt failed to disclose the effect of the special dividend on Harcourt 6-3/8 pct convertible debentures. British Printing alleges the effect will be an enormous increase effective on the June eight record date for the dividend in the number of Harcourt common shares issuable upon conversion of the debentures. British Printing also charged Harcourt is unlawfully coercing debenture holders to convert denbentures before the record date because Harcourt may not have enough authorized common shares to honor conversion after the date. British Printing holds 460,600 shares and 5.6 mln dlrs worth of debentures. The suit also alleges that management, the board of directors, and First Boston engaged in an illegal scheme of entrenchment through a combination of selling to First Boston Securities Corp the super voting preferred at a bargain price, the grant to the company employee stock plan of convertible voting preferred, the six mln share open market repurchase program and the manner in which its financing has been structured. Reuter 1-JUN-1987 11:06:46.47 uk RM f1308reute u f BC-U.K.-BANKERS-CONSIDER 06-01 0105 U.K. BANKERS CONSIDER NEW ECGD FINANCING PLAN LONDON, June 1 – Representatives of major U.K. Based banks are meeting here today to consider a new plan for reducing the cost of financing British exports guaranteed by the Export Credits Guarantee Department (ECGD), senior banking sources said. The plan is being developed in conjunction with the ECGD and the Bank of England. Neither the ECGD nor the Bank of England would comment on the plan. However, bankers said one of the main points under discussion is a plan to refinance the bulk of the ECGD’s medium term credit portfolio in the international capital markets. The proposals involve introducing a set of interest margins on ECGD backed debt of 5/16 to 7/8 pct, depending on the size and maturity of the credit and the currency. The banks are likely to push for a higher margin. Bankers said that while these rates would reduce a bank’s return they would still be more than those proposed about a year ago when the government attempted unsuccessfully to initiate another cost reduction plan. At the same time, the banks would be expected to allow the ECGD to realise additional savings by refinancing existing government backed credit in the capital markets. On credits that are refinanced an original lender would receive a residual margin of 7/16 pct for loans up to 10 mln stg and 3/16 pct on larger transactions. REUTER 1-JUN-1987 11:08:28.72 acq usa F f1320reute u f BC-pizza-inn 06-01 0110 STEINBERG GROUP HAS FIVE PCT OF PIZZA INN WASHINGTON, June 1 – A group controlled by New York investor Saul Steinberg told the Securities and Exchange Commission it has acquired 168,500 shares of Pizza Inn Inc, or 5.02 pct of the total outstanding common stock. The group, which includes Reliance Financial Serivces Corp, a subsidiary of Reliance Group Holdings Inc , said it bought the stock as an investment. It said it might add to its stake or sell some or all of it. The Steinberg group said it bought the stock for 1.75 mln dlrs in open market purchases between April 13 and May 19 at prices ranging from 13.625 to 14.2661 dlrs a share. Reuter 1-JUN-1987 11:10:28.15 money-fxinterest usa V RM f1333reute b f BC-/-FED-EXPECTED-TO-SET 06-01 0088 FED EXPECTED TO SET CUSTOMER REPURCHASES NEW YORK, June 1 – The Federal Reserve is expected to add reserves to the U.S. banking system by arranging a round of customer repurchase agreements during this morning’s intervention period, several economists said. Some others, however, judged that the Fed has almost completed its reserve-adding requirement for the statement period ending on Wednesday and will not need to operate today. Fed funds were trading at 6-11/16 pct, compared with Friday’s average of 6.63 pct. Reuter 1-JUN-1987 11:10:41.70 usa F f1335reute u f BC-AMERICANA-HOTELS- TO REPURCHASE SHARES BOSTON, June 1 – Americana Hotels and Realty corp said it intends to repurchase up to 400,000 of its common shares, or about seven pct, in the open market or privately from time to time. Reuter 1-JUN-1987 11:12:21.00 acq usa F f1348reute u f BC-SUPERMARKETS-GENERAL 06-01 0108 SUPERMARKETS GENERAL TENDER EXPIRES NEW YORK, June 1 – SMG Acquisition Corp, a subsidiary of Merrill Lynch Capital Partners Inc, said 38.3 mln shares of Supermarkets General Corp were validly tendered by the midnight Friday expiration, resulting in a preliminary proration factor of 85.66 pct. Merrill Lynch said it expects to announce the final proration factor within 10 business days and begin payment immediately thereafter. Shares validly tendered represented about 98.75 pct of the outstanding shares of Supermarkets General, the announcement said. The cash tender offer was for up to 32.8 mln shares at 46.75 dlrs net per share. Reuter 1-JUN-1987 11:12:31.69 pet-chemacq belgium F f1350reute r f BC-MONSANTO-TO-BUY-RHONE 06-01 0097 MONSANTO TO BUY RHONE-POULENC POLYPHENYL BUSINESS BRUSSELS, June 1 – Monsanto Chemical Company, a unit of Monsanto Co , is to acquire the polyphenyls business of Rhone-Poulenc Chimie, a unit of Rhone-Poulenc , Monsanto said in a statement issued from its European headquarters. The statement did not disclose financial details. Gustaaf Francx, general manager of Monsanto Chemical Co Europe-Africa, said the acquisition would help Monsanto to expand its customer base for polyphenyls, which are used as components for high temperature heat transfer fluids. Reuter 1-JUN-1987 11:12:37.28 usa F f1351reute h f BC-PULITZER-RAIS 06-01 0076 PULITZER RAISES PRICE OF POST-DISPATCH ST. LOUIS, June 1 – Pulitzer Publishing Co said it increased the retail price of the Sunday St. Louis Post-Dispatch to 1.00 dlrs a copy from 75 cts, effective June 14. The Post-Dispatch, which last increased the price of its Sunday paper in 1980, said it will receive 19 cts as its share of the 25 cts increase. For the quarter ended March 31, the Post had an average Sunday circulation of 556,620. Reuter 1-JUN-1987 11:12:46.78 usa F f1353reute s f BC-CHICAGO-PACIFIC-CORP 06-01 0024 CHICAGO PACIFIC CORP REGULAR PAYOUT CHICAGO, June 1 – Qtly div five cts vs five cts previously Pay July One Record June 15 Reuter 1-JUN-1987 11:12:49.58 usa F f1354reute s f BC-GREEN-TREE-ACCEPTANCE 06-01 0024 GREEN TREE ACCEPTANCE INC REGULAR PAYOUT ST. PAUL, June 1 – Qtly div 12-1/2 cts vs 12-1/2 cts prior Pay June 30 Record June 15 Reuter 1-JUN-1987 11:14:25.82 crude ukuaeecuadoriraqsaudi-arabia opec Y f1362reute u f BC-OPEC-OUTPUT-IN-MAY-SE 06-01 0117 OPEC OUTPUT IN MAY SEEN OVER CEILING AT 17 MLN BPD LONDON, June 1 – OPEC’s May output appears to have risen well above its 15.8 mln bpd ceiling to 17 mln bpd, and the increase is likely to put a short-term lid on spot oil prices, Kleinwort Grieveson Securities says. But Kleinwort’s latest World Oil Report said re-stocking and lower non-OPEC output earlier this year should allow the group to produce up to 17 mln bpd in the current third quarter. “On the supply/demand front, the market continues to enjoy a degree of stability rarely seen in recent years,” it said. It said most OPEC members were overproducing slightly but only the United Arab Emirates (UAE) was seriously above quota. The report said Saudi Arabia had been sending clear signals on the need to maintain oil prices at current levels of around 18 dlrs a barrel and adopt provisional output rises agreed in December when OPEC meets in Vienna on June 25. If OPEC adopts the provisional ceilings of 16.6 mln bpd in third quarter and 18.3 mln bpd in the fourth, there will probably be room for overproduction in the third quarter when demand for its crude will probably be 17.5 to 18 mln, it said. It said that the UAE and Ecuador may demand higher quotas in Vienna, but the biggest obstacle is Iraq, which has refused to honour its quota as it is less than that of Gulf War enemy Iran. But OPEC appears committed to a short meeting and realises something must be done about the Iraq issue, the report said. According to Kleinwort’s sources, Saudi Arabia has already held separate talks with Iran and Iraq and is urging Iraq to be more moderate. “One strong indication that some kind of deal may be eventually worked out is the almost complete silence coming from Iran,” it said. Indications are that, in return for going along with the Saudi desire to maintain official prices in Vienna, Iran is seeking concessions from the kingdom on the Iraq issue, it said. Kleinwort said the kingdom will face an increasingly uphill task in trying to maintain prices around 18 dlrs beyond 1987. Firstly, OPEC hardliners led by Iran are bound to oppose such a move. Secondly, other OPEC members will press for another price rise if the dollar remains weak against other currencies. Thirdly, Saudi Arabia may be forced to raise prices earlier than it intended to ward off growing calls for higher prices from the U.S. To stimulate domestic drilling and exploration. The report concluded that there is a strong possibility official OPEC prices will rise to 20 dlrs a barrel by end-1987 and 22 dlrs a barrel by end-1988. REUTER 1-JUN-1987 11:16:08.23 acqpet-chem usafranceuk F f1365reute u f BC-BORDEN--TO-ACQUIR 06-01 0097 BORDEN TO ACQUIRE MAJOR PASTA MAKER NEW YROK, June 1 – Borden Inc said it is acquiring and three companies producing grocery products for 180 mln dlrs. Borden said the four companies are expected to have 1987 sales totaling 230 mln dlrs. It said Prince, a Lowell, Mass., producer of pasta and Italian food sauces, is expected to account for 210 mln dlrs of this total. This year’s sales of Borden pasta — by the 13 regional brands and the premium Creamette brand distributed on a nearly national basis — are expected to toal 285 mln dlrs, it said. Borden said the other three companies being acquired are Steero Bouillon of Jersey City, N.J., Blue Channel Inc, a Beaufort, S.C., producer of canned crabmeat, and the canned shrimp products line of DeJean Packing Inc of Biloxi, Miss. Borden also said the divestment of three operations with about 50 mln dlrs a year in sales is expected to produce nearly 45 mln dlrs in cash for use toward the purchase of new businesses. It said the sale of Polyco of Cincinnati, Ohio, which makes polyvinyl acetate emulsions, to Rohm and Haas Co was announced by the buyer last month. Borden said the divestment of two producers of toy models and hobby items — Heller in France and Humbrol in England — is in process. Reuter 1-JUN-1987 11:16:17.04 usa F f1366reute r f BC-KINCAID-FURNITURE- REPURCHASES SHARES HUDSON, N.C., June 1 – Kincaid Furniture Co Inc said its board has authorized the repurchase of up to 100,000 of its common shares, or a 2.9 pct interest, in the open market or privately from time to time. Reuter 1-JUN-1987 11:17:10.89 usa F f1370reute r f BC-AMERICAN-SAVINGS- NAMES NEW CHIEF EXECUTIVE MIAMI, June 1 – American Savings and Loan Association of Florida said its board has named president and chief operating officer Edward P. Mahoney to the added post of chief executive officer, succeeding Morris N. Broad, who remains chairman. The company said Broad will focus on merchant banking investments, real estate developments and mortgage lending activities. Reuter 1-JUN-1987 11:17:16.16 usa F f1371reute r f BC-GENOVESE-DRUG-STORES 06-01 0024 GENOVESE DRUG STORES INC RAISES PAYOUT MELVILLE, N.Y., June 1 – Qtly div six cts vs five cts Pay June 30 Record June 22 Reuter 1-JUN-1987 11:17:40.46 acq usa F f1373reute d f BC-(SUBURBAN-BANCORP),-( 06-01 0087 (SUBURBAN BANCORP), (WOODSTOCK BANCORP) TO MERGE PALATINE, Ill., June 1 – (Suburban Bancorp Inc) and (Woodstock State Bancorp Inc) said they agreed to a merger under which Suburban will purchase Woodstock’s shares for a total of more than 18 mln dlrs in cash and Suburban Bancorp shares. Woodstock is the holding company for the 110 mln dlr State Bank of Woodstock. The merger will bring Suburban’s assets to 661 mln dlrs and its total banks to 13. The merger is subject to regulatory and shareholder approval. Reuter 1-JUN-1987 11:17:59.70 usa F f1374reute r f BC-NOVELL--UNVEI 06-01 0108 NOVELL UNVEILS NETWORKING PRODUCTS ATLANTA, Ga., June 1 – Novell Inc said it introduced a series of new networking products that extend its NetWare local area network (LAN) communications. One of the new products, an asynchronous bridge, connects multiple remote NetWare LANs to a local to a local NetWare LAN over telephone lines using high-speed modems, Novell said. Novell also said it has introduced a new asynchronous gateway which provides NetWare LANS with access to resources on minicomputers from Digital Equipment Corp , Data General , Hewlett-Packard , Prime Computer Inc and Tandem Computers . Novell also said that its CXI Inc unit has introduced a series of new International Business Machines Corp gateway products including a 40-session coaxial gateway software, a variety of LAN workstation gateway sofware and new software for PCOX gateways. Reuter 1-JUN-1987 11:23:36.78 usa F f1402reute u f BC-PAINEWEBBER-ANALYST-S 06-01 0114 PAINEWEBBER ANALYST SEES RECORD AIRLINE PROFITS NEW YORK, June 1 – PaineWebber Group Inc analyst John Pincavage says most airline stocks are undervalued in relation to record industry earnings expected in 1987. Noting that the airlines as a group earned 85 mln dlrs in the first quarter of 1987 compared with a loss of 625 mln dlrs in the first quarter of 1986, Pincavage sees an improvement of similar magnitude in the current quarter. He believes earnings for the group will total about one billion dlrs in the second quarter of 1987 compared with 250 mln dlrs in earnings in the second quarter of 1986. “We’re shaping up for a record year in 1987,” Pincavage told Reuters. For the third quarter of 1987, Pincavage expects the group to earn about 1.5 billion dlrs compared with one billion dlrs in the same period of 1986. Noting that the summer quarter is always a peak period, he says “at this point it’s too soon to tell” about trends in the latter months of 1987. But he says for the group as a whole, fare discounting practices are not pressuring earnings like they were last year. Pincavage has not changed any recommendations recently, maintaining buys on Texas Air Corp NWA Inc and AMR Corp and rating most others attractive. Reuter 1-JUN-1987 11:24:08.97 west-germany F f1403reute r f BC-BENETTON-SEES-HIGHER 06-01 0110 BENETTON SEES HIGHER PROFIT, SALES IN 1987 FRANKFURT, June 1 – Italian fashion conglomerate Benetton Group Spa expects its net profit to rise to around 135 billion lire in 1987 from 113 billion the year before, Aldo Palmeri, managing director of Benetton Group, said. Palmeri told a presentation here that sales should increase to between 1,280 and 1,300 billion lire in 1987 from 1,079 billion in 1986, of which foreign sales were expected to take up 850 billion lire. Benetton finance director Carlo Gilardi said the company was planning to diversify further into the financial services sector and would also expand into the shoe business. Benetton expanded into financial services mainly to speed up the development of its own systems, Gilardi said. Benetton has 400 sub-contractors and 600 distributor companies which created a demand for such services. “But we do not plan to abandon our traditional business,” Gilardi said. Benetton plans to expand further outside Italy, especially in the Far East. Talks are under way over a possible joint venture with the Soviet Union and with South Korea. Palmeri said Benetton plans to list its shares in Frankfurt, London, New York and Tokyo as part of its global expansion but gave no dates when the listings would take place. Reuter 1-JUN-1987 11:31:42.62 interest uk A f1422reute h f BC-U.K.-BANKERS-CONSIDER 06-01 0105 U.K. BANKERS CONSIDER NEW ECGD FINANCING PLAN LONDON, June 1 – Representatives of major U.K. Based banks are meeting here today to consider a new plan for reducing the cost of financing British exports guaranteed by the Export Credits Guarantee Department (ECGD), senior banking sources said. The plan is being developed in conjunction with the ECGD and the Bank of England. Neither the ECGD nor the Bank of England would comment on the plan. However, bankers said one of the main points under discussion is a plan to refinance the bulk of the ECGD’s medium term credit portfolio in the international capital markets. The proposals involve introducing a set of interest margins on ECGD backed debt of 5/16 to 7/8 pct, depending on the size and maturity of the credit and the currency. The banks are likely to push for a higher margin. Bankers said that while these rates would reduce a bank’s return they would still be more than those proposed about a year ago when the government attempted unsuccessfully to initiate another cost reduction plan. At the same time, the banks would be expected to allow the ECGD to realise additional savings by refinancing existing government backed credit in the capital markets. On credits that are refinanced an original lender would receive a residual margin of 7/16 pct for loans up to 10 mln stg and 3/16 pct on larger transactions. REUTER 1-JUN-1987 11:35:07.78 usa F f1442reute u f BC-COMMUNICATIONS-SYSTEM 06-01 0025 COMMUNICATIONS SYSTEMS INC UPS DIVIDEND HECTOR, MINN., June 1 – Qtly div six cts vs five cts prior qtr Pay 1 July Record 19 June Reuter 1-JUN-1987 11:35:18.42 acq usacanada F E f1443reute u f BC-COKE-CONSOLIDATED- TO SELL CANADA UNIT CHARLOTTE, N.C., June 1 – Coca-Cola Bottling Co Consolidated said it has agreed in principle to sell its Vancouver-based Canadian bottling subsidiary to Coca-Cola Co for undisclosed terms, with closing expected within 60 days subject to regulatroy approvals. The company said the sale, a previously-announced agreement for Coca-Cola to buy 1,600,000 Coke Consolidated common shares and operating cash flow should allow it to reduce its long-term debvt to about 200 nmln dlrs from 325 mln dlrs at the end of the first quarter. Reuter 1-JUN-1987 11:36:44.35 acq usa F f1449reute u f BC-CAMPEAU--UNIT 06-01 0036 CAMPEAU UNIT TO SELL GARFINCKEL’S NEW YORK, June 1 – Campeau Corp said its Allied Stores Corp entered into a definitive agreement to sell its Garfinckel’s division to for 95 mln dlrs. The transaction is expected to close in July, the company said. Garfinckel’s net sales for fiscal 1986 were 111.9 mln dlrs, the company said. Campeau said it expects to sell its remaining Allied divisions in the near future. Campeau announced its first agreement to sell an Allied unit in April, the company said. Reuter 1-JUN-1987 11:37:03.53 acq usa F f1452reute d f BC-WALLACE-COMPUTER- BUY OFFICE PRODUCTS FIRM HILLSIDE, ILL., June 1 – Wallace Computer Services Inc said it acquired for 12 mln dlrs in cash and industrial revenue bonds, certain assets of Rockwell-Barnes Inc, a Chicago-based office products company. Reuter 1-JUN-1987 11:37:13.23 west-germanyjapanusafrance kohlciampistoltenbergpoehl RM f1453reute u f BC-BONN-SEEN-REJECTING-N 06-01 0098 BONN SEEN REJECTING NEW GROWTH MEASURES AT SUMMIT By Anthony Williams, Reuters BONN, June 1 – West Germany will stand firm at next week’s economic summit in Venice against foreign pressure to follow Japan’s example of a multi-billion dlr package to stimulate the economy, West German officials said. They conceded Japan’s announcement last week of a 6,000 billion yen plan to bolster its economy would throw the spotlight back on West Germany, which would face redoubled calls from its partners to stimulate sluggish growth. (See ECRA page for latest Economic Spotlights) This view has already been voiced in Washington, where officials spoke at the weekend of behind-the-scenes consultations with Chancellor Helmut Kohl with the aim of securing a quick pledge to take action on the economy. Italy’s central bank governor Carlo Ciampi has also criticized West Germany’s reluctance “to utilize its economic potential” for expansionary policies. But West German officials said it was virtually inconceivable that Kohl would make any concessions in Venice despite a sharp economic downswing at the start of this year. “There is just no room for manoeuvre for any economic moves,” said one official, echoing statements by both Kohl and Finance Minister Gerhard Stoltenberg. Stoltenberg already has problems finding the cash to finance a series of tax cuts promised for 1990, and has said his budget is now stretched to the limit. He is reluctantly letting government borrowing rise while federal income falls as a result of the tax cuts, which he hopes will stimulate growth and satisfy foreign critics. “West Germany is exhausting to the furthest possible limit its fiscal scope as far as growth and employment is concerned,” Stoltenberg said last month. But U.S. Treasury Assistant Secretary David Mulford said Europeans and the U.S. Were worried by flagging German growth. “We and others are concerned about the continued signs of weakness in the German economy,” he said. Other U.S. Officials said France shared these worries. Kohl will go to Venice only days after the publication of figures expected to show that the West German economy actually contracted in the first three months of 1987. West Germany has pledged to review possible measures should further growth be endangered, but officials say they do not expect such a review to be necessary. Bonn says the economy rebounded in the second quarter and it predicts growth of just under two pct for the year. West Germany’s trading partners are also likely to wait in in vain for any further pump-priming from the Bundesbank. Bundesbank vice-president Helmut Schlesinger made clear today the bank would keep interest rates down, but said there were no plans for a cut in the Bundesbank’s key discount rate, which, at three pct, is near historical lows. Bundesbank President Karl Otto Poehl also spoke over the weekend of the need for all countries to play a role on the international economic scene. “We have to recognise that there are also limits to economic growth in a country like Germany,” he said. This stance was taken by Kohl when he outlined expectations for the Venice summit in an interview last week. Referring to West Germany’s program of tax cuts and its low interest rates, he said, “With these policies we have made a significant contribution to growth and to a balanced development of the world economy.” Kohl expected no new initiatives from Venice, though he reckoned on confirmation of agreed policies, such as a pact made in Paris in February which sought to stabilize the dollar. That pact involved a pledge from the United States and Japan, respectively to cut the massive American budget deficit and to stimulate Japanese demand. Kohl said he would remind both Washington and Tokyo of those promises. REUTER 1-JUN-1987 11:37:19.78 usa F f1454reute r f BC-ALGER-TO-EXPAND-DISTR 06-01 0076 ALGER TO EXPAND DISTRIBUTION OF OPEN-ENDED FUND NEW YORK, June 1 – said it will sell the Alger Fund through broker-dealers as a result of its agreement with Dealer Network Services, a division of the newly-established . The fund formerly was sold only directly to investors, Alger said. Dealer Network Services is organizing a countrywide group of established broker-dealers to sell the Alger Fund, Alger said. Reuter 1-JUN-1987 11:37:31.88 usa nasdaq F f1455reute h f BC-TWO-JOIN-NASDAQ-NATIO 06-01 0040 TWO JOIN NASDAQ NATIONAL MARKET SYSTEM NEW YORK, June 1 – CSC Industries Inc and ENZON Inc said their common stocks will be added to the National Association of Securities Dealers’ NASDAQ National Market System tomorrow. Reuter 1-JUN-1987 11:38:43.17 acq usa F Y f1458reute r f BC-SUN--TO-ACQUIRE 06-01 0090 SUN TO ACQUIRE MORE OF WYOMING FIELD FORT WORTH, Texas, – said substantially all the material aspects of the agreement to sell its 8.95 pct working interest in the Luckey Ditch unit in Unita County, Wyo., to Sun Co Inc have been satisfied. Closing of the transaction is scheduled for June eight, Wolverine said. The company agreed to sell its interest for 7,250,000 dlrs, subject to downward adjustment for certain title and state requirements. Sun already owns a 44 pct working interest in the unit. Reuter 1-JUN-1987 11:39:11.58 usa nasdaq F f1460reute r f BC-SECOM-GENERAL-TO-LIST 06-01 0025 SECOM GENERAL TO LIST ON NASDAQ CHAPEL HILL, N.C., June 1 – Secom General Corp said its common stock will be listed on the NASDAQ system tomorrow. Reuter 1-JUN-1987 11:39:26.47 usa F f1461reute r f BC-KROGER--EMPLOYEES 06-01 0063 KROGER EMPLOYEES TO VOTE ON NEW CONTRACT DENVER, June 1 – Kroger Co said members of the United Food and Commercial Workers Union, which have been on strike against its King Soopers Supermarkets division for the past two weeks, will vote tonight on a new contract proposal. It said the union has removed pickets from King Soopers stores pending the outcome of the vote. Reuter 1-JUN-1987 11:40:04.98 usa F f1463reute r f BC-CISTRON-BIOTECHNOLOGY 06-01 0104 CISTRON BIOTECHNOLOGY IN MARKETING DEAL PINE BROOK, N.J., June 1 – Cistron Biotechnology Inc said it has reached a marketing agreement for a “major multinational consumer products company” it did not name to seek U.S. Food and Drug Administration approvals for over the counter sales of Cistron’s home test for detection of vaginal infections. The company said product commercialization could take place within 18 months. The new tests are expected to retail for 10 to 20 dlrs each and take about 30 minutes for results to become known. It said its agreement with the major company also covers worldwide sales. Reuter 1-JUN-1987 11:40:39.26 usa F f1465reute r f BC- 06-01 0106 SELLS SHARES PRIVATELY HOUSTON, June 1 – Realm Resources Inc said it has sold privately 500,000 common shares and 500,000 shares of three dlr per share Series A preferred stock for total proceeds of 1,500,000 dlrs. The company said proceedsd will be used to funds oil and natural gas prospect generation efforts. Realm also said it has placed a large block of Canadian metals mining company Getty Redsources Ltd with a group of investors and expects to earn a fee of up to one mln dlrs for its efforts, with proceeds to be used to fund investments in mining ventures, particularly precious metals ventures. Realm further said its Class A common stock has been converted to common stock to simplify its capital structure. It said it is considering a filing for a NASDAQ listing. Reuter 1-JUN-1987 11:41:11.84 usa F f1469reute d f BC-STAR-TECHNOLOGIES-NAM 06-01 0079 STAR TECHNOLOGIES NAMES NEW PRESIDENT AND CEO STERLING, Va., June 1 – Star Technologies Inc said it has appointed Robert Mathis as president and chief executive officer. Mathis, a retired four-star general with the U.S. Air Force, and formerly president of , replaces Herbert Shaw, who is returning to his position at , Star said. Star said Shaw will continue as Star’s chairman of the board. Reuter 1-JUN-1987 11:41:20.15 earn canada E F f1471reute d f BC-CONSOLIDATED-PROFESSO 06-01 0035 CONSOLIDATED PROFESSOR 1ST QTR NET TORONTO, June 1 – Shr profit one ct vs nil Net profit 163,016 vs loss 23,527 Revs 250,469 vs 48,473 Note: Full name Consolidated Professor Mines Ltd. Reuter 1-JUN-1987 11:41:32.70 reaganvolcker V RM f1472reute f f BC-******WHITE-HOUSE-SAY 06-01 0013 ******WHITE HOUSE SAYS REAGAN HAS NOT DECIDED WHETHER TO RENAME VOLCKER AT FED Blah blah blah. 1-JUN-1987 11:42:09.72 usa F f1475reute d f BC-STAR-TECHNOLOGIES- NAMES NEW PRESIDENT STERLING, Va., June 1 – Star Technologies Inc said it has appointed Robert Mathis as president and chief executive officer, effective June one. Mathis, a retired four-star general with the U.S. Air Force, and formerly president of , replaces Herbert Shaw, who is returning to his position at , Star said. Star said Shaw will continue as Star’s chairman of the board. Reuter 1-JUN-1987 11:42:37.31 usa F f1477reute d f BC-EMERY--NAMES-KIL 06-01 0080 EMERY NAMES KILCULLEN HEAD OF PUROLATOR WILTON, Conn., June 1 – Emery Air Freight Corp, which acquired controlling interest in Purolator Courier Corp , said it has named John Kilcullen executive vice president and chief operating officer of Purolator. Previously, Emery said Kilcullen was Purolator’s executive vice president of operations. Emery said Kilcullen now heads the Purolator executive management team and reports to Emery President Denis McCarthy. Reuter 1-JUN-1987 11:49:47.52 usa A RM f1498reute r f BC-OCCIDENTAL--UNIT 06-01 0101 OCCIDENTAL UNIT DELAYS REDEMPTION DATE NEW YORK, June 1 – Occidental Petroleum Corp said its unit Natural Gas Pipeline will delay until July second its redemption of 202 mln dlrs of debt. Natural Gas previously announced a call date of June 29. The unit will redeem all five of its first mortgage pipeline bonds including the 8-1/8s and 9-1/2s of 1989, the 7.70s of 1991, the 8.35s of 1993 and the 9-1/4s of 1995. It will also retire its 15-3/8 pct debentures due 1992, the 9-1/2 pct debentures due 1990 as well as all outstanding 9-7/8 pct notes due 1994 and 8-1/8 pct notes due 1988. Reuter 1-JUN-1987 11:50:23.62 acq usa F Y f1500reute d f BC-GEODYNE--SETS 06-01 0135 GEODYNE SETS WARRANTS, ACQUISITION TULSA, June 1 – Geodyne Resources Inc said iit filed a registration with the Securities and Exchange Commission covering a planned offering of 3.6 mln warrants to buy its common. The company also said its board is evaluating a proposal to acquire closely-held for one mln Geodyne shares. Members of Geodyne’s senior management also serve as senior management at Snyder and PaineWebber Group Inc , which owns 40 pct of Geodyne’s 12.6 mln outstanding shares, has a substantial equity interest in Snyder. The acquisition is being evaluated by Geodyne board members not employed by the company, PaineWebber or any company affiliated with PaineWebber. It will be subject to approval by the board and series C preferred shareholders. Geodyne Resources said a registration related to the stock to be exchanged for Snyder has been filed with the SEC but has not yet become effective. The Snyder owners other than PainWebber are Geodyne’s president, Michael W. Tomasso, and its executive vice president, James D. Snyder. The company said the warrants will be offered solely to investors in the PaineWebber/Geodyne Energy Income Program II. For every 100 dlrs invested in the program, an investor will be entitled to buy one warrant to purchase one Geodyne common share at a price equal to 120 pct of the average closing price of the stock for the 15 trading days prior to formation of the partnership to which the investor subscribes. In adddition, Geodyne said, PaineWebber investment executives who market the program will be entitled to receive one warrant for every 500 dlrs in subcriptions generated after a four-year vesting period. These warrants would have an exercise price equal to 150 pct of the 15-day average. The company said the warrants are currently priced at 25 cts each, but this price is suject to further evaluation by an independent underwriter. Reuter 1-JUN-1987 11:50:30.06 usa F f1501reute s f BC-CENTRAL-HOLDING-CO- SETS QUARTERLY MOUNT CLEMENS, Mich., June 1 – Qtly div five cts vs five cts prior Pay July 15 Record June 30 Reuter 1-JUN-1987 11:50:34.45 usa F f1502reute s f BC-FIRST-MISSISSIPPI-COR 06-01 0024 FIRST MISSISSIPPI CORP SETS QUARTERLY JACKSON, Miss., June 1 – Qtly div five cts vs five cts prior Pay July 28 Record June 30 Reuter 1-JUN-1987 11:51:05.67 usa reaganvolcker V RM f1504reute b f BC-/NO-DECISION-YET-ON-R 06-01 0097 NO DECISION YET ON RENAMING VOLCKER AT FED WASHINGTON, June 1 – The White House said President Reagan had made no decision on whether to reappoint Paul Volcker as chairman of the Federal Reserve Board when Volcker’s term expires in August. “No decision has been made on chairman Volcker … He has not discussed this with the president, and no decision has been made one way or another,” White House spokesman Marlin Fitzwater said. Asked if Reagan would discuss the issue with Volcker before leaving for the Venice summit on Wednesday, Fitzwater said, “I have no idea.” Reuter 1-JUN-1987 11:51:12.95 earn usa F f1505reute d f BC-DETECTION-SYSTEMS- YEAR END MARCH 31 FAIRPORT, N.Y., June 1 – Shr 36 cts vs nil Net 713,000 vs 1,500 Revs 13 mln vs 9,328,000 Reuter 1-JUN-1987 11:51:54.07 earn usa F f1510reute d f BC-J.-BILDNER-AND-SONS-I 06-01 0023 J. BILDNER AND SONS INC 1ST QTR BOSTON, June 1 – Shr one ct vs nil Net 32,345 vs 3,772 Revs 9,946,578 vs 5,939,252 Reuter 1-JUN-1987 11:59:02.47 crude norway oeien F f1520reute d f BC-COMPROMISE-SEEN-LIKEL 06-01 0120 COMPROMISE SEEN LIKELY OVER CONOCO-STATOIL DISPUTE OSLO, June 1 – Norway is expected to seek a compromise solution to defuse a row between Den Norske Stats Oljeselskap A/S (Statoil) and Conoco Norge A/S over which firm will operate the Heidrun oil field, government sources said. The sources, who asked not to be named, said the government will likely recommend that Conoco be allowed to continue as the field’s operator through the development phase, with Statoil taking over only after production starts in the early 1990s. Oil Minister Arne Oeien told Reuters the government had today discused the Heidrun matter but that no final decision had been taken and several questions remained unresolved. It was unlikely the government would announce its decision on Heidrun operatorship until after Thursday’s cabinet meeting and after discussing a proposed solution with both companies, the sources added. This spring Norway’s state-owned oil company Statoil exercised an option in the Heidrun field exploration license that, if approved by the government, would allow it to relieve Conoco as Heidrun operator, a move sharply criticised by Conoco. Heidrun is often cited by the government and industry as the most likely candidate for the first field development project on the Haltenbanken exploration tract off central Norway. Reuter 1-JUN-1987 12:00:09.15 earn italy F f1524reute r f BC-FIAT-UNIT-FIDIS-REPOR 06-01 0067 FIAT UNIT FIDIS REPORTS SHARPLY HIGHER 1986 PROFIT TURIN, June 1 – Year 1986 Net profit 132 billion lire vs 82 billion Ordinary share dividend 500 lire vs 400 Note – , a financial services subsidiary of Fiat Spa , said in a statement that shareholders approved a previously announced nominal share capital increase from 125 billion lire to 250 billion. Reuter 1-JUN-1987 12:01:07.70 interestmoney-fxdfldmk netherlandswest-germany duisenberg RM f1526reute b f BC-DUTCH-OFFICIAL-RATE-C 06-01 0112 DUTCH OFFICIAL RATE CUT SEEN STILL LIKELY By Marcel Michelson, Reuters AMSTERDAM, June 1 – A cut of about half a percentage point in Dutch official interest rates is still in prospect, although economists said the timing would depend on Bundesbank moves. Speculation has been rife that the Dutch Central Bank, encouraged by a strong guilder/mark relationship and wide premiums for Dutch money and capital market rates over German, might lower rates without the Bundesbank moving first. Last month, the Central Bank lowered its special advances rate to 5.1 pct from 5.25 pct after the Bundesbank dropped its repurchase tender rate to 3.55 pct from 3.8 pct. That rate has remained in force, just holding above the five pct official secured loans rate which governs commercial bank borrowings. Given a strong guilder, a further fall in the West German repo rate would trigger a lower special advances tariff, forcing an official Dutch rate cut, analysts said. In February, when the Bundesbank cut its discount rate to three pct from 3.5 pct, the Central Bank only lowered money market rates and removed a surcharge over the secured loans rate on lending under its three month credit quota. Since then, however, both the Central Bank and Finance Ministry have made it clear they favour lower official rates. In April, Central Bank President Wim Duisenberg said he would follow any Bundesbank cut, and last week the Finance Ministry expressed satisfaction when it raised 2.25 billion guilders with a six pct coupon state loan priced at 100.10 pct for an effective yield of 5.98 pct, the lowest since 1965. Technically, analysts said, there has to be a difference between the secured loans rate which applies to lending under the credit quota, and the tariff on special advances which add extra liquidity to the money market. Bank economists and dealers said a West German move to further lower the rate on securities repurchase pacts would result in the Central Bank easing the special advance rate, provided the guilder/mark relationship permitted. The Central Bank aims to keep the guilder stable around its parity value within the European Monetary System of 112.673 guilders per 100 marks. Today, foreign exchange buying pushed the mark up 10 guilder cents to 112.705 guilders per 100 at the fix, a level that would not permit a change in the interest rate differential between West Germany and the Netherlands, dealers said. An economist at ABN Bank said he expected West German and Dutch interest rates to ease in the short term. However, he said new wage agreements in West Germany had raised inflation expectations which would put upward pressure on interest rates in the longer term. In the Netherlands, the inflation outlook for 1987 is nil, or even negative, while the latest official economic forecasts point to a falling rate of economic growth. “It will depend on the outcome of collective wage agreement negotiations here whether there could be cost push inflation,” the ABN economist said. He said Dutch money supply growth, which ran at 3.4 pct in January, could also contribute to some inflation. At Amro Bank, a leading analyst said inflation could run to two pct next year. The bank expects Dutch capital market rates, currently averaging around 6.1 pct, to stop easing in the second half of this year and stabilize around 5.6 pct. Analysts said an official rate cut could trigger a buying spree on the bond market which would bring yields down, probably only temporarily, while money rates could fall below five pct. Currently, all periods are traded at 5.12 to 5.25 pct in the money market. REUTER 1-JUN-1987 12:01:25.49 ukfranceitaly F f1527reute r f BC-GLOBAL-EQUITY-OFFERIN 06-01 0104 GLOBAL EQUITY OFFERINGS RISING AT RECORD RATES LONDON, June 1 – Cross border stock market investment is rising at unprecedented rates, seeking a high return and diversification, Charles Lillis, associate director of , a subsidiary of Merrill Lynch and Co Inc , said. He told an international equities seminar here that global equity offerings amounted to 3.7 billion dlrs in the first quarter, compared with 11.4 billion dlrs in all of last year and 4.1 billion dlrs in 1985. He said most new issues would come from countries with underdeveloped potential, such as France and Italy. Reuter 1-JUN-1987 12:05:46.19 gold canada M f1554reute u f BC-/NORTHGATE-QUEBEC-GOL 06-01 0114 NORTHGATE QUEBEC GOLD WORKERS END STRIKE TORONTO, June 1 – Northgate Exploration Ltd said hourly-paid workers at its two Chibougamau, Quebec mines voted on the weekend to accept a new three-year contract offer and returned to work today after a one-month strike. It said the workers, represented by United Steelworkers of America, would receive a 1.21 dlr an hour pay raise over the life of the new contract and improved benefits. Northgate, which produced 23,400 ounces of gold in first quarter, said that while the strike slowed production, “We are still looking forward to a very satisfactory performance.” The Chibougamau mines produced 81,500 ounces of gold last year. Reuter 1-JUN-1987 12:08:40.30 west-germany RM f1571reute b f BC-NATIONAL-HOME-LOANS-L 06-01 0099 NATIONAL HOME LOANS LAUNCHES 100 MLN DLR EUROBOND FRANKFURT, June 1 – National Home Loans Corp Plc of London is raising 100 mln dlrs through a five-year bullet eurobond carrying an 8-3/4 pct coupon and priced at 100-5/8 pct to yield 8.59 pct at issue, lead manager Commerzbank AG said. Payment date is July 7. The bond pays interest on that date annually, and matures on that date in 1992. Denominations are 1,000 and 10,000 dlrs. The bond will be listed in London. Fees total 1-7/8 pct, comprising 5/8 pct for management and underwriting combined and 1-1/4 pct for selling. REUTER 1-JUN-1987 12:11:00.22 F f1591reute f f BC-******INTERNATIONAL-M 06-01 0013 ******INT’L MINERALS/CHEMICAL GETS EPA APPROVAL FOR GENETICALLY ENGINEERED PRODUCT Blah blah blah. 1-JUN-1987 12:12:21.68 acq usa F f1603reute r f BC-ROYAL-GOLD--A 06-01 0100 ROYAL GOLD AGREES TO MAKE ACQUISITION DENVER, June 1 – Royal Gold Inc said it has signed two agreements in principle to acquire the stock of two units for 1.1 mln shares of Royal Gold common stock. Royal said the assets of the units it will acquire from Transwestern are mostly gold properties. It added it expects to close the deals on June 18 and 19, subject to standard closing conditions, including title and environmental approval and closing of a definitive agreement. Royal said the shares issued in the deal will be subject to registration rights. Reuter 1-JUN-1987 12:12:33.39 usa F f1605reute r f BC-INTEGRATED-IN-PACT-WI 06-01 0110 INTEGRATED IN PACT WITH NYNEX UNIT BRIDGEWATER, N.J., June 1 – said it entered into an agreement with Nynex Corp’s Nynex Enterprises Corp which could enable New England Telephone and New York Telephone to offer advanced data capability. Nynex Enterprises is testing Intergrated’s data/voice and universal switched data capability system, the company said. Integrated said the system is capable of enabling New England and New York telephone companies to provide certain circuit-switched data transmission and certain simultaneous voice and data transmissions using the existing telephone network, the company said. Reuter 1-JUN-1987 12:12:59.09 canadafrance E F f1608reute r f BC-TELEGLOBE-HAS-CANADA/ 06-01 0096 TELEGLOBE HAS CANADA/FRANCE SATELLITE LINK MONTREAL, June 1 – Teleglobe Canada Inc, owned by Memotec Data Inc (MDI.M), said it received an order from Credit Lyonnais Canada for a direct satellite link between Canada and France that will be the first private satellite network between the two countries. Value of the contract was undisclosed. Teleglobe said the connection will provide the bank with a permanent link to the digital phone switch at its parent company’s Paris headquarters and connect it with Credit Lyonnais’ network in France and the rest of the world. Reuter 1-JUN-1987 12:13:39.02 uk A f1614reute r f BC-STG-COMMERCIAL-PAPER 06-01 0104 STG COMMERCIAL PAPER EXCEEDS ONE BILLION IN APRIL LONDON, June 1 – Total sterling commercial paper outstanding rose 251 mln stg to 1.19 billion in April, taking it above one billion stg for the first time since the market opened in May 1986, figures released today by the Bank of England show. Banks’ holdings of commercial paper totalled 264 mln stg at end-April, down six mln from March. Of the total, 225 mln had been issued by U.K. Companies, up three mln from March. Changes in these holdings are included in the “bank lending in sterling to the U.K. Non-bank private sector” component of M3 money supply. Reuter 1-JUN-1987 12:14:30.77 nigeria perez-de-cuellar RM f1619reute u f BC-NIGERIA-HOSTS-TALKS-O 06-01 0101 NIGERIA HOSTS TALKS ON AFRICAN ECONOMIES LAGOS, June 1 – A conference to assess the economic recovery of African states begins in the proposed Nigerian capital Abuja on June 15, Foreign Ministry officials said today. Organised by Nigeria in collaboration with the Economic Commission for Africa, the June 15-19 conference would be attended by several African leaders as well as United Nations Secretary General Perez De Cuellar, they said. Huge debts, falling prices of their export commodities and in some cases drought have imposed severe hardships on the economies of African states. REUTER 1-JUN-1987 12:14:54.57 earn usa F f1622reute d f BC-HAWKINS-CHEMICAL-INC< 06-01 0058 HAWKINS CHEMICAL INC 2ND QTR MAR 31 NET MINNEAPOLIS, MINN., June 1 – Shr 12 cts vs six cts Net 398,318 vs 211,801 Sales 7,385,107 vs 7,275,162 Six Mths Shr 22 cts vs 13 cts Net 736,219 vs 446,288 Sales 14.3 mln vs 14.2 mln NOTE: Per share earnings adjusted for ten pct stock dividend paid February 1987. Reuter 1-JUN-1987 12:14:58.31 usa F f1623reute s f BC-EQUITABLE-REAL-ESTATE 06-01 0035 EQUITABLE REAL ESTATE SHOPPING PAYS DIVI NEW YORK, June 1 – Qtrly div 25 cts vs 25 cts Pay Aug 15 Record June 30 NOTE: Full name of company is equitable real estate shopping centers l.p. Reuter 1-JUN-1987 12:17:35.79 gold canada E F f1633reute r f BC-NORTHGATE--QUEBE 06-01 0113 NORTHGATE QUEBEC WORKERS END STRIKE TORONTO, June 1 – Northgate Exploration Ltd said hourly-paid workers at its two Chibougamau, Quebec, mines voted on the weekend to accept a three-year contract offer and returned to work today after a one-month strike. It said the workers, represented by United Steelworkers of America, would receive a 1.21-dlr-an-hour pay raise over the life of the new contract and improved benefits. Northgate, which produced 23,400 ounces of gold in first quarter, said that while the strike slowed production, “We are still looking forward to a very satisfactory performance.” The Chibougamau mines produced 81,500 ounces of gold last year. Reuter 1-JUN-1987 12:17:51.08 jobs portugal RM f1634reute r f BC-PORTUGUESE-UNEMPLOYME 06-01 0068 PORTUGUESE UNEMPLOYMENT STEADY IN FIRST QUARTER LISBON, June 1 – Unemployment in Portugal held steady at 9.6 pct in the first quarter of 1987 after the same rate in the last quarter of 1986, the National Statistics Institute said. This compared with 11.1 pct unemployment in the first quarter of 1986. The total number of registered unemployed in the first quarter of this year was 437,500. REUTER 1-JUN-1987 12:18:59.46 usa V RM f1639reute u f BC-U.S.-BUDGET-ACCORD-MA 06-01 0099 U.S. BUDGET ACCORD MAY BE REACHED THIS WEEK WASHINGTON, June 1 – Congressional budget negotiators may reach an agreement this week on a 1988 budget plan, House and Senate Budget Committee sources said. They held out hope that an agreement can be hammered out, especially over the thorny issues of taxes and defence spending levels. “It may come this week,” a Senate source said. “They are making progress,” a House source said about back room negotiations. Despite these new notes of optimism, earlier hopes for quick agreement had been dashed when negotiators stalled. House and Senate negotiators, working on different budgets, have been stymied over proposals for new taxes and defence spending levels. Both measures seek 18 billion dlrs in new taxes in 1988, but the Senate proposes nearly 119 billion dlrs in taxes over a four year span, while the House calls for only 57 billion dlrs over three years. The Senate plan would allocate about seven billion dlrs a year for defence, a proposal not in the House plan which calls for 1988 defence spending levels nearly eight billion dlrs under the Senate plan. The two sides have not had a formal negotiating meeting since May 13. Both House and Senate would have to approve a final compromise budget, which would be the working U.S. budget for fiscal 1988, starting Oct. 1. Although the congressional budget proposes tax levels, the actual approval of specific tax plans must be implemented through legislationd rafted by the House Ways and Means Committee and Senate Finance Committee which have been cool to the idea of higher taxes. Reuter 1-JUN-1987 12:26:10.59 usa A RM f1662reute r f BC-DAYTON-HUDSON--SE 06-01 0109 DAYTON HUDSON SELLS 9-7/8 PCT DEBENTURES NEW YORK, June 1 – Dayton Hudson Corp is raising 150 mln dlrs through an offering of sinking fund debentures due 2017 with a 9-7/8 pct coupon and par pricing, said lead manager Goldman, Sachs and Co. That is 129 basis points over the yield of comparable Treasury securities. The issue is non-refundable for 10 years. A sinking fund starting in 1998 can be increased by 200 pct at the company’s option, giving them an estimated minimum life of 13.85 years and maximum life of 20.5 years. Moody’s rates the debt Aa-3 and Standard and Poor’s rates it AA. Reuter 1-JUN-1987 12:28:04.45 ukiran G f1669reute d f BC-FLOODS-AND-HEAVY-RAIN 06-01 0070 FLOODS AND HEAVY RAIN HIT IRAN LONDON, June 1 – Fifty people were killed or injured in flooding in southeastern Iran and three died after heavy rain elsewhere, Tehran Radio reported today. The radio, monitored by the British Broadcasting Corp, said flooding around Zahedan, near the Pakistan-Afghanistan border, caused heavy damage. Rain in central Iran damaged houses, bridges, crops and irrigation systems. Reuter 1-JUN-1987 12:29:47.87 usa F f1674reute u f BC-INT’L-MINERALS- 06-01 0073 INT’L MINERALS BIOTECH PRODUCT GETS NOD NORTHBROOK, ILL., June 1 – International Minerals and Chemical Corp said the U.S. Environmental Protection Agency granted permission to its subsidiary, IMCERA Bioproducts Inc, to make a genetically engineered microorganism for use as a growth factor in laboratories. The action marks the first time such a biotechnological product has undergone successful review by the EPA, it said. The EPA action clears the way for IMCERA to begin commercial production of the microorganism, Escherichia Coli K-12, in the production of its IGF-I growth factor for use in laboratories in cultivating tissues and cells, it said. Escherichia Coli K-12 is a non-pathogenic organism commonly used in laboratory operations for studies and commercial fermentations, and does not affect humans, it said. International Minerals said it plans to manufacture the microorganism at IMCERA’s plant in Terre-Haute, Indiana and market it to research institutions and pharmaceutical companies in the U.S. and other countries. Reuter 1-JUN-1987 12:30:21.95 usa F f1678reute r f BC-NORTH-AMERICAN- COMPLETES PLACEMENT EAST HARTFORD, Conn., June 1 – North American Holding Corp said it completed a three mln dlr private placement of restricted Class A non-voting common stock to two private investors. The company said the stock was sold to real estate developers Simon Konover of West Hartford, and Harry Gampel of Boca Raton, Fla. The transaction is for 375,000 shares of Class A stock, or approximately 2.75 pct of the total North American Holding voting and non-voting common shares outstanding, it said. Reuter 1-JUN-1987 12:39:52.16 F f1717reute b f BC-******LITTON-INDUSTRI 06-01 0010 ******LITTON INDUSTRIES UNIT GETS 223.2 MLN DLR NAVY CONTRACT Blah blah blah. 1-JUN-1987 12:51:27.18 acq usa F f1748reute u f BC-HBO 06-01 0111 PARTNERSHIP UPS HBO STAKE TO 8.7 PCT WASHINGTON, June 1 – Andover Group, a Great Falls, Va., investment partnership that is seeking control of HBO and Co, said it raised its stake in the company to 2,026,000 shares, or 8.7 pct of the total, from 1,626,000 shares, or 7.0 pct. In a filing with the Securities and Exchange Commission, the partnership said it bought 400,000 HBO common shares for 5.4 mln dlrs on May 28. The group, which has a slate of candidates seeking board seats, said it would decide whether to submit an offer to acquire the company after the HBO annual shareholders meeting, which was to have been April 30, but was postponed. Reuter 1-JUN-1987 12:54:00.11 usa F f1753reute d f BC-INFINITE-GRAPHICS- TO POST PROFIT CHICAGO, June 1 – Infinite Graphics Inc expects to report earnings for the fiscal year ended April 30 of about 360,000 dlrs, or 20 cts a share, Chairman Cliff Stritch Jr told Reuters in an interview. In the prior fiscal year, the Minneapolis-based company reported a loss of 812,000 dlrs or 46 cts a share. Stritch cited strength in the company’s electrical printed circuit board software and CAD/CAM (computer aided design/computer aided manufacturing) business. He also said two new products, using scanning and vectorization, are under development. Reuter 1-JUN-1987 12:54:09.87 usa F f1754reute h f BC-N.A.-COMMUNICATIONS-< 06-01 0035 N.A. COMMUNICATIONS LIMITS LIABILITY HECTOR, Minn., June 1 – North American Communications Inc said its shareholders approved at the annual meeting an amendment to limit the liability of its directors. Reuter 1-JUN-1987 12:55:20.32 acq usa F f1756reute u f BC-HUMANA--TO-BUY-I 06-01 0071 HUMANA TO BUY INT’L MEDICAL ASSETS TALLAHASSEE, Fla., June 1 – Humana Inc said a Florida Judge approved a previously announced proposal for the company to buy certain assets of International Medical Centers, which had been declared insolvent and put into receivership in early May. Humana said it will pay 40 mln dlrs to the state’s Department of Insurance to pay prior claims and 20 mln dlrs in working capital. Reuter 1-JUN-1987 12:56:10.36 acq usa F f1758reute r f BC-DIVERSIFIED-INDUSTRIE 06-01 0115 DIVERSIFIED INDUSTRIES (DMC) TO SELL UNITS ST. LOUIS, June 1 – Diversified Industries Inc plans to recover more than four mln dlrs from the sale of two marginal subsidiaries, chairman Ben Fixman told the annual meeting. Fixman said Diversified Industries, as part of its effort to redeploy assets, wants to sell its Theodore Sall Inc and Liberty Smelting Works (1962) Ltd units. The two either lost money or had marginal profitability in recent years, he said. Diversified also said it is in the process of obtaining six mln dlrs in an industrial revenue bond financing from the State of Connecticut to modernize the company’s Plume and Atwood Brass Mill plant in Thomaston, Conn. Reuter 1-JUN-1987 12:58:20.82 usa F f1761reute u f BC-LITTON--GETS-223 06-01 0078 LITTON GETS 223.2 MLN DLR NAVY CONTRACT BEVERLY HILLS, Calif., June 1 – Litton Industries Inc said the Navy awarded a 223.2 mln dlr contract to its Data Systems division to produce a certain comman and contraol systems for the U.S. Marine Corps and the U.S. Air Force. Litton said the contract includes options for government’s 1988 and 1989 fiscal years and for additional systems which could bring the total contract through fiscal 1989 to 750 mln dlrs. Reuter 1-JUN-1987 13:04:05.62 usa F f1780reute r f BC-WHITTAKER--SEES 06-01 0098 WHITTAKER SEES HIGHER 1987 PROFITS LOS ANGELES, June 1 – Whittaker Corp chairman and chief executive officer Joseph Alibrandi said the company expects to report operating profits in fiscal 1987 that exceed 1986 results of 41.5 mln dlrs. “We continue to expect fiscal 1987 operating profits for the chemicals and technology segments to exceed the results reported for 1986,” Alibrandi said. Whittaker reported fiscal 1986 operating earnings for its chemical segment of 18.0 mln dlrs, and for its technology segment of 23.4 mln dlrs. The company’s fiscal year ends October 31. Earlier, Whittaker reported profits of 3.1 mln dlrs, or 37 cts a share, for the second quarter ended April 30, versus a loss of 4.5 mln dlrs, or 35 cts a share in the same period last year. Reuter 1-JUN-1987 13:07:34.85 kenya C T M f1795reute r f BC-KENYAN-PRESIDENT-RESH 06-01 0110 KENYAN PRESIDENT RESHUFFLES CABINET NAIROBI, June 1 – President Daniel arap Moi replaced his ministers of foreign affairs and economic planning in a far reaching cabinet reshuffle, the official Kenya News Agency (KNA) said. Zachary Onyonka, former economic planning minister, replaces as foreign minister Elijah Mwangale, who moves to agriculture. Anrew Omanga, former minister of tourism and wildlife, becomes minister of planning and national development after Robert Ouko, who moves to the newly created ministry of industry. Fourteen ministers retain their old jobs, including Finance Minister George Saitoti and Energy Minister Nicolas Biwott. Reuter4 1-JUN-1987 13:07:48.62 usa F f1796reute b f BC-HARCOURT--HAS-NO 06-01 0089 HARCOURT HAS NO COMMENT ON SUIT New York, June 1 – Harcourt Brace Jovanovich Inc said it has no comment at this time on the lawsuit filed against it by British publisher Robert Maxwell. In the suit, Maxwell’s British Printing and Communication Corp is attempting to stop Harcourt’s payment of a 40 dlr per share special dividend and other actions. Harcourt announced its recapitalization plan to escape a hostile bid by Maxwell. Maxwell last week withdrew his 44 dlr per share or two billion dlr bid because of the plan. Reuter 1-JUN-1987 13:08:15.43 usa F A RM f1798reute r f BC-AMERICAN-EXPRESS- UNIT IN FUNDING PROGRAM NEW YORK, June 1 – American Express Co’s Shearson Lehman Brothers said it helped establish a national pooled capital program offering low-cost financing to small and medium-sized businesses. Shearson said that it and non-profit will help organize the Enterprise Capital Fund, which will initially have a 100 mln dlr pool. The capital will be used primarily to make loans that finance small business growth and other projects that contribute to job creation and economic develpment, Shearson said. Reuter 1-JUN-1987 13:08:27.48 usa F f1799reute u f BC-GM--UAW-COUNCIL-O 06-01 0095 GM UAW COUNCIL OPENS SESSION DETROIT, June 1 – About 300 local representatives on the United Automobile Workers union’s General Motors Corp bargaining council convened at a Detroit hotel this morning for private strategy sessions in the run-up to this summer’s national contract bargaining covering 380,000 UAW members at GM. AlThough the sessions were closed to the press, UAW vice-president Donald Ephlin urged delegates in a bargaining document obtained by Reuters to be “willing to use creative and non-traditional means in achieving our bargaining goals.” The document calls outsourcing of GM’s production work to foreign or non-GM operations “perhaps the greatest single threat to the job security of our members” and urges bargainers to seek an expansion of limits on the giant automaker’s ability to outsource. While saying that outsourcing pits “worker against worker” and the UAW “will not tolerate this practice,” the document falls short of demanding an outright ban on the practice and instead calls for improvements in “current provisions and restrictions on outsourcing.” The union said its barginers must seek bans against plant and work place closings “similar to those included in our 1982 and 1984 contracts.” In addition, the UAW said, “full resumption of our traditional wage formula is a top priority in this set of negotiations.” While the document does not specify a percentage wage increase, the UAW’s traditional standard before making concessions in 1982 was a three pct annual wage increase with benefits calculated from the base wage rate. Reuter 1-JUN-1987 13:09:31.47 acq usa F f1803reute u f BC-PIEZO 06-01 0070 INSURANCE FIRM AS PIEZO PREFERRED STAKE WASHINGTON, June 1 – Corporate Life Insurance Co, a West Chester, Pa., insurance firm, told the Securities and Exchange Commission it has acquired 44,600 shares of preferred stock in Piezo Electric Products Inc, or 10.8 pct of the total. Corporate insurance said it bought the cumulative convertible preferred stock stake for 199,690 dlrs for investment purposes. Reuter 1-JUN-1987 13:10:14.00 acq usa F f1805reute d f BC-CELLULAR-INC- 06-01 0082 CELLULAR INC TO SELL UNIT, TAKE GAIN DENVER, June 1 – Cellular Inc said it reached a definitive agreement to sell assets of its wholly owned Michigan Cellular Inc to Century Telephone Enterprises Inc and add 28 cts a share to the year’s earnings as a result. It said the sale, subject to regulatory approval, represents a capital gain in excess of 800,000 dlrs over the original price paid by Cellular for its cellular interests in Michigan, acquired in December 1986. Reuter 1-JUN-1987 13:12:30.58 usa F Y f1814reute b f BC-JUDGE-REDUCES-JURY-AW 06-01 0103 JUDGE REDUCES JURY AWARD TO COASTAL CHEYENNE, Wyo., June 1 – Coastal Corp said a federal district court judge has upheld a trial jury’s judgment against a Occidental Petroleum Corp subsidiary but reduced the amount awarded a Coastal subsidiary to 412 mln dlrs from 549 mln dlrs. The company said Judge Clarence A. Brimmer denied all post-trial motions by Occidental’s Natural Gas Pipeline Co of America but did eliminate the trebling of a portion of the damages for future lost profits and part of the damages for interference with a contract awarded by the jury in the antitrust case last October. An Occidental spokesman said the company has previously said it will take the case to the federal appeals court which has previously upheld the Federal Energy Regulatory Commission regulations Natural Gas Pipeline was following in its dealings with Coastal’s Colorado Interstate pipeline subsidiary and Union Pacific Corp Champlin Petroleum Co subsidiary. Reuter 1-JUN-1987 13:12:38.76 goldsilver usa comex F A RM f1815reute u f BC-LITTLE-REACTION-TO-CO 06-01 0109 LITTLE REACTION TO COMEX PRICE LIMIT REMOVAL New York, June 1 – The elimination of price limits on precious metals contracts trading at the Commodity Exchange in New York appears to be having little effect on the market, analysts said. “There is nothing apparent from the change,” said William O’Neill, director of futures research at Elders Futures Inc. “The market has not approached the old price limits and trading is relative quiet, in narrow ranges,” he added. Gold futures, which previously had a limit of 25 dlrs on market moves in most back months, were about 7.00 dlrs weaker in the nearby contracts amid thin conditions, traders said. On May 5, COMEX did away with price limits on the two contracts following spot after a volatile market in silver futures at the end of April caused severe disruptions. During the last week of April, silver futures traded up and down the price limit in the back months, causing traders to rush into the spot contract to offset those moves, analysts said. As a result, Elders’ O’Neill said, there was much confusion, many unmatched trades, and large losses. The COMEX fined Elders Futures and three other large firms a total of 100,000 dlrs for failure to resolve unmatched trades in a timely manner. Silver futures were trading about 30-40 cts weaker in the nearby contracts amid quiet trading today. O’Neill said the elimination of price limits on all COMEX metals futures would add caution to trading since all contracts could move any distance. “This is amore realistic approach because the metals market is a 24 hours market and prices can move without limit,” O’Neill said. Paul Cain, a vice president at Shearson Lehman Brothers, said the elimination of price limits will cut back on panic buying or selling and contribute to more orderly markets. Reuter 1-JUN-1987 13:16:36.85 earn usa F f1821reute d f BC-COMPTEK-RESEARCH-INC 06-01 0041 COMPTEK RESEARCH INC 4TH QTR MARCH 31 BUFFALO, N.Y., June 1 – Shr 17 cts vs four cts Net 373,000 vs 82,000 Sales 10.1 mln vs 7,825,000 Year Shr 45 cts vs 27 cts Net 981,000 vs 595,000 Sales 34.5 mln vs 28.5 mln Reuter 1-JUN-1987 13:17:29.66 usa A RM f1824reute r f BC-CINCINNATI-BELL- 06-01 0070 CINCINNATI BELL TO SELL 10-YEAR NOTES NEW YORK, June 1 – Cincinnati Bell Inc said it will sell up to 90 mln dlrs of 10-year notes to complete the financing of its acquisition of Auxton Computer Enterprises Inc. It said it plans to issue the notes within the next few months. Cincinnati Bell acquired Auxton on May six. Shearson Lehman Brothers Inc will lead the underwriting group, the company said. Reuter 1-JUN-1987 13:19:46.26 usajapan F f1828reute u f AM-U.S.-PROBES-RJR- 06-01 0097 U.S. PROBES RJR TAINTED TOBACCO SHIPMENTS WASHINGTON, June 1 – Federal law enforcement authorities said they began a criminal investigation of R.J. Reynolds Tobacco Co after the company imported herbicide-tainted tobacco and then exported tainted cigarettes to Japan. “We can confirm that the U.S. Customs Service has launched a criminal investigation of Reynolds,” a Customs spokesman told Reuters. “There is an investigation under way,” said Bob Edmunds, the U.S. attorney in Greensboro, N.C. Reynolds is a subsidiary of RJR Nabisco Inc. of Winston-Salem, N.C. The investigation is particularly embarrassing–for Tokyo and Washington, as well as the company–because the Japanese government, under pressure from the United States, agreed only last year to open its markets to U.S.-made tobacco products. R.J. Reynolds spokesman David Fishel said in a telephone interview that his company acknowledged importing into the United States large amounts of tobacco treated with a weedkiller called Dicamba, and then exporting cigarettes made with the tobacco to Japan. He acknowledged the weed killer was present in the tobacco at levels exceeding U.S. standards but said use of the tobacco did not pose a threat to human health. “Dicamba is approved by the government for use on a variety of crops including food crops, and is widely used as a ripening agent on tobacco,” Fishel said. Earlier today, Japanese Finance Ministry official Etsuzo Kawade said in Tokyo that government authorities were holding a large shipment of Winston Lights manufactured by R.J. Reynolds after tests showed some of them contained unacceptable amounts of the weedkiller. “We do not believe the herbicide posed a serious threat to people’s health but the levels were unacceptable by law,” Kawade said. Reuter 1-JUN-1987 13:20:47.21 nat-gascrude usa Y f1830reute r f BC-GULF-OF-MEXICO-RIG-CO 06-01 0102 U.S. GULF OF MEXICO RIG COUNT CLIMBS TO 38.9 PCT HOUSTON, June 1 – Utilization of offshore mobile rigs in the Gulf of Mexico climbed by 2.1 pct last week to 38.9 pct, reflecting a total of 91 working rigs, Offshore Data Services said. One year ago, the Gulf of Mexico utilization rate was 32.5 pct. Offshore Data Services said some drilling contractors had reported recent increases of about 1,000 dlrs a day on large jackup rigs, which now command rates of 11,000 to 12,000 dlrs a day. In the European/Mediterranean area the rig utilization rate rose 0.6 pct to 53.6 pct, against 67.3 pct one year ago. Worldwide rig utilization rose by 1.2 pct to 57.7 pct, reflecting a net increase of eight working rigs. Offshore Data Services said a total of 419 rigs were in use worldwide and 307 were idled last week. Reuter 1-JUN-1987 13:24:07.90 acq usa F f1845reute h f BC-DOTRONIX--COM 06-01 0046 DOTRONIX COMPLETES ACQUISITION NEW BRIGHTON, MINN, June 1 – Dotronix Inc said it completed the acquisition of Video Monitors Inc for 3.92 mln dlrs. Video Monitors is a privately-owned Wisconsin-based manufacturer of video display and and video monitor devices. Reuter 1-JUN-1987 13:25:07.36 earn usa F f1848reute d f BC-DATAFLEX-CORP- 4TH QTR MARCH 31 NET EDISON, N.J., June 1 – Shr 11 cts vs eight cts Net 248,000 vs 155,000 Revs 4,385,000 vs 2,487,000 Year Shr 36 cts vs 12 cts Net 720,000 vs 220,000 Revs 15.2 mln vs 9,253,000 NOTE: Share adjusted for 10 pct stock dividend in April 1987. Reuter 1-JUN-1987 13:25:38.48 earn canada F E f1850reute d f BC-POLYDEX-PHARMACEUTICA 06-01 0030 POLYDEX PHARMACEUTICALS LTD 1ST QTR TORONTO, June 1 – April 30 end Shr loss one ct vs loss two cts Net loss 83,116 vs loss 266,037 Sales 1,393,455 vs 1,035,500 Reuter 1-JUN-1987 13:25:49.21 grainwheat francepakistan ec C G f1851reute u f BC-ONIC-TENDERS-WEDNESDA 06-01 0077 ONIC TENDERS WEDNESDAY FOR WHEAT FOR PAKISTAN PARIS, June 1 – The French Cereals Intervention Board (ONIC) will tender Wednesday for 20,000 tonnes soft wheat for Pakistan under the French food aid programme, an ONIC official said. The grain will be shipped between June 15 and July 15. ONIC also will hold a tender June 9 for 65,000 tonnes soft wheat under the European Community food aid programme, for shipment in bulk during August, the official said. Reuter 1-JUN-1987 13:26:11.21 usa A RM f1853reute r f BC-MAY--SELLS-9-7/8 06-01 0094 MAY SELLS 9-7/8 PCT 30-YEAR DEBENTURES NEW YORK, June 1 – May Department Stores Co is raising 100 mln dlrs through an offering of debentures due 2017 with a 9-7/8 pct coupon and par pricing, said lead manager Morgan Stanley and Co Inc. That is 129 basis points more than the yield of comparable Treasury securities. Non-refundable for 10 years, the issue is rated Aa-3 by Moody’s and Aa-minus by Standard and Poor’s. The gross spread is 8.75 dlrs, the selling concession is 5.50 dlrs and the reallowance is 2.50 dlrs. E.F. Hutton co-managed the deal. Reuter 1-JUN-1987 13:27:15.85 coffeecocoa togofrance C T f1858reute r f BC-FRENCH-AID-TO-TOGO-TO 06-01 0046 FRENCH AID TO TOGO TO HELP COFFEE, COCOA TREES LOME, June 1 – France is to provide Togo with 475 mln cfa francs of aid for a range of projects that include development of the coffee and cocoa industries and reafforestation in the south of the country, official sources said. Reuter 1-JUN-1987 13:28:33.14 F f1864reute f f BC-******middle-south-sa 06-01 0013 ******MIDDLE SOUTH SAYS U.S. SUPREME COURT STAYS RULING DENYING MISSISSIPPI RATES Blah blah blah. 1-JUN-1987 13:29:21.73 acq usa F f1868reute d f BC-(CLARK-COPY)-BUYS-NOR 06-01 0077 (CLARK COPY) BUYS NORWEGIAN FIRM ELK GROVE VILLAGE, Ill., June 1 – Clark Copy International Corp said it bought a Norwegian drafting machines company for three mln U.S. dlrs. Clark Copy said its majority-owned Norwegian subsidiary, Interactive Computer Aids Co of Norway, purchased Kongsberg Drafting Systems, a division of Norwegian state-owned Kongsberg Vappenfabrikk. Kongsberg Drafting’s annual worldwide sales are about 15 mln dlrs, Clark Copy said. Reuter 1-JUN-1987 13:31:13.21 usa A RM f1871reute r f BC-CHI-CHI’S--DEBT 06-01 0104 CHI-CHI’S DEBT DOWNGRADED BY S/P NEW YORK, June 1 – Standard and Poor’s Corp said it cut to B from B-plus 50 mln dlrs of convertible subordinated debentures of Chi-Chi’s Inc. The company’s senior debt rating is BB-minus. S and P said the action reflected poor performance from Chi-Chi’s chain of 200 Mexican food restaurants. The agency also said that a planned repurchase of three mln common shares will result in reduced equity of 23 mln dlrs and a rise in debt leverage to 67 pct from about 60 pct in fiscal 1987. Chi-Chi’s posted a 5.7 mln dlr loss for the nine months ended January 31, S and P noted. Reuter 1-JUN-1987 13:33:48.14 west-germany kohl V f1888reute u f AM-ARMS-KOHL 1STLD 06-01 0110 KOHL COALITION ACCEPTS DOUBLE-ZERO BONN, June 1 – West Germany said it would accept a superpower plan to ban medium and shorter-range nuclear missiles in Europe provided Bonn was allowed to retain its own shorter-range missiles. After six weeks of public wrangling over the so-called “double-zero” offer, Chancellor Helmut Kohl’s coalition finally said it would agree to an East-West ban on shorter-range nuclear missiles. But in a statement issued after top-level talks, the government said Bonn wanted the 72 West German Pershing-1a missiles excluded from an East-West accord — a demand diplomats said could produce a snag in the Geneva arms talks. Reuter 1-JUN-1987 13:34:02.62 crudenat-gas usacanada Y f1889reute r f BC-HUGHES’-U.S.-RIG-COUN 06-01 0109 BAKER HUGHES’ U.S. RIG COUNT FALLS TO 758 HOUSTON, June 1 – The U.S. drilling rig count fell by four last week to a total of 758, against 723 working rigs at this time last year, Baker Hughes Inc said. In Canada, the weekly rig count rose 19 to 100, compared to 46 working rigs last year. Among individual states, the steepest declines were in Oklahoma and Louisiana which lost eight and seven, respectively. Drilling increases were reported by Michigan, up by five rigs, and Ohio and Pennsylvania which each rose by three. Baker Hughes said the total of 758 working rigs in the United States included 84 rigs working in offshore waters. Reuter 1-JUN-1987 13:37:47.16 tradelumber usacanada E F f1897reute d f BC-u.s.-trade-bill-very 06-01 0113 U.S. TRADE BILL VERY DANGEROUS FOR CANADA, LOBBY TORONTO, June 1 – A trade bill before the United States House of Representatives “is a very dangerous bill for Canadian industry,” Canadian Forest Industry Council chairman Adam Zimmerman told reporters. By changing the definition of subsidy under U.S. countervailing duty law, House of Representatives Bill 3 removes protection for companies that take advantage of widely used government programs, Zimmerman told a media briefing. “Clearly, any industry to which Canadian governments grant rights to fish, mine, cut timber, or produce power could be vulnerable to a finding of a subsidy under this language,” he said. The Canadian forest lobby’s Zimmerman also said the House of Representative Bill would adopt a new way of measuring subsidies that would greatly increase the size of any countervailing duties that might be imposed on Canadian resource exports to the U.S. Under the bill, any difference between Canadian prices and U.S. or world market prices would constitute a subsidy, he said. Such a method would make Canadian resource industries vulnerable to similar penalties like a 15 pct export tax imposed last January on shipments of Canadian softwood lumber to the U.S., Zimmerman added. Canadian negotiators agreed to levy the new tax if a U.S. forest industry lobby would drop its request for a countervail duty on imports of Canadian softwood lumber. “We represent the first victim of the move to price other countries’ natural resources according to the U.S. system,” Zimmerman said. “If we’re an example, than other resource industries had better watch out,” he added. Zimmerman said the Canadian Forest Industry Council plans to discuss concerns about the U.S. trade bill with lobby groups from other Canadian resource industries. Reuter 1-JUN-1987 13:37:51.94 acq usa F f1898reute d f BC-SOCIETY/SAVINGS- FORMS HOLDING COMPANY HARTFORD, Conn., June 1 – Society for Savings said it has completed a merger into newly formed holding company Society for Savings Bancorp Inc on a share-for-share basis. Reuter 1-JUN-1987 13:38:00.49 earn usa F f1899reute d f BC-GEODYNE-RESOURCES-INC 06-01 0097 GEODYNE RESOURCES INC 4TH QTR FEB 28 TULSA, Okla., June 1 – Shr profit three cts vs profit 31 cts Net profit 330,;575 vs profit 1,4;73,100 Revs 1,501,996 vs 2,602,568 Avg shrs 10,964,786 vs 4,446,958 Year Shr loss eight cts vs profit six cts Net loss 91,523 vs profit 746,289 Revs 3,854,821 vs 5,231,598 Avg shrs 6,091,334 vs 4,446,958 NOTE: Share results after preferred dividend requirements of 44,174 dlrs vs 99,901 dlrs in quarter and 377,111 dlrs vs 480,851 dlrs in year Company 40 pct owned by PainWebber Group Inc Reuter 1-JUN-1987 13:38:05.01 acq usa F f1900reute d f BC-LADD-FURNITURE- COMPLETES ACQUISITION HICKORY, N.C., June 1 – LADD Furniture Inc said it has completed the previously-announced acquisition of privately-held Colony House Furniture Inc for an undisclosed amount of cash and notes. Reuter 1-JUN-1987 13:38:53.68 iron-steel luxembourg ec M f1903reute r f BC-EC-MINISTERS-CONSIDER 06-01 0102 EC MINISTERS CONSIDER CUTBACKS IN STEEL SUPPORT LUXEMBOURG, June 1 – A new steel quota system that would strictly limit European Community (EC) support to the industry could be forced on producers if they fail to find their own solution quickly, officials said. EC industry ministers meeting here considered two key proposals aimed at cutting back surplus capacity by 30 mln tonnes by 1990. The first would limit the current quota system, which has protected EC output for seven years, only to flat products and heavy sections, thereby forcing other types of steel products into free market competition. The second proposal would link continuation of a quota system with progress toward plant closures, although less than a month ago the EC steelmakers’ lobby group Eurofer said they had abandoned efforts to close plants voluntarily. The ministers stopped short of imposing their own solution immediately, instead urging steel producers to try again to reach agreement on voluntary cutbacks. The EC Commission has said it will come up with detailed proposals in July on the future of the EC steel industry and EC industry ministers meet again in September to reach a final decision. Reuter 1-JUN-1987 13:39:18.74 usa A RM f1906reute r f BC-PACIFIC-GAS--TO 06-01 0101 PACIFIC GAS TO BUY BACK BONDS NEW YORK, June 1 – Pacific Gas and Electric Co said it will buy back on July one 93.9 mln dlrs of two mortgage bond issues, Series 82A and 82B. The redemption will save the company about 2.8 mln dlrs in annual financing costs for the remaining lives of the two mortgage bond issues, Pacific Gas said. It will buy back the Series 82A bonds at 1,066.60 dlrs per 1,000 dlr principal amount, plus one month’s accrued interest of 12.81 dlrs. It will redeem the Series 82B at 1,105.20 dlrs per 1,000 dlr face amount, plus one month’s accrued interest of 11.14 dlrs. Reuter 1-JUN-1987 13:39:27.01 usa F f1907reute d f BC-TEXAS-AIR’S--CON 06-01 0101 TEXAS AIR’S CONTINENTAL IN EXPANSION CLEVELAND, June 1 – Texas Air Corp’s Continental Airlines said it will begin creation of a Cleveland Hub July one, doubling the number of cities it serves nonstop from Cleveland and increasing daily flights by 50 pct. Continental said it will spend about 14 mln dlrs for facilities expansion in Cleveland and will increase its local employment from 48 to 100 people by July one. Continental will begin four daily nonstop flights to Washington-National, two daily nonstops to Los Angeles, and one daily nonstop each to San Francisco, Orlando and Tampa. Reuter 1-JUN-1987 13:39:38.05 acq usa F f1908reute d f BC-PHILIP-CROSBY- MAKES ACQUISITION WINTER HAVEN, Fla., June 1 – Philip Crosby Associates Inc said it has agreed to acquire Process Integrity Inc of Dallas, a computer software designer, for undisclosed terms. It said Process’ software helps companies monitor industrial processes, identifies problems and recommends solutions. Reuter 1-JUN-1987 13:39:53.15 usa A RM f1909reute r f BC-INTl-AMERICAN-HOMES-< 06-01 0089 INTl AMERICAN HOMES TO SELL CONVERTIBLES NEW YORK, June 1 – International American Homes Inc said it filed on May 29 with the Securities and Exchange Commission a registration statement covering a 25 mln dlr issue of convertible subordinated debentures due 2007. Proceeds will be used to finance the proposed acquisition of Diversified Shelter Group Ltd and affiliated entities and to retire acquisition indebtedness, International American said. The company said Moseley Securities Corp would underwrite the offering. Reuter 1-JUN-1987 13:39:59.26 usa F f1910reute d f BC-QMS--GETS-ZIYAD 06-01 0055 QMS GETS ZIYAD PRODUCT RIGHTS MOBILE, Ala., June 1 – QMS Inc said its Laser Connection subsidiary has been awarded exclusive rights to distribute the entire line of Ziyad laser printer sheet feeders in the U.S. and Canada. The company said it expects the arrangement to add 15 to 20 mln dlrs to its annual sales. Reuter 1-JUN-1987 13:44:01.43 usa F f1921reute u f BC-GENENTECH--SETB 06-01 0103 GENENTECH SETBACK VIEWED AS TEMPORARY By Samuel Fromartz, Reuters NEW YORK, June 1 – Genentech Inc is suffering only a temporary setback following a U.S. agency decision to withhold a recommendation on its genetically-produced drug which is used to treat heart attacks in progress, industry sources and analysts said. “When TPA (the drug) first came on the scene, the projected time scale for approval was 1990,” said Sam Milstein, a scientist and industry consultant. “So even with the new delay that has arisen, in all likelihood the drug will be approved prior to initial projections,” he added. Last Friday, an advisory committee at the Food and Drug Administration, FDA, withheld a recommendation on Genentech’s tissue plasminogen activator, a drug called Activase. Athough it supported Genentech’s claim that the drug dissolves blood clots, the FDA said it wanted data that showed the treatment benefits heart-attack victims. “We will be talking to the FDA as soon as possible to ask specifically what they are looking for,” a Genentech spokeswoman said. She said the company had data that showed improvement in the heart muscle after the drug was administered but had not included it in the FDA filing. Industry analysts also said the 12 point drop in the company’s stock to 37-1/4 was largely expected in light of the speculative nature of the biotechnology companies whose fortunes often depend on the success of an important drug. “In larger pharmaceutical companies each product does not have as much overall significance. But this is very important to Genentech,” said Robert Riley, a senior consultant at Arthur D. Little Inc. Some estimated that Genentech could see as much as 1.5 billion dlrs from the drug. But with each delay, others can enter the market and catch up to Genentech’s lead. Industry sources pointed out that KabiVitrum, in an alliance with Hoechst AG , won a recommendation for its streptokinase drug on the same day Genentech’s application was delayed. Streptokinase, an enzyme-based drug, is also used to treat heart attack victims. In addition, Milstein said that Beecham Group Plc has a drug called Eminase which is “the most likely competitor to TPA,” and from a clinical standpoint, nearly identical. Beecham’s drug has been approved for use in Germany and is awaiting approval in the U.K., he added. Streptokinase was difficult to administer to heart attack victims because it would dissolve before it reached the heart. Another method, which involved pumping the drug directly into the heart through a tube, proved difficult when a heart attack was in progress. TPA was seen as a savior since it was easier to administer and worked quickly. But new developments have made streptokinase more effective and easier to administer, becoming a potential threat to Genentech’s grasp on the TPA market. And if that wasn’t enough, about 30 other biotech companies are quickly developing TPA in Genentech’s path. “Genentech’s advantage is being first in the market,” said industry consultant Scott King, formerly an analyst with Montgomery Securities in San Francisco. “They’ll be the first approved but then they’ll face competition after one or two years.” The company may also face patent pressures for its drug. It is currently about to go to court with Beecham Group in the U.K. in a patent dispute. And while its patent is pending in the U.S., many analysts expect the company to face some suits as soon as the patent is issued, a potentially more harmful situation than any temporary setback in the FDA. Reuter 1-JUN-1987 13:45:10.75 canada E F f1924reute r f BC-COURT-ACTION-SOUGHT-O 06-01 0099 COURT ACTION SOUGHT ON SOUTHAM DEAL TORONTO, June 1 – Southam Inc said a Canadian government official asked the Ontario Supreme Court to order Southam to seek shareholder approval of a 1985 share swap between Southam and fellow newspaper publisher Torstar Corp . Frederick Sparling, an official in the Department of Consumer and Corporate Affairs, wants the share exchange nullified if shareholder approval is not obtained, Southam added. Southam said it believed it had acted properly and would vigorously defend itself in what would probably be a lengthy process. Sparling’s action came after a year-long investigation by the federal corporations branch in response to minority shareholders’ complaints about the share exchange, which gave Torstar a 22 pct stake in Southam. Southam said at the time of the Torstar deal that the share swap was necessary to avert a hostile takeover bid for Southam by a third party. The company declined further comment while the case is before the courts. Reuter 1-JUN-1987 13:48:33.20 acq usa F f1935reute r f BC-PEERLESS-MANUFACTURIN 06-01 0103 PEERLESS MANUFACTURING SELLS UNIT DALLAS, June 1 – Peerless Manufacturing Co said it has sold its Industrial Sensors and Instruments Division and Panhandle Equipment Co subsidiaries for a total of 635,000 dlrs in cash. It said the transaction will result in a loss of about 605,000 dlrs or 50 cts per share, which it will take in the fourth quarter ending June 30. Peerless said due to the sale it will probably have a loss for the year. It said it sold the units, to buyers it did not name, due to increasing losses caused by the depressed petroleum equipment market. Peerless earned 576,000 dlrs or 63 cts per share in fiscal 1986. It said the units being sold lost 28 cts per share in the first nine months of fiscal 1987 and 12 cts in all of fiscal 1986. Reuter 1-JUN-1987 13:54:15.65 acq F f1951reute f f BC-******HICKS-AND-HAAS 06-01 0011 ******HICKS AND HAAS GROUP GETS FINANCING FOR SPECTRADYNE ACQUISITION Blah blah blah. 1-JUN-1987 13:56:13.11 usa F f1955reute u f BC-MIDDLE-SOUTH--GR 06-01 0116 MIDDLE SOUTH GRANTED MISSISSIPPI STAY NEW ORLEANS, June 1 – Middle South Utilities Inc said the U.S. Supreme Court granted the company’s Mississippi Power and Light Co’s request for stay of a Mississippi Supreme Court ruling blocking a portion of the utility’s retail rates. In February, the state court had returned to state regulators a case involving the recovery of Grand Gulf one nuclear power plant costs at the rate of 28 mln dlrs per month. These rates, some of which were deferred for future phase-in, were granted by the state regulators in September 1985 based on Federal Energy Regulatory Commission allocation of the power plant’s cost among Middle South’s subsidiaries. Middle South said one condition of the stay is the posting of a bond that is suitable to the Mississippi Supreme Court. Middle South said the Supreme Court stay brings stability to Mississippi Power and Light’s situation and “removes the possibility of MP and L’s imminent insolvancy while the case is proceeding on the merits.” The company said it expects its subsidiary’s case to prevail on the merits, resolving for all Middle South System companies “issues concerning the prudence and retail rate recovery of costs associated with the Grand Gulf One nuclear unit.” Reuter 1-JUN-1987 13:56:59.91 earn usa F f1957reute h f BC-UNITED-TOTE-INC- 2ND QTR APRIL 30 SHEPHERD, Mont., June 1 – Shr profit four cts vs profit three cts Net profit 64,197 vs profit 56,437 Revs 4.9 mln vs 1.6 mln Six months Shr profit four vs loss seven cts Net profit 67,133 vs loss 114,427 Revs 9.1 mln vs 2.8 mln NOTE:1987 first half includes revnues of new racetrack operation. Reuter 1-JUN-1987 13:57:16.33 lumber canada E f1959reute r f BC-canada-lumber-exports 06-01 0102 CANADA LUMBER EXPORTS MAY BECOME UNPROFITABLE TORONTO, June 1 – Canada’s softwood lumber will become unprofitable for some forest product producers if prices decline to about 175 U.S. dlrs per thousand board feet of two by four inch lumber from current levels of about 195 U.S. dlrs, Canadian Forest Industry Council chairman Adam Zimmerman told reporters. Zimmerman reiterated profitability has been hurt by a move by Canadian negotiators to impose last January a 15 pct export tax on softwood lumber shipped to the U.S. in exchange for a U.S. lumbermen’s lobby dropping its request for a countervail duty. “I think that there has been a falling off in the market, so I think there is a moderate slow down in the price now,” Zimmerman said at a media briefing. Zimmerman said the adverse impact from lower U.S. lumber product prices would be felt by lumber mills in eastern Canada first, migrating westward. “The country has swallowed a time bomb and it will go off when times get tough,” Zimmerman said. He also said the federal government should maintain the existing 15 pct export tax and not allow provinces to offset the tax with increased provincial fees for cutting lumber. Reuter 1-JUN-1987 13:57:30.03 acq usa F f1961reute d f BC--M 06-01 0069 MAKING ACQUISITION NEW ROCHELLE, N.Y., June 1 – Semicon Tools Inc said it has signed a letter of intent to acquire a majority interest in privately held East Coast Sales, a distributor and fabricator of technical ceramic products and disposable clean room materials and supplies. Terms were not disclosed. It said it expects to acquisition to result in a substantial sales increase. Reuter 1-JUN-1987 13:57:48.33 acq usacanada F E f1963reute r f BC-SAFETY-KLEEN--COM 06-01 0065 SAFETY-KLEEN COMPLETES ACQUISITION ELGIN, ILL., June 1 – Safety-Kleen Corp said it completed the acquisition of an 80 pct interest in BresLube Enterprises, for about 12 mln dlrs in stock and cash. BresLube, based in Toronto, collects used lubricating oils from auto garages, car dealers and other businesses, and re-refines it for resale. Its annual revenues are about 18 mln dlrs. Reuter 1-JUN-1987 13:57:53.31 usa F f1964reute d f BC-GENCORP--STARTS-B 06-01 0044 GENCORP STARTS BUILDING NEW PLANT AKRON, Ohio, June 1 – GenCorp said it has started construction on a new 50 mln dlr 260,000 square foot plant for the reinforced plastics division of its DiversiTech General unit. It said completion is expected in mid-1988. Reuter 1-JUN-1987 13:58:24.31 usa F f1965reute u f BC-NMS--TO-DEVELOP 06-01 0079 NMS TO DEVELOP HOME AIDS TEST KIT NEWPORT BEACH, Calif., June 1 – NMS Pharmaceuticals Inc said it has begun developing a home test kit for detecting an antibody to the AIDS virus. The company said its Animial Biotech Corp subdiary, which will develop the test, recently completed development of a simlar technology for a home test kit for feline leukemia virus in cats that exhibits similar properties to the AIDS virus, HIV, or human immunodeficiency virus. NMS is the first firm to annouce the development of a home test kit for AIDS. The company said it should have a working model ready in the first quarter of 1988. Abbott Laboratories , based in Chicago, is the worldwide leader in the 60 mln dlrs AIDS test market with about a 50 pct share. Abbott also recently applied to the Food and Drug Administration to market a new test that will be ablet to detect early infection with the AIDS virus and help monitor the progress of therapy. NMS said its home AIDS test would use proprietary technologies and advanced genetic engineering techniques for the home test kitS. NMS said the test would use a drop of blood from a finger prick to detect the AIDS virus. The company stressed that there is no assurance it will succeed in develop ths test, nor in obtaining government approval for marketing such as test. Reuter 1-JUN-1987 13:59:23.07 usa F f1966reute d f BC-FORD--IN-VENTURE-T 06-01 0103 FORD IN VENTURE TO MAKE UNITS FOR MAZDA DEARBORN, Mich., June 1 – Ford Motor Co said it agreed with Mazda Motor Corp and Matsushita Electric Industrial Co Ltd to form a company that would make heating and cooling units in Japan for Mazda cars. Equity in the new company will be shared equally, Ford said. Each of the three participants will be represented on the board of directors of the new company. Ford said a manufacturing plant will be located in Higashi-Hiroshima City near Mazda’s headquarters. Completion of the factory, and production start-up, is scheduled for the fall of 1988. Reuter 1-JUN-1987 14:00:01.77 usa F f1967reute r f BC-ZENITH--IN-VOLUN 06-01 0109 ZENITH IN VOLUNTARY RECALL RAMSEY, N.J., June 1 – Zenith Laboratoreis Inc said it was voluntarily recalling 20 lots of Digoxin, a cardiovascular drug, because about seven of the lots made betweeen October 1984 and Janauary 1986 failed to meet certain requirements. The lot number of Digoxin, in 0.25 mg tablets, are 112 through 131. Zenith said the recalled lots were not likely to cause serious ill health effects, but said the recall is being done because some of the lots failed to meet dissolutation requirements upon retesting. Zenith said the other lots are not subject to the recall. It said the recall will cost about 50,000 dlrs. Reuter 1-JUN-1987 14:00:56.90 usafrance F f1968reute r f BC-GE-,-ALSTHOM-, ALSTHOM DEVELOPING TURBINE ANAHEIM, Calif., June 1- General Electric Co said it and Alsthom of France are developing a 200 megawatt gas turbine that will be the most powerful combustion turbine in the world, the MS9001F. The company said when used in a combined cycle application, the power plant efficiency will exceed 50 pct. The company said it will offer the turbine exclusively for 50 hertz electrical system markets. Most of the world, except the U.S. and several other countries, use the 50 hertz system, it said. It said Alsthom, its licensee in France, is codeveloper and comanufacturer of the first unit. GE said the first of the turbines will be installed for Electricite de France’s grid. Reuter 1-JUN-1987 14:01:31.21 acq usa F f1972reute u f BC-HICKS/HAAS-GROUP-HAS 06-01 0091 HICKS/HAAS GROUP HAS SPECTRADYNE FUNDS DALLAS, June 1 – SPI Holding Inc, a group consisting of Hicks and Haas and Acadia Partners LP, said it has received commitments for the senior bank financing needed to complete its proposed acquisition of Spectradyne Inc for 46 dlrs a share in cash or securities, or a total of about 452 mln dlrs. The transaction was conditioned on the arrangement fo financing by today. It said it has also executed multi-year employment and non-competition agreements with five Spectrayne senior managers. Reuter 1-JUN-1987 14:02:24.52 usa F f1976reute r f BC-ROONEY-QUITS-AS-SERVI 06-01 0102 ROONEY QUITS AS SERVICE RESOURCES UNIT HEAD NEW YORK, June 1 – Service Resources Corp said Patrick J. Rooney has resigned as chairman and chief executive officer of its Chas. P. Young subsidiary to devote more time to his posts as chairman and chief executive of the parent company. Young has recently offered to acquire Sorg Inc for 23 dlrs a share and take the combined company public. The company said James P. Alexis, president of Young’s Chicago operation, will succeed Rooney as chairman and chief executive of Young, with Jack R. Hubbs remaining president and chief operating officer. Reuter 1-JUN-1987 14:03:09.09 uk F f1981reute r f BC-FORD-TO-INVEST-23-MLN 06-01 0082 FORD TO INVEST 23 MLN STG IN U.K. ENGINE PLANT LONDON, June 1 – Ford Motor Co is to invest 23 mln stg in high technology equipment at its Bridgend engine plant in South Wales, the Press Association said. The move includes a new computerised engine test facility which the company says will make the factory one of the most efficient of its kind in the world. Bridgend currently supplies Escort, Orion and some Fiesta engines to Ford plants in Britain, West Germany and Spain. Reuter 1-JUN-1987 14:03:43.45 usa F f1983reute r f BC-U.S.-HEALTHCARE- IN BLUE CROSS VENTURE BLUE BELL, Pa., June 1 – U.S. Healthcare Inc said it has signed an agreement with Blue Cross and Blue Shield of Missouri to jointly develop and operate a new health maintenance organization for the St. Louis area. The company said Blue Cross will wholly own HMO Missouri, which U.S. Healthcare will manage and market. It said it hopes to start offering the HMO by January. Reuter 1-JUN-1987 14:03:46.65 alum F f1984reute b f BC-******ALCO-RAISING-PR 06-01 0011 ******ALCOA RAISING PRICES OF ALUMINUM BEVERAGE CAN STOCK EIGHT PCT Blah blah blah. 1-JUN-1987 14:04:15.25 usa F f1988reute d f BC-INVESTITECH- 06-01 0054 INVESTITECH GETS MORTGAGE LOAN FORT LAUDERDALE, Fla., June 1 – Investitech Ltd said it has closed on a 500,000 dlr long-term mortgage loan in connection with its previous purchase of a Mulberry, Fla., plant, replacing a short-term borrowing. The company said full production at the plant will start immediately. Reuter 1-JUN-1987 14:06:52.55 acq usa F f1993reute u f BC-COMPUTER-ASSOC.- 06-01 0095 COMPUTER ASSOC. BOLSTERS HAND AGAINST IBM BY LAWRENCE EDELMAN, Reuters NEW YORK, June 1 – Computer Associates International Inc’s 800 mln dlr merger with Uccel Corp will eliminate its strongest rival, but the company still faces stiff competition from International Business Machines Corp , Wall Street analysts said. “IBM is still the ruling force in mainframe systems software,” said Scott Smith, an analyst with Donaldson Lufkin and Jenrette. “But the combination of the two companies will clearly present a much stronger front,” he said. Besides IBM, “Computer Associates will be far and away the most powerful company in the field,” added E.F. Hutton analyst Terence Quinn. That field is a segment of the market known as system utilities, or software packages that boost the productivity of a company’s data processing facilities by increasing the speed, power and efficiency of large mainframe computers. The merger of Uccel and Computer Associates combines the two biggest systems utilities suppliers other than IBM. Analysts said the remaining players are mostly small firms that will find the competition much harder than in the past. For Computer Associates, the merger with Uccel caps a six-year acquisition campaign that has vaulted the Garden City, N.Y.-based company to the top of the software industry. When the deal is completed sometime in August, the company’s revenues will exceed 450 mln dlrs, pushing it past Microsoft Corp as the world’s largest independent software vendor. Computer Associates founder and chairman Charles B. Wang took the company public in 1981, and since then he has bought 15 companies and boosted annual sales from 18.5 mln to 309.3 mln dlrs for the year ended March 31. Liemandt took charge of Wyly, sold off its non-computer businesses and decided that it would focus solely on mainframe computer software. In 1984, the company was renamed Uccel Corp. Liemandt, who said he will leave the company after the merger is completed, also turned to acquisitions for growth. On the last day of 1986, Uccel completed the buyouts of six companies for a total of about 60 mln dlrs. For 1986, it earned 17.0 mln dlrs, or 1.01 dlrs a share, on sales of 141.5 mln dlrs. The agreement took industry analysts by surprise, largely because the companies had been such bitter rivals. Also, Dallas-based Uccel had engineered a strong comeback from the dark days of 1982, when, as Wyly Corp, it lost 7.7 mln dlrs, or 56 cts a share. At that time, Wyly owned a potpourri of 13 different businesses, only three of which were involved in computer software. In 1983, Walter Haefner, a Swiss financier and a major Wyly investor, lured Gregory J. Liemandt away from his job as chairman of General Electric Co’s computer services unit. Computer Associates’ Wang and Uccel’s Liemandt said at a news conference that the merger would give computer users a single source for a wide range of software products. In addition to system utilities, Computer Associates also sell products for microcomputers, while Uccel has made inroads in the applications software market, where analysts said it has been successful with accounting and banking systems. Wang said Computer Associates would continue to support and enhance both companies’ product lines, but noted that the company will eventually weed out duplicate offerings. He said about 20 pct of the companies’ products overlap. Analysts said the merger would dilute the holdings of current Computer Associates shareholders by about 10 pct. But they joined Wang in forecasting that the deal will not dilute Computer Associates’ earnings for the current fiscal year. Quinn of E.F. Hutton said Wang has a proven track record of completing acquisitions without earnings dilution. Therefore, he said he would not change his 1988 earnings estimate of 1.05 dlrs a share. Wang said he would look closely at the combined operations of the two companies and cut duplication in sales, marketing and research and development. Analysts said Computer Associates paid a premium for Uccel. Based on Friday’s closing price, the company will swap 47.50 dlrs worth of its stock for each Uccel share, which is nearly 33 times Uccel’s 1987 estimated earnings of 1.45 dlrs a share. Stephen T. McClellan of Merrill Lynch Research said most software companies are currently valued at about 20 times per-share earnings. But the analyst said Uccel was worth the premium because of its earnings potential and customer base. Wang said Haefner, the Swiss investor, would hold about 25 pct of Computer Associates stock after the merger. He currently owns 58 pct of Uccel. The executive said the merger would not alter his target of maintaining sales and earnings growth of 30 pct to 35 pct. In addition, he said he expects no problems in having the deal cleared by the antitrust division of the U.S. Justice Department. Uccel’s Liemandt declined to say what he will do after the merger, but he did not rule out working together with Wang. Reuter 1-JUN-1987 14:14:19.18 acq ukusa F f2013reute b f BC-MAXWELL-WOULD-NOT-REN 06-01 0092 MAXWELL WOULD NOT RENEW BID IF SUIT FAILS London, June 1 – British press magnate Robert Maxwell said his British Printing and Communication Corp Plc would not renew its bid for Harcourt Brace Jovanovich Inc if the lawsuit filed against Harcourt in New York today fails. Speaking at a press conference, Maxwell denied market rumors that British Printing had approached British institutions to arrange a rights issue with a view to relaunching its bid for the U.S. publishing concern. “I don’t believe in chasing mirages,” maxwell said. British Printing filed suit in U.S. District Court in Manhattan to block what Maxwell called a fraudulent recapitalization announced by Harcourt last week. Harcourt, in response to a hostile two billion dlr takeover proposal from Maxwell, planned a recapitalization that would pay shareholders 40 dlrs per share. Under the plan, it also said 40 pct of its shares will be controlled by its employees, management, and its financial adviser, First Boston Corp . Reuter 1-JUN-1987 14:14:55.58 alum M f2018reute b f BC-******ALCO-RAISING-PR 06-01 0011 ******ALCOA RAISING PRICES OF ALUMINUM BEVERAGE CAN STOCK EIGHT PCT Blah blah blah. 1-JUN-1987 14:17:04.97 earn usa F f2027reute u f BC--4TH 06-01 0063 4TH QTR MARCH 28 NET ELMWOOD PARK, N.J., June 1 – Net 7,237,000 vs 5,938,000 Sales 630.8 mln vs 601.8 mln Year Net 34.1 mln vs 20.5 mln Sales 2.75 billion vs 2.61 billion NOTE: Twelve and 52-week periods. Generale Occidentale SA subsidiary. Prior year net both periods includes 7,580,000 dlr pretax charge for store closings. Year net includes pension gain 3,455,000 dlrs vs charge 5,502,000 dlrs due to change in pension accounting. Income tax rate for year 45.9 pct vs 34.1 pct due to abolition of investment tax credits. Elimination of investment tax credits approximately offset gain from change in pension accounting, company said. Reuter 1-JUN-1987 14:22:28.05 canada E F f2046reute r f BC-BELL-CANADA--EXT 06-01 0080 BELL CANADA EXTENDS STOCK BUYBACK MONTREAL, June 1 – Bell Canada Enterprises Inc said it extended to June 30 from June 4 a short-term voluntary sale program for shareholders owning 10 or fewer Bell Canada common shares. The plan allows such shareholders of record at April 21 to sell their shares at market price without incurring brokerage commissions or other charges. Bell Canada was quoted at 42 dlrs, up 1/4, in afternoon trading on the Toronto Stock Exchange. Reuter 1-JUN-1987 14:22:43.92 usa F f2048reute d f BC-SYNERCOM--NAM 06-01 0042 SYNERCOM NAMES NEW PRESIDENT HOUSTON, June 1 – Synercom Technology Inc said it has named Robert Forsyth president. The company said Forsyth is taking over the position from Thomas Moore, who remains chairman and chief executive officer. Reuter 1-JUN-1987 14:23:43.75 acq usa F f2049reute r f BC-U.S.-VIDEO-, 06-01 0071 U.S. VIDEO , FIRST NATIONAL IN MERGER NEW YORK, June 1 – U.S. Video Vending Corp said it completed acquiring First National Telecommunications INc from First National Entertainment Corp for about 10 mln, or a controlling interest of U.S. Video Vending shares. Pursuant to the transaction, Harvey Seslowsky and William Hodes resigned from U.S. Video’s board and were replaced by four members of First National. Reuter 1-JUN-1987 14:24:37.28 cocoa uk icco C T f2051reute u f BC-SOME-COCOA-ORIGINS-DI 06-01 0108 COCOA ORIGINS DISMAYED BY BUFFER STOCK ACTION By Peter Read, Reuters LONDON, June 1 – Traders recently returned from West Africa say some producers there are dismayed by the ineffective action so far by the International Cocoa Organization (ICCO) buffer stock manager on buffer stock purchases. One trader said some West African producers are annoyed the Buffer Stock manager is not playing his part as required by the International Cocoa Pact to stabilise prices from current lows. So far, only 21,000 tonnes of second hand cocoa have been taken up for buffer stock purposes and this, traders noted, only on an intermittent basis. They noted the purchases, of 8,000 tonnes in the first week he bought and 13,000 in the second, are well short of the limitations of no more than 5,000 tonnes in one day and 20,000 in one week which the cocoa agreement places on him. The traders recently returned from West Africa say producers there are unhappy about the impact on cocoa prices so far, noting producing countries are part of the international cocoa pact and deserve the same treatment as consumers. London traders say terminal market prices would have to gain around 300 stg a tonne to take the ICCO 10-day average indicator to its 1,935 sdr per tonne midway point (or reference price). However, little progress has been made in that direction, and the 10-day average is still well below the 1,600 sdr lower intervention level at 1,562.87 from 1,569.46 previously. The buffer stock manager may announce today he will be making purchases tomorrow, although under the rules of the agreement such action is not automatic, traders said. Complaints about the inaction of the buffer stock manager are not confined to West African producers, they observed. A Reuter report from Rotterdam quoted industry sources there saying Dutch cocoa processors also are unhappy with the intermittent buffer stock buying activities. In London, traders expressed surprise that no more than 21,000 tonnes cocoa has been bought so far against total potential purchases under the new agreement of 150,000 tonnes. Carryover holdings from the previous International Cocoa Agreement in the stock total 100,000 tonnes. Terminal prices today rose by up to 10 stg a tonne from Friday’s close, basis July at its high of 1,271. It seems that when the buffer stock manager is absent from the market, prices go up, while when he declares his intention to buy, quite often the reverse applies, traders said. Reuter 1-JUN-1987 14:25:22.01 canada E F A f2054reute r f BC-CANADA-CORPORATE-DEBT 06-01 0110 CANADA CORPORATE DEBT LOWEST IN FIVE YEARS TORONTO, June 1 – Canada’s corporate debt burden is at its lowest point in five years but still exceeds pre-1981 recession levels, said a study by Canadian Imperial Bank of Commerce . The bank said the debt-equity ratio for all Canadian companies, excluding financial corporations, now averages 1.50, down from 1.70 in 1982, but higher than 1.47 in 1980. “Five years of uninterrupted economic growth in Canada and the strength of the Canadian bond and stock markets, despite recent corrections, have led to a marked improvement in the financial health of most Canadian corporations,” the bank said. The bank said that manufacturing, construction, transportation, utility and service industries had improved their debt-equity ratios to 1977 levels. Mining, oil and gas companies were not performing as well due to low commodity prices, the bank added. Canadian corporate financial ratios are also stronger than those in the U.S., the bank said. It said the 1981-82 recession led some Canadian companies to downsize and use resulting savings to cut floating rate debt, and others to shift to equity from debt financing. Reuter 1-JUN-1987 14:26:07.09 usa F f2060reute d f BC-AMERICAN-TRAVELLERS-< 06-01 0048 AMERICAN TRAVELLERS REPORTS PRODUCTION WARRINGTON, Pa, June 1 – American Travellers Corp’s American Travellers Life Insurance Co unit said it wrote more than 1.1 mln dlrs of new business in May Last year, the unit wrote 553,350 dlrs of new business for the month of May. Reuter 1-JUN-1987 14:28:10.91 acq usa F f2067reute r f BC-RAPID-AMERICAN-COMPLE 06-01 0058 RAPID-AMERICAN COMPLETES K MART STORE BUY NEW YORK, June 1 – Privately-held Rapid-American Corp said it has completed the previously-announced acquisition of 66 Kresge and Jupiter stores from K Mart Corp. The company said it plans to operate 57 of the stores as McCrory Five and 10 variety stores and close the others by the end of July. Reuter 1-JUN-1987 14:28:26.71 usa F f2068reute u f BC-ZENITH-ELECTRONICS- INTRODUCES COMPUTER GLENVIEW, Ill., June 1 – Zenith Electronics Corp said it introduced a one-piece computer with 512 kilobytes of memory priced starting at 999 dlrs. Zenith said the new computer, called the “eaZy pc”, is compatible with the PC/XT system and uses 3-1/2-inch disk drives. The computer, Zenith’s lowest priced unit, uses an Intel 8088-compatible microprocessor. Its memory will be expandable to 640K through two options expected to be available in August. The system uses an MS-DOS operating system developed by Zenith and Microsoft Corp . Reuter 1-JUN-1987 14:28:31.12 earn usa F f2069reute r f BC-HUGHES-SUPPLY-INC- 1ST QTR APRIL 30 NET ORLANDO, Fla., June 1 – Shr 58 cts vs 53 cts Shr diluted 54 cts vs 53 cts Net 1,957,745 vs 1,594,009 Sales 95.8 mln vs 87.4 mln NOTE: Average shares up 11.7 pct on primary basis. Reuter 1-JUN-1987 14:28:42.83 usahong-kongsouth-koreataiwansingapore F f2070reute r f BC-EXPEDITERS-INTERNATIO 06-01 0096 EXPEDITERS INTERNATIONAL SEES GOOD YEAR NEW YORK, June 1 – Expediters International of Washington Inc president John Kaiser told securities analysts business in the current quarter is good and he is looking for good results for the year. Kaiser, however, declined to make specific earnings projections. In 1986, the company reported earnings of 4.1 mln dlrs, or 73 cts a share, on sales 108.8 mln dlrs. “The second quarter looks good and it looks like we’re going to have a good year,” he said, citing strength in imports and exports in the Pacific Rim. Kaiser also said a pickup in electronics and computer business would help this year’s results. The company is trying to get a license to operate directly in Korea before next year’s Olympics, he said. It currently works through an agent there. He said four countries in the Pacific – Hong Kong, Korea, Taiwan and Singapore, where the company does much if its business – should have economic growth of more than 10 pct over the next two to four years. “The Pacific Rim will still be our strongest market,” he said. Reuter 1-JUN-1987 14:28:57.78 goldsilvercopperalum usa comex C M f2071reute u f BC-/LITTLE-REACTION-TO-R 06-01 0139 LITTLE REACTION TO REMOVAL COMEX DAILY LIMITS New York, June 1 – The elimination of limits on daily price fluctuations for metals futures contracts traded on the Commodity Exchange, COMEX, appears to be having little effect on the market, analysts said. “There is nothing apparent from the change,” said William O’Neill, director of futures research at Elders Futures Inc. “The market has not approached the old price limits and trading is relative quiet, in narrow ranges,” he said. On May 5, COMEX eliminated price limits on the two contracts following each spot delivery in gold, silver, copper and aluminum futures after a review of its clearing operations, which were severely tested by a volatile market in silver futures at the end of April. COMEX announced Friday the lifting of all daily limits, effective today. Gold futures, which previously had a limit of 25 dlrs per ounce in most back months, were about 7.00 dlrs weaker in the nearby contracts amid thin volume conditions, traders said. Silver futures, previously limited at 50 cents in most back months, were trading about 30-40 cts weaker in the nearby contracts amid quiet trading today. During the last week of April, silver futures often traded at the daily allowable limit amid concerns about inflation, the dollar, and other factors. Traders rushed into the spot, or unlimited, contract to offset those moves, analysts said. As a result, O’Neill said, there was much confusion, many unmatched trades, and large losses for some traders. The COMEX fined four large firms a total of 100,000 dlrs for failure to resolve unmatched trades in a timely manner. Paul Cain, a vice president at Shearson Lehman Brothers, said the elimination of price limits will cut back on panic buying or selling and contribute to more orderly markets. O’Neill added that the elimination of daily limits would add caution to trading. “This is a more realistic approach because the metals market is a 24 hours market and prices can move without limit,” O’Neill said. Reuter 1-JUN-1987 14:29:25.72 usa F f2073reute r f BC--SEES 06-01 0051 SEES HIGHER YEAR SPENDING ELMWOOD PARK, N.J., June 1 – Grand Union Co, a subsidiary of Generale Occidentale SA of France, said it plans capital spending of 111 mln dlrs this year mostly for new stores and expansions of existing units, up from 76 mln dlrs for the year ended March 28, 1987. Reuter 1-JUN-1987 14:29:40.10 acq usa F f2074reute r f BC-TOTAL-HEALTH- 06-01 0101 TOTAL HEALTH TO MAKE ACQUISITION GREAT NECK, N.Y., June 1 – Total Health Systems Inc said it has agreed to acquire CoMED Inc of Denville, N.J., a health maintenance organization with over 63,000 subscribers, for an undisclosed amount of cash, the assumption of liabilities and the provision of up to 10 mln dlrs in equity and debt financing. The company said the acquisition is subject to regulatory approvals. It said CoMED had 1986 revenues of 30.0 mln dlrs and earnings of 650,383 dlrs and had revenues for the first four months of 1987 of 13.6 mln dlrs, up 60 pct from a year before. Reuter 1-JUN-1987 14:29:44.26 usa F f2075reute r f BC-MEDITRUST--R 06-01 0024 MEDITRUST RAISES QUARTERLY PAYOUT WELLESLEY, Mass., June 1 – Qtly div 44 cts vs 39 cts prior Pay Aug 14 Record July 31 Reuter 1-JUN-1987 14:30:05.21 usa F f2078reute d f BC-ALLTEL--GETS-PERM 06-01 0055 ALLTEL GETS PERMISSION FOR LICENSE TRANSFER HUDSON, Ohio, June 1 – ALLTEL Corp said it has received permission from the Federal Communications Commission for the transfer of its Syracuse/Binghamton/Cortland, N.Y., radio paging licenses to Mobile Communications Corp of America and the transfer takes effect today. Reuter 1-JUN-1987 14:30:11.67 acq usa F f2079reute d f BC-UNITED-ASSET--CO 06-01 0057 UNITED ASSET COMPLETES ACQUISITION PROVIDENCE, June 1 – United Asset Management corp said it has completed the acquisition of Rice, Hall, James and Associates of San Diego for undisclosed terms. It said Rice Hall manages investments for institutions and individuals and has about 690 mln dlrs in assets under management currently. Reuter 1-JUN-1987 14:30:17.68 usa F f2080reute d f BC-KMS-INDUSTRIES-INC- GETS CONTRACT ANN ARBOR, Mich., June 1 – KMS Industries Inc said its Covalent Technology Corp subsidiary won a one-year 60,000 dlr contract for develpoing a rapid and simple method for detecting heaptitis B antigen and diarrheal disease toxins. It said the award was from the Program for Appropriate Technology in Health, in collaboration with the United States Agency for International Development. Reuter 1-JUN-1987 14:30:52.51 usauk F f2082reute u f BC-AIRLINE-ANALYSTS-STUD 06-01 0108 AIRLINE ANALYSTS STUDY BRITISH AIRWAYS By Philip Barbara, Reuters CHICAGO, June 1 – Since British Airways was sold to the public by the British government, airline analysts have begun covering the big carrier and giving it good reviews. “Analysts are picking up British Airways because it’s a major airline, and because they have fewer companies to work with after all the mergers,” said Merrill Lynch analyst Edmund Greenslet. “Two years ago there were enough U.S. carriers, but now more analysts are adding the international airlines.” Merrill Lynch, for instance, will be covering it from its international offices, he said. British Airways was sold to the public by the Conservative government in February. It has a fleet of 167 jetliners, making it the largest in Europe. A relatively small portion of revenue and traffic comes from intra-U.K. operations, and its predominantly long-haul route network spans the globe. Julius Maldutis at Salomon Brothers said he likes British Airways because it can quickly redeploy jets to strong markets or away from weak ones, as it did last year in response to the severe downturn in North Atlantic traffic after the Chernobyl nuclear disaster and terrorist actions. “Because of its diverse network, it has the ability to hedge or mitigate adverse developments in one particular area,” Maldutis said. He said British Airways should outperform the rest of the stock market. Salomon was an underwriter for the company’s public offering in February. About 6.3 mln British Airways’ American depositary receipts are traded on the NYSE, and 2.8 mln ADRs on the Toronto exchange. Each ADR equals 10 ordinary shares. Louis Marckesano at Janney Montgomery Scott said British Airways near-term outlook is good. “We’re looking for good traffic growth and improved revenues,” he said. “British Airways should be riding a good wave,” he said. “Its fiscal year began April one, so when you think of all the troubles it experienced in the first half of last year, especially in the North Atlantic market, you know all camparisons should be nice.” At March 31 the carrier had total debt of 279 mln stg for a debt-to-equity ratio of 33 pct, which is very good for an airline, analysts said. “Its balance sheet is very conservative – perhaps too conservative for an airline – but that means it can borrow to expand its fleet,” Marckesano said. British Airways has been a leading force of airline liberalization in Europe, which is being gradually implemented to avoid the problems of U.S. airline deregulation, which brought years of unstable fares and losses. Analysts agree a phased-in deregulation will greatly benefit British Airways over the long run because it is the largest European carrier. Analysts caution that British Airways faces increasing competition for travelers to Europe from U.S. carriers as airline consolidation here expands route networks. In 1983, for instance, about 69 pct of U.K.-bound passengers transferred to European carriers after arriving at U.S. gateway airports onboard U.S. carriers. But U.S. carriers are retaining more of their passengers, and this year about 30 pct of U.K.-bound travelers are expected to switch to a European carrier to complete the trip, according to British Airways’ chief executive officer, Colin Marshall. “British Airways had a greater shot at picking up traffic when it was funneled to New York,” said Marckesano “Now, traffic is being captured earlier by U.S. carriers as it leaves Atlanta, Dallas and other cities,” said Marckesano. He also said that British Airways’ first-half results might mislead an investor into gauging full-year results because its fiscal year begins April one. “Profits build in the first half. But if an investor just doubles that figure, he’ll be making a big mistake,” he said. Reuter 1-JUN-1987 14:32:03.53 soybeangrainwheatcorn C G f2089reute f f BC-export-inspections 06-01 0015 ******U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS, SOYBEANS 7,209, WHEAT 15,187 CORN 25,347 Blah blah blah. 1-JUN-1987 14:33:33.18 acq usa F f2097reute u f BC-COMPUTERLAND-TO-BE-AC 06-01 0079 COMPUTERLAND TO BE ACQUIRED BY INVESTOR GROUP OAKLAND, Calif., June 1 – Computerland Corp said an investor group led by the financial services firm E.M. Warburg Pincus and Co Inc has agreed to acquire Computerland’s business. Computerland, a privately-held company said to be the world’s largest retailer of personal computers, declined to provide details of the arrangement. But the company said it expects to close the acquisition over the next 60 to 90 days. In announcing the transaction, Computerland said the acquisition will provide it with resources and support to maintain and expand its leadership position in the computer retail industry. Computerland also said its network retail sales in 1986 totalled 1.45 billion dlrs. Reuter 1-JUN-1987 14:37:33.36 usa F f2118reute r f BC-WATCHDOG-GROUP-SEEKS 06-01 0115 WATCHDOG GROUP SEEKS U.S. RECALL OF SCHOOLBUSES WASHINGTON, June 1 – The Center for Auto Safety, a private auto industry watchdog group, sought a government recall of 50,000 schoolbuses, charging that a defect in their manufacture causes the buses to split open in a crash. The center said it asked the National Highway Traffic Safety Administration (NHTSA) to recall all school buses built since 1977 by Thomas Built Buses of High Point, N.C.. “In the past seven years, 45 children were injured and six killed in crashes of Thomas schoolbuses where the panels of the buses split open at the joints,” Executive Director Clarence Ditlow wrote Transportation Secretary Elizabeth Dole. NHTSA is a part of the U.S. Department of Transportation. Ditlow said Thomas had failed eight body and three floor joint tests since 1977. “No Thomas schoolbus tested for joint strength since (a federal standard) was adopted in 1978 has ever passed,” he said. Officials of Thomas were unavailable for comment. NHTSA officials had no immediate comment on the recall petition. Reuter 1-JUN-1987 14:38:44.24 usa F f2121reute d f BC-ELECTROSPACE--GE 06-01 0065 ELECTROSPACE GETS DEFENSE CONTRACT RICHARDSON, Texas, June 1 – Electrospace Systems Inc said it has received the first 1,623,000 dlr increment of a possible five mln dlr contract award from the U.S. Space and Naval Warfare Systems Command. It said the contract covers production and systems integration of seven AN/WSC-6 SHF SATCOM systems for use on combatant and survey ships. Reuter 1-JUN-1987 14:39:13.46 usa F f2123reute w f BC-SOONER-DEFENSE- GETS CONTRACT LAKELAND, Fla., June 1 – Sooner Defense of Florida Inc said it won a 4.2 mln dlr contract from the U.S. Army Armament to build electronic proximity fuzes used in Navy five-inch gun systems. Reuter 1-JUN-1987 14:39:30.94 acq F f2124reute b f BC-***BILZERIAN-SAYS-IF 06-01 0014 ***BILZERIAN SAYS IF PAY N’PAK SIGNS MERGER ACCORD HE WILL TENDER FOR 7.5 MLN SHARES Blah blah blah. 1-JUN-1987 14:39:41.22 acq canada E F f2125reute d f BC-PIOSEC--ACQUI 06-01 0053 PIOSEC ACQUIRES SEMICONDUCTOR STAKE VANCOUVER, B.C., May 31 – Piosec Technology Ltd said it exchanged 4.5 mln common shares for 21 pct of privately owned of Santa Clara, Calif. Followin the acquisition, a Piosec spokesman said, the company has 6.5 mln shares outstanding. Reuter 1-JUN-1987 14:39:58.65 usa F f2127reute d f BC-AMERICAN-CREDIT-CARD 06-01 0057 AMERICAN CREDIT CARD TO MAKE PURCHASE FORT LAUDERDALE, Fla., June 1 – American Credit Card Telephone Co said it has completed arrangements to purchase 500,000 of its common shares and 500,000 of its warrants as well as all payphone technology, software and rights from Digvitech Inc’s Digitech Communications Inc affiliate. Reuter 1-JUN-1987 14:41:56.05 france RM f2132reute u f BC-FRENCH-TREASURY-DETAI 06-01 0087 FRENCH TREASURY DETAILS PLANNED TAP ISSUE PARIS, June 1 – The French Treasury will issue between eight and 10 billion francs worth of tap stock, depending on market conditions, at its next monthly tender on Thursday, the French bond issuing committee said. The planned issue will be of two fixed-rate tranches of the 8.50 pct May 1994 and the 8.50 pct December 2012 stock and one tranche of the 12-year variable rate 1999 stock. At its last tender on May 7, the Bank of France sold 8.2 billion francs of tap stock. Reuter 1-JUN-1987 14:46:10.74 tin ukjapanmalaysiabrazilchina itc lme C M f2138reute d f BC-/TIN-TRADERS’-RESPONS 06-01 0116 TIN TRADERS’ RESPONSE MUTED TO KL FUTURES MARKET LONDON, June 1 – European free market tin traders made a somewhat muted response to plans for a Kuala Lumpur dollar-based tin futures market due to be launched in October. Traders said the new market would probably be a useful trading medium for Japan and other South East Asian tin interests although European traders generally appear to be reasonably satisfied with the current “free market” system which has been operating since London Metal Exchange, LME, tin trading ceased in October 1985. Dealers here will also want to see how acceptable foreign metal will be on the new market and what sort of demand develops for forward deliveries. There is also a view among European traders that, while the proposed Kuala Lumpur tin futures market would provide another useful reference point, a market inaugurated by the Malaysian government — in the past viewed as a major player at times by the trade — would make participants uncomfortable. Some traders expressed a preference for a resumption of trading on the London Metal Exchange, but they added that while there has been some behind the scenes discussion on the subject a definite move is unlikely until outstanding High Court litigation actions have been resolved. Spot tin prices on the European free market are currently around 4,200 stg per tonne for high grade metal in warehouse Rotterdam. Over the past 18 months the price moved to a ten year low of 3,400 stg in March 1986 and rebounded to as high as 4,680 stg in December 1986. This compares with 8,140 stg last paid when LME trading ceased in October 1985 and a record high tin price of 10,350 stg traded for Cash Standard Grade metal in June of that year. LME warehouse stocks are now near a two-year low at 28,065 tonnes, having fallen steadily from a record high of 72,485 tonnes reached in February 1986. Traders said the free market turned bullish during late last year based on producer forecasts of a supply/demand deficit of some 28,000/29,000 tonnes. Analysts were predicting prices of up to 5,000 stg per tonne during 1987. However, the trend was reversed following a strong upswing in sterling versus the dollar and values fell back briefly to 4,100 stg last month after approaching 4,700 stg in December. The decline accelerated as producers who had sold very little metal at the higher levels became competitive sellers. There was also a lack of significant demand from major steel mills who made large purchases prior to the new year. Traders say the 15 ITC creditor banks’ original tin holdings of nearly 45,000 tonnes have now been almost halved, and the bulk of material still available is being held by Malaysian and Japanese firms which are reluctant to depress the market with unwanted metal. Some 80,000 tonnes were held by banks and brokers after the International Tin Council’s, ITC, buffer stock manager halted support operations on the LME on behalf of the 22 members nations of the International Tin Agreement. The overhang of metal was reduced further by broker Shearson Lehman Brothers, which earlier this year reported having sold its ITC-related holdings and halved its overall tin position. Analysts see no immediate sign of a rally in European tin prices and movements are still expected to be largely related to currency fluctuations, unless significant consumer demand emerges for the third quarter. The Association of Tin Producing Countries, ATPC, has made efforts since the collapse of the ITA to achieve higher world prices by attempting to bring all major producers under an export control umbrella, but to date Brazil and China, two major producers, remain unaffected by the ATPC argument and apparently are continuing to offer material at discounts to consumers in main European trading centres, dealers said. Reuter 1-JUN-1987 14:47:54.39 usa F f2145reute r f BC-LEISURE-CONCEPTS-, LORIMAR IN DEAL NEW YORK, June 1 – Leisure Concepts Inc said it has signed a definitive agreement to be licensing agent for all Lorimar-Telepictures Corp television and film properties, formalizing a preliminary agreement reached in January. It said undser the terms, Lorimar has received a five-year warrant to buy up to 250,000 Leisure Concepts shares at 6.25 dlrs each. Leisure Concepts now has about 3,100,000 shares outstanding. Reuter 1-JUN-1987 14:49:00.20 cocoa icco C T f2149reute f f BC-******ICCO-buffer-sto 06-01 0014 ******ICCO buffer stock manager to buy 5,000 tonnes cocoa Tuesday, June 2 – official Blah blah blah. 1-JUN-1987 14:50:18.24 usa F f2153reute r f BC-HAYES-MICROCOMPUTER-A 06-01 0102 HAYES MICROCOMPUTER ANNOUNCES NEW MODEMS NORCORSS, Ga., June 1 – said it has introduced five new V-series system products and a new generation communication software package, Smartcom III. Hayes said the new V-series includes the V-Series Smartmodem 9600, V-Series Smartmodem 9600B, V-Series Smartmodem 2400 and V-series Smartmodem 2400B. These products provide error control, adaptive data compression and automatic feature negotiation, Hayes said. Hayes also said it has established a network of dealers and distributors aurthorized to sell the new products. The company also said it has introduced a V-series Modem Enhancer and has reduced the estimated retail prices on its current modem product line. Its other new product, the Smartcom III, is a communications program for the International Business Machines Corp PC, Compaq Computer and compatible personal computers, the company said. Hayes said it has priced the Smartmodem 9600 at 1,299 dlrs, Smartmodem 9600B at 1,199 dlrs (1,299 dlrs with Smartcom III), V-Series Smartmodem 2400 at 899 dlrs and V-series Smartmodem 2400B at 849 dlrs (899 dlrs with Smartcom). In addition, Hayes said that following an introductory promotional price of 199 dlrs until September 30, the V-series modem enhancer will have an estimated retail price of 349 dlrs. Smartcom III will be priced at 249 dlrs, Hayes said, adding that all products will be available this month. Reuter 1-JUN-1987 14:51:19.91 usa F f2155reute d f BC-GULL--GETS-MCDON 06-01 0079 GULL GETS MCDONELL DOUGLAS CONTRACT SMITHTOWN, N.Y., June 1 – Gull Inc said it has received a contract initially worth about 1,500,000 dslrs to supply McDonnell Douglas Corp with the control system for an On-Board Inert Gas Generating System to be used in the new C-17A military transport cargo airport. It said under production options in the coutract, it could supply controllers for up to 210 aircraft, raising the value of the contract to over 25 mln dlrs. Reuter 1-JUN-1987 14:52:17.26 usacanada E F f2158reute d f BC-LODGISTIX--OP 06-01 0042 LODGISTIX OPENS OFFICE IN CANADA WICHITA, Kan., June 1 – Lodgistix Inc said it is expanding distribution in Canada of its automated property management systems for hotel and resorts with the opening of a new ssales office in Calgary, Alberta. Reuter 1-JUN-1987 14:59:13.88 usa F f2169reute r f BC-US-WEST--UNIT-WI 06-01 0074 US WEST UNIT WINS POINT-OF-SALE CONTRACT OMAHA, Neb., June 1 – US West Information Systems said it completed an agreement with the Australia and New Zealand Banking Group Ltd to provide a turnkey installation of hardware, software and support services for a nationwide point-of-sale network in Australia. Financial terms of the five-year agreement were not disclosed. US West Information Systems is a unit of US West Inc. Reuter 1-JUN-1987 14:59:23.27 acq usa F f2170reute r f BC-CO-OPERATIVE- 06-01 0067 CO-OPERATIVE COMPLETES ACQUISITION ACTON, Mass., June 1 – Co-operative Bancorp said it completed the acquisition of all the issued and outstanding stock of the Quincy Co-operative Bank . Under the agreement, Quincy stockholders will receive 30 dlrs cash for each share owned of the Quincy Co-operative Bank, for a total transaction of approximately 50 mln dlrs, Co-operative said. Reuter 1-JUN-1987 14:59:44.64 usa F f2173reute d f BC-EPSCO--GETS-R 06-01 0045 EPSCO GETS RAYTHEON CONTRACTS WESTWOOD, Mass., June 1 – EPSCO Inc said it has receiveed contracts worth 2,800,000 dlrs from Raytheon Co for high-powered microwave components and antenna feed subsystems for use on the Patriot air defense missile system. Reuter 1-JUN-1987 14:59:50.00 usa F f2174reute d f BC-NATIONAL-HEALTHCARE-< 06-01 0050 NATIONAL HEALTHCARE OPENS CENTER MURFREESBORO, Tenn., June 1 – National HealthCorp LP said it has opened a 120-bed nursing care and phsical therapy center in Pensacola, Fla., called Palm Gardens of Pensacola. It said it manages the center for owner Florida Convalescent Centers Inc. Reuter 1-JUN-1987 15:00:40.38 reagan V RM f2177reute f f BC-******REAGAN-TO-CALL 06-01 0013 ******REAGAN TO CALL FOR WEST GERMAN AND JAPANESE ECONOMIC GROWTH AT VENICE SUMMIT Blah blah blah. 1-JUN-1987 15:00:48.13 money-fx reagan V RM f2178reute f f BC-******REAGAN-SAYS-U.S 06-01 0012 ******REAGAN SAYS U.S., ALLIES MUST HONOR ACCORDS ON EXCHANGE RATE STABILITY Blah blah blah. 1-JUN-1987 15:01:50.78 acqpet-chem usa F f2186reute r f BC-MONSANTO--TO-ACQ 06-01 0074 MONSANTO TO ACQUIRE RHONE-POULENC ASSETS ST. LOUIS, June 1 – Monsanto Co said it is acquiring certain commerical assets of polyphenyl business. Terms of the transaction were not disclosed. Among the assets being acquired are its polyphenyl business worldwide, including biphenyl and the heat transfer fluid Gilotherm TH, together with associated manufacturing and application technology, Monsanto said. Reuter 1-JUN-1987 15:01:59.67 usa F f2187reute r f BC-PEPSICO--NEW-JER 06-01 0093 PEPSICO NEW JERSEY BOTTLING UNIT ON STRIKE PURCHASE, N.Y., June 1 – The New Jersey operations of Pepsico Inc’s Pepsicola Bottling Group in the New York metropolitan area have been struck by Teamsters Union Local 125, a Pepsico spokesman said. He said the company has hired temporary drivers to cover deliveries from the struck warehouses in West Caldwell, North Brunswick, Moonachie and South Carney. Also struck were the company’s manufacturing operations at Teeterboro and its food service operations at Hasbrouck Heights, the spokesman added. The Pepsico spokesman said the company’s contract with the union expirted at 2400 EDT yesterday. He said the company reached a tentative agreement with the union Friday after five weeks of negotiations which was rejected by the rank and file in a vote Saturday. Reuter 1-JUN-1987 15:02:18.90 usa F f2189reute r f BC-INTERNATIONAL-RESEARC 06-01 0103 INTERNATIONAL RESEARCH SEES HIGHER NET MATTAWAN, Mich., June 1 – International Research and Development Corp’s earnings per share in its second quarter should be higher than the three cts a share earned in the 1986 period, president Francis X. Wazeter told shareholders. He said share earnings in this year’s second period will be about the same as the six cts a share earned in the 1987 first period. Wazeter said earnings per share this year should be higher than the 15 cts a share made last year, and revenues from studies in progress will be higher than last year’s revenues of 16.1 mln dlrs. Reuter 1-JUN-1987 15:02:46.29 acq usa F f2192reute r f BC-INFO-DATA-TO-ACQUIRE 06-01 0073 INFO-DATA TO ACQUIRE USA OUTDOOR ADVERTISING DEERFIELD BEACH, Fla., June 1 – said it will acquire of Jacksonville, Fla., in exchange for stock. USA Outdoor Advertising was acquired for 62.4 pct of the outstanding shares of Info-Data Inc, the company said. Info-Data said it plans to change its name to USA Outdoor Advertising Inc to reflect the change in the company’s operations. Reuter 1-JUN-1987 15:03:11.85 usawest-germanyjapan reagan V RM f2194reute u f BC-/REAGAN-CALLS-FOR-W. 06-01 0100 REAGAN CALLS FOR W. GERMAN, JAPANESE GROWTH WASHINGTON, June 1 – President Reagan said he will use the annual economic summit of major industrialized countries to press for economic expansion by West Germany and Japan. In a pre-summit speech at the White House, Reagan said that preserving a growing world economy was the business of every member of the world trading community. “It will be made clear, especially to our friends in Japan and the Federal Republic of Germany that growth-oriented domestic policies are needed to bloster the world trading system on which they depend,” he said. Reuter 1-JUN-1987 15:03:19.66 money-fx usa reagan V RM f2195reute u f BC-/REAGAN-URGES-FULFILL 06-01 0099 REAGAN URGES FULFILLMENT OF EXCHANGE ACCORDS WASHINGTON, June 1 – President Reagan, preparing to depart for the Venice economic summit on Wednesday, said the United States and its allies must fulfill agreements on exchange rate stability. “Economic policy decisions made last year in Tokyo, and at this year’s meetings of Group of 7 Finance ministers in Paris and in Washington, cannot be ignored or forgotten,” he said. “The commitments made at these meetings need to be translated into action,” Reagan said in a pre-summit speech celebrating the 40th anniversary of the Marshall Plan. Reuter 1-JUN-1987 15:03:26.51 acq usa F f2196reute r f BC-UNI-MARTS--AC 06-01 0048 UNI-MARTS ACQUIRES GAS-N-ALL STORES STATE COLLEGE, Pa., June 1 – Uni Marts Inc said it acquired seven convenience stores for an undisclosed amount of cash. The acquisition bring to 228 the number of convenience stores owned by Uni-Marts, the company said. Reuter 1-JUN-1987 15:04:24.68 shipcrude usaukcanadaitalyfrancewest-germanyjapan reagan V RM f2201reute u f AM-SUMMIT-REAGAN***URGEN T-(EMBARGOED) 06-01 0082 REAGAN HINTS U.S. WANTS HELP IN PATROLLING GULF WASHINGTON, June 1 – President Reagan said he would discuss the Mideast Gulf situation with allied leaders at next week’s Venice economic summit and hinted he would seek their help in preserving free navigation. In a speech prepared for delivery as the United States made plans to protect 11 Kuwaiti oil tankers from Iranian attack, Reagan said the American people were aware that “it is not our interests alone that are being protected.” Saying that allied dependence on gulf oil was no secret, Reagan declared, “During the upcoming summit in Venice, we will be discussing the common security interests shared by the western democracies in the MIDEAST Gulf. “The future belongs to the brave. Free men should not cower before such challenges, and they should not expect to stand alone.” Reagan will meet the leaders of Britain, France, West Germany, Italy, Canada and Japan at the economic summit, which will take place in Venice June 8-10. The 13th annual top-level meeting of the major industrial democracies will take place against a backdrop of rising congressional concern over Reagan’s plan to protect gulf shipping and demands that the allies do more. These concerns were heightened by the May 17 Iraqi missile attack on the U.S. frigate Stark which killed 37 seamen. “They died while guarding a chokepoint of freedom, deterring aggression and reaffirming America’s willingness to protect its vital interests,” Reagan said. In a pre-summit speech celebrating the 40th anniversary of the Marshall Plan, Reagan, who spoke to an audience of foreign affairs experts, also pledged to push for economic expansion by West Germany and Japan to bolster the world trading system. “While the vibrancy of the U.S. economy has contributed enormously to the world expansion, preserving a growing world economy is the business of every member of the world trading community,” he said. “It will be made clear, especially to our friends in Japan and the Federal Republic of Germany, that growth-oriented domestic policies are needed to bolster the world trading system on which they depend.” Reagan coupled this appeal with a call for compliance with allied accords on exchange rate stability. “Economic policy decisions made last year in Tokyo and at this year’s meetings of Group of Seven finance ministers in Paris and in Washington cannot be ignored or forgotten,” he said. “The commitments made at these meetings need to be translated into action.” Reuter 1-JUN-1987 15:05:10.36 earn usa F f2208reute r f BC-MERRILL-CORP- 06-01 0031 MERRILL CORP 1ST QTR APRIL 30 NET ST. PAUL, Minn., June 1 – Shr 21 cts vs 20 cts Net 965,000 vs 726,000 Revs 13.4 mln vs 11.8 mln Avg shrs 4,606,242 vs 3,624,528 Reuter 1-JUN-1987 15:05:15.19 acq usa F f2209reute r f BC-ADVANCED-TELECOMMUNIC 06-01 0056 ADVANCED TELECOMMUNICATIONS TO BUY CO ATLANTA, Ga., June 1 – Advanced Telecommunications Corp said it reached an agreement in principle to purchase , a long distance telephone service in Florida. The proposed acquisition price is approximately 17.5 mln dlrs in cash, the company said. Reuter 1-JUN-1987 15:05:20.62 earn usa F f2210reute d f BC-ODETICS-INC--4 06-01 0042 ODETICS INC 4TH QTR MARCH 31 NET ANAHEIM, Calif., June 1 – Shr seven cts vs eight cts Net 278,000 vs 340,000 Revs 11.4 mln vs 8,871,000 Year Shr three cts vs one ct Net 113,000 vs 33,000 Revs 39.7 mln vs 33.1 mln Reuter 1-JUN-1987 15:12:30.59 usa A RM f2232reute r f BC-FDIC-CHIEF-SAYS-MORE 06-01 0086 FDIC CHIEF SAYS MORE BANKS WILL BUILD RESERVES SAN FRANCISCO, June 1 – Federal Deposit Insurance Corp Chairman L. William Seidman told a bankers’ meeting he thinks more banks will follow Citicorp and Chase Manhattan in building up their reserves to meet Latin American debt problems. Seidman, speaking to an American Bankers Association trade conference, said he did not think regulators would play as big a role in encouraging banks to build up their loan-loss reserves as the marketplace would. My guess is that we as regulators won’t become the key factor. I think the market system will get most of the other banks to follow suit,” Seidman told some 3,000 executives attending the ABA’s National Operations and Automation Conference. In the past two weeks, Citicorp has added three billion dlrs and Chase Manhattan, 1.6 billion dlrs, to their loan-loss reserves. “I think that most banks are going to find it irresistible to move forward on the same type of reserving because, if they don’t, their future earnings will be penalized as they hold up their reserves on a quarter-by-quarter basis,” Seidman said. He said Chase and Citibank, by setting aside huge amounts at one time, have put their losses behind them and will show much better future earnings. That, he said, will put pressure on more banks to follow suit. Reuter 1-JUN-1987 15:19:06.67 grainwheatoilseed usasouth-korea C G f2252reute d f BC-ADDITIONAL-CCC-CREDIT 06-01 0114 ADDITIONAL CCC CREDIT GUARANTEES FOR KOREA–USDA WASHINGTON, June 1 – The Commodity Credit Corporation (CCC) has reallocated 50.0 mln dlrs in credit guarantees from the previously announced undesignated line to provide additional guarantees for sales of feedgrains, oilseeds, and wheat to South Korea, the U.S. Agriculture Department said. The department said the action increases the feed grains line by 23 mln dlrs to 63 mln, the oilseed line by seven mln dlrs to 52 mln, and the wheat guarantee line by 20 mln to 165 mln dlrs. The undesignated line is reduced to zero. The commodities are for delivery during the current fiscal year ending this September 30, it said. Reuter 1-JUN-1987 15:19:30.74 usa C f2253reute d f BC-FDIC-CHIEF-SAYS-MORE 06-01 0129 MORE U.S. BANKS SEEN BUILDING LOSS RESERVES SAN FRANCISCO, June 1 – Federal Deposit Insurance Corporation Chairman L. William Seidman told a bankers’ meeting he thinks more banks will follow Citicorp and Chase Manhattan in building up their reserves to meet Latin American debt problems. Seidman, speaking to an American Bankers Association trade conference, said he did not think regulators would play as big a role in encouraging banks to build up their loan-loss reserves as the marketplace. “My guess is that we as regulators won’t become the key factor. I think the market system will get most of the other banks to follow suit,” Seidman said. In the past two weeks, Citicorp added three billion dlrs and Chase Manhattan 1.6 billion to loan-loss reserves. Reuter 1-JUN-1987 15:19:58.13 crude Y f2254reute b f BC-******BASIN-PIPELINE 06-01 0015 ******BASIN PIPELINE TEXAS/OKLA BORDER WASHED OUT BY FLOODS SOME 300,000 BPD CRUDE AFFECTED. Blah blah blah. 1-JUN-1987 15:25:11.24 interest usa C G f2259reute u f BC-CCC-INTEREST-HIGHER-I 06-01 0062 CCC INTEREST HIGHER IN JUNE, USDA SAYS WASHINGTON, June 1 – Interest rates on commodity loans disbursed by the Commodity Credit Corporation (CCC) this month will carry a 6-7/8 pct interest rate, the U.S. Agriculture Department said. That is up from the May rate of 6-1/4 pct and reflects the interest rate charged the CCC by the U.S. Treasury in June, USDA noted. Reuter 1-JUN-1987 15:25:19.40 veg-oil belgium ec C G L M T f2260reute u f BC-ANDRIESSEN-HINTS-OIL 06-01 0108 ANDRIESSEN HINTS FATS/OIL TAX COULD GO TO SUMMIT HEVEREN, Belgium, June 1 – European Community (EC) Agriculture Commissioner Frans Andriessen said his proposal for a tax of up to 330 European Currency Units per tonne on oils and fats was likely to go up for discussion at next week’s summit meeting of EC leaders. EC farm ministers have been unable to agree the tax, one of the main items proposed by Andriessen for the 1987-88 farm price package. The tax, which would apply on both domestically-produced and imported oils and fats, has been fiercely opposed by the United States and developing countries’ vegetable and marine oil producers. Reuter 1-JUN-1987 15:26:25.40 acq usa F f2262reute b f BC-BILZERIAN-PREPARED-TO 06-01 0107 BILZERIAN PREPARED TO TENDER FOR PAY N’PAK NEW YORK, June 1 – Investor Paul Bilzerian said if Pay N’ Pak Stores Inc enters into a merger accord with him he will immediately begin a tender offer for 7.5 mln shares for 20 dlrs per share in cash. Bilzerian told Reuters he believes his offer is superior to a leveraged buyout proposal disclosed in an announcement by the company this morning. The company said it is evaluating both proposals. Bilizerian said he was optimistic his offer will be accepted at a meeting of the board of directors Wednesday. Officials of Pay N’ Pak did were not immediately available for comment. Bilzerian said he has a pool of 150 mln dlrs raised by Shearson Lehman Brothers Inc available for the tender and “we may add a bank to that.” “We’ve submitted an agreement we’re prepared to sign,” he said. Shares not accepted in Bilzerian’s tender would be exchangeable for 20 dlrs in convertible preferred stock. Asked what would happen if the leveraged buyout group, which the company did not identify, topped his offer between now and the board meeting, Bilzerian said he expected an opportunity to respond. Pay N’ Pak gave no details about the buyout group, but did say the offer was contingent on financing and on an agrreement regarding management’s equity participation. Bilzerian said it was his understanding that the management particpation was “nominal.” Pay N’ Pak fell 1-1/2 to 19. Arbitrageurs said there was disappointment that neither of the offers topped 20 dlrs. “We were expecting an offer north of (above) 21 or 22 dlrs,” said one arbitrageur. The leveraged buyout plan was for 17.50 dlrs per share in cash and 2.50 dlrs in 13-1/2 pct cumulative preferred stock. Robert Cheadle, analyst at Montgomery Securities, said “you have to ask yourself why no one in the industry made a bid.” Scott Drysdale, analyst at Birr Wilson Securities, said the company has not made the best strategic moves over the years. “They have not done the right things at the right time,” he said, and as a result earnings per share have steadily declined since 1984. The 57 cts per share in earnings reported for the fiscal year ended in February was lower than 1978’s earnings, he said. Earnings totaled 5.7 mln dlrs on revenue of 398.4 mln dlrs. Drysdale said Pay N’ Pak has better trained sales people than many competitors, but it competes on price even though competitors have lower costs. The result is squeezed margins. He noted that there have been no other publicly identified bidders stepping forward since the company rejected an earlier Bilzerian proposal in mid-April. Another arbitrageur said it might not be too late for another bidder to get in the game. He speculated that someone in the same home improvement business might be able to offer a deal for stock that would top both the buyout proposal and Bilzerian’s plan. Reuter 1-JUN-1987 15:27:00.15 canada E F f2264reute u f BC-TORONTO-SUN- 06-01 0056 TORONTO SUN RAISES DIVIDEND Toronto, June 1 – Toronto Sun Publishing Corp said it raised its semi-annual dividend to five cts per share, pay June 15, record June nine The company said the annual dividend rate, now ten cts per share, is an increase of 33 pct after adjusting for a two for one split of the common shares. Reuter 1-JUN-1987 15:29:27.09 acq F f2267reute f f BC-******FORSTMANN-LITTL 06-01 0011 ******FORSTMANN LITTLE AND CO SAID IT PLANS TO SELL SYBRON CORP UNIT Blah blah blah. 1-JUN-1987 15:31:01.76 acq usa F f2270reute r f BC-PHARMACONTROL- ACQUIRES REVCO UNIT ENGLEWOOD CLIFFS, N.J., June 1 – PharmaControl Corp said it acquired Private Formulations Inc from for six mln dlrs in cash, a 13,550,000 dlr promissory note and warrants to buy 200,000 PharmaControl common shares. PharmaControl said the purchase price was financed, along with one mln dlrs in working capital, through secured institutional financing. The company said betweenm 11,550,000 dlrs and 12,550,000 dlrs f the principal amount of the Revco note, plus accrued interest, is payable June 30. The balance is payable over three years. PharmaControl said it expects to make the payment due to Revco from proceeds of a proposed offering of units consisting of convertible subordinated debenturers and common stock currently on file with the Securities and Exchange Commission. Upon closing of the public offering, the company said, it expects the secured institutional financing to increase to a total of 12 mln dlrs. Private Formulations is primarily engaged in the manufacture and distribution of vitamins and private label over-the-counter pharmaceutical products. Reuter 1-JUN-1987 15:31:30.97 F f2273reute f f BC-m*****allied-signal-s 06-01 0013 ******ALLIED-SIGNAL SAID IT SOLD MPB CORP FOR 145 MLN DLRS, ASSUMPTION OF DEBT Blah blah blah. 1-JUN-1987 15:32:24.41 usa F f2280reute r f BC-DEAN-FOODS--PICKS 06-01 0057 DEAN FOODS PICKS CHIEF EXECUTIVE FRANKLIN PARK, Ill., June 1 – Dean Foods Co said its board elected Howard M. Dean, the company’s president, to succeed Kenneth J. Douglas as chief executive officer of the firm. Kenneth will replace Douglas, who is also chairman, on October one, Douglas’ 65th birthday. Douglas will remain chairman. Reuter 1-JUN-1987 15:32:32.04 acq usa F f2281reute r f BC-FISHER-SHAREHOLDER-IN 06-01 0104 FISHER SHAREHOLDER INDECISIVE OVER STOCK BUY BEDFORD HEIGHTS, Ohio, June 1 – Fisher Foods Inc said <5300 Richmond Road Corp>, its largest shareholder, has not yet reached a definitive decision about whether it will buy more Fisher stock through a possible merger, tender offer or another acquisition proposal. 5300 is a Delaware corporation formed by , and which owns 1.5 mln shares of Fisher, or about 44 pct of its outstanding common stock. Fisher said 5300 had announced on April 20 that they would make a decision on June 1 about the move. Fisher said 5300 also told it they will continue to explore possible advantages and disadvantages of various acquisition proposals. 5300 also said it is continuing to discuss with various financial groups about possible financing for such a move, but gave no indication of when any financing or proposal would be finalized, Fisher said. Reuter 1-JUN-1987 15:33:09.66 grainbarley saudi-arabia C G f2285reute f f BC-ussr-export-sale 06-01 0015 ******U.S. EXPORTERS REPORT 150,000 TONNES OF BARLEY SOLD TO SAUDI ARABIA FOR 1987/88-USDA Blah blah blah. 1-JUN-1987 15:33:45.47 usatanzaniarwanda ida A RM f2287reute d f BC-IDA-EXTENDS-37.1-MLN 06-01 0100 IDA EXTENDS 37.1 MLN DLRS IN AFRICA LOANS WASHINGTON, June 1 – The World Bank said it will provide 37.1 mln dlrs to Tanzania and Rwanda through the International Development Association (IDA), the bank’s concessionary lending affiliate. Tanzania will recieve a 23 mln dlr IDA loan to help rehabilitate its telecommunications network, the bank said. The 14.1 mln dlr IDA loan to Rwanda will help finance tropical forest conservation projects and a reforestation program, the bank said. The IDA credit is for 50 years, including 10 years of grace, and carries no interest, the bank said. Reuter 1-JUN-1987 15:36:08.46 grainbarley usasaudi-arabia C G f2292reute b f BC-ussr-export-sale 06-01 0043 BARLEY SOLD TO SAUDI ARABIA – USDA WASHINGTON, June 1 – Private exporters reported sales of 150,000 tonnes of barley to Saudi Arabia for delivery in the 1987/88 season, the U.S. Agriculture Deapartment said. The 1987/88 season for barley begins today. Reuter 1-JUN-1987 15:37:39.38 acq usa F f2297reute u f BC-U.S.-BANCORP- 06-01 0085 U.S. BANCORP HAS ACQUISITION APPROVAL PORTLAND, Ore., June 1 – U.S. Bancorp (Oregon) said it has been advised orally that its application for the acquisition of Old National Bancorp has been approved by the Board of Governors of the Federal Reserve. The company said it has also been advised that it has received Fed approvals for its acquisition of Heritage Bank of Camas, Wash., and for its conversion of its subsidiary, U.S. Thrift and Loan of Salt Lake City, Utah, into a commercial bank. In January U.S. Bancorp and Old National reached a definitive agreement covering the acquisition of all the stock of Old National which it does not already own for 171 mln dlrs. U.S. Bancorp currently owns 4.9 pct of Old National’s stock. Reuter 1-JUN-1987 15:39:16.49 crude usa nymex Y f2301reute u f BC-MAJOR-U.S.-OIL-PIPELI 06-01 0106 MAJOR U.S. OIL PIPELINE SHUT DOWN BY FLOODS NEW YORK, June 1 – Flooding in the Red River on the Texas/Oklahoma border has shut down the Basin Pipeline, a 24-inch pipeline that transports as much as 300,000 barrels per day of sweet and sour crudes from Texas to Cushing, Okla, a Texaco Pipeline Co spokesman confirmed. “The water is rushing by so fast that we can’t get any divers down to assess the damage but there is some possibility that the pipeline could be up by the end of the week,” a company source said. The pipeline transmits roughly two-thirds sour crude and one-third sweet crude oil from the Midland, Texas region. Texaco sources said that if the pipeline service is restored by Friday there would be little problem in restoring oil which has been lost to the flood. “But if the pipeline is down more than 10 days it will be difficult to make up without prorationing and we would not like to proration this pipeline, if we don’t have to.” The Basin Pipeline is jointly owned by Atlantic Richfield Corp , Shell Oil Co, a subsidiary of the Royal Dutch/Shell Group and Texaco Inc , which is the pipeline’s operator. Peter Beutel, analyst at Elders Futures Inc, said crude oil futures contracts on New York Mercantile Exchange rose to new highs this afternoon following news of the pipeline break. July crude futures of West Texas Intermediate traded up to 19.60 dlrs a barrel, a rise of more than 20 cts. Cash market prices also firmed on the news with sellers of WTI raising offers to 19.60 dlrs a barrel. Sour crudes, which would be most affected by the pipeline shutdown, however, were slow to react to the news with West Texas Sour and Alaska North Slope holding 50 cts to one dlr a barrel below WTI, respectively. Dan Stevens, manager of public and government affairs at Texaco, said the company hopes to fix the pipeline in five days but that will depend on when the water level of the Red River recedes. There is already evidence that the water level is dropping and it appears the rain has stopped in the area affecting the pipeline, Stevens said. He said the segment of the pipeline that was damaged was underground and at a distance from the Red River that flooded. The pipeline runs over the Red River and under the subsoil nearby, according to Stevens. He said some of this subsoil was apparently washed away. The potential for environmental damage is being downplayed at this time despite the volume of oil that runs through this line. Texaco’s Stevens said that aerial surveillance has not found any crude on the water in the river or in Lake Texoma, which is nearby. Reuter 1-JUN-1987 15:44:31.60 usa A RM f2309reute r f BC-UNISYS--TO-REDEE 06-01 0106 UNISYS TO REDEEM 7-1/4 PCT CONVERTIBLES NEW YORK, June 1 – Unisys Corp said it will redeem on July one all of its outstanaing 200 mln dlrs of 7-1/4 pct convertible subordinated debentures of 2010. It will buy back the convertibles at 106.525 pct of 1,000 dlr par value, plus accrued interest. Unisys also said it expected that substantially all of the debentures will be surrendered for conversion into its common stock. Each 1,000 dlr debenture is convertible into 12.88 shares of common before the close of business on June 26. The company the conversion of the debt to equity would strengthen its capital structure. Reuter 1-JUN-1987 15:44:43.22 earn usa F f2310reute r f BC-BRITISH-LAND-OF-AMERI 06-01 0044 BRITISH LAND OF AMERICA INC YEAR MARCH 31 NEW YORK, June 1 – Shr loss 36 cts vs loss 57 cts Net loss 4,589,000 vs loss 7,339,000 Revs 19.9 mln vs 19.6 mln Avg shrs 14.7 mln vs 13.3 mln NOTE: Company is a subsidiary of Reuter 1-JUN-1987 15:46:15.27 usa F f2315reute d f BC-FIRST-PHILADELPHIA-UN 06-01 0106 FIRST PHILADELPHIA UNIT FILES FOR CHAPTER 11 PHILADELPHIA, June 1 – said its Computone Systems Inc unit filed a chapter 11 plan for with the U.S. Bankruptcy Court in Atlanta. Subject to confirmation by the court of the plan, the assets of Computone’s two operating divisions would be transferred to CPX Inc, a wholly-owned subsidiary of First Philadelphia, the company said. First Philadelphia said it is in the process of raising 1,750,000 dlrs to complement it initial investment of 750,000 dlrs to fund the cost of the reorganization and provide ongoing capital for existing Computone businesses. Reuter 1-JUN-1987 15:48:06.12 acq usa F f2324reute b f BC-FORSTMANN-LITTLE-AND 06-01 0108 FORSTMANN LITTLE AND CO TO SELL UNIT NEW YORK, June 1 – said it plans to sell its Sybron Corp unit, a leading maker and marketer of dental and laboratory products, for an undisclosed sum. Forstmann Little said it acquired Sybron in February 1986 and since that time Sybron has been substantially restructured, with new management, lower corporate overhead and a new location in Saddle Brook, N.J. Fortsmann Little said will act as its financial advisor for the move. It added that Sybron expects revenues for the current fiscal year of 242 mln dlrs with operating income of about 51 mln dlrs. Reuter 1-JUN-1987 15:53:17.74 acq usa F f2333reute b f BC-TAKEOVER-SPECULATION 06-01 0110 TAKEOVER SPECULATION LIFTS HUTTON SHARES New York, June 1 – E.F. Hutton Group Inc shares rose on speculation the company would receive a takeover offer, traders said. Hutton’s stock also was affected by a newspaper report that First Boston Corp accumulated almost five pct of Hutton’s stock on behalf of an outside client, traders said. Traders said the story, which appeared in USA Today, added speculation which began on the street last week. They said there were rumors the stock was under accumulation and speculation abounded the company would soon receive an offer. A Hutton official declined comment. Hutton’s stock rose 2-1/4 to 39-3/8. Hutton several months ago rejected a buyout offer from Shearson Lehman Brothers Inc . The newspaper story mentioned speculation American Express Co , the parent of Shearson, was a possible buyer. But traders said the rumors today did not name buyers. First Boston officials were not immediatley available for comment. Prudential Bache analyst Larry Eckenfelder said he doubted the speculation about American Express. He said he believed Hutton, which is occassionally surrounded by rumors, moved up today as a result of the newspaper article. “Hutton is still a takeover candidate,” said Eckenfelder. Reuter 1-JUN-1987 16:02:28.74 acq usahong-kong F f2350reute u f BC-WRATHER 06-01 0093 HONG KONG FIRM UPS WRATHER STAKE TO 28 PCT WASHINGTON, June 1 – Industrial Equity (Pacific) Ltd, a Hong Kong investment firm, said it raised its stake in Wrather Corp to 2,025,850 shares, or 28.1 pct of the total outstanding common stock, from 1,808,700 shares, or 25.1 pct. In a filing with the Securities and Exchange Commission, Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand firm, said it bought 217,150 Wrather common shares on May 28 and 29 at 20.00 dlrs a share, or 4.3 mln dlrs total. Reuter 1-JUN-1987 16:06:03.22 usa F f2357reute b f BC-ALLEGIS--FILING 06-01 0108 ALLEGIS FILING MAY BE LATER THIS WEEK New York, June 1 – Allegis Corp may file its plan of recapitalization with the Securities and Exchange Commission later this week, a company spokesman said. The spokesman also said the company has no comment on Coniston Partners plan to carry out its solicitation of consents from shareholders to remove Allegis directors. Coniston proposes replacing the board of directors with its own candidates and then selling off one or more units of Allegis. Allegis, apparently in response to takeover activity, announced a sweeping recapitalization plan, which will give shareholders 60 dlrs per share. Allegis shares came under pressure from institutional selling today. The stock slipped 1-3/8 to 85-1/8 on volume of more than 1.6 mln shares. Traders said there was also arbitrage-related buying. PaineWebber Group analyst Edward Starkman said institutions and other long-term holders may want to cash in their gains instead of waiting for the company’s special dividend, which would be taxed at a higher rate. The recapitalization is subject to shareholder and other approvals. Starkman said he believes Coniston may still have a chance to win the battle for control of Allegis’ board room, despite the recapitalization plan. Coniston Partners would not comment on the recapitalization plan. “We said a week ago, and we say it again today that the way to maximize value for shareholders is to see these companies traded as independent companies,” said Keith Gollust, one of the partners. Allegis owns United Air Lines, Hertz rental cars, and Westin and Hilton International hotels. Allegis’ recapitalization plan does not entail the sale of any of those businesses, which its management claims are necessary to its travel services strategy. The recapitalization plan would add three billion dlrs in debt to its balance sheet. Some Wall Street analysts believe such a move could be risky since the airline, as well as other travel businesses, are dependant on the strength of the economy. “They’ve become sort of a super cyclical company,” Starkman said. The hotels and car rental business represents “no diversification. It just makes it worse.” Traders and analysts who believe Coniston’s effort may have a chance believe that Allegis management is not giving shareholders full value. After receiving the dividend, shareholders will still hold their stock. Arbitragers and analysts valued the recapitalization in the upper 80s to 100 dlrs per share. Breakup values for the company estimated on Wall Street exceed 110 dlrs per share. Reuter 1-JUN-1987 16:06:38.25 usauk ec F f2358reute r f BC-BRITISH-AIRWAYS- SCHEDULED 06-01 0094 BRITISH AIRWAYS SEES SMOOTH TRANSITION By Philip Barbara, Reuters CHICAGO, June 1 – British Airways is looking forward to industry deregulation in Europe and believes it will be a smoother transition than the turmoil that followed the opening of the U.S. skies, its chief executive said. Colin Marshall told Reuters that Europe will phase in deregulation gradually to avoid the problems created in the U.S. in the late 1970s — fast growth, unstable fares, new carriers that went bankrupt and ultimately years of losses for even the largest airlines. “In Europe we have the benefit of learning from the American experience,” Marshall said. “When you add that to the conservative nature of the Europeans, it amounts to an approach that is slower and more cautious.” Airline liberalization, as it is called, must first be approved by the transportation ministers of the European Community nations. This could come this month when the ministers meet to take it up, Marshall said in an interview during a U.S. visit to talk to airline industry analysts. “As the largest airline in Europe, and with the sophisticated computer systems we have to help us with yield and load factors management, I think we have a very good chance, if not the best chance, of doing well in a liberalized situation in Europe,” Marshall said. Airline market deregulation in Europe will open up new routes between European countries, allow established carriers to grow and permit new airlines to begin operations. It will also free airlines to fly more seats on any given route — something that is highly regulated now — and to base fares on market forces. Discount fares in Europe might even become more widespread. “We think liberalization will help stimulate traffic,” Marshall said. Lower fares have been offered by British carriers since domestic services in Britain were deregulated in 1984, he said. But passengers taking return flights or from other countries pay higher, regulated prices. Marshall said deregulation will spawn more European airlines, possibly to be followed by a spate of mergers, as is happening in the United States. Two airlines, Sabena and Scandinavian Airlines System (SAS), are now discussing a merger. Their success “might open up Europe to further merger activity,” he said. This is because an SAS-Sabena merger could be a test case to determine whether countries are willing to allow landing rights to be transferred from one carrier to another, he said. Reuter 1-JUN-1987 16:08:12.97 crude usa F A Y RM f2360reute u f AM-GULF-STUDY 06-01 0109 CONGRESSMAN SAYS U.S. UNPREPARED FOR OIL CUTOFF WASHINGTON, June 1 – Rep. Mike Synar said today that while President Reagan is ready to use military force to protect Kuwait tankers in the Gulf, the United States is ill-prepared at home to deal with a new energy crisis. Synar, Democrat of Oklahoma, made his remarks in comments on a study by the General Accounting Office (GAO) on the U.S. participation in the 1985 test of the emergency oil sharing program of the International Energy Agency. The IEA, an alliance of 21 oil consuming countries, was formed after the 1973-74 Arab oil embargo to find ways to deal with any future oil cutoff. Synar said, “the president is prepared to take military action to protect Kuwaiti oil tankers but has been unwilling to take less dangerous, equally-important action to prepare our nation for the next energy crisis.” Reagan said the U.S. military would protect Kuwaiti oilers to assure the West of a continuing supply of Middle East oil, increasingly being threatened by the Iranian-Iraqi war. Synar, who asked for the GAO report after criticism of U.S. action in a previous IEA test, said the United States successfully advocated a test limited to training participants in oil sharing procedures and the system’s mechanical aspects. Reuter 1-JUN-1987 16:11:00.35 usa F f2363reute u f BC-ANHEUSER-BUSCH- 06-01 0099 ANHEUSER-BUSCH UNIT CHANGES PLANT SITE ST. LOUIS, MO., June 1 – Anheuser-Busch Companies Inc said its Metal Container Corp subsidiary will build its planned beverage can manufacturing plant in Orange County, New York instead of Chester, New York. The site was changed because Metal Container was unable to obtain necessary building permits within its construction schedule requirements, it said. The proposed plant, which is expected to be completed in late 1988, will produce aluminum spin-neck cans and have an operating capacity of more than two billion cans a year, it said. Reuter 1-JUN-1987 16:14:08.68 acq usa F f2370reute u f BC-ALLIED-SIGNAL--C 06-01 0088 ALLIED-SIGNAL COMPLETES SALE OF MPB CORP MORRIS TOWNSHIP, N.J., June 1 – Allied-Signal Inc said it completed the sale of its MPB Corp unit to Bearing Acquisition Corp for 145 mln dlrs plus assumption of certain MPB liabilities. Headquartered in Keene, N.H., MPB designs and makes precision ball and roller bearings used in aerospace, ordnance and computer applications. Allied-Signal said the unit had 1986 sales of over 90 mln dlrs. It noted the sale to newly formed Bearing Acquisition was announced May 18. Allied-Signal said Bearing Acquisition is a newly-formed corporation owned by an investors group organized by Harold S. Geneen and Donaldson Lufkin and Jenrette Securities Corp. Wells Fargo Bank provided senior debt financing to Bearing Acquisition and Donaldson Lufkin and Jenrette provided bridge financing in the form of subordinated notes, preferred stock and common stock in an amount sufficient to fund the purchase price, Allied-Signal added. Reuter 1-JUN-1987 16:14:39.33 leadzincstrategic-metal canada M f2371reute r f BC-COMINCO--SEES 06-01 0135 COMINCO SEES MEETING WITH STRIKING UNION LOCALS TRAIL, British Columbia, June 1 – Cominco Ltd said it expects to meet today with two of five United Steelworkers of America locals on strike at its Trail smelter and Kimberley, B.C. lead-zinc mine, a Cominco spokesman said. It had no meeting scheduled with the other three striking locals, which rejected a tentative three-year contract Saturday, Cominco spokesman Richard Fish said. Fish said the pact that was rejected contained a cost of living increase tied to the Canadian consumer price index, but no wage increase. With 81 pct of the membership voting, 54.5 pct voted no and 45.5 pct voted yes, the union said. The three locals represent about 2,600 production and maintenance workers, while the remaining two locals cover about 600 office and technical workers. The office and technical workers last negotiated May 21. Production at Trail and Kimberley has been shut down since the strike began May 9 and Cominco has had to declare force majeure, which means the company may be unable to honor contracts for products from the smelter and mine. Each of the five locals have separate contracts, all of which expired April 30, but the main issues are similar. The Trail smelter, about 400 miles east of Vancouver, produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley, about 450 miles east of Vancouver, produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. The smelter also produced cadmium, bismuth and indium. Trail smelter revenue was 356 mln Canadian dlrs in 1986. Reuter 1-JUN-1987 16:16:24.25 acq usa F f2380reute u f BC-NATIONAL-DISTILLERS 06-01 0106 BASS GROUP CUTS NATIONAL DISTILLERS STAKE WASHINGTON, June 1 – An investor group led by members of the Bass family of Fort Worth, Texas, said it lowered its stake in National Distillers and Chemical Corp to 1,159,400 shares, or 3.6 pct of the total common, from 1,727,200, or 5.3 pct. In a filing with the Securities and Exchange Commission, the Bass group said it sold 567,800 National Distillers common shares between May 15 and 29 at prices ranging from 59.94 to 63.44 dlrs a share. As long as the group’s stake is below five pct, it is not required to disclose its further dealings in National Distillers’ common stock. Reuter 1-JUN-1987 16:16:57.46 acq usa F f2383reute u f BC-BUCKEYE 06-01 0088 REPUBLIC AMERICAN UPS BUCKEYE STAKE WASHINGTON, June 1 – Republic American Corp told the Securities and Exchange Commission it raised its stake in Buckeye Partners L.P. to 963,200 limited partnership units, or 8.0 pct of the total, from 744,200 units, or 6.2 pct. Republic, which is controlled by Cincinnati, Ohio, financier Carl Lindner and his American Financial Corp, said it bought 219,000 Buckeye units between May 14 and 22 at prices ranging from 22.49 to 23.02 dlrs each, or about 5.0 mln dlrs total. Reuter 1-JUN-1987 16:18:54.74 usa F f2385reute r f BC-UNIVERSAL-HEALTH- TO BUY BACK SHARES KING OF PRUSSIA, Pa., June 1 – Universal Health Realty Income Trust said its board approved the repurchase over the next 12 months of up to one mln shares of beneficial interest of the trust in the open market or subject to obtaining necessary financing. Universal also declared a regular quarterly dividend of 33 cts a share payable June 30 to shareholdres or record June 15. Reuter 1-JUN-1987 16:19:37.52 acq usa F f2388reute d f BC-KINGSBRIDGE,-MASCO-SE 06-01 0044 KINGSBRIDGE, MASCO SET MERGER NEW YORK, June 1 – Kingsbridge Holdings Ltd, said it signed a letter of intent for a merger with . The transaction calls for 230 mln sahres of Kingsbridge common stock to be issued to shareholders of Masco. Reuter 1-JUN-1987 16:21:03.56 earn canada E F f2392reute r f BC-INTERNATIONAL-CORONA 06-01 0058 INTERNATIONAL CORONA 2ND QTR NET TORONTO, June 1 – Period ended March 31 Oper shr profit four cts vs loss 17 cts Oper net profit 584,000 vs loss 2,165,000 Revs 7,493,000 vs not given SIX MTHS Oper shr profit eight cts vs loss 14 cts Oper net profit 1,177,000 vs loss 1,778,000 Revs 14.8 mln vs not given. reuter 1-JUN-1987 16:21:11.65 usa F f2393reute r f BC-PEPSICO--CHICKEN 06-01 0057 PEPSICO CHICKEN UNIT COMMITS 40 MLN DLRS NEW YORK, June 1 – Pepsico Inc’s Kentucky Fried Chicken said it has committed 40 mln dlrs over the next 90 days to introduce a major new product category. The company said it is introducing Chicken Littles, a chicken patty sandwich served on a soft dinner roll, which will sell for 39 cts. Reuter 1-JUN-1987 16:21:18.83 usa F C f2394reute r f BC-RALSTON-PURINA- 06-01 0070 RALSTON PURINA FORMS BRANDED FOODS GROUP ST. LOUIS, MO., June 1 – Ralston Purina Co said it formed a new branded foods group to align all of its warehouse-delivered human foods. W. Patrick McGinnis, formerly executive vice president of the company’s grocery products division, was named president of the new group and will report to W.P. Stiritz, Ralston’s chairman. Reuter 1-JUN-1987 16:21:47.93 earn canada E F f2395reute r f BC-ROYEX-GOLD-MINING- 2ND QTR MARCH 31 NET TORONTO, June 1 – Oper shr loss three cts vs loss one ct Oper net loss 1,796,000 vs loss 381,000 Revs 2,501,000 vs 2,695,000 SIX MTHS Oper shr loss eight cts vs loss four cts Oper net loss 3,235,000 vs loss 1,123,000 Revs 4,850,000 vs 4,551,000 Note: 1987 net excludes 2nd qtr extraordinary gain of 87 mln dlrs or 1.54 dlrs shr from sale of 51 pct stake of Mascot Gold Mines Ltd . Full name Royex Gold Mining Corp. Reuter 1-JUN-1987 16:22:28.10 acq F f2396reute f f BC-******DRESSER-INDUSTR 06-01 0014 ******DRESSER INDUSTRIES INC TO SELL RELIANCE STANDARD LIFE INSURANCE TO ROSENKRANZ UNIT Blah blah blah. 1-JUN-1987 16:22:42.79 usa F f2397reute h f BC-SEABROOK-NUCLEAR-STAT 06-01 0112 SEABROOK NUCLEAR STATION OWNERS SET ADVERTISING SEABROOK, N.H., June 1 – Public Service Co of New Hampshire said the owners of the Seabrook nuclear power plant approved a 1.2 mln dlr advertising campaign to inform the public about the plant’s safe construction. The campaign make a point that nuclear power provides one-third of New England’s electricity and Seabrook is the ninth nuclear plant in the six-state region. Operation of the plant has been delayed by the reluctance of officials in neighboring Massachusets to participate in evacuation drills. New Hampshire Public Service is operator of the plant and has a 35.6 pct interest in the facility. Reuter 1-JUN-1987 16:23:12.47 V RM f2399reute f f BC-******U.S.-SELLS-3-MO 06-01 0014 ******U.S. SELLS 3-MO BILLS AT 5.81 PCT, STOP 5.82 PCT, 6-MO 6.10 PCT, STOP 6.11 PCT Blah blah blah. 1-JUN-1987 16:23:19.73 earn usa F f2400reute d f BC-DIANA-CORP--YEAR 06-01 0061 DIANA CORP YEAR MARCH 28 OPER NET MILWAUKEE, WIS., June 1 – Oper shr 74 cts vs 30 cts Oper net 3,034,000 vs 1,225,000 NOTE: 1987 operating net excludes credits of 1,043,000 dlrs or 25 cts a share. 1986 operating net excludes discontinued operations of 84,000 dlrs or two cts, and extraordinary charges of 1,119,000 dlrs or a loss of 27 cts. Reuter 1-JUN-1987 16:23:29.08 usa F f2401reute u f BC-AMERICAN-REALTY- 06-01 0103 AMERICAN REALTY RIGHTS OVERSUBSCRIBED DALLAS, June 1 – American Realty Trust said oversubscription pool requests received in a recent rights offering were in excess of five mln shares. As a result, all 12.1 mln shares offered will be issued, and the trust will receive additional equity of over 45 mln dlrs. Under the offering, the Trust distributed to shareholders rights to acquire beneficial interest at 3.75 dlrs per share . Its largest shareholder, Southmark Corp delivered most of its rights to shareholders as a special dividend, reducing its share ownership to 42 pct from 84 pct, it said. Reuter 1-JUN-1987 16:23:41.45 usa F f2402reute d f BC-WITCO--UNIT-OPEN 06-01 0107 WITCO UNIT OPENS FAST-OIL CHANGE CENTER IRVING, Texas, June 1 – Kendall Refining Co, a unit of Witco Corp, and the chain, said they have developed one of the nation’s first fast-oil-change centers for trucks outside of Dallas. The service, called Fast Lube, offers a 60-minute oil change and inspection service for trucks and also involves a used-oil analysis program that relays engine information to the driver’s fleet headquarters, the companies said. According to the companies, fast-oil-change centers are expected to grow from the current three pct of the oil lubrication market to 15 pct by 1990. In addition, Kendall said it recently launched a national Fast Lube program with that provides participating Avis Lube franchises with lubricants, equipment and marketing support. Reuter 1-JUN-1987 16:24:28.54 acq usa F f2404reute d f BC-WYSE--TO-GET 06-01 0051 WYSE TO GET LINK TECHNOLOGIES SAN JOSE, Calif., June 1 – Wyse Technology said it agreed in principle to acquire privately-held Link Technologies Inc in exchange for an undisclosed amount of Wyse Technology shares. Link Technologies develops and markets computer terminals, Wyse also said. Reuter 1-JUN-1987 16:24:49.19 usa F f2405reute d f BC-LTV--GETS-CONTR 06-01 0055 LTV GETS CONTRACT DALLAS, June 1 – LTV Corp’s LTV Aircraft Products Group said it was awarded a contract valued at more than 10 mln dlrs to continue production of engine covers and thrust reversers for the Challenger 601-3A executive business jet. the aircraft is manufactured by Canadair Ltd. of Montreal, it said. Reuter 1-JUN-1987 16:25:18.51 usa F f2406reute d f BC--FIL 06-01 0077 FILES FOR PUBLIC OFFERING ENCINO, Calif., June 1 – Lincoln Bancorp said it filed a registration statement with the Securities and Exchange Commission covering a proposed public offering of one mln common shares at an estimated offering price of between eight and nine dlrs per share. The company said First of Michigan Corp will manage the underwriting. It said proceeds will be used for general corporate purposes and for expansion. Reuter 1-JUN-1987 16:26:03.13 usa F f2408reute d f BC-PUEBLO--TO-REPUR 06-01 0040 PUEBLO TO REPURCHASE SHARES NEW YORK, June 1 – Pueblo International Inc, a supermarket operator, said it bought 75,000 shares last week in two separate transactions from unrelated shareholders as part of its share buy back program. Reuter 1-JUN-1987 16:26:23.77 earn usa F f2410reute h f BC-MCLAIN-INDUSTRIES-INC 06-01 0043 MCLAIN INDUSTRIES INC 2ND QTR MARCH 31 STERLING HEIGHTS, Mich., June 1 – Shr 11 cts vs 13 cts Net 234,326 vs 266,653 Revs 5.5 mln vs 5.8 mln Six months Shr 21 cts vs 31 cts Net 445,509 vs 646,978 Revs 9.4 mln vs 10.8 mln Reuter 1-JUN-1987 16:27:08.93 usa C G f2412reute u f BC-MYERS-TO-HEAD-U.S.-PA 06-01 0146 MYERS TO HEAD U.S. PARTY TO WORLD FOOD COUNCIL WASHINGTON, June 1 – Peter Myers, Deputy Secretary of Agriculture will head the U.S. delegation to the World Food Council’s Thirteenth Ministerial in Peking, China June 8-11, the U.S. Agriculture Department said. The discussions will center on four issues — the global state of hunger and malnutrition and the impact of economic adjustment on food and hunger problems, the impact of international agricultural trade and related national policies on food and development, regional cooperation in food and agriculture among developing nations in the Southern hemisphere, and activities of multilateral assistance agencies aimed at reducing hunger. The World Food Council is a 36-country United Nations body, which recommends how governments and international organizations can work together to alleviate world hunger. Reuter 1-JUN-1987 16:29:21.63 usaaustraliaspainnew-zealandjapan F f2418reute d f BC-MORINO--EXPAN 06-01 0077 MORINO EXPANDS INTERNATIONAL MARKETING VIENNA, Va., June 1 – Morino Associates Inc said it established a new business unit to establish its presence in Australia, New Zealand, Spain, South and Central AMerica, Africa, Middle East and the Far East. The new unit will explore opportunities for the establishment of marketing agreements that address secondary markets for the company’s technology and will evaluate opportunities in Japan, it said. Reuter 1-JUN-1987 16:30:12.09 leadzincstrategic-metal canada M f2419reute r f BC-COMINCO--SEES 06-01 0139 COMINCO SEEKS MEETING WITH STRIKING UNION LOCALS TRAIL, British Columbia, June 1 – Cominco Ltd said it expects to meet today with two of five United Steelworkers of America locals on strike at its Trail smelter and Kimberley, B.C. lead-zinc mine, a Cominco spokesman said. It had no meeting scheduled with the other three striking locals, which rejected a tentative three-year contract Saturday, Cominco spokesman Richard Fish said. Fish said the pact that was rejected contained a cost of living increase tied to the Canadian consumer price index, but no wage increase. With 81 pct of the membership voting, 54.5 pct voted no and 45.5 pct voted yes, the union said. The three locals represent about 2,600 production and maintenance workers, while the remaining two locals cover about 600 office and technical workers. The office and technical workers last negotiated May 21. Production at Trail and Kimberley has been shut down since the strike began May 9 and Cominco has had to declare force majeure, which means the company may be unable to honor contracts for products from the smelter and mine. Each of the five locals have separate contracts, all of which expired April 30, but the main issues are similar. The Trail smelter, about 400 miles east of Vancouver, produced 240,000 long tons of zinc and 110,000 long tons of lead last year. The Sullivan mine at Kimberley, about 450 miles east of Vancouver, produced 2.2 mln long tons of ore last year, most for processing at the Trail smelter. The smelter also produced cadmium, bismuth and indium. Trail smelter revenue was 356 mln Canadian dlrs in 1986. Reuter 1-JUN-1987 16:32:08.07 usa F f2421reute r f BC-TOYOTA-SAYS-IT-ONLY-S 06-01 0118 TOYOTA SAYS IT ONLY STUDYING LUXURY UNIT PLANS DETROIT, June 1 – Toyota Motor Co’s U.S. sales subsidiary said it has been studying the possibility of forming a new division to market upscale cars, but denied a published report that it would announce a startup decision this year. Toyota spokesman Jerry Giaquinta told Reuters: “All we’re saying at this point is we’be been studying the luxury, performance segment and no final decision has been made on whether to enter it or which or several options to follow.” The trade paper Automotive News reported in this week’s edition that Toyota will announce such a division in a move similar to rival Honda Motor Co’s Acura car division. The Toyota spokesman said, “The Automotive News article is based on speculative assumptions.” The paper said Toyota has already identified 100 key dealers who would be offered the “unnamed new franchise” that would open in the 1989 model year with “three luxury-performance car lines.” It also said the new Toyota luxury line would have prices likely to start arpund 16,000 dlrs and going to the “high-20,000-dlr range” to appeal to buyers of European and American luxury buyers. Reuter 1-JUN-1987 16:32:48.30 F A RM f2423reute f f BC-******MOODY’S-AFFIRMS 06-01 0013 ******MOODY’S AFFIRMS MIDDLE SOUTH AND UNITS, AFFECTS FOUR BILLION DLRS OF DEBT Blah blah blah. 1-JUN-1987 16:34:12.74 earn usa F f2428reute u f BC-PHILLIPS-VAN-HEUSEN-C 06-01 0050 PHILLIPS-VAN HEUSEN CORP 1ST QTR NEW YORK, June 1 – Shr 73 cts vs 60 cts Net 4.6 mln vs 3.8 mln Revs 112.8 mln vs 104.1 mln NOTE:1987 includes lifo charge of 1.5 mln dlrs, pension expenses declined by 879,000 dlrs due to change in accounting, interest decreased by 382,000 dlrs. Reuter 1-JUN-1987 16:36:35.17 acq usa F f2435reute u f BC-DRESSER--TO-SELL 06-01 0102 DRESSER TO SELL UNIT TO ROSENKRANZ AND CO DALLAS, June 1 – Dresser Industries Inc said it signed a definitive agreement to sell its Reliance Standard Life Insurance Co to RSL Holding Co Inc., a subsidiary of the privately-held, New York-based investment firm of Rosenkranz and Co. Terms were not undisclosed. Philadelphia-based Reliance earned 25.3 mln dlrs on sales of 201.6 mln dlrs in 1986. Dresser said it will use the proceeds from the sale for stock repurchases, debt reduction, and possibly complementary acquisitions in the field of engineered products and services for energy producers. Reuter 1-JUN-1987 16:36:58.12 acq usa F f2436reute u f BC-ATCOR-SEEKS-B 06-01 0080 ATCOR SEEKS BUYERS FOR CONSUMER BUSINESS CHICAGO, June 1 – Atcor Inc said that Roth-American Inc, which had signed a letter of intent on May 1 to acquire its Turco and Charmglow operations of its consumer products segment, has decided against buying Charmglow. While Roth-American said it is still interested in acquiring Turco, Atcor said it is now reviewing its options with other potential buyers who have expressed interest in its consumer products businesses. Reuter 1-JUN-1987 16:37:10.24 earn usa F f2437reute h f BC-INTERNATIONAL-CONSUME 06-01 0030 INTERNATIONAL CONSUMER BRANDS 1ST QTR WESTPORT, Conn, June 1 – Shr profit one cts vs loss three cts Net profit 68,607 vs loss 183,893 Revs 4.2 mln vs 602,665 Reuter 1-JUN-1987 16:40:11.27 acq usa F f2445reute u f BC-USPCI--SEEN-REJE 06-01 0078 USPCI SEEN REJECTING UNION PACIFIC BID CHICAGO, June 1 – USPCI Inc likely will reject a 43-dlr-a-share bid made last Wednesday by Union Pacific Corp (UNP), analysts said. “The offer is inadequate,” said Douglas Augenthaler, an analyst with E.F. Hutton, noting that it does not represent the needed premium over the company’s fundamental value based on earnings estimates. USPCI, which has 8.7 mln shares outstanding, was trading at 48-1/8, down 3/8. USPCI vice president of finance Larry Shelton said he could not comment on the adequacy of the offer or on when the board would meet to consider it. Augenthaler said that while USPCI was trading at only 34 dlrs a share at the time of the takeover bid, its announcement that same day of higher earnings expectations changed its value. USPCI said its second quarter earnings would exceed analysts expectations of 24 to 30 cts a share. At that price, USPCI could maintain a stock price in the low 40s, Augenthaler said. Hutton revised its 1987 earnings estimate for the waste management concern to 1.40 dlrs a share from 1.20 dlrs on the announcment, he said. It lifted its 1988 projection to 1.90 dlrs a share from 1.70 dlrs. In addition, analysts said the hazardous waste management business holds significant growth potential. The industry has grown from 16 to 35 pct over the last five years, based on earnings per share, said Jeffrey Klein, an analyst with Kidder Peabody and Co. The industry is expected to continue growing at 15 to 35 pct over the next five years, he said. Augenthaler said the 43-dlr-a-share offer, or 375 mln dlrs total, would be a bargain for Union Pacific. The transportation and energy company would both gain entry into a profitable business and win cost-control benefits, he said. “Union Pacific has what are rumored to be some fairly signficant environmmental problems of its own,” he said. Herb Mee Jr., president of Beard Oil Co (BEC), which holds a 30.4 pct stake in USPCI, said last week Union Pacific’s offer was “grossly inadequate.” Reuter 1-JUN-1987 16:41:36.49 crude usa F Y f2450reute r f BC-TOTAL-PETROLEUM- 06-01 0109 TOTAL PETROLEUM SHUTS TEXAS PIPELINES NEW YORK, June 1 – Total Petroleum NA shut down several small crude oil pipelines operating near the Texas/Oklahoma border last Friday as a precaution against damage from local flooding, according to Gary Zollinger, manager of operations. Total shut a 12-inch line that runs across the Ouachita River from Wynnewood to Ardmore with a capacity of 62,000 bpd as well as several smaller pipelines a few inches wide with capacities of several thousand bpd or less, Zollinger said. The Basin Pipeline, a major pipeline running 300,000 bpd, run by a consortium of other oil companies, was closed today. One other small pipeline that Total also closed has a capacity of 3,000 to 4,000 bpd and crosses the Red River in Fargo, Texas, Zollinger said. He said the closed pipelines run under river water and could be damaged as the flooded rivers erode the river banks and expose the piping. Zollinger said Total is waiting for the river waters to recede before they reactivate the pipelines. Reuter 1-JUN-1987 16:43:14.79 canada E F f2454reute u f BC-B.C.-WORKERS-STAGE-ON 06-01 0095 B.C. WORKERS STAGE ONE-DAY GENERAL STRIKE VANCOUVER, June 1 – Thousands of British Columbian unionized workers staged a one-day general strike to protest proposed new provincial labor legislation. Ferry service was halted, there was no garbage collection, government offices were closed and some medical services were restricted. Postal workers, although covered by federal laws, refused to cross picket lines. In Vancouver, transit workers also joined in the protest and no buses operated. Management, however, kept the city’s SkyTrain service in operation. Reuter 1-JUN-1987 16:43:55.74 F f2457reute f f BC-******GM-MAY-N.-AMERI 06-01 0013 ******GM MAY N. AMERICAN CAR OUTPUT 328,221, OFF 26.3 PCT FROM 445,440 LAST YEAR Blah blah blah. 1-JUN-1987 16:44:05.56 crude usa Y f2458reute r f BC-DOE-REACHES-PROPOSED 06-01 0106 DOE REACHES PROPOSED OIL SETTLEMENTS WASHINGTON, June 1 – The Energy Department said it reached proposed oil pricing settlements totaling 680,150 dlrs with the operator and four working interest owners of A.D. LeBlanc No. 1 well, Vermillion Parish, La. Trigon Exploration Co., Inc operated the well from June 1979 to January 1981 for D. Bryan Ferguson, C. William Rogers, Omni Drilling Partnership No 1978-2 and Entex Inc. DOE alleged Trigon caused overcharges of 624,208 dlrs by improperly classifying its oil as “newly discovered crude,” a classification that allowed charging higher prices during a period of price controls. It said the proposed settlements would resolve disputes over possible violations by the five parties. DOE added that in agreeing to the settlements, the five did not admit any violations or non-compliance with its regulations. It said it would receive written comments on the settlements before making it final. reuter 1-JUN-1987 16:44:33.61 usa cme C G L M T f2460reute r f BC-CME-PROPOSES-NIKKEI-S 06-01 0110 CME PROPOSES NIKKEI STOCK AVERAGE FUTURES WASHINGTON, June 1 – The Chicago Mercantile Exchange (CME) has proposed a futures contract based on the Nikkei Stock Average, a price-weighted index of 225 stocks on the Tokyo Stock Exchange, federal regulators said. The Commodity Futures Trading Commission (CFTC) said CME’s proposed contract is designed to be used as a hedging tool for dealers and investors in Japanese equities. The contract’s unit of trading would be 500 Japanese yen times the Nikkei index, CFTC said. The minimum price fluctuation would be 2,500 yen, with no daily price limits. Public comment on the proposal is due by July 28. Reuter 1-JUN-1987 16:44:54.78 usa A RM F f2461reute b f BC-MOODY’S-REVIEWS-HOSPI 06-01 0116 MOODY’S REVIEWS HOSPITAL CORP DEBT NEW YORK, June 1 – Moody’s Investors Service Inc said it put Hospital Corp of America’s nearly three billion dlrs of long-term debt under review with uncertain direction. Under review are the A-2 senior debt, A-3 convertible subordinated debt and Prime-2 commercial paper ratings. Moody’s cited the firm’s planned sale of 104 U.S.-based hospitals to an employee stock ownership plan. The cost would be 1.8 billion dlrs in cash plus preferred stock and warrants. Moody’s expects favorable credit implications if the sale includes low-profit hospitals. Reducing Hospital’s financial leverage will be needed to maintain credit quality, it said. Reuter 1-JUN-1987 16:46:21.32 F f2465reute f f BC-******CHRYSLER-MAY-N. 06-01 0014 ******CHRYSLER MAY N. AMERICAN CAR OUTPUT 94,715, OFF 12.8 PCT FROM 108,595 LAST YEAR Blah blah blah. 1-JUN-1987 16:54:59.14 usa cme F f2496reute r f BC-CME-PROPOSES-NIKKEI-S 06-01 0110 CME PROPOSES NIKKEI STOCK AVERAGE FUTURES WASHINGTON, June 1 – The Chicago Mercantile Exchange (CME) has proposed a futures contract based on the Nikkei Stock Average, a price-weighted index of 225 stocks on the Tokyo Stock Exchange, federal regulators said. The Commodity Futures Trading Commission (CFTC) said CME’s proposed contract is designed to be used as a hedging tool for dealers and investors in Japanese equities. The contract’s unit of trading would be 500 Japanese yen times the Nikkei index, CFTC said. The minimum price fluctuation would be 2,500 yen, with no daily price limits. Public comment on the proposal is due by July 28. Reuter 1-JUN-1987 16:55:52.54 usa imf A RM f2501reute u f BC-GERHARD-LASKE-APPOINT 06-01 0068 GERHARD LASKE APPOINTED TREASURER OF IMF WASHINGTON, June 1 – Gerhard Laske, a national of West Germany, has been appointed treasurer of the International Monetary Fund, succeeding Walter Habermeier, who took early retirement, the agency said. Laske, 59, held a senior position at the Bundesbank in the Department for International Organizations. Prior to that, he was executive director for Germany. REUTER 1-JUN-1987 16:56:00.71 acq usa F f2502reute r f BC-FIRST-OF-AMERICA-(FAB 06-01 0073 FIRST OF AMERICA (FABK.O) ACQUIRES KEYSTONE KALAMAZOO, Mich, June 1 – First of America Bank Corp said it acquired (Keystone Bancshares Inc) for 25 mln dlrs. Keystone shareholders will receive 45 dlrs per Keystone share, payable in First of America convertible preferred stock having a dividend rate of nine pct. Keystone has two affiliates with combined assets of 205 mln dlrs. First of America has 7.9 billion dlrs in assets. Reuter 1-JUN-1987 16:57:01.23 hog usacanada C G f2504reute u f BC-NPPC-APPEAL-ON-CANADI 06-01 0106 NPPC APPEAL ON CANADIAN PORK DISMISSED Chicago, June 1 – The U.S. Court of International Trade has upheld the International Trade Commission’s refusal to extend countervailing duties on Canadian hogs to include pork products, the National Pork Producers’ Council said. The court’s ruling came in an appeal to the Trade Commission’s decision filed by the Pork Producers’ Council. Council president Tom Miller said he was disappointed by the court ruling and said the council will accelerate activities in support of an amendment to the 1930 Tariff Act that would address the objections outlined in the Trade Commission’s ruling. The Commission had said there was insufficient economic integration between the pork production industry and the pork packing industry to justify extending the duty on live hogs to fresh, chilled or frozen pork. The legislation has already passed the House of Representatives and recently passed the Senate Finance Committee. It is expected to be considered by the full Senate by the end of the summer. An appeal by the Canadian Pork Council that the current countervailing duty on Canadian hogs entering the U.S. be lifted is pending before the Court. Reuter 1-JUN-1987 16:57:21.75 F f2506reute b f BC-******FORD-MAY-N.-AME 06-01 0012 ******FORD MAY N. AMERICAN CAR PRODUCTION 213,790, UP 2.2 PCT FROM 209,109 Blah blah blah. 1-JUN-1987 16:58:13.86 acq usa F f2513reute r f BC-FLUOROCARBON- 06-01 0067 FLUOROCARBON COMPLETES ACQUISITION LAGUNA NIGEL, Calif., June 1 – Fluorocarbon Co said it completed the acquisition of Eaton Corp’s industrial polymer division. The company said it paid about 70 mln dlrs in cash for the division, which will be renamed Samuel Moore Group. Fluorocarbon also said the division should boost annual sales to 165 mln dlrs from last year’s 98 mln dlrs. Reuter 1-JUN-1987 16:58:17.70 usa F f2514reute r f BC-SUPERMARKETS--RE 06-01 0039 SUPERMARKETS REDEEMS PURCHASE RIGHTS CARTERET, N.J., June 1 – Supermarkets General Corp said it redeemed its preferred stock purchase rights on May 29 and will pay five cts a right in the near future to holders of record May 29. Reuter 1-JUN-1987 16:58:51.31 acqhog usa F f2515reute r f BC-DEKALB--SELL 06-01 0075 DEKALB SELLS HEINOLD HOG MARKET DEKALB, Ill., June 1 – Dekalb Corp said it sold its Heinold Hog Market Inc to the unit’s employees through an Employee Stock Ownership Plan (ESOP). Terms were not disclosed, but president Bruce Bickner said the sale will have a positive, but not substantial, impact on DeKalb as a whole. The company said the hog marketing unit did not fit with its strategy of investing in its core businesses. Reuter 1-JUN-1987 17:04:24.17 usa F f2537reute b f BC-CHRYSLER--MAY-CAR 06-01 0041 CHRYSLER MAY CAR OUTPUT FALLS DETROIT, June 1 – Chrysler Corp said its May North American car production fell 12.8 pct to 94,715 from 108,595 a year ago. Chrysler said its May truck production rose 32 pct to 61,151 from 46,332 last year. Reuter 1-JUN-1987 17:05:31.57 iron-steel usa F f2543reute u f BC-LTV--TO-NEGOTIA 06-01 0099 LTV TO NEGOTIATE WITH STEELWORKERS CLEVELAND, June 1 – LTV Corp’s LTV Steel Corp said it agreed to resume negotiations with the United Steelworkers of America at the local plant levels, to discuss those provisions of its proposal that require local implementation. The local steelworker union narrowly rejected a tentative agreement with the company on May 14, it said. LTV also said it agreed to reopen its offer contained in the tentative agreement reached with the union’s negotiating committee as part of a plan to resolve problems through local discussions. Reuter 1-JUN-1987 17:06:35.43 usa A RM F f2547reute b f BC-MOODY’S-AFFIRMS-MIDDL 06-01 0104 MOODY’S AFFIRMS MIDDLE SOUTH AND UNITS NEW YORK, June 1 – Moody’s Investors Service Inc said it affirmed about four billion dlrs of long-term debt of Middle South Utilities and nearly all of its units. Moody’s cited the U.S. Supreme Court’s stay of an adverse Misssissippi Supreme Court ruling for a Middle South unit, Mississippi Power and Light Co. The approval of the stay may enhance Mississippi Power’s prospects for a favorable judgment, Moody’s added. But Moody’s said it will watch the situation closely because the stay depends on a bond posting that is satisfactory to the Mississippi Supreme Court. On May 26, the Mississippi Public Service Commission ordered Mississippi Power to stop collecting about 12 mln dlrs in monthly revenues from its Grand Gulf power plant, Moody’s pointed out. The Commission also wants Mississippi Power to submit a plan for refunding 190 mln dlrs of previously collected funds, Moody’s said. The first mortgage bonds and secured pollution control bonds of Mississippi Power, Arkansas Power and Louisiana Power and Light Co were affirmed at Baa-1. Their preferred stock was affirmed at Baa-2. In addition, Moody’s affirmed Mississippi Power’s Baa-2 unsecured pollution control debt. Reuter 1-JUN-1987 17:07:47.73 usa F f2554reute u f BC-GM--MAY-CAR-OUTPU 06-01 0051 GM MAY CAR OUTPUT FALLS 26.3 PCT DETROIT, June 1 – General Motors Corp said its May North American car production fell 26.3 pct to 328,221 units from 445,440 a year ago. The company said its May production of commercial vehicles (trucks and buses) rose 5.1 pct to 158,444 from 150,752 a year ago. Reuter 1-JUN-1987 17:08:09.23 usa F f2556reute u f BC-FORD--MAY-CAR-OUTP 06-01 0043 FORD MAY CAR OUTPUT UP 2.2 PCT DETROIT, June 1 – Ford Motor Co said its May North American car production rose 2.2 pct to 213,790 from 209,109 last year. The company said its May truck production eased 4.7 pct to 140,696 from 147,638 a year ago. Reuter 1-JUN-1987 17:10:30.97 usa F f2564reute r f BC-WESTPORT-BANK- 06-01 0097 WESTPORT BANK SETS 2-FOR-1 SPLIT WESTPORT, Conn., June 1 – Westport Bank Corp Inc aid its board has declared a 2-for-1 stock split of Westport’s common and an increase in its quarterly cash dividend. The company said the split will be effective in the form of a 100 pct stock dividend on Westport’s outstanding common with a distribution date of July six to shareholders of record on June 12. The company said the pre-split quarterly cash dividend is 26 cts per share, up from 25 cts the previous year, to paid on July one to shareholders of record on June 12. Westport Bank said a quarterly dividend of 13 cts a share will be paid on shares outstanding after the 2-for-1 split. Reuter 1-JUN-1987 17:10:48.84 earn usa F f2567reute d f BC-CHARTER-POWER-SYSTEMS 06-01 0031 CHARTER POWER SYSTEMS INC 1ST QTR PLYMOUTH MEETING, Pa, June 1 – Shr 11 cts vs 21 cts Net 563,000 vs 863,00 Revs 28.8 mln vs 32.5 mln Avg shrs 5.0 mln vs 3.3 mln Reuter 1-JUN-1987 17:10:54.09 acq usa F f2568reute d f BC-FINANCIAL-SECURITY- TO BE ACQUIRED DELRAY BEACH, Fla, June 1 – Financial Security Savings and Loan Association said it signed a letter of intent for a controlling interest to be acquired by an investor group led by South Florida developer William Landa. Terms were not disclosed. Reuter 1-JUN-1987 17:11:06.64 usa F f2569reute d f BC-E-SYSTEMS--SEES 06-01 0065 E-SYSTEMS SEES REDUCED SECOND QUARTER DALLAS, June 1 – E-Systems said it expects earnings for the second quarter will likely be below prior expectations due to a reduction in investment income and higher than expected costs on several power amplifier programs. The company said it does not expect to match the 52 cts a share net income reported for the second quarter last year. Reuter 1-JUN-1987 17:12:27.93 acq usa F f2571reute b f BC-BURLINGTON 06-01 0112 EDELMAN GROUP CUTS BURLINGTON STAKE WASHINGTON, June 1 – New York investor Asher Edelman and Dominion Textile Inc , who are currently seeking to acquire Burlington Industries Inc in a hostile tender offer, said they lowered their stake in the company. In a filing with the Secruties and Exchange Commission, the Edelman/Dominion group, known as Samjens Acqusition Corp, said it sold options to buy 258,800 Burlington common shares, reducing its stake in the company to 3,408,813 shares, or 12.33 pct, from 3,667,313 shares, or 13.3 pct. The group said the sale, which represented all the Burlington options it owned, was made May 28 for 8.7 mln dlrs. The Edelman/Dominion group last week sweetened its hostile tender offer to 77 dlrs a share, after Burlington agreed to a leveraged buyout by a Morgan Stanley and Co-backed group for 76 dlrs a share. But the Edelman/Dominion group, which has litigation pending against Burlington, also said it has held talks with Morgan Stanley about “the possibility of settlement of outstanding matters among” it, Morgan Stanley and Burlington. Reuter 1-JUN-1987 17:12:43.34 usa M f2572reute d f BC-GM-MAY-CAR-OUTPUT-FAL 06-01 0050 GM MAY CAR OUTPUT FALLS 26.3 PCT DETROIT, June 1 – General Motors Corp said its May North American car production fell 26.3 pct to 328,221 units from 445,440 a year ago. The company said its May production of commercial vehicles (trucks and buses) rose 5.1 pct to 158,444 from 150,752 a year ago. Reuter 1-JUN-1987 17:13:31.62 acq usa F E f2575reute u f BC-CRAZY-1STLD WRITETHROUGH 06-01 0093 ENTERTAINMENT MARKETING TOPS CRAZY EDDIE OFFER By Michael Connor, Reuters NEW YORK, June 1 – A quickly growing Texas-based distributor of electronics products offered 240 mln dlrs for Crazy Eddie Inc , the leading New York City electronics retailer, or one dlr per share more than its founder has bid. The 8-dlr-a-share offer by Entertainment Marketing Inc for Crazy Eddie comes less than two weeks after founder Eddie Antar and a firm controlled by the Belzbergs of Canada announced a bid to take the 32-store Crazy Eddie chain private. Analysts said Entertainment Marketing, whose revenues and profits quadrupled in 1986, may be looking to break into the highly competitive New York City retail market for consumer electronics, the nation’s biggest, at a time the fortunes of electronics retailers have sagged. The analysts questioned whether Houston-based Entertainment Marketing, founded by a former electronics retailer but whose present buinesses are primarily as wholesale distributors, had the management expertise for retailing or was merely trying to drive up the price of the Crazy Eddie shares it already owns. “I have mixed feelings,” said analyst Dennis Telzrow of Eppler, Geurin and Turner, a Dallas brokerage. “On the one hand it’s probably a cheap price. On the other hand, does Entertainment Marketing have the management talent to run it and will the Crazy Eddie people leave?” “It’s a risky strategy for Entertainment Marketing,” said analyst Eliot Laurence of Wessels Arnold and Henderson, a Minneapolis brokerage. “Electronics retailing is very management concentrated; they’d want to keep Crazy Eddie’s management in place.” Laurence said that, since Entertainment Marketing already owns 4.3 percent of Crazy Eddie’s 31.3 million shares, it may be trying to get the Antar-Belzberg group to increase its 7-dlr-a-share offer. Shares of Crazy Eddie, which have jumped from the high 4-dlr range to above 7 dlrs since the Antar-Belzberg bid was announced May 20, rose another 50 cents Monday to 8.375 a share in over-the- counter trading. Antar, the reclusive founder of the chain in the New York City, Philadelphia and Connecticut areas, said last month that his group controlled 14 percent of Crazy Eddie’s shares. A Crazy Eddie spokesman said the company’s board has taken no decision on the Antar-Belzberg offer, worth some 187 mln dlrs since they own more shares than Entertainment Marketing. He would not comment on the new offer. Entertainment Marketing sells computer products such as disk drives and other, often discounted electronics goods to retailers, primarily in the southwest, and directly to consumers by cable television. In fiscal 1986, ending last January, its revenues rose to 87.9 mln dlrs from 21.3 mln dlrs the previous year. Net profit went to 3.2 mln dlrs from 750,000 dlrs in 1985. Entertainment Marketing, whose chief executive officer, Elias Zinn, once ran an electronics retailing business, said in a statement it had committed 50 mln dlrs toward the purchase of Crazy Eddie and had retained Dean Witter Reynolds Inc to assist in financing the balance. Analyst Telzerow estimated that the company would have to borrow about 100 mln dlrs to complete the proposed buyout since Crazy Eddie has cash and other assets worth about the same amount. Shares of Entertainment Marketing were up 12.5 cents Monday to 9.50. Reuter 1-JUN-1987 17:14:38.47 V RM f2581reute f f BC-******SECURITY-PACIFI 06-01 0012 ******SECURITY PACIFIC TO ADD 500 MLN DLRS TO RESERVE FOR CREDIT LOSSES Blah blah blah. 1-JUN-1987 17:17:47.95 usa F f2593reute r f BC-PENTAGON-AWARDS-176.7 06-01 0104 PENTAGON AWARDS 176.7 MLN DLRS IN CONTRACTS WASHINGTON, June 1 – The U.S. Defense Department said it has awarded contracts totaling 176.7 mln dlrs to Grumman Aerospace Corp , GEC Avionics Ltd, General Dynamics Corp and Refinery Associates. The Pentagon said it has awarded Grumman Aerospace Corp a 50.9 mln dlr addition to an existing contract for 18 F-14A Tomcat fighter aircraft. It also said it has awarded General Dynamics Corp 50.1 mln dlrs for three contracts. General Dynamics Fort Worth Division was awarded a 41.3 mln dlrs in increase to existing contracts for foreign military sales of the F-16. General Dynamics Corp’s Electric Boat Division has been awarded an 8.8 mln dlr contract to provide logistics and training support requirements for the Trident Refit facility, the Defense Department said. GEC Avionics Limited of Rochester, England, has been awarded a 35.4 mln dlr increase to an existing contract for 564 air data computer kits and 920 mounting hardware kits for aircraft, the department said. Refinery Associates Inc has been awarded 40.3 mln dlr contract for 93.2 mln gallons of various fuel oils, it said. Reuter 1-JUN-1987 17:19:13.58 V RM f2598reute f f BC-******SECURITY-PACIFI 06-01 0013 ******SECURITY PACIFIC EXPECTS 175 MLN DLR LOSS IN QTR AS RESULT OF LOSS PROVISION Blah blah blah. 1-JUN-1987 17:22:37.09 usa F f2603reute r f BC-HOME--SAYS-IT-IS 06-01 0103 HOME SAYS IT IS NOT AFFECTED BY RULING NEW YORK, June 1 – The Home Insurance Co, a unit of the Home Group Inc, said it is not affected by a May 29 California court ruling that says 20 insurance companies must bear the costs of asbestos-injury claims. The company said it had reached a settlement agreement with five former asbestos manufacturers that it had insured, prior to the Superior Court ruling that said insurers, and not asbestos makers, would have to pay the claims from the thousands of victims of asbestos-related illnesses. Home Insurance did not disclose the terms of the settlement. Home Insurance said it had provided excess coverage to Manville Corp , Armstrong World Industries , , GAF Corp and . Home Insurance said it had been negotiating for the past two years to reach a settlement with the five former asbestos manufacturers to establish the amount of coverage that Home Insurance would provide in the claims. The company said the settlement does not impact current or future earnings of the Home Insurance or its parent, Home Group, and that it will no longer offer insurance for asbestos-related incidents. Reuter 1-JUN-1987 17:23:41.22 lebanon V RM Y f2605reute b f BC-GEMAYEL-NAMES-ACTING 06-01 0100 GEMAYEL NAMES ACTING PREMIER BEIRUT, June 1 – President Amin Gemayel named Sunni Moslem Education Minister Selim Hoss as acting prime minister following the assassination of Premier Rashid Karami, a presidential palace statement said. “After consultations by President Amin Gemayel with political and religious leaders the president decided to name Selim Hoss as acting prime minister,” said the statement broadcast on local radio stations. Moslem leaders proposed Hoss, a former premier, as acting prime minister after Karami died of injuries from a bomb that exploded aboard his helicopter. Reuter 1-JUN-1987 17:30:50.21 F A RM f2619reute f f BC-******S/P-AFFIRMS-RAT 06-01 0007 ******S/P AFFIRMS RATINGS ON SECURITY PACIFIC Blah blah blah. 1-JUN-1987 17:37:27.21 usa F RM A f2637reute b f BC-SECURITY-PACIFIC- ADDS 500 MLN TO RESERVE LOS ANGELES, June 1 – Security Pacific Corp said it intends to add 500 mln dlrs to its provision for credit losses during the second quarter, a move that will result in a loss for the period of about 175 mln dlrs. The company added, however, that it now expects to post a profit for the full year of about 150 mln dlrs. Security Pacific said the reserve is specifically related to its loans to the developing world. Security Pacific, which has assets of about 64 billion dlrs, reported 1986 net income of 385.9 mln dlrs. Last year it posted second quarter net income of 93.5 mln. In making the announcement, Security Pacific said the extra 500 mln dlrs will raise its reserve for credit losses to about 1.3 billion dlrs, or 2.8 pct of total loans and leases outstanding. It said the amount of reserves allocated to Lesser Developed Country (LDC) debt represents about one-third of the company’s total LDC debt portfolio. A spokesman said the company currently has LDC debt exposure of about 1.8 billion dlrs. The company’s total loan portfolio at March 31 stood at 44.4 billion dlrs. The Security Pacific move follows similar provisions by several other money center banks. Last month Citicorp led the move by annoucing a three billion dlr addition to its reserve to help bolster its protection against uncertainties in the economic world. Chase Manhattan Corp followed with a 1.6 billion dlr addition to its credit loss reserve. “While our LDC debt exposure is relatively small, we think that the LDC debt environment has been altered significantly given the recent actions of other major financial institutions,” Security Pacific chairman Richard Flamson said in a statement. Following its 500 mln dlr addition to the credit loss reserve, its primary capital ratio at the end of the second quarter will be about 7.4 pct, Security Pacific said. The company further stated that it anticipates continuing its current dividend payment at an annual rate of 1.80 dlrs per share. The company also stressed that it is not writing off loans to the developing world but rather, adding to its reserves will allow greater flexibility when dealing with these credits in the future. Security Pacific also said it intends to play a continuing role in meeting the needs of those countries. Security Pacific is the nation’s sixth largest bank holding company. Reuter 1-JUN-1987 17:38:20.01 acq usa F f2638reute h f BC-FIRST-UNION- 06-01 0039 FIRST UNION COMPLETES ACQUISITIONS JACKSONVILLE, Fla., June 1 – First Union Corp said it completed the acquisition of two Florida-based banks, North Port Bank, based in North Port, and City Commerical Bank, based in Sarasota. Reuter 1-JUN-1987 17:38:45.35 earn usa F f2639reute h f BC-CROP-GENETICS-INTERNA 06-01 0051 CROP GENETICS INTERNATIONAL 4TH QTR HANOVER, Md., June 1 – 4th qtr ended March 31. Shr loss 24 cts vs loss 19 cts Net loss 751,900 vs loss 569,000 Revs 497,500 vs 811,400 Year Shr loss 1.13 dlrs vs loss 70 cts Net loss 3,472,700 vs 1,990,300 Revs 2,484,100 vs 2,498,300 Reuter 1-JUN-1987 17:46:32.84 acq usa F f2658reute r f BC-INVESTORS-MAY-TAKE-CO 06-01 0102 INVESTORS MAY TAKE COMPUTERLAND PUBLIC BY LAWRENCE EDELMAN, REUTERS NEW YORK, June 1 – The investor group that has agreed to buy will likely take the leading personal computer retailer public or sell it to other investors, industry analysts said. “Now’s a good time,” said Joe Levy of International Data Corp. “The personal computer industry has bottomed out and is on the way up again,” he said. Earlier today, closely held Computerland, the largest PC retailing chain in the country, said it agreed to be bought by an investor group led by E.M. Warburg Pincus and Co, New York. Neither Computerland, which is 96 pct owned by its founder, William H. Millard, nor E.M. Warburg, a money management and venture capital firm, would disclose the value of the transaction. Analysts estimated that Computerland, whose 800 stores generated 1.4 billion dlrs in sales last year, would fetch 150 mln dlrs to 250 mln dlrs. Computerland franchise owners pay royalties averaging 5.9 pct to the parent company. Officials for E.M. Warburg referred all questions to Computerland. Computerland officials could not immediately be reached for comment. E.M. Warburg currently manages 1.5 billion dlrs in venture capital funds, and its past investments have included Mattel Inc and the Ingersoll newspaper chain. It is also a money manager, with 3.5 billion dlrs under management. Although the PC retailers are benefitting from the strong upturn in PC sales, analysts said Computerland must make key changes if it is to fend off advances from rivals like Businessland Inc and Tandy Corp’s Radio Shack stores. “The name of the game now is outbound sales forces, customer service and customer support,” said Levy of International Data. Relations between Computerland and its franchise owners have mellowed recently after Millard was forced to give up managment control of the company in 1985. Ed Faber, who took over as chairman and chief executive officer, revamped the company’s royalty plan, which help quell much of the franchisee dissent. Reuter 1-JUN-1987 17:50:09.24 usa F A RM f2662reute b f BC-S/P-AFFIRMS-RATINGS-O 06-01 0109 S/P AFFIRMS RATINGS ON SECURITY PACIFIC NEW YORK, June 1 – Standard and Poor’s Corp said it affirmed Security Pacific Corp’s 4.5 billion dlrs of debt. S and P said that although the bank’s decision today to increase its reserve against developing country debt by 500 mln dlrs will result in a loss in the second quarter, the firm still expects to report a profit for the year. Affirmed were Security Pacific’s AA senior debt, AA-minus subordinated debt and preferred stock and A-1-plus commercial paper. Also, uninsured certificates of deposit of Security Pacific National Bank and Arizona Bank of Phoenix were affirmed at AA/A-1-plus. Reuter 1-JUN-1987 17:53:42.91 usa F f2668reute r f BC-DIGITAL-COMMUNICATION 06-01 0063 DIGITAL COMMUNICATIONS INTRODUCES ITEMS ALPHARETTA, Ga., June 1 – Digital Communications Associates Inc said it introduced four new personal computer communications products, including equipment designed for the recently anounced International Business Machines Corp personal system/2, and Apple Computer Inc’s ‘s Macintosh II and Macintosh SE computers. Reuter 1-JUN-1987 17:54:13.74 usa F f2670reute r f BC-UNITED-PARK--HAS 06-01 0080 UNITED PARK HAS FULL SUBSCRIPTION SALT LAKE CITY, June 1 – United Park City Mines Co said it had a full and complete subscription to all of the 5,400,731 shares ot its common stock offered in connection with its recent rights offering. It said it will issue 4,892,153 shares of its common under the basic subscription right and 508,578 shares of its common under the oversubscription privilege. It said it will also receive 2.7 mln dlrs in proceeds from the offering. Reuter 1-JUN-1987 17:54:25.08 acq usa F f2671reute d f BC-LADD--UNIT-CO 06-01 0044 LADD UNIT COMPLETES ACQUISITION HICKORY, N.C, June 1 – Ladd Furniture Inc’s Clayton-Marcus Furniture subsidiary said it completed the previously announced purchase of privately-held Colony House Furniture Inc for an undisclosed amount of cash and notes. Reuter 1-JUN-1987 17:54:51.10 usa F f2672reute d f BC-HYCOR-BIO--FO 06-01 0078 HYCOR BIO FORMS UNIT TO SELL PRODUCT FOUNTAIN VALLEY, June 1 – Hycor Biomedical Inc said it was forming a unit, Hycor Instruments Inc, to distribute a line of chemistry analyzers made by of Japan. The product, called a “clinalyzer,” is an automated blood analyzer capable of providing diagnostic and other tests for hospitals and clinics, the company said. The company also said it has discussed distributing other products made by JEOL. Reuter 1-JUN-1987 17:57:44.72 canada E F f2677reute u f BC-GENERAL-MOTORS-(GM)-C 06-01 0101 GENERAL MOTORS (GM) CANADA TO CLOSE TRUCK CENTRE MONTREAL, June 1 – General Motors of Canada Ltd said it will close its Montreal truck centre August 31, due to low sales volume, putting most of the centre’s 131 employees out of work. “The sales volume at the centre has been insufficient to support the operation,” the company said in a statement. “With the recently announced joint venture with Volvo to supply the heavy-duty truck market, customer requirements for the GM line of light and medium duty trucks will be better satisfied by GM dealers located throughout Quebec,” the company said. General Motors Canada said it will provide 52 weeks of layoff benefits for most employees and up to 104 weeks for some senior employees. Reuter 1-JUN-1987 17:59:06.72 canada E F f2680reute r f BC-INTL-THOMSON- 06-01 0102 INTL THOMSON PLANS PREFERRED ISSUE TORONTO, June 1 – International Thomson Organization Ltd said it planned an issue in all of Canada except Quebec of two mln 1.85 dlr cumulative redeemable retractable series one preferred shares. It said that underwriters McLeod Young Weir Ltd and Wood Gundy Inc agreed to acquire the issue at 25.568 dlrs a share, with yield to retraction on October 15, 1991 of 7-1/8 pct a year. The company said it also agreed to sell to the two underwriters two mln 1.84375 dlr series four cumulative redeemable retractable preferred shares, which will be resold privately. Reuter 1-JUN-1987 18:10:23.46 acq usaswitzerland F f2694reute r f BC-CIS--AGREES 06-01 0062 CIS AGREES TO SECOND EXTENSION TULSA, Okla., June 1 – CIS Technologies Inc said that it and the Swiss Reinsurance Co of Zurich, Switzerland agreed to a second extension of two dates for the final part of their share purchase agreement. It said the June one election date has been extended to June 15 and the June 30 closing date has been changed to July 31. Reuter 1-JUN-1987 18:16:32.31 usa A RM f2698reute r f BC-ELSINORE--MAKES 06-01 0071 ELSINORE MAKES DEPOSIT TO COVER BONDS NEW YORK, June 1 – Elsinore Corp said it deposited five mln dlrs to cover accrued and unpaid interest through June 30 of the 15-1/2 pct senior mortgage bonds of 1999 of its unit Elsinore Finance Corp. Elsinore has guaranteed the payment of its unit’s bonds. The parent deposited the five mln dlrs with Elsinore Finance’s trustee, Manufacturers Hanover Trust Co, it said. Reuter 1-JUN-1987 18:16:43.90 usa F f2699reute r f BC-ARIZONA-NUCLEAR-PLANT 06-01 0089 ARIZONA NUCLEAR PLANT RESTARTED AFTER SHUTDOWN WINTERSBURG, Ariz., June 1 – The Palo Verde Unit 1 nuclear power plant returned to service today following an automatic shutdown early Saturday morning, the Arizona Nuclear Power Project said. The shutdown came during a weekly test of feedwater pumps leading to the steam generators on the non-nuclear side of the plant, a Power Project spokesman said. A defective electrical relay caused a feedwater pump to stop operating, leading to an automatic shutdown of the plant, he said. Palo Verde Unit 1 was restarted Sunday following repairs and surveillance testing. Unit 1 was operating at 40 pct power Monday and is expected to return to full power, about 1300 megawatts, Tuesday, the spokesman said. Palo Verde Unit 2 continues to operate at full power, generating 1347 gross megawatts, he said. The Arizona Nuclear Power Project is a consortium including AZP Group’s Arizona Public Service, El Paso Electric , Public Service of New Mexico and Southern California Edison . Reuter 1-JUN-1987 18:18:22.90 acq usa F f2701reute r f BC-WASTE-MANAGEMENT- BOARD OKAYS MODULAIRE BUY OAK BROOK, Ill., June 1 – Waste Management Inc said its directors approved a May 10 accord with Modulaire Industries under which Waste Management would acquire Modulaire. Under the agreement, Modulaire stockholders would receive 16 dlrs in Waste Management stock for each Modulaire share. Modulaire has scheduled a special shareholders meeting for July 15 to vote on the merger. Waste Management said it has received proxies from holders of 49.6 pct of Modulaire’s common stock that could be voted in favor of the merger. The Hart-Scott-Roding waiting period on the takeover will expire June 17. Reuter 1-JUN-1987 18:23:07.89 usa V f2705reute b f BC-SECURITY-PACIFIC- ADDS 500 MLN TO RESERVE LOS ANGELES, June 1 – Security Pacific Corp said it intends to add 500 mln dlrs to its provision for credit losses during the second quarter, a move that will result in a loss for the period of about 175 mln dlrs. The company added, however, that it now expects to post a profit for the full year of about 150 mln dlrs. Security Pacific said the reserve is specifically related to its loans to the developing world. Security Pacific, which has assets of about 64 billion dlrs, reported 1986 net income of 385.9 mln dlrs. Last year it posted second quarter net income of 93.5 mln. In making the announcement, Security Pacific said the extra 500 mln dlrs will raise its reserve for credit losses to about 1.3 billion dlrs, or 2.8 pct of total loans and leases outstanding. It said the amount of reserves allocated to Lesser Developed Country (LDC) debt represents about one-third of the company’s total LDC debt portfolio. Reuter 1-JUN-1987 18:28:03.70 canada E F f2711reute d f BC-CANADA SCHEDULED-WEEKLY-COLUMN 06-01 0091 BOEING RESHAPING DE HAVILLAND IN OWN IMAGE By Russ Blinch, Reuters OTTAWA, June 1 – Boeing Co is attempting to recreate money-losing de Havilland Aircraft of Canada Ltd in its own image. But it is a process that will be complex and, because the company was in worse shape than expected, time-consuming, according to de Havilland president Ron Woodard. Yet Woodard, a former Boeing executive, believes the makeover is absolutely essential to revitalize the historic company Boeing bought from the Canadian government a year ago. “These are very complex, deep problems that you don’t change overnight,” Woodard told Reuters in an interview as he outlined his vision of transforming de Havilland into a diversified manufacturer and an important cog in Boeing’s worldwide operations. “We’ve got to get our house in order. We’ve got to get lots of Boeing (sub-contract) work in here and we’ve got to get Boeing’s systems in here and just get to be part of the worldwide support system.” But based on de Havilland’s turbulent flight path in recent years, the task will also not be easy. Formed in 1928 as an offshoot of the British operation started by Geoffrey de Havilland, the company has turned out a variety of small aircraft. During World War II it produced the unique wooden Mosquito bomber for the Allied Command. In the postwar years that de Havilland became renowned internationally for its rugged bush planes. Canada’s Liberal government, interested in developing de Havilland’s STOL (Short Take Off and Landing) technology, acquired the firm in 1974 and poured 830 mln Canadian dlrs into it over a dozen years, helping to develop the 50-seat Dash 7 and 39-seat Dash 8 commuter aircraft. Amid accusations of a sellout, the pro-business Conservative government sold the company to Boeing in 1986 for 90 mln Canadian dlrs, or less than the price of one of Boeing’s 747s. Woodard believes de Havilland, which has not made a profit since 1982, suffered from neglect under government control. It was also in worse condition than anticipated, and the company has approached Ottawa for compensation for what it believes were unexpected shortcomings at the plant. “We found to our shock, to our surprise, last August we had very serious health and safety regulation violations,” said Woodard. Although he would not divulge how much is being sought, Woodard said it would be in excess of the 10 mln Canadian dlrs already spent on replacing the plant’s outmoded ventilation system. Yet Woodard is optimistic that once Boeing’s manufacturing systems are in place, the company can begin delivering planes on time and at a profit — possibly within a year and a half. “We’ve got a great product and if we can get everyone heading the same way we’re just going to eat the rest of the world,” Woodard predicted. Company officials said production of the 6-mln-U.S.-dlr Dash 8 has been doubled to four a month and they hope to reach six a month by year end. Some 63 Dash 8s are on order and there are options for the purchase of another 27. For the brand new “stretch” or extended version of the plane, 23 have been ordered and 11 are under option. Woodard said that while de Havilland has a commanding grip on the North American commuter market, which has been booming under airline deregulation, the company has only a 30 pct market share worldwide. “I’d like to see us make some overseas penetrations. There are a lot of places now where people are starting to deregulate. I think the next big, big growth area is probably Europe,” he said. De Havilland now has 5,500 employees, up from 4,300 when Boeing bought the company. All manufacturing is located at its Downsview Airport site in Toronto. Reuter 1-JUN-1987 18:30:28.08 acq usa F f2719reute u f BC-BURLINGTON--HEAR 06-01 0106 BURLINGTON HEARING TO CONTINUE TOMORROW Greensboro, N.C., June 1 – U.S. District Court Judge Eugene A. Gordon said he plans to issue a decision tomorrow on Burlington Industries Inc’s request for an injunction to stop Samjens Acquisition Corp’s takeover bid for the company. Wall Street sources have said the outcome of the case could be pivotal in determining the winner in the fierce takeover battle for Burlington, the largest u.s. textile maker. Gordon presided over six hours of argument today by lawyers for Burlington and Samjens, a partnership formed by Dominion Textile Inc and New York investor Asher Edelman. Hearings are scheduled to continue tomorrow. A preliminary injunction would hold up Samjens 2.47 billion dlr offer until the case is decided. Burlington had previously agreed to a 2.44 billion dlr buyout from Morgan Stanley Group Inc , one dlr per share lower than a sweetened 77 dlr per share bid made by Samjens last week. Burlington has not responded to the new Samjens offer. Burlington has alleged in its lawsuit that Edelman and Dominion used illegally obtained confidential information about the company in making their takeover attempt. That information, Burlington said, was provided by James Ammeen, a former Burlington executive, through PaineWebber Group Inc . Ammeen, who had worked for Burlington for 23 years, had as many as 12 divisions with 50 pct of Burlington’s sales reporting to him. When he left Burlington in November, 1985, Burlington said he signed a contract promising never to divulge inside information about the company. Burlington lawyers said shortly after he left he began working with a PaineWebber employee on a hostile plan to “takeover the company, dismember the company and displace its management,” Burlington lawyer Hubert Humphrey said. Samjens lawyers acknowledged it received information from PaineWebber, but argued the information was public information and could be obtained either from texitle industry analysts or Burlington’s public financial statements. Burlington lawyers said PaineWebber and Ammeen met with Edelman and Dominion in November and continued to meet with them until a couple of days before Edelman and Dominion went public April 24 with their intention to take over the company. Burlington lawyers claim Dominion’s board decided to attempt a takeover of Burlington after Ammeen met with the board in February. Burlington lawyers said Edelman and Dominion held discussions with PaineWebber and Ammeen about acting as financial advisers to Samjens. But they allege talks broke off because Painewebber and Ammeen could not satisfy Edelman and dominion with a written statement that they did not provide inside information. Lawyers for Samjens contended that Painewebber and Ammeen withdrew as potential advisers because Burlington chairman Frank Greenberg had called a PaineWebber executive and threatened legal action if PaineWebber got involved in an effort to takeover Burlilgnton. “The ultimate question is not the price per share or the profit, but rather the permissable standards of conduct for those who would takeover an American company,” said burlington lawyer Humphrey. Burlington lawyers also contended that Burlington, as the largest manufacturer of denim in the United States, would be in violation of anti-trust laws if it acquired Dominion, Canada’s largest textile maker. Dominion has denim manufacturing plants in Georgia, which would reduce competition in the denim market, the lawyers said. Samjens’ lawyers discounted the concern. They said the market for denim is more fragmented than Burlington contends and that Burlington has the ability to switch between light weight and heavy weight denim production as demand and price dictate. Samjens lawyers also pointed to a lawsuit filed by Burlington in Canada, in which it said it was considering a bid for Dominion. “Surely, what would have been sauce for the goose would have been sauce for the gander,” said Sidney Rosdeitcher, a Samjens lawyer. Reuter 1-JUN-1987 18:37:13.87 acq usa F f2730reute u f BC-EDELMAN-DETAILS-BURLI 06-01 0105 EDELMAN DETAILS BURLINGTON OPTIONS SALE NEW YORK, June 1 – A tender offer of Asher Edelman and Dominion Textile Ltd for Burlington Idustries Inc is not affected by the investors’ sale of options to buy Burlington stock, according to an associate of Edelman. Noting that “our tender offer is definitely in place” the aide said the investors are prohibited by Securities and Exchange Commission regulations from exercising options as long as a tender offer is open. The options are due to expire at the end of June. He said the May 28 sale of options to buy 258,800 Burlington shares was thus a “non-event.” Reuter 1-JUN-1987 18:40:42.34 usa V RM f2736reute b f BC-CONFERENCE-BOARD-FIND 06-01 0109 CONFERENCE BOARD FINDS US BUSINESS CONFIDENCE UP NEW YORK, June 1 – Business leaders’ confidence in the U.S. economy has improved slightly, but many top executives express concern about prospects for the second half of this year, the Conference Board said. The board’s measure of business confidence closed at 55 in the 1987 first quarter, up from 51 in the 1986 fourth quarter. However, the Board said virtually all of the gain reflected optimism about current conditions rather than prospects for the last half of 1987. The survey covers over 1,000 chief executives and other top-level executives, representing a wide cross section of business. Reuter 1-JUN-1987 18:42:25.90 acq usa F f2737reute u f BC-CONT’L-MATERIALS- ENDS CONSIDERATION OF BID CHICAGO, June 1 – Continental Materials Corp said its directors decided not to give further consideration to “business combination” proposed by a stockholder group that holds 5.2 pct of Continental Materials stock. Continental Materials said the offer had been received from Continental Associates, a group of St. Louis businessmen. According to Continental Materials, the group said May 11 it might boost its stake in Continental Materials. But the group also said in a letter last week to the company that the group had no financing. The board “did not consider it an official offer,” a Continental Materials spokeswoman said. Reuter 1-JUN-1987 18:51:52.49 acq usa F f2746reute r f BC-AMERIBANC-,-C 06-01 0042 AMERIBANC , CARDINAL END ACQUISITION ANNANDALE, Va., June 1 – Ameribanc Investors Group and Cardinal Savings and Loan Association jointly announced that the proposed acquisition of Cardinal by Ameribanc has been terminated by mutual agreement. Reuter 1-JUN-1987 18:56:13.42 usa F f2749reute r f BC-FORMER-SANTA-FE-DIREC 06-01 0115 FORMER SANTA FE DIRECTOR SENTENCED AND FINED NEW YORK, June 1 – Darius Keaton, 63, former director of Santa Fe International Corp, was sentenced to two months in jail and fined 11,000 dlrs for trading the company’s stock on insider knowledge of its 1981 two-billion-dlr takeover. Keaton, who was sentenced in Manhattan Federal Court, pleaded guilty to wire fraud and failing to report to the Securities and Exchange Commission that he used his inside knowledge of a takeover by Kuwait Petroleum to buy shares of Santa Fe’s stock before the takeover was disclosed. Keaton must also serve 1,000 hours of community service after which he will be placed on probation for five years. Reuter 1-JUN-1987 19:03:07.95 usa F f2758reute r f BC-PRESIDENTIAL- 06-01 0099 PRESIDENTIAL APRIL LOAD FACTOR DROPS WASHINGTON, June 1 – Presidential Airways Inc said its load factor for April was 43.8 pct compared with 44.6 pct in the year-ago period. The airline also said its revenue passenger miles were 53.2 mln compared with 30.9 mln in April 1986 and available seat miles increased to 119.3 mln compared to 70.7 mln. Presidential also reported that for the first quarter it had a loss of 72 cts a share compared with a loss of 98 cts a share in the year-ago quarter. Revenues were 20.6 mln dlrs, compared with 11.8 mln dlrs in the year-ago period. Reuter 1-JUN-1987 19:20:20.95 alum venezuela M f2774reute r f BC-venezuela-obtained-30 06-01 0125 VENEZUELA GETS 300 MLN DLRS CREDIT FOR ALUMINUM CARACAS, June 1 – Venezuela has obtained more than 300 mln dlrs in financing for industrial projects and increased its lines of credit for import financing, finance minister Manuel Azpurua said. ‘We can say that we are achieving the recuperation of credit, but that cannot be done overnight,’ Azpurua said in a television interview. He said a credit agreement for 100 mln marks will be signed this week with the German state bank Kreditanstalt fur Wiederaufbau (KFW), to finance an expansion of the state aluminum company Venalum. The credit will be divided into two separate agreements, one for 85 mln marks with an interest rate of 6.13 pct, and another for 15 mln marks, at 6.20 pct. Azpurua said financing has also been obtained for expansion of Alcasa, another state aluminum company, and for projects in the state steel and petrochemical industries. Yesterday, he said Venezuela obtained two new credits of 5.0 mln dlrs each for export financing, one from Credit du Nord of France and the other from Britain’s Midland Bank. The Venezuelan government has been criticised at home for failing to obtain new credits, despite its insistence on repaying foreign debt according to the terms of a rescheduling accord reached last February. Azpurua recently visited Tokyo hoping to acquire new credits for industrial expansions but clinched no agreements. Japanese officials refused to allow a new issue of Venezuelan bonds until the country regains its ‘Triple A’ credit rating. Reuter 1-JUN-1987 19:23:02.38 money-fxdlrtrade usa V RM f2776reute u f BC-/U.S.-TRADE-DATA-SEEN 06-01 0112 U.S. TRADE DATA SEEN AS KEY TO DOLLAR TREND BY HISANOBU OHSE, REUTERS NEW YORK, June 1 – The dollar’s recent signs of stability have raised hopes that its 27-month decline may be nearly over, but most currency analysts refuse to commit themselves until after the June 12 release of U.S. trade data for April. “The trade data will be a deciding factor to see if the dollar has bottomed out,” said Jim McGroarty of Discount Corp. Since February 1985, the dollar has nearly halved its value against the yen and the mark as part of an officially orchestrated campaign to make U.S. goods more competitive on world markets and redress gaping world trade imbalances. On April 27, the dollar fell to a 40-year low of 137