ans.txt

1	They told Reuter correspondents in Asian capitals a U.S.  Move against Japan might boost protectionist sentiment in the  U.S. And lead to curbs on American imports of their products.
2	But some exporters said that while the conflict would hurt  them in the long-run, in the short-term Tokyo's loss might be  their gain.
3	The U.S. Has said it will impose 300 mln dlrs of tariffs on  imports of Japanese electronics goods on April 17, in  retaliation for Japan's alleged failure to stick to a pact not  to sell semiconductors on world markets at below cost.
4	Unofficial Japanese estimates put the impact of the tariffs  at 10 billion dlrs and spokesmen for major electronics firms  said they would virtually halt exports of products hit by the  new taxes.
5	We wouldn't be able to do business, said a spokesman for  leading Japanese electronics firm Matsushita Electric  Industrial Co Ltd ltMC.T.
6	If the tariffs remain in place for any length of time  beyond a few months it will mean the complete erosion of  exports of goods subject to tariffs to the U.S., said Tom  Murtha, a stock analyst at the Tokyo office of broker ltJames  Capel and Co.
7	In Taiwan, businessmen and officials are also worried.
8	We are aware of the seriousness of the U.S.
9	Threat against  Japan because it serves as a warning to us, said a senior  Taiwanese trade official who asked not to be named.
10	Taiwan had a trade trade surplus of 15.6 billion dlrs last  year, 95 pct of it with the U.S.
11	The surplus helped swell Taiwan's foreign exchange reserves  to 53 billion dlrs, among the world's largest.
12	We must quickly open our markets, remove trade barriers and  cut import tariffs to allow imports of U.S. Products, if we  want to defuse problems from possible U.S.
13	Retaliation, said  Paul Sheen, chairman of textile exporters ltTaiwan Safe Group.
14	A senior official of South Korea's trade promotion  association said the trade dispute between the U.S. And Japan  might also lead to pressure on South Korea, whose chief exports  are similar to those of Japan.
15	Last year South Korea had a trade surplus of 7.1 billion  dlrs with the U.S., Up from 4.9 billion dlrs in 1985.
16	In Malaysia, trade officers and businessmen said tough  curbs against Japan might allow hard-hit producers of  semiconductors in third countries to expand their sales to the  U.S.
17	In Hong Kong, where newspapers have alleged Japan has been  selling below-cost semiconductors, some electronics  manufacturers share that view.
18	But other businessmen said such  a short-term commercial advantage would be outweighed by  further U.S. Pressure to block imports.
19	That is a very short-term view, said Lawrence Mills,  director-general of the Federation of Hong Kong Industry.
20	If the whole purpose is to prevent imports, one day it will  be extended to other sources.
21	Much more serious for Hong Kong  is the disadvantage of action restraining trade, he said.
22	The U.S. Last year was Hong Kong's biggest export market,  accounting for over 30 pct of domestically produced exports.
23	The Australian government is awaiting the outcome of trade  talks between the U.S. And Japan with interest and concern,  Industry Minister John Button said in Canberra last Friday.
24	This kind of deterioration in trade relations between two  countries which are major trading partners of ours is a very  serious matter, Button said.
25	He said Australia's concerns centred on coal and beef,  Australia's two largest exports to Japan and also significant  U.S. Exports to that country.
26	Meanwhile U.S.-Japanese diplomatic manoeuvres to solve the  trade stand-off continue.
27	Japan's ruling Liberal Democratic Party yesterday outlined  a package of economic measures to boost the Japanese economy.
28	The measures proposed include a large supplementary budget  and record public works spending in the first half of the  financial year.
29	They also call for stepped-up spending as an emergency  measure to stimulate the economy despite Prime Minister  Yasuhiro Nakasone's avowed fiscal reform program.
30	Deputy U.S. Trade Representative Michael Smith and Makoto  Kuroda, Japan's deputy minister of International Trade and  Industry MITI, are due to meet in Washington this week in an  effort to end the dispute.  
31	It also said that each year 1.575 mln tonnes, or 25 pct, of  China's fruit output are left to rot, and 2.1 mln tonnes, or up  to 30 pct, of its vegetables.
32	The paper blamed the waste on  inadequate storage and bad preservation methods.
33	It said the government had launched a national programme to  reduce waste, calling for improved technology in storage and  preservation, and greater production of additives.
34	The paper  gave no further details.  
35	MITI is expected to lower the projection for primary energy  supplies in the year 2000 to 550 mln kilolitres kl from 600  mln, they said.
36	The decision follows the emergence of structural changes in  Japanese industry following the rise in the value of the yen  and a decline in domestic electric power demand.
37	MITI is planning to work out a revised energy supply/demand  outlook through deliberations of committee meetings of the  Agency of Natural Resources and Energy, the officials said.
38	They said MITI will also review the breakdown of energy  supply sources, including oil, nuclear, coal and natural gas.
39	Nuclear energy provided the bulk of Japan's electric power  in the fiscal year ended March 31, supplying an estimated 27  pct on a kilowatt/hour basis, followed by oil 23 pct and  liquefied natural gas 21 pct, they noted.  
40	It said Janunary/March imports rose to 65.1 billion baht  from 58.7 billion.
41	Thailand's improved business climate this  year resulted in a 27 pct increase in imports of raw materials  and semi-finished products.
42	The country's oil import bill, however, fell 23 pct in the  first quarter due to lower oil prices.
43	The department said first quarter exports expanded to 60.6  billion baht from 56.6 billion.
44	Export growth was smaller than expected due to lower  earnings from many key commodities including rice whose  earnings declined 18 pct, maize 66 pct, sugar 45 pct, tin 26  pct and canned pineapples seven pct.
45	Products registering high export growth were jewellery up  64 pct, clothing 57 pct and rubber 35 pct.  
46	Prices of Malaysian and Sumatran CPO are now around 332  dlrs a tonne CIF for delivery in Rotterdam, traders said.
47	Harahap said Indonesia would maintain its exports, despite  making recent palm oil purchases from Malaysia, so that it  could possibly increase its international market share.
48	Indonesia, the world's second largest producer of palm oil  after Malaysia, has been forced to import palm oil to ensure  supplies during the Moslem fasting month of Ramadan.
49	Harahap said it was better to import to cover a temporary  shortage than to lose export markets.
50	Indonesian exports of CPO in calendar 1986 were 530,500  tonnes, against 468,500 in 1985, according to central bank  figures.  
51	The ban, imposed a week ago over a pay claim, had prevented  the movement in or out of port of nearly 20 vessels, they said.
52	The pay dispute went before a hearing of the Arbitration  Commission today.
53	Meanwhile, disruption began today to cargo handling in the  ports of Sydney, Newcastle and Port Kembla, they said.
54	The industrial action at the NSW ports is part of the week  of action called by the NSW Trades and Labour Council to  protest changes to the state's workers' compensation laws.
55	The shipping sources said the various port unions appear to  be taking it in turn to work for a short time at the start of  each shift and then to walk off.
56	Cargo handling in the ports has been disrupted, with  container movements most affected, but has not stopped  altogether, they said.
57	They said they could not say how long the disruption will  go on and what effect it will have on shipping movements.  
58	He told Reuters in a telephone interview that trading in  palm oil, sawn timber, pepper or tobacco was being considered.
59	Trading in either crude palm oil CPO or refined palm oil  may also be introduced.
60	But he said the question was still  being considered by Trade Minister Rachmat Saleh and no  decision on when to go ahead had been made.
61	The fledgling exchange currently trades coffee and rubber  physicals on an open outcry system four days a week.
62	Several factors make us move cautiously, Nainggolan said.
63	We want to move slowly and safely so that we do not make a  mistake and undermine confidence in the exchange.
64	Physical rubber trading was launched in 1985, with coffee  added in January 1986.
65	Rubber contracts are traded FOB, up to  five months forward.
66	Robusta coffee grades four and five are  traded for prompt delivery and up to five months forward,  exchange officials said.
67	The trade ministry and exchange board are considering the  introduction of futures trading later for rubber, but one  official said a feasibility study was needed first.
68	No  decisions are likely until after Indonesia's elections on April  23, traders said.
69	Trade Minister Saleh said on Monday that Indonesia, as the  world's second largest producer of natural rubber, should  expand its rubber marketing effort and he hoped development of  the exchange would help this.
70	Nainggolan said that the exchange was trying to boost  overseas interest by building up contacts with end-users.
71	He said teams had already been to South Korea and Taiwan to  encourage direct use of the exchange, while a delegation would  also visit Europe, Mexico and some Latin American states to  encourage participation.
72	Officials say the infant exchange has made a good start  although trading in coffee has been disappointing.
73	Transactions in rubber between the start of trading in  April 1985 and December 1986 totalled 9,595 tonnes, worth 6.9  mln dlrs FOB, plus 184.3 mln rupiah for rubber delivered  locally, the latest exchange report said.
74	Trading in coffee in calendar 1986 amounted to only 1,905  tonnes in 381 lots, valued at 6.87 billion rupiah.
75	Total membership of the exchange is now nine brokers and  44 traders.  
76	They said the shipment was for April 8 to 20 delivery.  
77	The mine, to be known as the Goodall project, will be owned  60 pct by WMC and 40 pct by a local W.R. Grace and Co ltGRA  unit.
78	It is located 30 kms east of the Adelaide River at Mt.
79	Bundey, WMC said in a statement      It said the open-pit mine, with a conventional leach  treatment plant, is expected to produce about 50,000 ounces of  gold in its first year of production from mid-1988.
80	Annual ore  capacity will be about 750,000 tonnes.  
81	Osaka-based Sumitomo, with desposits of around 23.9  trillion yen, merged with Heiwa Sogo, a small, struggling bank  with an estimated 1.29 billion dlrs in unrecoverable loans, in  October.
82	But despite the link-up, Sumitomo President Koh Komatsu  told Reuters he is confident his bank can quickly regain its  position.
83	We'll be back in position in first place within three  years, Komatsu said in an interview.
84	He said that while the merger will initially reduce  Sumitomo's profitability and efficiency, it will vastly expand  Sumitomo's branch network in the Tokyo metropolitan area where  it has been relatively weak.
85	But financial analysts are divided on whether and how  quickly the gamble will pay off.
86	Some said Sumitomo may have paid too much for Heiwa Sogo in  view of the smaller bank's large debts.
87	Others argue the merger  was more cost effective than creating a comparable branch  network from scratch.
88	The analysts agreed the bank was aggressive.
89	It has  expanded overseas, entered the lucrative securities business  and geared up for domestic competition, but they questioned the  wisdom of some of those moves.
90	They've made bold moves to put everything in place.
91	Now  it's largely out of their hands, said Kleinwort Benson Ltd  financial analyst Simon Smithson.
92	Among Sumitomo's problems are limits placed on its move to  enter U.S. Securities business by taking a share in American  investment bank Goldman, Sachs and Co.      Sumitomo last August agreed to pay 500 mln dlrs for a 12.5  pct limited partnership in the bank, but for the time being at  least, the Federal Reserve Board has forbidden them to exchange  personnel, or increase the business they do with each other.
93	The tie-up is widely looked on as a lame duck because the  Fed was stricter than Sumitomo expected, said one analyst.
94	But Komatsu said the move will pay off in time.
95	Regulations will change in the near future and if so,  we can do various things.
96	We only have to wait two or three  years, not until the 21st century, Komatsu said.
97	Komatsu is also willing to be patient about possible routes  into the securities business at home.
98	Article 65 of the Securities and Exchange Act, Japan's  version of the U.S. Glass-Steagall Act, separates commercial  from investment banking.
99	But the walls between the two are crumbling and Komatsu  said he hopes further deregulation will create new  opportunities.
100	We need to find new business chances, Komatsu said.
101	In some  cases these will be securities related, in some cases trust  bank related.
102	That's the kind of deregulation we want.
103	Until such changes occur, Sumitomo will focus on such  domestic securities business as profitable government bond  dealing and strengthening relations with Meiko Securities Co  Ltd, in which it holds a five pct share, Komatsu said.
104	He said Sumitomo is cautiously optimistic about entering  the securities business here through its Swiss universal bank  subsidiary, Banca del Gottardo.
105	The Finance Ministry is expected to grant licences to  securities subsidiaries of U.S. Commercial banks soon,  following a similar decision for subsidiaries of European  universal banks in which the parent holds a less than 50 pct.
106	But Komatsu is reluctant to push hard for a similar  decision on a Gottardo subsidiary.
107	We don't want to make waves.
108	We expect this will be allowed  in two or three years, he said.
109	Like other city banks, Sumitomo is also pushing to expand  lending to individuals and small and medium businesses to  replace disappearing demand from big business, he added.
110	The analysts said Sumitomo will have to devote a lot of  time to digesting its most recent initiatives, including the  merger with ailing Heiwa Sogo.
111	It's Sumitomo been bold in its strategies, said  Kleinwort's Smithson.
112	After that, it's a question of absorbing and juggling  around.
113	It will be the next decade before we see if the  strategy is right or wrong.
114	Asked by Reuters to clarify his statement on Monday in  which he said the pact should be allowed to lapse, Subroto said  Indonesia was ready to back extension of the ITA.
115	We can support extension of the sixth agreement, he said.
116	But a seventh accord we believe to be unnecessary.
117	The sixth ITA will expire at the end of June unless a  two-thirds majority of members vote for an extension.  
118	Banks, which bid for a total 12.2 billion marks liquidity,  will be credited with the funds allocated today and must buy  back securities pledged on May 6.
119	Some 14.9 billion marks will drain from the market today as  an earlier pact expires, so the Bundesbank is effectively  withdrawing a net 8.1 billion marks from the market with  today's allocation.
120	A Bundesbank spokesman said in answer to enquiries that the  withdrawal of funds did not reflect a tightening of credit  policy, but was to be seen in the context of plentiful  liquidity in the banking system.
121	Banks held an average 59.3 billion marks at the Bundesbank  over the first six days of the month, well clear of the likely  April minimum reserve requirement of 51 billion marks.
122	The Bundesbank spokesman noted that by bidding only 12.2  billion marks, below the outgoing 14.9 billion, banks  themselves had shown they felt they had plenty of liquidity.
123	Dealers said the Bundesbank is keen to prevent too much  liquidity accruing in the market, as that would blunt the  effectiveness of the security repurchase agreement, its main  open-market instrument for steering market interest rates.
124	Two  further pacts are likely this month over the next two weeks.
125	The Bundesbank is currently steering call money between 3.6  and 3.8 pct, although short-term fluctuations outside that  range are possible, dealers said.  
126	Atlas, the Philippines' biggest copper producer, said it  had been hit by depressed world copper prices.
127	It reported a  net loss of 976.38 mln pesos in the year ending December 1986,  compared with a net loss of 1.53 billion in 1985.
128	The company said it had been able to cut its losses because  its scaled-down copper operations in the central island of Cebu  started in the second half of 1986.
129	Atlas said negotiations were continuing on the acquisition  by Bond of the company's existing bank loans and their  restructuring into a gold loan.
130	A memorandum of understanding signed by the two sides in  October last year said Bond would acquire Atlas' total loans of  275 mln dlrs, to be repaid by the mining company in gold.
131	Atlas said the two sides were also discussing equity  infusion into Atlas and the creation of a development fund for  further exploration and development of the company's gold  properties in the central province of Masbate.
132	Wilson Banks, general manager of ltBond Corp International  Ltd in Hong Kong, told Reuters the Atlas statement on the  negotiations was reasonably accurate.
133	Banks said Bond Corp was seriously considering several  investments in the Philippines but did not give details.
134	In its statement, Atlas said development of the pre-World  War Two underground mines in Masbate had been accelerated and  the ore tonnage had increased, extending the operation's life  at least until 1993.  
135	Its overseas edition said the growth rate, which compares  with a target of seven pct for the whole of 1987, was rather  high but the base in the first quarter of 1986 was on the low  side.
136	Industrial output grew 4.4 pct in the first quarter of  1986.
137	It said China's industrial production this year has been  normal but product quality and efficiency need further  improvement.
138	It gave no further details.  
139	Demands that Japan open its farm products market, will  tell U.S. Officials at talks later this month that  liberalisation would harm existing U.S. Farm exports to Japan,  a senior ministry official said.
140	Imports from the U.S. Would drop due to active sales drives  by other suppliers, the official, who declined to be named,  said.
141	Japan is the largest customer for U.S. Farm products and  it is not reasonable for the U.S. To demand Japan liberalise  its farm import market, he said.
142	Agriculture Minister Mutsuki Kato has said if the U.S.
143	Insists Japan open its protected rice market it will also open  its wheat market, where volume and origin are regulated to  protect local farmers.
144	Australia and Canada could then increase their wheat  exports as they are more competitive than the U.S., He said.
145	End-users would also buy other origins, grain traders said.
146	U.S. Agriculture Secretary Richard Lyng, who is due to  visit Japan for talks between April 16-27, has said he will ask  Japan to offer a share of its rice market to U.S.
147	Suppliers and  remove quotas on U.S.
148	Beef and citrus imports.
149	Other countries are already cutting into the U.S. Market  share here.
150	Australia, the largest beef supplier to Japan, has  been trying to boost exports prior to the expiry of a four-year  beef accord next March 31.
151	Imports of U.S. Corn have fallen due to increased sales  from China and South America, while Japanese soybean imports  from Brazil are expected to rise sharply this year, although  the U.S. Will remain the largest supplier.
152	U.S. Feedgrain sales will also drop if Japan opens up its  beef imports, since Japan depends almost entirely on feedgrain  imports, mainly from the U.S., Japanese officials said.
153	An indication of the U.S.
154	Position came last December when  Under Secretary of Agriculture Daniel Amstutz said Japan has  the potential to provide one of the largest boosts to U.S.
155	Agricultural exports, with the beef market alone representing  some one billion dlrs in new business.
156	The U.S. Has also asked the General Agreement on Tariffs  and Trade to investigate the legality of Japanese import  controls on 12 other farm products, including fruit juices,  purees and pulp, tomato juice, ketchup and sauce, peanuts,  prepared beef products and miscellaneous beans.
157	To help calm heated trade relations with the U.S., Japan's  top business group Keidanren has urged the government to remove  residual import restrictions on agricultural products.
158	But Agriculture Minister Kato has ruled out any emotional  reaction, and the senior ministry official said the farm issue  should not become a scapegoat for trade pressure in the  industrial sector.
159	Japan is the largest buyer of U.S. Farm products, and these  issues should not be discussed on the same table, the official  said.  
160	Shareholders will be asked to approve the issue and an  increase in authorised capital to 175 mln shares from 125 mln  at a general meeting on May 1, it said in a statement.
161	The new shares will rank for dividends declared after  October 31.
162	Amatil, in which B.A.T.
163	Industries Plc ltBTI.L  holds a 41 pct stake, said it does not expect to maintain its  latest annual dividend rate of 29 cents a share on the enlarged  capital.  
164	Among the main factors affecting liquidity, bills maturing  in official hands and the take-up of treasury bills will drain  some 505 mln stg, while bills for repurchase by the market will  remove around 194 mln.
165	In addition, a rise in note circulation  and bankers' balances below target will each drain around 110  mln stg.
166	Partly offsetting these outflows, exchequer transactions  will add some 690 mln stg to the system today.  
167	He told a press conference the government planned to  increase investment, speed up the opening of the local market  to foreign imports and gradually adjust its currency to hold  the surplus at a proper level.
168	But he said the government would not allow the won to  appreciate too much in a short period of time.
169	South Korea has  been under pressure from Washington to revalue the won.
170	The U.S. has been under pressure from Korea.
171	Wants South Korea to cut its trade surplus with  the U.S., Which rose to 7.4 billion dlrs in 1986 from 4.3  billion dlrs in 1985.
172	Kim, who is also economic planning minister, said prospects  were bright for the South Korean economy, but the government  would try to hold the current account surplus to around five  billion dlrs a year for the next five years.
173	Our government projections of eight pct GNP growth, five  billion dlrs of current account surplus and 12 pct growth in  exports all seemed to be reasonable early this year.
174	But now  the surplus is growing faster than we expected, he said.
175	Trade ministry officials said South Korea's exports rose 35  pct to 9.34 billion dlrs in the first three months of this  year, while imports rose only 8.5 pct to 8.2 billion dlrs.
176	Kim said the swing of South Korea's current account to a  surplus of 4.65 billion dlrs in 1986 from an 890 mln dlr  deficit in 1985 was very significant.
177	The surplus enabled the  country to reduce its foreign debt last year for the first  time.
178	South Korea's foreign debt, which fell to 44.5 billion dlrs  in 1986 from 46.8 billion in 1985, is still among the largest  in Asia.
179	This huge amount of our foreign debt has been one of the  major constraints on our development Last year was a major  turning point for the Korean economy, Kim said.
180	Kim said his government plannned to reduce the ratio of  foreign debt to the country's GNP to about 20 pct in 1991, from  about 50 pct in 1986.
181	The government, however, does not want to accelerate  reducing the debt by making an excessive trade surplus, he  said.
182	Kim said a sudden rise in the surplus would cause inflation  and lead to trade friction with Seoul's major trading partners,  particularly the United States.
183	We need a surplus because we have to reduce our debt, but  we are taking measures to hold the size of the surplus at a  proper level, Kim said.  
184	The prospective plant would cost an estimated 270 mln  Canadian dlrs and would produce methyl tertiary butyl ether  MTBE from raw materials available locally, it said.
185	The partners in the study are Neste Oy, Celanese Canada  Inc, Hoechst Celanese Corporation and Trade Mountain Pipe Line  Company Ltd, of Vancouver, B.C.
186	The Edmonton site was suitable because of the raw materials  availability, the proximity to pipeline transportation and the  important capital and operating advantages gained by locating  on an existing Celanese Canada site, the statement said.
187	The partners would look into the feasibility of a plant  producing 500,000 tonnes per annum of MTBE, an octane enhancer  that can replace tetra ethyl lead.
188	Most of the MTBE would be targeted for the United States  where lead levels in gasoline are being lowered because of  health concerns, the statement added.
189	Canadian lead limits are currently 11 times as high as the  U.S. Limit but lead is scheduled for virtual elimination in  Canada by 1993, which should create a Canadian demand for MTBE,  it said.
190	Finland's Neste Oy, whose turnover last year was over five  billion dlrs, has extensive experience with MTBE.
191	It has a  major investment in an MTBE plant in Saudi Arabia.
192	The Edmonton, Alberta plant would be scheduled to go on  stream in late 1989, the statement said.  
193	CRA and Whim Creek did not disclose the price yesterday.
194	Whim Creek will hold 44 pct of the consortium, while  ltAustwhim Resources NL will hold 27 pct and ltCroesus Mining  NL 29 pct, it said in a statement.
195	As reported, Forrest Gold owns two mines in Western  Australia producing a combined 37,000 ounces of gold a year.
196	It  also owns an undeveloped gold project.  
197	A DIW report added the general downturn in the economy  since last Autumn had had a negative effect on the willingness  of firms to take on workers.
198	It referred to a marked downturn  in the number of workers taken on in the capital goods sector.
199	New orders for manufacturing industry goods have mostly  fallen or stagnated in recent months, but data for February  finally showed a reversal of the trend, with a 1.9 pct rise.  
200	The shares later eased back to 481p.
201	Bowater reported a  32.4 mln stg profit in 1985.
202	The company said in a statement accompanying the results  that the underlying trend showed improvement and it intended to  expand further by developing existing businesses and seeking  new opportunities.
203	It added that it had appointed David Lyon, currently  managing director of Redland Plc ltRDLD.L as its new chief  executive.
204	Analysts noted that Bowater's profits of 18.9 mln stg from  13.2 mln previously had been given a boost by pension benefits  of 4.5 mln stg.
205	Profit from Australia and the Far East showed the greatest  percentage rise, jumping 55.0 pct to 15.5 mln from 10.0 mln,  while the profit from U.K. Operations rose 30.7 pct to 24.7  mln, and Europe, 42.9 pct to 11.0 mln.  
206	Citibank's Oslo treasury head Bjoern Sejerstad told  Reuters, Citibank, one of seven foreign bank subsidiaries  operating in Norway, lost money because of restructuring for  investment banking away from commercial banking and an economic  slump in Norway following last year's plunge in oil prices.
207	Foreign banks have been allowed to operate susbidiaries in  Norway since 1985.
208	Foreign banking analysts in Oslo said access to Norway's  second-hand securities and equities markets, to be approved  later this spring, and lower primary reserve requirements would  make profit this year.
209	Citibank lost 490,000 crowns in Norway in 1985, but  Sejerstad said a profit was likely this year because of planned  liberalisation and better economic performance, helped by a  steadier oil price of around 18 dlrs a barrel.
210	Earlier this year, Chase Manhattan Bank's ltCMB.N  subsidiary decided to stop foreign exchange trading after heavy  losses and focus instead on fee-based merchant banking.  
211	It said in a statement that the two factors led to a  squeeze on refining margins and an 18.24 pct fall in sales and  services income despite an unchanged level of activity.
212	Vieille Montagne, which is actively pursuing a  restructuring program, reported a 198 mln franc net loss, after  187 mln francs in provisions for the closure of an electrolysis  plant, compared with a 250 mln franc net profit in 1985.  
213	STAND TAKEN  European Community EC members of the  International Tin Council, except Britain, have said they are  prepared to back an extension of the International Tin  Agreement, an EC spokesman said.
214	He said at a meeting of EC states' representatives here  yesterday, Britain undertook to communicate its own decision to  its partners today.
215	It said it was not ready yesterday to take  a stand but did not say why.
216	He added nine other EC states backed an extension.
217	Spain  and Portugal, which are not members of the International Tin  Council, raised no objections to a common EC stance in favour.  
218	Michael Armacost, Under Secretary of State for Political  Affairs, was asked at a press conference whether Japan's moves  to boost its domestic economy and open its markets could  persuade the U.S. Not to impose tariffs on Japanese imports  said, and replied It is probably too early for the figures  to demonstrate that the situation has turned around and to  permit the result you have described.
219	Armacost said the U.S. Hopes Japan will take steps to lift  its domestic economy and reduce dependence on exports, remove  barriers to imports and settle outstanding trade issues.
220	There are obvious problems at the moment in the trade area,  but we do not wish those problems to divert attention from  important areas of cooperation that continue to exist on  security and political issues, he said.
221	The question is whether through cooperative actions between  our governments we can reduce the trade imbalance or whether  Congress takes action to reduce it through protectionist  legislation, he said.  
222	A spokesman for Padaeng Industry Co Ltd, the country's sole  exporter, attributed the decline to the company's lower stocks,  which averaged 5,000 tonnes in the first quarter against 16,000  tonnes in late 1985 when it began exporting.
223	The department said major buyers included China, Japan, the  Philippines, South Korea, Singapore and Taiwan.
224	Thailand exported 4,842 tonnes of zinc ingots during the  first quarter, down from 14,937 a year ago.  
225	Some said they believed the tonnage would probably be  smaller, at around 60,000 tonnes, but declined to give a view  on the likely restitution.
226	Last week, the European Commission  accepted 785,000 tonnes of sugar into intervention by operators  protesting about low rebates.
227	This might be a determining  factor in today's result, they added.  
228	Ramon Diaz, Secretary of the Presidential Commission on  Good Government PCGG, said Anheuser-Busch had told the  government it was interested in buying 14 mln B shares of San  Miguel.
229	He did not disclose the offered price.
230	Diaz said Australian brewer Alan Bond's Bond Corp Holdings  Ltd had offered 150 pesos per share for the B shares.
231	Diaz said New York investment bank Allen and Co Inc had  earlier said it was interested in buying all 38.1 mln  sequestered shares.
232	He told Reuters last month Elders IXL Ltd  ltELXA.S, the Melbourne-based brewing company, had also bid for  the B shares.
233	The Hong Kong Economic Journal last month quoted a  spokesman of Australian stock broker Jacksons Ltd as saying  that ltBarwon Farmlands Ltd, an Australian firm owned 30 pct by  ltAriadne Australia Ltd, was planning a Filipino branch in  order to buy the entire block of 38.1 mln shares.
234	Anheuser-Busch last year made a 150 mln dlr bid to buy ltSan  Miguel Brewery Ltd, a Hong Kong listed company which is 69.65  pct owned by ltNeptunia Corp Ltd, a San Miguel Corp subsidiary.
235	The talks broke down last June after the two sides said  they could not agree on the terms of the sale.  
236	High short-term interest rates, a bullish stock market and  an increasingly stable currency reflect a massive inflow of  fresh funds in the last two months, largely from Japanese and  U.S. Investors, analysts polled by Reuters said.
237	Fund managers want quality markets to park their cash in  and have settled on Australia, Britain and Canada as they  diversify from volatile U.S. Dollar instruments, they said.
238	A one percentage point fall in key 10-year bonds rates in  the past month, record share prices and a 10-month high for the  currency of 0.71 U.S. Dlrs all illustrated the inflow.
239	Official figures on the latest inflow of investment capital  are not available, but brokers said they received almost daily  inquiries from Japan and the United States.
240	These people have got trillions of dollars sloshing about  and they don't know what to do with it.
241	Some of that is ending  up here with the attraction of high interest rates and  reasonable currency stability, National Australia Bank Ltd  economist Brian Hamley said.
242	There is a 'flight to quality', Hamley said.
243	Australia may  not be in the best economic position, but there aren't too  many other countries where you'd want to put your money.
244	The stronger Australian dollar was also attracting  investors taking advantage of an appreciating currency against  the volatility of the U.S. Unit, analysts said.
245	We're looking a more favoured market than perhaps the U.S.  Where some people would be concerned about the value of the  U.S. Dollar, Lloyds Bank NZA Ltd chief economist Will Buttrose  said.
246	Why not put the money in Australia where entry is cheap  and the currency looks stable?
247	But turning that capital into more permanent productive  investment depends on government economic policy, he said.
248	It will only disappear if people lose confidence in the  direction in the economy, Buttrose said, adding that offshore  investors would carefully watch the government's promised tough  economic statement on May 14.
249	While happy to invest in bonds and other vehicles yielding  interest unobtainable elsewhere, fund managers could just as  easily reverse the flow -- particularly the Japanese, who were  badly hurt in the past by rapid falls in the Australian dollar  and hefty jumps in bond rates, analysts said.
250	It will remain very edgy money.
251	If something was not to be  delivered, if the statement wasn't considered tough enough, one  might see a substantial outflow, Buttrose said.
252	Offshore investors are eager to see Australia take tough  economic decisions to curb its 100 billion dlr foreign debt and  stubborn current account deficit, analysts said.
253	They are giving us the benefit of the doubt and I think  they would like to leave the money here, Buttrose said.
254	Reserve Bank policy has also reflected the increased  interest in investment in Australia and the need to shield  Japanese investors from rapid currency fluctuations.
255	Reserve Governor Bob Johnston last week acknowledged an  element of targeting the rate against the yen in currency  policy when he said authorities could not take their eyes off  the yen because of the crucial role of Japanese investors.
256	Analysts said they believed the Reserve Bank had worked  successfully in recent months to keep the Australian dollar  within the range of 100 to 103 yen.
257	Apart from its recovery against a weak U.S. Dollar, the  Australian dollar has also risen almost three pct on a  trade-weighted basis in the last three weeks.
258	Offshore buying has also played a role in the booming  Australian share market.
259	It has followed Wall Street and other  markets, but is also setting its own trend in response to the  weight of both domestic and offshore funds pouring into  equities, particularly in the gold sector.
260	The key all ordinaries index rose to a record 1,758.3  today, nearly 20 pct above its level at the end of 1986, while  the gold index has nearly doubled to a record 3,081.0 in the  same period.
261	The property sector is also sought after, with Japanese  companies that have invested heavily in the United States in  recent years turning their attention to undervalued real  estate, particularly in the tourism field.
262	Analysts pointed to the recent sale of Sydney's five-star  Regent Hotel to Japanese interests for more than 145 mln dlrs  as indicative of the type of property being sought.
263	They think they find good value real estate here which,  with long term and fixed capital investment, is the kind of  investment Australia needs, Buttrose added.  
264	Crucial will be the ability of the 13-member OPEC to hold  oil prices around a new benchmark of 18 dlrs a barrel in the  northern hemisphere summer when demand usually slackens.
265	Bankers estimate the economy, measured in terms of gross  domestic product gdp, shrank 19 pct in real terms last year  after contracting 8.1 pct the year before.
266	This was after taking into account inflation in consumer  prices of 1.5 pct in 1985, slowing to 1.0 pct in 1986.
267	Factors depressing economic activity include the  6-1/2-year-old Iran-Iraq war on Kuwait's doorstep, which  threatens the emirate's vital oil export lifeline through the  Gulf and has sapped business confidence.
268	But sentiment received a much-needed boost in September  when, after a series of piecemeal steps to combat a debt crisis  caused by the 1982 crash of local stock market, a comprehensive  new debt settlement program was introduced.
269	The share crash, result of a speculative spree in forward  trading, left 95 billion dlrs of post-dated cheques in default.
270	The cheques were also used as collateral for consumer  spending, thus generating an informal credit system.
271	Much of the debt has been watered down but big sums are  still owed by individuals and companies.
272	There was some 4.4 billion dinars about 15.7 billion dlrs  in outstanding bank credit at the end of 1986, of which  one-quarter to one-third was estimated by bankers to rank as  bad or doubtful debt.
273	But the government has repeatedly said it  will not allow any banks to go under.
274	The new debt settlement scheme entails a rescheduling of  problem credit over 10 to 15 years, depending on whether  debtors have regular cash flows or not.
275	Banks' shareholders and depositors will have their rights  guaranteed by the government -- an edict of vital significance  in a country of only 1.7 mln people where the financial sector  is the biggest after oil.
276	Kuwait is better placed than any other OPEC country to ride  out the oil glut, bankers and economists say.
277	Kuwait has an OPEC quota of 948,000 barrels per day bpd  compared with production capacity of 4.0 mln bpd mentioned last  year by Oil Minister Sheikh Ali al-Khalifa al-Sabah.
278	But strategic diversification into downstream operations in  Europe several years ago and a hefty refining investment at  home gives it guaranteed markets abroad and enables it to sell  over one-half of its output as high-grade refined oil products.
279	Oil industry sources say Kuwait is able to get an average  2.00 dlrs a barrel more by selling oil in the form of processed  product such as gas oil, kerosene and naphtha, rather than as  crude.
280	Bankers say the rebound in oil prices is the major reason  for cautious optimism.
281	Other reasons are low domestic  inflation, a bottoming out of the fall in imports in recent  years and signs government spending on productive sectors will  remain steady.
282	External accounts are in good shape, with an estimated 1.8  billion dinar current account surplus in 1986, 16 pct below  that for 1985, but still an achievement in the recession-hit  Gulf.
283	Kuwait's petrodollar reserves in mid-1986 were put  officially at over 80 billion dlrs, earning investment income  of the equivalent of about 3.65 billion dlrs a year.
284	But for the first time since the end of the oil boom, these  reserves may not be enough to prevent a real budget deficit for  the 1986/87 fiscal year ending June 30, bankers say.
285	In a budget portrayed by bankers as mildly contractionary,  revenues for 1986/87 were cut 38.6 pct and spending 11 pct,  doubling the nominal deficit to 1.33 billion dinars.
286	This left out income from state reserves, usually excluded  in official budget accounting, which are forecast by bankers at  up to 1.0 billion dinars in 1986/87, resulting in some  shortfall.
287	Bankers say it is too early to venture a forecast for  economic growth this year or next.
288	It depends on oil prices, one said.
289	This summer is  important.
290	Cabinet Affairs Minister Rashid al-Rashid said last Sunday  the cabinet has ratified recommendations to rationalise state  spending in favour of productive sectors and reactivate the  economy.
291	He gave no details but bankers say these are expected to be  spelled out in the 1987/88 budget, possibly in June.  
292	Output in 1987 is expected to reach around 4.5 mln tonnes,  unchanged from 1986, because of drought, low use of fertiliser  and overstressed palms, they said.
293	The growers were asked for their reaction to an Oil World  newsletter report that Malaysia's oil palm output is likely to  drop sharply this year.
294	Palm oil now sells at around 700 ringgit a tonne, or about  115 ringgit less than soybean oil, but Malaysia must sell more  palm oil to prevent a stock buildup that could damage the  industry, a leading grower told Reuters.
295	The country's palm oil stocks now total some 500,000 tonnes  against about 800,000 last March, the growers said.
296	The growers expect palm oil prices to ease later this year  due to pressure from South American and U.S.
297	Soybean output.
298	The current South American oilseed harvest, mainly soybean,  is likely to be around 25.7 mln tonnes against the previous  21.7 mln tonne crop, they said.
299	In addition, new U.S.
300	Soybean plantings are also expected  to enter the market around November when Malaysian palm oil  output peaks.
301	They said new planting of palms is also likely to slow,  with some 50,000 hectares expected to be planted with new trees  against 100,000 in 1986, although the effects of this reduction  will not be felt for about another three years.  
302	Redland already holds about 49 pct of Monier's 156.28 mln  issued shares, he said in a brief notice to the Australian  Stock Exchange.
303	Locke said shareholders would be advised as soon as the  discussions progressed and recommended that they keep their  shares.
304	Monier shares were trading at a 1987 high of 3.10 dlrs  today, up from the previous peak of 2.80 at yesterday's close,  and well above the 1987 low of 2.18 dlrs.
305	Monier is the largest concrete roof tile manufacturer in  Australia, the U.S. And New Zealand and the world's largest  marketer of fly ash, according to its annual report for 1985/86  ended June 30.
306	It recently reported first-half 1986/87 net fell to 15.02  mln dlrs from 17.09 mln a year earlier due to the Australian  housing downturn, although foreign earnings rose.  
307	The company has paid no dividend since the year ended  October 31, 1983, when it paid five yen.
308	It had a 4.44 billion yen current profit in the first half  of 1985/86.  
309	A three-man Japanese trade team is already in Washington  laying the groundwork for talks between Kuroda and Deputy U.S.  Trade Representative Michael Smith aimed at persuading the U.S.  Not to impose tariffs on certain Japanese products.
310	But Kuroda said he is taking no new proposals.
311	I have  nothing in my briefcase except an explanation of the current  situation, Kuroda told the daily newspaper Asahi Shimbun.
312	Kuroda said the U.S. Decision was based on incorrect data  and an exaggerated sense of MITI's power to control market  forces.
313	The U.S. Has excessive expectations.
314	To stabilise  supply-demand relations which have been disrupted by excess  inventories since 1985 will take some time, he said.
315	Kuroda also laid part of the blame for low U.S. Chip sales  in Japan on a lack of effort by American firms here.
316	He said if he fails in talks tomorrow and Friday to  forestall sanctions, he will seek further talks with U.S. Trade  Representative Clayton Yeutter.
317	U.S. Officials said this week's  talks are unlikely to delay imposition of tariffs.  
318	The one-sentence statement from Bell's headquarters  confirmed what its brokers Warburg Securities told Reuters in  London yesterday.
319	Bell previously held 10 pct of Standard.
320	Bell chairman Robert Holmes a Court, who is also a director  of Standard, was not available for comment on his company's  intentions in boosting its holding and other company officials  contacted here by Reuters declined to comment.  
321	The Mainichi Shimbun quoted Nippon Steel as saying that  China's State Planning Commission and some Chinese firms have  asked Japanese makers to sell them steel works and rolling  mills to expand steelmaking cheaply.
322	It named no sources.
323	A Nippon Steel spokesman told Reuters that China has made  no such official request, and the company was not considering  such sales at the moment.
324	But Mainichi quoted Nippon Steel officials as saying if  prices are reasonable, they would export their used mills to  China.
325	The paper said China's crude steel output totalled 52 mln  tonnes in calendar 1986 and that it plans to increase to 80 mln  by 1996.
326	Japan's steel industry rationalisation plan is aimed at  cutting production capacity sharply over the next few years.  
327	A statement said the firm expects to pay total dividends  for 1987 of not less than 40 cents a share on the expanded  capital.
328	Jardine Matheson decided to withdraw its issue because of a  joint announcement earlier today by Ronald Li, chairman of the  Stock Exchange of Hong Kong, and Securities Commissioner Ray  Astin, that the listings of new B shares would be barred.
329	The official announcement said this will include the  proposal by Jardine Matheson.
330	But the Jardine statement quoted chairman Simon Keswick as  saying We continue to believe that the issuing of B shares  would benefit shareholders, and regret that they will not be  given the opportunity to vote on the matter at this stage.
331	Keswick said the B share issue will benefit Jardine  Matheson's shareholders by giving the firm flexibility to issue  ordinary shares for expansion in future without diluting  existing shareholders' voting rights.
332	However, he added We certainly welcome the Secretary for  Monetary Affairs David Nendick's referral of this very  important matter to the Standing Committee on Company Law  Reform and are hopeful that the process will lead to the  development of general principles which can be embraced by all  constituents of the Hong Kong market.
333	Michael Armacost, Under Secretary of State for Political  Affairs, was asked at a press conference whether Japan's moves  to boost its domestic economy and open its markets could  persuade the U.S. Not to impose tariffs on Japanese imports  said, and replied It is probably too early for the figures  to demonstrate that the situation has turned around and to  permit the result you have described.
334	Armacost said the U.S. Hopes Japan will take steps to lift  its domestic economy and reduce dependence on exports, remove  barriers to imports and settle outstanding trade issues.
335	There are obvious problems at the moment in the trade area,  but we do not wish those problems to divert attention from  important areas of cooperation that continue to exist on  security and political issues, he said.
336	The question is whether through cooperative actions between  our governments we can reduce the trade imbalance or whether  Congress takes action to reduce it through protectionist  legislation, he said.  
337	The central bank intervened as a medium-sized trading house  sold dollars, putting pressure on the U.S. Currency, they said.
338	The dollar was also supported by a major electrical  consumer goods company, which was a speculative dollar buyer at  around 145.25 yen, they added.
339	The dollar opened at 145.33 yen against 145.60/70 in New  York and 145.25 at the close here yesterday.  
340	This compares with the bank's estimate of a shortage in the  system of around 300 mln stg which it earlier revised up from  250 mln.
341	The central bank made outright purchases of bank bills  comprising 46 mln stg in band three at 9-3/4 pct and seven mln  stg in band four at 9-11/16 pct.  
342	A Manila court yesterday issued an injunction barring UCPB  from selling the shares, which represent 31 pct of SMC's  outstanding capital stock of 121 mln shares, until hearings on  April 21 on a petition filed by Eduardo Cojuangco, a former  chairman of both SMC and UCPB.
343	Cojuangco said the Coconut Industry Investment Fund CIIF  and 1.4 mln farmers were the rightful owners of the shares.
344	Cojuangco said the shares were held in trust by UCPB and  represented a blue chip investment.
345	His petition said UCPB's  plans to sell the shares to SMC were a serious breach of  fiduciary duties.
346	The SMC sources said the proposed share sale could also be  held up by a second derivative suit filed before the Securities  and Exchange Commission SEC by Eduardo de los Angeles, a  government nominee on the company's board.
347	De los Angeles, who represents SMC's minority stockholders,  asked the SEC to block the transaction, approved last week by  the company's board.
348	On April 2 the board sanctioned the repurchase of the  sequestered shares for 4.79 billion pesos at 126 pesos per  share.
349	De los Angeles told the SEC the company's retained  earnings of 1.33 billion pesos would be wiped out by the  purchase of the shares and would prevent the declaration of  dividends.
350	De los Angeles said the share purchase would also violate  an SMC agreement with its creditors to maintain a 2.2-to-1 debt  to equity ratio.
351	He quoted SMC's chief financial director Ramon  del Rosario as telling the board that the transaction would  boost the ratio to 2.5-to-1.
352	In petitioning the SEC, de los Angeles amended an earlier  suit two weeks ago in which he charged SMC Chairman Andres  Soriano III and nine other directors of violating their duties.
353	De los Angeles' earlier complaint related to SMC assuming  last December a 26.5 mln dlr loan contracted by SMC's Hong Kong  subsidiary ltNeptunia Corp for a down payment on the shares.
354	The loan assumption was again ratified by last week's board  meeting.
355	An arbitration panel set up by President Corazon Aquino to  resolve the ownership issue is expected to submit its report by  April 15.
356	The amended suit filed by Eduardo de los Angeles is part of  a continuing attempt by certain elements, in complete disregard  of the facts and with questionable motives, to delay an early  disposition of the sequestered shares, San Miguel Corp said in  a statement.
357	Coming as it does, when San Miguel Corp and UCPB have  reached agreement on the price of the shares and the method of  payment, this suit is in direct contravention of the  government's expressed desire to reach an amicable settlement  of the controversy by April 15, the statement added.
358	A San Miguel spokesman said he had no comment on  Cojuangco's court petition, adding Any statement coming from  us might be interpreted as adversarial.
359	Meanwhile, Ramon Diaz, the head of a government panel which  sequestered the shares last year, said Soriano was not eligible  to buy the major portion of the shares because he was a United  States citizen.
360	The sequestered shares are split into 24 mln A shares,  which can only be owned by Filipinos, and 14 mln B shares which  are available to foreign buyers.
361	SMC sources said Soriano personally was not among  prospective buyers.
362	They said the shares would be purchased by  the ltA.Soriano group of companies, SMC, Neptunia and unnamed  institutional investors.
363	Soriano was named as one of the buyers  in a bid in March 1986 for 33 mln shares controlled by UCPB.
364	The sale was aborted when Diaz's Presidential Commission on  Good Government sequestered the shares on suspicion they were  owned by Cojuangco, a close associate of former President  Ferdinand Marcos.
365	Cojuangco lives in self-imposed exile in the  U.S..
366	The shares grew to 38.1 mln after a 15 pct stock dividend  announced last June.
367	We have no objection to Soriano buying the B shares, Diaz  told Reuters.
368	But everything is on hold now.
369	The SMC spokesman said he did not know if the controversy  would be resolved before the company's annual stockholders'  meeting, scheduled for May 14.
370	San Miguel Corp reported sales revenue of 12.2 billion  pesos in 1986, 11 pct above its 10.9 billion peso sales in  1985.
371	It said unaudited net profit was in the neighbourhood of  700 mln pesos, an increase of about 50 pct over 1985.  
372	As previously reported, the region has been undergoing a  severe dry spell, partly relieved by scattered rainfall, since  December, following the virtual failure of the summer wet  season.
373	Mills in the area have been reporting that their crops are  beginning to look healthy and greener and are putting on growth  since the rains began, the spokesman said from Brisbane.
374	Although the Mackay-Burdekin crop outlook is much better  than it was, there will be some cane losses, the spokesman  said.
375	But is too early to say what they will be and more rain  is needed to restore sub-soil moisture.
376	Elsewhere, in far north Queensland, the Bundaberg region  and southern Queensland, the cane is in excellent condition and  some mills are forecasting record crops, he said.
377	Initial 1987 crop estimates will probably be compiled  towards the end of May, he said.
378	The cane crush normally runs from June to December.  
379	They expected a maximum rebate of between 46.40 and 46.50  Ecus per 100 kilos, compared to last week's 46.864.
380	Earlier, traders in London said the outcome of the tender  was very hard to predict after last week's substantial award  and the placing of 785,000 tonnes of sugar into intervention.
381	They said they believed the tonnage would be around 60,000 but  declined to give a rebate figure.  
382	The company said in a statement that parent company net  profit last year will rise from the 72 billion lire reported in  1985.
383	Consolidated group premiums totaled 1,700 billion lire in  1986 compared with 1,490 billion the previous year.
384	Iniziativa Meta ltINZI.MI, the financial services unit of  Montedison Spa ltMONI.MI, controls the largest single stake in  Florence-based Fondiaria with 49.9 pct.  
385	The market had recovered slightly to around 1.72 dlrs a lb  yesterday from its four year low of 1.55 dlrs in early January,  due to the absence of Soviet nickel cathode deliveries, but  Shearson sees Soviet shipments soon returning to last year's  buoyant levels, which should ease current tightness.
386	Output reductions by producers will take effect later this  year but are likely to be offset by increases elsewhere.
387	Shearson said the nickel market will be virtually in  balance during 1987, with total non-Socialist world demand at  556,000 tonnes, compared with an estimated 544,000 tonnes in  1986, production at 505,000 tonnes 504,000 and imports from  Socialist countries at 47,000 tonnes 50,000.
388	It forecast prices will edge higher during the year from a  first quarter average of 1.67 dlrs a lb up to 1.77 dlrs in the  last quarter.
389	The year's average will be around 1.72 dlrs a lb  compared with 1.76 dlrs in 1986, using London Metal Exchange  cash metal prices in dollar terms and assuming an average 1987  sterling exchange rate of 1.55 dlrs.  
390	The company said 1986 dividend, which will be paid to the  Dutch state in its capacity of the firm's sole shareholder,  would be raised to 98 mln guilders from 70 mln guilders in  1985.
391	In an initial comment on its 1986 results, DSM said the  drop in 1986 turnover had been caused mainly by losses in the  company's fertilizer division.  
392	In a speech to the Institute of Contempory German Affairs  here, Poehl said It would be an extremely risky policy to aim  for a further substantial decline in the value of the dollar to  correct the trade deficit.
393	He said the United States could face a vicious circle of  depreciation, inflation and more depreciation if it took that  route.
394	Poehl noted West Germany had already taken steps to meet  U.S.
395	Demands for greater stimulation of its domestic economy,  accelerating tax cuts, cutting interest rates and tolerating  above-target money supply growth.
396	He said he would have been happy to have brought forward  five billion marks of tax cuts now planned for January 1988 to  the beginning of this year, but he said the government faced  political constraints getting such measures through the upper  house of the West German parliament.
397	But there were also limits to the impact West Germany could  accept on exports from a rising mark, he said.
398	Poehl said West Germany relied on exports for about  one-third of its gross national product, so a substantial  erosion of export markets could not be offset by increasing  demand at home.
399	A further appreciation of the mark could even be an  obstacle to further growth, he said.
400	Poehl said the Bundesbank had tolerated rapid money supply  growth last year because the country enjoyed low inflation and  because external factors, including low oil prices and  favourable terms of trade, had given some extra leeway.
401	But Poehl said West Germany now faced a difficult dilemma  over monetary policy.
402	The underlying rate of inflation was now two pct, not the  reported negative inflation rates last year, and West Germany  was affected more than before by exchange rate developments.
403	For the time being, we will have to focus our policy more  on the external side, and we can live with a more expansionary  money supply.
404	But we must be very careful, he said.
405	He said he shared some of the U.S. Concern about Japan's  trade surpluses, which affected European countries as well as  the United States.
406	Poehl welcomed the so-called Louvre accord of monetary  officials of major industrialized countries, saying the  importance of the February 22 agreement to stabilize exchange  rates had been underestimated.
407	All partners had agreed that the dollar was at about the  right level, and that further changes would damage growth, he  said.
408	This was a remarkable change in attitude, especially on the  part of our American colleagues, he said.
409	But he said there was still a danger that the correction of  the dollar's value could overshoot.  
410	In a newspaper advertisement, the company said the tender  and withdrawal rights will expire May Five unless extended.
411	The  offer, which has been approved by the Auxton board and is to be  followed by a merger at the same price, is conditioned on  receipt of a majority of Auxton's voting stock on a fully  diluted basis.  
412	The company said research spending is running 50 to 60 pct  above a year ago as it tries to commercialize its products as  quickly as possible, and increased expenditures are expected to  continue for several more quarters.
413	It said operating results  will fluctuate quarter to quarter, depending on the timing of  significant payments from commercial partners.
414	In the first three months of 1986, the company lost 150,000  dlrs.
415	The company changed its fiscal year in 1986 to a  calendar year from a year ending November 30.
416	For the first  quarter of last year, ended February 28, California Biotech  earned 114,000 dlrs.  
417	He noted Unilever has been indicating plans to dispose of  Stauffer, plus some smaller assets of Chesebrough, since the  bid was made in December.
418	The Stauffer sale prospectus has been sent in recent weeks  to a number of companies expressing interest.
419	The Unilever spokesman declined to say how much the group  expected to receive for Stauffer.
420	Chesebrough's footwear and tennis racket businesses are  also likely to be disposed of, he added.
421	Immediately available financial information on Stauffer,  which is wholly-owned, was limited, he added.
422	Nine month sales  to September 1986 were about 1.2 billion dlrs.
423	Unilever aquired Chesebrough for 3.2 billion dlrs in order  to benefit from its well-known toiletry brands and food  products.  
424	It said there can be no assurance that any transaction will  result from the talks.
425	It gave no further details.
426	Mark IV Industries Inc ltIV started tendering for all  Conrac shares at 25 dlrs each on March 24 and owned 9.9 pct of  Conrac before starting the bid.
427	Conrac is a producer and marketer of computer-related  information display and communications equipment which also  produces special purpose architectural and industrial products.
428	It owns Code-A-Phone Corp, a producer of telephone  answering machines.
429	For 1986, the company reported profits of 7.8 mln dlrs, or  1.16 dlrs a share, on sales of 153.9 mln dlrs.
430	It has nearly  6.8 mln shares outstanding.  
431	The products include fruit juices, purees and pulp, some  tomato products, peanuts, prepared beef products and beans.
432	The proposal will be used as the basis for a more detailed  LDP economic package to cut the trade surplus with the U.S.
433	The  party is expected to formalise the package before April 19,  when LDP General Council Chairman Shintaro Abe visits  Washington.  
434	The ban, imposed a week ago over a pay claim, had prevented  the movement in or out of port of nearly 20 vessels, they said.
435	The pay dispute went before a hearing of the Arbitration  Commission today.
436	Meanwhile, disruption began today to cargo handling in the  ports of Sydney, Newcastle and Port Kembla, they said.
437	The industrial action at the NSW ports is part of the week  of action called by the NSW Trades and Labour Council to  protest changes to the state's workers' compensation laws.  
438	Lammers, Queen's Commissioner for the province of  Flevoland, will not act as a mediator but will draw up an  agenda and procedures for meetings between the employers and  unions on a work-practice agreement and proposed redundancies.
439	Two months of strikes in the sector began on January 19 in  protest at employers' proposals for 350 redundancies from the  4,000-strong workforce this year.
440	The strikes were called off by the main port union FNV on  March 13 following an Amsterdam court's interim injunction  against the redundancies on procedural grounds.
441	The court is due to make a final ruling on May 7 but  Zeebregts said he expected the judgment to go against the  employers and they were therefore very likely to restart the  complicated legal redundancy procedures in the near future.
442	Meanwhile, the dispute over a new work-practice agreement  in the port's grain sector continued, with 30 maintenance  workers on strike, although loading was not affected, a  spokesman for Graan Elevator Mij, the largest employer in the  sector, said.
443	The employers have written to the union asking it to  reconsider its position and a meeting of union members has been  called for tomorrow.  
444	In band one, it bought 31 mln stg of treasury bills and  three mln stg of bank bills at 9-7/8 pct, while in band two it  bought 69 mln stg of bank bills at 9-13/16 pct.
445	In addition, it  bought 63 mln stg of band three bank bills at 9-3/4 pct.
446	This brings the total assistance by the Bank so far today  to 219 mln stg against a liquidity shortage it has estimated at  around 300 mln stg.  
447	Today the company reported first quarter earnings of 20.6  mln dlrs on sales of 238.0 mln dlrs, up from earnings of 16.1  mln dlrs on sales of 188.8 mln dlrs.  
448	Net includes pretax loan loss provisions of 90,000 dlrs vs  56,250 dlrs and gain on sale of securities of 113,432 dlrs vs  88,946 dlrs.  
449	In March 1986, the figure stood at 2.4 pct.  
450	Rod Canion, president and chief executive officer of  Compaq, said he expects sales of over 200 mln dlrs for the  period ending March 31, above analysts' estimates of 165-185  mln dlrs.
451	He added that earnings per share would exceed  analysts estimates of as high as 42 cts a share.
452	Compaq reported earnings of 8.3 mln dlrs, or 30 cts a  share, and sales of 144 mln dlrs for the first quarter 1986.
453	The company said demand for its DESKPRO 386, PORTABLE III  and the new COMPAQ DESKPRO 286 will contribute to the sales  increase.
454	The initial demand for the recently introduced COMPAQ  PORTABLE III and the new models of the COMPAQ DESKPRO 286  exceeds that of any other Compaq personal computers, Canion  said.
455	We saw continued demand for our personal computers  across the quarter, with March 1987 being a particularly  strong month.  
456	INTERNATIONAL ltIU TO SELL INSURANCE UNITS  I.U.
457	International Co said it  reached a preliminary agreement to sell the Hawaiian Insurance  Cos to Hawaiian Electric Industries Inc. ltHE.
458	Terms of the transaction were not disclosed, the company  said.
459	The transaction is subject to the execution of definitive  agreements, certain governmental approvals and approvals by the  boards of directors involved, I.U.
460	International said.
461	Hawaiian Electric said the planned purchase was part of its  strategy to increase the company's investment in selected  service industries in Hawaii, including financial services.  
462	Speaking to the National Association of Manufacturers,  Proxmire said recent insider trading stock scandals increased  the chance that Congress will act to curb abuses.
463	We are proposing legislation that would provide for more  disclosure, would be fairer to all shareholders, and would  insure that takeovers are properly financed, he said.
464	Among the provisions, the bill would reduce the threshold  for notifying the Securities and Exchange Commission that a  investor or group has acquired a percentage of stock in a  company to three pct from the current five pct threshold within  10 days, Proxmire said.
465	In addition, there would be a pre-notificaton requirement  that an investor intended to aquire three pct that would have  to filed with the SEC.
466	Proxmire said the pre-notification requirement was meant to  prevent arbitragers from having a jump on the general public in  knowing about coming takeover attempts.
467	Proxmire said he would call for extending the period that a  tender offer must be kept open under the Williams Act to 60  business days from the current 20 business days.
468	His bill would provide for private suits if the acquiring  company violated the time period on the tender offer.
469	To correct abuses in the financing of takeovers, Proxmire  said the legislation would aim at insuring current margin  requirments are properly enforced.
470	The Federal Reserve Board has a 50 pct margin requirement  for purchasing stock, but Proxmire said it is not generally  enforced in hostile takeovers.
471	Rather, the groups or individuals leading a takeover  declare that they can raise the capital for a takeover without  actually putting any of their own money, Proxmire said.
472	He said his bill would allow private suits for damages for  failure to meet the Federal Reserve's 50 pct margin  requirements.
473	The bill also would require more disclose when several  investors form an alliance in a hostile takeover.
474	When Pickens and Icahn get together we want people to know  about it, Proxmire said.
475	Proxmire said he favored the approach used in Britain  towards two-tiered tender offers that insures that all  shareholders recieve equal treatment.
476	He said he expected amendments to the bill also would cover  defensive mechanisms such as green mail and poison pills.
477	Proxmire said he intended to introduce his bill later this  month and predicted the Senate committee would act this spring.
478	He said he was hopeful Congress could pass a bill this  year.  
479	Brazil suspended interest payments on its 68 billion dlrs  of medium- and long-term debt on February 22.
480	U.S. banking regulations do not require banks to stop  accruing interest on loans until payments are 90 days overdue,  but Bankers Trust said it acted now because of the high  potential of a continued suspension that would result in  reaching the 90-day limit in the second quarter of 1987.
481	Assuming no cash payments at current interest rates are  received for the rest of 1987, Bankers Trust estimated that  full-year net income would be reduced by about 30 mln dlrs.
482	Bankers Trust said it assumes that debt negotiations  between Brazil and its commercial bank lenders will lead to the  resumption of interest payments.
483	The negotiations resume in New York on Friday when central  bank governor Francisco Gros is expected to ask banks for a  90-day rollover of some 9.5 billion dlrs of term debt that  matures on April 15.  
484	UK INTERVENTION BD SAYS EC SOLD 118,350 TONNES WHITE SUGAR AT REBATE 46.496 ECUS.  
485	Stoltenberg told journalists he saw no fundamental weakness  of the February 22 agreement of the Group of Five countries and  Canada to keep exchange rates near the then-current levels.
486	But he declined to say what measures would be discussed  ahead of a communique of the Group of Seven ministers later  today.
487	Stoltenberg and Bundesbank President Karl Otto Poehl said  the importance of the Paris agreement, also known as the Louvre  accord, had been underestimated.
488	Stoltenberg said there is greater agreement now among major  countries than six months ago, at the time of the annual  meeting of the International Monetary Fund and World Bank,  marked by sharp discord between the United States and its major  trading partners.
489	There is no fundamental weakness of the Paris accord, he  said.
490	We will be looking at ways of strengthening it, but I do  not want to discuss that here.
491	Stoltenberg said the Louvre agreement was working despite a  slight firming of the yen against the dollar.
492	And Poehl noted that the dollar/mark parity was unchanged  since February 22 without the Bundesbank having had to sell  marks to support the dollar.
493	The Louvre agreement has been honored by the market, he  said.
494	Poehl said West Germany had lived up to its side of the  bargain in Paris by preparing the way for tax cuts to be  accelerated as a way of stimulating growth.
495	Poehl said, however, that Japan had not yet fulfilled its  pledges for economic stimulation.
496	And we will have to see if the United States is able to do  what they promised in Paris on reducing the budget deficit --  and get it through Congress, he added.
497	Stoltenberg reiterated West German concern about a further  fall in the dollar, noting that the mark was up 85 pct against  the dollar and nearly 20 pct on a trade-weighted basis.
498	You cannot expect that to go unnoticed in an economy.
499	And  it is not just a German problem, it is a European problem, he  said.  
500	INTERVENTION BOARD DETAILS EC SUGAR SALES  A total 118,350 tonnes of current series  white sugar received export rebates of a maximum 46.496  European Currency Units Ecus per 100 kilos at today's  European Community EC tender, the U.K.
501	Intervention Board  said.
502	Out of this, traders in the U.K.
503	Received 37,800 tonnes, in  France 34,500, in West Germany 20,000, in Belgium 18,500, in  Spain 5,800 and in Denmark 1,750 tonnes, it added.
504	Earlier today, London traders had declined to give a  projected view on the level of subsidy although some said total  tonnage awards would be around 60,000 tonnes.
505	Paris traders foresaw between 60,000 and 100,000 tonnes  being authorised for export at a 46.40/46.50 Ecu subsidy.
506	Cumulative sales authorisations for the current season  1986/87 now stand at 2,194,970 tonnes 43 weeks.
507	Last week saw 102,350 tonnes whites authorised for export  under licences to end-Sep at the higest ever rebate of 46.864  European Currency Units Ecus per 100 kilos.  
508	The generally strong outlook bodes well for significantly  improved earnings this year, Burnell Roberts, chairman and  chief executive officer said.
509	Earlier, the company reported first quarter earnings of  34.2 mln dlrs, or 1.09 dlrs a share, versus 20.3 mln dlrs, or  65 cts a share, in last year's first quarter.
510	In 1986 the company reported earnings from continuing  operations of 109.3 mln dlrs, or 3.50 dlrs a share.
511	Mead said its first quarter benefitted from stronger market  conditions and improved operations.
512	The combination of capital improvement programs and more  employee involvement has been paying off throughout our paper  operations, Roberts said.
513	He added that Mead's pulp and paperboard businesses are  operating well as prices have improved and strong demand has  placed most products in a sold-out position through the middle  of the year.
514	Mead said sales of its unbleached coated paperboard was  particularly strong, up 13 pct versus the first quarter 1986.  
515	Terms were not disclosed.
516	Ownership of the combined company with 18.8 pct for the  current shareholders of Canadian Bashaw and 81.2 pct to the  current shareholders of Erskine, the companies said.  
517	The company went public during 1986.
518	Entourage also said it has started marketing a solid  perfume packaged in a lipstick tube called Amadeus, retailing  at 15 dlrs.
519	The company also said it has acquired North Country Media  Group, a video productions company.  
520	WOOLWORTH CO SAYS IT HIKES DIVIDEND TO 33 CTS A SHARE FROM 28 CTS  F.W.
521	WOOLWORTH CO SAYS IT HIKES DIVIDEND TO 33 CTS A SHARE FROM 28 CTS  
522	WOOLWORTH CO ltZ HIKES DIVIDEND  Qtly div 33 cts vs 28 cts prior      Pay June 1      Record May 1  
523	Conditions are generally good and the average sowing date  for the crop is expected to be around April 11, against April  23 last year, and a 10-year average of April 14, the spokesman  added.
524	It is far too early yet to say what kind of output we can  expect when it comes to harvest in September, but at least the  crop is off to a very good start, he said.
525	Last year, the Netherlands planted a record 137,600  hectares of sugar beet and produced a record 1.2 mln tonnes of  white sugar, substantially more than the country's combined A  and B quota of 872,000 tonnes.
526	This year, however, a self-imposed quota system has been  introduced with the aim of cutting plantings to 130,000  hectares and reducing white sugar output to around 915,000  tonnes to minimise the amount of non-quota C sugar produced.
527	Only farmers with a record of growing suger beet have been  allotted quotas.
528	This is expected to prevent the area being  boosted by dairy or cereal farmers moving into sugar.  
529	Out of this, traders in France received 34,500 tonnes, in  the U.K. 37,800, in West-Germany 20,000, in Belgium 18,500, in  Spain 5,800 and in Denmark 1,750 tonnes.  
530	A spokesman said VW's supervisory board will meet tomorrow  to discuss the payout.
531	A statement will be made afterwards.
532	VW has also said disclosed profits for 1986 will reach  their 1985 level, despite provisions of a possible 480 mln  marks linked to the currency affair.
533	The figure is virtually  the same as the 477 mln mark 1985 parent company net profit.
534	When VW first confirmed the currency scandal on March 10 it  said the management board would propose an unchanged 10-mark  dividend to the supervisory board.
535	A dividend of 11 marks would  be proposed for the company's new preference shares.
536	Share analysts said they saw supervisory board approval of  the management board proposal as virtually a formality.
537	Anything else would be more than a surprise, one said.
538	Company sources said VW would have to dig into reserves to  maintain the disclosed profit.
539	Parent company reserves stood at  around three billion marks at end-1985.  
540	It said the facilities, which contain approximately 2,500  beds in seven western states, were bought from Don Bybee and  Associates, of Salem,Ore.
541	The acquistion brings to 57 health care facilities acquired  in the last three months, the company said.  
542	loan loss provision 35 mln dlrs vs 70 mln year earlier.  
543	As a result of the split, Hanover said it increases the  number of authorized shares of capital stock from 10.4 mln,  having a par value of one dlr, to 20.9 mln, also having a par  value of one dlr.
544	The stock split is payable April 30 to stockholders of  record April 10, Hanover said.  
545	It said it acquired guard service companies C.S.C.
546	Security  Gaurd Service of Paramus, N.J., from Cartel Security  Consultants Inc, the Guard Services Division of Security  Services of America of Wayne, N.J., Capital Investigations and  Protective Agency of Hackensack, N.J., and Meyer Detective  Agency Inc of National Park, N.J.
547	The company said it bought alarm service operations  Certified Security Services Inc of Key West, Fla., Custom  Security Services of Myrtle Beach, S.C., A-T-E Security Group  Inc of Houston and the Louisville, Kent and Nashville, Tenn,  offices of Wells Fargo Alarm Services.  
548	Last December, a 120 pct increase in the consumer price for  refined maize meal, a Zambian staple, led to food riots in  which at least 15 people died.
549	That price increase, which President Kenneth Kaunda later  revoked, followed pressure by the International Monetary Fund  IMF to reduce the government's subsidy bill.
550	However, if the producer price rise, from 6.10 dlrs to 8.67  dlrs per 90-kg bag, is not accompanied by a retail price  increase, the government will have to spend more on subsidies,  a practice discouraged by the IMF.
551	There is no way out but to raise the subsidy levels of  meal.
552	It the government would have to choose between the  demands of the IMF and those of the people, a Ministry of  Agriculture economist said.  
553	It said completion is expected to take place April 10.  
554	The 0.50 cent a gallon price reduction brings Sun's heating  oil contract barge price to 50 cts a gallon, the company said.  
555	They said sunflower, maize and sorghum production estimates  had been reduced despite some later warm, dry weather, which  has allowed a return to harvesting in some areas.
556	However, as showers fell intermittently after last weekend,  producers feared another spell of prolonged and intense rain  could cause more damage to crops already badly hit this season.
557	Rains in the middle of last week reached an average of 27  millimetres in parts of Buenos Aires province, 83 mm in  Cordoba, 41 in Santa Fe, 50 in Entre Rios and Misiones, 95 in  Corrientes, eight in Chaco and 35 in Formosa.
558	There was no rainfall in the same period in La Pampa.
559	Producers feared continued damp conditions could produce  rotting and lead to still lower yield estimates for all the  crops, including soybean.
560	However, as the lands began drying later in the week  harvesting advanced considerably, reaching between 36 and 40  pct of the area sown in the case of sunflower.
561	Deterioration of the sunflower crop evident in harvested  material in Cordoba, La Pampa and Buenos Aires forced yield  estimates per hectare to be adjusted down again.
562	The season's sunflowerseed production is now forecast at  2.1 mln to 2.3 mln tonnes, against 2.2 mln to 2.4 mln forecast  last week and down 43.9 to 48.8 pct on the 1985/86 record of  4.1 mln.
563	Area sown to sunflowers was two to 2.2 mln hectares, 29.9  to 36.3 pct below the record 3.14 mln hectares last season.
564	Maize harvesting has also reached 36 to 40 pct of the area  sown.
565	It is near completion in Cordoba and Santa Fe and will  begin in La Pampa and southern Buenos Aires later in April.
566	Production estimates for maize were down from last week at  9.5 mln to 9.8 mln tonnes, against 9.6 mln to 9.9 mln estimated  previously.
567	This is 22.2 to 23.4 pct below the 12.4 mln to 12.6 mln  tonnes estimated by private sources for the 1985/86 crop and  21.9 to 25.8 pct down on the official figure of 12.8 mln  tonnes.
568	Maize was sown on 3.58 mln to 3.78 mln hectares, two to  seven pct down on last season's 3.85 mln.
569	Sorghum was harvested on 23 to 25 pct of the area sown in  Cordoba, Santa Fe and Chaco.
570	Harvest will start in La Pampa and  Buenos Aires in mid-April.
571	The total area sown was 1.23 mln to 1.30 mln hectares, 10.3  to 15.2 pct down on the 1.45 mln sown last season.
572	The new forecast for the sorghum crop is 2.9 mln to 3.2 mln  tonnes compared with three mln to 3.3 mln forecast last week,  and is 23.8 to 29.3 pct down on last season's 4.1 mln to 4.2  mln tonne crop.
573	The soybean crop for this season was not adjusted,  remaining at a record 7.5 mln to 7.7 mln tonnes, up 4.2 to 5.5  pct on the 7.2 mln to 7.3 mln estimated by private sources for  1985/86 and 5.6 to 8.5 pct higher than the official figure of  7.1 mln.
574	The area sown to soybeans this season was a record 3.7 mln  to 3.8 mln hectares, 10.8 to 13.8 pct up on the record 3.34 mln  sown in 1985/86.
575	The soybean crop is showing excessive moisture in some  areas and producers fear they may discover more damage.
576	Some  experimental harvesting was carried out in Santa Fe on areas  making up only about one pct of the total crop but details on  this were not available.
577	Preparation of the fields for the 1987/88 wheat crop, which  will be sown between May and August or September, has so far  not been as intense as in previous years.  
578	The figure for male jobless rose by 2,000 in the month to  436,500 compared with 470,700 a year earlier.
579	The figure for  women was 256,500 at end-March against 256,100 a month earlier  and 259,400 at end-March 1986.
580	On an unadjusted basis total unemployment fell by 16,500 in  the month to end-March to 692,200.
581	In March 1986 the figure was  725,000.
582	A ministry spokesman said the unadjusted figures showed a  smaller than usual seasonal decrease for the time of year,  because of particularly cold weather delaying work in the  building industry.
583	He said this explained the increase in the  adjusted statistics.
584	Total vacancies available rose by 1,900 to 26,300 at  end-March.
585	A year earlier the figure was 28,763.  
586	Officials seen arriving by Reuter correspondents included  West German Finance Minister Gerhard Stoltenberg and Bundesbank  President Karl Otto Poehl, French Finance Minister Edouard  Balladur and his central banker Jacques de Larosiere.
587	Also seen arriving were Japanese Finance Minister Kiichi  Miyazawa and Japan's central bank governor Satoshi Sumita and  British Chancellor of the Exchequer and central bank governor  Robin Leigh Pemberton.
588	There was no immediate sign of Italian or Canadian  officials.
589	Monetary sources have said a fully blown meeting of  the Group of Seven is expected to begin around 3 p.m. local  time 1900 gmt and last at least until 6 p.m. 2200 gmt, when  a communique is expected to be issued.
590	Italian sources said Italian acting Finance Minister  Giovanni Goria met Treasury Secretary James Baker last night.
591	At those talks Baker apparently convinced Goria, who  declined to attend the February meeting of the Group of Seven  in Paris, that Italy would participate fully in any meaningful  decisions.  
592	Economists expect the Fed to execute 2.0-2.5 billion dlrs  of customer repos to offset pressures from the end of the  two-week bank reserve maintenance period today.
593	Some also look  for a permanent reserve injection to offset seasonal pressures  via an outright purchase of bills or coupons this afternoon.
594	The Federal funds rate opened at 6-3/8 pct and remained at  that level, up from yesterday's 6.17 pct average.  
595	The purchase price was not disclosed, Reader's Digest said.
596	It said it purchased an 80 pct stake in Source in 1980 and  earned an unspecified profit on 14 mln dlrs in revenues in  1986.  
597	The bank said the initial distribution would take the form  of a stock dividend of cumulative redeemable retractable class  A series two preferred shares entitling holders to monthly  floating rate dividends at 72 pct of prime and to 12.75 dlrs a  share on retraction.
598	Continental said the initial payout was subject to Canadian  government approval.
599	The bank reiterated that total distributions to common  shareholders would range from 16.50 dlrs a share to 17.25 dlrs  including the initial stock dividend and a final distribution  in late 1988 or early 1989.
600	The payout of existing preferred shareholders will be  completed just before next month's initial distribution to  common shareholders, Continental added.  
601	Translated from Philippine pesos at 20.3489 pesos to dollar  vs 18.5571 in quarter and 20.2315 vs 18.2743 in year.  
602	The proposed transaction is subject to completion of a due  diligence investigation, including a review by Bristol-Myers of  a patent infringement suit served on Sci-Med by Advanced  Cardiovascular Systems Inc on March 31, 1987.
603	Bristol-Myers has the right to call off the agreement under  certain circumstances, it said.
604	Sci-Med said it continues to believe the patent suit is  without merit.  
605	Industrial Valley has assets of about 37.6 mln dlrs and was  acquired last year along with IVB Financial Corp.  
606	PETROCHEMICAL INDUSTRY  Cheap oil feedstocks, the weakened U.S.  dollar and a plant utilization rate approaching 90 pct will  propel the streamlined U.S. petrochemical industry to record  profits this year, with growth expected through at least 1990,  major company executives predicted.
607	This bullish outlook for chemical manufacturing and an  industrywide move to shed unrelated businesses has prompted GAF  Corp ltGAF, privately-held Cain Chemical Inc, and other firms  to aggressively seek acquisitions of petrochemical plants.
608	Oil companies such as Ashland Oil Inc ltASH, the  Kentucky-based oil refiner and marketer, are also shopping for  money-making petrochemical businesses to buy.
609	I see us poised at the threshold of a golden period, said  Paul Oreffice, chairman of giant Dow Chemical Co ltDOW, adding,  There's no major plant capacity being added around the world  now.
610	The whole game is bringing out new products and improving  the old ones.
611	Analysts say the chemical industry's biggest customers,  automobile manufacturers and home builders that use a lot of  paints and plastics, are expected to buy quantities this year.
612	U.S. petrochemical plants are currently operating at about  90 pct capacity, reflecting tighter supply that could hike  product prices by 30 to 40 pct this year, said John Dosher,  managing director of Pace Consultants Inc of Houston.
613	Demand  for some products such as styrene could push profit margins up  by as much as 300 pct, he said.
614	Oreffice, speaking at a meeting of chemical engineers in  Houston, said Dow would easily top the 741 mln dlrs it earned  last year and predicted it would have the best year in its  history.
615	In 1985, when oil prices were still above 25 dlrs a barrel  and chemical exports were adversely affected by the strong U.S.  dollar, Dow had profits of 58 mln dlrs.
616	I believe the entire  chemical industry is headed for a record year or close to it,  Oreffice said.
617	GAF chairman Samuel Heyman estimated that the U.S. chemical  industry would report a 20 pct gain in profits during 1987.
618	Last year, the domestic industry earned a total of 13 billion  dlrs, a 54 pct leap from 1985.
619	The turn in the fortunes of the once-sickly chemical  industry has been brought about by a combination of luck and  planning, said Pace's John Dosher.
620	Dosher said last year's fall in oil prices made feedstocks  dramatically cheaper and at the same time the American dollar  was weakening against foreign currencies.
621	That helped boost  U.S. chemical exports.
622	Also helping to bring supply and demand into balance has  been the gradual market absorption of the extra chemical  manufacturing capacity created by Middle Eastern oil producers  in the early 1980s.
623	Finally, virtually all major U.S. chemical manufacturers  have embarked on an extensive corporate restructuring program  to mothball inefficient plants, trim the payroll and eliminate  unrelated businesses.
624	The restructuring touched off a flurry of  friendly and hostile takeover attempts.
625	GAF, which made an unsuccessful attempt in 1985 to acquire  Union Carbide Corp ltUK, recently offered three billion dlrs  for Borg Warner Corp ltBOR, a Chicago manufacturer of plastics  and chemicals.
626	Another industry powerhouse, W.R. Grace ltGRA   has divested its retailing, restaurant and fertilizer  businesses to raise cash for chemical acquisitions.
627	But some experts worry that the chemical industry may be  headed for trouble if companies continue turning their back on  the manufacturing of staple petrochemical commodities, such as  ethylene, in favor of more profitable specialty chemicals that  are custom-designed for a small group of buyers.
628	Companies like DuPont ltDD and Monsanto Co ltMTC spent the  past two or three years trying to get out of the commodity  chemical business in reaction to how badly the market had  deteriorated, Dosher said.
629	But I think they will eventually  kill the margins on the profitable chemicals in the niche  market.
630	Some top chemical executives share the concern.
631	The challenge for our industry is to keep from getting  carried away and repeating past mistakes, GAF's Heyman  cautioned.
632	The shift from commodity chemicals may be  ill-advised.
633	Specialty businesses do not stay special long.
634	Houston-based Cain Chemical, created this month by the  Sterling investment banking group, believes it can generate 700  mln dlrs in annual sales by bucking the industry trend.
635	Chairman Gordon Cain, who previously led a leveraged buyout  of Dupont's Conoco Inc's chemical business, has spent 1.1  billion dlrs since January to buy seven petrochemical plants  along the Texas Gulf Coast.
636	The plants produce only basic commodity petrochemicals that  are the building blocks of specialty products.
637	This kind of commodity chemical business will never be a  glamorous, high-margin business, Cain said, adding that demand  is expected to grow by about three pct annually.
638	Garo Armen, an analyst with Dean Witter Reynolds, said  chemical makers have also benefitted by increasing demand for  plastics as prices become more competitive with aluminum, wood  and steel products.
639	Armen estimated the upturn in the chemical  business could last as long as four or five years, provided the  U.S. economy continues its modest rate of growth.  
640	Net includes pretax gains on sale of businesses of nil vs  4,656,000 dlrs in quarter and 26.0 mln dlrs vs 4,656,000 dlrs  in year.
641	Net includes pretax losses on disposition of product line  of nil vs 3,150,000 dlrs in quarter and 3,300,000 dlrs vs  3,150,000 dlrs in year.
642	Quarter net includes tax credits of 102,000 dlrs vs 736,000  dlrs.
643	Net includes reversal of tax loss carryforwards of 259,000  dlrs vs 264,000 dlrs in quarter and tax loss carryforwards of  8,635,000 dlrs vs 579,000 dlrs in year.  
644	Company went public in August 1986.  
645	Payable May 11      Record April 24  
646	Earnings per share reflects two-for-one common stock  split on March 15.  
647	As far as I am concerned and the company is concerned, they  are rumors and we're not commenting on rumors, spokesman Michel  Dufour told Reuters in response to a query.
648	All the information that has been given out publicly is  that, yes, Dominion Textile is interested in making an  acquisition that bigprobably based on that people are  starting all sorts of rumors, he said.
649	Dufour said yes when asked whether the report was only a  rumor, but said the company was not prepared to comment  further.
650	Dominion Textile president and chairman Thomas Bell  was out of town and unavailable for comment.
651	Dominion Textile last year made an unsuccesful 104-mln-  U.S.-dlr bid for Avondale Mills and has maintained a 120-mln-  U.S.-dlr line of credit to be used for an American acquisition.
652	Dufour said the company has been negotiating with many  U.S. textile companies but would not say whether Burlington  Industries was one of them.
653	Burlington's stock rose sharply this morning on the report,  which said Dominion Textile had joined with U.S. investor Asher  Edelman to buy a stake in the company and to consider making a  takeover offer.
654	Dominion Textile, which reported operating profit of 11.1  mln Canadian dlrs last year on sales of 926.5 mln dlrs, has  repeatedly said it will concentrate on expanding into the U.S.
655	The company has said it plans to diversify into new product  and market areas in addition to expanding its textile  operations.  
656	The company said revenue gains in electronics, major  appliances and other lines were offset by decreases in energy  services and aircraft products.
657	Revenues in the quarter rose  1.4 pct to 1.75 billion dlrs, it said.
658	The company said backlog stood at 7.520 billion dlrs, down  from 7.912 billion dlrs a year earlier.
659	It said a five year  3.55 billion dlr U.S. defense contract was awarded shortly  after the close of the first quarter.  
660	1986 qtr includes pretax gain of five mln dlrs from  settlement of litigation and tax gain of 5.1 mln dlrs from  change in estimated effective tax rate.  
661	The sources said the depressed world market had been one of  the main topics discussed in a closed door meeting of the  11-member CPA which began on Monday.
662	They said producers agreed that cutting sales would aid the  buffer stock manager of a new international cocoa pact in his  effort to support prices.
663	Major cocoa producing and consuming nations agreed  operation rules for the buffer stock at a meeting in London  last month and the stock manager is expected to enter the  market soon.
664	Prices, under the weight of three successive cocoa  surpluses, recently fell to the level at which the manager has  to buy cocoa under stock rules.
665	The buffer stock aims to keep prices within a pre-set range  by buying when prices fall and selling when they rise.
666	The world's cocoa price at present is just not interesting,  commented one delegate representing a major CPA producer.
667	Another source said that with much of the 1986/87  October-September world cocoa crop sold, limiting sales in  the near term concerns essentially next year's harvest.
668	The sources noted, however, that the cocoa industry in  Brazil, the world's number two producer, is in private hands.
669	This means limiting sales is more difficult than in major West  African producers, where sales are made or authorized by  commodity marketing boards.
670	The CPA includes the world's top three producers, Ivory  Coast, Brazil and Ghana, and accounts for 80 pct of all output.
671	The meeting here is due to end tomorrow evening.  
672	Dealers said that Federal funds were trading at 6-3/8 pct  when the Fed began its temporary and direct supply of reserves  to the banking system.  
673	The agent said Honduras is seeking U.S. no.
674	2 or better  northern spring/DNS, with 14 pct protein minimum and 13 pct  moisture maximum, and U.S. no.
675	2 or better hard red winter,  with 12 pct protein minimum and 13 pct moisture maximum.
676	The agent said NS/DNS laydays include July 1-10 for  7,500-9,500 tonnes, Aug 1-10 for 8,000-10,000 tonnes, and Sept  15-25 for 12,500-14,500 tonnes.
677	HRW laydays include June 20-30 on 5,000-7,000 tonnes, July  15-25 for 6,500-8,500 tonnes, and September 15-25 for  7,000-9,000 tonnes.
678	Offers are due by 1550 hrs EDT, April 13, and will remain  valid until 1000 hrs EDT, April 14, the agent said.  
679	That decision, spurred by Brazil's suspension of interest  payments on February 20, reduced the quarter's net income by 20  mln dlrs to 226.4 mln dlrs, compared with 233.9 mln in the  first three months of 1986.
680	Morgan also reported a loss of 1.8 mln dlrs from securities  underwriting and trading, in contrast to a gain of 45.4 mln  dlrs in the year-earlier period.
681	In the fourth quarter of 1986, Morgan posted other trading  losses of 5.5 mln dlrs because of setbacks in the trading and  underwriting of Euromarket securities.
682	Conditions in some sectors of the Euromarket remained  difficult last quarter, with floating rate notes suffering  heavy price falls, but a spokeswoman was unable to say whether  Morgan's trading losses were restricted to the Euromarket.
683	On the positive side, Morgan reduced its provision for loan  losses to 35 mln dlrs from 70 mln a year earlier.
684	Foreign  exchange trading income rose to 82 mln dlrs from 72.6 mln and  trust income increased to 95.9 mln dlrs from 75.9 mln.
685	Morgan said other operating income, mainly fees and  commissions, rose to 102.2 mln dlrs from 88.4 mln, but net  investment securities gains dropped to 43.1 mln from 58.1 mln.
686	Net interest earnings were 490.4 mln dlrs in the first  quarter, down from 499.4 mln a year earlier, and net yield fell  to 2.79 pct from 3.20 pct.
687	If Brazil had not been placed on non-accrual, which means  that interest can be recorded as income only when payments are  actually received, net interest earnings would have been 525.9  mln dlrs and net yield 2.99 pct.
688	If Brazil does not resume  payments, 1987 net would be cut by 72 mln dlrs, Morgan added.
689	After the provision for loan losses, Morgan's allowance for  credit losses at the end of March totaled 953 mln dlrs compared  with 910 mln at end-1986 and 815 mln a year earlier.
690	It reported net recoveries of six mln dlrs after  charge-offs of eight mln, compared with net charge-offs of 49  mln dlrs after recoveries of three mln a year earlier.
691	Excluding Brazil, non-accruing loans at quarter's end were  583 mln dlrs, down from 633 mln at end-1986 and 684 mln a year  earlier.
692	Non-interest expenses rose to 371.1 mln dlrs from  303.5 mln dlrs, with more than half the increase related to  personnel costs, Morgan said.  
693	Ministry spokesman Leonardo Brito, speaking from Brasilia,  told Reuters he believed that about five mln tonnes of this  year's estimated crop of 65 mln tonnes would be lost.
694	He said part of this would be the normal loss inevitable in  harvesting, but that most of it would stem from storage  problems.
695	Brazil has a storage capacity of 66 mln tonnes,  theoretically sufficient for the crop.
696	But Brito said that the storage capacity was badly  distributed.
697	The states of Sao Paulo, Parana and Rio Grande do  Sul had between them 70 pct of the nation's capacity, but were  responsible for only 50 to 60 pct of production.
698	The biggest problems are concentrated in the Centre-West  growing regions, where rising production has outpaced storage  capacity.
699	Brito said the Centre-West, whose crops include soya and  maize, had between 30 and 40 pct of the nation's grains  production but only 20 pct of its storage space.
700	In addition to the poor distribution of storage units,  there is the problem that too much of the capacity is geared to  storing grain in sacks, while not enough is suitable for  storing loose grain, Brito said.
701	Finally, there is a shortage of lorries to transport the  crops.
702	The sheer scale of the task in transporting the record crop  has been evident from television reports, which have shown  enormous queues of lorries waiting outside granaries.  
703	The company said shareholders approved the move at the  annual meeting in Providence today when the company reported  that its first quarter earnings rose to 38.5 mln dlrs, or 73  cts a share, from 31.7 mln dlrs, or 60 cts a share, in the  first quarter 1986.
704	J. Terence Murray, chairman and president of Fleet  Financial, said, Fleet's mortgage banking activities in  particular continued to produce signficant income increases in  the first quarter.
705	Murray said Fleet's mortgage servicing portfolio reached  22.1 billion dlrs by March 31, including 1.8 billion dlrs  purchased in March.  
706	In the 1986 annual repoprt, he said lengthy negotiations  had brought agreement with the Tokyo and London Stock Exchanges  for fuller, but still not complete, access to market data  through Reuter services.
707	Many other markets maintain restrictions, he added.
708	Hogg said members of some markets appear to believe that  information restrictions protected their interests.
709	In other cases, exchanges seem to be limiting the  distribution of data in order to provide competitive advantage  to their own commercial information businesses.
710	He also noted that despite increasing liberalisation in the  telecommunications field, some countries continue to protect  their state monopolies at the expense of other economic  sectors.
711	Reuter dealing services remain excluded from such  countries.
712	As a result, banking communities serving entire  economies are put at a competitive disadvantage, he added.
713	Reuters increased its 1986 pre-tax profit by 39 pct from  the previous year to 130.1 mln stg on a 43 pct rise in revenues  to 620.9 mln stg.
714	Earnings per ordinary share were up 47 pct to 19.4p.
715	The  annual shareholder meeting will be held in London on April 29.  
716	Terms were not disclosed.
717	CCL also said it agreed to exchange present and future  technology with Envases.  
718	The price, quoted for the first time yesterday, was  introduced as the lack of tin quotes was causing problems for  some French companies, a spokesman for the non-ferrous metals  association said.
719	Today's price was set at 4,776 francs per 100 kilos and  Tuesday's at 4,790.
720	The International Chamber of Commerce stopped publishing a  tin price after the London Metal Exchange LME stopped tin  trading on October 24, 1985.
721	The Association has tested the basis it uses to calculate a  French franc price over the last few months to ensure it was  reliable, the spokesman said.
722	The French franc price is pre-tax, for specified quality, a  minimum 99.9 pct purity, at a French port or border railway  station and a minimum delivery of 10 tonnes.
723	The French Federation of Non-Ferrous Metals groups various  metal associations including the Association of White Metals.  
724	After completion of the transaction, Tradevest would own 90  pct of the issued outstanding stock of Madeira.  
725	It said the split will be payable April 17 to shareholders  of record April 16.  
726	Agrimont SPA, the holding company for Montedison's  Agro-Industrial businesses, had sales of 810 billion lire and a  net profit of about 1.1 billion lire, after amortization costs  of 35 billion lire and a 13 billion lire reduction in the value  of inventory due to falling market prices, Montedison said.
727	Agrimont, still wholly owned by Montedison, is taking steps  to be traded on the Milan exchange, the company said.
728	The company said that 1986 was characterized by an unstable  fertlizer market due to the weak dollar and the decline of  international prices for products sold in Europe and the U.S  where Agrimont operates through its Conserv division.
729	In pesticides and in animal health care products Agrimont  maintained its previous level of revenues and market share in  1986, Montedison said.
730	Montedison said it named Ettore dell'Isola to the newly  created position of president of Agrimont.
731	Montedison also said it named Renato Picco, managing  director of ltEridania SPA and Gianfranco Ceroni, managing  director of ltItaliana Olii e Sifi, both of whom are members  of the the Ferruzzi Group's management board, to Argimont's  board of directors.
732	Ferruzzi owns about 40 pct of Montedison,  the company said.  
733	According to terms of the proposed transaction, each share  of Datron common stock, excluding those shares owned by the  four officers, will be bought for six dlrs a share, it said.
734	Datron's officers hold about 73 pct of the total 896,000  Datron common shares outstanding.
735	Upon completion of the proposed transaction, the officers  of Datron would own 100 pct of the company.
736	The merger is  subject to GGHF's receiving financing for the plan, Datron  said.
737	Shareholders of Datron will be asked to approve the plan at  their annual meeting to be held in June or July, and the merger  is expected to be completed by July 31, it said.  
738	The possible acquisition is subject to any applicable real  estate gains and transfer taxes, the joint statement said.
739	Trump and Interstate, which presently own about 40 pct of  Alexander's common stock, said they intend to keep the company  as a retailer if they succed in their acquisition.
740	There can be no assurances that the parties will reach any  agreement regarding an acquisition or what price might be  offered, the statement said.  
741	No official tender has been announced yet by Tunisia, they  said.
742	France has sold a total of 200,000 tonnes of soft wheat to  Tunisia since the begining of the current campaign which was  covered by COFACE export credits.
743	Of this amount, a total of  150,000 tonnes was exported by March 1, they said.  
744	Prior year earnings  restated to reflect recapitalization plan.  
745	Further details were not disclosed.  
746	Saunders Co of Canada Ltd and Les Editions HRW Ltd by  Harcourt Brace Jovanovich Canada Inc.
747	The government agency said, however, Harcourt Canada has  agreed to sell control of the firms to Canadian interests  within two years.
748	Harcourt Canada's U.S. parent, Harcourt Brace Jovanovich  Inc ltHBJ, indirectly acquired the Canadian book publishing  companies when it purchased Holt Rinehart and Winston from CBS  Inc ltCBS last October.             
749	The takeover spotlight fell today on Burlington, which rose  4-7/8 to 52-7/8 on speculation that investor Asher Edelman and  Dominion Textiles Inc of Canada bought an almost five pct  stake.
750	A published report said Edelman and Dominion jointly  acquired a stake in Burlington and were weighing a takeover  offer.
751	Edelman would not comment, and a spokesman for  Montreal-based Dominion called the report just rumors.
752	Burlington said it did not know if the report was true.
753	Wall Street professionals said they were not convinced of  the story or that Edelman and Dominion would be the victors if  Burlington actually came into play.
754	Arbitragers said past comments from Dominion, however,  added credence to the speculation.
755	Dominion has said that it  was looking for a takeover in the U.S.      Last year, Dominion unsuccessfully bid for Avondale Mills  and has maintained a 120 mln dlr line of credit to be used for  a U.S. acquisition.
756	A Dominion spokesman said Canada's largest textile producer  has been negotiating with many U.S. textile companies, but  would not say whether Burlington was among them.
757	There have been acquisitions in this area.
758	It's not  unusual that someone could be looking at Burlington after the  housecleaning they've done, said Eileen Gormley of Thomson  McKinnon.
759	Burlington sold its domestic operations, which made sheets  and other linens, to J.P. Stevens and Co Inc for 110 mln dlrs  last year.
760	It also has reorganized management, and focused its  operations on businesses that would be less affected by foreign  competition, Gormley said.
761	They've pulled back so as not to be a commodity marketer,  said Gormley.
762	She said in moving more heavily into industrial  fabrics, Burlington bought C.H.
763	Masland, which supplies carpets  and other fabric to the auto industry.
764	In the past, they just spent and never realized the return  on the outlays they did make, she said.
765	You look at their record over the year, and I think  they're poised to be more profitable than they had been in the  past, Gormley said.
766	She estimated 1987 earnings of 2.50 dlrs per share, up  from 2.01 dlrs per share.
767	Some analysts today recommended clients not buy Burlington  at its current levels.
768	Edward Johnson of Johnson Redbook said he recommends  selling.
769	He said he believes the stock is worth only about 50  dlrs on a takeover basis and about 46 dlrs on an earnings  basis.
770	Some arbitragers, however, said takeover values have been  placed on the company of 60 to 65 dlrs per share.
771	After Asher's Edelman recent history, a lot of people  don't find him very credible anymore, said one arbitrager.
772	Another, however, said Edelman succeeds in forcing  managements to take steps to enhance shareholder values even if  he doesn't win the target company.
773	Edelman was unsuccessful last year in offers for Lucky  Stores Inc and Fruehauf Corp.
774	He did succeed in buying  Ponderosa Inc.
775	The stocks of other textile makers rose along with  Burlington.
776	J.P. Stevens ltSTN climbed 5/8 to 44-7/8, and Fieldcrest  Cannon Inc ltFLD, the result of a merger of Fieldcrest and  Cannon, rose 1-1/8 to 39-3/4.
777	West Point-Pepperell Inc ltWPM  rose 1-7/8 to 67-1/8.  
778	Makoto Kuroda, vice minister of Japan's Ministry of  International Trade and Industry MITI, is to hold two days of  meetings with the Deputy U.S. Trade Representative, Michael  Smith, and the Under Secretary of Commerce, Bruce Smart.
779	The new tariffs, to go into effect on April 17, are in  retaliation for Japan's failure to adhere to an agreement to  end dumping semiconductors in world markets at below cost and  to open its home market to U.S. semiconductor shipments.
780	They are to be imposed on goods which use semiconductors,  including television and audio equipment and computers.
781	Both U.S. and Japanese officials have said there was little  likelihood the talks would do anything to avert the 100 pct  duties on 300 mln dlrs worth of Japanese shipments.
782	President Reagan announced the planned tariffs on March 27  after he said that close monitoring of the July 1986  U.S.-Japanese semiconductor pact convinced U.S. officials that  Japan was not honoring the agreement.
783	In making the annoucement, Reagan said I am committed to  the full enforcement of our trade agreements designed to  provide American industry with free and fair trade.
784	Trade analysts said his move was aimed as much at Japan's  semiconductor trade practices, which are said to have injured  the U.S. semiconductor industry, as Congress, which has  complained about presidential timidity on trade issues.
785	Congressional Democrats have pledged to enact aggressive  trade laws to counter what they contend has been Reagan's  inaction to redress the growing U.S. trade deficit, which last  year reached 169.8 billion dlrs.
786	About one-third of the deficit was with Japan.
787	Reagan said there were recent signs Japan was beginning to  adhere to the pact and that was why he was not terminating it.
788	Kuroda said on leaving Tokyo today he had no new proposals  but did have an explanation of the semiconductor situation.
789	He told the daily newspaper Ashai Shimbun that Reagan's  decision was based on inaccurate data and an exaggerated sense  of MITI's power to control Japanese traders.
790	The United States has excessive expectations., he said.
791	To  stabilize supply-demand relations which have been disrupted by  excess inventories since 1985 will take some time.
792	He also said that U.S. firms had not been aggressive enough  in trying to sell in the Japanese market.  
793	The company did not disclose any prices.
794	The report describes the facilities in Darlington County,  S.C., and Fayetteville, N.C., the company said.
795	The report also  decribes related manufacturing, marketing, administrative and  technical resources that could be made avialable to a buyer.
796	Hoechst Celanese was formed Feb 27 by the merger of  Celanese Corp and American Hoechst Corp.
797	The merger took place  after an agreement was reached with the Federal Trade  Commission that certain domestic polyester textile fiber assets  of the combined companies would be divested, it said.
798	Hoechst Celanese said it has the option of divesting either  the South Carolina facilities of the former American Hoechst or  a package of polyester textile fiber facilities of the former  Celanese.  
799	A GEC spokesman said that it is company policy not to  comment on acquisition rumours.
800	Stock Exchange traders said the rumour helped GEC's share  price to rise 5p, to a final 206p from yesterday's closing  price of 201p.  
801	The trucking company attributed the loss to the continued  rate of discounted in its primary markets, flat revenues and  increased costs, including uninsured claims expense resulting  from adverse weather conditions during the last three months.
802	It said results outside the Northeast were strong, and it  expects to show improved results for the rest of the year.  
803	All indications are they will take effect, he said.
804	I would say Japan is applying the full court press 
805	They  certainly are putting both feet forward in terms of explaining  their position, Fitzwater told reporters.
806	He noted high level meetings on the trade dispute are  underway here but said, I don't think there's anything I can  report and I don't believe there's been any official movement.
807	The deposit for spread contracts will be similarly cut, to  150 stg for a one 10 tonne lot from 200 previously, he said.
808	The ICCH had been looking at cocoa market fluctuations over  a period of weeks, he said, adding the market's basic stability  had warranted a cut in deposit rates.
809	The decision to cut deposits was taken by the ICCH after  consultation with the London Cocoa Terminal Market, the  spokesman said.
810	The cuts were likely to attract more business to the  market, he said.  
811	Net includes pretax real estate disposition loss 920,000  dlrs vs gain 52,000 dlrs in quarter and loss 863,000 dlrs vs  gain 117,000 dlrs in half.
812	Prior year net includes tax credits of 2,132,000 dlrs in  quarter and 3,039,000 dlres in half.
813	Current half net includes 2,051,000 dlr pretax gain  2,051,000 dlrs from change in accounting.  
814	Earnings per share  reflects a 50 pct stock dividend in the form of a class B  common stock distribution on June 30, 1986.  
815	Heineken last month reported a 1986 net profit of 285 mln  guilders, after 265 mln in 1985.
816	Chairman Freddie Heineken said the company, Europe's  leading beer producer with six pct of market share in 1986,  said sales increased by 6.3 pct to 42.1 mln hectoliters.
817	The volume increase was due mainly to a rise in the U.S.,  Where the brand Amstel Lite saw great demand, and in Europe,  where sales accounted for 25.5 pct of the total.
818	Turnover, despite losses in guilder terms due to weaker  foreign currencies, rose by 4.4 pct, to 6.7 billion guilders.
819	Further consolidation of foreign companies, including the  increase of its stake in leading Spanish brewery ltEl Aguila  S.A. to 51.2 pct, new ventures and modernization, particularly  in French and Spanish interests, eroded profit margins.
820	The  company still planned to invest 700 mln guilders this year in  restructuring and marketing, Heineken said.
821	Heineken's Spanish activities should start yielding profit  next year, Heineken said, adding that its French operations had  already turned to profit after vast rationalization last year.
822	Vice Chairman Gerard van Schaik said the decision by the  European Court of Justice in Luxembourg to allow foreign beer  into the closed West German market -- Europe's biggest beer  market -- offered interesting possibilities for Heineken.
823	We  have the beer, but distribution and sales is the important  point, van Schaik said, adding that since the ruling Heineken  had been inundated by German traders seeking joint ventures.
824	The question is not if we want to penetrate the German  market, but how we are to do it, van Schaik said, adding that  while the widely traveled Germans seemed to be developing a  taste for foreign beer, the internal structure was very  regionalized.
825	Heineken board member Hans Coebergh, responsible for  African operations, said he saw Africa as one of the most  important beer growth markets in the long term.
826	He said the company, present in Africa since 1932 and with  majority stakes in six breweries and interests in 25, was  hampered by the lack of hard currencies there.
827	Africa, where beer consumption averages only nine liters  per head per year and sales are limited by import restrictions  and currency risks, nonetheless accounted for 6.5 pct of total  1986 sales.
828	On-site production is rendered expensive by the high price  of imports of essential ingredients.
829	But Heineken scientists  have been looking at other possibilities.
830	To balance the costs of imported malt, Heinken launched on  the Nigerian market a new beer made of 50 pct sorghum, which  had sold successfully, Coebergh said.
831	Heineken is urging farmers to grow the traditional raw  materials, but Coebergh noted that banana and palm beer were  popular in Rwanda .
832	This is a possibility, but we could not  possibly achieve the Heineken flavor, Coebergh said.
833	Chairman Heineken said the company's seven year efforts to  penetrate the Soviet market had finally resulted this week in a  contract that relaxed some of the restrictions they faced.
834	But again, a lack of hard currencies limited Heineken's  market potential.
835	Heineken now has seven bars in Moscow that  are enjoying good sales, but the bars only accept western  money.  
836	Samuel Alberto Yohai, director of the Foreign Trade  Institute, INCOMEX, said private businessmen should not become  what he called mental hostages to coffee, traditionally  Colombia's major export.
837	The National Planning Department forecast that in 1987  coffee will account for only one-third of total exports, or  about 1.5 billion dlrs, with oil and energy products making up  another third and non-traditional exports the remainder.  
838	A Foreign Ministry statement said the latest crisis between  the two NATO members stemmed from the continental shelf dispute  and an agreement on this issue would effect the security,  economy and other rights of both countries.
839	As the issue is basicly political, a solution can only be  found by bilateral negotiations, the statement said.
840	Greece has  repeatedly said the issue was legal and could be solved at the  International Court of Justice.
841	The two countries approached armed confrontation last month  after Greece announced it planned oil exploration work in the  Aegean and Turkey said it would also search for oil.
842	A face-off was averted when Turkey confined its research to  territorrial waters.
843	The latest crises created an historic  opportunity to solve the disputes between the two countries,  the Foreign Ministry statement said.
844	Turkey's ambassador in Athens, Nazmi Akiman, was due to  meet Prime Minister Andreas Papandreou today for the Greek  reply to a message sent last week by Turkish Prime Minister  Turgut Ozal.
845	The contents of the message were not disclosed.  
846	It gave no details.  
847	Aart de Zeeuw, chairman of the General Agreement on Tariffs  and Trade's negotiating group on agriculture, met this morning  with members of the House Agriculture Committee.
848	Committee sources said De Zeeuw expressed concern over  protectionism and high farm price supports.
849	House lawmakers  noted that in 1985 the United States took steps to reduce loan  rates, committee staff said.
850	Members told him De Zeeuw that we lowered our U.S. loan  rates and can't eliminate subsidies unilaterally, one source  said.
851	De Zeeuw was told of the U.S. lawmakers' frustration with  Japan's restrictive rice import policy, and members defended  the U.S. dairy policy, which aims to cut surplus production by  subsidizing producers to trim herds, sources said.
852	Later today De Zeeuw will meet the Senate Agriculture  members and Undersecretary of State Affairs Allen Wallis.
853	Tomorrow, De Zeeuw is to meet the House Ways and Means  Trade Subcommittee and the Senate Finance Committee, before  visiting Agriculture Secretary Richard Lyng.
854	De Zeeuw goes to Canada later this week.
855	His trip to North  America is part of his attempt to meet farm policy leaders in  the key GATT member states.
856	The negotiating group on agriculture held its first meeting  in February and is expected to meet again in May.  
857	According to terms of the proposed transaction, each share  of Datron common stock, excluding those shares owned by the  four officers, will be converted into six dlrs a share, it  said.
858	Datron's officers hold about 73 pct of the total 896,000  Datron common shares outstanding, it said.
859	corrects company name, GGHF, in first paragraph  
860	He said in response to a reporter's question after the  bank's annual meeting that money market rates could decline  further but, I don't think the Fed is going to encourage that  as long as the exchange markets are as volatile as they are.
861	On the other hand, he said that, barring a collapse of the  dollar, he did not see rates going much higher.
862	He said that Morgan's recent rise in its prime lending rate  was purely a reflection of an increase in a whole spectrum of  rates.
863	Preston reiterated earlier company forecasts that the U.S.  economy should show roughly 2.5 to three pct real growth this  year.
864	He also said that as a consequence of the dollar's decline  and oil price rises, inflation would rise moderately to a 3.5  to four pct rate in 1987.  
865	At an analysts meeting here the company said that for the  year ending April 30, 1987 it will earn about 73 mln dlrs, or  about 5.15-5.35 dlrs a share on sales of about 500 mln dlrs.
866	In the year ago period, the company earned 53.4 mln dlrs,  or 3.65 dlrs a share, on sales of 402.8 mln dlrs.
867	Winston Wallin, Medtronic chairman, said the company will  improve market share in fiscal 1988 in cardiac pacemakers and  expand its cardiovascular therapeutic product line.
868	Wallin cautioned analysts not to quickly change their per  share estimates for the company as he said Medtronic will have  heavy sales and marketing expenses in fiscal 1988.
869	He said the company intends to reinvest its earnings in its  businesses and not in its dividends.
870	Shareholders are better  off if we grow the business rather than reinvest in dividends  or share repurchases, he said.
871	Wallin said he sees Medtronic's share of the total  worldwide pacemaker market increasing to 42 pct in fiscal 1988,  from 40 pct in fiscal 1987.
872	He said the worldwide market for cardiovascualr therapeutic  products, which includes pacemakers, valves, catheters and  lasers, will be valued at about 2.5 billion dlrs 1990 and will  double that by 1995.
873	Wallin said, Our objective is to get a hold of new  products and start building market share if we have to beg,  borrow or steal to get into new markets.
874	In the past, Medtronic's pacemakers have been plagued with  a number of problems leading to product recalls.
875	Regulators  also have criticized the industry, citing quality problems and  a needless overprescription of pacemakers.
876	We have no knowledge of any major problems in our  pacemakers or leads, Wallin said.
877	We intend to re-establish  our company as the quality leader in the industry.
878	Glen Nelson, executive vice president for Medtronics, said  the company intends to diversify internally and through  acquisitions of companies in areas of Medtronic's expertise,  such as drug delivery systems.
879	Wallin said the 15 pct earnings growth for fiscal 1988 does  not include dilutions from acquisitions.
880	We hope to have some  safety provisions so that we won't have any major dilutions  from an acquisition.
881	Wallin also said the company will have virtual exclusivity  in rate responsive pacemakers for all of fiscal 1988.
882	The company markets Activitrax, the first single chamber  pacemaker that varies heartrate in response to physical  activity.
883	Siemens AG, a West German company, is also developing a  rate responsive pacemaker.  
884	Spie Batignolles, a subsidiary of Schneider SA ltSCHN.PA,  said in a statement it was negotiating to invest 20 mln dlrs in  Comstock in the form of bonds convertible into shares.
885	Spie Batignolles has held a 20 pct stake in Comstock since  February 1986.
886	A spokesman said if Spie Batignolles converted  all the new bonds, it could open the way for the French company  to take control of Comstock but he gave no other details.  
887	A number of producer governments in particular have not  decided their final position on whether the ITA should be  extended for up to two years or wound down after it expires on  June 30, according to delegate sources.
888	Earlier today European Community EC members decided to  back an extension, with the exception of Britain, which  undertook to communicate its decision to its EC partners later.
889	Delegates said it could be Friday before all the member  countries declare their positions on the possible extension.
890	Today's full Council session started shortly before 1500 GMT  after the scheduled 1330 start was delayed by an EC  coordination meeting.
891	The council reconvenes at 0930 GMT tomorrow, although  delegates said the morning is likely to be taken up with minor  technical matters and the main issue will probably not be  discussed before the afternoon session.  
892	He told a Pakistan Central Cotton Committee meeting here  the present was the third consecutive poroduction  record-setting year and said the momentum would be accelerated  in the future, the official APP news agency reported.
893	Baluch said indications were that Pakistan is to attain a  record cotton production of 7.6 mln bales, compared to the  1985/86 crop of 7.2 mln bales which also represented the target  earlier set by authorities for this year's production.  
894	Presidential spokesman Marlin Fitzwater made the remark one  day before U.S. And Japanese officials are to meet under the  emergency provisions of a July 1986 semiconductor pact to  discuss trade and the punitive tariffs.
895	Fitzwater said I would say Japan is applying the  full-court pressThey certainly are putting both feet forward  in terms of explaining their position.
896	But he added that all  indications are they the tariffs will take effect.
897	He said the charge results from pre-operating expenses of  its recently-opened Atlantic City, N.J., Showboat Hotel, Casino  and Bowling Center and will cause a loss for the third quarter  and probably for all of fiscal 1987 as well.
898	But Houssels said Showboat's earnings for fiscal 1988  should show a sharp increase from fiscal 1986 levels due to the  contribution of the new Atlantic City facility.
899	Showboat earned 1,753,000 dlrs in last year's third  quarter.
900	For all of fiscal 1986 it earned 5,769,000 dlrs.
901	Houssels said Showboat since the opening of the Atlantic  City hotel/casino, Showboat has had to start charging interest  expenses connected with debt it sold to finance the facility  directly against income rather than capitalizing the interest  as it had been able to do previously.
902	Showboat opened the hotel during its third quarter and  gaming began last Thursday on a regular basis after test gaming  was completed earlier in the week.  
903	Despite the anticipated reduction to quarterly earnings,  Security Pacific said it still expects to report first quarter  earnings higher than the 88 mln dlrs, or 1.11 dlrs per share  reported for the first quarter of 1986.
904	The bank holding company said the action affects 401 mln  dlrs of loans to Brazil and 73 mln of loans to Ecuador.
905	Brazil suspended interest payments on its 68 billion dlrs  of medium- and long-term debt on February 20.
906	Ecuador, which has foreign debt of roughly eight billion  dlrs, has not paid any interest to foreign banks since  February.
907	In March Ecuador said it would suspend interest payments  for the rest of the year because of an earthquake which halted  the export of oil, which accounts for about 75 pct the  country's export revenues.
908	In its announcement, Security Pacific said it will record  interest income only as it is received in cash.
909	The company also said it believes that Brazil will reach an  agreement with its banks and that interest payments will resume  later in 1987.
910	The Brazilian negotiations resume on Friday in New York  when Central Bank Governor Francisco Gros is expected to ask  banks for a 90-day roll-over of some 9.5 billion dlrs of term  debt that matures on April 15.  
911	A High Command communique said Iraqi troops had won a  significant victory and were continuing to advance.
912	Iraq said it had foiled a three-pronged thrust some 10 km  six miles from Basra, but admitted the Iranians had occupied  ground held by the Mohammed al-Qassem unit, one of three  divisions attacked.
913	The communique said Iranian Revolutionary Guards were under  assault from warplanes, helicopter gunships, heavy artillery  and tanks.
914	Our forces are continuing their advance until they purge  the last foothold occupied by the Iranians, it said.
915	Iran said its troops had killed or wounded more than 4,000  Iraqis and were stabilising their new positions.
916	The Baghdad communique said Iraqi planes also destroyed oil  installations at Iran's southwestern Ahvaz field during a raid  today.
917	It denied an Iranian report that an Iraqi jet was shot  down.
918	Iraq also reported a naval battle at the northern tip of  the Gulf.
919	Iraqi naval units and forces defending an offshore  terminal sank six Iranian out of 28 Iranian boats attempting to  attack an offshore terminal, the communique said.  
920	West German Finance Minister Gerhard Stoltenberg and  British Chancellor of the Exchequer Nigel Lawson declined to  comment on the meeting as they emerged from the U.S. Treasury.
921	A European monetary official said the ministers of the  Group of Seven countries would gather at about three p.m. local  1900 GMT at the Treasury.  
922	Donald Houston, administrator of USDA's Food Safety and  Inspection Service, FSIS, told a House Agriculture subcommittee  USDA was developing a proposed change in regulations that would  put an end to the current practice of permitting foreign meat  products to be unloaded at one port and inspected at another  port.
923	Houston said the requirement would be phased in over  several years to avoid disruptions and economic hardship.
924	In its newly released annual report, Union Texas said it  replaced about 71 pct of its production of 56 mln barrels of  oil equivalent last year after taking into account the sale of  27 mln barrels of U.S. reserves.
925	Union Texas, the nation's largest independent oil and gas  producer based on revenues, is a privately-held company owned  by Kohlberg Kravis Roberts and Co and Allied-Signal Inc ltALD.
926	The Houston-based company said it lost 57.5 mln dlrs on  1.26 billion dlrs in sales last year, compared to profits of  165 mln dlrs on 2.04 billion dlrs in sales in 1985.
927	Union Texas said it received an average of 13.35 dlrs per  barrel for its international oil production and 2.99 dlrs per  mcf for its foreign natural gas sales.
928	The majority of the  company's total energy production is in the United Kingdom,  Indonesia and Pakistan.
929	In the United States, Union Texas said it completed  evaluation work on its oil find in Alaska's Colville Delta  area.
930	Although significant oil reserves were confirmed,  development of this discovery will not be economical without  substantially higher prices, the company said.
931	Union Texas said it planned to spend about 42 mln dlrs over  the next two years to develop its Eugene Island Block 371 in  the Gulf of Mexico.
932	In 1987, the company said it budgeted 178 mln dlrs for  capital spending, less than half of the amount spent in 1985  and down from 199 mln dlrs budgeted last year.
933	Union Texas also  said it would seek acquisitions of oil and gas properties as  well as petrochemical-related businesses.  
934	Obviously, we have a lot of movement in our stock, and we  need to get a clarification out, the spokesman said, adding  that there was a 50-50 chance a statement would be released  today.
935	The pilots earlier this week offered to buy the airline for  2.3 billion dlrs, and assume 2.2 billion dlrs of existing debt.
936	Takeover speculation has driven UAL's stock for several  weeks.
937	UAL last month said New York Real estate developer  Donald Trump held a position in its stock, and that he also  held discussions with its chairman.
938	The developer indicated in those talks that he took the  position as an investment, but he revealed no other plans.
939	Today, rumors circulated that Coniston Partners were buying  UAL stock.
940	UAL jumped five to 70-3/4 on volume of more than 3.2  mln shares.
941	United has got to consider this proposal.
942	I think the  pilot's proposal is realistic.
943	I don't exptect them to take it,  but it could put some interesting options in front of UAL  management, said Timothy Pettee, Bear Stearns and co analyst.
944	Analysts have said UAL made itself vulnerable to attack  when it diversified away from its core airline.
945	It added Hertz  rental cars, Westin and Hilton International hotels in a  strategy to become a travel service company.
946	The strategy left its stock in a slump and its pilots union  concerned that the company was not focussing enough attention  on its airline.
947	UAL has stood firm on its strategy from beginning to the end.
948	It is emphasizing its  new focus by changing its name to Allegis, as of May one.
949	But takeover speculation has escalated, and Wall Street has  been busy calculating break up values well in excess of 100  dlrs per share.
950	Traders today described the buying in UAL as  widespread, indicative to them that big institutions believe  the stock is in play.
951	Market sources have said that although Trump attracted  attention to the stock, the pilots proposal acted as a  catalyst, kicking off a new round of speculation and perhaps  throwing the company into the hands of another buyer.
952	The first domino is you have an investor with a  considerable stake.
953	the second domino is the union.
954	That type  of attitude has been a precursor to airline deals in the past,  said Pettee.
955	What's interesting is the values are there.
956	There's  something for everybody, he said.  
957	Meinert reiterated an earlier comment that earnings for the  remainder of the year must double the 1986 level to meet that  goal.
958	In fiscal 1986, ended November 30, 1986, Hartmarx  reported earnings of 24.8 mln dlrs, or 1.20 dlrs a share, down  from the prior year's 42.7 mln dlrs, or 2.25 dlrs a share.
959	The 110-year-old apparel manufacturer recently posted  first-quarter earnings of 54 cts a share, up from 40 cts a year  ago.
960	Meinert told shareholders Hartmarx has no plans to sell any  of its divisions.
961	He added, We have the financial capacity to  take advantage of acquisitions.
962	In 1987, Meinert said the company will open five new and 10  redesigned Kuppenheimer direct-to-consumer stores in Atlanta,  Detroit, St. Louis, Washington, D.C. and San Francisco.
963	He said the company's women's apparel continues to grow,  and Hartmarx has on the drawing board a Briar concept store  which will feature ties, shirts and some tailored clothing.  
964	The agency, received in London, said the accord was reached  between Iranian Oil Minister Gholamreza Aqazadeh and a visiting  Ghanaian delegation headed by Foreign Minister Obed Asamoah.
965	IRNA said that under the agreement, Iran will also provide  technical and scientific assistance in manpower training and  oil exploitation, production and refining.  
966	In my view, this would not only be a logical, but also a  most desireable development, he said in a speech prepared for  delivery to an economic forum at Chapman College in Orange,  Calif.      A text was released in Washington.
967	He said the effect of lower inflation and financial  deregulation on monetary aggregates was now largely finished.
968	Consequently, monetary growth may return to more modest  levels, Heller said.
969	He noted growth in the money supply slowed  after mid-January.
970	I would not be surprised at all if the monetary aggregates  were to grow rather slowly during the balance of the year as  well, he added.
971	Heller said there was a danger of renewed price inflation.
972	The pricing behavior of American producers in response to  price increases of their foreign competitors will be crucial  for our economic future, he said.
973	Widespread domestic price rises in response to rising  import prices would generalize the inflationary forces  emanating from the foreign trade sector and might not gain more  market share for U.S. producers.
974	A return to the stagflation of the late 1970s may well be  the result of such a behavior pattern, Heller warned.
975	He said we at the Federal Reserve will have to be  disciplined in our conduct of monetary policy.
976	Heller said said the government should also exercise fiscal  discipline and cut the deficit by spending restraint rather  than new taxes.
977	The imposition of new taxes would tend to rekindle  inflation and certainly would not make us more competitive in  international markets, Heller said.
978	He said the U.S. economy should expand by nearly three pct  during 1987, aided by higher exports to Europe and Canada.
979	A free trade agreement currently being negotiated with  Canada would be exceedingly helpful in allowing American  producers to compete more effectively in that country, Heller  said.  
980	But it said a 41.5 mln dlr non-cash writeoff of oil and gas  properties taken in the first quarter resulted in a net loss of  43.9 mln dlrs, or 7.21 dlrs per share.
981	Energy Development Partners, is a limited partnership which  began operating in September 1985.
982	Full year revenues totaled 23.7 mln dlrs, the company also  said.
983	It said proved reserves at December 31 totaled 4.8 mln  barrels of oil and 88 mln cubic feet of natural gas.  
984	Canadian Finance Minister Michael Wilson said on entering  the meeting the ministers would review the Paris agreement.
985	Asked if he was satisfied with West German and Japanese  stimulus, Wilson replied, They could do a little more.
986	French Finance Minister Edouard Balladur, meanwhile,  confirmed there would be a communique at the end of the  meeting.
987	Finance ministers and central bankers of Britain, FRance,  Canada and West Germany were seen by Reuter correspondents  returning to a Treasury building.
988	Japanese officials and Bundesbank President Karl Otto Poehl  did not appear to have left the building at the end of earlier  Group of Five talks which broke up around 2 p.m. local time  1800 gmt.
989	There was no sign, however, of the Italian delegation whose  position was thrown into question this morning by the  resignation of the Christian Democratic wing of Italy's  Socialist-led government.
990	European monetary officials said later that the Italian  delegation was inside the building.
991	This meant that a full blown meeting of the Group of Seven  was in progress.  
992	The whole trend of inspection for the last 10 years has  been to corrupt and to degrade the system where today the  public is at constant risk to contaminated and adulterated  meat, Kenneth Blaylock, president of the American Federation of  Government Employees, told a House Agriculture subcommittee.
993	The American consumer has little reason to feel confident  about the safety of meat and poultry being offered to him  today, said Rodney Leonard, executive director of the Community  Nutrition Institute.
994	Company management is less concerned about the risk to  health than about raising plant output and company profits,  Leonard told a hearing of the House Agriculture Subcommittee on  Livestock, Dairy and Poultry.
995	Kenneth Morrison, staff associate at the Government  Accountability Project, said inspectors consistently disclose  violations of federal law, demonstrating a serious breakdown in  the entire inspection system.
996	Morrison told of chicken fat for flavoring being  contaminated by intestines dragging in a water trough used to  flush away the condemned product, fecal material, human spit,  chewing gum and paper towels used by plant employees to blow  their noses.
997	Donald Houston, administrator of the U.S. Agriculture  Department's Food Safety and Inspection Service, FSIS, defended  the government's program, calling it one of the most respected  public health programs in the world.
998	FSIS inspects an estimated 127 mln head of cattle and 4.5  billion chicken and turkeys every year.
999	Houston said inspection programs have kept pace with  change, but conceded that the danger of chemical residues in  the meat and poultry supply has increased.
1000	He also said that, although he was confident the bacterium  salmonella eventually could be eradicated, it would take time  and much money to contain the growing problem.