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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-