26-FEB-1987 15:01:01.79 cocoa el-salvadorusauruguay C T 
f0704reute u f BC-BAHIA-COCOA-REVIEW 02-26 0105  SALVADOR, Feb 26 - Showers continued throughout the week in the Bahia cocoa zone, alleviating the drought since early January and improving prospects for the coming temporao, although normal humidity levels have not been restored, Comissaria Smith said in its weekly review. The dry period means the temporao will be late this year. Arrivals for the week ended February 22 were 155,221 bags of 60 kilos making a cumulative total for the season of 5.93 mln against 5.81 at the same stage last year. Again it seems that cocoa delivered earlier on consignment was included in the arrivals figures. Comissaria Smith said there is still some doubt as to how much old crop cocoa is still available as harvesting has practically come to an end. With total Bahia crop estimates around 6.4 mln bags and sales standing at almost 6.2 mln there are a few hundred thousand bags still in the hands of farmers, middlemen, exporters and processors. There are doubts as to how much of this cocoa would be fit for export as shippers are now experiencing dificulties in obtaining +Bahia superior+ certificates. In view of the lower quality over recent weeks farmers have sold a good part of their cocoa held on consignment. Comissaria Smith said spot bean prices rose to 340 to 350 cruzados per arroba of 15 kilos. Bean shippers were reluctant to offer nearby shipment and only limited sales were booked for March shipment at 1,750 to 1,780 dlrs per tonne to ports to be named. New crop sales were also light and all to open ports with June/July going at 1,850 and 1,880 dlrs and at 35 and 45 dlrs under New York july, Aug/Sept at 1,870, 1,875 and 1,880 dlrs per tonne FOB. Routine sales of butter were made. March/April sold at 4,340, 4,345 and 4,350 dlrs. April/May butter went at 2.27 times New York May, June/July at 4,400 and 4,415 dlrs, Aug/Sept at 4,351 to 4,450 dlrs and at 2.27 and 2.28 times New York Sept and Oct/Dec at 4,480 dlrs and 2.27 times New York Dec, Comissaria Smith said. Destinations were the U.S., Covertible currency areas, Uruguay and open ports. Cake sales were registered at 785 to 995 dlrs for March/April, 785 dlrs for May, 753 dlrs for Aug and 0.39 times New York Dec for Oct/Dec. Buyers were the U.S., Argentina, Uruguay and convertible currency areas. Liquor sales were limited with March/April selling at 2,325 and 2,380 dlrs, June/July at 2,375 dlrs and at 1.25 times New York July, Aug/Sept at 2,400 dlrs and at 1.25 times New York Sept and Oct/Dec at 1.25 times New York Dec, Comissaria Smith said. Total Bahia sales are currently estimated at 6.13 mln bags against the 1986/87 crop and 1.06 mln bags against the 1987/88 crop. Final figures for the period to February 28 are expected to be published by the Brazilian Cocoa Trade Commission after carnival which ends midday on February 27. Reuter  26-FEB-1987 15:02:20.00 usa F Y 
f0708reute d f BC-STANDARD-OIL-<SRD>-TO 02-26 0082  CLEVELAND, Feb 26 - Standard Oil Co and BP North America Inc said they plan to form a venture to manage the money market borrowing and investment activities of both companies. BP North America is a subsidiary of British Petroleum Co Plc <BP>, which also owns a 55 pct interest in Standard Oil. The venture will be called BP/Standard Financial Trading and will be operated by Standard Oil under the oversight of a joint management committee. Reuter  26-FEB-1987 15:03:27.51 usa F A 
f0714reute d f BC-TEXAS-COMMERCE-BANCSH 02-26 0064  HOUSTON, Feb 26 - Texas Commerce Bancshares Inc's Texas Commerce Bank-Houston said it filed an application with the Comptroller of the Currency in an effort to create the largest banking network in Harris County. The bank said the network would link 31 banks having 13.5 billion dlrs in assets and 7.5 billion dlrs in deposits. Reuter  26-FEB-1987 15:07:13.72 usabrazil F 
f0725reute u f BC-TALKING-POINT/BANKAME 02-26 0105  by Janie Gabbett, Reuters LOS ANGELES, Feb 26 - BankAmerica Corp is not under pressure to act quickly on its proposed equity offering and would do well to delay it because of the stock's recent poor performance, banking analysts said. Some analysts said they have recommended BankAmerica delay its up to one-billion-dlr equity offering, which has yet to be approved by the Securities and Exchange Commission. BankAmerica stock fell this week, along with other banking issues, on the news that Brazil has suspended interest payments on a large portion of its foreign debt. The stock traded around 12, down 1/8, this afternoon, after falling to 11-1/2 earlier this week on the news. Banking analysts said that with the immediate threat of the First Interstate Bancorp <I> takeover bid gone, BankAmerica is under no pressure to sell the securities into a market that will be nervous on bank stocks in the near term. BankAmerica filed the offer on January 26. It was seen as one of the major factors leading the First Interstate withdrawing its takeover bid on February 9. A BankAmerica spokesman said SEC approval is taking longer than expected and market conditions must now be re-evaluated. "The circumstances at the time will determine what we do," said Arthur Miller, BankAmerica's Vice President for Financial Communications, when asked if BankAmerica would proceed with the offer immediately after it receives SEC approval. "I'd put it off as long as they conceivably could," said Lawrence Cohn, analyst with Merrill Lynch, Pierce, Fenner and Smith. Cohn said the longer BankAmerica waits, the longer they have to show the market an improved financial outlook. Although BankAmerica has yet to specify the types of equities it would offer, most analysts believed a convertible preferred stock would encompass at least part of it. Such an offering at a depressed stock price would mean a lower conversion price and more dilution to BankAmerica stock holders, noted Daniel Williams, analyst with Sutro Group. Several analysts said that while they believe the Brazilian debt problem will continue to hang over the banking industry through the quarter, the initial shock reaction is likely to ease over the coming weeks. Nevertheless, BankAmerica, which holds about 2.70 billion dlrs in Brazilian loans, stands to lose 15-20 mln dlrs if the interest rate is reduced on the debt, and as much as 200 mln dlrs if Brazil pays no interest for a year, said Joseph Arsenio, analyst with Birr, Wilson and Co. He noted, however, that any potential losses would not show up in the current quarter. With other major banks standing to lose even more than BankAmerica if Brazil fails to service its debt, the analysts said they expect the debt will be restructured, similar to way Mexico's debt was, minimizing losses to the creditor banks. Reuter  26-FEB-1987 15:10:44.60 grainwheatcornbarleyoatsorghum usa C G 
f0738reute u f BC-average-prices 02-26 0095  WASHINGTON, Feb 26 - The U.S. Agriculture Department reported the farmer-owned reserve national five-day average price through February 25 as follows (Dlrs/Bu-Sorghum Cwt) - Natl Loan Release Call Avge Rate-X Level Price Price Wheat 2.55 2.40 IV 4.65 -- V 4.65 -- VI 4.45 -- Corn 1.35 1.92 IV 3.15 3.15 V 3.25 -- X - 1986 Rates. Natl Loan Release Call Avge Rate-X Level Price Price Oats 1.24 0.99 V 1.65 -- Barley n.a. 1.56 IV 2.55 2.55 V 2.65 -- Sorghum 2.34 3.25-Y IV 5.36 5.36 V 5.54 -- Reserves I, II and III have matured. Level IV reflects grain entered after Oct 6, 1981 for feedgrain and after July 23, 1981 for wheat. Level V wheat/barley after 5/14/82, corn/sorghum after 7/1/82. Level VI covers wheat entered after January 19, 1984. X-1986 rates. Y-dlrs per CWT (100 lbs). n.a.-not available. Reuter  26-FEB-1987 15:14:36.41 veg-oillinseedlin-oilsoy-oilsun-oilsoybeanoilseedcornsunseedgrainsorghumwheat argentina G 
f0754reute r f BC-ARGENTINE-1986/87-GRA 02-26 0066  BUENOS AIRES, Feb 26 - Argentine grain board figures show crop registrations of grains, oilseeds and their products to February 11, in thousands of tonnes, showing those for futurE shipments month, 1986/87 total and 1985/86 total to February 12, 1986, in brackets: Bread wheat prev 1,655.8, Feb 872.0, March 164.6, total 2,692.4 (4,161.0). Maize Mar 48.0, total 48.0 (nil). Sorghum nil (nil) Oilseed export registrations were: Sunflowerseed total 15.0 (7.9) Soybean May 20.0, total 20.0 (nil) The board also detailed export registrations for subproducts, as follows, SUBPRODUCTS Wheat prev 39.9, Feb 48.7, March 13.2, Apr 10.0, total 111.8 (82.7) . Linseed prev 34.8, Feb 32.9, Mar 6.8, Apr 6.3, total 80.8 (87.4). Soybean prev 100.9, Feb 45.1, MAr nil, Apr nil, May 20.0, total 166.1 (218.5). Sunflowerseed prev 48.6, Feb 61.5, Mar 25.1, Apr 14.5, total 149.8 (145.3). Vegetable oil registrations were : Sunoil prev 37.4, Feb 107.3, Mar 24.5, Apr 3.2, May nil, Jun 10.0, total 182.4 (117.6). Linoil prev 15.9, Feb 23.6, Mar 20.4, Apr 2.0, total 61.8, (76.1). Soybean oil prev 3.7, Feb 21.1, Mar nil, Apr 2.0, May 9.0, Jun 13.0, Jul 7.0, total 55.8 (33.7). REUTER  26-FEB-1987 15:14:42.83 usa F 
f0755reute d f BC-RED-LION-INNS-FILES-P 02-26 0082  PORTLAND, Ore., Feb 26 - Red Lion Inns Limited Partnership said it filed a registration statement with the Securities and Exchange Commission covering a proposed offering of 4,790,000 units of limited partnership interests. The company said it expects the offering to be priced at 20 dlrs per unit. It said proceeds from the offering, along with a 102.5 mln dlr mortgage loan, will be used to finance its planned acquisition of 10 Red Lion hotels. Reuter  26-FEB-1987 15:15:40.12 usa F A RM 
f0758reute u f BC-USX-<X>-DEBT-DOWGRADE 02-26 0103  NEW YORK, Feb 26 - Moody's Investors Service Inc said it lowered the debt and preferred stock ratings of USX Corp and its units. About seven billion dlrs of securities is affected. Moody's said Marathon Oil Co's recent establishment of up to one billion dlrs in production payment facilities on its prolific Yates Field has significant negative implications for USX's unsecured creditors. The company appears to have positioned its steel segment for a return to profit by late 1987, Moody's added. Ratings lowered include those on USX's senior debt to BA-1 from BAA-3. Reuter  26-FEB-1987 15:17:11.20 earn usa F 
f0762reute r f BC-CHAMPION-PRODUCTS-<CH 02-26 0067  ROCHESTER, N.Y., Feb 26 - Champion Products Inc said its board of directors approved a two-for-one stock split of its common shares for shareholders of record as of April 1, 1987. The company also said its board voted to recommend to shareholders at the annual meeting April 23 an increase in the authorized capital stock from five mln to 25 mln shares. Reuter  26-FEB-1987 15:18:06.67 acq usa F 
f0767reute d f BC-COMPUTER-TERMINAL-SYS 02-26 0107  COMMACK, N.Y., Feb 26 - Computer Terminal Systems Inc said it has completed the sale of 200,000 shares of its common stock, and warrants to acquire an additional one mln shares, to <Sedio N.V.> of Lugano, Switzerland for 50,000 dlrs. The company said the warrants are exercisable for five years at a purchase price of .125 dlrs per share. Computer Terminal said Sedio also has the right to buy additional shares and increase its total holdings up to 40 pct of the Computer Terminal's outstanding common stock under certain circumstances involving change of control at the company. The company said if the conditions occur the warrants would be exercisable at a price equal to 75 pct of its common stock's market price at the time, not to exceed 1.50 dlrs per share. Computer Terminal also said it sold the technolgy rights to its Dot Matrix impact technology, including any future improvements, to <Woodco Inc> of Houston, Tex. for 200,000 dlrs. But, it said it would continue to be the exclusive worldwide licensee of the technology for Woodco. The company said the moves were part of its reorganization plan and would help pay current operation costs and ensure product delivery. Computer Terminal makes computer generated labels, forms, tags and ticket printers and terminals. Reuter  26-FEB-1987 15:18:59.34 earn usa F 
f0772reute r f BC-COBANCO-INC-<CBCO>-YE 02-26 0058  SANTA CRUZ, Calif., Feb 26 - Shr 34 cts vs 1.19 dlrs Net 807,000 vs 2,858,000 Assets 510.2 mln vs 479.7 mln Deposits 472.3 mln vs 440.3 mln Loans 299.2 mln vs 327.2 mln Note: 4th qtr not available. Year includes 1985 extraordinary gain from tax carry forward of 132,000 dlrs, or five cts per shr. Reuter  26-FEB-1987 15:19:15.45 earnacq usa F 
f0773reute u f BC-OHIO-MATTRESS-<OMT>-M 02-26 0095  CLEVELAND, Feb 26 - Ohio Mattress Co said its first quarter, ending February 28, profits may be below the 2.4 mln dlrs, or 15 cts a share, earned in the first quarter of fiscal 1986. The company said any decline would be due to expenses related to the acquisitions in the middle of the current quarter of seven licensees of Sealy Inc, as well as 82 pct of the outstanding capital stock of Sealy. Because of these acquisitions, it said, first quarter sales will be substantially higher than last year's 67.1 mln dlrs. Noting that it typically reports first quarter results in late march, said the report is likely to be issued in early April this year. It said the delay is due to administrative considerations, including conducting appraisals, in connection with the acquisitions. Reuter  26-FEB-1987 15:20:13.09 earn usa F 
f0775reute r f BC-AM-INTERNATIONAL-INC 02-26 0065  CHICAGO, Feb 26 - Oper shr loss two cts vs profit seven cts Oper shr profit 442,000 vs profit 2,986,000 Revs 291.8 mln vs 151.1 mln Avg shrs 51.7 mln vs 43.4 mln Six mths Oper shr profit nil vs profit 12 cts Oper net profit 3,376,000 vs profit 5,086,000 Revs 569.3 mln vs 298.5 mln Avg shrs 51.6 mln vs 41.1 mln NOTE: Per shr calculated after payment of preferred dividends. Results exclude credits of 2,227,000 or four cts and 4,841,000 or nine cts for 1986 qtr and six mths vs 2,285,000 or six cts and 4,104,000 or 11 cts for prior periods from operating loss carryforwards. Reuter  26-FEB-1987 15:20:27.17 earn usa F 
f0776reute u f BC-BROWN-FORMAN-INC-<BFD 02-26 0043  LOUISVILLE, Ky., Feb 26 - Shr one dlr vs 73 cts Net 12.6 mln vs 15.8 mln Revs 337.3 mln vs 315.2 mln Nine mths Shr 3.07 dlrs vs 3.08 dlrs Net 66 mln vs 66.2 mln Revs 1.59 billion vs 997.1 mln Reuter  26-FEB-1987 15:20:48.43 usa F 
f0778reute r f BC-NATIONAL-INTERGROUP<N 02-26 0047  PITTSBURGH, Feb 26 - National Intergroup Inc said it plans to file a registration statement with the securities and exchange commission for an offering of cumulative convertible preferred partnership units in Permian Partners L.P. The Permian Partners L.P. was recently formed by National Intergroup to continue to business of Permian Corp, acquired by the company in 1985. The company said Permian will continue to manage the business as a general partner, retaining a 35 pct stake in the partnership in the form of common and general partnership units. It did not say how many units would be offered or what the price would be. Reuter  26-FEB-1987 15:21:16.13 usabrazil RM 
f0781reute u f BC--ECONOMIC-SPOTLIGHT-- 02-26 0104  by Janie Gabbett, Reuters LOS ANGELES, Feb 26 - BankAmerica Corp is not under pressure to act quickly on its proposed equity offering and would do well to delay it because of the stock's recent poor performance, banking analysts said. Some analysts said they have recommended BankAmerica delay its up to one-billion-dlr equity offering, which has yet to be approved by the Securities and Exchange Commission. BankAmerica stock fell this week, along with other banking issues, on the news that Brazil has suspended interest payments on a large portion of its foreign debt. The stock traded around 12, down 1/8, this afternoon, after falling to 11-1/2 earlier this week on the news. Banking analysts said that with the immediate threat of the First Interstate Bancorp <I> takeover bid gone, BankAmerica is under no pressure to sell the securities into a market that will be nervous on bank stocks in the near term. BankAmerica filed the offer on January 26. It was seen as one of the major factors leading the First Interstate withdrawing its takeover bid on February 9. A BankAmerica spokesman said SEC approval is taking longer than expected and market conditions must now be re-evaluated. "The circumstances at the time will determine what we do," said Arthur Miller, BankAmerica's Vice President for Financial Communications, when asked if BankAmerica would proceed with the offer immediately after it receives SEC approval. "I'd put it off as long as they conceivably could," said Lawrence Cohn, analyst with Merrill Lynch, Pierce, Fenner and Smith. Cohn said the longer BankAmerica waits, the longer they have to show the market an improved financial outlook. Although BankAmerica has yet to specify the types of equities it would offer, most analysts believed a convertible preferred stock would encompass at least part of it. Such an offering at a depressed stock price would mean a lower conversion price and more dilution to BankAmerica stock holders, noted Daniel Williams, analyst with Sutro Group. Several analysts said that while they believe the Brazilian debt problem will continue to hang over the banking industry through the quarter, the initial shock reaction is likely to ease over the coming weeks. Nevertheless, BankAmerica, which holds about 2.70 billion dlrs in Brazilian loans, stands to lose 15-20 mln dlrs if the interest rate is reduced on the debt, and as much as 200 mln dlrs if Brazil pays no interest for a year, said Joseph Arsenio, analyst with Birr, Wilson and Co. He noted, however, that any potential losses would not show up in the current quarter. With other major banks standing to lose even more than BankAmerica if Brazil fails to service its debt, the analysts said they expect the debt will be restructured, similar to way Mexico's debt was, minimizing losses to the creditor banks. Reuter  26-FEB-1987 15:24:48.56 usa F 
f0789reute d f BC-NATIONAL-HEALTH-ENHAN 02-26 0076  PHOENIX, Ariz., Feb 26 - National Health Enhancement Systems Inc said it is offering a new health evaluation system to its line of fitness assessment programs. The company said the program, called The Health Test, will be available in 60 days. Customers who use the program will receive a computer-generated report and recommendations for implementing a program to improve their physical condition. Reuter  26-FEB-1987 15:26:26.78 earn usa F 
f0796reute r f BC-DEAN-FOODS-<DF>-SEES 02-26 0101  CHICAGO, Feb 26 - Dean Foods Co expects earnings for the fourth quarter ending May 30 to exceed those of the same year-ago period, Chairman Kenneth Douglas told analysts. In the fiscal 1986 fourth quarter the food processor reported earnings of 40 cts a share. Douglas also said the year's sales should exceed 1.4 billion dlrs, up from 1.27 billion dlrs the prior year. He repeated an earlier projection that third-quarter earnings "will probably be off slightly" from last year's 40 cts a share, falling in the range of 34 cts to 36 cts a share. Douglas said it was too early to project whether the anticipated fourth quarter performance would be "enough for us to exceed the prior year's overall earnings" of 1.53 dlrs a share. In 1988, Douglas said Dean should experience "a 20 pct improvement in our bottom line from effects of the tax reform act alone." President Howard Dean said in fiscal 1988 the company will derive benefits of various dairy and frozen vegetable acquisitions from Ryan Milk to the Larsen Co. Dean also said the company will benefit from its acquisition in late December of Elgin Blenders Inc, West Chicago. He said the company is a major shareholder of E.B.I. Foods Ltd, a United Kingdom blender, and has licensing arrangements in Australia, Canada, Brazil and Japan. "It provides ann entry to McDonalds Corp <MCD> we've been after for years," Douglas told analysts. Reuter  26-FEB-1987 15:26:54.12 wheatgrain yemen-arab-republicusa C G 
f0798reute u f BC-/BONUS-WHEAT-FLOUR-FO 02-26 0096  WASHINGTON, Feb 26 - The Commodity Credit Corporation, CCC, has accepted an export bonus offer to cover the sale of 37,000 long tons of wheat flour to North Yemen, the U.S. Agriculture Department said. The wheat four is for shipment March-May and the bonus awarded was 119.05 dlrs per tonnes and will be paid in the form of commodities from the CCC inventory. The bonus was awarded to the Pillsbury Company. The wheat flour purchases complete the Export Enhancement Program initiative announced in April, 1986, it said. Reuter  26-FEB-1987 15:32:03.12 usa F A 
f0804reute d f BC-CREDIT-CARD-DISCLOSUR 02-26 0111  WASHINGTON, Feb 26 - Legislation to require disclosure of credit card fees and interest rates before the cards are issued have been introduced in the Senate and House. Sen. Chris Dodd, D-Conn, a co-sponsor of the bill, said many banks and financial institutions do not disclose all the information about terms of their cards in promotional material sent to prospective customers. "By requiring card issuers to disclose the terms and conditions of their cards at the time of solicitation, the legislation is intended to arm consumers with enough information to shop around for the best deal," Dodd said in a statement. Reuter  26-FEB-1987 15:33:23.61 usa F 
f0809reute d f BC-HUGHES-CAPITAL-UNIT-S 02-26 0086  FORT LAUDERDALE, Fla., Feb 26 - Hughes/Conserdyne Corp, a unit of <Hughes Capital Corp> said it made Bear Stearns and Co Inc <BSC> its exclusive investment banker to develop and market financing for the design and installation of its micro-utility systems for municipalities. The company said these systems are self-contained electrical generating facilities using alternate power sources, such as photovoltaic cells, to replace public utility power sources. Reuter  26-FEB-1987 15:34:07.03 copper usa C M F 
f0810reute u f BC-magma-copper-price 02-26 0036  NEW YORK, Feb 26 - Magma Copper Co, a subsidiary of Newmont Mining Corp, said it is cutting its copper cathode price by 0.75 cent to 66 cents a lb, effective immediately. Reuter  26-FEB-1987 15:34:16.30 earn usa F 
f0811reute u f BC-BROWN-FORMAN-<BFDB>-S 02-26 0053  LOUISVILLE, Ky., Feb 26 - Brown-Forman Inc said its board has approved a three-for-two stock split and a 35 pct increase in the company cash dividend. The company cited its improved earnings outlook and continued strong cash flow as reasons for raising the dividend. Brown-Forman said the split of its Class A and Class B common shares would be effective March 13. The company said directors declared a quarterly cash dividend on each new share of both classes of 28 cts, payable April one to holders of record March 20. Prior to the split, the company had paid 31 cts quarterly. Brown-Forman today reported a 37 pct increase in third quarter profits to 21.6 mln dlrs, or 1.00 dlr a share, on a seven pct increase in sales to a record 337 mln dlrs. Brown-Forman said nine month profits declined a bit to 66.0 mln dlrs, or 3.07 dlrs a share, from 66.2 mln dlrs, or 3.08 dlrs a share, a year earlier due to a second quarter charge of 37 cts a share for restructuring its beverage operations. The company said lower corporate tax rates and the restructuring "are expected to substantially improve Brown-Forman's earnings and cash flow in fiscal 1988." Reuter  26-FEB-1987 15:35:16.67 earn usa F 
f0814reute h f BC-ESQUIRE-RADIO-AND-ELE 02-26 0072  NEW YORK, Feb 26 - Shr profit 15 cts vs profit four cts Annual div 72 cts vs 72 cts prior yr Net profit 72,000 vs profit 16,000 Revs 7,075,000 vs 2,330,000 12 mths Shr profit 42 cts vs loss 11 cts Net profit 203,000 vs loss 55,000 Revs 16.1 mln vs 3,971,000 NOTE: annual dividend payable April 10, 1987, to stockholders of record on March 27, 1987. Reuter  26-FEB-1987 15:35:39.38 usa F 
f0815reute h f BC-SHEARSON-LEHMAN-NAMES 02-26 0061  NEW YORK, Feb 26 - Shearson Lehman Brothers, a unit of American Express Co <AXP>, said Robert Stearns has joined the company as managing director of its merger and acquisition department. Shearson said Stearns formerly was part of Merrill Lynch Pierce, Fenner and Smith Inc's <MER> merger and acquisitions department. Reuter  26-FEB-1987 15:36:44.78 usabrazilvenezuela V RM 
f0817reute b f BC-/BANKERS-REPORT-BREAK 02-26 0092  NEW YORK, Feb 26 - Venezuela and its bank advisory committee have agreed in principle on revisions to the terms of a 21 billion dlr debt-rescheduling package signed last February, bankers said. They declined to disclose details because two or three representatives on the panel have still to obtain the approval of their senior management for the new terms. The committee was meeting in New York this afternoon and could put its final stamp of approval of the deal later today, the bankers said. "A number of details have still to be finalized, but the broad details of the new amortization schedules and interest rates are in place," one senior banker said. The interest rate on the rescheduling was originally set at 1-1/8 pct over Eurodollar rates, but Venezuela requested easier terms because of a 40 pct drop in oil income last year. It also asked for a reduction in the repayments it was due to make in 1987, 1988 and 1989 - after an earlier request that it make no amortizations at all in those years was rebuffed - and sought a commitment from the banks to finance new investment in Venezuela. The breakthrough in the Venezuelan talks, which have been going on intermittently for several months, follows the announcement earlier today of a 10.6 billion dlr debt rescheduling pact between Chile and its bank advisory panel. And last night Citibank said Mexico's financing package, including a 7.7 billion dlr loan, will be signed on March 20. While the sudden progress is to some extent coincidental, bankers acknowledge a desire to chalk up some quick successes after the shock of Brazil's unilateral interest suspension last Friday. By striking swift deals, banks hope to reduce the incentive for other debtors to emulate Brazil. Reuter  26-FEB-1987 15:36:53.42 earn usa F 
f0818reute d f BC-UNITED-PRESIDENTIAL-C 02-26 0073  KOKOMO, Ind., Feb 26 - Shr 39 cts vs 50 cts Net 1,545,160 vs 2,188,933 Revs 25.2 mln vs 19.5 mln Year Shr 1.53 dlrs vs 1.21 dlrs Net 6,635,318 vs 5,050,044 Revs 92.2 mln vs 77.4 mln NOTE: Results include adjustment of 848,600 dlrs or 20 cts shr for 1986 year and both 1985 periods from improvement in results of its universal life business than first estimated. Reuter  26-FEB-1987 15:38:26.23 usa reagan V RM 
f0823reute r f AM-REAGAN-IMPACT-(NEWS-A NALYSIS) 02-26 0092  By Michael Gelb, Reuters WASHINGTON, Feb 26 - The Tower Commission report, which says President Reagan was ignorant about much of the Iran arms deal, just about ends his prospects of regaining political dominance in Washington, political analysts said. "This is certification of incompetence," private political analyst Stephen Hess told Reuters in commenting on the Tower report made public today. "It's as if he went before a professional licensing board and was denied credentials." In one of the most direct criticisms, board chairman John Tower, a longtime Reagan supporter and former Republican senator from Texas, told a press conference, "The president clearly did not understand the nature of this operation." The report, which lent credence to widespread opinion in Washington that Reagan is not in full command of the government, was particularly damaging because it was prepared by a board of the Republican president's own choosing. The three-member panel made up of Tower, former National Security Adviser Brent Scowcroft and former Secretary of State Edmund Muskie, does not carry the partisan taint of criticism from a Congress controlled by the Democratic party. "We're falling by our own hand," said one Republican political strategist. "What can we say except 'we're sorry, we won't do it again'?" The strategist, who works for one of his party's top 1988 presidential contenders and asked not to be identified, said the report was like "an anvil falling on us." Hess, with the Brookings Institution public policy study group, said the report is the final blow to Reagan's hopes of regaining the upper hand he once had in dealings with Congress, the press and the Washington bureaucracy. The report may also undermine the standing of Defense Secretary Caspar Weinberger and Secretary of State George Shultz, who the report suggests were more interested in keeping their own skirts clean than supporting the president. "They protected the record as to their own positions on this issue. They were not energetic in attempting to protect the president from the consequences," it said. White House chief of staff Donald Regan and former Central Intelligence Agency Director William Casey also received strong criticism, but the blows were expected in their cases. Regan, expected to resign or be fired shortly, was savaged for allegedly failing both to help Reagan conduct the Iran initiative and to avoid "chaos" in the disclosure process. Casey, who underwent surgery for removal of a cancerous brain tumor in December, had already resigned for health reasons last month. "This is a story about people who came up somewhat short of being heroes," Tower told reporters. While Reagan retains considerable constitutional powers, including command of the armed forces and the right to veto legislation, analysts say it will be difficult for him to retake control of the country's policy agenda -- particularly with Congress controlled by the Democrats. The crucial remaining question, they said, is whether the man in the street will forsake Reagan over the affair. Although his job approval rating has fallen as much as twenty percentage points in some opinion polls since the arms deal with Iran became public last November, his personal popularity is still relatively high. A Los Angeles Times poll released earlier this week showed that just 37 pct of those surveyed thought Reagan was in control of the government, but 55 pct still thought he was doing a good job as president. American Enterprise Institute analyst William Schneider, a Democrat, says Reagan's loss of support among Washington power brokers could be offset by continued backing of the public. "In the past, he has been able to go around the power elite by appealing directly to the public," Schneider said. Reagan will again plead his case that way in a televised address next week. But one top Republican strategist warned against expecting a dramatic turnaround. "The White House has to avoid building expectations that cannot be met," said the strategist, who requested anonymity. "They have to recognize there is no quick fix." Analysts also point out that Reagan's personal popularity has not always translated into public backing for his policies. They note he was dramatically rebuffed in last November's elections when voters rejected his appeals and restored control of the Senate to the Democrats. Reuter  26-FEB-1987 15:39:41.92 housing usa F 
f0827reute r f BC-JANUARY-HOUSING-SALES 02-26 0103  WASHINGTON, Feb 26 - Sales of previously owned homes dropped 14.5 pct in January to a seasonally adjusted annual rate of 3.47 mln units, the National Association of Realtors (NAR) said. But the December rate of 4.06 mln units had been the highest since the record 4.15 mln unit sales rate set in November 1978, the group said. "The drop in January is not surprising considering that a significant portion of December's near-record pace was made up of sellers seeking to get favorable capital gains treatment under the old tax laws," said the NAR's John Tuccillo. Reuter  26-FEB-1987 15:41:56.54 money-supply A 
f0835reute f f BC-******ASSETS-OF-MONEY 02-26 0012  ******Blah blah blah.  26-FEB-1987 15:43:14.36 usa A 
f0840reute b f BC-******U.S.-TAX-WRITER 02-26 0013  ******Blah blah blah.  26-FEB-1987 15:43:59.53 usa F 
f0842reute d f BC-SENATORS-INTRODUCE-EX 02-26 0110  WASHINGTON, Feb 26 - Sens. Alan Cranston (D-Cal.) and Daniel Evans (R-Wash.) said they introduced export licensing reform legislation that could save U.S. companies hundreds of thousands of dollars annually. "Our emphasis is two-fold: Decontrol and de-license items where such actions will not endanger our national security, and eliminate the Department of Defense's de facto veto authority over the licensing process," Cranston said. "Our reforms should reduce licensing requirements by 65 to 70 pct," he told reporters. "I am convinced that a more rational...licensing process will boost exports." U.S. export controls are intended to deny Eastern bloc countries access to technology that could further their military capabilities. "By refocusing our control resources on higher levels of technology, technology that is truly critical, we will do a better job of preventing diversion of critical technology to our adversaries while promoting more exports," Cranston said. "We cannot expect to continue to play a leading role in new technology development in the future if we unduly restrict the activities of U.S. firms in the world market-place," Evans told reporters. Reuter  26-FEB-1987 15:44:36.04 usa F 
f0845reute r f BC-EXCELAN-INC-SETS-INIT 02-26 0061  SAN JOSE, Calif., Feb 26 - Excelan Inc said it is making an initial public offering of 2,129,300 shares of common stock at 12 dlrs per share. Excelan said 1.6 mln of the shares are being sold by the company and 529,300 shares are being sold by stockholders. Excelan designs and manufactures computer-related products. Reuter  26-FEB-1987 15:45:19.65 usa F 
f0847reute d f BC-CCX-NETWORK-<CCXN>-SE 02-26 0074  CONWAY, Ark., Feb 26 - CCX Network Inc said it was offering 220,838 shares of stock at 15.75 dlrs a share though underwriters Stephens Inc and Cazenove Inc. The company said it was selling the stock on behalf of some shareholders, including those who recently received shares in the company in exchange for their businesses. The company said it was receiving no proceeds from the offering. Reuter  26-FEB-1987 15:45:26.55 usa F 
f0848reute r f BC-FIRST-UNION-<FUNC>-FI 02-26 0055  NEW YORK, Feb 26 - First Union Corp said it has filed with the Securities and Exchange Commission for a proposed offering of 100 mln dlrs of fixed rate subordinated notes due 1997. The notes will be sold nationwide through underwriters managed by Shearson Lehman Brothers Inc. Reuter  26-FEB-1987 15:45:35.37 earn usa F 
f0849reute r f BC-OWENS-AND-MINOR-INC-< 02-26 0025  RICHMOND, Va. Feb 26 - Qtly div eights cts vs 7.5 cts prior Pay March 31 Record March 13 Reuter  26-FEB-1987 15:45:39.20 earn usa F 
f0850reute r f BC-COMPUTER-LANGUAGE-RES 02-26 0070  CARROLLTON, Texas, Feb 26 - Shr loss 22 cts vs loss 18 cts Net loss 3,035,000 vs loss 2,516,000 Revs 20.9 mln vs 19.6 mln Qtly div three cts vs three cts prior Year Shr profit two cts vs profit 34 cts Net profit 215,000 vs profit 4,647,000 Revs 93.4 mln vs 98.7 mln NOTE: Dividend payable April one to shareholders of record March 17. Reuter  26-FEB-1987 15:45:47.29 earn usa E F 
f0851reute d f BC-<CINRAM-LTD>-4TH-QTR 02-26 0051  Scarborough, Ontario, Feb 26 - Shr 45 cts vs 58 cts Net 1.1 mln vs 829,000 Sales 7.9 mln vs 9.4 mln Avg shrs 2,332,397 vs 1,428,000 Year Shr 1.22 dlrs vs 1.06 dlrs Net 2.9 mln vs 1.5 mln Sales 25.7 mln vs 22.2 mln Avg shrs 2,332,397 vs 1,428,000 Reuter  26-FEB-1987 15:46:36.16 usa F 
f0855reute h f BC-DU-PONT-CO-<DD>-LAUNC 02-26 0105  WILMINGTON, Del., Feb 26 - The Du Pont Co said it has devloped a new generation of high-strength aramid fibers which is stiffer and less absorbant than previous generations. Du Pont said the new product, Kevlar 149, is up to 40 pct stiffer than first generation aramids, and absorbs less than half the moister of other similar aramid fibers. Kevlar was invented by Du Pont in the late 1960s and is five times stronger than steel and 10 times stronger than aluminum on an equal wieght basis, and is used to replace metals in a variety of products, according to the company. Reuter  26-FEB-1987 15:47:16.17 earn canada E F 
f0859reute r f BC-STANDARD-TRUSTCO-SEES 02-26 0099  Toronto, Feb 26 - Standard Trustco said it expects earnings in 1987 to increase at least 15 to 20 pct from the 9,140,000 dlrs, or 2.52 dlrs per share, recorded in 1986. "Stable interest rates and a growing economy are expected to provide favorable conditions for further growth in 1987," president Brian O'Malley told shareholders at the annual meeting. Standard Trustco previously reported assets of 1.28 billion dlrs in 1986, up from 1.10 billion dlrs in 1985. Return on common shareholders' equity was 18.6 pct last year, up from 15 pct in 1985. Reuter  26-FEB-1987 15:48:26.92 earn usa F 
f0865reute u f BC-HANDY-AND-HARMAN-<HNH 02-26 0068  NEW YORK, Feb 26 - Shr loss 51 cts vs loss three cts Net loss 7,041,000 vs loss 467,000 Rev 138.9 mln vs 131.4 mln 12 months Shr loss 64 cts vs profit 46 cts Net loss 8,843,000 vs profit 6,306,0000 Rev 558.9 mln vs 556.7 mln NOTE: Net loss for 4th qtr 1986 includes charge for restructuring of 2.6 mln dlrs after tax, or 19 cts a share. 1986 net loss includes after tax special charge of 2.7 mln dlrs, or 20 cts a share. Reuter  26-FEB-1987 15:49:27.16 coffee uk ico-coffee C T 
f0871reute b f BC-ICO-PRODUCERS-TO-PRES 02-26 0109  LONDON, Feb 26 - International Coffee Organization, ICO, producing countries will present a proposal for reintroducing export quotas for 12 months from April 1 with a firm undertaking to try to negotiate up to September 30 any future quota distribution on a new basis, ICO delegates said. Distribution from April 1 would be on an unchanged basis as in an earlier producer proposal, which includes shortfall redistributions totalling 1.22 mln bags, they said. Resumption of an ICO contact group meeting with consumers, scheduled for this evening, has been postponed until tomorrow, delegates said. Reuter  26-FEB-1987 15:49:44.93 usairan V RM 
f0873reute u f AM-REAGAN-SHULTZ-1STLD 02-26 0108  ANCHORAGE, Alaska, Feb 26 - Secretary of State George Shultz acknowledged failings in the Iran arms affair but declared he would not resign. His role in the scandal that has scarred the Reagan administration attracted harsh criticism from the Tower commission in its report on the affair published today. Shultz, travelling to China for a week-long visit, refused to comment directly on the report, published after he had left Washington. But he repeated -- as he has done since the crisis broke last November -- that he was not going to resign. "You can wipe that off your slate," he said. Reuter  26-FEB-1987 15:49:56.01 acqship usa F 
f0874reute r f BC-MCLEAN'S-<MII>-U.S.-L 02-26 0094  CRANFORD, N.J., Feb 26 - McLean Industries Inc's United States Lines Inc subsidiary said it has agreed in principle to transfer its South American service by arranging for the transfer of certain charters and assets to <Crowley Mariotime Corp>'s American Transport Lines Inc subsidiary. U.S. Lines said negotiations on the contract are expected to be completed within the next week. Terms and conditions of the contract would be subject to approval of various regulatory bodies, including the U.S. Bankruptcy Court. Reuter  26-FEB-1987 15:51:17.84 acq usa F 
f0881reute u f BC-CHEMLAWN-<CHEM>-RISES 02-26 0106  By Cal Mankowski, Reuters NEW YORK, Feb 26 - ChemLawn Corp <CHEM> could attract a higher bid than the 27 dlrs per share offered by Waste Management Inc <WNX>, Wall Street arbitrageurs said. Shares of ChemLawn shot up 11-5/8 to 29-3/8 in over-the-counter- trading with 3.8 mln of the company's 10.1 mln shares changing hands by late afternoon. "This company could go for 10 times cash flow or 30 dlrs, maybe 32 dollars depending on whether there is a competing bidder," an arbitrageur said. Waste Management's tender offer, announced before the opening today, expires March 25. "This is totally by surprise," said Debra Strohmaier, a ChemLawn spokeswoman. The company's board held a regularly scheduled meeting today and was discussing the Waste Management announcement. She said a statement was expected but it was not certain when it would be ready. She was unable to say if there had been any prior contact between Waste Management and ChemLawn officials. "I think they will resist it," said Elliott Schlang, analyst at Prescott, Ball and Turben Inc. "Any company that doesn't like a surprise attack would." Arbitrageurs pointed out it is difficult to resist tender offers for any and all shares for cash. Schlang said ChemLawn could try to find a white knight if does not want to be acquired by Waste Management. Analyst Rosemarie Morbelli of Ingalls and Snyder said ServiceMaster Companies L.P. <SVM> or Rollins Inc <ROL> were examples of companies that could be interested. ChemLawn, with about two mln customers, is the largest U.S. company involved in application of fertilizers, pesticides and herbicides on lawns. Waste Management is involved in removal of wastes. Schlang said ChemLawn's customer base could be valuable to another company that wants to capitalize on a strong residential and commercial distribution system. Both Schlang and Morbelli noted that high growth rates had catapulted ChemLawn's share price into the mid-30's in 1983 but the stock languished as the rate of growth slowed. Schlang said the company's profits are concentrated in the fourth quarter. In 1986 ChemLawn earned 1.19 dlrs per share for the full year, and 2.58 dlrs in the fourth quarter. Morbelli noted ChemLawn competes with thousands of individual entrepreuers who offer lawn and garden care sevice. Reuter  26-FEB-1987 15:51:28.42 sugar usa C T 
f0882reute b f BC-sugar-imports 02-26 0120  WASHINGTON, Feb 26 - Sugar imports subject to the U.S. sugar import quota during the week ended January 9, the initial week of the 1987 sugar quota year, totaled 5,988 short tons versus 46,254 tons the previous week, the Agriculture Department said. The sugar import quota for the 1987 quota year (January-December) has been set at 1,001,430 short tons compared with 1,850,000 tons in the 1986 quota year, which was extended three months to December 31. The department said the Customs Service has reported that weekly and cumulative imports are reported on an actual weight basis and when final polarizations are received, cumulative import data are adjusted accordingly. Reuter  26-FEB-1987 15:51:51.24 trade brazil C G L M T 
f0884reute d f AM-CRUZADO 02-26 0114  RIO DE JANEIRO, Feb 26 - Brazil's "Cruzado" anti- inflation plan, initially hailed at home and abroad as the saviour of the economy, is limping towards its first anniversary amid soaring prices, widespread shortages and a foreign payments crisis. Announced last February 28 the plan froze prices, fixed the value of the new Cruzado currency and ended widespread indexation of the economy in a bid to halt the country's 250 pct inflation rate. But within a year the plan has all but collapsed. "The situation now is worse than it was. Although there was inflation, at least the economy worked," a leading bank economist said. The crumbling of the plan has been accompanied by a dramatic reversal in the foreign trade account. In 1984 and 1985 Brazil's annual trade surpluses had been sufficient to cover the 12 billion dlrs needed to service its 109 billion dlr foreign debt. For the first nine months of 1986 all seemed to be on target for a repeat, with monthly surpluses averaging one billion dlrs. But as exports were diverted and imports increased to avoid further domestic shortages the trade surplus plunged to 211 mln dlrs in October and since then has averaged under 150 mln. Reuter  26-FEB-1987 15:52:15.10 reserves new-zealand RM 
f0886reute u f BC-N.Z.-OFFICIAL-FOREIGN 02-26 0049  WELLINGTON, Feb 27 - New Zealand's official foreign reserves fell to 7.15 billion N.Z. Dlrs in January from 7.20 billion dlrs in December and compared with 3.03 billion a year ago period, the Reserve Bank said in its weekly statistical bulletin. Reuter  26-FEB-1987 15:52:25.60 ship usapanama G T M 
f0888reute d f BC-panama-canal-ships 02-26 0071  WASHINGTON, Feb 26 - The Panama Canal Commission, a U.S. government agency, said in its daily operations report that there was a backlog of 39 ships waiting to enter the canal early today. Over the next two days it expects -- 2/26 2/27 Due: 27 35 Scheduled to Transit: 35 41 End-Day Backlog: 31 25 Average waiting time tomorrow -- Super Tankers Regular Vessels North End: 13 hrs 15 hrs South End: 4 hrs 26 hrs Reuter  26-FEB-1987 15:52:33.04 earn usa F 
f0889reute d f BC-AMERICA-FIRST-MORTGAG 02-26 0046  OMAHA, Neb., Feb 26 - <America First Federally Guaranteed Mortgage Fund Two> said it is making a special distribution of 71.6 cts per exchangeable unit, which includes 67.62 cts from return on capital and 3.98 cts from income gains. Reuter  26-FEB-1987 15:52:57.49 usa C G 
f0894reute d f BC-REPUBLICANS-EYE-BIGGE 02-26 0112  WASHINGTON, Feb 26 - A group of Republican governors and members of Congress said they intended to explore expanding the conservation reserve program by up to 20 mln acres. Under current law, between 40 and 45 mln acres of erodible land must be enrolled in the program by the end of fiscal 1990. The Republican Task Force on Farm and Rural America, headed by Senate Majority Leader Robert Dole (Kan.), said they would consider drafting legislation to increase the reserve by between 15 and 20 mln acres. Sen. Charles Grassley (R-Iowa) told Reuters he would offer a bill to expand the reserve to 67 mln acres. Reuter  26-FEB-1987 15:53:05.48 usa F 
f0895reute h f BC-ARVIN-INDS-<ARV>-PROM 02-26 0037  COLUMBUS, IND., Feb 26 - Arvin Industries Inc said L.K. Evans has been elected president, succeeding James Baker who remains chairman. Evans had been executive vice president. Reuter  26-FEB-1987 15:53:54.56 earn usa F 
f0899reute s f BC-EMHART-CORP-<EMH>-QTL 02-26 0024  FARMINGTON, Conn., FEb 26 - Qtly div 35 cts vs 35 cts prior Payable March 31 Record March nine Reuter  26-FEB-1987 15:54:55.20 usa V RM 
f0901reute u f BC-/U.S.-DATA-POINT-TO-C 02-26 0102  By Kathleen Hays, Reuters NEW YORK, Feb 26 - A surprise 7.5 pct drop in U.S. January durable goods orders points to a slowdown in capital spending that could presage lackluster real growth in the U.S. economy in the first quarter of 1987, economists said. With total orders, excluding the volatile defense sector, falling a record 9.9 pct, economists agreed that the report painted a bleak picture for the U.S. economy. But they stressed that the 1987 tax reform laws may be a primary factor behind the drop in orders for business capital investment. "It's a rather gloomy outlook for the economy, said David Wyss of Data Resources Inc. "I'm particularly impressed by the 19.7 pct drop in non-defense capital goods orders because it may be a sign that businesses are reacting more adversely to tax reform than we thought." The Commerce Department pointed out that a record 14.8 pct decline in new orders for machinery was led by declines in office and computing equipment orders. Economists said the drop in computer orders may have been a response to the lengthening of depreciation schedules and the end of the investment tax credit under the new tax laws. "It's more expensive to invest than it used to be, so people just aren't doing it as much," Wyss said. Increases in durable goods orders at year's end reinforced the view that businesses anticipated the changing tax laws, economists said. November durable goods orders rose 5.1 pct and December's increased 1.5 pct, revised upwards from a previously reported 0.9 pct. But most acknowledged that the huge January drop was caused by more than tax reform. "The wash-out that took place in January was far greater than the actual gains that took place in November and December," said Bill Sullivan of Dean Witter Reynolds Inc. "The economy has a weakening bent to it early in the year." "The report definitely points to very sluggish capital spending over the next couple of quarters," said Donald Maude of Midland Montagu Capital Markets Inc. Maude pointed to a continuing decline in order backlogs as evidence that the outlook for new orders is not improving. In November, order backlogs rose 0.6 pct, but in December they fell 0.6 pct and in January 0.7 pct, he said. "It suggests orders in the pipeline are depleting, which may quickly translate to a drop in production," Midland Montagu's Maude said. Wyss cautioned that too much should not be made of January's report, given that other reports have reflected strength. But he acknowledged that the decline occurred despite a 51 pct rise in defense orders, compared with a 57.7 pct decline in December. He also noted that there was a 6.9 pct drop in January shipments, compared with a 5.4 pct rise in December. "Given these numbers, there's no reason for the Fed to tighten," Data Resources' Wyss said. "But there's no reason to ease unless we see more numbers like this. The Fed will wait and see," he added. Sullivan predicted the Fed will ease by Easter. "People aren't talking recession or Fed easing now, but the Fed will have to ease to ensure global growth." Reuter  26-FEB-1987 15:56:00.50 usa C 
f0903reute d f BC-SENATORS-INTRODUCE-EX 02-26 0110  WASHINGTON, Feb 26 - Sens. Alan Cranston (D-Cal.) and Daniel Evans (R-Wash.) said they introduced export licensing reform legislation that could save U.S. companies hundreds of thousands of dollars annually. "Our emphasis is two-fold: Decontrol and de-license items where such actions will not endanger our national security, and eliminate the Department of Defense's de facto veto authority over the licensing process," Cranston said. "Our reforms should reduce licensing requirements by 65 to 70 pct," he told reporters. "I am convinced that a more rational...licensing process will boost exports." U.S. export controls are intended to deny Eastern bloc countries access to technology that could further their military capabilities. "By refocusing our control resources on higher levels of technology, technology that is truly critical, we will do a better job of preventing diversion of critical technology to our adversaries while promoting more exports," Cranston said. "We cannot expect to continue to play a leading role in new technology development in the future if we unduly restrict the activities of U.S. firms in the world market-place," Evans told reporters. Reuter  26-FEB-1987 15:57:48.22 earn usa F 
f0906reute r f BC-AM-INTERNATIONAL-<AM> 02-26 0092  CHICAGO, Feb 26 - AM International Inc, reporting an operating loss for the January 31 second quarter, said prospects for the balance of the fiscal year remain good. It said orders at its Harris Graphics subsidiary, acquired in June 1986, "continue to run at a strong pace." For the six months, orders rose 35 pct over the corresponding prior-year period, or on an annualized basis are running at about 630 mln dlrs. The backlog at Harris is up 30 pct from the beginning of the fiscal year, AM said. AM International said its old division are expected to benefit from recent new product introductions and the decline in the value of the dollar. "Research, development and engineering expenditures in fiscal 1987 will be in the 45-50 mln dlr range, and the company said it has allocated another 30-40 mln dlrs for capital expenditures. Earlier AM reported a fourth quarter operating loss of two cts a share compared to profits of seven cts a share a year ago. Revenues rose to 291.8 mln dlrs from 151.1 mln dlrs. Reuter  26-FEB-1987 15:58:07.34 graincorn usahonduras C G 
f0907reute u f BC-CCC-CREDITS-FOR-HONDU 02-26 0097  WASHINGTON, Feb 26 - The Commodity Credit Corporation (CCC) announced 1.5 mln dlrs in credit guarantees previously earmarked to cover sales of dry edible beans to Honduras have been switched to cover sales of white corn, the U.S. Agriculture Department said. The department said the action reduces coverage for sales of dry edible beans to 500,000 dlrs and creates the new line of 1.5 mln dlrs for sales of white corn. All sales under the credit guarantee line must be registered and shipped by September 30, 1987, it said. Reuter  26-FEB-1987 15:58:19.46 money-supply usa A RM 
f0908reute u f BC-ASSETS-OF-U.S.-MONEY 02-26 0072  WASHINGTON, Feb 26 - Assets of money market mutual funds increased 720.4 mln dlrs in the week ended yesterday to 236.90 billion dlrs, the Investment Company Institute said. Assets of 91 institutional funds rose 356 mln dlrs to 66.19 billion dlrs, 198 general purpose funds rose 212.5 mln dlrs to 62.94 billion dlrs and 92 broker-dealer funds rose 151.9 mln dlrs to 107.77 billion dlrs. Reuter  26-FEB-1987 15:58:47.73 ship usa G C 
f0910reute u f BC-gulf-grain-barge-frgt 02-26 0117  ST LOUIS, Feb 26 - Gulf barge freight rates firmed again on the outlook for steady vessel loadings at the Gulf, increasing the demand for barges to supply those ships, dealers said. No barges traded today on the St Louis Merchants' Exchange call session, versus 29 yesterday. Quotes included - - Delivery this week on the Illinois River (Joliet) 135 pct of tariff bid/140 offered, with next week same river (ex Chicago) quoted the same - both up 2-1/2 percentage points. - Next week Mississippi River (St Louis) 120 pct bid/127-1/2 offered - up five points. - Next week Ohio River (Owensboro/south) 125 pct bid/132-1/2 offered - up 7-1/2 points. - On station Illinois River (south Chicago) 135 pct bid/140 offered - no comparison. - March Illinois (ex Chicago) 132-1/2 pct bid/140 offered - up 2-1/2 points. - March Ohio River bid at yesterday's traded level of 125 pct, offered at 132-1/2. - March lower Mississippi River (Memphis/Cairo) 112-1/2 pct bid/120 offered - no comparison. - May Illinois River (ex Chicago) 100 pct bid/107-1/2 offered - no comparison. - Sept/Nov Lower Mississippi River (Memphis/Cairo) 137-1/2 pct bid/145 offered, with Sept/Dec same section 125 pct bid/135 offered - no comparison. Reuter  26-FEB-1987 16:03:15.46 argentina C G L M T 
f0923reute u f BC-ARGENTINA-COULD-SUSPE 02-26 0110  BUENOS AIRES, Feb 26 - Argentina could suspend payments on its foreign debt if creditor banks reject a 2.15 billion dlr loan request to meet 1987 growth targets, ruling Radical Party Deputy Raul Baglini told a local radio station. "Argentina does not discard the use of (a moratorium) if the negotiations do not produce a result that guarantees the growth of the country," he added. Baglini, an observer at Argentina's negotiations in New York with the steering committee for its 320 creditors banks, told the Radio del Plata in a telephone interview that the banks were divided on the loan request. Baglini said that as a result, today's scheduled second day of talks had been postponed. He said Argentina was prepared to follow the example of Brazil, which last week declared a moratorium on interest payments of a large portion of its 108 billion dlr foreign debt. Argentina's prime objective in renegotiating the debt was to maintain growth, which has been targeted at four pct in 1987, Baglini said. "Debtor nations should not have to take from their own pockets, that is their commercial balance, to meet interest payments," he added. Reuter  26-FEB-1987 16:04:05.90 usa F 
f0928reute r f BC-KEY-U.S.-TAX-WRITERS 02-26 0075  WASHINGTON, Feb 26 - The chairmen and senior Republican members of the House and Senate tax writing committees proposed legislation to curb estate tax deduction on sales of stock to an employee stock ownership plan. The proposal would raise federal revenues of 6.7 billion dlrs over the fiscal year period 1987 to 1991. If adopted by Congress it would effect all transactions after Sept 26, 1987. The plan was proposed by House Ways and Means Committee Chairman Dan Rostenkowski (D-Ill), Rep John Duncan (R-Tenn), Senate Finance Committee Chairman Lloyd Bentsen (D-Tex) and Sen Bob Packwood (R-Ore). In a statement Rostenkowski said the estate tax deduction enacted last year as part of the tax reform bill was too broad and would have cost the governmet seven billion dlrs over four years. The narrower deduction would cost the government less than 300 mln dlrs for the same years. He said it was designed to avoid sham transactions which allowed estates to avoid taxes by transferring stock to ESOPs. Senate Finance Committee chairman Lloyd Bentsen said in a statement, "The Tax Reform Act contains a provision that allows many wealthy individuals to avoid the federal estate tax entirely when they die." He added, "The provision was intended to encourage estates to sell stock to employee stock ownership plans as a way of promoting worker ownership; however, the provision was not meant to be broad enough to reduce federal revenues as much as is currently estimated." He added, "The bill I have introduced today calls for the modification of the provision in accordance with its intended purpose." Reuter  26-FEB-1987 16:04:57.16 usa A RM 
f0932reute u f BC-TREASURY-BALANCES-AT 02-26 0082  WASHINGTON, Feb 26 - Treasury balances at the Federal Reserve rose on Feb 25 to 4.151 billion dlrs from 2.727 billion dlrs the previous business day, the Treasury said in its latest budget statement. Balances in tax and loan note accounts fell to 25.137 billion dlrs from 25.780 billion dlrs on the same respective days. The Treasury's operating cash balance totaled 29.289 billion dlrs on Feb 25 compared with 28.507 billion dlrs on Feb 24. Reuter  26-FEB-1987 16:05:36.23 canada wilson E A RM 
f0936reute u f BC-CANADA'S-WILSON-SEEKS 02-26 0111  OTTAWA, Feb 26 - Canadian Finance Minister Michael Wilson said he will use temporary authority under the Financial Administration act to borrow an additional 600 mln dlrs in next Thursday's treasury bill auction. In a statement, Wilson said the action would permit the government to proceed with its debt program during a period when there was not sufficient borrowing authority, which is granted by Parliament, to cover the government's needs. Ottawa announced previously it was seeking Parliamentary approval for the additional authority to cover the financing of an increase in the government's foreign reserves. Reuter  26-FEB-1987 16:06:36.68 earn usa F 
f0940reute r f BC-GULF-APPLIED-<GATS>-S 02-26 0055  HOUSTON, Feb 26 - Gulf Applied Technologies Inc said it sold its pipeline and terminal operations units for 12.2 mln dlrs and will record a gain of 2.9 mln dlrs in the first quarter. It added that any federal taxes owed on the transaction will be offset by operating loss carryovers. Reuter  26-FEB-1987 16:07:14.07 earn usa F 
f0943reute u f BC-FARMERS-GROUP-INC-<FG 02-26 0050  LOS ANGELES, Feb 26 - Shr 80 cts vs 72 cts Net 55,513,000 vs 48,741,000 Revs 290.9 mln vs 264.2 mln Year Shr 3.09 dlrs vs 2.72 dlrs Net 213,470,000 vs 184,649,000 Revs 1.12 billion vs 992.9 mln Avg shrs 69,127,000 vs 68,004,000 Reuter  26-FEB-1987 16:07:27.81 earn usa F 
f0945reute r f BC-POTOMAC-ELECTRIC-POWE 02-26 0057  WASHINGTON, Feb 26 - Shr 27 cts vs 29 cts Net 13,555,000 vs 14,635,000 Revs 104,606,000 vs 110,311,000 Avg shrs 47.2 mln vs 47.1 mln 12 mths Shr 4.10 dlrs vs 3.66 dlrs Net 226,653,000 vs 186,790,000 Revs 1.4 billion vs 1.3 billion Avg shr 47.1 mln vs 47.1 mln NOTE: latest 12 mths net includes gain 46 cts per share for sale of Virginia service territory to Dominion Resources Inc <D>. Reuter  26-FEB-1987 16:08:15.22 usa F 
f0948reute w f BC-SPRINGBOARD-<SPBD>-IN 02-26 0064  MINNEAPOLIS, Feb 26 - Springboard Software INc said it signed a contract under which International Technology Development Corp will provide software designers, programmers, project supervisors and technical support personnel to Springboard. International Technology, based in San Francisco and Shanghai, China, employs Chinese computer specialists. Reuter  26-FEB-1987 16:08:33.15 acq usa F 
f0949reute r f BC-<COFAB-INC>-BUYS-GULF 02-26 0066  HOUSTON, Feb 26 - CoFAB Inc said it acquired <Gulfex Inc>, a Houston-based fabricator of custom high-pressure process vessels for the energy and petrochemical industries. CoFAB said its group of companies manufacture specialized cooling and lubricating systems for the oil and gas, petrochemical, utility, pulp and paper and marine industries. Reuter  26-FEB-1987 16:10:43.67 veg-oilsoybeanoilseedmeal-feedsoy-meal usa C G 
f0951reute b f BC-nspa-weekly-crush 02-26 0110  WASHINGTON, Feb 26 - Reporting members of the National Soybean Processors Association (NSPA) crushed 21,782,929 bushels of soybeans in the week ended Feb 25 compared with 22,345,718 bushels in the previous week and 16,568,000 in the year-ago week, the association said. It said total crushing capacity for members was 25,873,904 bushels vs 25,873,904 last week and 25,459,238 bushels last year. NSPA also said U.S. soybean meal exports in the week were 117,866 tonnes vs 121,168 tonnes a week ago and compared with 84,250 tonnes in the year-ago week. NSPA said the figures include only NSPA member firms. Reuter  26-FEB-1987 16:11:21.94 usa F 
f0952reute d f BC-SCHULT-HOMES-OFFERING 02-26 0137  NEW YORK, Feb 26 - The underwriters said the initial offering of 833,334 Schult Homes Corp units is being made at five dlrs per unit. The underwriters, managed by Janney Montgomey Scott Inc and Woolcott and Co Inc, said each unit consits of one common share and one warrant to purchase one-half a common share at 5.50 dlrs per share until September one 1989 and thereafter at 6.50 dlrs per share until March 1991. The underwriters were granted an over-allotment option of 125,000 units. They said the company will use its proceeds to pay a portion of its subordinated note payable to Inland Steel Urban Development Corp issued in connection with the acquisition of Schult from Inland. Based in Elkhart, Ind., Schult is the country's oldest manufactured home producer. Reuter  26-FEB-1987 16:12:01.46 earn usa F 
f0954reute s f BC-TULTEX-CORP-<TTX>-SET 02-26 0026  MARTINSVILLE, Va., Feb 26 - Qtly div eights cts vs eight cts prior Pay April one Record March 13 Reuter  26-FEB-1987 16:13:04.20 usa F 
f0955reute d f BC-BURLINGTON-<BUR>--GET 02-26 0044  WASHINGTON, Feb 26 - Burlington Menswear of New York City, a division of Burlington Industries Inc, has received a 30.5 mln dlr defense contract for 3.69 mln yards of tropical cloth, the Defense Logistics Agency said. reuter  26-FEB-1987 16:13:36.47 usa F 
f0956reute h f BC-ROCKWELL-<ROK>-GETS-2 02-26 0035  WASHINGTON, Feb 26 - Rockwell International Corp has received a 28.3 mln dlr contract for work on the B-1B bomber in the current fiscal year, the Air Force said. reuter  26-FEB-1987 16:14:23.26 earn usa F 
f0957reute h f BC-ATICO-FINANCIAL-CORP 02-26 0070  MIAMI, Fla., Feb 26 - Shr 30 cts vs 5.92 dlrs Net 1,142,000 vs 16.0 mln Revs 10.6 mln vs 24.2 mln Year Shr 90 cts vs 6.20 dlrs Net 3,320,000 vs 16.9 mln Revs 45.00 mln vs 26.2 mln NOTE: 1986 4th qtr and yr amounts include acquisition of 98.8 pct of common of Atico, formerly Peninsula Federal Savings and Loan Association, on January 24, 1986. 1985 4th qtr and yr net include net gain of 15.9 mln dlrs or 5.86 dlrs per share on exchange of common of Pan America Banks Inc for common of NCNB Corp purusant to a merger of the companies. Reuter  26-FEB-1987 16:15:51.34 coffee uk ico-coffee C T 
f0960reute b f BC-ICO-EXPORTERS-TO-MODI 02-26 0094  LONDON, Feb 26 - International Coffee Organization (ICO) exporters will modify their new proposal on quota resumption before presenting it to importers tomorrow, ICO delegates said. The change, which will be discussed tonight informally among producers, follows talks after the formal producer session with the eight-member producer splinter group and will affect the proposed quota distribution for 12 months from April one, they said. The proposed share-out would still include shortfall declarations, they said. Reuter  26-FEB-1987 16:16:52.92 money-supply usa RM V 
f0965reute f f BC-******U.S.-COMMERCIAL 02-26 0011  ******Blah blah blah.  26-FEB-1987 16:17:05.96 money-supply usa RM V 
f0966reute f f BC-******N.Y.-BUSINESS-L 02-26 0011  ******Blah blah blah.  26-FEB-1987 16:17:21.41 money-supply usa RM V 
f0967reute f f BC-******NEW-YORK-BANK-D 02-26 0012  ******Blah blah blah.  26-FEB-1987 16:18:41.47 canada maxwell E F 
f0977reute r f BC-QUEBECOR-(PQB)-HEAD-S 02-26 0087  By Jane Arraf, Reuters MONTREAL, Feb 26 - Quebecor Inc, one of Canada's largest publishing and printing companies, is likely to launch a new daily newspaper in Montreal, probably this fall, president Pierre Peladeau told Reuters in an interview. The company, which last week won a bid to buy the Quebec government's 55 pct interest in pulp and paper company <Donohue Inc>, will also likely go ahead with plans to build a new paper mill in Matane, Quebec, Peladeau said. "I would say we will move (ahead with the daily).... This is not definite but i think we will," he said, adding that he plans to announce a decision early next week. Quebecor, which had revenues of 446 mln Canadian dlrs last year and profit of 16.2 mln dlrs, already publishes three daily newspapers, including the tabloid Le Journal de Montreal, the second-largest circulation paper in Canada. A new daily would give Montreal its second English- language paper and its sixth daily newspaper, making the city the most crowded metropolitan newspaper market in North America, analysts have said. Peladeau said market studies have indicated a new English language tabloid would have circulation of 50,000 within six months. He said he is waiting to determine whether the new venture would have the support of major advertisers. Peladeau, who together with family members owns about 55 pct of Quebecor, said he has recieved offers from the heads of two major Canadian companies who are interested in the project but has not decided whether he would take partners in the newspaper venture. He said he would consider launching the newspaper with one of the companies as a prelude to other joint ventures. "It would be the possibility of doing something else in the short term," Peladeau said. Peladeau said the joint acquisition of Donohue with Robert Maxwell's British Printing and Communications Corp plc <BPCL.L> does not mean Quebecor will have to hold off on other projects. Peladeau and Maxwell's companies teamed up to buy the stake in Donohue, which resulted in Quebecor buying 51 pct of the govvernment's stake for about 165 mln Canadian dlrs and British printing acquiring the other 49 pct. "In 1976 or 77 there was a tremendous shortage of newsprint. There were days when we didn't have enough paper to print the paper," Peladeau said. "When I lived that, I said to myself...next time we'll be ready." Peladeau said most of Donohue's current total newsprint capacity however, is already committed to other buyers. Quebecor uses about 100,000 metric tons of newsprint a year and Maxwell's company, which publishes Britain's Daily Mirror newspaper, uses about 200,000 tonnes. Peladeau said even with a new 170 mln dlr paper machine, 49 pct owned by the New York Times, (NYT.A), adding to Donohue's 540,000 metric tonne capacity this fall, the companies will have to install another paper machine at Amos, Quebec, or build another mill to meet their demands . He said a new mill, which would produce either newsprint or other types of paper, would cost 400-500 mln dlrs and could be on stream in two years. He said a mill in Matane, a depressed area with high unemployment, would be heavily subsidized by the government. Peladeau said he is interested in further joint ventures with Maxwell's company, either in the newspaper market in France or in the U.S., where the company owns two large printing plants and is looking to expand its newspaper empire. He said Maxwell's sons, who are French citizens, would provide an entree into the French market, where foreigners are prevented from buying newspapers. Peladeau said he would consider either buying into or starting daily newspapers in France or the U.S. Quebecor is also in the process of expanding its chain of about 40 weekly newspapers, with the possible acquisition of two groups of weekly newspapers in the U.S., and is negotiating the acquisition of two weekly newspaper chains in Canada, Peladeau said. He said the company may consider starting daily newspapers in two small Quebec cities and buying radio stations in the province. Peladeau said Quebecor may also consider trading in its listing on the American stock exchange for a New York Stock Exchange listing. Reuter  26-FEB-1987 16:20:06.60 money-supply usa RM V 
f0980reute b f BC-new-york-business-loa 02-26 0084  NEW YORK, Feb 26 - Commercial and industrial loans on the books of the 10 major New York banks, excluding acceptances, fell 195 mln dlrs to 65.06 billion in the week ended February 18, the Federal Reserve Bank of New York said. Including acceptances, loans declined 114 mln dlrs to 65.89 billion. Commercial paper outstanding nationally dropped 375 mln dlrs to 336.63 billion. National business loan data are scheduled to be released on Friday. Reuter  26-FEB-1987 16:20:50.93 money-supply usa RM V 
f0982reute b f BC-N.Y.-BANK-DISCOUNT-BO 02-26 0102  NEW YORK, Feb 26 - The eight major New York City banks had 64 mln dlrs in average borrowings from the Federal Reserve in the week to Wednesday February 25, a Fed spokesman said. The week marked the second half of the two-week bank statement period that ended on Wednesday. The banks had no borrowings in the prior week. Commenting on the latest week, a Fed spokesman said that all of the borrowing occurred yesterday and was done by fewer than half of the banks. National data on discount window borrowings are due to be released at 1630 EST (2130 GMT). Reuter  26-FEB-1987 16:23:47.79 earn usaphilippines F 
f0988reute d f BC-PHILIPPINE-LONG-DISTA 02-26 0081  NEW YORK, Feb 26 - Shr primary 95.30 pesos vs 29.71 pesos Shr diluted 61.11 pesos vs 18.49 pesos Qtly div 1.25 pesos vs 1.25 pesos Net 1.9 billion vs 779 mln Revs 6.1 billion vs 4.7 billion NOTE: Full name Philippine Long Distance Telephone Co. Figures quoted in Philippine Pesos. Dividend payable April 15 to holders or record March 13. Exchange rate on day of dividend declaration was 20.792 pesos per dollar. Reuter  26-FEB-1987 16:25:23.18 earn usa F 
f0992reute w f BC-LIBERTY-ALL-STAR-EQUI 02-26 0052  WESTPORT, Conn., FEb 26 - Qtly div five cts vs N.A. Payable April two Record March 20 NOTE:1986 dividend includes special two cts per share for the period beginning with the fund's commencement of operations on Novebmer three through December 31, 1986. Reuter  26-FEB-1987 16:25:42.65 usa F 
f0993reute d f BC-COLUMBIA-GAS-SYSTEM-I 02-26 0100  WILMINGTON, Del, Feb 26 - The Columbia Gas Systems Inc said it will redeem 4.7 mln dlrs principal amount of its 9-1/8 pct debentures, series due May 1, 1996, and five mln dlrs principal amount of its 10-1/4 pct debentures, series due May 1, 1999. The company said it is redeeming the debentures to meet mandatory sinking fund requirements. In addition, Columbia said it will call for the optional sinking fund redemption on May 1, 1987, the 4.7 mln dlrs principal amount of the 9-1/8 debentures and 7.5 mln dlrs of the 10-1/4 pct debentures. Reuter  26-FEB-1987 16:26:09.46 earn usa F 
f0994reute s f BC-COMBUSTION-ENGINEERIN 02-26 0024  STAMFORD, Conn., Feb 26 - Qtly div 25 cts vs 25 cts prior Pay April 30 Record April 16 Reuter  26-FEB-1987 16:27:07.38 earn usa F 
f0999reute u f BC-TONKA-CORP-<TKA>-RAIS 02-26 0022  MINNETONKA, MINN., Feb 26 - Qtly div two cts vs 1.7 cts Pay March 26 Record March 12 Reuter  26-FEB-1987 16:29:15.25 earn usa F 
f0011reute r f BC-BDM-INTERNATIONAL-<BD 02-26 0042  MCLEAN, Va., Feb 26 - Annual div Class A 14 cts vs 12 cts prior Annual div Class B 12.1 cts vs 10.4 cts prior Payable April one Record March 20 NOTE: full name is BDM International Inc. Reuter  26-FEB-1987 16:29:19.68 usa F 
f0012reute d f BC-SORG-<SRG>-STOCKHOLDE 02-26 0083  NEW YORK, Feb 26 - Sorg Inc said a group composed of one-third of the stockholders in Sorg agreed not to sell their holdings without the consent of the entire group. Sorg said the group also agreed to vote as a body on any proposed merger or election of directors. The company further said it retained the First Boston Corp to act as its financial advisor. The company was not immediately available to provide further details on the group or its aims. Reuter  26-FEB-1987 16:29:26.29 earn usa F 
f0013reute s f BC-SYSTEMATICS-INC-<SYST 02-26 0025  LITTLE ROCK, Ark., Feb 26 - Qtly div three cts vs three cts prior Pay March 13 Record February 27 Reuter  26-FEB-1987 16:29:30.05 usa F 
f0014reute d f BC-TEXAS-INSTRUMENTS-<TX 02-26 0098  NEW YORK, Feb 26 - Texas Instruments Inc said it has developed the first 32-bit computer chip designed specifically for artificial intelligence applications. The company said the new microprocessor, measuring one-centimeter square and containing 553,687 transistors, is the densest chip ever made. The chip was designed, Texas Instruments said, for use with the Lisp langugage, which is used widely by software programmers in the artificial intelligence field. The company added that it is working on a production version of the chip. Reuter  26-FEB-1987 16:29:56.33 usa F 
f0015reute h f BC-CONSOLIDATED-GAS-<CNG 02-26 0070  CLARKSBURG, W.Va., Feb 26 - Consolidated Natural Gas System's Consolidated Gas Transmission Corp said it is in compliance with all federal regulations regarding the disposal of polychlorinated biphenyls, or PCBs. The company said it successfully cleaned up the only earthen pit at which PCBs were reported to be above Environmental Protection Agency standards. Reuter  26-FEB-1987 16:31:34.18 money-supply usa RM V 
f0017reute f f BC-******U.S.-M-1-MONEY 02-26 0012  ******Blah blah blah.  26-FEB-1987 16:31:44.49 earn canada E F 
f0018reute u f BC-(IVACO-INC)-YEAR-NET 02-26 0046  MONTREAL, Feb 26- Shr 1.11 dlrs vs 1.04 dlrs Net 44,092,000 vs 35,145,000 Revs 1.94 billion vs 1.34 billion Note: 1986 results include extraordinary gain of 1,035,000 dlrs or six cts a share from secondary share offering of Canron unit. Reuter  26-FEB-1987 16:31:54.04 money-supply usa RM V 
f0019reute f f BC-******U.S.-BANK-DISCO 02-26 0013  ******Blah blah blah.  26-FEB-1987 16:32:04.32 money-supply usa RM V 
f0020reute f f BC-******U.S.-BANK-NET-F 02-26 0013  ******Blah blah blah.  26-FEB-1987 16:32:37.30 acq usa F 
f0024reute u f BC-CYCLOPS 02-26 0073  WASHINGTON, Feb 26 - A group of affiliated New York investment firms said they lowered their stake in Cyclops Corp to 260,500 shares, or 6.4 pct of the total outstanding common stock, from 370,500 shares, or 9.2 pct. In a filing with the Securities and Exchange Commission, the group, led by Mutual Shares Corp, said it sold 110,000 Cyclops common shares on Feb 17 and 19 for 10.0 mln dlrs. Reuter  26-FEB-1987 16:32:51.69 grainwheatcornoatryesorghumsoybeanoilseed usa C G 
f0025reute u f BC-ASCS-TERMINAL-MARKET 02-26 0113  KANSAS CITY, Feb 26 - The Agricultural Stabilization and Conservation Service (ASCS) has established these unit values for commodities offered from government stocks through redemption of Commodity Credit Corporation commodity certificates, effective through the next business day. Price per bushel is in U.S. dollars. Sorghum is priced per CWT, corn yellow grade only. WHEAT HRW HRS SRW SWW DURUM Chicago -- 3.04 2.98 -- -- Ill. Track -- -- 3.16 -- -- Toledo -- 3.04 2.98 2.90 -- Memphis -- -- 3.05 -- -- Peoria -- -- 3.11 -- -- Denver 2.62 2.63 -- -- -- Evansville -- -- 2.99 -- -- Cincinnati -- -- 2.96 -- -- Minneapolis 2.65 2.71 -- -- 3.70 Baltimore/ Norf./Phil. -- -- 3.06 2.98 -- Kansas City 2.87 -- 3.17 -- -- St. Louis 3.03 -- 3.03 -- -- Amarillo/ Lubbock 2.64 -- -- -- -- HRW HRS SRW SWW DURUM Lou. Gulf -- -- 3.16 -- -- Portland/ Seattle 3.07 3.08 -- 3.10 3.70 Stockton 2.78 -- -- -- -- L.A. 3.23 -- -- -- 4.05 Duluth 2.65 2.71 -- -- 3.70 Tex. Gulf 3.10 -- 3.16 -- -- CORN BRLY OATS RYE SOYB SORG Chicago 1.47 -- -- -- 4.81 2.49 Ill. Track 1.49 2.04 -- -- 4.85 2.52 Toledo 1.41 2.04 1.50 -- 4.78 2.39 Memphis 1.59 1.95 1.71 -- 4.90 2.86 Peoria 1.51 --- -- -- 4.80 2.60 Denver 1.56 1.56 -- -- -- 2.54 Evnsvlle 1.54 2.04 1.50 2.17 4.90 2.61 Cinci 1.52 2.04 1.50 2.17 4.85 2.58 Mpls 1.34 1.75 1.50 1.85 4.68 -- Balt/Nor/ Phil 1.70 1.80 -- -- 4.98 3.12 KC 1.49 1.56 1.64 -- 4.76 2.58 St Lo 1.54 -- 1.66 -- 4.90 2.91 Amarlo/ Lubbck 1.84 1.40 -- -- 4.75 2.92 Lou Gulf 1.73 -- -- -- 5.05 3.12 Port/ Seattle 1.87 2.10 1.68 -- -- -- Stockton 2.18 2.23 2.10 -- -- 4.00 LA 2.54 2.50 -- -- -- 4.38 Duluth 1.34 1.75 1.50 1.85 4.68 -- Tex Gulf 1.73 1.48 1.73 -- 5.05 3.12 Reuter  26-FEB-1987 16:33:15.81 earn usa F 
f0026reute d f BC-CORADIAN-CORP-<CDIN> 02-26 0055  ALBANY, N.Y., Feb 26 - Shr profit three cts vs loss three cts Net profit 363,000 vs loss 197,000 Revs 3,761,000 vs 2,666,000 Year Shr profit one cent vs loss 37 cts Net profit 129,000 vs loss 1,715,000 Revs 11.4 mln vs 10.9 mln Avg shrs 10,694,081 vs 4,673,253 Reuter  26-FEB-1987 16:34:34.40 money-supply usa RM A 
f0031reute b f BC--FEDERAL-RESERVE-WEEK 02-26 0099  FEDERAL RESERVE WEEKLY REPORT 1 - FEB 26 Two weeks ended Feb 25 daily avgs-mlns Net free reserves.............644 vs.....1,337 Bank borrowings...............680 vs.......425 Including seasonal loans.......81 vs........56 Including extended loans......299 vs.......265 Excess reserves.............1,025 vs.....1,497 Required reserves (adj)....55,250 vs....55,366 Required reserves............N.A. vs......N.A. Total reserves...............N.A. vs......N.A. Non-borrowed reserves........N.A. vs......N.A. Monetary base................N.A. vs......N.A. Two weeks ended Feb 25 Total vault cash.............N.A. vs......N.A. Inc cash equal to req res....N.A. vs......N.A. One week ended Feb 25 Daily avgs-Mlns Bank borrowings...............614 down.....131 Including seasonal loans.......88 up........14 Including extended loans......304 up........10 Float.........................511 down.....320 Balances/adjustments........2,101 down......67 Currency..................206,490 down.....519 Treasury deposits...........4,208 down......63 Reuter  26-FEB-1987 16:35:16.02 money-supply new-zealand RM 
f0035reute r f BC-N.Z.-TRADING-BANK-DEP 02-26 0090  WELLINGTON, Feb 27 - New Zealand's trading bank seasonally adjusted deposit growth rose 2.6 pct in January compared with a rise of 9.4 pct in December, the Reserve Bank said. Year-on-year total deposits rose 30.6 pct compared with a 26.3 pct increase in the December year and 34.5 pct rise a year ago period, it said in its weekly statistical release. Total deposits rose to 17.18 billion N.Z. Dlrs in January compared with 16.74 billion in December and 13.16 billion in January 1986. Reuter  26-FEB-1987 16:35:24.57 money-supply usa RM A 
f0036reute b f BC--FEDERAL-RESERVE-MONE 02-26 0092  FEDERAL RESERVE MONEY SUPPLY REPORT - FEB 26 One Week Ended Feb 16 M-1.........................736.7 up.......2.1 Previous week revised to....734.6 From...734.2 Avge 4 Weeks (Vs Week Ago).735.0 Vs.....733.5 Avge 13 Weeks (Vs week Ago).731.8 Vs.....729.8 Monthly aggregates (Adjusted avgs in billions) M-1 (Jan vs Dec)............737.6 Vs.....730.5 M-2 (Jan vs Dec)..........2,820.1 Vs...2,798.4 M-3 (Jan vs Dec)..........3,513.6 Vs...3,488.1 L...(Dec vs Nov)..........4,141.5 Vs...4,110.5 Domestic Debt(Dec vs Nov).7,604.4 Vs...7,519.8 Reuter  26-FEB-1987 16:36:26.90 money-supply usa RM A 
f0039reute b f BC-FEDERAL-RESERVE-WEEKL 02-26 0095  FEDERAL RESERVE WEEKLY REPORT 3 - FEB 26 One week ended Feb 25 daily avgs-mlns Govts bought outright....193,374 down....1,342 Govts repurchases............nil unch......... Agencies bought outright...7,719 unch......... Agencies repurchases.........nil unch......... Acceptances repurchases......nil unch......... Matched sales..............4,920 vs......3,788 Including sales with cust..4,369 vs......3,788 Other Fed assets..........16,806 down....1,161 Other Fed liabilities......6,421 up........178 Other deposits with Fed......399 up.........26 Reuter  26-FEB-1987 16:36:54.20 money-supply usa RM A 
f0041reute b f BC-FEDERAL-RESERVE-WEEKL 02-26 0100  FEDERAL RESERVE WEEKLY REPORT 4 - FEB 26 One week ended Feb 25 Daily avgs-Mlns Foreign deposits.............219 down.......29 Gold stock................11,059 unch......... Custody holdings.........168,348 down......366 Federal funds rate avg......5.95 vs.......6.21 Factors on Wednesday, Feb 25 Bank borrowings............1,239 vs........446 Including extended credits....92 vs........298 Matched sales..............8,250 vs......2,998 Including sales w/cust.....4,392 vs......2,998 Float........................935 vs......2,125 Reuter  26-FEB-1987 16:38:46.25 cotton usa C G 
f0048reute u f BC-WORLD-MARKET-PRICE-FO 02-26 0089  WASHINGTON, Feb 26 - The U.S. Agriculture Department announced the prevailing world market price, adjusted to U.S. quality and location, for Strict Low Middling, 1-1/16 inch upland cotton at 52.69 cts per lb, to be in effect through midnight March 5. The adjusted world price is at average U.S. producing locations (near Lubbock, Texas) and will be further adjusted for other qualities and locations. The price will be used in determining First Handler Cotton Certificate payment rates. Based on data for the week ended February 26, the adjusted world price for upland cotton is determined as follows, in cts per lb -- Northern European Price 66.32 Adjustments -- Average U.S. spot mkt location 10.42 SLM 1-1/16 inch cotton 1.80 Average U.S. location 0.53 Sum of adjustments 12.75 Adjusted world price 53.57 Reuter  26-FEB-1987 16:38:54.88 sugar usa C T 
f0049reute u f BC-sugar-import-quota 02-26 0110  WASHINGTON, Feb 26 - The U.S. Agriculture Department said cumulative sugar imports from individual countries during the 1987 quota year, which began January 1, 1987 and ends December 31, 1987 were as follows, with quota allocations for the quota year in short tons, raw value -- CUMULATIVE QUOTA 1987 IMPORTS ALLOCATIONS ARGENTINA nil 39,130 AUSTRALIA nil 75,530 BARBADOS nil 7,500 BELIZE nil 10,010 BOLIVIA nil 7,500 BRAZIL nil 131,950 CANADA nil 18,876 QUOTA 1987 IMPORTS ALLOCATIONS COLOMBIA 103 21,840 CONGO nil 7,599 COSTA RICA nil 17,583 IVORY COAST nil 7,500 DOM REP 5,848 160,160 ECUADOR nil 10,010 EL SALVADOR nil 26,019.8 FIJI nil 25,190 GABON nil 7,500 QUOTA 1987 IMPORTS ALLOCATIONS GUATEMALA nil 43,680 GUYANA nil 10,920 HAITI nil 7,500 HONDURAS nil 15,917.2 INDIA nil 7,500 JAMAICA nil 10,010 MADAGASCAR nil 7,500 MALAWI nil 9,,100 QUOTA 1987 IMPORTS ALLOCATIONS MAURITIUS nil 10,920 MEXICO 37 7,500 MOZAMBIQUE nil 11,830 PANAMA nil 26,390 PAPUA NEW GUINEA nil 7,500 PARAGUAY nil 7,500 PERU nil 37,310 PHILIPPINES nil 143,780 ST.CHRISTOPHER- NEVIS nil 7,500 QUOTA 1987 IMPORTS ALLOCATIONS SWAZILAND nil 14,560 TAIWAN nil 10,920 THAILAND nil 12,740 TRINIDAD-TOBAGO nil 7,500 URUGUAY nil 7,500 ZIMBABWE nil 10,920 Reuter  26-FEB-1987 16:39:03.54 grainship usa GQ 
f0050reute r f BC-portland-grain-ships 02-26 0031  PORTLAND, Feb 26 - There were seven grain ships loading and six ships were waiting to load at Portland, according to the Portland Merchants Exchange. Reuter  26-FEB-1987 16:40:00.82 iraniraq RM V Y 
f0052reute b f AM-GULF-OPERATION ***URGENT 02-26 0097  LONDON, Feb 26 - Iran announced tonight that its major offensive against Iraq in the Gulf war had ended after dealing savage blows against the Baghdad government. The Iranian news agency IRNA, in a report received in London, said the operation code-named Karbala-5 launched into Iraq on January 9 was now over. It quoted a joint statewment by the Iranian Army and Revolutionary Guards Corps as saying that their forces had "dealt one of the severest blows on the Iraqi war machine in the history of the Iraq-imposed war." The statement by the Iranian High Command appeared to herald the close of an assault on the port city of Basra in southern Iraq. "The operation was launched at a time when the Baghdad government was spreading extensive propaganda on the resistance power of its army...," said the statement quoted by IRNA. It claimed massive victories in the seven-week offensive and called on supporters of Baghdad to "come to their senses" and discontinue support for what it called the tottering regime in Iraq. Iran said its forces had "liberated" 155 square kilometers of enemy-occupied territory during the 1987 offensive and taken over islands, townships, rivers and part of a road leading into Basra. The Iranian forces "are in full control of these areas," the statement said. It said 81 Iraqi brigades and battalions were totally destroyed, along with 700 tanks and 1,500 other vehicles. The victory list also included 80 warplanes downed, 250 anti- aircraft guns and 400 pieces of military hardware destroyed and the seizure of 220 tanks and armoured personnel carriers. Reuter  26-FEB-1987 16:40:34.32 earn usa F 
f0056reute s f BC-MERIDIAN-BANCORP-INC 02-26 0025  READING, Penn., Feb 26 - Qtly div 25 cts vs 25 cts prior Pay April one Record March 15 Reuter  26-FEB-1987 16:41:34.44 money-supply usa RM V 
f0057reute b f BC-u.s.-bank-borrowings 02-26 0109  NEW YORK, Feb 26 - U.S. bank discount window borrowings less extended credits averaged 310 mln dlrs in the week to Wednesday February 25, the Federal Reserve said. The Fed said that overall borrowings in the week fell 131 mln dlrs to 614 mln dlrs, with extended credits up 10 mln dlrs at 304 mln dlrs. The week was the second half of a two-week statement period. Net borrowings in the prior week averaged 451 mln dlrs. Commenting on the two-week statement period ended February 25, the Fed said that banks had average net free reserves of 644 mln dlrs a day, down from 1.34 billion two weeks earlier. A Federal Reserve spokesman told a press briefing that there were no large single day net misses in the Fed's reserve projections in the week to Wednesday. He said that natural float had been "acting a bit strangely" for this time of year, noting that there had been poor weather during the latest week. The spokesman said that natural float ranged from under 500 mln dlrs on Friday, for which he could give no reason, to nearly one billion dlrs on both Thursday and Wednesday. The Fed spokeman could give no reason for Thursday's high float, but he said that about 750 mln dlrs of Wednesday's float figure was due to holdover and transportation float at two widely separated Fed districts. For the week as a whole, he said that float related as of adjustments were "small," adding that they fell to a negative 750 mln dlrs on Tuesday due to a number of corrections for unrelated cash letter errors in six districts around the country. The spokesman said that on both Tuesday and Wednesday, two different clearing banks had system problems and the securities and Federal funds wires had to be held open until about 2000 or 2100 EST on both days. However, he said that both problems were cleared up during both afternoons and there was no evidence of any reserve impact. During the week ended Wednesday, 45 pct of net discount window borrowings were made by the smallest banks, with 30 pct by the 14 large money center banks and 25 pct by large regional institutions. On Wednesday, 55 pct of the borrowing was accounted for by the money center banks, with 30 pct by the large regionals and 15 pct by the smallest banks. The Fed spokesman said the banking system had excess reserves on Thursday, Monday and Tuesday and a deficit on Friday and Wedndsday. That produced a small daily average deficit for the week as a whole. For the two-week period, he said there were relatively high excess reserves on a daily avearge, almost all of which were at the smallest banks. Reuter  26-FEB-1987 16:43:13.65 acq usa F 
f0061reute u f BC-AMERICAN-EXPRESS-<AXP 02-26 0108  By Patti Domm, Reuter New York, Feb 26 - American Express Co remained silent on market rumors it would spinoff all or part of its Shearson Lehman Brothers Inc, but some analysts said the company may be considering such a move because it is unhappy with the market value of its stock. American Express stock got a lift from the rumor, as the market calculated a partially public Shearson may command a good market value, thereby boosting the total value of American Express. The rumor also was accompanied by talk the financial services firm would split its stock and boost its dividend. American Express closed on the New York Stock Exchange at 72-5/8, up 4-1/8 on heavy volume. American Express would not comment on the rumors or its stock activity. Analysts said comments by the company at an analysts' meeting Tuesday helped fuel the rumors as did an announcement yesterday of management changes. At the meeting, company officials said American Express stock is undervalued and does not fully reflect the performance of Shearson, according to analysts. Yesterday, Shearson said it was elevating its chief operating officer, Jeffery Lane, to the added position of president, which had been vacant. It also created four new positions for chairmen of its operating divisions. Analysts speculated a partial spinoff would make most sense, contrary to one variation on market rumors of a total spinoff. Some analysts, however, disagreed that any spinoff of Shearson would be good since it is a strong profit center for American Express, contributing about 20 pct of earnings last year. "I think it is highly unlikely that American Express is going to sell shearson," said Perrin Long of Lipper Analytical. He questioned what would be a better investment than "a very profitable securities firm." Several analysts said American Express is not in need of cash, which might be the only reason to sell a part of a strong asset. But others believe the company could very well of considered the option of spinning out part of Shearson, and one rumor suggests selling about 20 pct of it in the market. Larry Eckenfelder of Prudential-Bache Securities said he believes American Express could have considered a partial spinoff in the past. "Shearson being as profitable as it is would have fetched a big premium in the market place. Shearson's book value is in the 1.4 mln dlr range. Shearson in the market place would probably be worth three to 3.5 bilion dlrs in terms of market capitalization," said Eckenfelder. Some analysts said American Express could use capital since it plans to expand globally. "They have enormous internal growth plans that takes capital. You want your stock to reflect realistic valuations to enhance your ability to make all kinds of endeavors down the road," said E.F. Hutton Group analyst Michael Lewis. "They've outlined the fact that they're investing heavily in the future, which goes heavily into the international arena," said Lewis. "...That does not preclude acquisitions and divestitures along the way," he said. Lewis said if American Express reduced its exposure to the brokerage business by selling part of shearson, its stock might better reflect other assets, such as the travel related services business. "It could find its true water mark with a lesser exposure to brokerage. The value of the other components could command a higher multiple because they constitute a higher percentage of the total operating earnings of the company," he said. Lewis said Shearson contributed 316 mln in after-tax operating earnings, up from about 200 mln dlrs in 1985. Reuter  26-FEB-1987 16:44:35.29 money-supply usa RM V 
f0064reute b f BC-u.s.-money-supply-m-1 02-26 0093  NEW YORK, Feb 26 - U.S. M-1 money supply rose 2.1 billion dlrs to a seasonally adjusted 736.7 billion dlrs in the February 16 week, the Federal Reserve said. The previous week's M-1 level was revised to 734.6 billion dlrs from 734.2 billion dlrs, while the four-week moving average of M-1 rose to 735.0 billion dlrs from 733.5 billion. Economists polled by Reuters said that M-1 should be anywhere from down four billion dlrs to up 2.3 billion dlrs. The average forecast called for a 300 mln dlr M-1 rise. Reuter  26-FEB-1987 16:45:08.59 usa F 
f0065reute w f BC-GENERAL-BINDING-<GBND 02-26 0072  MINNEAPOLIS, Feb 26 - General Binding Corp said it reached a marketing agreement with Varitronic Systems Inc, a manufacturer and marketer of electronic lettering systems. Under terms of the agreement, General Binding will carry Varitronics' Merlin Express Presentation Lettering System, a portable, battery-operated lettering system which produces type on adhesive-backed tape. Reuter  26-FEB-1987 16:45:44.50 earn usa F 
f0067reute r f BC-LIBERTY-ALL-STAR-<USA 02-26 0085  WESTPORT, Conn., Feb 26 - Liberty All-Star Equity Fund said it declared an initial dividend of five cts per share, payable April two to shareholders of record March 20. It said the dividend includes a quarterly dividend of three cts a share and a special payout of two cts a share, which covers the period from November three, 1986, when the fund began operations, to December 31, 1986. The fund said its quarterly dividend rate may fluctuate in the future. Reuter  26-FEB-1987 16:47:45.09 usa F 
f0075reute r f BC-COCA-COLA-<KO>-UNIT-A 02-26 0060  NEW YORK, FEb 26 - Coca-Cola Co's Entertainment Business Sector Inc unit said it formed a joint venture with an affiliate of World Film Services to acquire, produce and distribute television programming around the world. World Film Services was formed by chairman John Heyman in 1963 to produce films. Reuter  26-FEB-1987 16:47:53.20 usa F 
f0076reute r f BC-FORD-MOTOR-CREDIT-<F> 02-26 0087  DEARBORN, MICH., Feb 26 - Ford Motor Co said its Ford Motor Credit Co on April One will redeem 4.0 mln dlrs of its 8.70 pct debentures due April 1, 1999. It said the debentures are redeemable at a price of 100 pct of the principal. Because April 1, 1987 is an interest payment date on the debentures, no accrued interest will be payable on the redemption date as part of the redemption proceeds. Debentures will be selected for redemption on a pro rata basis, Ford said. Reuter  26-FEB-1987 16:48:02.07 usa F 
f0077reute r f BC-STERLING-SOFTWARE-<SS 02-26 0056  DALLAS, Feb 26 - Sterling Software Inc said it received consent of a majority of the holders of its eight pct convertible sernior subordinated debentures required to purchase shares of its common. The company said it may now buy its stock at its discretion depending on market conditions. Reuter  26-FEB-1987 16:48:18.55 usa F 
f0079reute d f BC-<SCHULT-HOMES-CORP>-M 02-26 0095  NEW YORK, Feb 26 - Schult Homes Corp announced an initial public offering of 833,334 units at five dlrs per unit, said Janney Montgomery Scott Inc and Woolcott and Co, managing underwriters of the offering. They said each unit consists of one common share and one warrant to buy one-half share of common. The warrant will entitle holders to buy one-half common share at 5.50 dlrs per full share from March one, 1988, to September one, 1989, and thereafter at 6.50 dlrs per full share until March 1991, they said. Reuter  26-FEB-1987 16:48:26.74 usa F 
f0080reute d f BC-FLUOR-<FLR>-UNIT-GETS 02-26 0055  IRVINE, Calif., Feb 26 - Fluor Corp said its Fluor Daniel unit received a contract from Union Carbide Corp <UK> covering design, procurement and construction of a 108 megawatt combined cycle cogeneration facility in Seadrift, Texas. The value of the contract was not disclosed. Reuter  26-FEB-1987 16:48:35.83 usa F 
f0082reute d f BC-SUFFIELD-FINANCIAL-CO 02-26 0050  SUFFIELD, Conn., Feb 26 - Suffield Financial Corp said Jon Googel and Benjamin Sisti of Colonial Realty, West Hartford, Conn., purchased 175,900 shares of its stock for 3,416,624. The company said the purchase equals 5.2 pct of its outstanding shares. Reuter  26-FEB-1987 16:48:40.42 usa F 
f0083reute h f BC-<HIGH-POINT-FINANCIAL 02-26 0081  BRANCHVILLE, N.J., Feb 26 - <High Point Financial Corp> said it filed a registration statement with the Securities and Exchange Commission covering six mln dlrs principal amount of redeemable subordinated debentures due March one and cancellable mandatory stock purchase contracts requiring the purchase of 6.66 mln dlrs in common no later than March one. It said the offering will be underwritten by Ryan, Beck and Co, West Orange, N.J. Reuter  26-FEB-1987 16:48:55.38 carcasslivestock usachina G L 
f0084reute d f BC-CHINESE-PORK-OUTPUT-S 02-26 0115  WASHINGTON, Feb 26 - High feed prices will cause the Chinese to reduce hog herd growth and pork production this year, the U.S. Agriculture Department said. In its World Production and Trade Report, the department said hog numbers at the start of 1987 were estimated at 331.6 mln head, up slightly from 1986, and 10 mln head above earlier projections for 1987. Pork production in 1986 was up 4.2 pct to 17.25 mln tonnes, slightly below earlier estimates, it said. For 1987, production is projected to fall to 17.05 mln tonnes. Feed prices at the end of January were reported 35 to 40 pct above year-ago levels, the department said. Reuter  26-FEB-1987 16:50:26.50 usa nyse F 
f0088reute w f BC-LANDMARK-BANCSHARES-< 02-26 0058  ST. LOUIS, Feb 26 - Landmark Bancshares Corp said it expects its stock to begin trading on March 26 on the New York Stock Exchange. The company, whose stock has traded on the American Stock Exchange since November 1984, said it will retain its symbol, LBC, when trading begins on the Big Board. Reuter  26-FEB-1987 16:57:27.21 earn canada E F 
f0104reute u f BC-IVACO-SEES-MINIMAL-FI 02-26 0073  MONTREAL, Feb 26 - (Ivaco Inc) said price pressure on steel products, particularly in the U.S., and the recent increase in the value of the Canadian dollar is expected to result in "minimal" first quarter earnings. It said subsequent quarters should show substantial improvement from first quarter levels but 1987 earnings will not reach 1986 levels as long as those conditions continue. Ivaco earlier reported 1986 profit rose to 44.1 mln dlrs, after a one mln dlr extraordinary gain, from 35.1 mln dlrs the previous year. It said demand for the company's products are continuing at high levels and sales are expected to show further growth. Revenues last year rose to 1.94 billion dlrs from 1.34 billion dlrs in 1985. Reuter  26-FEB-1987 16:58:09.48 grain usa G 
f0109reute d f BC-grain-carloadings 02-26 0074  WASHINGTON, Feb 26 - U.S. grain carloadings totaled 26,108 cars in the week ended February 21, down 2.2 pct from the previous week but 22.8 pct above the corresponding week a year ago, the Association of American Railroads reported. Grain mill product loadings in the week totalled 11,382 cars, down 1.8 pct from the previous week but 7.6 pct above the same week a year earlier, the association said. Reuter  26-FEB-1987 16:59:25.38 acq usa F 
f0116reute d f BC-WRATHER 02-26 0109  WASHINGTON, Feb 26 - Industrial Equity (Pacific) Ltd, a Hong Kong investment firm, said it raised its stake in Wrather Corp to 816,000 shares, or 11.3 pct of the total outstanding common stock, from 453,300 shares, or 6.3 pct. In a filing with the Securities and Exchange Commission, Industrial Equity, which is principally owned by Brierley Investments Ltd, a publicly held New Zealand company, said it bought 362,700 Wrather common shares between Feb 13 and 24 for 6.6 mln dlrs. When it first disclosed its stake in Wrather earlier this month, it said it bought the stock for investment purposes. Reuter  26-FEB-1987 16:59:41.32 earn usa F 
f0117reute u f BC-COLECO-INDUSTRIES-INC 02-26 0051  WEST HARTFORD, Conn., FEb 26 - Shr loss 6.48 DLS VS PROFIT 23 CTS Net loss 110.6 mln vs profit 4.1 mln Revs 74.0 mln vs 152.0 mln Year Shr loss 6.52 dlrs vs profit 3.87 dlrs net loss 111.2 mln vs profit 64.2 mln Revs 501.0 mln vs 776.0 mln Reuter  26-FEB-1987 17:00:56.04 crude usa Y 
f0119reute u f BC-DIAMOND-SHAMROCK-(DIA 02-26 0097  NEW YORK, FEB 26 - Diamond Shamrock Corp said that effective today it had cut its contract prices for crude oil by 1.50 dlrs a barrel. The reduction brings its posted price for West Texas Intermediate to 16.00 dlrs a barrel, the copany said. "The price reduction today was made in the light of falling oil product prices and a weak crude oil market," a company spokeswoman said. Diamond is the latest in a line of U.S. oil companies that have cut its contract, or posted, prices over the last two days citing weak oil markets. Reuter  26-FEB-1987 17:01:28.10 acq usa F 
f0121reute u f BC-LIEBERT-CORP-<LIEB>-A 02-26 0051  COLUMBUS, Ohio, Feb 26 - Liebert Corp said its shareholders approved the merger of a wholly-owned subsidiary of Emerson Electric Co <EMR>. Under the terms of the merger, each Liebert shareholder will receive .3322 shares of Emerson stock for each Liebert share. Reuter  26-FEB-1987 17:02:22.77 earn E F 
f0125reute b f BC-******NORTHERN-TELECO 02-26 0009  ******Blah blah blah.  26-FEB-1987 17:05:08.18 earn usa F 
f0132reute u f BC-COLECO-INDUSTRIES-<CL 02-26 0083  WEST HARTFORD, Conn., FEb 26 - Coleco Industries Inc said it expects to return to profitability in 1987. Earlier, Coleco reported a net loss of 111.2 mln dlrs for the year ended December 31 compared to a profit of 64.2 mln dlrs in the year earlier. In a prepared statement, the company said the dramatic swing in operating results was due primarily to the steep decline in sales of Cabbage Patch Kids products from 600 mln dlrs to 230 mln dlrs. Coleco said it changed from a single product company to a more diversified organization through four major acquisitions last year. Products from the new acquisitions and other new product introductions are expected to enable it to return to profitability, it said. At the annual Toy Fair earlier this month, vice president Morton Handel said analysts' 1987 projected earnings of 90 cts a share on sales of 600 mln dlrs are reasonable. Reuter  26-FEB-1987 17:06:06.68 usa F 
f0135reute r f BC-OLIN-CORP-<OLM>-TO-EL 02-26 0074  STAMFORD, Conn., Feb 26 - Olin Corp said its board will elect in April John Johnstone Jr as its chief executive officer. The company said he will succeed John M Henske, who is also chairman. It said Johnstone, 54, is now president and chief operating officer. Henske, 53, has served as CEO since 1978 and chairman since 1980. He will continue as chairman until his retirement in June 1988. Reuter  26-FEB-1987 17:07:18.66 money-supply usa RM A 
f0139reute b f BC-FEDERAL-RESERVE-WEEKL 02-26 0099  FEDERAL RESERVE WEEKLY REPORT 1 - FEB 26 Two weeks ended Feb 25 daily avgs-mlns Net free reserves.............644 vs.....1,337 Bank borrowings...............680 vs.......425 Including seasonal loans.......81 vs........56 Including extended loans......299 vs.......265 Excess reserves.............1,025 vs.....1,497 Required reserves (adj)....55,250 vs....55,366 Required reserves..........55,513 vs....56,208 Total reserves.............56,538 vs....57,705 Non-borrowed reserves......55,859 vs....57,281 Monetary base.............244,199 vs...244,925 Reuter  26-FEB-1987 17:07:44.45 money-supply usa RM A 
f0141reute b f BC-FEDERAL-RESERVE-WEEKL 02-26 0095  FEDERAL RESERVE WEEKLY REPORT 2 - FEB 26 Two weeks ended Feb 25 Total vault cash...........25,237 vs....27,327 Inc cash equal to req res..22,834 vs....24,680 One week ended Feb 25 Daily avgs-Mlns Bank borrowings...............614 down.....131 Including seasonal loans.......88 up........14 Including extended loans......304 up........10 Float.........................511 down.....320 Balances/adjustments........2,101 down......67 Currency..................206,490 down.....519 Treasury deposits...........4,208 down......63 Reuter  26-FEB-1987 17:08:27.52 acq usa F 
f0143reute d f BC-GULF-APPLIED-TECHNOLO 02-26 0049  HOUSTON, Feb 26 - Gulf Applied Technologies Inc said it sold its subsidiaries engaged in pipeline and terminal operations for 12.2 mln dlrs. The company said the sale is subject to certain post closing adjustments, which it did not explain. Reuter  26-FEB-1987 17:09:47.78 acq usa F 
f0146reute r f BC-ROBESON 02-26 0113  WASHINGTON, Feb 26 - A group of affiliated Miami-based investment firms led by Fundamental Management Corp said it raised its stake in Robeson Industries Corp to 238,000 shares, or 14.6 pct of the total, from 205,000 or 12.8 pct. In a filing with the Securities and Exchange Commission, the group said it bought 32,800 Robeson common shares between Jan 26 and Feb 9 for 175,691 dlrs. The group said it may buy more shares and plans to study Robeson's operations. Afterwards it may recommend that management make changes in its operations. Fundamental Management Chairman Carl Singer was recently elected to the Robeson board. Reuter  26-FEB-1987 17:11:01.51 grain usa G C 
f0148reute d f BC-GAO-LIKELY-TO-SHOW-CE 02-26 0126  WASHINGTON, Feb 26 - A study on grain certificates due out shortly from the Government Accounting Office (GAO) could show that certificates cost the government 10 to 15 pct more than cash outlays, administration and industry sources said. Analysis that the GAO has obtained from the Agriculture Department and the Office of Management and Budget suggests that certificates cost more than cash payments, a GAO official told Reuters. GAO is preparing the certificate study at the specific request of Sen. Jesse Helms (R-N.C.), former chairman of the senate agriculture committee. The report, which will focus on the cost of certificates compared to cash, is scheduled to be released in mid March. The cost of certificates, said the GAO source, depends on the program's impact on the USDA loan program. If GAO determines that certificates encourage more loan entries or cause more loan forfeitures, then the net cost of the program would go up. However, if it is determined that certificates have caused the government grain stockpile to decrease, the cost effect of certificates would be less. GAO will not likely suggest whether the certificates program should be slowed or expanded, the GAO official said. But a negative report on certificates "will fuel the fire against certificates and weigh heavily on at least an increase in the certificate program," an agricultural consultant said. The OMB is said to be against any expansion of the program, while USDA remains firmly committed to it. Reuter  26-FEB-1987 17:11:26.97 venezuela RM A 
f0150reute u f BC-venezuela-seeks-flexi 02-26 0103  Caracas, feb 26 - venezuela is seeking a 'constructive and flexible' attitude from its creditor banks in current talks to reschedule 21 billion dlrs in foreign debt, finance minister manuel azpurua told a press conference. He declined to comment on meetings this week in new york between public finances director jorge marcano and venezuela's 13-bank advisory committee except to say, "they are progressing." Azpurua said venezuela has shown solidarity with brazil's decision to suspend payments, but each country must negotiate according to its own interest. Asked to comment on chile's agreement with its creditors today, which includes an interest rate margin of one pct over libor, azpurua said only, "that is good news." According to banking sources, the banks' latest offer to venezuela is also a one pct margin as against the last february's 1-1/8 pct rescheduling accord and the 7/8 pct Venezuela wants. Azpurua said four basic elements are being negotiated with the banks now: spread reduction, deferral of principal payments due in 1987 and 1988, lenghtening the 12-1/2 year repayment schedule, and debt capitalization schemes. Azpurua said the governent plans to pay 2.1 billion dlrs in public and private debt principal this year. It was due to amortize 1.05 billion dlrs under the rescheduling, and pay 420 mln dlrs in non-restructured principal, both public sector. He said venezuela's original proposal was to pay no principal on restructured debt this year, but is now insisting that if it makes payments they be compensated by new bank loans. The banking sources said the committee has been prepared to lower amortizations to around 400 mln dlrs this year, but that no direct commitment was likely on new loans. "debtors and bank creditors have a joint responsibility and there will be no lasting solution unless a positive flow of financing is guaranteed," azpurua said. However, he appeared to discard earlier venezuelan proposals for a direct link between oil income and debt payments, "because circumstances change too quickly." At the same time, he said the government is presently studying possible mechanisms for capitlizing public and private sector foreign debt, based on experience in other countries. The rules would be published by the finance ministry and the central bank. Reuter  26-FEB-1987 17:24:42.88 earn usa F 
f0164reute d f BC-DAHLBERG-INC-<DAHL>-4 02-26 0061  GOLDEN VALLEY, MINN., Feb 26 - Shr profit 10 cts vs loss seven cts Net profit 286,870 vs loss 156,124 Revs 10.0 mln vs 7,577,207 Year Shr profit five cts vs profit 42 cts Net profit 160,109 vs profit 906,034 Revs 38.1 mln vs 31.2 mln Avg shrs 2.9 mln vs 2.2 mln NOTE: 1986 year includes 53 weeks. Reuter  26-FEB-1987 17:32:15.34 earn usa F 
f0178reute r f BC-CITY-NATIONAL-CORP-<C 02-26 0023  BEVERLY HILLS, Calif., Feb 26 - Shr 16 cts vs 13 cts Pay April 15 Record March 31 Reuter  26-FEB-1987 17:32:49.67 earn canada E 
f0182reute r f BC-<PAGE-PETROLEUM-LTD> 02-26 0055  CALGARY, Alberta, Feb 26 - Shr loss 1.98 dlrs vs loss 5.24 dlrs Net loss 23.3 mln vs loss 44.8 mln Revs 13.6 mln vs 29.6 mln Note: 1986 net includes nine mln dlr extraordinary loss for oil and gas writedowns and unrealized foreign exchange losses vs yr-ago loss of 32.5 mln dlrs. Reuter  26-FEB-1987 17:33:05.21 usa F A RM 
f0184reute r f BC-THOMSON-MCKINNON-UNIT 02-26 0115  NEW YORK, Feb 26 - Thomson McKinnon Mortgage Assets Corp, a unit of Thomson McKinnon Inc, is offering 100 mln dlrs of collateralized mortgage obligations in three tranches that include floating rate and inverse floating rate CMOS. The floating rate class amounts to 60 mln dlrs. It has an average life of 7.11 years and matures 2018. The CMOs have an initial coupon of 7.0375 pct, which will be reset 60 basis points above LIBOR, said sole manager Thomson McKinnon. The inverse floater totals 4.8 mln dlrs. It has an average life of 13.49 years and matures 2018. These CMOs were given an initial coupon of 11-1/2 pct and priced at 104.40. Subsequent rates on the inverse floater will equal 11-1/2 pct minus the product of three times (LIBOR minus 6-1/2 pct). A Thomson officer explained that the coupon of the inverse floating rate tranche would increase if LIBOR declined. "The yield floats opposite of LIBOR," he said. The fixed-rate tranche totals 35.2 mln dlrs. It has an average life of 3.5 years and matures 2016. The CMOs were assigned a 7.65 pct coupon and par pricing. The issue is rated AAA by Standard and Poor's and secured by Federal Home Loan Mortgage Corp, Freddie Mac, certificates. Reuter  26-FEB-1987 17:33:25.81 earn usa F 
f0186reute d f BC-IDB-COMMUNICATIONS-GR 02-26 0030  LOS ANGELES, Feb 26 - Period ended December 31. Shr 25 cts vs 20 cts Net 801,000 vs 703,000 Revs 6,318,000 vs 3,926,000 Reuter  26-FEB-1987 17:33:29.55 earn usa F 
f0187reute s f BC-ARMOR-ALL-PRODUCTS-CO 02-26 0023  SAN FRANCISCO, Feb 26 - Qtly div ten cts vs ten cts Pay April 1 Record March 9 Reuter  26-FEB-1987 17:34:11.89 crude usa opec Y 
f0189reute r f BC-/OPEC-MAY-HAVE-TO-MEE 02-26 0105  BY TED D'AFFLISIO, Reuters NEW YORK, Feb 26 - OPEC may be forced to meet before a scheduled June session to readdress its production cutting agreement if the organization wants to halt the current slide in oil prices, oil industry analysts said. "The movement to higher oil prices was never to be as easy as OPEC thought. They may need an emergency meeting to sort out the problems," said Daniel Yergin, director of Cambridge Energy Research Associates, CERA. Analysts and oil industry sources said the problem OPEC faces is excess oil supply in world oil markets. "OPEC's problem is not a price problem but a production issue and must be addressed in that way," said Paul Mlotok, oil analyst with Salomon Brothers Inc. He said the market's earlier optimism about OPEC and its ability to keep production under control have given way to a pessimistic outlook that the organization must address soon if it wishes to regain the initiative in oil prices. But some other analysts were uncertain that even an emergency meeting would address the problem of OPEC production above the 15.8 mln bpd quota set last December. "OPEC has to learn that in a buyers market you cannot have deemed quotas, fixed prices and set differentials," said the regional manager for one of the major oil companies who spoke on condition that he not be named. "The market is now trying to teach them that lesson again," he added. David T. Mizrahi, editor of Mideast reports, expects OPEC to meet before June, although not immediately. However, he is not optimistic that OPEC can address its principal problems. "They will not meet now as they try to take advantage of the winter demand to sell their oil, but in late March and April when demand slackens," Mizrahi said. But Mizrahi said that OPEC is unlikely to do anything more than reiterate its agreement to keep output at 15.8 mln bpd." Analysts said that the next two months will be critical for OPEC's ability to hold together prices and output. "OPEC must hold to its pact for the next six to eight weeks since buyers will come back into the market then," said Dillard Spriggs of Petroleum Analysis Ltd in New York. But Bijan Moussavar-Rahmani of Harvard University's Energy and Environment Policy Center said that the demand for OPEC oil has been rising through the first quarter and this may have prompted excesses in its production. "Demand for their (OPEC) oil is clearly above 15.8 mln bpd and is probably closer to 17 mln bpd or higher now so what we are seeing characterized as cheating is OPEC meeting this demand through current production," he told Reuters in a telephone interview. Reuter  26-FEB-1987 17:34:23.04 earn usa F 
f0190reute r f BC-CENERGY-<CRG>-REPORTS 02-26 0080  DALLAS, Feb 26 - Cenergy Corp reported fourth quarter net income of 790,000 dlrs or seven cts per share on revenues of 7.7 mln dlrs. For the year it reported a net loss of 6.5 mln dlrs or 70 cts per share as a result of writedowns in the book value of its oil and gas properties in the first two quarters. Revenues were 37 mln dlrs. Following the company's fiscal year ended March 31, 1985, it changed to a calender year end. For the nine months ended Dec 31, 1985, it reported a loss of 63.4 mln dlrs or 6.54 dlrs per share on revenues of 47.6 mln dlrs, which it said was a result of noncash writedowns of oil and gas properties. For the year ended March 31, 1985, Cenergy reported net income of 3,705,000 dlrs or 36 cts per share on revenues of 71 mln dlrs. The company said its reserves during the year fell to five mln barrels from 6.4 mln barrels of oil and to 60.1 bilion cubic feet of gas from 63.7 BCF. It said these reserves did not disappear but are available to produce as prices recover. Reuter  26-FEB-1987 17:34:40.53 earn canada E F 
f0192reute u f BC-NORTHERN-TELECOM-LTD 02-26 0048  Toronto, Feb 26 - Two-for-one stock split Pay May 12 Note: split is subject to approval of shareholders at April 23 annual meeting. Company also said it will increase dividend on post-split shares to six cts from five cts. Reuter  26-FEB-1987 17:34:45.19 earn usa F 
f0193reute r f BC-TORCHMARK-<TMK>-AUTHO 02-26 0089  BIRMINGHAM, Ala., Feb 26 - Torchmark Corp said its board authorized the purchase from time to time of a significant portion of its 7-3/4 pct convertible subordinated debentures. As of February 25, it said there were outstanding 150 mln dlrs of the principal amount of debenures. The company also said it plans to redeem the debentures on June eight. It also declared a regular quarterly dividend of 25 cts per share on its common payable May one to shareholders of record April 10. Reuter  26-FEB-1987 17:34:52.72 usa F A 
f0194reute r f BC-PAINEWEBBER-GROUP-<PW 02-26 0064  NEW YORK, Feb 26 - Painewebber Group Inc said it will redeem all its outstanding 8-1/4 pct convertible subordinated debentures due 2008. It said it will redeem all the debentures for 1,060.50 dlrs plus accrued interest to the redemption date of March 30. The notes can be converted into common stock at a price of 42.35 dlrs per share. Reuter  26-FEB-1987 17:35:19.17 usa F 
f0197reute d f BC-R.P.-SCHERER-<SCHC>-S 02-26 0100  TROY, MICH., Feb 26 - R.P. Scherer Inc said it registered with the Securities and Exchange Commission a proposed public offering of 1.2 mln shares of convertible exchangeable preferred stock at 25 dlrs a share. In addition, the company said it is offering 200,000 preferred shares to Richard Manoogian, a Scherer director at 25 dlrs a share. Manoogian said he will buy the 200,000 shares. Proceeds from the offering will be used to repay debt and to fund research and development, it said. Underwriters are led by Goldman, Sachs and Co. Reuter  26-FEB-1987 17:35:52.41 usa F 
f0201reute d f BC-PARLUX-FRANGRANCES-CO 02-26 0094  NEW YORK, Feb 26 - <Parlux Fragrances Inc> said it completed the offering of 420,000 unis at 10 dlrs each through underwriters R.C. Stamm and Co and Rosenkrantz Lyon and Ross Inc. Each unit consists of two shares of common stock and one redeemable warrant, which entitles the holder to buy an additional common share for six dlrs between Feb 26, 1988 and Feb 26, 1992. The company creates and markets fragrances and beauty products, including the "Anne Klein" line, through department and specialty stores. Reuter  26-FEB-1987 17:35:59.59 earn usa F 
f0202reute h f BC-TECHAMERICA-GROUP-INC 02-26 0049  ELWOOD, KAN., Feb 26 - Shr loss six cts vs not available Net loss 562,231 vs profit 10,253 Revs 8,871,874 vs 9,549,308 Year Shr loss 60 cts vs loss nine cts Net loss 5,058,145 vs loss 766,185 Revs 34.3 mln vs 35.5 mln Reuter  26-FEB-1987 17:36:04.21 earn usa F 
f0203reute s f BC-WILFRED-AMERICAN-EDUC 02-26 0025  NEW YORK, Feb 26 - Qtly div three cts vs three cts prior Pay April three Record March 13 Reuter  26-FEB-1987 17:36:22.14 acq usa F 
f0204reute r f BC-EPSILON-DATA 02-26 0110  WASHINGTON, Feb 26 - A senior official of Drexel Burnham Lambert Inc and his father told the Securities and Exchange Commission they have acquired 258,591 shares of Epsilon Data Management Inc, or 9.4 pct of the total outstanding. Kenneth Thomas, senior vice president-investments at Drexel's Los Angeles office, and his father, retired university professor C.A. Thomas, said they bought the stake for 2.1 mln dlrs primarily for investment purposes. They said they may buy more stock or sell some or all of their stake, depending on market conditions, but have no plans to seek control of the company. Reuter  26-FEB-1987 17:36:45.13 usa F 
f0205reute d f BC-PROPOSED-OFFERINGS 02-26 0056  WASHINGTON, Feb 26 - The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Bio-Technology General Corp <BTGC> - Offering of 25 mln dlrs of convertible senior subordinated notes due March 1997 through Drexel Burnham Lambert Inc. Reuter  26-FEB-1987 17:37:22.69 usa F 
f0208reute d f BC-VARIAN-<VAR>,-SIEMENS 02-26 0091  PALO ALTO, Calif., Feb 26 - Varian Associates Inc and <Siemens A.G.> said they signed a letter of intent to form and jointly operate a nuclear magnetic resonance imaging spectroscopy business in Fremont, Calif. The systems are smaller than magnetic resonance imaging equipment currently used in clinical examinations, the companies said. They also said the products resulting from the venture are intended for use in small animal research, certain limited medical research and materials testing. Reuter  26-FEB-1987 17:37:57.87 usa F 
f0210reute r f BC-DU-PONT-<DD>-WINS-SUI 02-26 0093  WILMINGTON, Del., Feb 26 - Du Pont Co said the U.S. District Court for Delaware ruled that Phillips Petroleum Co had infringed on its patent covering certain melt-processable ethylene copolymer resins and polyethylene pipe systems. It also said the court ruled that Phillips infringed on various claims of its patent and enjoined Phillips from making, selling, or using any products covered by the patents. It said the court ordrered an accounting to determine damages due for past infringement by Phillips. Reuter  26-FEB-1987 17:38:47.04 acq canada F E 
f0214reute d f BC-<NOVA>-WINS-GOVERNMEN 02-26 0106  CALGARY, Alberta, Feb 26 - Nova, the Canadian company that owns 56 pct of Husky Oil Ltd, said it received government approval for a transaction under which <Union Faith Canada Holding Ltd> would buy a 43 pct stake in Husky. Nova said the Minister of Regional and Industrial Expansion, Michel Cote, ruled that Union Faith's purchase of the Husky stake would not result in Husky ceding control to a non-Canadian company. It said this ruling was a key condition in completing the deal. Union Faith is equally owned by <Hutchison Whampoa Ltd> and <Hong Kong Electric Holdings Ltd>. Under the agreement with Union Faith, Husky will become a private company with Union Faith and Nova each holding 43 pct of its stock. Nine pct of Husky would be owned by relatives of Li Ka-Shing, chairman of Hutchison, and five pct by the Canadian Imperial Bank of Commerice. Reuter  26-FEB-1987 17:41:08.82 usa F 
f0220reute d f BC-PRESIDENTIAL-AIRWAYS 02-26 0069  WASHINGTON, FEB 26 - Presidential Airways Inc said its joint marketing and services agreement with Texas Air Corp's <TXN> Continental Airlines unit was approved by the U.S. Department of Justice. According to the agreement, Presidential Airways will operate scheduled service under the name "Continental Express." The company, however, will remain independent. Reuter  26-FEB-1987 17:42:11.10 usa F 
f0223reute r f BC-ARMY-TO-RENEGOTIATE-I 02-26 0095  WASHINGTON, Feb 26 - The Army said it will renegotiate a 400 mln dlr contract with ITT Corp for jam-proof field radios after recent tests indicated the radios will work properly. Full production of 44,600 of the Single Channel Ground and Airborne Radio System (SINCGARS) sets has been delayed since the contract was let in 1983. The radios did not meet specifications of operating for 1,250 hours before failing. The Army said recent tests have indicated better reliability and that the contract will be renegotiated. REUTERS  26-FEB-1987 17:43:30.51 earn usa F 
f0231reute r f BC-POTOMAC-ELECTRIC-POWE 02-26 0073  WASHINGTON, Feb 26 - Oper shr 27 cts vs 29 cts Oper net 13.5 mln vs 14.6 mln Revs 104.6 mln vs 110.3 mln 12 mths Oper shr 4.10 dlrs vs 3.66 dlrs Oper net 205 mln vs 186.8 mln Revs 1.4 billion vs 1.3 billion NOTE: 1986 12 mths oper net excludes extraordinary gain of 21.7 mln dlrs or 46 cts per share from sale of Virginia service territory to Virginia Power. Reuter  26-FEB-1987 17:43:44.41 usa F A RM 
f0233reute r f BC-TORCHMARK-<TMK>-SELLS 02-26 0106  NEW YORK, Feb 26 - Torchmark Corp is raising 200 mln dlrs through an offering of sinking fund debentures due 2017 yielding 8.65 pct, said lead manager First Boston Corp. The debentures have an 8-5/8 pct coupon and were priced at 99.73 to yield 100 basis points over the off-the-run 9-1/4 pct Treasury bonds of 2016. Non-refundable for 10 years, the issue is rated A-2 by Moody's and AA by Standard and Poor's. A sinking fund starts in 1998 to retire 76 pct of the debentures by maturity, giving them an estimated maximum life of 22.4 years. Merrill Lynch co-managed the deal. Reuter  26-FEB-1987 17:43:59.12 acq usa F 
f0235reute h f BC-SUFFIELD-FINANCIAL-<S 02-26 0050  SUFFIELD, Conn., Feb 26 - Suffield Financial Corp said the Federal Reserve Board approved its application to acquire Coastal Bancorp <CSBK>, Portland, Me. Suffield said it still needs the approval of the superintendent of Maine's banking department. Reuter  26-FEB-1987 17:44:04.81 earn usa F 
f0236reute s f BC-AFG-INDUSTRIES-INC-<A 02-26 0023  IRVINE, Calif., Feb 26 - Qtly div four cts vs four cts Pay April 3 Record March 23 Reuter  26-FEB-1987 17:44:10.05 earn canada E F 
f0237reute r f BC-<GSW-INC>-YEAR-NET 02-26 0050  TORONTO, Feb 26 - Oper shr 2.16 dlrs vs 2.07 dlrs Oper net 8,037,000 vs 7,710,000 Revs 136.4 mln vs 133.3 mln Note: 1986 net excludes extraordinary gain of 13 mln dlrs or 3.50 dlrs shr from sale of <Camco Inc> shares vs yr-ago loss of 4.3 mln dlrs or 1.14 dlrs shr. Reuter  26-FEB-1987 17:44:15.81 earn usa F 
f0238reute s f BC-SANTA-ANITA-REALTY-<S 02-26 0029  LOS ANGELES, Feb 26 - Qtly div 51 cts vs 51 cts Pay April 9 Record March 25 (Santa Anita Realty Enterprises Inc) Reuter  26-FEB-1987 17:44:19.38 earn usa F 
f0239reute s f BC-LIQUID-AIR-CORP-<LANA 02-26 0022  SAN FRANCISCO, Feb 26 - Qtly div 40 cts vs 40 cts Pay March 31 Record March 16 Reuter  26-FEB-1987 17:44:33.62 earn canada E 
f0240reute r f BC-(MARSHALL-STEEL-LTD) 02-26 0060  MONTREAL, Feb 26 - Oper shr five cts vs 36 cts Oper net 508,000 vs 3,450,000 Revs 296.7 mln vs 298.0 mln Note: former name Marshall Drummond McCall Inc. Results include extraordinary gains of 952,000 dlrs or 11 cts per share in 1986 and 2,569,000 dlrs or 29 cts in 1985 from income tax reduction. Reuter  26-FEB-1987 17:45:00.59 earn canada E 
f0242reute r f BC-MARSHALL-STEEL-DETAIL 02-26 0049  MONTREAL, Feb 26 - (Marshall Steel Ltd), formerly Marshall Drummond McCall Inc, said it will report a 17 mln dlr net gain before taxes this year from the sale of its Drummond McCall division, which was sold effective January one. Reuter  26-FEB-1987 17:45:27.43 earn usa F 
f0243reute h f BC-MAYFAIR-INDUSTRIES-IN 02-26 0067  NEW YORK, Feb 26 - Oper shr 21 cts vs 18 cts Oper net 659,000 vs 523,000 Revs 7,866,000 vs 5,503,000 Avg shrs 3,141,217 vs 2,925,294 12 mths Oper shr 70 cts vs 46 cts Oper net 2,075,000 vs 1,358,000 Revs 25.9 mln vs 19.3 mln Avg shrs 2,980,247 vs 2,925,294 Note: Excludes tax gain of 295,000 dlrs for qtr and year. Reuter  26-FEB-1987 17:46:34.09 usa F 
f0244reute r f BC-(CORRECTED)---BANPONC 02-26 0077  NEW YORK, Feb 26 - BanPonce Corp said it privately placed 30 mln dlrs of its 8.25 pct senior notes due 1992 through Lincoln National Investment Management Co, New York Life Insurance Co and Dillon Read and Co Inc. It said proceeds will be used to increase working capital, for general corporate purposes, and for possible future acquisitions. - Corrects dollar figure of notes placed in item appearing Feb 25. Reuter  26-FEB-1987 17:48:58.95 usaargentina V RM 
f0245reute f f BC-******U.S.-TREASURY-S 02-26 0016  ******Blah blah blah.  26-FEB-1987 17:50:20.87 usa A 
f0247reute r f BC-U.S.-REGULATOR-CLOSES 02-26 0102  WASHINGTON, Feb 26 - The Federal Deposit Insurance Corp (FDIC) said three troubled banks in Texas and Louisiana were merged with healthy financial institutions. The FDIC said it subsidized the merger of Central Bank and Trust Co, Glenmora, La., with the healthy Peoples Bank and Trust Co, Natchitoches, La., after state regulators notified it that Central was in danger of failing. Central had assets of 28.3 mln dlrs. The FDIC said the deposits of the failed Farmers State Bank, Hart, Tex., were assumed by Hale County State Bank, Plainview, Tex. Farmers, with 9.6 mln dlrs in assets, was closed by Texas bank regulators. The deposits of the failed First National Bank of Crosby, Crosby, Tex., with total assets of 8.2 mln dlrs, were assumed by Central Bancshares of the South Inc, Birmingham, Ala., after First National was closed by federal bank regulators, the FDIC said. The number of federally insured banks to fail so far this year now totals 32, the FDIC said. Reuter  26-FEB-1987 17:51:17.75 usa F 
f0249reute d f BC-OLIN-<OLN>-NAMES-SUCC 02-26 0051  STAMFORD, Conn., Feb 26 - Olin Corp said John W. Johnstone Jr, 54, president and chief operating officer, will succeed John M. Henske as chief executive officer on April 30. Henske, 63, will continue as chairman until he retires in June 1988, Olin said. Reuter  26-FEB-1987 17:51:29.26 usa F 
f0250reute r f BC-DAEWOO-MOTOR-TO-BOOST 02-26 0108  WASHINGTON, Feb 26 - Daewoo Motor Corp, the Korea-based joint venture between Daewoo Group and General Motors Corp <GM>, said it will boost its 1987 imports of U.S. goods to 200 mln dlrs from 104 mln dlrs in 1986. The company said U.S. imports will account for about 35 pct of its total planned imports of 565 mln dlrs in 1987. Last year, U.S. goods accounted for about 19 pct of the company's imports, up from 6.5 pct in 1985. The products slated for import include automobile and machinery parts, catalytic converters, fuel injection systems and electronic emission testing systems, it said. Reuter  26-FEB-1987 17:55:36.88 usabrazil RM A F 
f0252reute u f BC-BANKS-EXPRESS-GRAVE-C 02-26 0111  NEW YORK, Feb 26 - Brazil's 14-bank advisory committee expressed "grave concern" to chief debt negotiator Antonio Padua de Seixas over the country's suspension of interest payments, according to a telex from committee chairman Citibank to creditor banks worldwide. Bankers said the diplomatic phrase belied the deep anger and frustration on the committee over Brazil's unilateral move last Friday and its subsequent freeze on some 15 billion dlrs of short-term trade and interbank lines. Seixas, director of the Brazilian central bank's foreign debt department, met the full panel on Tuesday and Wednesday. Seixas, who met again this morning with senior Citibank executive William Rhodes and representatives from committee vice-chairmen Morgan Guaranty Trust Co and Lloyds Bank Plc, told the banks that the government was preparing a telex to explain and clarify the freeze on short-term credits. The telex could be sent to creditors as early as today, bankers said. Despite the rising tempers, bankers said there are no plans for Brazilian finance minister Dilson Funaro to meet commercial bankers during his trip to Washington on Friday and Saturday. Funaro will be explaining Brazil's actions to U.S. Treasury Secretary James Baker, Federal Reserve Board chairman Paul Volcker and International Monetary Fund managing director Michel Camdessus before travelling to Europe at the weekend. Meanwhile, bankers were to hear in New York this afternoon what impact Brazil's hard line would have on Argentina, with an initial presentation from Argentine Treasury Secretary Mario Brodersohn on his country's request for 2.15 billion dlrs in new loans and a multi-year rescheduling agreement. Argentina has threatened to emulate Brazil's payments moratorium if the banks do not grant its request. Reuter  26-FEB-1987 17:57:05.23 nat-gas usaalgeria Y 
f0255reute r f BC-LNG-IMPORTS-FROM-ALGE 02-26 0108  BY NAILENE CHOU WIEST, Reuters NEW YORK, Feb 26 - Liquefied natural gas imports from Algeria are unlikely to happen in 1987 even though its economically feasible, U.S. industry analysts sources said. Youcef Yousfi, director-general of Sonatrach, the Algerian state petroleum agency, indicated in a television interview in Algiers that such imports would be made this year. "Contract negotiations, filing with the U.S. government and the time required to restart mothballed terminals will delay the import until 1988/1989," Daniel Tulis, a natural gas analyst with Shearson Lehman Bros. said. Sonatrach is currently negotiating with two of its former customers, Panhandle Eastern <PEL> and Distrigas, a subsidiary of Cabot Corp <CBT> to resume LNG export, company officials told Reuters. A third, El Paso Gas, a subsidiary of Burlington Northern <BNI>, has expressed no interest. Industry analysts said some imports of Algerian LNG were feasible. "On a marginal cost basis, the companies that have made capital investment to handle LNG import can operate profitably even in the current price environment," Frank Spadine, an energy economist with Bankers Trust, said. Analysts did not forsee a major impact from Algerian imports on U.S. prices which are currently soft but expected to trend higher by the end of 1987. A decline in gas drilling and the time lag to bring Gulf of Mexico productions onstream will tighten gas supplies and firm prices, Shearson's Tulis said. In this context, Algerian LNG import would be a source of supplemental supply to U.S. domestic production, he added. Company sources currently in talks with Algeria agree, saying that Algerian LNG would only serve to meet peak demand. Company sources also said that any negotiations with Algeria would emphasize looser arrangements which would relate volumes to market requirements and prices to U.S. spot market values. Reuter  26-FEB-1987 17:59:30.27 usa F A RM 
f0259reute r f BC-U.S.-FARM-CREDIT-RESC 02-26 0113  WASHINGTON, Feb 26 - The chairman of the Senate Agriculture subcommittee on credit said the panel will consider a farm credit rescue package by Easter even if the system and its regulator do not ask for help by then. "We're going to have a bill to markup, I guarantee you, before the Easter recess," Sen. David Boren (D-Okla.) said. Senate Majority leader Robert Byrd (D-W.Va.) wants recommendations on farm credit presented by April 11, when Congress is scheduled to break for Easter, Boren said. Boren urged the Farm Credit Administration (FCA), the system's regulator, to quickly make a formal request for aid. Under the 1985 Farm credit law passed by Congress, the FCA, as regulator, is to certify when the system has exhausted all its capital and needs federal government help. However, FCA chairman Frank Naylor said because much of the system's remaining capital is tied-up in legal action, he could not technically certify a rescue is needed this year and perhaps not even in 1988. The other Republican member of the three-man FCA board, Marvin Duncan, agreed. But Boren urged that even if FCA cannot technically certify aid is needed, it should request help informally. "We all know we need a capital infusion," Boren said. Boren and the FCA officials spoke at a hearing on the plight of the farm credit system. Also at the hearing, Brent Beesely, chief executive of the Farm Credit Council representing the system, said that at the end of 1986 the system had only 1.5 billion dlrs in working capital remaining after losses of 4.6 billion dlrs over the last two years. While he did not ask for government aid, Beesley indicated the situation is serious in some of the 12 system districts. "A significant number of banks and associations in the most economically depressed areas have and will continue to suffer extraordinary losses," Beesley said. Jim Billington, Democratic member of the FCA board, said the troubles of the system have encouraged the flight of some one billion dlrs per month from the system as borrowers repay loans. The system's total portfolio shrank to 54.6 billion dlrs by the end of last year from 66.6 billion the previous year. FCA board members said both borrowers and holders of bonds in the system need to be assured their money is safe. Naylor suggested the need for a federal assurance to bondholders. "The bondholders have no worry at this time," Billington said. Naylor said several proposals for revamping the farm credit system are circulating. The proposals range from consolidation of the system into a centralized national lender, to de-centralizing into semi-independent institutions. But He and the system spokesman Beesley were cautious about proposals for a secondary market on farm loans. Those proposals would package farm loans for resale to investors. Naylor and Beesley said a secondary market set-up outside the farm credit system would hurt the system. But Beesley said a secondary market with the farm credit system as its agent could be developed without Congressional legislation. Reuter  26-FEB-1987 18:00:08.86 usa reagan V 
f0261reute r f AM-REAGAN-CABINET 02-26 0091  By Sue Baker, Reuters WASHINGTON, Feb 26 - The Tower Commission's scathing comments on President Reagan's embattled chief of staff Donald Regan could signal the death knell to his White House tenure, but the impact of its strong criticism on two other top officials was less clear. Regan has come in for tough criticism for his handling of Reagan's worst political crisis since details of the covert arms sales to Iran and diversion of profits to Nicaraguan rebels first emerged last November. But criticism of the roles of Secretary of State George Shultz and Defense Secretary Caspar Weinberger, who said they opposed the Iran arms initiative yet failed to end it, had been muted until the release of the Tower Commission report. "Their obligation was to give the president their full support and continued advice with respect to the program or, if they could not in conscience do that, to so inform the president," the report said after a three-month probe. "Instead, they simply distanced themselves from the program. They protected the record as to their own positions on this issue. They were not energetic in attempting to protect the president from the consequences of his personal commitment to freeing the hostages." The report saved some of its most scathing language for Regan, a gruff former Wall Street executive and close personal friend of Reagan whose autocratic rule in the White House angered some top Reagan officials and, perhaps more importantly, Reagan's wife Nancy. "More than almost any chief of staff of recent memory, he asserted personal control over the White House staff and sought to extend this control to the national security adviser," said the report. Washington analysts said Regan's departure now appeared to be only a matter of timing. Many expected the president to announce it when he addresses the nation on the Tower Commission's findings next week. With Regan's departure apparently imminent and Poindexter and other key figures in the scandal already out of office, the report's tough criticism of Shultz and Weinberger could turn the spotlight on their future. Senate Republican leader Robert Dole, a key Reagan ally, told reporters the report disclosed "colossal blunders" and said people who had not served the president well should step aside, but he did not specify who should go. "It would seem to me that if you don't protect the president, you don't serve the president well, then you should move on," the Kansas Republican, a likely presidential candidate next year, said. One Republican strategist said he believed Regan would not be the only White House official to leave in the near future. Reuter  26-FEB-1987 18:02:58.44 cpignp switzerland oecd RM 
f0267reute r f BC-SWISS-ECONOMY-IN-EXCE 02-26 0104  PARIS, Feb 26 - Switzerland's economy, combining low unemployment, financial stability and a large external payments surplus, is in excellent condition and faces a satisfactory future, the Organisation for Economic Cooperation and Development, OECD, said. This reflected the success of stable and relatively tight fiscal and monetary policies followed by the government, it said. The OECD, in its annual report on Switzerland, picked out some signs of a slowdown in activity and a slight pick-up in inflation this year, but said these gave no cause for concern. The study forecast a decline in Gross Domestic Product growth to 1.75 pct this year from an estimated two pct in 1986 and a small rise in consumer price inflation to 1.25 pct after last year's sharp fall to 0.75 pct from 3.6 pct in 1985. But it said job creation should continue to absorb a modest increase in the workforce, leaving the unemployment rate unchanged at around one pct, the lowest in the 24-industrial nation OECD area. Assuming an average exchange rate of 1.71 Swiss francs to the dollar this year, against 1.69 in the second half of 1986, the report forecast a 2.75 pct rise in exports and a 3.5 pct rise in imports this year after rises of 3.25 pct and 6.5 pct respectively in 1986. The faster growth of imports compared with exports this year and last, reflecting buoyant private consumption, meant that the contribution of the foreign payments balance to GDP would shrink in both years. But "given Switzerland's large external surplus, there should be no concern if domestic demand grows faster than GDP...Which, if only in a small way, would contribute to improving international balances," the OECD said. Real private consumption appeared to have been unusually buoyant last year, with a 3.25 pct growth rate, after several years of relative weakness, it noted. In 1987 private consumption was expected to slow somewhat to a 2.25 pct growth rate, but should still outstrip overall GDP, it added. The outlook for investment in plant and machinery remained bright into 1987, and with capacity use at near record levels last year there was scope for rationalisation and modernisation in both the industry and service sectors, it said. As a consequence, growth in machinery and equipment investment is likely to decelerate only slightly this year after vigorous growth in 1986. But the report raised a questionmark over the prospects for tourism and the banking industry, two major service sector earners of foreign exchange. The long-term appreciation of the Swiss Franc, and the accelerating deregulation of foreign banking markets, could lead to a loss of international market share for both, it said. Particularly for the banks, "recent developments in international financial markets give rise to the question whether the Swiss financial system, which has shown substantial flexibility in the past, is adapting itself at the speed required ... To preserve its competitive position," it said. REUTER  26-FEB-1987 18:04:52.91 grainwheat usaussr lyng C G 
f0272reute d f BC-U.S.-WHEAT-BONUS-TO-S 02-26 0095  WASHINGTON, Feb 26 - The U.S. Agriculture Department is not actively considering offering subsidized wheat to the Soviet Union under the export enhancement program (EEP), senior USDA officials said. However, grain trade analysts said the proposal has not been ruled out and that an offer might be made, though not in the very near future. "The grain companies are trying to get this fired up again," an aide to Agriculture Secretary Richard Lyng said. "But there just isn't much talk about it, informally or formally." Most analysts interviewed by Reuters were more confident than USDA officials that bonus wheat would be offered to the Soviets, even though U.S. officials did not make such an offer when they held grain talks with Soviet counterparts earlier this week. But administration and private sources agreed that if the Reagan administration did decide to offer subsidized wheat to Moscow, it could take several months. "I just don't see any proposal like that sailing through any interagency process," the aide to Lyng said. "An export enhancement offer is not consummated overnight," said one former USDA official, who noted that the administration took three months to decide in favor of selling China wheat under the subsidy program. An official representing a large grain trade company said deliberations within USDA might be nudged along by members of Congress, a number of whom urged USDA this week to make a wheat subsidy offer to the Soviets. But Lyng's aide said that during a day-long visit to Capitol Hill yesterday, House members did not press the secretary on the subsidy question a single time. The administration's interagency trade policy review group, comprised of subcabinet-level officials, has not been asked to clear a request to offer Moscow wheat under the EEP, officials at the U.S. Trade Representative's Office said. In their talks this week, the two sides discussed the administration's previous EEP offer but did not talk about any new initiative. One USDA official who took part in the consultations this week described them as an exchange of "calm, basic, factual economics." Another USDA official said there was "not even an informal suggestion or hint" that the Soviets would live up to their pledge to buy four mln tonnes of wheat this year if they were granted more favorable terms. USDA and private sources agreed that consideration of an EEP initiative by interagency review groups likely would be delayed because of disarray within the White House stemming from the Iran arms affair. Reuter  26-FEB-1987 18:07:18.31 usaargentina F A RM 
f0283reute b f BC-U.S.-TREASURY-PART-OF 02-26 0088  WASHINGTON, Feb 26 - The U.S. Treasury said it was willing to participate with several other industrial countries in providing a 500 mln-dlr short-term bridge loan to Argentina. The Treasury announcecement did not name the other countries nor the amount of financing the United States was willing to supply. Argentina announced a wage and price freeze on Wednesday night and is negotiating with New York bankers for about 2.15 billion dlrs in new loans and other financing. "Our willingness to participate in this multilateral short-term financing indicates our support for Argentina's economic program to achieve sustainable growth and a viable balance of payments position," the Treassury statement said. In announcing a four-month wage and price freeze, Argentine officials said the country needed "a more serene climate" to carry out structural changes in the economy. But Argentina did not suspend interest payments on its foreign debts, as neighboring Brazil did last week. The Treasury said the U.S. share of bridge financing for Argentina would come from its Exchange Stabilization Fund. The one-page statement noted the International Monetary Fund expressed confidence in Argentina's economic policies and prospects by approving a new stand-by financing arrangement for it on February 18. "Argentina is expected to qualify for IMF balance-of-payments financing which would enable Argentina to repay a multilateral bridge loan and support the implementation of its economic program," the statement said. The latest Argentine action marked the second time in less than two years its government has used a wage and price freeze to restrain inflation. The debt talks in New York are being headed by Argentine Finance Minister Mario Brodersohn and are expected to last for several days. Along with new financing, Argentina reportedly wants lower interest rates on an existing total 53 billion dlrs in foreign debt and elimination of foreign banks' control over how some of the money is loaned in Argentina. Reuter  26-FEB-1987 18:09:37.31 canada E F 
f0293reute u f BC-COMPANIES-SET-BID-FOR 02-26 0096  MONTREAL, Feb 26 - (E.H. Industries (Canada) Inc) said it plans to bid its EH101 helicopter to replace Canada's fleet of Sea King aircraft. It said it is joining with (Bell Textron of Canada), Canadian Marconi Co (CMW), (IMP Group), and (Paramax Electronics Inc) and is supported by (Augusta S.P.A.), (Sikorsky Aircraft), and (Westland Group) in the bid. The Eh101, aimed at detecting and engaging submarines, was designed for use by the British and Italian navies and is due to enter service in 1992, E.H. said. Reuter  26-FEB-1987 18:11:09.21 earn usa F 
f0296reute r f BC-ALATENN-RESOURCES-INC 02-26 0043  FLORENCE, Ala., Feb 26 - Shr 75 cts vs 52 cts Net 1,699,124 vs 1,177,786 Revs 45.6 mln vs 31.6 mln 12 mths Shr 2.22 dlrs vs 2.20 dlrs Net 5,057,292 vs 4,961,085 Revs 130.2 mln vs 126.7 mln Reuter  26-FEB-1987 18:12:10.87 usa F 
f0299reute w f BC-AMERICAN-TRAVELLERS-< 02-26 0046  WARRINGTON, Pa., Feb 26 - American Travellers Corp said its American Travellers Life Insurance Co unit has expanded its operations. The company said the unit has begun marketing in Maryland, Idaho and the District of Columbia. Reuter  26-FEB-1987 18:12:35.70 acq canada E F 
f0300reute r f BC-VERSATILE-TO-SELL-UNI 02-26 0049  VANCOUVER, British Columbia, Feb 26 - <Versatile Corp> said it agreed in principle to sell its Alberta-based Versatile Noble Cultivators Co division to Vicon Inc, of Ontario, for undisclosed terms. The division manufactures tillage and spraying equipment. Reuter  26-FEB-1987 18:12:51.94 acq canada E 
f0301reute r f BC-VIDEOTRON-BUYS-INTO-E 02-26 0036  MONTREAL, Feb 26 - (Groupe Videotron Ltd) said it agreed to buy 50 pct of (Groupe Promexpo Inc), a company which specializes in product exhibits, for three mln dlrs. Reuter  26-FEB-1987 18:13:30.91 earn canada E F 
f0302reute r f BC-(MEMOTEC-DATA-INC)-YE 02-26 0045  MONTREAL, Feb 26 - Shr 81 cts vs 66 cts Net 5,011,000 vs 2,314,000 Revs 57.3 mln vs 17.6 mln Note: results include extraordinary gains of 1,593,000 dlrs or 26 cts a share in 1986 and 451,000 dlrs or 13 cts a share in 1985. Reuter  26-FEB-1987 18:14:26.62 usa F 
f0303reute r f BC-ROHR-INDUSTRIES-<RHR> 02-26 0093  CHULA VISTA, Calif., Feb 26 - Rohr Industries Inc said it has agreed on a three-year labor contract with the International Association of Machinists and Aerospace Workders, ending a strike that began ten days ago. Under the pact, 4,600 union members at Rohr's Chula Vista and Riverside plants will receive lump sum payments of ten pct, six pct and six pct annually, with the first payment going out in April. Rohr will also increase the pension benefit to 24 dlrs per month for each eligible year of service. Reuter  26-FEB-1987 18:16:23.86 crude F 
f0304reute b f BC-******TEXACO-CANADA-C 02-26 0015  ******Blah blah blah.  26-FEB-1987 18:16:27.92 usabrazil C G L M T 
f0305reute u f BC-/BANKS-EXPRESS-GRAVE 02-26 0111  NEW YORK, Feb 26 - Brazil's 14-bank advisory committee expressed "grave concern" to chief debt negotiator Antonio Padua de Seixas over the country's suspension of interest payments, according to a telex from committee chairman Citibank to creditor banks worldwide. Bankers said the diplomatic phrase belied the deep anger and frustration on the committee over Brazil's unilateral move last Friday and its subsequent freeze on some 15 billion dlrs of short-term trade and interbank lines. Seixas, director of the Brazilian central bank's foreign debt department, met the full panel on Tuesday and Wednesday. Seixas, who met again this morning with senior Citibank executive William Rhodes and representatives from committee vice-chairmen Morgan Guaranty Trust Co and Lloyds Bank Plc, told the banks that the government was preparing a telex to explain and clarify the freeze on short-term credits. The telex could be sent to creditors as early as today, bankers said. Despite the rising tempers, bankers said there are no plans for Brazilian finance minister Dilson Funaro to meet commercial bankers during his trip to Washington on Friday and Saturday. Funaro will be explaining Brazil's actions to U.S. Treasury Secretary James Baker, Federal Reserve Board chairman Paul Volcker and International Monetary Fund managing director Michel Camdessus before travelling to Europe at the weekend. Meanwhile, bankers were to hear in New York this afternoon what impact Brazil's hard line would have on Argentina, with an initial presentation from Argentine Treasury Secretary Mario Brodersohn on his country's request for 2.15 billion dlrs in new loans and a multi-year rescheduling agreement. Argentina has threatened to follow Brazil in declaring a payments moratorium if the banks do not grant its request. Reuter  26-FEB-1987 18:18:00.84 crude canada Y E 
f0308reute u f BC-TEXACO-CANADA-<TXC>-L 02-26 0064  NEW YORK, Feb 26 - Texaco Canada said it lowered the contract price it will pay for crude oil 64 Canadian cts a barrel, effective today. The decrease brings the company's posted price for the benchmark grade, Edmonton/Swann Hills Light Sweet, to 22.26 Canadian dlrs a bbl. Texaco Canada last changed its crude oil postings on Feb 19. Reuter  26-FEB-1987 18:19:17.65 usa F 
f0309reute d f BC-JURY-FINDS-FOR-DOW-<D 02-26 0090  PHILADELPHIA, Feb 26 - Dow Chemical Co's <DOW> Merrell Dow Pharmaceuticals Inc unit said a jury found that Bendectin did not cause the birth defects of a seven-year old boy whose mother took the drug during pregnancy. The anti-nausea drug has been used to treat morning sickness and was discontinued in 1983 amid allegations that the drug caused birth defects. Merrell said that to date there have been 12 other trials involving the drug, 10 in the U.S. and two in West Germany. It said verdicts or judgements in favor of the company were obtained in eight of the trials, one of which included about 1,150 plaintiffs. In two trials, Merrell said, verdicts were in favor of the plaintiffs. In one, it said, the trial judge overruled the jury's verdict and issued a judgement in favor of the company and a three judge panel of the Court of Appeals overturned the trial judge's ruling. Merrell is now awaiting a rehearing of this case by the full Court of Appeals. Of the remaining two trials, one ended in a mistrial and in the other the jury was unable to reach a verdict. At one point about 1700 lawsuits had been filed alleging the drug caused birth defects, said a company spokesman. He said about 300 lawsuits are pending. Bendectin was first introduced in the early 1950s, and the Merrell spokesman said a valid application to make and market the drug is with the Food and Drug Administration should the company decide it wants to reintroduce it. Reuter  26-FEB-1987 18:20:06.58 graincorn usa C G 
f0311reute r f BC-USDA-SAID-UNLIKELY-TO 02-26 0135  WASHINGTON, Feb 26 - The U.S. Agriculture Department probably will not offer a two dlr per bushel bonus payment to corn farmers for any erodible cropland they enrolled in the conservation reserve program last year, an aide to USDA Secretary Richard Lyng said. Sen. Charles Grassley (R-Iowa) said yesterday that Lyng had indicated he would consider giving those farmers the same two dlr bonus offered corn farmers who are signing up for the 1987 program this month. But the aide to Lyng said it was doubtful that the department would offer a retroactive bonus to farmers who enrolled land in the 10-year conservation reserve last year. "How are you going to stop the tide," he said, referring to demands that would follow from other commodity groups. Reuter  26-FEB-1987 18:21:01.50 crude usa Y 
f0313reute u f BC-MARATHON-PETROLEUM-RE 02-26 0075  NEW YORK, Feb 26 - Marathon Petroleum Co said it reduced the contract price it will pay for all grades of crude oil one dlr a barrel, effective today. The decrease brings Marathon's posted price for both West Texas Intermediate and West Texas Sour to 16.50 dlrs a bbl. The South Louisiana Sweet grade of crude was reduced to 16.85 dlrs a bbl. The company last changed its crude postings on Jan 12. Reuter  26-FEB-1987 18:23:47.08 usa F A RM 
f0317reute r f AM-NUCLEAR 02-26 0097  WASHINGTON, Feb 26 - The Nuclear Regulatory Commission (NRC) proposed to ease evacuation standards for nuclear plants, which could lead the way to the licensing of controversial plants in New York and New Hampshire. The NRC voted 4-1 to offer the rule for 60 days of public comment before it reconsidered it and set emergency evacuation standards of its own. Local authorites at the plants at Shoreham, Long Island, N.Y., and Seabrook, N.H., had refused to take part in evacuation planning, as required under existing NRC rules. They had claimed the region was too populated for any safe evacuation plan, holding up the NRC's authority to issue full power licenses of the two multi-billon dollar plants. A group of prominent politicians, led by New York Governor Mario Cuomo, charged at a public meeting on the proposed plan on Tuesday that NRC members were more interested in protecting the utilties'investments than protecting public safety. An NRC spokesman said after the meeting that the agency had not yet scheduled a meeting to vote on the proposed plan. In a statement today announcing its vote, the commission said the proposed rule change would enable the NRC to act in cases where local authorities refused to take part in emergency evacuation planning. Reuter  26-FEB-1987 18:24:04.23 earn canada E F 
f0318reute r f BC-<GEORGE-WESTON-LTD>-Y 02-26 0025  TORONTO, Feb 26 - Shr 2.31 dlrs vs 1.96 dlrs Net 119.0 mln vs 101.0 mln Revs 10.03 billion vs 8.88 billion Reuter  26-FEB-1987 18:25:45.94 graincornoat usa G 
f0321reute d f BC-RELIEF-TO-U.S.-CORN/O 02-26 0143  WASHINGTON, Feb 26 - U.S. farmers who in the past have grown oats for their own use but failed to certify to the government that they had done so probably will be allowed to continue planting that crop and be eligible for corn program benefits, an aide to Agriculture Secretary Richard Lyng said. Currently a farmer, to be eligible for corn program benefits, must restrict his plantings of other program crops to the acreage base for that crop. Several members of Congress from Iowa have complained that farmers who inadvertantly failed to certify that they had grown oats for their own use in the past now are being asked to halt oats production or lose corn program benefits. USDA likely will allow historic oats farmers to plant oats but not extend the exemption to all farmers, Lyng's aide said. Reuter  26-FEB-1987 18:27:09.26 money-supply new-zealand RM 
f0323reute u f BC-N.Z.-MONEY-SUPPLY-RIS 02-26 0091  WELLINGTON, Feb 27 - New Zealand's broadly defined, seasonally adjusted M-3 money supply grew an estimated 3.6 pct in December after rising a revised 2.4 pct in November and 4.04 pct in December last year, the Reserve Bank said in a statement. It said unadjusted M-3 increased to an estimated 30.07 billion N.Z. Dlrs from a revised 28.30 billion in November and 25.53 billion in December 1985. Year-on-year M-3 rose 17.77 pct from a revised 15.34 pct in November and 20.50 pct in December 1985. Narrowly defined year-on-year M-1 growth was 15.89 pct against a revised 27.52 pct in November and 12.3 pct a year earlier. M-1 grew to an estimated 5.03 billion dlrs against a revised 4.77 billion in November and 4.34 billion in December 1985. Year-on-year private sector credit grew 30.68 pct in December against a revised 22.30 pct in November and 23.2 pct in December 1985. Private sector credit grew to 22.24 billion dlrs from a revised 20.92 billion in November and 17.01 billion in December 1985. Reuter  26-FEB-1987 18:27:56.14 acq usa F 
f0324reute d f BC-CIRCUIT-SYSTEMS-<CSYI 02-26 0098  ADDISON, Ill., Feb 26 - Circuit Systems Inc said it has bought all of the stock of (Ionic Industries Inc) in exchange for 3,677,272 shares of its common. Following the exchange there will be 4,969,643 shares of Circuit Systems stock outstanding. Ionic holders will own about 74 pct of the outstanding stock of Circuit Systems, it said. Ionic, a maker of circuit boards, had revenues of 8.4 mln dlrs and pretax profits of 232,000 dlrs in 1986, up from revenues of 5.9 mln and pretax profits of 204,000 dlrs in 1985, Circuit Systems said. Reuter  26-FEB-1987 18:28:33.66 veg-oiloilseedmeal-feedsoybeansoy-oilsoy-meal usa C G 
f0326reute u f BC-FALLING-SOYBEAN-CRUSH 02-26 0123  by John Morrison, Reuters CHICAGO, Feb 26 - The sharp decline in soybean crush ratios seen in the last few weeks, accelerating in recent days, has pushed margins below the cost of production at most soybean processing plants and prompted many to cut output of soybean meal and oil. The weekly U.S. soybean crush rate was reported by the National Soybean Processors Association this afternoon at 21.78 mln bushels, down from the 22 mln bushel plus rate seen over the past two months when crush margins surged to the best levels seen in over a year. Active soymeal export loadings at the Gulf had pushed soybean futures and premiums higher, prompting a pick-up in the weekly crush number. However, much of that export demand seems to have been met, with most foreign meal users now waiting for the expected surge in shipments of new crop South American soymeal over the next few months. U.S. processors are now finding domestic livestock feed demand is very light for this time of year due to the milder than normal winter, so they steadily dropped offering prices in an attempt to find buying interest, soyproduct dealers said. Soybean meal futures have also steadily declined in recent weeks, setting a new contract low of 139.70 dlrs per ton in the nearby March contract today. "Many speculators down here bought March soymeal and sold May, looking for no deliveries (on first notice day tomorrow, which would cause March to gain on deferreds)," one CBT crush trader said. "But they've been bailing out this week because the March has been acting like there will be a lot delivered, if not tomorrow, then later in the month," he added. As a result of the weakness in soymeal, the March crush ratio (The value of soyproducts less the cost of the soybeans) fell from the mid 30s earlier this month to 22.6 cents per bushel today, dropping over five cents in just the last two days. The May crush ended today just over 17 cents, so no processors will want to lock in a ratio at that unprofitable level, the trader said. Hopefully, they will now start to cut back production to get supplies in line with demand, he added. With futures down, processors are finding they must bid premiums for cash soybeans, further reducing crush margins. A central Illinois processor is only making about 30 cents for every bushel of soybeans crushed at current prices, down sharply from levels just seen just a few weeks ago and below the average cost of production, cash dealers said. Most soybean processing plants are still in operation, with little talk of taking temporary down-time, so far. But processors will start halting production in the next few weeks it they continue to face unprofitable margins, they added. Reuter  26-FEB-1987 18:31:34.18 earn usa F 
f0335reute d f BC-MAIL-BOXES-ETC-<MAIL> 02-26 0048  SAN DIEGO, Calif., Feb 26 - Shr 23 cts vs 18 cts Net 509,144 vs 277,834 Revs 2,258,341 vs 1,328,634 Avg shrs 2,177,553 vs 1,564,605 Nine mths Shr 55 cts vs 42 cts Net 1,150,633 vs 649,914 Revs 6,169,168 vs 3,178,115 Reuter  26-FEB-1987 18:35:17.42 earn usa F 
f0341reute r f BC-MUNSINGWEAR-INC-<MUN> 02-26 0070  MINNEAPOLIS, Feb 26 - Shr loss 32 cts vs loss seven cts Net loss 1,566,000 vs loss 292,000 Revs 39.4 mln vs 34.7 mln Year Shr profit 79 cts vs profit 74 cts Net profit 3,651,000 vs profit 3,020,000 Revs 147.9 mln vs 114.2 mln Avg shrs 4,639,000 vs 4,059,000 Note: Per shr adjusted for 3-for-2 stock split July 1986 and 2-for-1 split May 1985. Reuter  26-FEB-1987 18:36:39.11 money-supply usa volcker A RM F 
f0343reute u f BC-FED-DATA-SUGGEST-STAB 02-26 0104  by Jeremy Solomons, Reuters NEW YORK, Feb 26 - Latest Federal Reserve data suggest that the central bank voted to maintain the existing degree of pressure on banking reserves at its regular policy-making meeting two weeks ago, money market economists said. "The numbers were a little disappointing, but I think we can take Mr Volcker at his word when he said that nothing had changed," said Bob Bannon of Security Pacific National Bank. Fed Chairman Paul Volcker told a Congressional committee last Thursday that the Fed's policy "has been unchanged up to today." Although Volcker's statement last Thursday allayed most fears that the Fed had marginally tightened its grip on reserves to help an ailing dollar, many economists still wanted confirmation of a steady policy in today's data, which covered the two-week bank statement period ended yesterday. This need for additional reassurance was made all the more acute by the Fed's decision yesterday to drain reserves from the banking system by arranging overnight matched sale-purchase agreements for the first time since April of last year, economists added. Today's data showed that the draining action was for a fairly large 3.9 billion dlrs, economists said. "The one thing that caught my eye were the relatively sizeable matched sales on Wednesday," said Dana Johnson of First National Bank of Chicago. "But there was a clearly justified need for them. There was nothing ominous." "The Fed couldn't have waited until the start of the new statement period today. If it had, it would have missed its (reserve) projections," added Security Pacific's Bannon. A Fed spokesman told reporters that there were no large single-day net miss in reserve projections in the latest week. Economists similarly shrugged off slightly higher-than- expected adjusted bank borrowings from the Fed's discount window, which averaged 310 mln dlrs a day in the latest week, compared with many economists' forecasts of about 200 mln. For the two-week bank statement period as a whole, the daily borrowing average more than doubled to 381 mln dlrs from 160 in the prior period. "There were wire problems at two large banks on Tuesday and Wednesday, so I am not too bothered about the borrowings," said Scott Winningham of J.S. Winningham and Co. The Wednesday average rose to 946 mln dlrs from 148 mln a week earlier. Lending further support to the stable policy view was a relatively steady federal funds rate of about six pct in the latest week and persistently high levels of excess reserves in the banking system, economists said. "For the time being, the Fed is following a neutral path, with fed funds at about six to 6-1/8 pct," said Darwin Beck of First Boston Corp. "I expect it to continue in that vein." "Excess reserves fell but they are still over a billion dlrs," added First Chicago's Johnson. Banks' excess reserves averaged 1.03 billion dlrs a day in the latest statement period, down from 1.50 billion in the previous one. After the Fed declined to assign a 1987 target growth range to the wayward M-1 money supply measure last week, little attention was paid to a steeper-than-anticipated 2.1 billion dlr jump in the week ended February 16. Looking ahead, economists said the Fed will have to tread a fine line between the dollar's progress in the international currency markets and the development of the domestic economy. "The market has perhaps exaggerated the dollar's effect on Fed policy," said First Chicago's Johnson. "Of course, it will take the dollar into account in future policy decisions but if the economy is weak, it won't pull back from easing." Reuter  26-FEB-1987 18:37:14.79 canada E A RM 
f0344reute r f BC-federal-industries-la 02-26 0054  Winnipeg, Manitoba, Feb 26 - <Federal Industries Ltd> said it launched a 40 mln Canadian dlr Eurobond issue for five years, bearing a coupon of 9-1/4 pct. Issue price is 100-5/8. Lead manager is Union Bank of Switzerland. Proceeds will be used to reduce short-term debt. Reuter  26-FEB-1987 18:39:22.63 usa nyse F 
f0346reute r f BC-NYSE-TO-STUDY-REGULAT 02-26 0113  NEW YORK, Feb 26 - The New York Stock Exchange said it will begin a review of regulation in the securities industry to determine what changes may be needed to maintain the integrity of the market and protect investors in coming years. The Exchange said the study is needed because of the rapid changes taking place in the securities industry. Among the factors it cited were the increase in trading volume, the proliferation of new trading instruments and the rise of computerized trading techniques. The Exchange did not mention, however, the insider trading scandal that has caught several top Wall Street executives. The NYSE said its study will be chaired by Richard R. Shinn, executive vice chairman of the Exchange and former chairman and chief executive officer of <Metropolitan Life Insurance Co.> Other members of the study committee include Charles F. Barbar, former chairman of Arsarco Inc <AR>, Roger Birk, chairman emeritus of Merrill Lynch and Co <MER> and Irwin Guttag, chairman of the NYSE special surveillance committee. The committee's report should be completed by the end of the year, the Exchange said. Reuter  26-FEB-1987 18:40:00.38 south-koreausa F 
f0347reute r f BC-KOREAN-AIR-ORDERS-MCD 02-26 0088  LOS ANGELES, Feb 26 - McDonnell Douglas Corp said Korean Air signed formal orders for four MD-11 jets with options to buy four more. The company said if the options are exercised, the purchase will total about one billion dlrs. McDonnell Douglas said on December 30 that Korean Air was among the initial 12 customers that placed orders and options for 92 aircraft valued at about nine billion dlrs. Delivery of the first MD-11 is scheduled for the summer of 1990. Korean Airlines currently operates four McDonnell Douglas DC-10 jets. In 1985, it ordered six MD-82s valued at about 150 mln dlrs. Four of these are in service and two will be delivered this year. Reuter  26-FEB-1987 18:45:03.70 usa F 
f0356reute u f AM-LAUNCH 02-26 0118  CAPE CANAVERAL, Fla., Feb 26 - An unmanned Delta rocket carrying a 57 mln dlr hurricane-tracking satellite blasted off here today in NASA's first successful launch of the year. The 116-foot (35.4-meter) Delta -- a reliable workhorse of the U.S. rocket fleet -- lifted off at 1805 EST from Cape Canaveral Air Force Station in a crucial test of the space agency's ability to recover from the Challenger disaster and a string of other failures. The launch came after two delays in two days. The first postponement was caused by fuel leak and the second by high-speed crosswinds that NASA officials say could have torn the rocket apart during fiery ascent. Reuter  26-FEB-1987 18:46:50.23 usajapan F 
f0358reute d f BC-JAPAN-TO-TRY-TO-OPEN 02-26 0103  WASHINGTON, Feb 26 - Japan has pledged to try to increase its purchase of U.S. car parts and also to exchange data to monitor the purchases, the Commerce Department said. U.S. negotiators opened talks last August with Japanese officials to try to force open the Japanese market to American-made parts in an effort to redress an estimated five billion dlr deficit in car parts trade. Japan had agreed to try to increase purchases of U.S.-made parts by Japanese car makers and to begin long term contracts for parts purchases, a Commerce department official said. He added that the agreement also said Japan agreed to try to devise a way to collect purchasing information in order to monitor progress in stepping up Japanese orders. The Commerce Department said in a statement last year that "statistics support the perception in the United States that American auto parts suppliers are not welcome in the inner circles of Japan's auto companies and their traditional suppliers." It estimated that while Japan's car firms sold almost five billion dlrs worth of parts in the United States in 1985, U.S. firms sold only one per cent of Japan's 55 billion dlr market. reuter  26-FEB-1987 18:50:30.59 cpignp france chirac RM 
f0361reute u f BC-FRANCE-ECONOMY 02-26 0098  By Brian Childs, Reuters PARIS, Feb 26 - France's right wing government is facing growing pressure to modify its economic policies after revising down its 1987 growth targets and revising up its inflation forecasts for this year. Moving reluctantly into line with most private sector forecasts the government yesterday raised its 1987 inflation estimate a half percentage point to 2.5 per cent and cut its economic growth estimate to between two and 2.8 per cent from a 2.8 per cent target written into the annual budget last september. Finance Minister Edouard Balladur said the revised figures would not push the government off its chosen mix of price deregulation, budget-cutting rigour and pay restraint. But Trade Union leaders served immediate notice they would push to protect the purchasing power of their members, raising the spectre of a vicious spiral of wage and price rises. And bank economists contacted by Reuters said they believed Prime Minister Jacques Chirac could be forced by slow growth and rising unemployment to reflate the economy later this year, perhaps in the autumn, to boost his prospects in Presidential elections due by April 1988. "The outlook is more worrying than it was a few weeks ago," said Societe Generale economist Alain Marais. "We have the impression it may be difficult to get even two per cent growth this year." "The big question is whether the government's policy of wage moderation will be maintained," he added. The government has set public sector wage rises at aboout 1.7 per cent this year, with a three per cent ceiling for rises justified by increased productivity. But the head of the socialist CFDT union federation, Edmond Maire, meeting with Chirac today, renewed union demands already rejected by the government for indexation clauses to be built into future pay contracts to safeguard workers against higher prices. Calling the government's policies "unbalanced and unjust," he also demanded investment incentives to boost employment. He announced after his meeting that Chirac had told him the government would spend two billion francs on a series of measures to boost employment and training Andre Bergeron, a widely respected leader of the moderate Force Ouvriere labour group, put similar demands to Chirac earlier in the week while the Communist-led CGT, the largest of France's unions, declared the defence of its members earnings its top priority. But with unemployment nearing 11 per cent last month, and still rising, government supporters and some economic analysts said they were confident Chirac could resist union pay demands. "Salary indexation was ended by the previous Socialist government and I dont think this administration is going to reverse that," commented Michel Develle, economist at recently-privatised Banque Paribas. Damaging transport and electricity strikes over Christmas and the New Year, partly blamed by the government for higher inflation, had undermined the unions power and popularity, he said. Develle said Paribas expected inflation to rise even more than the governments revised forecast, perhaps to 2.6 or 2.7 per cent this year against last years 2.1 per cent. "But that would still be an exceptional achievement considering that for the first time since the Second World War all french prices have been freed," he commented. Finance Ministry officials said that the governments abolition of price and rent controls last year was responsible for nearly a quarter of a 0.9 per cent surge in January living costs. But they claimed it was a once-off phenomenon that should have no knock-on impact on the rest of the year. Both Marais and Develle said they agreed with that, so long as the government kept wages under control. Prices could rise 1.5 per cent in the first three months of 1987 and two per cent in the first half year, fractionally more than forecast this week by the National Statistics Institute, INSEE, Marais said. But the second half year should be better, he added. Ironically, one side effect of higher inflation could be to help the government achieve its aim of cutting the state budget deficit, several analysts said. So long as public sector wages are held down, higher Value Added Tax receipts resulting from rising prices should offset a loss in revenues that otherwise would result from slower than expected growth, they said. Reuter  26-FEB-1987 19:00:16.13 earn usa F 
f0375reute h f BC-GTI-CORP-<GTI>-4TH-QT 02-26 0097  SAN DIEGO, Feb 26 - Oper shr profit six cts vs loss two cts Oper net profit 225,000 vs loss 91,000 Revs 4,814,000 vs 3,339,000 Year Oper shr profit 12 cts vs loss two cts Oper net profit 415,000 vs loss 73,000 Revs 16.4 mln vs 16.9 mln Note: data does not include from discontinued operations, 4th qtr 1986 gain of 632,000 dlrs, or 19 cts per shr; 4th qtr 1985 loss of 250,000 dlrs, or seven cts per shr; 1986 year loss of 4,054,000 dlrs, or 1.17 dlrs per shr; and 1985 year loss of 606,000 dlrs, or 17 cts per shr. Reuter  26-FEB-1987 19:00:57.33 crude usa F Y 
f0379reute d f BC-HOUSTON-OIL-<HO>-RESE 02-26 0101  HOUSTON, Feb 26 - Houston Oil Trust said that independent petroleum engineers completed an annual study that estimates the trust's future net revenues from total proved reserves at 88 mln dlrs and its discounted present value of the reserves at 64 mln dlrs. Based on the estimate, the trust said there may be no money available for cash distributions to unitholders for the remainder of the year. It said the estimates reflect a decrease of about 44 pct in net reserve revenues and 39 pct in discounted present value compared with the study made in 1985. Reuter  26-FEB-1987 19:07:11.11 earn usa F 
f0383reute h f BC-FAMOUS-RESTAURANTS-IN 02-26 0076  SCOTTSDALE, Ariz., Feb 26 - Shr loss 2.07 dlrs vs loss eight cts Net loss 11,445,000 vs loss 501,000 Revs 14.5 mln vs 11.0 mln Year Shr loss 1.91 dlrs vs profit four cts Net loss 12,427,000 vs profit 211,000 Revs 60.8 mln vs 51.5 mln Note: includes non-recurring charges of 12,131,000 dlrs in the 4th qtr and 12,500,000 dlrs in the year for reserve for underperforming restaurants. Reuter  26-FEB-1987 19:07:28.91 cpi japan RM 
f0385reute b f BC-JAPAN-CONSUMER-PRICES 02-26 0073  TOKYO, Feb 27 - Japan's unadjusted consumer price index (base 1985) fell 0.4 pct to 99.7 in January from the previous month, the government's Management and Coodination Agency said. The fall compares with a decline of 0.2 pct in December. The January index compared with a year earlier was down 1.1 pct, the first drop larger than 1.0 pct since it fell 1.3 pct in September 1958. Food costs rose in January from December but prices fell for clothing, footwear and utilities, causing the overall decline for the month. Housing, medical and educations costs increased in January compared with a year earlier but the cost of utilities, gasoline and vegetables fell. The unadjusted consumer price index for the Tokyo area (base 1985) was down 0.1 pct in mid-February from a month earlier at 100.2, reflecting lower prices for food, clothing and footwear. Compared with a year earlier, the index was down 0.7 pct due to lower vegetable, fuel oil and utility costs. REUTER  26-FEB-1987 19:16:39.70 earn usa F 
f0395reute u f BC-AVERY-<AVY>-SETS-TWO 02-26 0086  PASADENA, Calif., Feb 26 - Avery said its board authorizerd a two for one stock split, an increased in the quarterly dividend and plans to offer four mln shares of common stock. The company said the stock split is effective March 16 with a distribution of one additional share to each shareholder of record March 9. It said the quarterly cash dividend of 10.5 cts per share on the split shares, a 10.5 pct increase from the 19 cts per share before the split. Avery said it will register with the Securities and Exchange Commission shrortly to offer four mln additional common shares. It will use the proceeds to repay debt, finance recent acquisitions and for other corporate purposes. Reuter  26-FEB-1987 19:21:09.73 usa F 
f0398reute r f BC-MICROSOFT-CORP-<MSFT> 02-26 0093  SAN FRANCISCO, Feb 26 - Microsoft Corp said it obtained a federal court order to seize a shipment of over 15,000 unauthorized copies of its MS-DOS operating system labeled "Falcon MS-DOS". Federal marshals made the seizure in San Francisco on Feb 17. Microsoft said the U.S. District Court for the Northern District of California also granted it a temporary restraning order against Wetex International, Quadrant Corp and other persons, prohibiting copyright infringement by reproducing Microsoft software. Reuter  26-FEB-1987 19:26:09.34 money-supply RM A 
f0402reute u f BC--FEDERAL-RESERVE-WEEK 02-26 0087  FEDERAL RESERVE WEEKLY M-2 COMPONENTS - FEB 26 Week Feb 16 vs Feb 9 (DAILY AVG BILLIONS) Seasonally Adjusted Unadjusted Currency......186.9 vs 186.8....185.6 vs 185.7 Demand Depos..300.3 vs 300.0....291.5 vs 295.6 Other Check...242.9 vs 241.2....240.0 vs 242.7 Savings.......164.3 vs 163.2....162.8 vs 161.9 Small Time....362.2 vs 362.9....361.9 vs 362.7 MMDAs...(Commercial Bank Only)..378.2 vs 379.1 O/N Repos........................58.9 vs 59.0 O/N Euros........................18.6 vs 19.2 Reuter  26-FEB-1987 19:43:08.56 japan RM 
f0406reute u f BC-JAPAN-MARCH-BOND-COUP 02-26 0109  TOKYO, Feb 27 - The Finance Ministry has proposed informally to its bond underwriting syndicate that the coupon on the January 10-year government bond remain unchanged from February at five pct, underwriting sources said. They said the ministry wants a 0.50 yen raise in issue price from February to 99.50 to yield a record low 5.075 pct. The 5.151 pct February bond issue yield was itself a record low. The proposed issue volume is 475 billion yen against the 600 billion in February. The underwriting syndicate is likely to accept the proposed terms immediately, the sources said. REUTER  26-FEB-1987 20:43:17.89 usa G C 
f0420reute u f BC-U.S.-LAUNCHES-WEATHER 02-26 0100  CAPE CANAVERAL, Fla, Feb 26 - An unmanned Delta rocket carrying a 57 mln dlr weather observation satellite blasted off here today in the first U.S. Space launch of the year. The 116-foot rocket lifted off at 1805 local time (2305 GMT) and placed in orbit a 1,850 pound Geostationary Operational Environmental Satellite (GOES) to replace an identical one that was destroyed last May when a Delta rocket exploded after liftoff. Weather forecasters have had only a single satellite to cover the entire U.S. Since another GOES failed in orbit in August 1984. "We'll have both our weather eyes open again," said Thomas Pyke, a spokesman for the National Oceanic and Atmospheric Administration, which owns and operates the satellite. The smooth launching came after two delays in as many days. The first was caused by a fuel leak and the second by powerful crosswinds. The Delta was the first of six rockets scheduled for launch by the National Aeronautics and Space Administration this year. The launch marked the third straight success for the space program which was battered by a series of failures in 1986, including the loss of the Challenger shuttle. REUTER  26-FEB-1987 20:50:44.04 italy RM 
f0428reute u f BC-ITALIAN-COALITION-MEE 02-26 0115  ROME, Feb 27 - Leaders of Italy's five coalition parties have agreed to meet today to try to settle their differences which are mainly between Prime Minister Bettino Craxi's Socialist Party and the majority Christian Democrats. Sources close to Deputy Prime Minister Arnaldo Forlani said Craxi told him he would announce his resignation next week, allowing negotiations on a new government leader. The conservative Christian Democrats demanded the meeting after Craxi said a pact agreed during a government crisis last August, under which he was to hand over the prime minister's job next month, was unlikely to be fulfilled. Political sources said the Christian Democrats are likely to leave the coalition, which also includes Republicans, Social Democrats and Liberals, unless they get the prime minister's job. They said Craxi's plans to resign show he has decided to stick to the pact but talks on a leader, a government program and sharing of ministries will not be easy. They said there is dissent among the partners and that Forlani has been trying to mediate to avoid a crisis. They said the five are likely to begin talks tomorrow on whether formation of a new government is feasible or early elections are inevitable. Elections are not due until 1988. REUTER  26-FEB-1987 21:01:31.16 money-supply new-zealand russell RM 
f0432reute u f BC-N.Z.-CENTRAL-BANK-SEE 02-26 0112  WELLINGTON, Feb 27 - Monetary and credit growth rates in New Zealand are not expected to continue at current levels following the Reserve Bank's move to tighten liquidity late last year, Reserve Bank Governor Spencer Russell said. The monetary and credit growth figures for the December quarter were probably artifically inflated by unusually high growth in inter-institutional lending activity on the short term money market, Russell said in a statement. The bank moved to tighten liquidity when the initial signs of the recent expansion became apparent in September and October last year, Russell said. Broadly defined M-3 figures released today showed growth of 17.8 pct in the year ended December compared with 13.1 pct in the year ended September. Annual growth of private sector credit in calendar 1986 was 30.7 pct compared with 16.5 pct in the September year. "Available evidence suggests that corporate customers, including non-bank financial institutions, have been exploiting differences between interest rates on overdrafts with trading banks and rates in the call market," Russell said. REUTER  26-FEB-1987 21:05:51.60 money-fxinterest japan RM 
f0438reute u f BC-AVERAGE-YEN-CD-RATES 02-26 0096  TOKYO, Feb 27 - Average interest rates on yen certificates of deposit, CD, fell to 4.27 pct in the week ended February 25 from 4.32 pct the previous week, the Bank of Japan said. New rates (previous in brackets), were - Average CD rates all banks 4.27 pct (4.32) Money Market Certificate, MMC, ceiling rates for the week starting from March 2 3.52 pct (3.57) Average CD rates of city, trust and long-term banks Less than 60 days 4.33 pct (4.32) 60-90 days 4.13 pct (4.37) Average CD rates of city, trust and long-term banks 90-120 days 4.35 pct (4.30) 120-150 days 4.38 pct (4.29) 150-180 days unquoted (unquoted) 180-270 days 3.67 pct (unquoted) Over 270 days 4.01 pct (unquoted) Average yen bankers' acceptance rates of city, trust and long-term banks 30 to less than 60 days unquoted (4.13) 60-90 days unquoted (unquoted) 90-120 days unquoted (unquoted) REUTER  26-FEB-1987 21:08:04.81 uk RM 
f0440reute u f BC-BRITAIN'S-ALLIANCE-OP 02-26 0114  LONDON, Feb 27 - Britain's centrist Liberal-Social Democratic Alliance won a surprise victory in a parliamentary by-election in the London borough of Greenwich, a seat held by the main opposition Labour party for the past 50 years. Rosie Barnes, a Social Democratic member of the Alliance, won with 18,287 votes, or 53 pct, and a majority of 6,611 seats over her nearest rival, Labour candidate Deirdre Wood. The Conservatives came third with 3,852 votes. The result is expected to play a key role in determining when Prime Minister Margaret Thatcher, leader of the ruling Conservatives, might call a general election. REUTER  26-FEB-1987 21:26:39.44 japanusaukfrancehong-kong RM 
f0451reute u f BC-ECONOMIC-SPOTLIGHT-- 02-26 0110  By Jeff Stearns, Reuters TOKYO, Feb 27 - Japanese life insurers, trust banks and corporations, largely responsible for vitalising the U.S. Bond market in recent years, are now eyeing stockmarkets in the U.S., Britain, France and Hong Kong, fund managers said. After concentrating on U.S. Treasury bonds for years, Japanese institutions now see a risk in relying too much on similar types of investments, they said. Japan's net buying in overseas stockmarkets this year may double or triple to 15-20 billion dlrs from seven billion in 1986, Shigeki Matsumoto of Nikko Securities Co Ltd, said. Matsumoto, who manages Nikko's investment research and strategy, said there is evidence Japanese investors began poking around in foreign stockmarkets around July last year, but few made firm commitments until December when net purchases suddenly grew to 1.5 billion dlrs from around 500 mln in each of the previous five months. Net buying in 1985 totalled only 995 mln dlrs, he added. This sudden penchent for overseas stocks is likely to draw the widest smiles from Wall Street because about 70 to 80 pct of funds will be invested in the U.S. Markets, Matsumoto said. "The trend has been to head toward the U.S. Market, first because of its size and next because it has been successful over the last couple of years," said Eugene Atkinson, managing director of Goldman Sachs International Corp. Wall Street's massive turnover offers good liquidity, enabling institutions to easily move large volumes of money in and out of shares with the minimum of risk, he added. However, few see holdings in U.S. Treasuries dwindling. They will remain a Japanese mainstay, fund managers said. Institutions, particularly life insurance companies which concentrate on income rather than capital gains to cover payouts to policy holders, are unlikely to sell their U.S. Treasuries, but will put in less money, said Shinichi Kobuse, manager of Yamaichi Securities Co Ltd's international fixed income activities. There has been some selling of U.S. Bonds by short-term investors, but the selling is unlikely to amount to a significant chunk of Japanese bond holdings because the liquidity of the U.S. Bond market remains attractive, he added. Kobuse said investment managers are bullish on the U.S. Equity markets despite predictions by economists the U.S. Economy will remain sluggish over the next couple of months. Interest in Wall Street has been spurred by recent reports of significant growth in earnings by major U.S. Corporations, he added. Yutaka Hashimoto general manager of Nippon Life Insurance Co told an economic conference that insurance companies, which are responsible for 26 pct of Japanese funds in foreign securities, hold a lopsided proportion of U.S. Treasuries and intend to diversify into other instruments and currencies. Insurance companies have put the dominant portion of their funds into the U.S., But will now invest in Britain, West Germany, France and other countries, Hashimoto said. Lower interest rates worldwide make the returns on stocks relatively high in comparison with bonds and in light of the strength in the yen, the growth in stock values is expected to offset currency risks, he added. One trust bank official said his bank aims for a 10 pct annual return on overseas investments but the recent decline in U.S. 30-year bond yields has caused a rethink in pension fund investment stategies. The bank is looking more at U.S. Equities and European bonds, he said. Japanese investments in British equities have already turned active and the pace is likely to increase, said Andrew Sheaf, general manager of international equity activities at County Securities Japan. "Last week was the busiest week we had," he said. Investments are being spurred by the growth in profits of British companies and the recent deregulation of government controlled firms, fund managers said. Deregulation in France is also attracting Japanese interest, but stock investments there will be inhibited by worries about the French franc, they said. Investments in Hong Kong will be mostly short-term and speculative due to uncertainty about the colony's long-term political stability, they added. Japanese investors are cautious about West Germany, particularly as German firms, like their Japanese counterparts, are concerned about the recent dollar fall. Australia also poses some risks due to currency values, they added. REUTER  26-FEB-1987 22:06:38.85 taiwan RM 
f0469reute u f BC-TAIWAN-OFFSHORE-BANKI 02-26 0106  TAIPEI, Feb 27 - The combined assets of Taiwan's offshore banking units (obu) rose to 6.28 billion U.S. Dlrs at end- January from 6.21 billion in December and 6.34 billion in January 1986, the central bank said. A bank official told Reuters the increase came mainly from increased local obu borrowings from their Asian counterparts. He said the assets, held by 15 foreign and local banks, were mainly in U.S. Dollars with the remainder in certificates of deposit and bonds. About 90 pct of the assets came from Asia and the rest from North America and Europe, he added. REUTER  26-FEB-1987 22:22:02.97 interest japan RM 
f0476reute u f BC-JAPAN-EXPECTED-TO-CUT 02-26 0098  TOKYO, Feb 27 - Japan is expected to cut the base lending rate for state financial institutions to 5.5 pct from 6.2 as part of the recent pact by major industrial nations in Paris, Finance Ministry sources said. They said the cut is based on a revision of the Trust Fund Bureau Law, which should be approved by parliament on March 3, abolishing the 6.05 pct minimum interest rate on deposits with the bureau. The bureau channels funds to government financial institutions for public works and other official uses, they said. The base lending rate for state bodies such as the Japan Development Bank, People's Finance Corp and the finance corporations of local public enterprises usually moves in tandem with long-term prime rates, the sources said. However, it was impossible for them to follow the last cut, to 5.8 pct from 6.2 pct on January 28, because the Trust Fund Bureau rate was legally set at 6.05 pct. The ministry will abolish the minimum rate and introduce a market-related one to resolve the problem and stimulate the domestic economy, they said. On Tuesday, the ministry allowed long-term bankers to cut their prime to a record low of 5.5 pct, effective February 28. The move suggested it had reached agreement with depositors using the bureau, the postal savings system of the Posts and Telecommunications Ministry and the Japan welfare annuity of the Ministry of Health and Welfare, the sources said. These ministries are trying to determine which market rates should be considered when setting the bureau's deposit rate, the ministry sources said. Coupon rates on new 10-year government bonds, minus 0.1 percentage points, is the likeliest choice, they added. REUTER  26-FEB-1987 22:50:01.31 japan RM 
f0487reute u f BC-JAPAN-HOUSE-BUDGET-TA 02-26 0098  TOKYO, Feb 27 - Japan's ruling and opposition parties agreed to reopen talks on the budget for the fiscal year ending March 31 1988 when the Lower House Budget Committee meets next Tuesday, a parliamentary official said. He said officials of the ruling Liberal Democratic Party and the opposition parties agreed at a meeting of the committee's board of directors. Strong opposition objection to government tax reform proposals including a controversial sales tax has delayed deliberation by the Lower House Budget Committee. REUTER  26-FEB-1987 22:54:22.27 gnpbop australia keating RM 
f0490reute u f BC-AUSTRALIA'S-KEATING-C 02-26 0101  CANBERRA, Feb 27 - Domestic demand is now expected to make no contribution to Australian economic growth in fiscal 1986/87, ending June 30, while net exports will account for all of the overall increase, Treasurer Paul Keating said here. However, he did not say in his speech to the Economic Planning Advisory Council (EPAC) if the forecast 2.25 pct rise in gross domestic product (gdp) had been revised. But Keating said domestic demand could fall slightly this financial year and net export growth will provide the total source of gdp growth. The August budget had forecast domestic demand would contribute 0.75 percentage points to non-farm gdp growth of 2.5 pct while net exports would account for 1.75 points. Keating said the overall impact of the changed economic parameters is welcome as it appears to have contributed to a slightly more rapid correction in the current account deficit than first anticipated. "The government initially forecast a current account deficit for 1986/87 of 14.75 billion -- our present expectation is that the result will be somewhat lower, around 14 billion," he said. Partial indicators released since the last meeting of EPAC in December indicate that the 1986/87 budget strategy is broadly on track, Keating said. "They indicate that domestic demand has been a little more sluggish than was expected at budget time," he said. "On the other hand, net exports seem to be expanding by more than expected at budget time, and this is underpinning growth in domestic production and employment." Keating said it now seems likely that the 1986/87 inflation rate will exceed the budget forecast of eight pct. "Nevertheless, there is likely to be a marked slowing in inflation over coming quarters as depreciation and budgetary effects wane," he said. Keating said the government expects economic growth to pick up moderately in 1987/88 due to a further significant rise in net exports and a very moderate but positive contribution from private domestic demand. He said domestic demand growth will be due to a strengthening in real household disposable income. The moderate rise in economic growth next financial year should be sufficient to sustain employment growth at a level broadly equivalent to that of the current fiscal year. "The current account deficit will continue to show improvement in 1987/88," Keating said. "As the impact of the exchange rate depreciations of recent years recede further, and given continued effective wage restraint, inflation should moderate markedly in 1987/88," he said. REUTER  26-FEB-1987 23:06:45.13 grainrice thailand G C 
f0498reute u f BC-THAI-RICE-EXPORTS-RIS 02-26 0103  BANGKOK, Feb 27 - Thailand exported 84,960 tonnes of rice in the week ended February 24, up from 80,498 the previous week, the Commerce Ministry said. It said government and private exporters shipped 27,510 and 57,450 tonnes respectively. Private exporters concluded advance weekly sales for 79,448 tonnes against 79,014 the previous week. Thailand exported 689,038 tonnes of rice between the beginning of January and February 24, up from 556,874 tonnes during the same period last year. It has commitments to export another 658,999 tonnes this year. REUTER  26-FEB-1987 23:36:10.22 soybeanred-beanoilseed japan G C 
f0506reute u f BC-TOKYO-GRAIN-EXCHANGE 02-26 0117  TOKYO, Feb 27 - The Tokyo Grain Exchange said it will raise the margin requirement on the spot and nearby month for U.S. And Chinese soybeans and red beans, effective March 2. Spot April U.S. Soybean contracts will increase to 90,000 yen per 15 tonne lot from 70,000 now. Other months will stay unchanged at 70,000, except the new distant February requirement, which will be set at 70,000 from March 2. Chinese spot March will be set at 110,000 yen per 15 tonne lot from 90,000. The exchange said it raised spot March requirement to 130,000 yen on contracts outstanding at March 13. Chinese nearby April rises to 90,000 yen from 70,000. Other months will remain unchanged at 70,000 yen except new distant August, which will be set at 70,000 from March 2. The new margin for red bean spot March rises to 150,000 yen per 2.4 tonne lot from 120,000 and to 190,000 for outstanding contracts as of March 13. The nearby April requirement for red beans will rise to 100,000 yen from 60,000, effective March 2. The margin money for other red bean months will remain unchanged at 60,000 yen, except new distant August, for which the requirement will also be set at 60,000 from March 2. REUTER  1-MAR-1987 01:30:29.50 philippines ongpin RM 
f0355reute b f BC-MANILA-SAID-TO-OFFER 03-01 0116  MANILA, March 1 - The Philippines will offer its commercial bank creditors an innovative pricing plan that will make debt payments through certificates of indebtedness as an alternative to cash, the authoritative Business Day newspaper said. Finance Secretary Jaime Ongpin told reporters yesterday the alternative proposal is designed to avoid an impasse when debt rescheduling talks reopen in New York on Tuesday. He did not give details but said, "It is a very useful alternative and in the end will permit the banks to say that they achieved their pricing target and will likewise permit the Philippines to say exactly the same thing." Quoting negotiation documents to be presented to the country"s 12-bank advisory committee, Business Day said the debt certificates will carry maturities of five or six years. It said the certificates will be classified as zero-coupon bonds or promissory notes with no interest but priced at a considerable discount from their redemption price. It said the debt bonds will entitle holder banks to a guaranteed return on both interest and principal since no payment of any kind is made until the bond matures. It said a bank can sell the bonds on the secondary bond market for either dlrs or pesos depending on its requirement. The documents said peso proceeds can be invested in selected industries under the Philippines" debt/equity program. Ongpin said Manila is sticking to its demand of a spread of 5/8 percentage points over London Interbank Offered Rates (LIBOR) for restructuring 3.6 billion dlrs of debt repayments. "(The proposal) will give the banks a choice of 5/8ths or the alternative," Ongpin said. "Our representatives have gone to Washington to the (International Monetary) Fund, the (World) Bank, the Fed (Federal Reserve Board) and the (U.S.) Treasury to brief them in advance on this alternative and it has generally been positively received." "We don"t believe that there is going to be a problem on the accounting side," Ongpin said. "We have run this alternative proposal to the accounting firms. Neither have the government regulators indicated that there will be a problem." REUTER  1-MAR-1987 01:41:26.47 usa reagan RM 
f0359reute u f BC-POLL-MAJORITY-DISAPPR 03-01 0119  NEW YORK, March 1 - A majority of Americans disapprove of the way Ronald Reagan has handled the presidency and one-third believe he should resign, a new poll said. The poll conducted by Newsweek magazine said 53 pct of the respondents gave Reagan a negative performance rating, nearly double his disapproval rating before the Iran/Contra scandal. The magazine said, however, that Reagan remained personally popular. By better than a three-to-one ratio, a majority of those polled said they liked Reagan on a personal level. And Newsweek said 52 per cent of those questioned believed the administration"s accomplishments outweighed its failures. REUTER  1-MAR-1987 01:49:03.52 coffee ukcolombia ico-coffee T C 
f0360reute b f BC-PRODUCER-SPLIT-HEATS 03-01 0093  By Lisa Vaughan, Reuters LONDON, March 1 - Talks on the possibility of reintroducing global coffee export quotas have been extended into today, with sparks flying yesterday when a dissident group of exporters was not included in a key negotiating forum. The special meeting of the International Coffee Organization (ICO) council was called to find a way to stop a prolonged slide in coffee prices. However, delegates said no solution to the question of how to implement quotas was yet in sight. World coffee export quotas -- the major device used to regulate coffee prices under the International Coffee Agreement -- were suspended a year ago when prices soared in reaction to a drought which cut Brazil"s output by nearly two thirds. Brazil is the world"s largest coffee producer and exporter. Producers and consumers now are facing off over the question of how quotas should be calculated under any future quota distribution scheme, delegates said. Tempers flared late Saturday when a minority group of eight producing countries was not represented in a contact group of five producer and five consumer delegates plus alternates which was set up to facilitate debate. The big producers "want to have the ball only in their court and it isn"t fair," minority producer spokesman Luis Escalante of Costa Rica said. The majority producer group has proposed resuming quotas April 1, using the previous ad hoc method of carving up quota shares, with a promise to try to negotiate basic quotas before September 30, delegates said. Their plan would perpetuate the status quo, allowing Brazil to retain almost all of its current 30 pct share of the export market, Colombia 17 pct, Ivory Coast seven pct and Indonesia six pct, with the rest divided among smaller exporters. But consuming countries and the dissident producer group have tabled separate proposals requiring quotas be determined by availability, using a formula incorporating exportable production and stocks statistics. Their proposals would give Brazil a smaller quota share and Colombia and Indonesia a larger share, and bring a new quota distribution scheme into effect now rather than later. Brazil has so far been unwilling to accept any proposal that would reduce its quota share, delegates said. Delegates would not speculate on prospects for agreement on a quota package. "Anything is possible at this phase," even adjournment of the meeting until March or April, one said. If the ICO does agree on quotas, the price of coffee on the supermarket shelf is not likely to change sinnificantly as a result, industry sources said. Retail coffee prices over the past year have remained about steady even though coffee market prices have tumbled, so an upswing probably will not be passed onto the consumer either, they said. REUTER  1-MAR-1987 02:02:38.54 interest italy RM 
f0365reute u f BC-ITALIAN-TREASURY-CUTS 03-01 0076  ROME, March 1 - The Italian treasury said annual coupon rates payable March 1988 on two issues of long-term treasury certificates (CCTs) would be cut by about four percentage points compared with rates this March. Coupon rates on 10-year certificates maturing March 1995 will fall to 9.80 pct from 13.65 pct and rates on 10-year issues maturing in March 1996 would fall to 10.05 pct from 14.30 pct. The Treasury also cut by 0.60 point six-monthly coupons payable this September on six issues maturing between September 1988 and September 1991. The issues carry terms of between five and seven years and will have coupon rates of between 4.85 and 5.65 pct in September compared with 5.45 and 6.25 pct this March. REUTER  1-MAR-1987 02:07:44.88 uk RM 
f0367reute u f BC-BRITISH-CONSERVATIVES 03-01 0113  LONDON, March 1 - Britain"s ruling Conservatives have enlarged their lead over the opposition Labour Party, according to results of two opinion polls released on Saturday. A Market & Opinion Research International (MORI) poll conducted for The Sunday Times showed the Conservatives with a six point lead, while a poll by Telephone Surveys Limited for The Sunday Express found them to be four points ahead. The Sunday Express poll is the first conducted since the Social Democratic Party scored an upset victory on Thursday in a parliamentary by-election in the former Labour stronghold of Greenwich, near London. The MORI poll, conducted in the six days leading up to the by-election, showed the Conservatives with 41 pct of the vote, Labour with 35 pct and the Alliance of Social Democrats and Liberals with 21 pct. The Sunday Express said its poll, conducted on Friday, found the Conservatives ahead with 35.6 pct of the vote, Labour with 31.9 pct and the Alliance with 31.4 pct. A Harris poll published in The Observer newspaper last Sunday gave the Conservatives only a two-point lead over Labour. In that survey, the Conservatives had the support of 39 pct of the voters, Labour 37 pct and the Alliance 23 pct. REUTER  1-MAR-1987 03:09:07.13 grainwheatriceveg-oilsoybeansugarrubbercopra-cakecornpalm-oilpalmkernelcoffeeteaplywoodsoy-mealcotton indonesia C G L M T 
f0369reute u f BC-INDONESIAN-AGRICULTUR 03-01 0105  JAKARTA, March 1 - Indonesia"s agriculture sector will grow by just 1.0 pct in calendar 1987, against an estimated 2.4 pct in 1986 as the production of some commodities stagnates or declines, the U.S. Embassy said in a report. Production of Indonesia"s staple food, rice, is forecast to fall to around 26.3 mln tonnes from an embassy estimate of 26.58 mln tonnes in 1986, according to the annual report on Indonesia"s agricultural performance. The government officially estimates 1986 rice production at 26.7 mln tonnes, with a forecast 27.3 mln tonnes output in 1987. The report says wheat imports are likely to fall to 1.5 mln tonnes in calendar 1987 from 1.69 mln tonnes in 1986 because of a drawdown on stocks. "Growth prospects for agriculture in 1987 do not look promising as rice production is forecast to decline and the production of sugarcane, rubber and copra show little or no gain," the report says. "The modest overall increase which is expected will be due to significant gains in production of corn soybeans, palm oil and palm kernels." Constraints to significant overall increases in agricultural output include a shortage of disease resistant seeds, limited fertile land, insect pests and a reluctance by farmers to shift from rice production to other crops, the report underlines. The fall in rice production is caused by an outbreak of pests known as "wereng" or brown plant hoppers in 1986 which largely offset gains in yields. The outbreak has forced the government to ban the use of 57 insecticides on rice because it was believed the wereng are now resistant to these varieties, and to use lower-yielding, more resistant rice types. The government is depending on increased production of export commodities such as coffee, tea, rubber, plywood and palm oil to offset revenue losses brought on by falling crude oil prices. Palm oil production is expected to increase by over 7.0 pct in 1987 to 1.45 mln tonnes from 1.35 mln, with exports rising to an estimated 720,000 tonnes from 695,000 tonnes in 1986, the report says. But while production of soybeans in 1987/88 (Oct-Sept) will rise to 1.075 mln tonnes from 980,000 in 1986/87, imports will also rise to supply a new soybean crushing plant. The report says that imports of wheat, soybeans, soybean meal and cotton are not likely to decline as a result of last September"s 31 pct devaluation of the rupiah because of a rise in domestic demand. The report said that Indonesia"s overall economic performance in calendar 1986 was about zero or even a slight negative growth rate, the lowest rate of growth since the mid-1960s. It compares with 1.9 pct growth in 1985 and 6.7 pct in 1984. The dramatic fall in oil prices last year was responsible for the slump. REUTER  1-MAR-1987 03:25:46.85 crude kuwaitecuador opec RM 
f0374reute b f BC-KUWAIT-SAYS-NO-PLANS 03-01 0091  KUWAIT, March 1 - Kuwait"s Oil Minister, in remarks published today, said there were no plans for an emergency OPEC meeting to review oil policies after recent weakness in world oil prices. Sheikh Ali al-Khalifa al-Sabah was quoted by the local daily al-Qabas as saying: "None of the OPEC members has asked for such a meeting." He denied Kuwait was pumping above its quota of 948,000 barrels of crude daily (bpd) set under self-imposed production limits of the 13-nation organisation. Traders and analysts in international oil markets estimate OPEC is producing up to one mln bpd above a ceiling of 15.8 mln bpd agreed in Geneva last December. They named Kuwait and the United Arab Emirates, along with the much smaller producer Ecuador, among those producing above quota. Kuwait, they said, was pumping 1.2 mln bpd. "This rumour is baseless. It is based on reports which said Kuwait has the ability to exceed its share. They suppose that because Kuwait has the ability, it will do so," the minister said. Sheikh Ali has said before that Kuwait had the ability to produce up to 4.0 mln bpd. "If we can sell more than our quota at official prices, while some countries are suffering difficulties marketing their share, it means we in Kuwait are unusually clever," he said. He was referring apparently to the Gulf state of qatar, which industry sources said was selling less than 180,000 bpd of its 285,000 bpd quota, because buyers were resisting official prices restored by OPEC last month pegged to a marker of 18 dlrs per barrel. Prices in New York last week dropped to their lowest levels this year and almost three dollars below a three-month high of 19 dollars a barrel. Sheikh Ali also delivered "a challenge to any international oil company that declared Kuwait sold below official prices." Because it was charging its official price, of 16.67 dlrs a barrel, it had lost custom, he said but did not elaborate. However, Kuwait had guaranteed markets for its oil because of its local and international refining facilities and its own distribution network abroad, he added. He reaffirmed that the planned meeting March 7 of OPEC"s differentials committee has been postponed until the start of April at the request of certain of the body"s members. Ecuador"s deputy energy minister Fernando Santos Alvite said last Wednesday his debt-burdened country wanted OPEC to assign a lower official price for its crude, and was to seek this at talks this month of opec"s pricing committee. Referring to pressure by oil companies on OPEC members, in apparent reference to difficulties faced by Qatar, he said: "We expected such pressure. It will continue through March and April." But he expected the situation would later improve. REUTER  1-MAR-1987 03:39:14.63 crude indonesiausa worldbank RM 
f0379reute u f BC-INDONESIA-SEEN-AT-CRO 03-01 0107  By Jeremy Clift, Reuters JAKARTA, March 1 - Indonesia appears to be nearing a political crossroads over measures to deregulate its protected economy, the U.S. Embassy says in a new report. To counter falling oil revenues, the government has launched a series of measures over the past nine months to boost exports outside the oil sector and attract new investment. Indonesia, the only Asian member of OPEC and a leading primary commodity producer, has been severely hit by last year"s fall in world oil prices, which forced it to devalue its currency by 31 pct in September. But the U.S. Embassy report says President Suharto"s government appears to be divided over what direction to lead the economy. "(It) appears to be nearing a crossroads with regard to deregulation, both as it pertains to investments and imports," the report says. It primarily assesses Indonesia"s agricultural sector, but also reviews the country"s general economic performance. It says that while many government officials and advisers are recommending further relaxation, "there are equally strong pressures being exerted to halt all such moves." "This group strongly favours an import substitution economy," the report says. Indonesia"s economic changes have been welcomed by the World Bank and international bankers as steps in the right direction, though they say crucial areas of the economy like plastics and steel remain highly protected, and virtual monopolies. Three sets of measures have been announced since last May, which broadened areas for foreign investment, reduced trade restrictions and liberalised imports. The report says Indonesia"s economic growth in calendar 1986 was probably about zero, and the economy may even have contracted a bit. "This is the lowest rate of growth since the mid-1960s," the report notes. Indonesia, the largest country in South-East Asia with a population of 168 million, is facing general elections in April. But the report hold out little hope for swift improvement in the economic outlook. "For 1987 early indications point to a slightly positive growth rate not exceeding one pct. Economic activity continues to suffer due to the sharp fall in export earnings from the petroleum industry." "Growth in the non-oil sector is low because of weak domestic demand coupled with excessive plant capacity, real declines in construction and trade, and a reduced level of growth in agriculture," the report states. Bankers say continuation of present economic reforms is crucial for the government to get the international lending its needs. A new World Bank loan of 300 mln dlrs last month in balance of payments support was given partly to help the government maintain the momentum of reform, the Bank said. REUTER  1-MAR-1987 04:00:48.22 india gandhi RM 
f0384reute u f BC-INDIAN-BUDGET-COMES-I 03-01 0106  NEW DELHI, March 1 - Opposition politicians, businessmen and newspapers criticised India"s newly unveiled 1987/88 budget and large projected deficit of around 57 billion rupees. They said the budget failed to provide incentives for economic growth and merely tinkered with tax reform. But few politicians were prepared to criticise a sharp rise in defence expenditure in the Hindu-majority nation where playing on fear of aggression by Moslem Pakistan has proved a vote winner. The Indian Express, the country"s biggest selling paper, said: "The defence cow has never been holier." The Sunday Mail newspaper branded the budget "shamelessly political." It said in a front page commentary the "budget is bad for growth, bad for prices, bad for the stock market and neutral in respect of everything else." Businessmen polled by Reuters said the budget had done little for them. Gandhi announced small increases in poverty alleviation and education outlays but he ordered a hold-down on current expenditure in an attempt to rein in the budget deficit. He told ministries to curb spending and promised a review of money-losing public sector industries. Gandhi lowered import tariffs on some computer parts but otherwise did little to extended the economic liberalisation policy launched two years ago. Reaction in Bombay, India"s business capital, was generally unfavourable. Businessmen and economists said the budget had no proposals for closing the 1987/88 budget deficit. It also failed to boost industrial investment and productivity needed to lift real economic growth above the five pct a year envisaged by the 1985-90 development plan. Nalin Vissanji, President of the Indian Merchants Chambers of Commerce said the budget gave no incentives to the capital market and had not fulfilled a government pledge to remove surtax on corporate income. Shares on The Bombay Stock Exchange, India"s biggest, fell in a post-budget session yesterday but brokers welcomed Gandhi"s proposal to set up a regulatory board for the securities industry. The exchange was shaken last year by several scandals and trading was suspended several times. Brokers said trading volume may increase with the change in capital gains tax on stock sales. Stockholders can now sell shares after one year instead of three years without incurring capital gains tax. Stock Exchange President Ramdas Dalal said yesterday the fall in share prices after the budget came as profits were taken and he expected to the market to firm in days to come. REUTER  1-MAR-1987 04:33:10.87 chinajapan worldbank RM 
f0389reute u f BC-CHINA-TO-BORROW-390-M 03-01 0098  PEKING, March 1 - China will receive loans totalling 390 mln dlrs from Japan and the World Bank for investment in new highways and port facilities. The Japan Overseas Economic Co-operation Fund is to provide 260 mln dlrs towards China"s plans to improve its road network, the official New China News Agency reported. A 130 mln dlr World Bank loan will be used to build 12 new berths incorporating container handling systems at the northeast China port of Tianjin, the agency said. It gave no details of the repayment terms of the loans. REUTER  1-MAR-1987 04:37:40.80 philippines ongpin RM 
f0390reute b f BC-MANILA-SAID-TO-OFFER 03-01 0116  MANILA, March 1 - The Philippines will offer its commercial bank creditors an innovative pricing plan that will make debt payments through certificates of indebtedness as an alternative to cash, the authoritative Business Day newspaper said. Finance Secretary Jaime Ongpin told reporters yesterday the alternative proposal is designed to avoid an impasse when debt rescheduling talks reopen in New York on Tuesday. He did not give details but said, "It is a very useful alternative and in the end will permit the banks to say that they achieved their pricing target and will likewise permit the Philippines to say exactly the same thing." Quoting negotiation documents to be presented to the country's 12-bank advisory committee, Business Day said the debt certificates will carry maturities of five or six years. It said the certificates will be classified as zero-coupon bonds or promissory notes with no interest but priced at a considerable discount from their redemption price. It said the debt bonds will entitle holder banks to a guaranteed return on both interest and principal since no payment of any kind is made until the bond matures. It said a bank can sell the bonds on the secondary bond market for either dlrs or pesos depending on its requirement. The documents said peso proceeds can be invested in selected industries under the Philippines' debt/equity program. Ongpin said Manila is sticking to its demand of a spread of 5/8 percentage points over London Interbank Offered Rates (LIBOR) for restructuring 3.6 billion dlrs of debt repayments. "(The proposal) will give the banks a choice of 5/8ths or the alternative," Ongpin said. "Our representatives have gone to Washington to the (International Monetary) Fund, the (World) Bank, the Fed (Federal Reserve Board) and the (U.S.) Treasury to brief them in advance on this alternative and it has generally been positively received." "We don't believe that there is going to be a problem on the accounting side," Ongpin said. "We have run this alternative proposal to the accounting firms. Neither have the government regulators indicated that there will be a problem." REUTER  1-MAR-1987 04:39:39.95 grainwheat china G C 
f0398reute u f BC-CHINESE-WHEAT-CROP-TH 03-01 0095  PEKING, March 1 - China's wheat crop this year is seriously threatened by plant pests and diseases, the New China News Agency said. More than 5 mln hectares of wheat-producing land in North China could be affected because relatively warm and dry weather had allowed bacteria and insect eggs to survive the winter, the agency added. China"s Ministry of Agriculture, Animal Husbandry and Fisheries has called for measures including the timely supply of pesticides to farmers to combat the threat, it said. REUTER  1-MAR-1987 05:27:27.17 crude bahrainsaudi-arabia opec RM 
f0401reute u f BC-SAUDI-RIYAL-DEPOSIT-R 03-01 0108  BAHRAIN, March 1 - Saudi riyal interbank deposits were steady at yesterday's higher levels in a quiet market. Traders said they were reluctant to take out new positions amidst uncertainty over whether OPEC will succeed in halting the current decline in oil prices. Oil industry sources said yesterday several Gulf Arab producers had had difficulty selling oil at official OPEC prices but Kuwait has said there are no plans for an emergency meeting of the 13-member organisation. A traditional Sunday lull in trading due to the European weekend also contributed to the lack of market activity. Spot-next and one-week rates were put at 6-1/4, 5-3/4 pct after quotes ranging between seven, six yesterday. One, three, and six-month deposits were quoted unchanged at 6-5/8, 3/8, 7-1/8, 6-7/8 and 7-3/8, 1/8 pct respectively. The spot riyal was quietly firmer at 3.7495/98 to the dollar after quotes of 3.7500/03 yesterday. REUTER  1-MAR-1987 05:34:32.47 ukiraniraq RM 
f0403reute u f BC-IRAN-CLAIMS-NEW-VICTO 03-01 0102  LONDON, March 1 - Iran said its forces had captured one of Iraq's strongest fortifications east of Basra on the Gulf War southern front in a major battle overnight. The Iranian National News Agency, received here, said Iranian forces smashed four Iraqi brigades, killed or wounded 1,500 Iraqi soldiers and destroyed 45 enemy tanks and personnel carriers. IRNA said the Iranian troops seized one of the strongest Iraqi fortifications and breached Iraqi defence lines southwest of Fish Lake, 10 kilometres (six miles) east of Iraq's second largest city of Basra. REUTER  1-MAR-1987 05:59:16.64 bangladesh RM 
f0404reute u f BC-BANGLADESH-MOVES-AGAI 03-01 0113  DHAKA, March 1 - Bangladesh police mounted a cross-country hunt for defaulters on bank loans, arresting four industrialists and issuing arrest warrants against 50 others for failure to repay overdue obligations. No names were given. Metropolitan police told reporters the four arrested, put under six month pre-trial detention, owed nearly 50.7 mln taka -- the equivalent of about 1.7 mln dlrs -- to Bangladesh Shilpa (Industrial) Bank. President Hossain Mohammad Ershad has said non-payers are crippling the industrial sector. But the Chamber of Commerce and industry said the crackdown would scare away entrepreneurs. REUTER  1-MAR-1987 07:05:40.66 iraniraq RM 
f0409reute u f BC-IRAQ-SAYS-IT-REPELS-I 03-01 0114  BAGHDAD, March 1 - Iraq said its troops repelled an overnight attack by three divisions of Iranian Revolutionary Guards near Basra in southern Iraq. A military communique said the Iranians in a "perfidious" attack rushed forward positions last night and this morning. A military spokesman later said the Iraqi Third Army Corps, whose troops fought off the Iranians, had a new commander, revealing for the first time that the previous general had been replaced. He said Lieutenant General Dhiya'uldin Jamal, former commander of the Fifth Army Corps, also positioned in the Basra area, had replaced Major General Tala' Khalil al-Douri. REUTER  1-MAR-1987 08:22:30.94 crude qatar RM 
f0413reute u f BC-QATAR-UNVEILS-BUDGET 03-01 0111  DOHA, March 1 - The Gulf oil state of Qatar, recovering slightly from last year's decline in world oil prices, announced its first budget since early 1985 and projected a deficit of 5.472 billion riyals. The deficit compared with a shortfall of 7.3 billion riyals in the last published budget for 1985/86. In a statement outlining the budget for the fiscal year 1987/88 beginning today, Finance and Petroleum Minister Sheikh Abdul-Aziz bin Khalifa al-Thani said the government expected to spend 12.217 billion riyals in the period. Projected expenditure in the 1985/86 budget had been 15.6 billion riyals. Sheikh Abdul-Aziz said government revenue would be about 6.745 billion riyals, down by about 30 pct on the 1985/86 projected revenue of 9.7 billion. The government failed to publish a 1986/87 budget due to uncertainty surrounding oil revenues. Sheikh Abdul-Aziz said that during that year the government decided to limit recurrent expenditure each month to one-twelfth of the previous fiscal year's allocations minus 15 pct. He urged heads of government departments and public institutions to help the government rationalise expenditure. He did not say how the 1987/88 budget shortfall would be covered. Sheikh Abdul-Aziz said plans to limit expenditure in 1986/87 had been taken in order to relieve the burden placed on the country's foreign reserves. He added in 1987/88 some 2.766 billion riyals had been allocated for major projects including housing and public buildings, social services, health, education, transport and communications, electricity and water, industry and agriculture. No figure was revealed for expenditure on defence and security. There was also no projection for oil revenue. Qatar, an OPEC member, has an output ceiling of 285,000 barrels per day. Sheikh Abdul-Aziz said: "Our expectations of positive signs regarding (oil) price trends, foremost among them OPEC's determination to shoulder its responsibilites and protect its wealth, have helped us make reasonable estimates for the coming year's revenue on the basis of our assigned quota." REUTER  1-MAR-1987 09:41:37.88 money-fx bahrainkuwaitomansaudi-arabiaqataruae RM 
f0418reute u f BC-GULF-BOND,-STOCK-MARK 03-01 0110  BAHRAIN, March 1 - Gulf money markets have grown reasonably well during the past decade, but bond and stock markets remain to a large extent fragmented and lag behind, <Gulf International Bank BSC> (GIB) said. The bank's economist Henry Azzam said in a review of Gulf capital markets that investors have to relinquish traditional investment vehicles such as real estate, foreign currency bank accounts and precious metals. "Greater financial sophistication is needed coupled with more diversified capital market instruments and a change in the disclosure requirements on company accounts," he said. The GIB study reviewed capital markets under three categories -- money markets, stock and bond markets. Azzam said Gulf states had been making greater use of short-term money market instruments and banks in the region had floated various euronotes and underwriting facilities. "Nevertheless, bond and stock markets remain, to a large extent, fragmented and lagging behind," he said. Most debt in the region is still raised by syndicated loans and bank facilities and very few companies had made use of stock or bond issues. Only Kuwait has an official stock exchange, while other Gulf nations have yet to establish exchanges. But with dwindling financial surpluses in the Gulf, governments are actively pursuing ways to develop capital markets and set up domestic stock exchanges, Azzam said. He said recession stemming from sliding oil prices had "clearly had a negative impact on the development of capital markets in the region." In addition, family firms are reluctant to go public, financial awareness among investors is still lacking and investment analysis and corporate reporting standards lack depth. A sharp fall in share prices in the early 1980s prompted investors to hold on to shares hoping for an eventual recovery. Azzam said the absence of proper commercial law in some Gulf countries and authorities' apparent reluctance to adopt financial innovations had also hampered capital markets. He called for clearly defined laws governing incorporation of joint stock companies and the flotation of debt instruments. Azzam said capital market instruments should be made available to all citizens and institutions of Gulf Cooperation Council (GCC) states -- Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates (UAE). Some moves had been taken in this direction, with Bahrain allowing GCC nationals to own up to 25 pct of locally incorporated companies. Azzam said Gulf money markets had received greater depth from the introduction of treasury bill offerings in Bahrain and the expansion of securities repurchase regulations in Saudi Arabia. But he added there is "no bond market to speak of" in Saudi Arabia, Qatar, Oman or the UAE, with the last Saudi riyal denominated bond issued in 1978. While Bahrain plans an official stock exchange and trading in Saudi Arabia has picked up, establishment of formal exchanges in Qatar, Oman and the UAE does not appear imminent, Azzam said. REUTER  1-MAR-1987 18:31:44.74 crude bahrainsaudi-arabia hisham-nazer opec RM 
f0427reute b f BC-SAUDI-ARABIA-REITERAT 03-01 0084  BAHRAIN, March 1 - Saudi Arabian Oil Minister Hisham Nazer reiterated the kingdom's commitment to last December's OPEC accord to boost world oil prices and stabilise the market, the official Saudi Press Agency SPA said. Asked by the agency about the recent fall in free market oil prices, Nazer said Saudi Arabia "is fully adhering by the ... Accord and it will never sell its oil at prices below the pronounced prices under any circumstance." Nazer, quoted by SPA, said recent pressure on free market prices "may be because of the end of the (northern hemisphere) winter season and the glut in the market." Saudi Arabia was a main architect of the December accord, under which OPEC agreed to lower its total output ceiling by 7.25 pct to 15.8 mln barrels per day (bpd) and return to fixed prices of around 18 dlrs a barrel. The agreement followed a year of turmoil on oil markets, which saw prices slump briefly to under 10 dlrs a barrel in mid-1986 from about 30 dlrs in late 1985. Free market prices are currently just over 16 dlrs. Nazer was quoted by the SPA as saying Saudi Arabia's adherence to the accord was shown clearly in the oil market. He said contacts among members of OPEC showed they all wanted to stick to the accord. In Jamaica, OPEC President Rilwanu Lukman, who is also Nigerian Oil Minister, said the group planned to stick with the pricing agreement. "We are aware of the negative forces trying to manipulate the operations of the market, but we are satisfied that the fundamentals exist for stable market conditions," he said. Kuwait's Oil Minister, Sheikh Ali al-Khalifa al-Sabah, said in remarks published in the emirate's daily Al-Qabas there were no plans for an emergency OPEC meeting to review prices. Traders and analysts in international oil markets estimate OPEC is producing up to one mln bpd above the 15.8 mln ceiling. They named Kuwait and the United Arab Emirates, along with the much smaller producer Ecuador, among those producing above quota. Sheikh Ali denied that Kuwait was over-producing. REUTER  1-MAR-1987 20:35:44.69 coffee ukbrazil ico-coffee T C 
f0458reute u f BC-COFFEE-QUOTA-TALKS-CO 03-01 0100  LONDON, March 2 - The International Coffee Organization (ICO ) council talks on reintroducing export quotas continued with an extended session lasting late into Sunday night, but delegates said prospects for an accord between producers and consumers were diminishing by the minute. The special meeting, called to stop the prolonged slide in coffee prices, was likely to adjourn sometime tonight without agreement, delegates said. The council is expected to agree to reconvene either within the next six weeks or in September, they said. The talks foundered on Sunday afternoon when it became apparent consumers and producers could not compromise on the formula for calculating any future quota system, delegates said. Coffee export quotas were suspended a year ago when prices soared in response to a drought which cut Brazil's crop by nearly two-thirds. Brazil is the world's largest coffee producer and exporter. REUTER  1-MAR-1987 20:44:09.21 new-zealand RM 
f0461reute u f BC-NEW-ZEALAND-CANCELS-W 03-01 0086  WELLINGTON, March 2 - The Reserve Bank said it cancelled the regular weekly treasury bill tender scheduled for March 3. It said in a statement it forecasts a net cash withdrawal from the system over the settlement week. Cash flows to the government are expected to more than offset cash injections, it added. The bank said it expects to conduct open market operations during the week and after these, cash balances should fluctuate around 30 mln N.Z. Dlrs. REUTER  1-MAR-1987 20:57:29.58 hong-kong F 
f0465reute b f BC-SHARE-TRADING-IN-CHEU 03-01 0102  HONG KONG, March 2 - Trading in the shares of three of the Cheung Kong group of companies will be suspended for two days at the request of the companies, the Stock Exchange of Hong Kong said. The three are Cheung Kong (Holdings) Ltd <CKGH.HK>, Hongkong Electric Holdings Ltd <HKEH.HK> and Hutchison Whampoa Ltd <HWHH.HK>. They will announce their 1986 results later today, with market speculation of a major reorganisation within the group. Cheung Kong rose 75 cents to 45.25 dlrs on Friday, Hk Electric 60 to 16.00 and Hutchison 1.50 dlrs to 54.50. REUTER  1-MAR-1987 21:00:57.15 usa RM 
f0466reute u f BC-FEBRUARY-U.S.-PURCHAS 03-01 0101  NEW YORK, March 2 - The U.S. Economy continued to expand in February but at a slower pace than in January, which saw a spurt of activity, the National Association of Purchasing Management (NAPM) said in a report. The Association's composite survey index dropped to 51.9 pct in February from 55.8 pct in January, the NAPM said. It was the seventh consecutive month in which this leading indicator was over 50 pct. A reading above 50 pct generally indicates that the economy is in an expanding phase. One below 50 pct implies a declining economy. The NAPM report, based on a survey of purchasing managers at 250 U.S. Industrial companies, also found that the growth rate in new orders and production slowed in February. But production remained vigorous, with more than three times as many members reporting it better rather than worse. Vendor deliveries improved slightly last month, but members reported that steel supplies were tight as USX Corp gradually resumed production. The same number of members reported inventories were higher as reported them lower. The NAPM said that had not happened since August 1984. For a sixth straight month, more purchasers reported paying higher rather than lower prices, this time by a ratio of nine to one. Robert Bretz, chairman of the NAPM's business survey committee, said: "The economy continued to expand in February, but at a more subdued rate than in January. The slowing of new orders should not be significant enough to dampen prospects for a respectable first quarter." The composite index is a seasonally adjusted figure, based on five components of the NAPM business survey - new orders, production, vendor deliveries, inventories and employment. REUTER  1-MAR-1987 21:29:50.36 grainwheat egyptcanada G C 
f0492reute u f BC-CANADA-EGYPT-WHEAT-NE 03-01 0088  CAIRO, March 2 - Canadian and Egyptian wheat negotiators failed to conclude an agreement on Canadian wheat exports to Egypt during talks last week, but the Canadian team will return to Cairo for further negotiations, Canadian embassy officials said. An embassy official declined to identify which issues remained to be resolved and when the talks would resume. In a five-year protocol signed in 1985, Cairo agreed to purchase 500,000 tonnes of Canadian wheat a year. REUTER  1-MAR-1987 21:37:09.13 grainwheat indonesiausa G C 
f0493reute u f BC-INDONESIAN-WHEAT-IMPO 03-01 0113  JAKARTA, March 2 - Indonesia's wheat imports are expected to fall to 1.5 mln tonnes in calendar 1987 from 1.69 mln in 1986, the U.S. Embassy's annual agriculture report said. It said the drop was expected, because there will be a drawdown on stocks built up near the end of 1986. It said wheat stocks at the end of 1986 were 390,000 tonnes, up from 223,000 at end-1985. It forecast end-1987 stocks at around 290,000 tonnes. The main suppliers in 1986 were Australia (44 pct), the U.S. (29 pct), Canada (12 pct), Argentina (8 pct) and Saudi Arabia (5 pct). REUTER  1-MAR-1987 21:42:38.96 chinausaussr RM 
f0494reute b f BC-SHULTZ-LIKELY-TO-VISI 03-01 0086  PEKING, March 2 - U.S. Secretary of State George Shultz is likely to visit Moscow soon for talks following new Soviet arms control proposals, U.S. Officials said. The officials told Reuters no decision had been reached on when the trip might take place, but it was likely to be within a month. Kremlin leader Mikhail Gorbachev proposed on Saturday that talks on medium range missiles be separated from other arms issues. Schultz is currently visiting Peking. REUTER  1-MAR-1987 21:44:31.60 money-fx zambia RM M C 
f0495reute u f BC-ZAMBIA-TO-RETAIN-CURR 03-01 0112  LUSAKA, March 2 - Zambia will retain its foreign-exchange auction system despite the suspension of weekly auctions since January 24, President Kenneth Kaunda said. "We have not run away from the auction. It hasn't been abolished at all," he told Reuters in an interview. He said the system would be reintroduced after current talks with the World Bank and the International Monetary Fund and, he hoped, would be backed by fresh foreign aid funds. Kaunda dismissed central bank statements the new auction system would be used to allocate foreign exchange to private bidders but not to fix the exchange rate. Kaunda said the auction system had faltered because of the government's shortage of foreign exchange to meet demand. It was suspended when the kwacha's rapid devaluation and strong fluctuations made economic planning almost impossible for the government and the private sector, he said. Weekly foreign-exchange auctions began in October 1985. The kwacha fell from 2.20 to the dollar to about 15 in 16 months. In January 1987 the government was more than two months in arrears in paying foreign currency to successful bidders, and the auction was suspended and replaced with a fixed exchange rate of nine kwacha to the dollar. REUTER  1-MAR-1987 21:55:05.07 polandusa imfworldbank RM 
f0498reute u f BC-POLISH-BANKER-PLEASED 03-01 0109  WARSAW, March 2 - Poland's talks in Washington with the World Bank and the International Monetary Fund (IMF) on the country's 33.5 billion dlr foreign debt were concrete, open and frank, a senior Polish banker was quoted as saying. Wladyslaw Baka, head of Poland's National Bank, told the official news agency PAP yesterday the talks were a step towards possible fresh credits or easier terms. "Much attention was given to the Polish delegation and the talks at both institutions involved displayed a lot of understanding for Poland's difficult economic position," PAP quoted Baka as saying. Baka said he stressed Poland would meet its financial obligations to the U.S., "but not in a short time, and not without major changes in the Polish economy as well as a cooperative stand on the part of its foreign economic partners." Since Poland rejoined the IMF last June, after a 36-year absence, IMF and World Bank teams have visited Warsaw on fact-finding missions on at least three occasions. A major report is expected to be issued in Washington soon. Poland has said it will not be able to meet interest repayments and debt principle falling due this year. REUTER  1-MAR-1987 21:57:51.42 new-zealand RM 
f0501reute u f BC-RECORD-N.Z.-FUTURES-V 03-01 0102  WELLINGTON, March 2 - The volume of contracts traded on the New Zealand Futures Exchange (NZFE) reached a record 25,559 contracts in February, the International Commodities Clearing House (ICCH) said. The previous high was 22,583 contracts in December 1986. The ICCH said the value of the contracts traded in February was 2.90 billion N.Z. Dlrs. The seven contracts currently traded on the NZFE are: five-year government bonds, the share price index, 90-day bank bills, 90-day prime commercial paper, the U.S. Dollar, crossbred wool, and wheat. REUTER  1-MAR-1987 22:12:53.59 sugar indonesia T C 
f0510reute u f BC-INDONESIAN-SUGAR-OUTP 03-01 0102  JAKARTA, March 2 - Indonesia's raw sugar output is likely to be 1.8 mln tonnes in calendar 1987, unchanged from 1986 and below the government's 1987 forecast of 2.5 mln, the U.S. Embassy said in its agricultural outlook for 1987. Indonesia bought 162,500 tonnes of raw sugar on world markets in late 1986, the report said. The embassy estimated Indonesia's calendar 1986 raw sugar production at 1.8 mln tonnes, against a government estimate of 1.99 mln. It said that Indonesia's move into sugar self-sufficiency in 1984 may have been short-lived. The report said, "The government continues to promote sugarcane production through its smallholder intensification program and a relatively high guaranteed price to sugarcane producers. "However, there are considerable indications that farmers are reluctant to plant cane because its economic return is not as good as that of other crops." REUTER  1-MAR-1987 22:20:43.45 acq japan M C 
f0515reute u f BC-NIPPON-KOKAN-STEEL-AF 03-01 0113  TOKYO, March 2 - Toshin Steel Co Ltd <TOSS.T> and <Azuma Steel Co Ltd>, affiliates of Nippon Kokan KK <NKKT.T>, are considering a merger, company spokesmen said. Toshin Steel, owned 41.9 pct by Nippon Kokan, and Azuma Steel, owned 41.3 pct by Nippon Kokan, are expected to decide by the end of March, they said. Both firms have been struggling with losses caused by the recession in the steel industry and the yen's appreciation. Azuma Steel's current losses are estimated at 3.1 billion yen in the year ending March 31 against a 6.99 billion loss a year earlier, a spokesman said. The firm employs 1,100 workers Toshin Steel, with 1,700 workers, has given no forecast for the year ending March 31. But industry sources said they expected the company to show current losses of about five billion yen or more in 1986/87 compared with a 2.98 billion loss in 1985/86. REUTER  1-MAR-1987 22:43:00.66 RM 
f0520reute f f BC-Qantas-Airways-says-w 03-01 0013  ******Blah blah blah.  1-MAR-1987 22:45:27.06 egyptcongo RM 
f0521reute u f BC-EGYPT-TO-HOST-NINE-NA 03-01 0109  CAIRO, March 2 - Representatives of nine African countries will meet here on March 11 to discuss the African debt crisis, the Chad political situation and other issues, Egypt's Minister of State for Foreign Affairs, Boutros Boutros Ghali, said. He told reporters on his return from Ethiopia and Djibouti that the meeting and venue had been agreed by the Organisation of African Unity (OAU). He said Egypt, Zambia, Djibouti, Zaire, Uganda, Sierra Leone, Congo, Algeria and Mali would be represented. Foreign Ministry sources said Congo President Denis Sassou-Nguesso would chair the meeting. REUTER  1-MAR-1987 22:52:21.31 belgium ec RM 
f0523reute u f BC-EC-MINISTERS-CONSIDER 03-01 0109  BRUSSELS, March 2 - European Community (EC) agriculture ministers meet later today to consider a package of deep cuts in prices and subsidies after a week marked by strong protests by European farmers, Community officials said. The common target for the farmers' wrath is the EC's Brussels Commission, which for the fourth year running has called for radical changes in the price support system. EC Agriculture Commissioner Frans Andriessen says huge food surpluses, which have alienated international trade partners and pushed the Community to the edge of bankruptcy, demand such action. With Community warehouses stocked with some 16 mln tonnes of unwanted cereals, over one mln tonnes of butter and huge stocks of wine and olive oil, Andriessen says bluntly the days of open-ended price guarantees must end. EC agriculture ministers try to fix the guaranteed prices paid to Community farmers before an April 1 deadline for the new marketing year, an increasingly difficult task as EC members cut funds and demand greater budget discipline. Andriessen has proposed a freeze for most prices, coupled with reductions in other support mechanisms, which could lead to price cuts of as much as eight pct for some products. A producer's right to sell into EC warehouses at a fixed guaranteed price when he finds no real market outlet is to be scaled back so it applies only in exceptional cases. The latest proposals are designed to keep expenditure on agriculture virtually stable. EC farm policies now swallow two-thirds of an annual budget of about 36 billion European currency units (Ecu) and are mainly responsible for an expected shortfall this year of about five billion Ecus. The most contentious aspects of the package are a new oils and fats tax and a change in the "green" exchange rate system, which translates EC farm prices into national currencies. The tax, of up to 330 Ecus per tonne, would be levied on imported and domestically produced oilseeds, but could trigger a fresh trade dispute with the United States, which provides the EC with the bulk of its soybeans. It would increase the cost of margarines and low-fat products in an attempt to increase both olive oil and butter consumption. West Germany has flatly rejected green rate changes, which would cause a fall in prices for producers as countries with weak and strong currencies were brought more into line. REUTER  1-MAR-1987 22:55:05.21 australiauk RM 
f0525reute b f BC-QANTAS-TO-BUY-FOUR-74 03-01 0088  SYDNEY, March 2 - <Qantas Airways Ltd> has placed a firm order with Boeing Co <BA> for four 747-400 aircraft at a cost of 250 mln Australian dlrs each, chairman Jim Leslie said. The first is due for delivery in April 1989 with the others arriving in May, June and September of that year, he said in a statement. The 400 series is the latest model of the Boeing 747 family, he said. The purchase will take government-owned Qantas's 747 fleet to 28, he said. Leslie said Qantas is talking to three engine makers who are all offering engines for the Boeing 747-400 and it will announce a decision on engine purchases later this year. He said they are United Technologies Corp <UTX> unit <Pratt^M and Whitney>, General Electric Co <GE> and Britain's <Rolls-Royce^M Ltd>. He said the 747-400, which incorporates new technology such as extended wings with six-feet high winglets and enhanced electronics, should have its first flight next February. The 400 series has a designed range of 12,500 kms, 2,140 kms further than the current Qantas 747-300's, he said. The aircraft will be financed by foreign borrowings and foreign exchange earnings, and Qantas believes they will pay for themselves in four to five years, Leslie said. The 747-400 has a take-off weight of 870,000 pounds, up from 833,000 for the 300 series, and offers an eight pct fuel saving, he said. The higher range and payload means they will first be used on the route to Britain and Europe via Asia. They will also be used on non-stop flights between Sydney and Los Angeles. REUTER  1-MAR-1987 23:29:49.33 australiausa RM 
f0539reute b f BC-IEL-SETS-100-MLN-DLR 03-01 0108  SYDNEY, March 2 - Australian investment group <Industrial Equity Ltd> (IEL) said it will raise 100 mln U.S. Dlrs by the issue of medium term notes and commercial paper in the U.S. Domestic market. IEL has mandated <Merrill Lynch Capital Markets> to arrange a letter of credit (LOC) facility in support of the notes and commercial paper, making this the first facility of its kind, the company said in a statement. The notes will be issued by its <IEL Finance Ltd> unit. Merrill Lynch will be the note and paper dealer and <Sumitomo Trust and Banking Co Ltd> will provide the LOC. The term of the LOC is five years with an evergreen feature which provides for annual reinstatement of the five-year term at the support banks' option, IEL said. The LOC will be underwritten by a group of banks which will receive a facility fee of 20 basis points plus a utilisation fee of 25 basis points, it added. REUTER  1-MAR-1987 23:43:44.86 usa RM 
f0546reute u f BC-AMERICAN-EXPRESS-STUD 03-01 0108  NEW YORK, March 1 - American Express Co <AXP>, rumoured to be considering a spinoff of part of <Shearson Lehman Brothers Inc>, said it is studying ways to improve Shearson's access to capital and help it meet stiffer international competition. In a joint statement, American Express and the brokerage unit said the actions under consideration are an integral part of American Express's worldwide financial services strategy. The statement also said American Express and Shearson have been having both internal and external discussions on the matter, but no final decision has been reached. American Express said in its statement it would not comment on the rumours circulating on Wall Street last week. Analysts said there was speculation that American Express would sell a stake of Shearson to a Japanese firm and also that 20 pct of the profitable brokerage would be sold to the public. Shearson contributed 316 mln dlrs of American Express's 1.25 billion dlrs net in 1986. American Express remained silent last Thursday and Friday as rumours drove its stock up a total of 5.50 dlrs in two days. It closed Friday at 74. REUTER  1-MAR-1987 23:58:46.85 meal-feedcopra-cake indonesiaphilippines G C 
f0559reute r f BC-INDONESIA-UNLIKELY-TO 03-01 0094  JAKARTA, March 2 - Indonesia is unlikely to import copra from the Philippines in 1987 after importing 30,000 tonnes in 1986, the U.S. Embassy's annual agriculture report said. The report said the 31 pct devaluation of the Indonesian rupiah, an increase in import duties on copra and increases in the price of Philippines copra have reduced the margin between prices in the two countries. Indonesia's copra production is forecast at 1.32 mln tonnes in calendar 1987, up from 1.30 mln tonnes in 1986. REUTER  1-MAR-1987 23:58:50.02 sri-lanka RM 
f0560reute u f BC-SRI-LANKAN-BANK-OFFER 03-01 0037  COLOMBO, March 2 - Sri Lanka's Central Bank offered 250 mln rupees worth of three-month treasury bills at its weekly tender closing on March 6, a Bank spokesman said. REUTER  2-MAR-1987 00:26:32.02 new-zealand RM 
f0581reute b f BC-STRONG-EARTHQUAKE-HIT 03-02 0060  WELLINGTON, March 2 - An earthquake measuring 6.5 on the Richter scale caused widespread damage in northern New Zealand and a civil defence emergency was declared in some areas, officials and seismologists said. There were no immediate reports of casualties. The quake jolted the Bay of Plenty and Waikato areas. The town of Whakatane was said by officials to be virtually isolated. A civil defence emergency was declared in Whakatane which has about 16,000 people. Officials said many roads and bridges in the area had been damaged. No deaths were reported but one man was admitted to hospital in serious condition after his car was buried in a mud slip. Seismologists said Whakatane was hit by three earthquakes, the strongest measuring 6.5 on the Richter scale. They were followed by a series of aftershocks. The quakes were felt across the Bay of Plenty and Waikato regions in the northeast of the North Island. Smaller tremors had been felt in the Bay of Plenty for more than a week. Police said many districts lost power supplies and telephone links. Energy Ministry officials ordered the release of water behind the Matahina hydro-electric dam, 32 kilometres above Whakatane on the Rangitaiki river. The quake cracked the roadway and concrete abutment along the top of Matahina, the largest earth dam in the North Island. REUTER  2-MAR-1987 00:30:02.58 philippines ongpin RM 
f0584reute u f BC-PHILIPPINES-HEADS-CON 03-02 0109  By Chaitanya Kalbag, Reuters MANILA, March 2 - Philippine Finance Secretary Jaime Ongpin starts negotiations with the country's 12-bank advisory committee in New York tomorrow, buoyed by an economy on the mend and political stability one year after President Corazon Aquino took power, central bank officials said. The country now has foreign debt totalling 27.8 billion dlrs and faces debt repayments of 3.6 billion dlrs due between January 1987 and December 1992. Manila also hopes to tack on another 5.8 billion dlrs, rescheduled in a 1985 accord, to any new agreement, the officials said. Chile's 15-1/2 year rescheduling accord at one percentage point over London Interbank Offered Rates (LIBOR) and Venezuala's 21 billion dlr package at 7/8 point over LIBOR portend well for the Philippines, despite Brazil's repayment suspension last week, the officials said. Manila, which has not made any principal repayments since 1983, wants terms better than the 20-year repayments at 13/16 percentage point over LIBOR offered in October to Mexico in a 77 billion dlr rescue. Ongpin wants 5/8 point over the benchmark rate, which is currently hovering around 6-1/2 pct. The banks are said to be firm on the 1-1/8 points offered when the last round of negotiations collapsed on November 7. Ongpin said every 1/16 point over LIBOR meant an additional 5.1 mln dlrs in annual interest payments. One banker said banks were wary of repeating a Mexico-type accord, which some 70 small creditor banks are still refusing to endorse five months after it was signed. In Manila's case, about 40 pct of the 15 billion dlrs outstanding to commercial banks is owed to the 12 large banks on the advisory committee, while about 180 smaller banks have average exposures of 20 mln dlrs each. REUTER  2-MAR-1987 00:44:03.70 trade japan RM 
f0591reute b f BC-JAPAN-FEBRUARY-INTERI 03-02 0105  TOKYO, March 2 - Japan's customs-cleared trade surplus in the first 20 days of February jumped to 3.58 billion dlrs from 1.94 billion a year earlier, the Finance Ministry said. The February interim surplus was sharply up from a 965.04 mln dlr surplus in the same January period. FOB exports rose 14.6 pct from a year earlier in the first 20 days of February to 10.91 billion, while CIF imports fell 3.2 pct to 7.33 billion. The average dollar/yen rates were 152.32 for exports and 152.31 for imports against 196.61 for exports and 196.27 for imports a year earlier. REUTER  2-MAR-1987 00:55:40.97 alum japan M C 
f0598reute u f BC-NIPPON-LIGHT-METAL-CO 03-02 0113  TOKYO, March 2 - Nippon Light Metal Co Ltd <NLGT.T>, which has annual capacity of 63,000 tonnes, will continue primary aluminium production at a rate of 35,000 tonnes owing to low domestic and world prices and low water supplies at its hydroelectric power plant, a company official said. Nippon, which has no plans to restore output to the 48,000 tonnes a year at which it was working until late 1986, will become Japan's only smelter. <Ryoka Light Metal Industries Ltd> will stop smelting in April owing to high power costs and low prices, and <Mitsui Aluminium Co Ltd> has said it stopped smelting in February. REUTER  2-MAR-1987 01:05:49.72 crude saudi-arabiauae opec RM 
f0600reute b f BC-SAUDI-FEBRUARY-CRUDE 03-02 0095  ABU DHABI, March 2 - Saudi crude oil output last month fell to an average of 3.5 mln barrels per day (bpd) from 3.8 mln bpd in January, Gulf oil sources said. They said exports from the Ras Tanurah and Ju'aymah terminals in the Gulf fell to an average 1.9 mln bpd last month from 2.2 mln in January because of lower liftings by some customers. But the drop was much smaller than expected after Gulf exports rallied in the fourth week of February to 2.5 mln bpd from 1.2 mln in the third week, the sources said. The production figures include neutral zone output but not sales from floating storage, which are generally considered part of a country's output for Opec purposes. Saudi Arabia has an Opec quota of 4.133 mln bpd under a production restraint scheme approved by the 13-nation group last December to back new official oil prices averaging 18 dlrs a barrel. The sources said the two-fold jump in exports last week appeared to be the result of buyers rushing to lift February entitlements before the month-end. Last week's high export levels appeared to show continued support for official Opec prices from Saudi Arabia's main crude customers, the four ex-partners of Aramco, the sources said. The four -- Exxon Corp <XON>, Mobil Corp <MOB>, Texaco Inc <TX> and Chevron Corp <CHV> -- signed a long-term agreement last month to buy Saudi crude for 17.52 dlrs a barrel. However the sources said the real test of Saudi Arabia's ability to sell crude at official prices in a weak market will come this month, when demand for petroleum products traditionally tapers off. Spot prices have fallen in recent weeks to more than one dlr below Opec levels. Saudi Arabian oil minister Hisham Nazer yesterday reiterated the kingdom's commitment to the December OPEC accord and said it would never sell below official prices. The sources said total Saudi refinery throughput fell slightly in February to an average 1.1 mln bpd from 1.2 mln in January because of cuts at the Yanbu and Jubail export refineries. They put crude oil exports through Yanbu at 100,000 bpd last month, compared to zero in January, while throughput at Bahrain's refinery and neutral zone production remained steady at around 200,000 bpd each. REUTER  2-MAR-1987 01:25:47.73 veg-oilpalm-oil indonesia G C 
f0609reute u f BC-INDONESIAN-PALM-OIL-O 03-02 0108  JAKARTA, March 2 - Indonesia's palm oil output is expected to rise and exports to increase, the U.S. Embassy said in its annual report on Indonesia's agriculture sector. The Indonesian government said crude palm oil (CPO) output is expected to rise to 1.56 mln tonnes in 1987 and 2.11 mln in 1988, up from a projected 1.45 mln tonnes in 1986 and 1.26 mln in 1985. The 1986 projection of 1.45 mln tonnes is up from a provisional figure of 1.3 mln tonnes. A U.S. Embassy assessment puts 1987 output at 1.45 mln tonnes, against 1.35 mln in 1986 and 1.208 mln in 1985. "More realistic estimates indicate that 1988 production will be between 1.5 and 1.6 mln tonnes," the report said. The report said the abolition of the five pct CPO export tax, the devaluation of the rupiah in September 1986 and higher international palm oil prices should lead to a modest increase in exports this year. Exports are forecast to rise to 720,000 tonnes against 695,000 tonnes in 1986, the report added. REUTER  2-MAR-1987 01:28:24.65 teacocoacoffee indonesia T C 
f0611reute u f BC-INDONESIAN-TEA,-COCOA 03-02 0112  JAKARTA, March 2 - Indonesia's exports of tea and cocoa will continue to rise in calendar 1987 but coffee exports are forecast to dip slightly in 1987/88 (April-March) as the government tries to improve quality, the U.S. Embassy said. The embassy's annual report on Indonesian agriculture forecast coffee output in 1986/87 would be 5.77 mln bags of 60 kilograms each. That is slightly less than the 5.8 mln bags produced in 1985/86. In 1987/88 coffee production is forecast to rise again to 5.8 mln bags, but exports to dip to 4.8 mln from around 5.0 mln in 1986/87. Exports in 1985/86 were 4.67 mln bags. The embassy report says coffee stocks will rise to 1.3 mln tonnes in 1987/88 from 1.15 mln in 1986/87. It bases this on a fall in exports as a result of the "probable" re-introduction of quotas by the International Coffee Organisation. Cocoa production and exports are forecast to rise steadily as the government develops cocoa plantations. Production of cocoa in Indonesia increased to 32,378 tonnes in calendar 1985 from 10,284 tonnes in 1980. It is projected by the government to rise to more than 50,000 tonnes by 1988. Production in 1986 is estimated by the embassy at 35,000 tonnes, as against 38,000 tonnes in 1987. The report forecasts cocoa exports to rise to 35,000 tonnes this year, from 33,000 tonnes in 1986 and 31,000 in 1985. The Netherlands is at present the biggest importer of Indonesian cocoa beans. The report forecasts that in calendar 1987, Indonesia's CTC (crushed, torn and curled) tea exports will increase significantly with the coming on stream of at least eight new CTC processing plants. Indonesia plans to diversify its tea products by producing more CTC tea, the main component of tea bags. Production of black and green teas is forecast in the embassy report to rise to 125,000 tonnes in calendar 1987 from 123,000 tonnes in 1986. Exports of these teas are likely to rise to 95,000 tonnes in 1987 from 85,000 in 1986 and around 90,000 in 1985. The embassy noted the ministry of trade tightened quality controls on tea in October 1986 in an effort to become more competititve in the world market. REUTER  2-MAR-1987 01:41:24.21 singaporeusa ssenasdaqlse RM 
f0619reute u f BC-SINGAPORE-EXCHANGE-SE 03-02 0100  SINGAPORE, March 2 - The Stock Exchange of Singapore (SES) plans to introduce electronic trading of shares listed on the National Association of Securities Dealers Automated Quotation System (NASDAQ) in the U.S. And on London's Stock Exchange Automated Quotation System, banking sources said. The SES is discussing the idea with the London and New York authorities. Gordon Macklin, president of the National Association of Securities Dealers in Washington, said he was very optimistic about an early agreement, possibly by the end of this month. Monetary Authority of Singapore (MAS) sources told Reuters they supported the proposed linking of computer trading systems on the three exchanges, and the banking sources said local financial support for the plan existed. Macklin said if an agreement were reached it would move the three exchanges towards 24-hour trading, with Singapore filling a gap when no trading takes place. A small group of selected stocks would be used at the start of three-centre trading to determine investor interest. The Singapore, London and New York authorities have agreed in principle on how the three exchanges would trade and transfer information among the different time zones, but some details still have to be worked out, a senior Singapore bank director said. Questions remain concerning investor willingness to deploy sufficient capital in Singapore to ensure adequate market liquidity and communication links to the other three centres. But if agreement is reached, Singapore will have a head start over the other Asian financial centres in Hong Kong, Toyko and Australia, he said. On February 18 the SES created the Stock Exchange of Singapore Dealing and Automated Quotation System (SESDAQ), modelled on NASDAQ. At present SESDAQ is trading the shares of only one company, the government-owned Singapore National Printers Ltd (SNP), but its turnover has been fairly active, and other small firms have said they plan to seek listings soon. Market sources expect the next few companies listed will also be government-owned entities, which would have no problem meeting the listing conditions. Approval for a listing of Trans-Island Bus Service Pte Ltd is expected soon, they said. SNP, previously wholly-owned by the government's Temasek Holdings (Pte) Ltd, issued seven mln 50-cent shares at one dlr each last month in a public offering oversubscribed 119 times. In SESDAQ trading, SNP shares have advanced from an initial 1.87 dlrs to a Friday close of 2.32 after a 2.80 high. So far more than 900,000 shares have traded. REUTER  2-MAR-1987 01:59:56.87 indonesia RM 
f0633reute u f BC-INDONESIA'S-EXPORTS-D 03-02 0092  JAKARTA, March 2 - The total value of Indonesia's exports fell in calendar 1986 to 15.995 billion dlrs from 18.762 billion in calendar 1985, according to the central bank's latest report. The value of crude oil exports fell to 7.431 billion dlrs in 1986 from 8.976 billion in 1985, while liquefied natural gas exports dropped to 2.795 billion dlrs from 3.802 billion in 1985. The value of Indonesia's non-oil exports also fell in calendar 1986, to 5.768 billion dlrs from 5.983 billion in 1985. REUTER  2-MAR-1987 02:01:55.38 west-germany RM 
f0635reute u f BC-GERMAN-EUROBOND-MARKE 03-02 0099  By Alice Ratcliffe, Reuters FRANKFURT, March 2 - After an onslaught of new paper, fewer mark eurobonds issues are expected this week, bankers said. Most managers said they were planning a low issue volume for the Bundesbank's two-week bond calendar beginning today. "We want to have a week's pause," one manager said. Last week borrowings totalled 1.775 billion marks, including a 300 mln mark private placement for Deutsche Bank. Issues for all of February rose to nearly five billion marks, from 3.6 billion in January. The heavy volume also meant most borrowers except the very best addresses were having to accept higher coupons. "I think the D-mark market is still good, but only if you can give a good coupon," another manager said. But even some government borrowers were not getting the best reception for bonds which would have been taken up more readily under other conditions. Of the three mark eurobonds launched on Tuesday alone, bonds for Den Danske Bank and Iceland were trading outside fees on Friday, although prices had recovered from initial lows. Den Danske's 5-3/4 1992 bond was quoted at midday on Friday at 97.35/65 compared with its par price, and Iceland's 6-1/2 pct 1997 bond traded at 97.25/75 against a 100-1/4 issue price. A 300 mln mark 6-1/8 pct 1997 issue for Nippon Telegraph and Telephone was also depressed, but traded Friday within fees at 98.15, 98.50 from its par price. Some shorter maturities did better. In contrast to the 10-year NTT and Iceland issues, a five-year six pct bond for Hoogovens, traded at 98.40/75 from its 99-1/2 price, thanks mainly to its shorter maturity, dealers said. The large amount of paper brought to the market in the last two months has also led many syndicate managers to complain about the Bundesbank's present fixed calendar system, which they say is too inflexible. Currently all mark denominated eurobonds have to be registered with the Bundesbank in the week preceding the two-week issue period. A bank may decline to issue a bond on the requested day in the calendar, but then has to wait for the next calendar period to schedule the bond again. Some managers said they would prefer to abolish the system. The Bundesbank shortened the reporting period to two weeks from four weeks last July. But few expect the calendar to be completely abolished. "I don't think the Bundesbank would give that up," one banking analyst said. "I wouldn't have anything against getting rid of the system," the analyst said, adding banks were capable of regulating the volume of new issues themselves. The Bundesbank plays a passive role in setting the calendar without trying to regulate the issues, but it needs the registration to gauge the volume of mark bonds going through the euromarket, he said. For this reason, few managers here foresee the Bundesbank sacrificing its present calendar system. Bond activity in West German bond trading and syndication departments is also expected to be quieter than normal owing to the carnival holiday. Carnival will close banks in Duesseldorf all day on Monday. In Frankfurt, banks will close on Tuesday in the afternoon. REUTER  2-MAR-1987 02:04:30.58 earn japan F 
f0638reute u f BC-JAPAN'S-NTT-FORECASTS 03-02 0108  TOKYO, March 2 - <Nippon Telegraph and Telephone Corp> (NTT) expects its profits to fall to 328 billion yen in the year ending March 31, 1988 from a projected 348 billion this year, the company said. Total sales for the same period are expected to rise to 5,506 billion yen from a projected 5,328 billion this year, NTT said in a business operations plan submitted to the Post and Telecommunications Ministry. NTT said it plans to make capital investments of 1,770 billion yen in 1987/88, including 109 billion for research and development, as against a total of 1,600 billion this year. An NTT spokesman said increased competition from new entrants to the telecommunications field and the effect of a sales tax scheduled to be introduced next January, were the major factors behind the projected decrease in profits. The Japanese telecommunications industry was deregulated in 1985. REUTER  2-MAR-1987 02:25:51.00 chinausa F 
f0657reute u f BC-SINO-U.S.-VENTURE-IN 03-02 0083  PEKING, March 2 - <Ecolab Co> of the United States signed a contract with North China Industrial Co to set up the first Sino-U.S. Joint venture in China to make rinsing agents, the New China News Agency said. It said total investment in the new venture, <Ecolab Chemical Industrial Co>, is 2.4 mln dlrs. It said the venture will be based in Shanghai and produce agents for use in hotels and industries. It gave no further details. REUTER  2-MAR-1987 02:27:06.29 ship china worldbank RM 
f0660reute u f BC-CHINA-SIGNS-WORLD-BAN 03-02 0116  PEKING, March 2 - China has signed a 130 mln dlr loan agreement with the World Bank to partly finance 12 new berths with an annual capacity of 6.28 mln tonnes at the 20 mln tonne a year capacity Tianjin port, the New China News Agency said. China will provide 370 mln yuan for the project and a Chinese company won a bid against 12 other firms from seven countries to do the foundation work, it said. It said 11 of the new berths will be able to handle ships of more than 10,000 tonnes, three will handle containers and the expansion will enable the port to handle coke, non-metal mineral ores and mining equipment for the first time. REUTER  2-MAR-1987 02:35:00.83 thailand F 
f0663reute u f BC-THAI-AIRWAYS-INTERNAT 03-02 0102  BANGKOK, March 2 - Thai Airways International plans to expand its fleet to 58 from 30 aircraft by 1995, company officials said. Thamnoon Wanglee, vice-president for finance, told a weekend marketing conference Thai would finance the expansion by borrowing, but he did not give details. He said the airline planned to reduce its yen borrowing to 36.4 pct of overall debt by September 1992. It is currently 64.3 pct of overall debt. He said dollar borrowing should rise to 56.2 pct of overall debt in the same period, compared to 15.7 pct now. Other company officials said the state-owned airline had no plans to go private. They said the airline is studying a government proposal for it to merge with Thai Airways Company, the state-owned domestic carrier. A report presented to the conference showed the airline expects passenger sales revenue to be 13 pct higher in 1987 than in 1986. This follows a 20 pct jump in passenger sales revenue in the past four months. Executive vice president Chatrachai Bunya-ananta said the current expansion of Bangkok airport would be completed this year. REUTER  2-MAR-1987 02:48:11.01 reserves RM 
f0670reute f f BC-Japan-February-extern 03-02 0014  ******Blah blah blah.  2-MAR-1987 02:51:49.82 reserves japan RM 
f0672reute b f BC-JAPAN-FEBRUARY-RESERV 03-02 0099  TOKYO, March 2 - Japan's external reserves rose to a record 51.73 billion dlrs at the end of February from the previous record of 51.46 billion at end-January, the Finance Ministry said. End-February reserves last year were 27.58 billion dlrs. In January, the nation's foreign reserves showed the largest-ever monthly increase at 9.22 billion dlrs due to massive Bank of Japan dollar buying intervention during the month as the dollar fell briefly to an all-time low of 149.98 yen on January 19, foreign exchange dealers said. REUTER  2-MAR-1987 03:40:32.85 singapore simex RM 
f0717reute u f BC-SIMEX-TRADING-VOLUME 03-02 0094  SINGAPORE, March 2 - Trading volume on the Singapore International Monetary Exchange (Simex) hit a record 122,819 contracts in February, surpassing the previous record of 116,767 in September last year, the exchange said in a statement. Volume in the Eurodollar contract hit a peak of 78,546 contracts against the previous record of 70,306, also set last September. Open interest in the Nikkei Stock Average contract passed 2,000 contracts for the first time, to hit a record high 2,697 on February 26. REUTER  2-MAR-1987 03:44:22.83 usaussr RM 
f0721reute u f BC-SHULTZ-VISIT-TO-MOSCO 03-02 0106  MOSCOW, March 2 - A senior Soviet official said a visit to Moscow by U.S. Secretary of State George Shultz for arms discussions was under consideration. Deputy Foreign Minister Alexander Bessmertnykh told a news conference such a visit would be part of continuing contacts between the two powers "in the framework of security questions." Earlier, U.S. Officials with Shultz in Peking said he was likely to go to Moscow soon following Kremlin leader Mikhail Gorbachev's weekend proposal for a separate agreement on withdrawing Soviet and American medium-range missiles from Europe.  2-MAR-1987 03:45:48.48 japanusa F 
f0723reute u f BC-JAPAN-DISTRIBUTOR-MAY 03-02 0093  TOKYO, March 2 - <Autorama Inc>, a distributor for Ford Motor Co <F> in Japan, is considering importing cars made by <Mazda Motor Manufacturing (USA) Corp>, (MMUC), a wholly owned U.S. Subsidiary of Mazda Motor Corp <MAZT.T>, an Autorama spokesman said. Mazda, owned 24 pct by Ford, is due to begin production of the 2,000-cc-engine cars at the Michigan plant in September at an annual rate of 240,000, of which between 60 and 70 pct will go to Ford and the rest to Mazda's own U.S. Sales network. REUTER  2-MAR-1987 03:47:55.86 bahrainiraq RM 
f0727reute u f BC-IRAQ-DEFERS-PAYMENTS 03-02 0105  BAHRAIN, March 2 - Iraq has secured agreement to defer outstanding payments on a 500 mln dlr syndicated euroloan following five months of negotiations with creditor banks. Banking sources said the rescheduling is part of Iraq's continuing effort to defer payments of foreign debt as its economy comes under strain from the Gulf War and soft world oil prices. Iraq informed the 37 banks in the loan syndicate last September it could not meet the remaining four principal repayments totalling 285 mln dlrs, and missed the first of these for 71.25 mln due on September 29. The 500 mln dlr credit, under the lead management of Paris-based Union de Banques Arabes et Francaises (UBAF), has a five-year maturity and a margin of one percentage point over London Interbank Offered Rates (LIBOR). Banking sources said the agreement now worked out goes some way to meeting creditor bank demands that at least part of the first missing instalment of 71.25 mln dlrs be paid and not deferred. One quarter or 17.8 mln dlrs will be paid on signature of the accord, expected in late March, with the remainder in three more instalments to be made every six months. The remaining three principal instalments - originally due in March 1987, September 1987 and March 1988 - will each be deferred for two years from the due date, banking sources said. The margin for the loan remains unchanged and no penalty interest is being imposed, the sources added. Bank reaction to Iraq's rescheduling request has been one of resignation, with many bankers seeing little alternative for Baghdad's economic planners. Iraq is estimated to have foreign debt of about 50 billion dlrs, although about half is thought to be in the form of loans from its Gulf Arab allies, particularly Saudi Arabia and Kuwait. The 500 mln dlr credit is in the name of the state-owned Rafidain Bank. The only other major eurocredit, a 500 mln dlr deal under the agency of Gulf International Bank, was signed in October, 1985 and is still in a two year grace period. The bulk of Iraq's commercial debt - excluding loans by its allies in the Gulf War - is in the form of trade financing. But Rafidain bank stopped paying debt due on letters of credit last March and a series of negotiations with banks and western government export credit agencies has been underway. Some banks have agreed to a three-year deferrment of obligations due on letters of credit. REUTER  2-MAR-1987 03:52:34.29 taiwan RM 
f0735reute u f BC-TAIWAN-CENTRAL-BANK-I 03-02 0085  TAIPEI, March 2 - The Central Bank issued 2.14 billion Taiwan dlrs of certificates of deposit (CD), bringing the total so far this year to 86.21 billion, a bank official told Reuters. The new CD have maturities of six months and one and two years and bear interest rates ranging from 3.9 pct to 5.15 pct. The issues are aimed at curbing the growth of M-1B money supply, which is the result of large foreign exchange reserves, the official said. REUTER  2-MAR-1987 03:56:09.65 coffee uk ico-coffee C T 
f0741reute b f BC-ICO-TALKS-ON-COFFEE-Q 03-02 0106  LONDON, March 2 - Talks on coffee export quotas at the International Coffee Organization (ICO) special council session will resume at noon gmt today, following a last minute decision taken early this morning to extend the meeting 24 hours, ICO officials said. An 18 member contact group will meet at midday to examine new ideas, and the full council is to convene at 1900gmt, they said. The extension resulted from a last ditch effort by Colombia to salvage the talks, which by late yesterday looked perilously close to ending without agreement on quotas, delegates said. REUTER  2-MAR-1987 03:57:24.13 uk RM 
f0744reute b f BC-CAECL-ISSUES-12-BILLI 03-02 0084  LONDON, March 2 - Caisse d'Aide a l'Equipement des Collectives Locales (CAECL) is issuing a 12 billion yen eurobond due March 31, 1994 paying 5-1/8 pct and priced at 102 pct, lead manager Mitsubishi Trust International Ltd said. The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is March 31. REUTER  2-MAR-1987 03:58:32.30 china RM 
f0746reute u f BC-CHINESE-BANKS-TO-ISSU 03-02 0112  PEKING, March 2 - China's state and collective firms do not have enough cash to operate imported equipment, so banks will issue more bonds to raise funds, a Chinese bank official was quoted by the China Daily as saying. Xie was quoted as saying the present cash shortage means some state firms do not run at full capacity and are inefficient. The central government does not have enough money to meet their needs. The paper said, "Reliable sources disclosed that the country is running a budget deficit." It gave no figure. Xie said her bank sooner or later will have to punish the many firms that have failed to repay loans made to them over the past two years at high interest rates. The bank financed the loans by issuing two billion yuan of bonds, but she gave no other details. REUTER  2-MAR-1987 04:08:48.28 sugar india T C 
f0757reute r f BC-INDIAN-SUGAR-OUTPUT-R 03-02 0115  NEW DELHI, March 2 - India's sugar output to January 31 in the 1986/87 season (October/September) rose to 3.66 mln tonnes from 3.46 mln in the same 1985/86 period, the Indian Sugar Mills Association said. Total offtake in the first four months of the current year was 2.71 mln tonnes (including 241,000 tonnes imported) for domestic use and 4,000 tonnes for export, against 2.81 mln tonnes (including 993,000 imported) for domestic use and 3,000 tonnes for export in the corresponding period of 1985/86. Factory stocks at end-January were 3.05 mln tonnes (96,000 imported) against 3.13 mln (96,000 imported) a year earlier. REUTER  2-MAR-1987 04:11:39.02 uk F 
f0761reute u f BC-INTERNATIONAL-LEISURE 03-02 0081  LONDON, March 2 - <International Leisure Group Plc> said its <Air Europe> subsidiary was in advanced negotiations with manufacturers and banks for the lease of 10 <Boeing Co> and 13 <Rolls-Royce Ltd> engines. The deal would be for the lease, with purchase options, of five Boeing 757-200 planes and five 737-400s. The Rolls-Royce RB211-535E4 engines would be fitted to the Boeing 757s. Delivery would be in 1988 and 1989. REUTER  2-MAR-1987 04:15:24.58 japan RM 
f0766reute u f BC-JAPAN-PLANS-MORE-FLEX 03-02 0100  By Yoshiko Mori, Reuters TOKYO, March 2 - Japanese securities houses will issue new corporate bonds more quickly, accept issue requests throughout the month instead of at month-end and introduce a competitive underwriting method from April 1, to bring Japanese firms back to the Tokyo bond market, securities managers said. Domestic issues have slowed to a trickle as more and more companies turn to more flexible overseas markets for cash, but the proposed moves are expected to pave the way for a review of public bond issues, they said. "Relaxation of issue rules would be better applied not only to straight corporate bonds, but also convertible bonds and warrant bonds, to call back issuers effectively from overseas markets," a Nikko Securities house bond manager said. Securities houses will launch an issue about 10 days after a corporate declaration of intent instead of 25 days as now, the securities managers said. Underwriters are expected to abolish the lump-sum issuance system, in which all corporate bonds are issued at month-end, and accept issue requests during the month, they said. Securities houses also plan to introduce free competition among underwriters when negotiating with issuers over terms in order to better reflect the market, securities managers said. Market participants expect the new issue methods to be applied beginning in April, with the projected issue by <Nippon Telegraph and Telephone Corp>. The so-called proposal method abolishes the practice of taking lead-managership and enables more market-oriented decisions on terms, securities sources said. The four major Japanese securities houses now take turns underwriting corporate bonds. Setting issue terms using financial criteria prepared by securities houses and in reference to coupon rates on latest public bonds is now almost automatic, they said. The new moves are based on wide-ranging proposals made in late December by advisers to Finance Minister Kiichi Miyazawa. They were aimed at revitalising the domestic corporate bond market, securities house managers said. The finance ministry, commissioned banks and securities houses agreed in January to lower the eligibility ceiling for companies wanting to issue non-collateral straight and convertible bonds from March 1, securities managers said. The cut will more than double the number of corporations able to make non-collateral issues from around 70 for straight bonds and 180 for convertibles now, securities managers said. The Bond Market Committee of the Securities Exchange Council also recommended introduction of a shelf registration system, more use of corporate ratings systems and simplification of disclosure rules to help speed up the issuing process, securities sources said. It also called for a major review of the commissioned bank system, which increases the cost of issuing domestic bonds, and for deregulation of private placements, they said. Some of these proposals are likely to take some time to put into effect, the sources said. A shelf registration system would need a revision of Japanese commercial law, expected in 1988, the sources said. REUTER  2-MAR-1987 04:25:39.88 money-fxinterest netherlands RM 
f0786reute b f BC-NEW-DUTCH-ADVANCES-TO 03-02 0093  AMSTERDAM, 2 March - The Dutch Central Bank said it has accepted bids totalling 4.8 billion guilders at tender for new seven-day special advances at 5.3 pct covering the period March 2 to 9 aimed at relieving money market tightness. Subscriptions to 300 mln guilders were met in full, amounts above 300 mln at 50 pct. The new facility replaces old five-day advances worth 8.0 billion guilders at the same rate. Dealers expect this week's money market shortage to be around 12 billion guilders. Reuter  2-MAR-1987 04:28:59.85 oilseedsoybean japanchina G C 
f0788reute u f BC-JAPAN-BUYS-SOME-95,00 03-02 0086  TOKYO, March 2 - Japanese importers bought some 95,000 tonnes of Chinese soybeans late last month for May to September shipment, under the semi-annual trade accords, trade sources said. The FOB premium rose to 13.50 dlrs per tonne, up 2.50 dlrs from the premium for the November to April shipment, but down from 13.80 for the last May to September shipment. Flat prices for Chinese beans are based on futures prices in Chicago plus the FOB premium. Japanese purchases of Chinese soybeans, including spot buying, may have totalled 240,000 to 250,000 tonnes of the 1986 crop for November to April 1987 shipment, down from some 300,000 tonnes the previous year, the sources said. Domestic demand for edible-use soybeans is expected to remain stable at about 240,000 to 250,000 tonnes a year, the sources said. In recent years Japanese importers have overbought Chinese edible-use soybeans and sold the surplus to domestic crushers, but low 1986 U.S. Crop prices have discouraged the purchase of Chinese origin beans for crushing, they said. REUTER  2-MAR-1987 04:32:15.51 acq F 
f0790reute f f BC-SHV-SAYS-IT-MAKING-TE 03-02 0011  ******Blah blah blah.  2-MAR-1987 04:32:27.10 earn hong-kong F 
f0791reute b f BC-CHEUNG-KONG-(HOLDINGS 03-02 0064  HONG KONG, March 2 - Shr 3.25 H.K. Dlrs vs 1.40 Final div 52 cents vs 38, making 75 cents vs 57 Net 1.28 billion dlrs vs 551.7 mln Note - Earnings excluded extraordinary gains of 983.6 mln dlrs vs 81.3 mln. Bonus issue one-for-four vs nil. Share split four-for-one. Dividend payable June 3, books close May 11-21. REUTER  2-MAR-1987 04:37:30.88 singapore RM 
f0798reute u f BC-TRADING-DELAYED-ON-SI 03-02 0115  SINGAPORE, March 2 - The start of trading on the new Singapore Government Securities Market has been postponed until late March or early April because legislative amendments still need parliamentary approval, banking sources said. The new bill market, intended to establish a base for a wider capital market and to encourage private bond issues in Singapore, was supposed to be launched today. William K.K. Wong, managing director of Indosuez Asia (Singapore) Ltd, said there is no real obstacle to prevent the new market from taking off. Most dealers are optimistic it will provide more liquidity for operators to trade, he said. Lawrence Yeo, director of Citicorp Investment Bank (Singapore) Ltd, said the market's success depends on domestic participation. The five primary dealers and the three registered dealers will all be local companies. The primary dealers are <Commercial Discount Co Ltd>, <National Discount Co Ltd>, Oversea-Chinese Banking Corp Ltd <OCBM.SI>, <Overseas Union Bank Ltd> and United Overseas Bank Ltd <UOBM.SI>. They will underwrite the Monetary Authority of Singapore (MAS) auctions, maintain market liquidity and channel open-market operations, MAS said. <Citicorp Investment Bank (Singapore) Ltd>, <Indosuez Asia (Singapore) Ltd> and <Credit Suisse First Boston Asia Ltd> will be recognised as registered dealers. They will act as market makers but will not bid directly at auctions. MAS plans to launch trading by issuing taxable instruments grossing seven billion dlrs in the first year and a gross 38 billion dlrs of paper over the first five years. Non-competitive bids from primary dealers prepared to accept average yield will be allocated first, to a maximum 500,000 dlrs for notes and bonds and to an unlimited amount for treasury bills. The remaining amount will be awarded to competitive bidders from the lowest yield upwards. In the secondary market, the standard lot traded between dealers will be one mln dlrs worth of treasury bills and 500,000 dlrs worth of government notes and bonds. REUTER  2-MAR-1987 04:40:56.03 uk RM F 
f0805reute b f BC-MERRILL-LYNCH-ISSUES 03-02 0087  LONDON, March 2 - Merrill Lynch and Co is issuing a 100 mln Ecu eurobond due March 30, 1990, paying 7-3/8 pct and priced at 101 pct, lead manager Banque Paribas Capital Markets said. Merrill Lynch Capital Markets is co-lead manager. The issue is available in denominations of 1,000 and 10,00 Ecus and will be listed in Luxembourg. The payment date is March 30, 1990. The selling concession is 1-3/8 pct while management and underwriting combined pays 1/2 pct. REUTER  2-MAR-1987 04:45:57.78 acq sweden F 
f0812reute b f BC-WALLENBERGS-FIGHT-BID 03-02 0115  STOCKHOLM, March 2 - Sweden's Wallenberg group fought back a bid by the London-based Swedish financier Erik Penser to secure a large stake in Swedish Match <SMBS ST>, one of the companies at the core of their business empire. A statement issued by the Wallenberg holding companies AB Investor and Forvaltnings AB Providentia said they had taken over an option held by Nobel Industrier Sweden AB to acquire 33 pct of the voting rights in Swedish Match. Thre Wallenbergs paid Nobel Industrier <NOBL ST>, in which Penser group has a 72 pct stake, about 20 pct over the market price for the Swedish Match option, the statement said. Swedish Match's B shares open to foreign buyers closed at 424 crowns on Friday. The A shares -- with increased voting rights -- closed at 450 crowns for the restricted and 455 for the free shares. The statement said the deal increased Investor's stake to 49.4 pct of the voting rights and 14.8 pct of the share capital while Providentia is left holding 34.1 pct of the voting rights and 14.5 pct of the share capital in Swedish Match. The Wallenbergs' stake in Swedish Match had previously amounted to 52 pct of the voting rights in the company. The Swedish Match deal will cost the Wallenbergs about 400 mln crowns, share analysts said, making it one of the most expensise moves the group has undertaken in the last four years to defend its far-flung interests from outside predators. The Wallenbergs originally sold Nobel Industrier, an arms and chemicals group, to Penser in 1984 to pay for buying Volvo <VOLV ST> out of two other key group companies, Atlas Copco <ASTS ST> and Stora Koppabergs <SKPS ST>. Since then, the Wallenbergs were ousted as the largest shareholders in SKF (SKFR ST> by Skanska AB <SKBS ST> and Frederik Lundberg wrested control of Incentive AB from them. Lundberg, a Zurich-based Swedish property tycoon, also managed to acquire a 25 pct stake in another Wallenberg company, the diary equipment firm Alfa -Laval AB <ALFS ST>. During 1986, the Wallenbergs have been concentrating on building up their stake in Investor and Providentia to prevent any raid on the heart of their business empire. But analysts say the Wallenbergs' position in the electrical engineering firm ASEA AB <ASEA ST> is also too small at 12.6 pct of the voting rights and there has been growing speculation that the group will be forced to sell off fringe interests to protect its core activities. REUTER  2-MAR-1987 04:51:21.76 oilseedsoybeanmeal-feedsoy-meal indonesiachina G C 
f0822reute u f BC-INDONESIAN-SOYBEAN-IM 03-02 0107  JAKARTA, March 2 - Soybean imports are forecast to rise to 425,000 tonnes in 1987/88 (October/September) from an estimated 300,000 in 1986/87 and 375,000 in 1985/86, the U.S. Embassy said in its annual report on Indonesia's agriculture. It said Indonesia did not achieve its goal of self-sufficiency in soybean output in calendar 1986 because it did not meet a planned increase in area planted and because yields have remained below target. Soybean meal imports are forecast to fall to around 190,000 tonnes in 1987/88 from 270,000 tonnes in 1986/87 and 295,000 tonnes in 1985/86. Domestic soybean production is forecast to rise steadily to 1.08 mln tonnes in 1987/88 from 980,000 in the current year and 890,000 in 1985/86, the report said. Imports are forecast to fall in the current year but to rise in 1987/88 because of a new soybean crushing plant due to come on stream in early 1988. China is the main supplier with a 79 pct share, while the U.S. Provides the rest, it said. "This pattern will likely continue during 1986/87 since domestic soyfood processors prefer Chinese beans and are willing to pay a premium for them," it said. Area planted is expected to increase by 10 pct in both 1986/87 and 1987/88. "Yield increases continue to be hampered by an insufficient supply of quality seeds, along with pest and disease problems," the report said. REUTER  2-MAR-1987 04:52:58.27 acq uk F 
f0825reute b f BC-SHV-SAYS-IT-MAKING-TE 03-02 0061  LONDON, March 2 - <SHV (United Kingdom) Holding Co Ltd> said it was making a tender offer for up to 33 mln ordinary shares in Imperial Continental Gas Association.<ICGS.L>. It said in a statement the offer was on the basis of 700p for each IC Gas ordinary and 252p for every one stg nominal of IC Gas loan stock. SHV already holds 6.8 mln IC Gas ordinary stock units representing around 4.9 pct of the current issued share capital. Successful completion of the offer would increase SHV's stake in IC Gas to 39.8 mln shares, representing around 27.9 pct of issued share capital, it said. The offer capitalises IC Gas at around one billion stg. It said it was tendering for both ordinary stock and loan stock, which when fully converted, gave a total of 33 mln IC Gas ordinary. It is making the tender offer through N.M. Rothschilds. IC Gas said in a statement it noted the SHV tender offer and the terms were being considered. It said a further statement would be made as soon as possible. REUTER...  2-MAR-1987 05:00:35.83 france RM 
f0837reute u f BC-NOBEL/FINANCIERE-ROBU 03-02 0109  PARIS, March 2 - Nobel and Financiere Robur are issuing French franc domestic bonds with share warrants, according to announcements in the Official Bulletin (BALO). Nobel is issuing a 200 mln franc 10-year bond with a 5.5 pct coupon in 1,000 franc denominations, to which existing shareholders will have subscription rights in the ratio of one bond for every 120 shares held with a nominal 10 franc value. The bonds will each carry eight warrants, each giving the right to subscribe to one 100-franc Nobel share at 140 francs between June 1 1987 and May 31 1994. Payment date is April 28. In a second stage of the operation, the company will issue 3.63 mln new 100-franc nominal shares at a price of 120 francs, in the ratio of three new shares for 20 existing 10-franc nominal shares. This will take the company's capital to 677.6 mln francs from the present 242 mln. In a separate operation, Financiere Robur is issuing a 147.73 mln French franc eight-year bond with a six pct coupon, denominated in 1,100 franc units and priced at par. Payment date will be April 13 and existing shareholders will have a preferential right to subscribe to the issue in the ratio of one bond for every 10 shares held, between March 9 and March 30 1987. Each bond will carry two warrants, each giving the right to subscribe between January 1 1988 and March 31 1992 to one Financiere Robur share at a price of 210 francs. REUTER  2-MAR-1987 05:07:13.58 japannigeria RM 
f0848reute u f BC-JAPANESE-BANKS-COOL-O 03-02 0094  By Kunio Inoue, Reuters TOKYO, March 2 - Japanese banks are expected to give Nigerian debt negotiators a cool response when they arrive here tomorrow for talks, banking sources said. "We're not very enthusiastic about Nigeria's debt rescheduling," said a senior official at a leading Japanese bank. A team of Nigerian officials will meet with Japanese creditor banks here later this week to seek Japanese support for a proposed refinancing of part of Nigeria's 19 billion dlr foreign debt, bankers said. The senior bank official said a majority of Japanese bank creditors are unwilling to provide any new credits to Nigeria although about 80 pct have reluctantly agreed to accept rescheduling of part of their existing loans. "The problem is Nigeria has so far neglected us Japanese creditors and we have yet to receive a clear-cut picture of the nation's debt situation," said another Japanese bank official. He said Japanese bankers were unaware of the exact extent of Western commercial bank exposure to Nigeria and were uncertain about the proposed refinancing package details. Some 21 Japanese banks have loans outstanding to Nigeria, representing about four pct of the credit extended by Western commercial institutions, banking sources said. They said Nigeria would probably request about 320 mln dlrs in fresh private bank money and rescheduling of some 1.4 to 1.5 billion dlrs in existing loans due in 1986 and 1987. Japanese banks want Nigeria to make clear its debt repayment scheme as well as its economic reconstruction plans during the two-day meeting here, the sources added. "Otherwise, our response will be very negative," the senior official said. Banking sources said some 80 pct of international creditor banks involved have responded positively to the Nigerian debt proposal. Bank of Japan officials said they hope Japanese commercial banks will help Nigeria overcome its debt problems. Barclays Bank plc <BCS.L> has the most exposure to Nigeria's debt and is chairing a bank steering committee looking at the problem, the banking sources said. BankAmerica Corp <BAC.N> is coordinating private bank creditors in the Far East and representing them on the committee, they added. REUTER  2-MAR-1987 05:10:17.36 money-fxinterest uk RM 
f0859reute b f BC-U.K.-MONEY-MARKET-DEF 03-02 0093  LONDON, March 2 - The Bank of England said it forecast a shortage of around 800 mln stg in the money market today. Among the main factors affecting liquidity, bills maturing in official hands and the take-up of treasury bills will drain some 1.61 billion stg. Partly offsetting this outflow, exchequer transactions and a fall in note circulation will add around 425 mln stg and 360 mln stg respectively. In addition, bankers' balances above target will add some 20 mln stg to the system today. REUTER  2-MAR-1987 05:16:36.39 japan nakasone RM 
f0865reute u f BC-JAPAN-SALES-TAX-MAY-F 03-02 0110  By Yuko Nakamikado, Reuters TOKYO, March 2 - Prime Minister Yasuhiro Nakasone is likely to leave office this summer amid opposition to his controversial tax-reform package, political analysts said. They said Nakasone's reputation as a skilled politician has suffered irreparable damage from his support of a five pct sales tax planned for January 1988. "Nakasone is trying to carry out a drastic tax reform at the end of his administration, which is not only impossible but also is very irresponsible as a politican," Rei Shiratori, professor of politics at Dokkyo University, told Reuters. "Nakasone will almost certainly step down as soon as parliament approves the sales tax, probably in the summer," Shiratori said. Some ruling Liberal Democratic Party (LDP) members of parliament have spoken against the tax, which Nakasone says is needed to balance planned cuts in income and corporate taxes. Nakasone today called for disciplinary action against LDP members who oppose the tax. "There are some who are objecting because of their constituencies," he told a meeting of government and party leaders. "If the party discipline is broken, I would like to see punishment considered." "A proposed sales tax has become a political issue, partly because Nakasone breached his election pledge against introducing it," Shiratori said. "Moreover, the tax is being introduced when the public feels uncertainty about the sluggish economy stemming from the yen's appreciation and about the future when the Japanese society is rapidly aging," he said. Political analysts said the controversial tax could affect the more than 2,500 local elections scheduled for April, involving governors, mayors, town and village heads and assemblies at all levels. But the situation is complicated, since opposition parties excluding the communists sometimes put up joint candidates with the LDP, the political analysts added. Shiratori said, "In the worst case, implementation of the sales tax, now scheduled for next January, may be put off for some time before the government makes a final decision. "Another alternative is to modify the planned five pct to perhaps three pct. "A third alternative for the government is to ram through the bills only with the attendance of LDP MPs," he said. Seizaburo Sato, professor of politics at Tokyo University, thought the last possibility most likely. "I think the LDP alone will take a vote on the tax bills," he said. The LDP now holds 304 seats in the 512-seat Lower House and 143 in the 252-seat Upper House. To lure opposition parties back to parliament after the LDP pushes through the tax bills, the Nakasone cabinet will have to resign, Sato said. "Boycotting opposition members will be more willing to return to parliament if a new cabinet has been formed," he said. REUTER  2-MAR-1987 05:29:46.13 goldplatinumstrategic-metal south-africa C M 
f0883reute u f BC-BLACK-MINERS-SUPPORT 03-02 0115  SOWETO, South Africa, March 2 - Thousands of black mineworkers roared support for a union proposal to seize control of South Africa's gold, uranium, platinum and coal mines if the owners refuse to improve conditions for migrant black workers. About 15,000 miners attended a rally here to endorse moves proposed by last week's annual meeting of the 200,000 strong National Union of Mineworkers (NUM). They also supported a proposal for a national strike at the end of this month if the owners refused to begin negotiations. Migrant workers from surrounding countries make up more than half of the labour force in the mines. It was not stated how the union would "seize control." The miners' leaders also demanded an end to the system of single sex hostels for migrant workers, to be replaced by housing schemes so that workers could live with their families. The crowd, one of the largest to attend a meeting since South Africa declared a state of emergency last June, also shouted approval of a proposal to work closely with anti-apartheid movements such as the United Democratic Front (UDF) which claims two mln members. They also shouted their support for a demand that jailed black nationalist leader Nelson Mandela be released. REUTER  2-MAR-1987 05:37:03.78 meal-feedtapioca thailand C G 
f0892reute u f BC-THAILAND-ANNOUNCES-TH 03-02 0098  BANGKOK, March 2 - Thailand's Commerce Ministry announced a new tapioca export quota of 737,987 tonnes for the European Community against 762,860 tonnes for the previous allocation. The ministry said the fresh allocation, for the February 27-July 7 shipment period, is the third under a maximum 5.5 mln tonne overall quota that Thailand obtained from the EC for calendar 1987. It said the quota allocation was based on a national tapioca pellet stock of 4.34 mln tonnes surveyed last week, up from 3.05 mln in mid-January. REUTER  2-MAR-1987 05:38:49.15 tin malaysiaindonesiathailandzairebolivianigeriaaustraliabrazilchina atpc M C 
f0895reute u f BC-ATPC-MEMBERS-FIND-WAY 03-02 0108  By Rajan Moses, Reuters KUALA LUMPUR, March 2 - Mine and industry officials from most member states of the Association of Tin Producing Countries (ATPC) say they have found ways to limit group exports to 96,000 tonnes in the year started March 1, according to views polled by Reuter correspondents. The plan to curb exports, agreed in January, is aimed at cutting the world surplus to 50,000 tonnes from 70,000 now and boosting prices to about 19 ringgit a kilo from just over 16. Members of the seven-member Kuala Lumpur-based ATPC account for some 65 pct of the world's tin output. Under the ATPC plan, Malaysia has been allocated an export quota of 28,526 tonnes, Indonesia 24,516, Thailand 19,000, Bolivia 13,761, Zaire 1,736 and Nigeria 1,461. Australia has said it is not setting any export quota. However, the tonnage allocated to it, 7,000 tonnes, is roughly equal to its expected output this year. Comment from officials in Zaire was unavailable. Mine officials in Malaysia, the world's leading producer, said only 188 mines will be allowed to operate to ensure that output is limited to around 31,500 tonnes in the year started March 1. Chief Inspector of Mines Redzuan Sumun told Reuters that excess output of some 3,000 tonnes after exports of 28,500 in the one-year quota period would be kept in the national stock. Mine owners in Malaysia have welcomed the ATPC export curb and asked the government not to issue new mining licences. More than 100 applications for licences are pending. Redzuan said the Mines Department would approve new mining licences only if a six-month review of production trends showed that local mines were not overproducing. ATPC chairman and Indonesia's Mining and Energy Minister Subroto has pledged his country's support for the export curb. A spokesman for the state-owned tin mining company PT Tambang Timah told Reuters it would be easy for Indonesia to stick to an export quota of 24,516 tonnes because this was close to exports in calendar 1986 of 24,636. In Bangkok, Thai Industry Minister Pramual Sabhavasu said Thailand would keep to its 19,000 tonne quota and added this would not cause the local industry hardship at current prices. To insure adherence, the industry ministry and sole tin exporter Thailand Smelting and Refining Co would encourage bigger stockpiles, and income tax exemptions would be permitted, he said. The Thai Mineral Resources Department is expected to disallow new tin mines opening this year to prevent excessive production, industry sources said. But Mining Industry Council President Dam Teutong told Reuters that if the tin price rose above 18 ringgit a kilo, Thai miners would press for the opening of more new mines. Thailand exported 18,367 tonnes in 1986, up from 17,359 in 1985, Pramual said. Bolivia said it expects to export less tin this year than its allocated 13,761 tonne quota. Mining Minister Jaimie Villalobos told Reuters in La Paz that Bolivia expected to export about 9,000 tonnes of tin in calendar 1987. He said this was due to the sacking after the tin crisis of October 1985 of about 20,000 of the 28,000 workers at the state mining company Comibol, which produces more than 80 pct of Bolivia's total exports. He said there were risks in the ATPC plan to cut exports but added he was confident the goals set by the plan would be achieved. He did not elaborate. Mines, Power and Steel Minister Bunu Sheriff Musa said in Lagos that Nigeria would have no difficulty keeping within its ATPC quota of 1,461 tonnes because its metals output had declined due to poor demand and high production costs. Industry sources told Reuters that Nigeria's output was less than 1,000 tonnes last year. ATPC officials said they would monitor member countries' export figures every three months using customs documents and make projections from such data to see if quotas were likely to be breached within the year-long quota period. The ATPC officials said members that appeared likely to breach their quotas would be told to take remedial measures. They added that if member countries were unable to fulfil their quotas their extra tonnage would be reallocated to other members at the ATPC's discretion. The ATPC would have produced and exported an estimated 106,000 tonnes of tin in 1987 without the plan. Non-members Brazil and China have pledged to cooperate with the ATPC and limit their exports to 21,000 and 7,000 tonnes respectively during the quota period. REUTER  2-MAR-1987 05:43:24.77 tradebop south-korea RM 
f0912reute u f BC-SOUTH-KOREA-TO-HOLD-C 03-02 0108  SEOUL, March 2 - South Korea plans to take steps to keep its 1987 current account surplus below five billion dlrs, Economic Planning Board Minister Kim Mahn-je said. Kim told reporters the government would repay loans ahead of schedule and encourage firms to increase imports and investment abroad to prevent the current account surplus from rising too quickly. Last year South Korea's current account surplus was 4.65 billion dlrs. It widened to 622 mln dlrs in January from 484 mln in December and compared with a deficit of 334 mln in January 1986, Bank of Korea figures show. REUTER  2-MAR-1987 05:43:35.46 oilseedsunseedsoybeanrapeseedveg-oilsoy-oilpalm-oilgroundnut-oil netherlands C G 
f0913reute u f BC-DUTCH-OILSEEDS/FATS-I 03-02 0087  THE HAGUE, March 2 - Dutch imports of fat- and oil-bearing raw materials, fats and oils rose to 2.16 mln tonnes on a fat/oil basis in 1986 from 2.12 mln tonnes in 1985, the Commodity Board for Margarine, Fats and Oils said. Exports of the same commodities fell to 1.35 mln tonnes from 1.38 mln on a fat-oil basis. Fat- and oil-bearing raw materials imports rose to 760,000 from 709,200 tonnes on a fat/oil basis and to 3.47 mln tonnes actual weight from 3.32 mln. Soyabeans were the main component, with imports rising to 2.82 mln tonnes actual weight from 2.75 mln. Sunflowerseed imports fell to 308,200 from 342,900 tonnes while rapeseed imports rose to 292,000 from 201,400 tonnes. Exports of fat- and oil-bearing raw materials rose to 28,700 tonnes from 19,800 on a fat/oil basis and to 137,200 from 89,900 tonnes actual weight. Soyabean exports rose to 119,400 tonnes actual weight from 73,200 tonnes. Imports of vegetable fats, including palm oil, rose to 445,400 tonnes from 362,500 and exports to 151,500 from 139,800. Vegetable oil imports fell to 227,500 tonnes in 1986 from 286,300 in 1985, and exports to 661,400 from 683,400 tonnes. Soyabean oil imports were 32,000 (48,200), sunflower oil 61,600 (92,800), rape oil 82,900 (94,900) and groundnut oil 9,300 (12,200). Exports of soybean oil were 325,900 (338,800), sun oil 172,100 (189,800), rape oil 114,300 (103,400) and groundnut oil 7,000 (10,400). Animal fat imports rose to 371,700 from 345,800 tonnes and exports to 124,100 tonnes from 113,000. Fishoil imports fell to 190,600 from 265,600 and exports to 56,500 from 85,500 tonnes. reuter...  2-MAR-1987 05:44:39.87 gold china RM M C 
f0914reute r f BC-CHINA'S-HEILONGJIANG 03-02 0106  PEKING, March 2 - Gold output in the northeast China province of Heilongjiang rose 22.7 pct in 1986 from 1985's level, the New China News Agency said. It gave no figures. It said the province, China's second largest gold producer after Shandong, plans to double gold output by 1990 from the 1986 level. China does not publish gold production figures. However, industry sources estimate output at about 65 tonnes a year, with exports put between 11 and 31 tonnes. China is selling more gold abroad to offset large trade deficits in recent years, western diplomats said. REUTER  2-MAR-1987 05:48:46.98 acq usauk F 
f0923reute u f BC-SALE-TILNEY-BUYS-STAK 03-02 0083  LONDON, March 2 - <Sale Tilney Plc> said it has purchased 80 pct of the ordinary share capital of <B and R International Inc.>, a U.S. Insurance broker, for 5.6 mln dlrs. Sale is paying 3.6 mln dlrs in cash on completion, with the balance plus interest to be paid in equal instalments over the next six years. B and R posted pretax profit of 855,000 dlrs in the year to Dec 31, 1986 when it had net tangible assets of 563,000 dlrs. REUTER  2-MAR-1987 05:51:40.18 philippines F 
f0932reute u f BC-SAN-MIGUEL-BOARD-APPO 03-02 0106  By Rosario Liquicia, Reuters MANILA, March 2 - Disagreement over management of <San Miguel Corp> (SMC) may follow the Philippine government's appointment of a well-known banker to the SMC board, investment analysts said. They told Reuters the presence of <United Coconut Planters Bank> (UCPB) president Ramon Sy to the board of SMC may mean changes in SMC management, which for decades was controlled by the family of its president, Andres Soriano. Sy was appointed by a government commission that controls 51 pct of San Miguel's stock, after another nominee resigned. The Presidential Commission on Good Government (PCGG) holds six seats on the 15-member SMC board, which represent 33.13 mln sequestered shares. The stocks were seized on suspicion that they were owned by Eduardo Cojuangco, then chairman of UCPB and San Miguel. He was a close associate of deposed president Ferdinand Marcos, and he left the country after Marcos's fall. Before the seizure, Soriano led a 3.3 billion peso bid for the shares, paying UCPB a 500 mln peso deposit. The bid valued the shares at about 100 pesos. They traded at 93 pesos today, down from 95.50 at Friday's close. Finance Secretary Jaime Ongpin told reporters on Saturday that Sy would definitely sit on the SMC board despite the objections of some directors associated with Soriano. "I don't think there is a conflict of interest as such," he said. "I was potentially concerned with seeing a situation where you have a contentious atmosphere on the board. But Sy has assured (the government) that he does not intend to behave in a contentious manner," Ongpin added. The Soriano group cited conflict of interest in opposing Sy's directorship. Its lawyer said in a letter to the PCGG that a pending suit seeking forfeiture of SMC's 500 mln peso deposit and major undisclosed damages against the brewery represented a clear conflict. UCPB, however, sought board representation before Sy's appointment, petitioning the PCGG "so that the interests of the owners of the 33 mln shares would be adequately protected." Investment analysts polled by Reuters said the UCPB had a right to a slot on the SMC board as trustee for coconut farmers who claim ownership of the disputed shares. The analysts said Sy, backed by the government, would probably suggest replacements for PCGG nominees expected to resign soon in keeping with a new law prohibiting government officials from working for private companies. SMC's annual election is scheduled for May. A UCPB spokesman declined to comment, saying it was up to the PCGG to decide whom to appoint. One analyst said objections were understandable from the family that founded the company 97 years ago. "It is a natural instinct of self-preservation for Soriano," he said. SMC posted a net income of 448.8 mln pesos in 1985 on net sales of 10.99 billion pesos against 422.3 mln in 1984 on sales of 10.36 billion. REUTER  2-MAR-1987 05:57:58.95 earn japan RM 
f0949reute u f BC-ESTIMATED-DROP-IN-JAP 03-02 0112  TOKYO, March 2 - The combined profits of Japan's major corporations, excluding financial institutions, are forecast to fall 19.2 pct in the 1986/87 year ending March 31, compared to the 19.9 pct decline projected in late November, Wako Research Institute of Economics said. The private research body also said in a statement that 437 of the 1,084 firms listed on the first section of the Tokyo Stock Exchange foresee an 11.6 pct fall in sales in the year against an 11.4 pct fall estimated last November. Current profits are projected to fall 4.4 pct in 1987/88 on sales seen increasing by 4.2 pct, it said. Rationalisation measures taken by manufacturing industries to cope with the yen's sharp rise are beginning to brighten their business outlook, the institute said. It said lower interest rates, which are expected to reduce corporate borrowing costs, are also behind the improved performance outlook. Earnings performance in the non-manufacturing sector will be supported by firm demand in the real estate and construction businesses, it said. The forecast was based on average exchange rate estimates of 160 yen to the dollar in 1986/87 and 155 yen in 1987/88. REUTER  2-MAR-1987 06:03:43.86 lebanonsyria RM 
f0959reute u f BC-LEBANESE-PRESIDENT-AG 03-02 0094  BEIRUT, March 2 - Lebanese President Amin Gemayel has agreed to three key points in a new Syrian-brokered plan aimed at ending civil war in Lebanon, official sources said. They said the Maronite Christian leader has agreed to give up Cabinet voting rights, to ensure that the Prime Minister is elected by parliament and to the abolition in principle of Lebanon's current power-sharing system. Gemayel had agreed to the proposals in two months of indirect negotiations with Syrian leaders, the sources said. REUTER  2-MAR-1987 06:08:25.53 india gandhi RM 
f0968reute u f BC-INDIAN-BUDGET-DEFICIT 03-02 0110  By Ajoy Sen, Reuters NEW DELHI, March 2 - Prime Minister Rajiv Gandhi's fiscal 1987/88 budget has sparked speculation that a large deficit will push up India's moderate inflation rate and that the country's stock markets will experience prolonged uncertainty, economists, politicians and stockbrokers told Reuters. The projected deficit for fiscal 1987/88, ending March, is 56.88 billion rupees, down from an upwardly revised estimate of a record 82.85 billion in fiscal 1986/87. The projected inflation rate for fiscal 1986/87, based on wholesale prices, is 6.5 pct against 3.8 pct in 1985/86. Economists pointed out that the government itself had expressed concern about inflation in its most recent 1986/87 economic survey report published last week. Presenting the budget to parliament on Saturday, Prime Minister Gandhi said a cabinet committee would be appointed to trim large non-development expenditures. The deficit for 1987/88 will not be allowed to exceed the budgeted figure, he said. But few analysts have taken Gandhi's assurance seriously. They say the deficit more than doubled in 1986/87 from an initial estimate of 36.5 billion rupees. Lal Krishna Advani, president of the opposition Bharatiya Janata party, said Gandhi's failure to mention specific measures to cut non-development expenses will push up prices. Economists said increased liquidity in the economy, as reflected by expansion of the M3 aggregate money supply, may cause prices to rise. The survey report showed the M3 rose by 15.7 pct or 185.78 billion rupees in the first nine months of 1986/87 against 13.37 pct or 136.42 billion in the same 1985/86 period. Economists also said uncertain monsoon rain prospects, after bad weather last year, may strain prices further. Economists said the deficit would also cause the government to rely increasingly on internal borrowing. Market loans and bonds were projected at 981.50 billion rupees for 1987/88, up from the 1986/87 estimate of 852.13 billion. No reduction has been proposed in personal income taxes, which will discourage savings, economists said. Avinash Purulkar, chief manager of the state-owned Union Bank of India, said the annual inflation rate may double to around 15 pct in 1987/88 as the government prints more currency notes to cover the deficit. Brokers said stock market investors have started selling long-term portfolios to take advantage of a proposal in the budget that reduces the holding period required to claim exemption from the capital gains tax to one year from three. Delhi stockbroker B. D. Aggarwal said, "There is uncertainty in the market. There is going to be growing selling pressure." But Bombay broker Dinesh Walji said the present hectic selling of shares will slow when more buyers appear on the scene. "Just now there is acute nervousness in the market," he said. Brokers said proposals to set up a mutual fund to help small investors buy equity shares and relaxations in the capital gains tax will inject further buoyancy into the market on a long-term basis. New equity and debenture issues, both convertible and non-convertible, rose to an officially estimated 50.70 billion rupees in April/January 1986/87 from an estimated 36.95 billion in all 1985/86 and 20 billion in all 1984/85. REUTER  2-MAR-1987 06:18:21.95 veg-oilrape-oilpalm-oil ukindia C G 
f0979reute u f BC-INDIA-BUYS-46,000-TON 03-02 0113  LONDON, March 2 - The Indian State Trading Corporation purchased 46,000 tonnes of vegetable oils at its import tender on Friday, market sources said. The business was for April shipments and comprised 20,000 tonnes of European rapeseed oil at 318 dlrs, 20,000 tonnes of soyoil, believed South American origin, at 314, and 6,000 tonnes of Malaysian rbd palm olein at 347 dlrs, all per tonne cif. Palm oil sellers were disappointed at the light purchase of rbd olein and early trading saw the market ease nearly 10 dlrs under Malaysian refiner and dealer selling. April shipments traded down to 326 dlrs per tonne, fob. REUTER  2-MAR-1987 06:18:48.35 uk F 
f0980reute u f BC-BEECHAM-UNIT-LAUNCHES 03-02 0086  LONDON, March 2 - Beecham Group Plc <BHAM.L> said its subsidiary <Beecham Pharmaceuticals> launched a new once-a-day, prescription only medicine for the reduction of pain and inflammation caused by rheumatoid and osteoarthritis. The launch took place simultaneously in the U.K. And West Germany. The drug, which has the approved name Nabumetone, will be introduced to doctors in the U.K. Under the brand name of Relifex and will be known as Arthaxan in West Germany. REUTER  2-MAR-1987 06:25:55.11 interest japan RM 
f0987reute u f BC-JAPAN-TO-PROMOTE-INTE 03-02 0091  TOKYO, March 2 - The Bank of Japan decided at a policy board meeting to promote further interest rate liberalisation by lowering the minimum denomination of regulation-free large deposits and by raising the interest rate ceiling on money market certificates (MMCs), a central bank official said. The new guideline will go into effect on April 6, the bank said. Under the guideline, the minimum denomination of regulation-free large deposits will be lowered to 100 mln yen from 300 mln. The interest rate ceiling of MMCs with maturities of between one year and two years will be set at 0.5 percentage point below the prevailing certificate of deposit rate, the bank said. But the ceiling on MMCs with maturities of one year or less will remain the same, or 0.75 percentage point below the CD rates. The minimum denomination of MMCs will be lowered to 10 mln yen from 30 mln. The bank also said time deposit rates will be lowered by 0.37 point, effective March 16, in line with the half-point cut in the official discount rate on February 23. New interest rates on two-year and one-year deposits at banks, for example, will be 3.64 pct and 3.39 pct per annum, respectively. Demand deposit rates, however, will remain the same. REUTER  2-MAR-1987 06:27:11.46 reserves taiwanusajapan RM 
f0991reute r f BC-TAIWAN-POWER-FIRM-PLA 03-02 0119  TAIPEI, March 2 - State-owned (Taiwan Power co) will boost its domestic borrowings to further cut its foreign debt in line with a government policy to trim the island's huge foreign exchange reserves, a company official said. The company's foreign debt, mainly from the Japanese and U.S. Banks, was cut nearly by half to 66.2 billion taiwan dlrs equivalent in calendar 1986 from 124.6 billion in 1985, he said. Its domestic borrowings however rose to 105.2 billion taiwan dlrs from 80.6 billion in the same period, he added. Taiwan's foreign exchange reserves now stood at 50 billion U.S. Dlrs, due to its 1986 record trade surplus of 15.6 billion. REUTER  2-MAR-1987 06:33:07.11 singapore C T 
f0996reute u f BC-CREDITORS-ALLOW-TECK 03-02 0093  SINGAPORE, March 2 - The nine creditor banks of international coffee trader <Teck Hock and Co Pte Ltd> met today to discuss ways of letting it fulfil profitable contracts which would help it balance earlier losses, a creditor bank official said. No statement was made after the meeting and officials declined to comment on any decisions made. An unidentified foreign commodities company is pursuing its offer to buy the company and a subsidiary <Coffee Industries Singapore>, banking sources said. The nine creditor banks have the buyer's detailed proposals covering the injection of new capital and payment of some outstanding debt to the creditor banks and are now discussing individual bank counterproposals to increase debt repayments. Teck Hock owes over 100 mln Singapore dlrs and the nine banks have been extending debt repayments since December 23. They are Oversea-Chinese Banking Corp Ltd <OCBM.S>, United Overseas Bank Ltd <UOBM.S>, <Banque Paribas>, <Bangkok Bank Ltd>, <Citibank NA>, <Standard Chartered Bank Ltd>, Algemene Bank Nederland NV <ABNN.A>, Banque Nationale De Paris <BNPP.P> and <Chase Manhattan Bank NA>. REUTER  2-MAR-1987 06:39:53.79 uk RM 
f0003reute b f BC-TESCO-ISSUES-100-MLN 03-02 0110  LONDON, March 2 - Tesco Plc <TSCO.L> is issuing a 100 mln stg convertible eurobond due February 20, 2002 paying an indicated coupon of four to 4-1/4 pct and priced at par, lead manager Credit Suisse First Boston Ltd said. The issue is callable after 90 days at 106 pct declining by one pct per annum to par thereafter. It is not callable until 1992 unless the share price exceeds 130 pct of the conversion price. Final terms will be set on, or before, March 9. The deal has an investor put option after five years, which will be priced to give the investor an annual yield to the put of 8-3/4 to nine pct. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. The payment date is March 25 and there will be a short first coupon period. The issue is available in denominations of 1,000 and 5,000 stg and will be listed in London. REUTER  2-MAR-1987 06:41:06.17 france RM 
f0005reute u f BC-SNCF-ISSUING-THREE-BI 03-02 0086  PARIS, March 2 - The French state railway company, the Ste Nationale des Chemins de Fer Francaise (SNCF), is issuing a three billion French franc domestic bond in two tranches, the bond issuing committee said. Details of the issue will be announced later and it will be listed in the Official Bulletin (BALO) of March 9. The issue will be co-led by Banque Nationale de Paris, Caisse Nationale de Credit Agricole and the Societe Marseillaise de Credit. REUTER  2-MAR-1987 06:41:42.20 Moved TOPICS closure to end of "rape-meal" from "cornglutenfeed" - SPF meal-feedsoy-mealtapiocagraincorncornglutenfeedcitruspulpoilseedrapeseedrape-meal netherlands C G 
f0006reute u f BC-DUTCH-ANIMAL-FEED-USA 03-02 0092  ROTTERDAM, March 2 - Dutch animal feed usage in the first half of the current season from July through December 1986 fell 7.6 pct to 6.5 mln tonnes from 7.1 mln in the same period of 1985, figures in the latest newsletter from the co-operative Cebeco-Handelsraad show. Tapioca usage fell 9.1 pct to 1.4 mln tonnes from 1.6 mln in the first half of the 1985/86 season. Grain usage fell 6.1 pct to 1.1 mln tonnes from 1.2 mln, while soymeal usage fell 10 pct to 967,000 tonnes from 1.1 mln. Cornglutenfeed usage fell 17.8 pct to 729,000 tonnes from 887,000, but cornfeedmeal usage nearly doubled to 399,000 tonnes from 201,000. Citruspulp usage dropped 62.8 pct to 149,000 tonnes from 400,000 tonnes, while rapeseed and meal usage rose 9.6 pct to 217,000 tonnes from 198,000 and sunmeal rose 25.6 pct to 216,000 tonnes from 172,000 tonnes. During the whole of the season from July 1985 to June 1986, Dutch soymeal usage fell 12 pct to 1.9 mln tonnes from 2.1 mln the previous season, while sunmeal usage rose 25 pct to 408,000 tonnes from 325,000. Rapeseed and meal usage during the season also rose 14 pct to 409,000 tonnes from 360,000, but citruspulp fell 37 pct to 516,000 tonnes from 826,000. Meanwhile, the value of exports of agricultural products from the Netherlands in calendar 1986 fell 5.4 pct to 48.7 billion guilders from 51.5 billion in calendar 1985, figures from the Ministry of Agriculture show. During the same period imports of agricultural products dropped 13.1 pct to 31.2 billion guilders from 35.8 billion. REUTER  2-MAR-1987 06:43:05.58 ukjapan RM 
f0008reute u f BC-REUTERS-TO-CARRY-JIJI 03-02 0102  LONDON, March 2 - Reuters Holdings Plc <RTRS.L> said it would display an English language financial news service provided by the Japanese Jiji Press from the second quarter of 1987. The service, which will be provided through the Reuter Monitor and Composite Information Service (CIS), will offer 24-hour reports on Japanese economic and political developments as well as specialised news on money markets and rates, securities and technology. Another Jiji service, offering information on Japanese equity, bond and money markets, is also available on CIS. REUTER  2-MAR-1987 06:46:08.57 uk RM 
f0013reute b f BC-FIAT-UNIT-ISSUES-100 03-02 0118  LONDON, March 2 - Fiat Finance and Trade Ltd is issuing a 100 mln dlr eurobond due April 2, 1991 at 7-1/4 pct and 101-1/8 pct, lead manager Morgan Stanley International said. The issue is guaranteed by Internazionale Fiat Holding SA and is accompanied by a 200,000 currency warrant package. The bond is available in denominations of 5,000 dlrs and will be listed in Luxembourg. Payment date for bond and warrants is April 2, 1987. The selling concession is 1-1/8 pct while management and underwriting combined pays 1/2 pct. The warrants indicated at 45 dlrs entitle the holder to buy a minimum of 500 dlrs at a rate of 1.79 marks per dlr. The warrants are exercisable from the April 2 payment date until March 2, 1989. A minimum of 200 warrants must be exercised. They will also be listed in Luxembourg. REUTER  2-MAR-1987 06:50:18.66 money-supply uk RM 
f0018reute b f BC-U.K.-CONFIRMS-JANUARY 03-02 0091  LONDON, March 2 - The Bank of England said the broad measure of U.K. Money supply, Sterling M3, rose a seasonally adjusted 1.1 pct in January after a 0.2 pct rise in December. The unadjusted year-on-year rise was 17.6 pct after 18.1 pct in the year to December. The narrow measure of money supply, M0, fell by a seasonally adjusted 0.6 pct in January, and rose by a non-adjusted 4.1 pct year-on-year, the Bank said. The figures confirm provisional data issued by the Bank two weks ago. In December, M0 grew by a seasonally adjusted 1.4 pct and by a non-seasonally adjusted 5.2 pct year-on-year. The Bank said sterling bank lending grew by a non-seasonally adjusted 1.75 billion stg in January. This also confirmed provisional figures issued in February. The measure of private sector liquidity, PSL2, fell 0.2 pct in January, but after seasonal adjustment rose 0.6 pct, the Bank said. The Bank said the public sector contribution to the growth in Sterling M3 was contractionary by about 2.3 billion stg. Within this, the Public Sector Borrowing Requirement (PSBR) showed a repayment of 3.7 billion stg, while the non-bank private sector's holdings of government debt fell by about 1.1 billion stg. There was a fall of 290 mln stg in notes and coin in January, a fall of 1.5 billion stg in non-interest bearing sight deposits, and a rise of 1.6 billion stg in interest bearing sight deposits, the Bank said. REUTER  2-MAR-1987 06:54:19.43 acq ukusa RM F 
f0026reute u f BC-EXCO-BUYS-U.S.-GOVERN 03-02 0114  LONDON, Mar 2 - <Exco International Plc>, a subsidiary of British and Commonwealth Shipping Co Plc <BCOM.L>, said it had agreed in principle to buy an 80 pct stake in <RMJ Holdings Corp> for about 79 mln dlrs. Exco Chairman Richard Lacy told Reuters the acquisition was being made from Bank of New York Co Inc <BK.N>, which currently holds a 50.1 pct, and from RMJ partners who hold the remainder. Bank of New York and the partners will retain about 10 pct each and these stakes will be bought over the next six years. RMJ is the holding company of RMJ Securities, one of the largest U.S. Government securities brokers. It is also involved in broking notes, obligations and other instruments sponsored by U.S. Federal agencies. Lacy said Exco had been considering buying a U.S. Government securities broker for the past four years and had made an offer for RMJ when it was sold by Security Pacific Corp <SPC.N> in 1985. RMJ was then valued at about 50 mln dlrs. B and C managing director Peter Goldie said RMJ would be bought at about the same multiple as Exco, suggesting net income of around 16 mln dlrs. The company's earnings had not been hit by the halving of brokerage fees some 14 months ago as volumes had since doubled. Lacy said that RMJ employed some 300 people, with 200 in the brokerage business and about 70 in its <SMS> unit, which provided computer software for the financial services community. RMJ Securities had offices in New York, where total market turnover of U.S. Government securities was 110 billion dlrs a day, and in London where it has 15 billion. It was also given permission last week to open an office in Tokyo where total market turnover had lifted rapidly to about five billion dlrs a day. The acquisition would contribute between five and 10 pct of B and C's share earnings in 1987 on a proforma basis. REUTER  2-MAR-1987 06:57:06.79 veg-oilpalm-oil ukpakistan C G 
f0030reute u f BC-PAKISTAN-TO-TENDER-FO 03-02 0035  LONDON, March 2 - Pakistan will hold an import tender tomorrow for 6,000 tonnes of refined bleached deodorised palm oil for second half March shipments, traders said. REUTER  2-MAR-1987 06:57:36.55 west-germanyjapanusa F 
f0031reute u f BC-HOECHST-TO-RESEARCH-D 03-02 0089  FRANKFURT, March 2 - Hoechst AG <HFAG.F>, <Kerdix Inc.>, Boulder, Colorado, and <Nakamichi Corp>, Tokyo, have agreed to pool their research and development on magneto-optical memory discs, Hoechst said in a statement. Research will be carried out at each company and Hoechst will start to produce the discs by mid-1988 and distribute them worldwide under the brand name Ozadisc. A Hoechst spokesman said an eventual joint venture was likely but could give no details. REUTER  2-MAR-1987 06:58:00.68 acq usauk F 
f0032reute u f BC-COLOROLL-AGREES-TO-BU 03-02 0109  LONDON, March 2 - <Coloroll Group Plc> said it has entered into a conditional agreement to acquire the business and assets of <Wallco Inc> and related companies for 14.5 mln dlrs. Miami-based Wallco manufactures and distributes wallcoverings and showed a pretax profit of 1.5 mln dlrs on turnover of 37 mln in the year ending June 1986. The total U.S. Market was estimated to be worth 840 mln dlrs in 1986, having grown by 47 pct in the previous five years, Coloroll said. The combined sales and profit of the enlarged Coloroll U.S. Business would be 67 mln and four mln dlrs respectively. REUTER  2-MAR-1987 07:11:48.84 hungary imf RM 
f0050reute r f BC-ECONOMIC-SPOTLIGHT-- 03-02 0110  By David Lewis, Reuters BUDAPEST, March 2 - Hungary is to embark on a new series of austerity measures to tackle a budget deficit which tripled last year after quadrupling in 1985. The target deficit in the 1987 budget approved by Parliament last December was 43.8 billion forints. But Zoltan Boesze, chief of the Finance Ministry's budget financing division, told Reuters the government now saw this as too high and had decided "quite severe" measures were needed. "All the organizations of economic management have been charged with elaborating further (savings) measures," he said. Asked if these measures were being taken under pressure from the International Monetary Fund (IMF), Boesze said: "The Fund suggested it would be good to improve monetary results, and of course the Fund would support these efforts." IMF teams spent several weeks in Budapest late last year. Boesze said preliminary figures showed that Hungary's state budget deficit rose to a preliminary 47 billion forints last year from 15.8 billion in 1985 and 3.7 billion in 1984. The economy overshot a target deficit of 23 billion forints because of poor performance by state firms, which needed subsidies and tax incentives to export and earn hard currency. The exact extent and nature of savings are still under discussion but subsidies to state enterprises -- the largest budget item -- must definitely fall, Boesze said. Subsidies to state firms, including grants to maintain low consumer prices, exceeded the plan by nine billion to reach 164 billion forints in 1986, up from 152.9 billion in 1985. Parliament approved 1987 subsidies of 170 billion forints. "I think that in 1987 it is quite impossible to keep up the former situation and we will be obliged to reduce subsidies," Boesze said. "The central administration must be hard. ... If we are not hard then we will not be successful." Boesze said the budget could also make savings from reserve provisions of two billion forints for central expenditure and 800 mln forints for transfers to local authorities. "I believe these reserves should not be used at all," he said. Wage growth last year outstripped that of gross domestic product, which expanded one pct instead of a planned 2.5 pct. The authorities had already signalled a small fall in real wages for 1987, but Boesze said firms will suffer severe tax penalties if they award nominal rises of over one or two pct. This would mean a severe cut in living standards, as retail price inflation is forecast at seven pct after 5.3 pct in 1986. A four-month basic wage freeze expires on April 1. About 40 pct of the 1986 subsidies to state enterprises and 33 pct in 1985 were made to maintain low consumer prices. Boesze said pure economic policy would dictate significant cuts in price subsidies, but that social considerations made this difficult. But he added: "I think ultimately we will be able to make curtailments in subsidies in this area as well." He said Hungary plans to introduce price reform at the beginning of 1988 at the same time as personal taxation and value added tax. The IMF supports these aims. Hungary introduced a bankrupcty law last September in an attempt to shake out surplus labour from inefficient firms. Between 100,000 and 150,000 workers are expected to be unemployed at least temporarily by 1990. Labour discipline is being tightened and firms may fire workers more easily. Boesze said the per capita employment tax paid to the state by firms was being raised this year to encourage enterprises to shed labour. He gave no exact figures. Istvan Nagy, a senior Finance Ministry official responsible for drafting the bankrupcy law, told Reuters last year he hoped the law would cut state subsidies to enterprises by 50 pct. After subsidies to state enterprises, the largest single budget items are social insurance (153 billion forints approved for 1987) and transfers to local councils (80 billion). Interest payments on international debt are set to rise to more than 10 billion forints in 1987 from between six and seven billion in 1986, Boesze said. Hungary's net hard currency debt leapt by 54 pct last year to 7.7 billion dlrs, according to provisional figures, while trade with Western countries plunged into a deficit of more than 400 mln dlrs from a 1.2 billion dlr surplus just two years earlier. Boesze said last year's budget deficit was financed 90 pct by credits from the National Bank, mostly from abroad, and 10 pct by the issue of domestic state bonds. Deputy Prime Minister Frigyes Berecz told Hungarian economists in a speech this month that the country's economy was in a "very difficult" situation, but not in crisis. There would have to be a turnround with tangible results this year, however, and borrowing must be used more effectively. "Any rise in our present loans may prove to be dangerous," Berecz said. REUTER  2-MAR-1987 07:18:18.32 money-fxinterest uk RM 
f0074reute b f BC-U.K.-MONEY-MARKET-SHO 03-02 0038  LONDON, March 2 - The Bank of England said it revised its forecast of the shortage in the money market down to around 700 mln stg from its original estimate of 800 mln. REUTER  2-MAR-1987 07:18:46.98 ukusa RM 
f0075reute b f BC-ALASKA-HOUSING-HAS-15 03-02 0116  London, March 2 - Alaska Housing Finance Corp, a local U.S. Government agency, has become the first municipal entity to tap the syndicated loan market, receiving a 150 mln dlr, seven-year revolving loan, said Merrill Lynch Capital Markets as arranger. Merrill said the loan is a back-up to a proposed euro-commercial paper program. The syndicated loan, which is unsecured, carries a commitment fee of 0.10 pct per year. Advances will be priced at 31-1/4 basis points over the London Interbank Offered Rate while notes, which need only be purchased by banks if third party investors agree to buy them as well, will be priced at offering. Alaska Housing Finance was established by the legislature of the state of Alaska in 1971, and has so far acquired 6.1 billion dlrs of mortgages originated in Alaska. REUTER  2-MAR-1987 07:19:13.49 trade swedensouth-africa RM 
f0078reute u f BC-SWEDEN-TO-GO-AHEAD-WI 03-02 0094  STOCKHOLM, March 2 - Sweden's ruling Social Democratic Party gave full power to the government to decree unilateral trade sanctions against South Africa, Prime Minister Ingvar Calrsson said. Carlsson told a news conference the party decided the fight against apartheid took priority over Sweden's traditional policy of only adopting sanctions with the backing of the U.N. Security Council. The government will decide later what form the trade boycott will take and when it will come into force. REUTER  2-MAR-1987 07:20:13.63 japan F 
f0079reute r f BC-DIGITAL-AUDIO-TAPE-PL 03-02 0113  By Steven Brull, Reuters TOKYO, March 2 - Japanese consumers hesitated about buying the controversial digital audio tape player (DAT) as it went on sale in Tokyo today, but said the DAT player's near-perfect sound will make it a success once it becomes cheaper. "The sound is great, but I'll wait until more machines hit the market and prices fall to about 100,000 yen before buying one," said Terumi Fujitsuka, 35, a steel firm employee. Aiwa, Sharp and Matsushita displayed their DAT players today although delivery will take about two weeks, retailers said. Aiwa's machine, the cheapest, is listed at 188,000 yen. Machines by Sony, Hitachi, Toshiba and others will appear as early as the end of March, industry sources said. DAT players can play back and record with fidelity superior to even a compact disc. They use a cassette half the size of the standard audio cassette and unlike conventional analogue machines, they can make copies an infinite number of times with almost no loss of sound quality. This aroused fears in the music industry of widespread tape piracy and loss of royalties. In negotiations that delayed the DAT player's debut, the industry demanded anti-piracy circuitry be built into the machines. Machines sold in Japan are fitted with a computer chip to prevent copying through a digital signal. But copies can still be made if the signal is routed through a regular amplifier. "Nobody can tell the difference," one salesman said. DAT players have been kept off Western markets and some countries are considering banning them or imposing heavy duties unless tougher anti-piracy circuitry is added. But Japanese hardware makers, hard pressed for profits in the era of the high yen and growing competition, are eager to carve out a profitable niche. Prices of DAT players will probably fall quickly, possibly to around 70,000 yen by next year as other makers put their products on the market, industry analysts said. They said by 1990, sales could reach six mln units per year. Philips of the Netherlands has said it will launch its DAT player on the world market later this year. REUTER  2-MAR-1987 07:20:20.88 italy RM 
f0080reute r f BC-ECONOMIC-SPOTLIGHT-- 03-02 0101  By Jane Leach, Reuters ROME, March 2 - Italy's strong economic revival has led some observers to talk of miracles and created euphoria in some quarters about future growth prospects, but many Italian experts warn that the current wave of optimism is excessive. "I think all this foreign interest in the so-called Italian miracle is really exaggerated...Foreign observers always oscillate in the case of Italy between complete pessimism and unwarranted optimism," says Luigi Spaventa, one of Italy's leading economists and a professor at Rome University. According to Spaventa, these violent swings of mood have been occurring for the last 15 years, with Italy one minute seen as the "bad boy of Europe" and unable to raise a dollar and the next a worker of miracles and basking in admiration, "I think there's a lot of exaggeration...Once it used to be the underground economy and all the correspondents of foreign newspapers flocked to Italy to study this. That was another story about nothing - like writing about a black cat in a dark room." Spaventa, in tune with other economists and industrialists here, stress Italy's recent achievements, particularly the dramatic and solid recovery in the fortunes of industrial enterprises, but warns that the economy is still vulnerable. Profits of private sector firms such as Fiat S.P.A., <FIAT.M> and <ING. C. Olivetti and C. S.P.A.> are booming, the major state industries are back in the black after years of losses, inflation has nosedived and the trade and balance of payments deficits have been slashed. Expectations by some experts that Italy is poised to replace Britain as the world's fifth largest economy have also boosted optimism. Italy itself has made it clear it is not happy with what it feels to be its second-rate status among the major industrialised countries. Only this week, it angrily demanded clarification of this status after being excluded from a meeting of finance ministers from the Group of Five (G-5) - comprising the United States, Japan, West Germany, France and Britain. Italy said its exclusion from the meeting violated an agreement reached in Tokyo last year to let Italy and Canada attend meetings held by the five whenever discussions concerned managing the international monetary system. But Italy needs first to tackle some fundamental problems still facing its economy, economists and industrialists say. "We must not forget that ours is still a vulnerable economy," warns Fiat managing director Cesare Romiti. He says that while Italy's recent achievements are indeed cause for satisfaction and optimism, the focus now should be on the problems still remaining rather than those already solved. The country's huge state sector deficit, high unemployment and a heavy dependence on imported oil are among the most worrying problems, experts say. The size of the state spending deficit -- estimated at 109,561 billion lire in 1986 and targetted at 100,000 billion lire this year -- means there is a risk inflation could spiral again, says Carlo Scognamiglio, head of the private Luiss university in Rome. Inflation fell into single digits for the first time in a decade in September 1984 and by January this year was running at 4.5 pct, but it is still not low enough to guarantee international competiveness, economists and industrialists say. And unemployment was running at 11.6 pct nationally last October according to the latest official data. Recent official data showed that of a total 2.77 million people seeking work in October 1986, almost 73 pct were aged between 14 and 29. Unemployment in the south was running at 17.7 pct, more than double that in the industrial north. The Organisation for Economic Cooperation and Development (OECD) recently forecast that Italian gross domestic product (GDP) would rise rise three pct in 1987 after expanding 2.5 pct in 1986. But it warned that growth was unlikely to be enough to check rising unemployment. Another problem is Italy's reliance on imported raw materials. The country imports around 80 pct of its fuel needs. This factor actually worked sharply in Italy's favour last year, when lower energy costs helped slash the country's trade deficit to 3,717 billion lire by year end from 23,085 billion lire in 1985. But economists say the improvement owes little to any structural change in the Italian economy and that any reversal of the trend in costs could have serious consequences. If Italy truly wants to be counted among the world's top industrialised nations, it also needs to tighten up stockmarket operating procedures and encourage firms to supply more quality information about their activities, economists say. Italy has no controls on insider trading. The country also needs to shed its rigid capital movements controls -- a European Community directive calls for these to be dismantled by 1992 -- but this too will require a less blinkered attitude and a change in traditional operating procedures, economists say. "Even today, if I wanted to invest in the Tokyo bourse, I doubt I'd find the expertise in a brokerage firm or in banks which would allow me to do that," says Spaventa. REUTER  2-MAR-1987 07:23:29.84 money-fxinterest uk RM 
f0097reute b f BC-U.K.-MONEY-MARKET-REC 03-02 0074  LONDON, March 2 - The Bank of England said it had provided the money market with 37 mln stg assistance in the morning session. This compares with the Bank's downward revised estimate of the shortfall in the system today of around 700 mln stg. The central bank purchased bank bills outright comprising four mln stg in band one at 10-7/8 pct and 33 mln stg in band two at 10-13/16 pct. REUTER  2-MAR-1987 07:27:19.76 trade japanusa gatt V 
f0108reute u f BC-JAPAN,-U.S.-SET-TO-BE 03-02 0111  By Rich Miller, Reuters TOKYO, March 2 - Japan and the U.S. Kick off top-level trade talks tomorrow amid signs officials from both sides are growing increasingly irritated with each other. The talks, held annually at sub-cabinet level to review the whole gamut of U.S./Japan economic relations, will pave the way for American Secretary of State George Schultz's one day stop-over here at end-week on his way home from China. Faced with growing Congressional protectionist pressure, the U.S. Administration is pressing Japan for speedy action to reduce its still huge trade surplus, U.S. Officials said. "We appreciate their frustration," a senior Japanese government official said. "But we are also frustrated." The official said the 40 pct rise of the yen over the last 18 months has hit Japan hard, forcing exporters to slash spending and lay off workers to make up for lost sales abroad. That has not yet shown up in dollar-based statistics on trade, but it will, he said. He said the U.S. Administration was ignoring the progress that has been made and instead emphasizing the problems that remain when it talks with Congress. "It would only take five minutes to list their accomplishments," a senior U.S. Official replied. The talks begin tomorrow with high-level discussions on the economic structures of both countries and how they affect the bilateral trade imbalance, which last year amounted to 51.48 billion dlrs in Japan's favour. On the following two days, the topics will range from multilateral trade talks under the auspices of the General Agreement on Tariffs and Trade (GATT) to such bilateral trade problems as super computers. The structural talks are intended to be free-wheeling discussions among senior officials. Tomorrow's topics include savings and investment issues such as consumer credit and housing, and the implications of government budget deficits. These talks come at a particularly delicate time for the Japanese government, which is facing increasing domestic pressure to abandon its tight-fisted fiscal policy and stimulate the sagging economy by spending more. Some U.S. Officials complained Japan has no intention of boosting domestic demand and imports, as Washington wants. Japanese officials in turn pointed the finger at the huge U.S. Budget deficit as one of the main culprits for the trade imbalance. That budget deficit has meant that the U.S. Is buying more imports. Japan seems particularly peeved at being singled in a draft trade bill before the Senate as a nation following adverserial trade practices. "It condemns Japan without due process," one Japanese official said. That reference spoils what is otherwise a well-thought-out bill introduced by Democratic Senator Lloyd Bentsen, he said. Japan is also not totally happy with the administration's trade bill, particularly its proposal to establish reciprocal access to foreign markets as one criteria for retaliatory trade action by the U.S., Officials said. Nevertheless, Japanese officials said they remain in a weak bargaining position, especially with the threat of a trade bill overhanging them. "We have no leverage," one official admitted. As a result, Tokyo is striving to meet U.S. Complaints about its trade practices in a variety of fields, including super computers. The U.S. Is pressing for greater access to the Japanese super computer market. The Japanese government has sent a long questionnaire to public institutions like universities which buy the sophisticated machines in hopes of eventually setting up informal bidding procedures easily understood by all potential sellers, officials said. REUTER  2-MAR-1987 07:30:12.41 sugar ukindia C T 
f0118reute u f BC-INDIA-TO-HOLD-WHITE-S 03-02 0034  LONDON, March 2 - India will hold a buying tender on Wednesday, March 4, for two to three cargoes of white sugar for March/April shipment, traders said. REUTER  2-MAR-1987 07:31:00.79 australia F 
f0120reute r f BC-QANTAS-TO-BUY-FOUR-74 03-02 0087  SYDNEY, March 2 - <Qantas Airways Ltd> has placed a firm order with Boeing Co <BA> for four 747-400 aircraft at a cost of 250 mln Australian dlrs each, chairman Jim Leslie said. The first is due for delivery in April 1989 with the others arriving in May, June and September of that year, he said in a statement. The 400 series is the latest model of the Boeing 747 family, he said. The purchase will take government-owned Qantas's 747 fleet to 28, he said. Leslie said Qantas is talking to three engine makers who are all offering engines for the Boeing 747-400 and it will announce a decision on engine purchases later this year. He said they are <Pratt and Whitney> and General Electric Co <GE>, a unit of United Technologies Corp <UTX>, and Britain's <Rolls-Royce Ltd>. He said the 747-400, which incorporates new technology such as extended wings with six-feet high winglets and enhanced electronics, should have its first flight next February. The 400 series has a designed range of 12,500 kms, 2,140 kms further than the current Qantas 747-300's, he said. The aircraft will be financed by foreign borrowings and foreign exchange earnings, and Qantas believes they will pay for themselves in four to five years, Leslie said. The 747-400 has a take-off weight of 870,000 pounds, up from 833,000 for the 300 series, and offers an eight pct fuel saving, he said. The higher range and payload means they will first be used on the route to Britain and Europe via Asia. They will also be used on non-stop flights between Sydney and Los Angeles. REUTER  2-MAR-1987 07:32:06.66 earn uk F 
f0125reute u f BC-CARLTON-COMMUNICATION 03-02 0105  LONDON, March 2 - <Carlton Communications Plc> has started the current financial year well, with accounts for the first four months showing a healthy increase on the same period last year, and Chairman M.P. Green told the annual meeting he looked forward to 1987 with optimism. The issue of 4.6 mln shares in ADR form had now been successfully completed, he added. Carlton intended to increase its presence in the U.S. Which represented 50 pct of the world television market. Conditions worldwide in the television industry continued to look buoyant, the Chairman noted. REUTER  2-MAR-1987 07:34:32.08 strategic-metal belgiumussr ec C M 
f0130reute u f BC-EC-OPENS-ANTI-DUMPING 03-02 0113  BRUSSELS, March 2 - The European Community Commission said it has opened an enquiry into allegations that the Soviet Union is dumping mercury on the European market at below-cost prices. The Commission said its decision follows a complaint from EC non-ferrous metals producers that the sales of Soviet mercury were harming their business and threatening jobs in the European industry. According to the complaint, Soviet mercury sales in the EC had risen from zero in recent years to 100 tonnes between August and October last year and threaten to capture 25 pct of the EC market if they continue at the same pace. The industry said the mercury was being sold at more than 40 pct below prices charged by EC producers, forcing them to cut their prices to levels that no longer covered costs. The imports had caused producers heavy financial losses, it said. The Commission said the industry would probably be unable to hold prices at current levels and that any increase would result in loss of sales and jobs. The so-called anti-dumping procedure opened by the Commission will allow all interested parties to state their cases to the authority. REUTER  2-MAR-1987 07:37:23.81 philippines ongpin A 
f0140reute r f BC-MANILA-SAID-TO-OFFER 03-02 0113  MANILA, March 2 - The Philippines will offer commercial bank creditors an innovative pricing plan that will make debt payments through certificates of indebtedness instead of cash, the authoritative Business Day newspaper said. Finance Secretary Jaime Ongpin told reporters Saturday that the alternative proposal is designed to avoid an impasse when debt rescheduling talks reopen in New York on Tuesday. He did not give details but said, "It is a very useful alternative and in the end will permit the banks to say that they achieved their pricing target and will likewise permit the Philippines to say exactly the same thing." Quoting negotiation documents to be presented to the country's 12-bank advisory committee, Business Day said the debt certificates will carry maturities of five or six years. It said the certificates will be classified as zero-coupon bonds or promissory notes with no interest but priced at a considerable discount from their redemption price. It said the debt bonds will entitle holder banks to a guaranteed return on both interest and principal since no payment of any kind is made until the bond matures. It said a bank can sell the bonds on the secondary bond market for either dlrs or pesos depending on its requirement. The peso proceeds can be invested in selected industries under the Philippines' debt/equity program. Ongpin said Manila is sticking to its demand of a spread of 5/8 percentage points over London interbank offered Rates (LIBOR) for restructuring 3.6 billion dlrs of debt repayments. "(The proposal) will give the banks a choice of 5/8ths or the alternative," Ongpin said. "Our representatives have gone to Washington to the (International Monetary) Fund, the (World) Bank, the Fed (Federal Reserve Board) and the (U.S.) Treasury to brief them in advance on this alternative and it has generally been positively received." "We don't believe that there is going to be a problem on the accounting side," Ongpin said. "We have run this alternative proposal to the accounting firms. Neither have the government regulators indicated that there will be a problem." Reuter  2-MAR-1987 07:39:01.67 argentinausa brodersohnjames-bakervolckercamdessus imf A 
f0146reute r f BC-ARGENTINE-DEBT-NEGOTI 03-02 0110  BUENOS AIRES, March 2 - Argentina's chief debt negotiator said he was confident of a prompt accord with international creditor banks for rescheduling the country's foreign debt. "I'm quite optimistic about carrying out a serious and quick negotiation," Treasury Secretary Mario Brodersohn said on return from talks in New York with leading U.S. and world financial officials. Argentina is currently negotiating terms with the steering committee for its creditor banks that will allow it to meet four pct economic growth targets in 1987. It has also asked for a reduction in interest rates and fresh credit. Brodersohn said the growth targets were not negotiable, but Argentina did not want to follow Brazil in suspending payments on its foreign debt. He said Argentina was seeking 2.15 billion dlrs credit to meet the targets, adding that the banks' attitude had improved following Brazil's decision. The United States and a group of other industrial nations on Thursday granted Argentina a 500 mln dlr bridge loan. Brodersohn held talks in New York with U.S. Treasury Secretary James Baker, Federal Reserve chief Paul Volcker and International Monetary Fund (IMF) head Michel Camdessus. Reuter  2-MAR-1987 07:39:23.30 crude uaebahrainsaudi-arabiakuwaitqatar opec V 
f0149reute r f BC-GULF-ARAB-DEPUTY-OIL 03-02 0110  ABU DHABI, March 2 - Deputy oil ministers from six Gulf Arab states will meet in Bahrain today to discuss coordination of crude oil marketing, the official Emirates news agency WAM reported. WAM said the officials would be discussing implementation of last Sunday's agreement in Doha by Gulf Cooperation Council (GCC) oil ministers to help each other market their crude oil. Four of the GCC states - Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Qatar - are members of the Organiaation of Petroleum Exporting Countries (OPEC) and some face stiff buyer resistance to official OPEC prices. Reuter  2-MAR-1987 07:39:34.16 philippines ongpin RM 
f0151reute u f BC-MANILA-OFFICIALS-SPLI 03-02 0100  MANILA, March 2 - A rift has occured among Philippine officials over debt talks opening tomorrow in New York with Economic Planning Secretary Solita Monsod accusing the chief negotiator of softening his stand to gain a quick agreement. Monsod told Reuters Finance Secretary Jaime Ongpin had decided not to insist on Manila's creditor banks pledging to fund half of a projected 1988/92 financing gap of seven billion dlrs. "He (Ongpin) wants to finish the negotiations as fast as possible. I'm saying that's very short-sighted," Monsod said. Monsod said any pricing agreement on rescheduling 3.6 billion dlrs of the Philippines' total foreign debt of 27.8 billion dlrs would ignore a looming 14 billion dlr net resource transfer in the same period. Manila is seeking a spread of 5/8 percentage points over the London Interbank Offered Rates (LIBOR). Monsod said, "Right now we are saying to the banks, let's share the financing burden." Ongpin said last month the country's consultative group of multilateral and bilateral aid donors had endorsed a growth facility to bridge the funding gap. He said the government and the consultative group would meet annually to gauge financing needs for each year. The aid donors and commercial bank creditors would then be asked to finance any gap on a shared basis. He told reporters on Saturday it would be unwise to try to pin the banks down on Monsod's proposed growth facility. Ongpin acknowledged there was a dispute over tactics. "Secretary Monsod and I get along famously," he said. "She talks and I listen but I don't necessarily agree." Monsod said a firm commitment from the banks on bridging the financing gap would have aided the government's pump-priming program and 1987/92 medium-term development plan. She said if private sector investment continued to be held back by the fear of a balance of payments crisis and rising interest rates, the country would fail to achieve its gross national product (GNP) growth target of an average 6.5 pct over the next six years. "If you don't get those seven billion dlrs there is no plan. How can there be a program if there is no finance?" she said, adding Ongpin's stand was not good for the economy. "It (Ongpin's stand) is going to make it much more difficult for the economy to attain its growth targets," Monsod said. "Considering what the Philippine negotiating team is going to press for there is absolutely no reason why they should not be able to come back (from New York) in a day," she said. Monsod, the government's chief economic planner, stressed Manila's policy was growth before debt. She said if the banks refused to lend the new money, the Philippines should copy Brazil's action last week in freezing all debt repayments. "If the banks do not cooperate by lending you back some of the money that you are sending abroad, then of course you have an option," Monsod said. "You just don't send it abroad. You do a Brazil." REUTER  2-MAR-1987 07:39:41.35 japan sumitanakasone oecd F 
f0152reute r f BC-OECD-SAYS-JAPAN-RESOL 03-02 0098  TOKYO, March 2 - Japan appears resolved to encourage domestic demand for its goods instead of relying on exports to support its economy, Jean-Claude Paye, Director General of the Organization for Economic Cooperation and Development (OECD), told a news conference. Paye has been in Japan exchanging views on problems confronting the world economy and the role of the OECD. He met with Prime Minister Yasuhiro Nakasone, Foreign Minister Tadashi Kuranari, Bank of Japan Governor Satoshi Sumita and other high-ranking Japanese officials. Reuter  2-MAR-1987 07:43:22.81 crude saudi-arabiabahrain hisham-nazer opec F 
f0161reute r f AM-OIL-SAUDI 03-02 0114  BAHRAIN, March 2 - Saudi Arabian Oil Minister Hisham Nazer reiterated the kingdom's commitment to last December's OPEC accord to boost world oil prices and stabilize the market, the official Saudi Press Agency SPA said. Asked by the agency about the recent fall in free market oil prices, Nazer said Saudi Arabia "is fully adhering by the ... accord and it will never sell its oil at prices below the pronounced prices under any circumstance." Saudi Arabia was a main architect of December pact under which OPEC agreed to cut its total oil output ceiling by 7.25 pct and return to fixed prices of around 18 dollars a barrel. Reuter  2-MAR-1987 07:43:41.57 crude kuwait opec V 
f0163reute r f BC-OIL-KUWAIT 03-02 0109  KUWAIT, March 2 - Kuwait's oil minister said in a newspaper interview that there were no plans for an emergency OPEC meeting after the recent weakness in world oil prices. Sheikh Ali al-Khalifa al-Sabah was quoted by the local daily al-Qabas as saying that "none of the OPEC members has asked for such a meeting." He also denied that Kuwait was pumping above its OPEC quota of 948,000 barrels of crude daily (bpd). Crude oil prices fell sharply last week as international oil traders and analysts estimated the 13-nation OPEC was pumping up to one million bpd over its self-imposed limits. Reuter  2-MAR-1987 07:49:14.27 trade usataiwansouth-koreahong-kong RM 
f0184reute r f BC-TAIWAN-PLANS-NEW-TARI 03-02 0089  By Andrew Browne, Reuters TAIPEI, March 2 - Taiwan plans another round of deep tariff cuts this year to help narrow its trade surplus with the U.S., A senior economic planner said. Wang Chao-Ming, vice-chairman of the council for economic planning and development, told Reuters Taiwan would further reduce import tariffs on 1,700 products sometime in the second half of this year. Cuts of up to 50 pct on those items were made last year and Wang said further cuts would go much deeper. "We have to speed up liberalisation and cut import tariffs faster and more substantially," he said. The United States, Taiwan's main trading partner, has said the island's import tariffs, still ranging from a high of al