Blog

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