Mounting trade friction between the U.S. And Japan has raised fears among many of Asia's exporting nations that the row could inflict far-reaching economic damage, businessmen and officials said. 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. 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. 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. 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. "We wouldn't be able to do business," said a spokesman for leading Japanese electronics firm Matsushita Electric Industrial Co Ltd . "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 . In Taiwan, businessmen and officials are also worried. "We are aware of the seriousness of the U.S. Threat against Japan because it serves as a warning to us," said a senior Taiwanese trade official who asked not to be named. Taiwan had a trade trade surplus of 15.6 billion dlrs last year, 95 pct of it with the U.S. The surplus helped swell Taiwan's foreign exchange reserves to 53 billion dlrs, among the world's largest. "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. Retaliation," said Paul Sheen, chairman of textile exporters . 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. 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. 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. In Hong Kong, where newspapers have alleged Japan has been selling below-cost semiconductors, some electronics manufacturers share that view. But other businessmen said such a short-term commercial advantage would be outweighed by further U.S. Pressure to block imports. "That is a very short-term view," said Lawrence Mills, director-general of the Federation of Hong Kong Industry. "If the whole purpose is to prevent imports, one day it will be extended to other sources. Much more serious for Hong Kong is the disadvantage of action restraining trade," he said. The U.S. Last year was Hong Kong's biggest export market, accounting for over 30 pct of domestically produced exports. 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. "This kind of deterioration in trade relations between two countries which are major trading partners of ours is a very serious matter," Button said. 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. Meanwhile U.S.-Japanese diplomatic manoeuvres to solve the trade stand-off continue. Japan's ruling Liberal Democratic Party yesterday outlined a package of economic measures to boost the Japanese economy. The measures proposed include a large supplementary budget and record public works spending in the first half of the financial year. 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. 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.

Tug crews in New South Wales (NSW), Victoria and Western Australia yesterday lifted their ban on foreign-flag ships carrying containers but NSW ports are still being disrupted by a separate dispute, shipping sources said. 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. The pay dispute went before a hearing of the Arbitration Commission today. Meanwhile, disruption began today to cargo handling in the ports of Sydney, Newcastle and Port Kembla, they said. 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. 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. Cargo handling in the ports has been disrupted, with container movements most affected, but has not stopped altogether, they said. They said they could not say how long the disruption will go on and what effect it will have on shipping movements.

The number of workers employed in the West German industrial sector stagnated in the last quarter of 1986 as a 50,000 increase in overall employment benefited only the services branch, the DIW economic institute said. 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. It referred to a marked downturn in the number of workers taken on in the capital goods sector. 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.

Bowater Industries Plc 1986 pretax profits of 48.0 mln stg exceeded market expectations of around 40 mln and pushed the company's shares up sharply to a high of 491p from 468p last night, dealers said. The shares later eased back to 481p. Bowater reported a 32.4 mln stg profit in 1985. 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. It added that it had appointed David Lyon, currently managing director of Redland Plc as its new chief executive. 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. 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.

A sharp fall in the dollar price of zinc and the depreciation of the U.S. Currency created unfavourable economic conditions for Vieille Montagne SA in 1986. 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. 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.

Tug crews in New South Wales (NSW), Victoria and Western Australia yesterday lifted their ban on foreign-flag ships carrying containers but NSW ports are still being disrupted by a separate dispute, shipping sources said. 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. The pay dispute went before a hearing of the Arbitration Commission today. Meanwhile, disruption began today to cargo handling in the ports of Sydney, Newcastle and Port Kembla, they said. 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.

The two sides in the Rotterdam port general cargo dispute have agreed to appoint an independent chairman, Han Lammers, to preside over future meetings, employers' spokesman Gerard Zeebregts said. 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. 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. 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. 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. 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. The employers have written to the union asking it to reconsider its position and a meeting of union members has been called for tomorrow.

The Bank of England said it provided the market with further help totalling 166 mln stg during the afternoon. 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. In addition, it bought 63 mln stg of band three bank bills at 9-3/4 pct. 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.

Shr 33 cts vs not given Net 642,484 vs 362,883 NOTE: Company went public in October 1986. 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.

The coupon on the 75 mln dlr, 15-year, convertible eurobond for Atari Corp has been set at 5-1/4 pct compared with indicated range of five to 5-1/4 pct, lead manager Paine Webber International said. The conversion price was set at 32-5/8 dlrs, representing a premium of 20.38 pct over yesterday's Atari share close of 27 dlrs.

4th qtr Shr loss 17 cts vs loss 22 cts Net loss 14.5 mln vs loss 18.0 mln Revs 27.3 mln vs 23.7 mln Year Shr 58 cts vs 1.01 dlrs Net loss 48.3 mln vs loss 84.2 mln Revs 111.7 mln vs 141.9 mln NOTE: Atlas Consolidated Mining and Development Corp of Manila. Translated from Philippine pesos at 20.3489 pesos to dollar vs 18.5571 in quarter and 20.2315 vs 18.2743 in year.

Shr primary 73 cts vs 60 cts Shr diluted 70 cts vs 58 cts Net 38,528,000 vs 31,680,000 Avg shares 52,087,634 vs 51,294,652 NOTE: Qtr net interest income is 130.7 mln dlrs vs 114.8 mln dlrs. Earnings per share reflects two-for-one common stock split on March 15.

Shr loss 17.3 cts vs 21.5 cts Net loss 14.5 mln vs loss 18.0 mln Revs 27.3 mln vs 23.7 mln Year Shr loss 58 cts vs loss 1.01 dlrs Net loss 48.3 mln vs loss 84.2 mln Revs 111.7 mln vs 141.9 mln

The Association of White Metals has decided to publish a daily tin price here in French francs per 100 kilos, the French Federation of Non-Ferrous Metals said. 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. Today's price was set at 4,776 francs per 100 kilos and Tuesday's at 4,790. The International Chamber of Commerce stopped publishing a tin price after the London Metal Exchange (LME) stopped tin trading on October 24, 1985. 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. 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. The French Federation of Non-Ferrous Metals groups various metal associations including the Association of White Metals.

Western Digtial Corp said it has completed the redemption of its 47 mln dlr, 6-3/4 pct convertible subordinated debentures due 2011. The redemption resulted in the issuance of 2,685,142 shares of the company's common stock, Western Digital said.

said it signed a letter of intent to be acquired by Tradevest Inc through a stock-for-stock exchange. After completion of the transaction, Tradevest would own 90 pct of the issued outstanding stock of Madeira.

General Electric Co Plc (GEC) declined comment on rumours on the London stock market that it is planning another purchase in the U.S. Medical equipment field, in addition to its existing U.S. Subsidiary . A GEC spokesman said that it is company policy not to comment on acquisition rumours. 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.

Presidential spokesman Marlin Fitzwater said U.S. trade sanctions against Japan were likely take effect on April 17 in spite of a "full court press" by Japanese officials to avoid them. "All indications are they will take effect," he said. "I would say Japan is applying the full court press ... They certainly are putting both feet forward in terms of explaining their position," Fitzwater told reporters. 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."

Shr 39 cts vs not given Net 707,000 vs 505,000 NOTE: Company went public in July 1986.

The relatively high level of real U.S. interest rates suggests that there is scope for further declines in money market rates, but the Federal Reserve is unlikely to promote such a drop as long as the dollar remains volatile, said J.P. Morgan and Co Inc chairman Lewis Preston. 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." On the other hand, he said that, barring a collapse of the dollar, he did not see rates going much higher. 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." Preston reiterated earlier company forecasts that the U.S. economy should show roughly 2.5 to three pct real growth this year. 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.

Iraq said today its troops were pushing Iranian forces out of positions they had initially occupied when they launched a new offensive near the southern port of Basra early yesterday. A High Command communique said Iraqi troops had won a significant victory and were continuing to advance. 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. The communique said Iranian Revolutionary Guards were under assault from warplanes, helicopter gunships, heavy artillery and tanks. "Our forces are continuing their advance until they purge the last foothold" occupied by the Iranians, it said. (Iran said its troops had killed or wounded more than 4,000 Iraqis and were stabilising their new positions.) The Baghdad communique said Iraqi planes also destroyed oil installations at Iran's southwestern Ahvaz field during a raid today. It denied an Iranian report that an Iraqi jet was shot down. Iraq also reported a naval battle at the northern tip of the Gulf. 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.

Shr 15 cts vs nine cts Qtly div six cts vs six cts in prior qtr Net 2,002,261 vs 1,168,638 Revs 29.2 mln vs 29.3 mln Avg shrs 13.1 mln vs 13.0 mln Nine mths Shr 49 cts vs 36 cts Net 6,404,536 vs 4,623,295 Revs 92.2 mln vs 88.2 mln Avg shrs 13.1 mln vs 13.0 mln NOTE: Dividend is payable April 30 to holders of record April 20

Xebec Corp said it expects to report a loss for its second quarter ended April three, due principally to a decline in sales to International Business Machines Corp , the company's largest customer. Xebec also said it expects revenues to total about 23 mln dlrs. The company reported a second quarter loss last year of 1.9 mln dlrs, or 14 cts per share, on 23.9 mln in revenues. Xebec said IBM has historically accounted for about 50 pct of the company's revenues, but that total fell to 20 pct during the quarter just ended. IBM had used Xebec's hard disk drive controller products in the IBM PC/XT, a product which IBM is phasing out. Xebec said it intends to continue streamlining its operations in light of the loss of business. The company also said it has already consolidated two of its plants in Nevada and it now plans to sell unused and surplus assets to provide additional liquidity.

The Commodity Credit Corporation has accepted a bid for an export bonus to cover a sale of 12,500 tonnes of wheat flour to Iraq, the U.S. AGriculture Department said. The bonus awarded was 113.0 dlrs per tonne and will be paid to Peavey Company in the form of commodities from CCC stocks. The wheat flour is for delivery May 15-June 15, 1987, the department said. An additional 162,500 tonnes of wheat flour are still available to Iraq under the Export Enhancement Program initiative announced January 7, 1987, USDA said.

Qtly div 23 cts vs 23 cts prior qtr Pay 10 June Record 20 May

Qtly div 20 cts vs 20 cts in prior qtr Payable June 10 Record May 22

Oper shr loss 79 cts vs loss 2.32 dlrs Oper net loss 2,536,896 vs loss 6,562,472 Revs 13.8 mln vs 14.5 mln Year Oper shr loss 59 cts vs loss 2.35 dlrs Oper net loss 1,712,896 vs loss 5,747,472 Revs 43.6 mln vs 44.2 mln NOTE: 1986 excludes charge of 12 cts per share in the fourth quarter and gain of 11 cts per share in the year.

The Senate unanimously approved legislation to lift a ban on new construction of natural gas-fired power plants and other large industrial gas-burning plants. The bill, sponsored by Senate Energy Committee chairman Bennett Johnston, also repeals mandatory incremental pricing of natural gas which was designed to protect residential consumers from major price increases by forcing some industrial users to pay higher than market prices. "This legislation will open up new natural gas markets," the Lousiana Democrat said. The gas restrictions were enacted in 1978 in response to a shortage of natural gas and predictions of higher prices. "Now both oil and gas prices are severely depressed," Johnston said. In a compromise with coal producers, the bill requires new baseload electric powerplants be designed to accomodate modifications necessary to burning coal or another alternate fuel.

Williams Cos said it expected oil and fertilizer transportation volumes to be flat in 1987 but said operating profits from the pipeline unit should improve from 49.4 mln dlrs earned last year when a seven mln dlr special charge was incurred. Williams Pipeline Co took the charge against earnings in 1986 for the removal of more than 500 miles of old pipeline from service and for casualty losses. Companywide, Williams had a net loss of 134 mln dlrs on total revenues of 1.85 billion dlrs, a decline from profits of 32 mln dlrs on sales of 2.46 billion in 1985. In its annual report, Williams said its Northwest Pipeline Corp and Williams Natural Gas Co had natural gas costs that are among the lowest in the nation, averaging 2.04 dlrs and 2.07 dlrs per mcf, respectively, last year. Total natural gas reserves for both units declined to 10,010 billion cubic feet in 1986 from 11,334 billion cubic feet the previous year. The company said its Williams Natural Gas unit, which has less take-or-pay exposure than most major pipelines, should show improvement in its 1987 operating results because of changes tariff and federal tax rates. The company's gas marketing business is expected to have somewhat lower earnings in 1987 because of competition in its operating region, the annual report said. The gas marketing unit earned 26.0 mln dlrs on sales of 285.6 mln dlrs last year. Williams also said it expected a substantial decline in its debt to equity ratio this year because of more than 250 mln dlrs received in cash from the sale of Agrico Chemical Co and proceeds from the sale and leaseback of Williams Telecommunications Co. The telecommunications business, a 2,000-mile fiber optic system for long distance use, will not be profitable until late 1988, Williams said.

Shr 38 cts vs 25 cts Net 28,339,000 vs 18,650,000 Sales 2.27 billion vs 1.97 billion Avg shrs 74,485,000 vs 74,270,000 Year Shr 1.20 dlrs vs 1.23 dlrs Net 89,301,000 vs 91,247,000 Sales 9.07 billion vs 7.91 billion Avg shrs 74,387,000 vs 74,184,000 NOTE: 1986 period ended February 22, 1986 1986 earnings include net loss of unconsolidated subsidiary of 162,000 dlrs in the quarter and 702,000 dlrs for the year

The following proposed securities offerings were filed recently with the Securities and Exchange Commission: First Interstate Bancorp - Shelf offering of up to 112 mln dlrs of debt securities, including notes and debentures, on terms to be determined at the time of the sale. Pacificorp Credit Inc, subsidiary of Pacificorp - Shelf offering of up to 250 mln dlrs of debt securities, including notes and debentures, at prices and on terms to be determined at the time of the sale.

Shr 33 cts vs 37 cts Net 2,051,000 vs 1.8 mln Assets 1.7 billion vs 1.5 billion Deposits 1.4 billion vs 1.2 billion Loans 1.1 billion vs 900 mln Note: Year-ago results restated to reflect merger with Colson Inc.

Brazilian Finance Minister Dilson Funaro, who suspended interest payments to creditor banks two months ago, said creditors had to trust him when he said Brazil would achieve a trade surplus large enough to continue servicing its debt. Speaking to reporters at the Brazilian Embassy, Funaro said he would not seek approval of Brazil's economic program outside his country, but added, "At the same time we show credibility, you (the banks) are going to have to trust us." Asked if creditor banks would accept Brazil's refinancing needs based on a new economic program not endorsed by the International Monetary Fund, Funaro said, "What other options do they have?...They have to try to see our program." Funaro, who is in Washington to attend the Interim Committee and Development Committee meetings of the World Bank and IMF, said he unveiled his refinancing proposals to the major creditor banks in New York yesterday. According to Funaro, the creditor banks "agreed on the need to find a solution to the crisis." He did not elaborate. Funaro said the commercial banks agreed on Brazil's need for economic growth and added that creditors were aware that Brazil cannot continue to export the 24 billion dlrs in net capital that it transferred over the past three years. He also said that he told bankers about Brazil's needs to ensure a seven pct average growth and eight billion to 11 billion dlr trade surplus until 1991. Administration officials familiar with the negotiations said Brazil's new economic measures did not make much sense based on current conditions in that country, and added that they saw long and difficult negotiations ahead. Lewis Preston, chairman of J.P. Morgan and Co. Inc., told Reuters he remains hopeful that Brazil and its foreign bank creditors will reach a debt rescheduling agreement before the end of the year. But Preston, who did not attend the meeting between Funaro and creditor banks yesterday, added the onus is still on Brazil to put its economic house in order first. "They haven't even come up with a plan yet," Preston said after Morgan's annual meeting in New York today. Funaro, however, said most creditor banks had representatives in Brazil who were well aware of Brazil's new economic measures, designed to curb a surge in inflation and spending and a sharp drop in exports. Funaro called Brazil's program very responsible and very strong, adding that "it is very different from other years, there has been a tremendous change." Based on Brazil's current economic situation - suspension of interest payments on 67 billion dlrs owed to banks, 200 pct inflation and the need of four billion dlrs in new loans every year until 1991 - he said he was faced with two options. REUTER...

The Bank of France said it has invited offers of first category paper today for a money market intervention tender. Money market operators were divided over whether the Bank of France will use to occasion to cut its intervention rate, which has stood at 7-3/4 pct since March 9. Some thought a price cut unlikely while others said there was room for a further 1/4 point cut by the bank.

Year 1986 Consolidated net profit 67 mln Swiss francs vs 42 mln. Dividend 100 francs per registered share vs 80 francs and 10 francs per participation certificate vs eight. Consolidated turnover 4.55 billion francs vs 4.54 billion. Parent company net profit 38.2 mln francs vs 26.4 mln. Parent company turnover 2.20 billion francs vs 2.29 billion. Note - Company's full name is Gebrueder Sulzer AG

Belgium plans to issue Swiss franc warrants to buy gold, with Credit Suisse as lead manager, market sources said. No confirmation or further details were immediately available.

Johnson Matthey today issued the following Platinum group base prices (unfabricated), all U.S. Dlrs per troy ounce. Previous prices in parentheses. PLATINUM - 562 (567) PALLADIUM - 130 (130) IRIDIUM - 400 (400) RHODIUM 1,230 (1,230) RUTHENIUM - 80 (80)

The European Community launched an investigation into allegations of dumping by Japanese semiconductor makers in a move which diplomats said could mark an intensification of world trade strains. Tokyo already faces a deadline of April 17 from Washington for the imposition of 300 mln dlrs worth of tariffs on chips it imports into the U.S. The EC Executive Commission said today the European Electrical Component Manufacturers Association complained that Japanese firms were selling high capacity EPROM type (erasable programmable read only memory) chips at unfairly low prices. Japan last year took 78 pct of the 170 mln dlr EC EPROM market, up from 60 pct in 1984. The EC firms said they had been forced to offer their products at a discount of up to 30 pct in order to compete with the Japanese. The Commission said it believed the Association had given sufficient elements of proof for dumping to warrant an investigation, which could lead it to impose duties if it found the complaints were justified. The Commission claims last year's accord between the U.S. And Japan on microchip pricing gives U.S. Firms privileged access to the Japanese market.

Todd Shipyards Corp said production workers represented by the multi-union Pacific Coast Metal Trades District Council at its San Francisco division struck on April Six. It said negotiations are expected to resume at the end of this month. Todd also said the collective bargaining division in effect at its Galveston Division expires April 17, and negotiations with the Galveston Metal Trades Council are continuing. The company said results of balloting on a new collective bargaining agreement proposal in its Seattle Division are expected to be tabulated at the close of business tomorrow. The Pacific Coast Council has recommended acceptance of that proposal by membership, Todd said.

Ropak corp said it has formed a new Tokyo-based subsidiary called Ropak Nippon Ltd to market its North American products in Japan. It said the new unit has started importing plastic pans and other products for the packaging of seafood and will also market rigid-plastic shipping pails for a variety of packaging uses.

Burlington Industries Inc is raising 75 mln dlrs through an offering of convertible subordinated debentures due 2012 with a 6-1/4 pct coupon and par pricing, said lead manager Kidder, Peabody and Co Inc. The debentures are convertible into the company's common stock at 63.50 dlrs per share, representing a premium of 18.1 pct over the stock price when terms on the debt were set. Non-callable for three years, the issue is rated Ba-2 by Moody's Investors Service Inc and BBB by Standard and Poor's Corp. Merrill Lynch Capital Markets and Salomon Brothers Inc co-managed the deal.

ABOUT 3,314 HEAD OF CATTLE WERE AUCTIONED IN LINIERS CATTLE MARKET, AGAINST 13,952 ON WEDNESDAY AND 9,217 LAST THURSDAY, TRADE SOURCES SAID. MAXIMUN PRICES, IN AUSTRALES PER KILO, WITH DOLLAR EQUIVALENT IN BRACKETS, INCLUDED: TODAY WEDNESDAY STEERS OVER 480 KILOS 1.02(0.658) 1.015(0.654) STEERS 460 TO 480 KILOS 1.05(0.677) 1.032(0.665) COWS FOR CANNING 0.56(0.361) 0.56 (0.361)

Sekisui Chemical Co Ltd is issuing a 200 mln dlr equity warrant bond due May 7, 1992 paying an indicated coupon of two pct and priced at par, lead manager Yamaichi International (Europe) Ltd said. The issue is guaranteed by Sanwa Bank Ltd and is available in denominations of 5,000 dlrs. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The payment date is May 7 while listing will be in Luxembourg. Final terms will be fixed on April 15. The warrants are exercisable from May 20, 1987 until April 20, 1992.

Shr 63 cts vs 89 cts Net 3,425,216 vs 3,370,682 Avg shrs 5,421,330 vs 3,803,425 NOTE: net for both qtrs reflects gains on sales of securities of 1,755,137, or 51 pct of net, in 1987; and 3,001,222, or 89 pct of net in 1986.

Moderately active grain fixing was reported out of the U.S. But none of the business involved the significant voyages to the Continent or Japan, ship brokers said. A steady 13.50 dlrs was paid from the U.S. Gulf to Morocco and 23.25 dlrs was paid for 27,000 long tons from the Gulf to Taiwan. A vessel carrying 13,500 long tons of bagged wheat flour from the Gulf to Aqaba received a lump sum of 472,500 dlrs. Grain from the Great Lakes to Algeria made 28 dlrs against 27.75 paid for similar fixing towards the end of March. Market talk suggested a Federal Commerce vessel had been booked to move grain from the Great Lakes to Morocco on Comanav account at about 22 dlrs and 15.50 had been paid for a cargo of oilseeds from British Columbia to Japan, but no confirmation was obtainable. On the Continent, shippers agreed 19 dlrs for wheat from La Pallice to Buenaventura and 10.75 dlrs for grain from Ghent to Naples/Venice range. Elsewhere, maize from East London to Japan paid 22 dlrs. Soviet charterers reappeared in the timecharter sector and secured a 30,000 tonner from Savona for a trans-Atlantic round trip at 4,450 dlrs daily and a 31,000 tonner from Antwerp-Hamburg for a similar voyage at 4,250 dlrs daily.

ARGENTINE GRAIN BELT TEMPERATURES (CENTIGRADE) AND RAIN (MM) IN THE 24 HOURS TO 12.00 GMT WERE: ...............MAX TEMP..MIN TEMP..RAINFALL BUENOS AIRES.......24.......12............0 BAHIA BLANCA.......22........7............0 TRES ARROYOS.......22........8............0 TANDIL.............22........7............0 JUNIN..............24.......11............0 SANTA ROSA.........--........6............0 CORDOBA............23.......12............1 SANTA FE...........21.......18...........17

Shr 1.64 dlrs vs 1.56 dlrs Net 4,583,000 vs 5,313,000 Revs 20.1 mln vs 19 mln Avg shrs 2.8 mln vs 3.4 mln Year Shr 5.06 dlrs vs 5.92 dlrs Net 16 mln vs 20.3 mln Revs 74.6 mln vs 68 mln Avg shrs 3.2 mln vs 3.4 mln

Qtly div 75 cts vs 65 cts prior Pay June one Record May one

Brazilian cocoa exporters are not likely to follow the example of Cocoa Producers Alliance, CPA, members, who may limit sales of the product in an effort to boost world prices, trade sources said. They said a similar procedure was taken in the past in Brazil and that it did not work out according to plans. "The cocoa market is completely free. Unlike coffee, which is controlled through export registrations, cocoa exporters in Brazil operate at their own free will," a trade source said. The traders were responding to questions whether they would follow the example of CPA members meeting in Yaounde. The sources said the Banco do Brasil's Foreign Trade Department, CACEX, never interferes in the cocoa market by rejecting sales that do not meet certain price or shipment criteria. "The position of local producers is always to negotiate as they please. If they buy for ten and sell for eleven and think it's a good deal, they are free to go ahead," one source added.

Treasury Secretary James Baker said that changes in exchange rates have generally been orderly and have improved the prospects for a reduction in external imbalances to more sustainable levels. In remarks before the IMF's policy-making Interim Committee, Baker reiterated a Group of Seven statement last night that the substantial exchange rate changes since the Plaza agreement 18 months ago have "now brought currencies within ranges broadly consistent with economic fundamentals." Baker said, "These exchange rate shifts have generally been orderly, and have improved prospects for the reduction of external imbalances to more sustainable levels." As they are today, the trade and current account imbalances "simply are not sustainable," Baker told the ministers. He said that the Reagan administration was resisting "strong domestic pressure" for trade protection and was working closely with the U.S. Congress in crafting a trade bill. "While we cannot yet be sure of the outcome, we are doing what we can to ensure that the bill is not protectionist," he said. Baker also urged the International Monetary Fund's executive board to review possible modifications to the Fund's compensatory financing facility before the annual meeting this fall. "We should pay particular attention to the lack of continuing conditionality associated with the use of the CFF and to whether shortfalls in export earnings are indeed temporary," he said.

Time Inc said its Time-Life Video Inc subsidiary has agreed in principle to sell its institutional training business to Time-Life Video president William V. Ambrose for undisclosed terms. It said the business will operate as Ambrose Video Publishing.

Shr nil vs nil Net 18,534 vcs 27,431 Revs 270,032 vs 188,326 Avg shrs 6,598,871 vs 6,090,576 Year Shr nil vs nil Net 47,299 vs 21,570 Revs 1,004,392 vs 677,909 Avg shrs 6,618,063 vs 5,931,324 NOTE: Share adjusted for one-for-11 reverse split.

is seeking a 400 mln dlr, five-year multi option facility, arranger Banque Nationale de Paris said. The facility will be co-arranged by Morgan Guaranty and The Industrial Bank of Japan Ltd. The operation has an "evergreen" facility and can be extended up to eight years, BNP said. The facility will be made up of two components. The first "A" part will consist of a maximum 400 mln dlrs with a maximum spread of Libor plus 3/8 pct. Component "B," to be unsecured, will be for a maximum of 200 mln dlrs with a maximum spread of Libor plus 5/8 pct for the first three years, Libor plus 3/4 pct for the fourth to sixth years and LIBOR plus 7/8 pct for the seventh year. Honeywell Bull was recently created by Cie des Machines Bull , and of Japan.

RJR Nabisco Inc said its 1987 first quarter results will include an after-tax gain of 208 mln dlrs from the sale of Heublein Inc and offsetting charges. The company said its operations are performing well and in line with expectations. RJR Nabisco said the charges reflect reserves it established to cover certain expenses. RJR Nabisco said the expenses covered, on after-tax basis, include -- -- 50 mln dlrs for the write-down of redundant equipment and facilities resulting from modernization of its U.S. tobacco operations, -- 79 mln dlrs for continuing restruction of its food subsidiaries, and -- 80 mln dlrs in connection with the early retirement of high coupon debt.

No raw sugar is being unloaded at Tate and Lyles refinery at Silvertown on the River Thames following a fire yesterday afternoon, Tate and Lyle Plc said. The fire destroyed a large sector of the main conveyor from the raw sugar jetty to the weighhouse. The company said it is not yet known how long the jetty will be out of use but it hoped that by tomorrow unloading of the bulk carrier Mykon Wave will be able to continue using temporary arrangements, Tate and Lyle said. The Mykon Wave arrived in the port recently with about 18,300 tonnes of bulk sugar from Maputo in Swaziland. About 1,600 tonnes remain to be discharged. Five other ships loaded with raw sugar are awaiting at Silvertown to be discharged, Tate and Lyle added.

JP Industries Inc confirmed the announcement by Clevite Industries Inc that JP Industries has submitted a proposal to Clevite for the acquisition of the company at 13.50 dlrs per share in cash. John Psarouthakis, chairman and president of JP Industries, said that the company hopes to promptly negotiate an agreement with the special committee of Clevite's board. In February, JP Industries said it purchased Clevite's engine parts division. JP Industries said it is not aware of any other reason for activity in its stock.

Ten grain ships were loading and 14 were waiting to load at New Orleans elevators, trade sources said. ELEVATOR LOADING WAITING Continental Grain, Westwego 1 6 Mississippi River, Myrtle Grove 1 0 ADM Growmark 1 4 Bunge Grain, Destrehan 1 0 ELEVATOR LOADING WAITING ST CHARLES DESTREHAN 1 1 RESERVE ELEVATOR CORP 1 0 PEAVEY CO, ST ELMO 1 0 CARGILL GRAIN, TERRE HAUTE 2 1 CARGILL GRAIN, PORT ALLEN 0 0 ZEN-NOH 1 2

27,000 long tons USG/Taiwan 23.25 dlrs fio five days/1,500 1-10/5 Continental. Trade Banner - 30,000 long tons grain USG/Morocco 13.50 dlrs 5,000/5,000 end-April/early-May Comanav. Reference New York Grain Freights 1 of April 8, ship brokers say the vessel fixed by Cam from the Great Lakes to Algeria at 28 dlrs is reported to be the Vamand Wave. Reference New York Grain Freights 2 of April 8, they say the Cory Grain maize business from East London at 22 dlrs is to Japan and not to Spain as reported.

TBN 14,00 mt bulk sugar Fiji/Prai 16 dlrs fio 10,000/1,000 1-10/5 Fiji Sugar Marketing. TBN 15,000 mt bulk sugar Queensland/Japan 14.65 dlrs fio 10,000/1,000 20-30/4 CSR. ENQUIRIES - Antwerp/1-3 ports Greece 40,000 mt bagged sugar indications 750/750 in shipments of 10,000/15,000 tonnes spread from May to July a/c unnamed charterer. Inchon/India 12,600 mt bagged sugar 1,000/1,000 20/4-5/5 a/c Kaines. Reunion/1-2 ports Portugal 10,000 mt bulk sugar about 20 dlrs 2,000/750 1-10/5 a/c French charterer.

Antwerp/Libya 5,500 mt bagged flour 14 daps 24-27/4. New Orleans/Guanta 9,387 mt bulk hss 3,000/13 days 25-4/5-5. Naantali/Saudi Red Sea 30,000/35,000 mt barley 4,000/3,000 20-30/4 or early May. Dunkirk/Xingang 12,000 mt bagged flour 1,500/1,700 13-20/4. Toledo/Seaforth 17,000 mt hss offers 18.50 dlrs four days/8,000 13-15/4. River Plate/Malaysia 20,000/22,000 long tons hss 2,000/2,000 Apr.

Qtly div 38 cts vs 35 cts prior Pay May 15 Record May One

Fitchburg Gas and Electric Light Co said its Board of Directors authorized a filing with the Massachusetts Department of Public Utilities seeking authority to issue up to 27 mln dlrs of long-term notes. Proceeds will be used to redeem, after June one, all outstanding shares of the company's cumulative preferred stock, four dlr series, redeem certain outstanding long-term indebtedness and repay outstanding short-term indebtedness. Fitchburg said this would lower its cost of capital in the future and give the utility an opportunity to reduce existing lines of credit.

Doe Run Company said it is increasing the price of its corroding grade lead by one-half cent to 26.50 cents a lb, effective immediately. The price is quoted FOB, Herculaneum, Mo., and FOB, Boss, Mo., with freight allowed for carload quantities.

Shr seven cts vs six cts Net 1,612,000 vs 1,406,000 Revs 38.2 mln vs 34.3 mln Avg shrs 23,742,000 vs 22,945,000

Shr profit five cts vs profit two cts Net profit 325,000 vs profit 105,000 Revs 19.5 mln vs 16.1 mln Six Mths Shr profit nine cts vs loss 35 cts Net profit 627,000 vs loss 2,280,000 Revs 36.9 mln vs 27.4 mln

Shr 94 cts vs 1.02 dlrs Net 7,255,000 vs 7,856,000 Loans 2.88 billion vs 2.94 billion Deposits 4.05 billion vs 3.73 billion Assets 5.43 billion vs 5.14 billion

First Bank Systems Inc, in reporting higher first quarter net, said that if interest is not paid on the 140 mln dlrs in Brazilian loans and nine mln dlrs in Ecuadorian loans for the rest of 1987, its profits for the entire year will be cut by 6.9 mln dlrs. The banking firm said the non-performing status of these loans cut first quarter net by 1.7 mln dlrs. Earlier it reported first quarter profits of 57.4 mln dlrs or 95 cts a share, up from 46.6 mln dlrs or 80 cts a share in the year-ago period. Nonaccrual loans, restructured loans and other real estate were 637 mln dlrs, or 2.24 pct of total assets, compared to 514 mln dlrs or 1.84 pct of assets at the end of 1986 and 636.1 mln, or 2.46 pct of assets at March 31, 1986. The provision for loan losses in the quarter was 35 mln dlrs, compared to 152.1 mln in the first quarter 1986, when there was a special addition to the reserve of 100 mln dlrs. Net charge offs were 34.7 mln, compared to 41.1 mln dlrs a year earlier. REUTER^M

Following are highlights of the U.S. Agriculture Department supply/demand projections for the 1986/87 seasons, in mln bushels, with comparisons, unless noted -- Corn -- Stocks, Aug 31, 1987, at 5,240, vs 5,595 last month. Stocks, Aug 31, 1986, at 4,040, vs 4,040 last month. Exports projected at 1,375, vs 1,250 last month. Exports in 1985/86 at 1,241, vs 1,241 last month. Domestic use at 5,680, vs 5,450 last month. Usage in the 1985/86 season at 5,255, vs 5,255 last month. Wheat -- Stocks, May 31, 1987, projected at 1,848, vs 1,877 last month. Stocks on May 31, 1986, at 1,905, vs 1,905 last month. Exports in 1986/87 season at 1,025, vs 1,025 last month. 1985/86 season at 915, vs 915 last month. Domestic use in 1986/87 at 1,134, vs 1,105 last month. 1985/86 at 1,045, vs 1,045 last month. Cotton -- in mln 480 lb bales - Stocks, July 31, 1987, at 5.40, vs 5.49 last month. Stocks July 31, 1986, at 9.35, vs 9.35 last month. Exports in 1986/87 season at 6.66, vs 6.76 last month. Exports in 1985/86 - 1.96, vs 1.96 last month. Soybeans -- in mln bushels - Stocks, Aug 31, 1987, projected at 610, vs 635 last month. Stocks Aug 31, 1986, at 536, vs 536 last month. Soybean crushings during 1986/87 - 1,130, vs 1,115 last month. Crushings in 1985/86 at 1,053, vs 1,053 last month. Exports in 1986/87 season at 700, vs 700 last month. Exports in 1985/86 at 740, vs 740 last month. Soybean Oil -- mln lbs - Stocks on Sept 30, 1987, at 1,360, vs 1,200 last month. Stocks on Sept 30, 1986, at 947, vs 947 last month. Exports in 1986/87 at 1,350, vs 1,350 last month. Exports in 1985/86 at 1,257, vs 1,257 last month. Soybean Cake/Meal -- thousand short tons - Stocks, Sept 30, 1987, at 270, vs 315 last month. Stocks, Sept 30, 1986, at 212, vs 212 last month. Exports in 1986/87 season at 6,500, vs 6,350 last month. Exports in 1985/86 at 6,036, vs 6,008 last month.

The U.S. Agriculture Department made the following supply/demand projections for the 1986/87 seasons, in mln bushels, with comparisons, unless noted -- CORN -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Acreage (mln acres) -- Planted 76.7 76.7 83.4 83.4 Harvested 69.2 69.2 75.2 75.2 Yield (bu) 119.3 119.3 118.0 118.0 Supply (mln bu) -- Start Stock 4,040 4,040 1,648 1,648 Production 8,253 8,253 8,877 8,877 Total-X 12,295 12,295 10,536 10,536 X-Includes imports. CORN (cont.) 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Usage: Feed 4,500 4,300 4,095 4,126 Other 1,180 1,150 1,160 1,129 Ttl Domest 5,680 5,450 5,255 5,255 Exports 1,375 1,250 1,241 1,241 Total Use 7,055 6,700 6,496 6,496 End Stocks 5,240 5,595 4,040 4,040 Farmer Reser 1,400 1,300 564 564 CCC Stocks 1,700 1,500 546 546 Free Stocks 2,140 2,795 2,930 2,930 AvgPrice 1.35-1.65 1.35-1.65 2.23 2.23 Note - Price in dlrs per bu. Corn season begins Sept 1. ALL WHEAT - 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Acreage (mln acres) -- Planted 72.0 72.0 75.6 75.6 Harvested 60.7 60.7 64.7 64.7 Yield 34.4 34.4 37.5 37.5 Supply (mln bu) -- Start Stcks 1,905 1,905 1,425 1,425 Production 2,087 2,087 2,425 2,425 Total Supply-X 4,007 4,007 3,865 3,865 X - Includes imports. ALL WHEAT 1986/87 1985/86 (cont.) 04/09/87 03/09/87 04/09/87 03/09/87 Usage: Food 700 690 678 678 Seed 84 90 93 93 Feed 350 325 274 274 Ttl Domest 1,134 1,105 1,045 1,045 Exports 1,025 1,025 915 915 Total Use 2,159 2,130 1,960 1,960 End Stocks 1,848 1,877 1,905 1,905 Farmer Reser 475 450 433 433 CCC Stocks 950 950 602 602 Free Stocks 423 477 870 870 Avg Price 2.30-40 2.30-40 3.08 3.08 Note - Price in dlrs per bushel. Wheat season begins June 1. SOYBEANS - 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Acreage (mln acres) -- Planted 61.5 61.5 63.1 61.1 Harvested 59.4 59.4 61.6 61.6 Yield (bu) 33.8 33.8 34.1 34.1 Supply (mln bu) -- Start Stocks 536 536 316 316 Production 2,007 2,007 2,099 2,099 Total 2,543 2,543 2,415 2,415 SOYBEANS (cont.) 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Usage -- Crushings 1,130 1,115 1,053 1,053 Exports 700 700 740 740 Seed, Feed and Residual 103 93 86 86 Total Use 1,933 1,908 1,879 1,879 End Stocks 610 635 536 536 Avg Price 4.60-4.80 4.60-4.80 5.05 5.05 Note - Average price in dlrs per bushel. Soybean season begins June 1. FEEDGRAINS - X 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Acreage (mln acres) -- Planted 119.8 119.8 128.1 128.1 Harvested 102.0 102.0 111.8 111.8 Yld (tonnes) 2.48 2.48 2.45 2.45 Supply (mln tonnes) -- Start Stocks 126.4 126.4 57.5 57.5 Production 252.4 252.4 274.4 274.4 Imports 0.6 0.6 0.9 0.9 Total 379.4 379.4 332.7 332.7 X - Includes corn, sorghum, barley, oats. FEEDGRAINS - X (cont.) 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Usage: Feed 140.6 136.2 134.8 135.5 Other 35.8 35.0 35.0 34.3 Ttl Domest 176.4 171.2 169.8 169.8 Exports 43.9 40.8 36.6 36.6 Total Use 220.3 211.9 206.4 206.4 End Stocks 159.1 167.5 126.4 126.4 Farmer Reser 39.0 36.5 16.6 16.6 CCC Stocks 55.2 49.5 20.4 20.4 Free Stocks 64.8 81.5 89.3 89.3 X - Includes corn, sorghum, oats, barley. Seasons for oats, barley began June 1, corn and sorghum Sept 1. SOYBEAN OIL - 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Supply (mln lbs) -- Start Stcks 947 947 632 632 Production 12,263 12,103 11,617 11,617 Imports Nil Nil 8 8 Total 13,210 13,050 12,257 12,257 Note - 1985/86 production estimates based on October year crush of 1,060 mln bushels. SOYBEAN OIL (cont.) - 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Usage (mln lbs) -- Domestic 10,500 10,500 10,053 10,053 Exports 1,350 1,350 1,257 1,257 Total 11,850 11,850 11,310 11,310 End Stcks 1,360 1,200 947 947 AvgPrice 14.5-16.0 15.0-17.0 18.00 18.00 Note - Average price in cents per lb. Season for soybean oil begins Oct 1. SOYBEAN CAKE/MEAL, in thousand short tons -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stcks 212 212 387 387 Production 26,558 26,203 24,951 24,951 Total 26,770 26,415 25,338 25,338 Note - 1985/86 production estimates based on October year crush of 1,060 mln bushels. SOY CAKE/MEAL (cont.) - 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Usage (thous short tons) -- Domestic 20,000 19,750 19,090 19,118 Exports 6,500 6,350 6,036 6,008 Total 26,500 26,100 25,126 25,126 End Stcks 270 315 212 212 AvgPrice 145-150 145-150 154.90 154.90 Note - Price in dlrs per short ton. Season for soybean cake and meal begins Oct 1. COTTON -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Area (mln acres) -- Planted 10.06 10.06 10.68 10.68 Harvested 8.49 8.49 10.23 10.23 Yield (lbs) 549 553 630 630 Supply (mln 480-lb bales) -- Start Stks-X 9.35 9.35 4.10 4.10 Production 9.70 9.79 13.43 13.43 Ttl Supply-Y 19.06 19.14 17.57 17.57 X - Based on Census Bureau data. Y - Includes imports. COTTON (cont.) - 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Usage -- Domestic 7.10 7.01 6.40 6.40 Exports 6.66 6.76 1.96 1.96 Total 13.76 13.77 8.36 8.36 End Stocks 5.40 5.49 9.35 9.35 Avge Price 51.7-X 51.7-X 56.50 56.50 X - 1986/87 price is weighted average for first five months of marketing year, not a projection for 1986/87. Average price in cents per lb. Cotton season begins August 1. RICE 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Acreage (mln acres) -- Planted 2.40 2.40 2.51 2.51 Harvested 2.38 2.38 2.49 2.49 Yield (lbs) 5,648 5,648 5,414 5,414 Supply (mln cwts) -- Start Stcks 77.3 77.3 64.7 64.7 Production 134.4 134.4 134.9 134.9 Imports 2.2 2.2 2.2 2.2 Total 213.9 213.9 201.8 201.8 RICE (cont.) 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Usage (mln cwts) -- Domestic 67.0 67.0 65.8 65.8 Exports 80.0 80.0 58.7 58.7 Total-Y 147.0 147.0 124.5 124.5 End Stocks 66.9 66.9 77.3 77.3 CCC Stocks 42.9 42.9 41.5 41.5 Free Stocks 24.0 24.0 35.8 35.8 AvgPrice 3.45-4.25 3.45-4.25 6.53 6.53 Note - Average price in dlrs per CWT. Y-Rough equivalent. N.A.-Not Available, USDA revising price definition due to marketing loan. Rice season begins August 1. SORGHUM 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Yield (bu) 67.7 67.7 66.8 66.8 Supply (mln bu) -- Start Stcks 551 551 300 300 Production 942 942 1,120 1,120 Total 1,493 1,493 1,420 1,420 Usage (mln bu) -- Feed 550 575 662 662 Other 30 30 29 29 Ttl Domest 580 605 691 691 SORGHUM (cont.) - 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Exports 225 225 178 178 Total Use 805 830 869 869 End Stocks 688 663 551 551 Avge Price 1.30-50 1.30-50 1.93 1.93 Note - Price in dlrs per bushel. Sorghum season begins Sept 1. BARLEY 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Yield (bu) 50.8 50.8 51.0 51.0 Start Stocks 325 325 247 247 Production 610 610 591 591 Imports 5 5 9 9 Total 941 941 847 847 BARLEY (cont.) 1986/87 1985/86 04/09/87 03/15/87 04/09/87 03/15/87 Usage (mln bu) -- Feed 300 300 333 333 Other 175 175 167 167 Ttl Domest 475 475 500 500 Exports 150 150 22 22 Total Use 625 625 522 522 End Stocks 316 316 325 325 AvgPrice 1.45-65 1.45-65 1.98 1.98 Note - Average price in dlrs per bushel. Barley season begins June 1. OATS - in mln bushels 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Yield (bu) 56.0 56.0 63.7 63.7 Start Stcks 184 184 180 180 Production 385 385 521 521 Imports 30 30 28 28 Total 598 598 729 729 OATS, in mln bushels (cont.) 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Usage -- Feed 400 400 460 460 Other 85 85 83 83 Ttl Domes 485 485 543 543 Exports 2 2 2 2 Total 487 487 545 545 End Stcks 111 111 184 184 AvgPrice 1.00-20 1.00-20 1.23 1.23 Note - Average price in dlrs per bushel. Oats season begins June 1. LONG GRAIN RICE, in mln CWTs (100 lbs) -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Harvested -- Acres (mln) 1.83 1.83 1.94 1.94 Yield (lbs) 5,358 5,358 5,168 5,168 Start Stks 49.3 49.3 37.7 37.7 Production 97.8 97.8 100.4 100.4 Ttl Supply 148.6 148.6 140.1 140.1 Note -- Starting Stocks does not include broken kernels -- Supply minus use does not equal ending stocks in breakdowns. Total Supply includes imports but not broken kernels. LONG GRAIN RICE, in mln CWTs (100 lbs), cont. -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Domestic Use 43.0 43.0 48.8 48.8 Exports 65.0 60.0 42.0 42.0 Total Use 108.0 103.0 90.8 90.8 End Stocks-X 40.6 45.6 49.3 49.3 AvgPric 3.45-4.25 3.45-4.24 6.86 6.86 Note - Average price in dlrs per cwt. X-Broken kernels not included -- supply minus use does not equal ending stocks in breakdowns. Rice season begins August 1. MEDIUM, SHORT GRAIN RICE - in mln CWTs (100 lbs) -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Harvested -- Acres (mln) 0.55 0.55 0.55 0.55 Yield (lbs) 6,651 6,651 6,258 6,258 Start Stks 26.7 26.7 25.7 25.7 Production 36.6 36.6 34.5 34.5 Ttl Supply 65.3 65.3 61.7 61.7 Note -- Starting Stocks does not include broken kernels -- Supply minus use does not equal ending stocks in breakdowns. Total Supply includes imports but not broken kernels. MEDIUM, SHORT GRAIN RICE, in mln CWTs (100 lbs), cont. -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Domestic Use 24.0 24.0 17.0 17.0 Exports 15.0 20.0 16.7 16.7 Total Use 39.0 44.0 33.7 33.7 End Stocks-X 24.5 19.5 26.7 26.7 AvgPric 3.45-4.25 3.45-4.25 5.91 5.91 Note - Average price in dlrs per CWT. X-Broken kernels not included - supply minus use does not equal ending stocks in breakdowns. Rice season begins August 1. NOTES ON U.S. SUPPLY/DEMAND TABLES -- N.A. - Not available. -- Totals may not add due to rounding. -- Figures for 1986/87 are midpoint of USDA range. -- Feed usage for corn, wheat, soybean, feedgrains, sorghum, barley, oats includes residual amount. -- Residual amount included in rice and medium/short grain rice domestic usage. -- Rice, long grain, and medium/short grain rice average price for 1985/86 estimates and 1986/87 projections are market prices and exclude cash retained under the marketing loan since April, 1986.

Semi-annual div seven cts vs six cts prior Pay June One Record May One .

The U.S. Agriculture Department detailed world supply/demand data for major importers and exporters of cotton, by country, as follows, in mln 480-lb bales -- CHINA COTTON -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stcks 16.00 18.30 19.40 19.80 Production 16.30 16.30 19.00 19.00 Imports X X X X Domes Use 21.00 17.50 19.50 17.50 Exports 2.30 2.50 2.90 2.90 End Stocks 9.05 14.55 16.00 18.30 X - Less than 5,000 bales PAKISTAN COTTON, in mln 480 bales -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stocks 1.07 1.07 1.05 1.05 Production 6.10 6.10 5.67 5.67 Imports X X X X Domestic Use 2.50 2.50 2.34 2.34 Exports 3.00 3.00 3.15 3.15 End Stocks 1.51 1.51 1.07 1.07 X - Less than 5,000 bales. USSR COTTON, in mln 480-lbs bales -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stocks 2.76 2.76 2.62 2.62 Production 11.20 11.20 12.10 12.10 Imports 1.00 1.00 0.65 0.65 Domestic Use 9.70 9.70 9.60 9.60 Exports 2.80 2.80 3.00 3.00 End Stocks 2.46 2.46 2.76 2.76 JAPAN COTTON, in mln 480-lbs bales -- 1986/87 1985/86 04/09/87 03/09/87 04/09/87 03/09/87 Start Stocks 0.52 0.52 0.61 0.61 Production NIL NIL NIL NIL Imports 3.10 3.10 3.05 3.05 Domestic Use 3.10 3.10 3.15 3.15 Exports NIL NIL NIL NIL End Stocks 0.52 0.52 0.52 0.52

The Commodity Credit Corporation (CCC) accepted a bid for an export bonus to cover a sale of 12,500 tonnes of U.S. wheat flour to Iraq, the U.S. Agriculture Department said. The department said the bonus awarded was 105.82 dlrs per tonne and the wheat flour is for shipment July 1-10, 1987. The bonus was awarded to The Pillsbury Company and will be paid in the form of commodities from CCC stocks. An additional 150,000 tonnes of wheat flour is still available to Iraq under the Export Enhancement Program initiative announced January 7, 1987, the department said.

Shr 15 cts vs 15 cts prior qtr Pay June one Record April 24

There were six grain ships loading and eight ships were waiting to load at Portland, according to the Portland Merchants Exchange.

The Commodity Credit Corporation (CCC) has transferred 12.0 mln dlrs in credit guarantees previously earmarked for sales of U.S. hatching eggs and 7.0 mln dlrs in guarantees for breeder livestock to increase coverage on sales of U.S. protein concentrates to Iraq, the U.S. Agriculture Department said. The action was taken at the request of Iraq's State Trade Organization for Grains and Foodstuffs and reduces the line for hatching eggs to zero and the line for breeder livestock from 15.0 mln dlrs to 8.0 mln dlrs, the department said. The guarantee line for sales of protein concentrates has been increased from 25.0 mln dlrs to 44.0 mln dlrs, it said.

U.S. corn sales of just over 1.0 mln tonnes in the week ended April 2 were eight pct above the prior week, but 25 pct below the four-week average, the U.S. Agriculture Department said. In comments on its latest Export Sales Report, the department said Iraq, Japan and the USSR were the largest buyers. Sales for the next marketing year, which begins September 1, totaled 503,200 tonnes and were mainly to Iraq and Taiwan. Wheat sales of 119,300 tonnes for the current season and net reductions of 13,700 tonnes for the 1987/88 season were four-fifths below the combined total for the prior week and the four-week average, it said. Sri Lanka was the most active wheat destination with purchases of 52,500 tonnes for the current year, it said. Other significant purchasers for the current year were Mexico and Honduras, it said. Soybean sales of 240,500 tonnes were one-fifth below the prior week and nearly one-third below the four-week average. Japan, Mexico, South Korea, Italy and Israel were the major purchasers, the department said. Net sales of 117,700 tonnes of soybean cake and meal fell 31 pct from the previous week and 38 pct below the four-week average. Major increases for West Germany, Venezuela, the Netherlands and Saudi Arabia were partially offset by reductions for unknown destinations, USDA said. Activity in soybean oil resulted in decreases of 2,400 tonnes, with sales to unknown destinations down by 2,700 tonnes, while sales to Canada increased 200 tonnes, the Department said. Combined sales of 71,300 running bales of cotton -- 60,200 bales for the current season and 11,100 bales for 1987/88 season -- were four-fifths higher than the prior week's level but nine pct below the four-week average. Mexico was the dominant buyer for the current year followed by Zaire, Italy, and Spain, the department said. The primary buyers for the 1987/88 season were South Korea, Spain, Japan and Taiwan, the department said. Sorghum sales of 143,300 tonnes were 25 pct less than the prior week, with Japan and Venezuela the main buyers.

Westinghouse Electric Corp chairman Douglas Danforth said he was encouraged by first quarter results for fiscal 1987, and said the company was positioned to capitalize on the economy's modest growth for the rest of the year. "I am encouraged by the continuing improvement in earnings," Danworth said. "The first quarter met our expectations." Westinghouse recorded net income for the first quarter of 151.6 mln dlrs, or 1.05 dlrs per share, on revenues of 2.32 billion dlrs. Danworth attributed the results to an increase in the operating profit in the energy and advanced technology, industries and commerical segments.

Shr seven cts vs five cts Net 240,000 vs 136,000 Loans 264.5 mln vs 251.7 mln Deposits 319.7 mln vs 306.8 mln Assets 348.6 mln vs 334.6 mln

Shr 39 cts vs 28 cts Net 491,000 vs 356,000 Revs 890,000 vs 720,000 Year Shr 1.54 dlrs vs 2.49 dlrs Net 1,952,00 vs 3,165,000 Rev 3,463,000 vs 3,005,000 Note: Net includes state tax credit of 400,000 for 1986 qtr and year. Net also includes gains from sale of real estate of 3,000 vs 83,000 for qtr and 563,000 vs 1,317,000 for year.

Nerco Inc said its oil and gas unit closed the acquisition of a 47 pct working interest in the Broussard oil and gas field from for about 22.5 mln dlrs in cash. Nerco said it estimates the field's total proved developed and undeveloped reserves at 24 billion cubic feet, or equivalent, of natural gas, which more than doubles the company's previous reserves. The field is located in southern Louisiana.

Commodities from gold to grains to cotton posted solid gains in a flurry of buying today as losses in the U.S. dollar and rising interest rates kindled fears of inflation and economic instability. Gains were most pronounced on the Commodity Exchange in New York, where gold jumped 12.40 dlrs and closed at 436.50 dlrs a troy ounce, and silver 22.5 cents to 6.86 dlrs a troy ounce. A key factor behind the advance was anticipation that inflation will be the only way for the major industrial nations to halt the slide in the value of the U.S. dollar, said Steve Chronowitz, director of commodity research with Smith Barney, Harris Upham and Co., in New York. The dollar tumbled one day after top finance officials from the seven largest industrial nations reaffirmed their commitment to support its value, and despite reports of intervention by the U.S. Federal Reserve Bank, traders said. Traders said it appears that the industrial nations, known as the Group of Seven, lack the ability to change the long-term direction of the currency markets. "Maybe they have some ideas or plans," said Chronowitz. "If they do, it's not evident." "It looks like there's no cure but to let the free market take values to where they should be. "One way or another, we will force our major trading partners to stimulate their economies," as a measure to correct the mounting U.S. trade deficit, Chronowitz said. "I think the markets believe, and have believed for a long time, that the only recourse is to reflate at some point. It's going to be a long and tedious process, but that's what's happening," he said. The falling value of the dollar makes U.S. commodities cheaper for foreign buyers, stimulating demand. At the same time, traders who are holding stocks and bonds saw the value of their investments falling and many are turning to commodities such as precious metals as a hedge, said Marty McNeill, a metals analyst in New York with the trading house of Dominick and Dominick. The reaction in the metal markets reverberated throughout the commodities markets, as grains, livestock, and cotton posted broad gains. Traders at the Chicago Board of Trade said attention in the grain markets has shifted from concern about burdensome supplies to the outlook that a lower dollar will stimulate export demand. After the close of trading, the Agriculture Department raised its estimate for grain imports by the Soviet Union by two mln tonnes from the month-earlier report. Live hogs and frozen pork bellies posted sharp gains on the Chicago Mercantile Exchange, while live cattle were moderately higher. Analysts said several factors boosted hog prices. They said hogs haven't been making the weight gains that are normal at this time of year, and farmers have been too busy with field work to market animals.

Winterhalter Inc said its shareholders approved the 525,000 dlr acquisition of Winterhalter by Interface Systems Inc . The acquisition would be for 15 cts per Winterhalter share.

Economists said that they doubt the Federal Reserve is firming policy to aid the dollar, despite higher discount window borrowings in the latest two-week statement period and very heavy borrowings Wednesday. Data out today show net borrowings from the Fed averaged 393 mln dlrs in the two weeks to Wednesday, up from 265 mln dlrs in the prior statement period. Wednesday borrowings were 1.4 billion dlrs as Federal funds averaged a high 6.45 pct. "One could make a case that the Fed is firming, but it probably isn't," said William Sullivan of Dean Witter Reynolds. Sullivan said some may assume the Fed has firmed policy modestly to support the dollar because net borrowings in the two-weeks to Wednesday were nearly 400 mln dlrs after averaging around 250 mln dlrs over the previous two months. However, the Dean Witter economist noted that the latest two-week period included a quarter end when seasonal demand often pushes up borrrowings. "Some might argue that the Fed was firming policy, but it looks like it tried to play catchup with reserve provisions late in the statement period and didn't quite make it," said Ward McCarthy of Merrill Lynch Capital Markets. A Fed spokesman told a press press conference today that the Fed had no large net one-day miss of two billion dlrs or more in its reserve projections in the week ended Wednesday. Still, McCarthy said it may have had a cumulative miss in its estimates over the week that caused it to add fewer reserves earlier in the week than were actually needed. The Fed took no market reserve management action last Thursday and Friday, the first two days of the week. It added temporary reserves indirectly on Monday via two billion dlrs of customer repurchase agreements and then supplied reserves directly via System repurchases on Tuesday and Wednesday. Based on Fed data out today, economists calculated that the two-day System repurchase agreements the Fed arrranged on Tuesday totaled around 5.9 billion dlrs. They put Wednesday's overnight System repos at approximately 3.4 billion dlrs. "It is quite clear that the Fed is not firming policy at this time," said Larry Leuzzi of S.G. Warburg and Co Inc. Citing the view shared by the other two economists, Leuzzi said the Fed cannot really afford to seriously lift interest rates to help the dollar because that would harm already weak economies in the United States and abroad and add to the financial stress of developing countries and their lenders. "Those who believe the Fed tightened policy in the latest statement period have to explain why it acted before the dollar tumbled," said McCarthy of Merrill Lynch. He said the dollar staged a precipitous drop as a new statement period began today on disappointment yesterday's Washington meetings of international monetary officials failed to produce anything that would offer substantive dollar aid. In fact, currency dealers said there was nothing in Wednesday's G-7 communique to alter the prevailing view that the yen needs to rise further to redress the huge trade imbalance between the United States and Japan. The economists generally agreed that the Fed is aiming for steady policy now that should correspond to a weekly average Fed funds rate between six and 6-1/8 pct. This is about where the rate has been since early November. "I'm not so sure that the Fed is engineering a tighter policy to help the dollar, as some suspect," said Sullivan of Dean Witter. If it is, however, he said that Fed probably has just nudged up its funds rate goal to around 6.25 to 6.35 pct from six to 6.10 pct previously.

The dollar fell below 143 yen in hectic early Tokyo trading despite aggressive Bank of Japan intervention, dealers said. After opening at a Tokyo low of 143.75 yen, the dollar fell as low as 142.90 yen on heavy selling led by securities firms and institutional investors, they said.

Union and New South Wales government officials have reached a compromise in a dispute over workers compensation, averting increased industrial action in the state, union sources said. But some unions, including those of building and mining workers, said they were dissatisfied with the deal and would continue their strikes for a few more days. State officials said the government had agreed to revise its proposals to cut compensation and would allow slightly higher cash benefits for injured workers. Under the original proposal, which sparked strikes and other industrial action in the state on April 7, workers' compensation would have been cut by one third. Full details of the compromise package are not yet known. The Labour Council, affiliated to the Australian Council of Trade Unions (ACTU), had threatened to paralyse New South Wales unless the government modified its pending legislation on the issue. State officials said the only sectors affected in the past three days were some government building projects, railway freight movement and cargo handling in Sydney's ports.

Thailand exported 56,652 tonnes of rice in the week ended April 7, down from 75,160 tonnes the previous week, the Commerce Ministry said. It said the government and private exporters shipped 41,607 and 15,045 tonnes respectively. Private exporters concluded advance weekly sales for 48,062 tonnes against 22,086 tonnes the previous week. Thailand exported 1.29 mln tonnes of rice so far in 1987, down from 1.39 mln tonnes a year ago. It has commitments to export a further 353,045 tonnes this year.

Japan warned the United States it may take retaliatory measures if the United States imposes its planned trade sanctions on April 17, a senior government official said. Shinji Fukukawa, Vice Minister of the International Trade and Industry Ministry, said in a statement Japan would consider measures under the General Agreement on Tariffs and Trade and other actions if the United States imposes 100 pct tariffs on some Japanese exports as planned next week. However, Fukukawa said Japan was ready to continue trade talks with the United States despite its failure to convince America to call off the threatened tariffs during two days of emergency talks which ended in Washington yesterday. Last month President Reagan announced the sanctions in retaliation for what he called Japan's failure to honour a July 1986 agreement to stop dumping computer microchips in markets outside the United States and to open its home market to American goods. Fukukawa said the United States had regrettably not listened to Japan's explanation of its efforts to live up the pact and said Washington had not given any detailed explanation of why it planned to impose the tariffs.

Member states of the European Community are starting to run out of patience with Japan which they believe has repeatedly promised major initiatives to open its market to imports, but as often made only minor moves. Diplomatic sources here said several recent actions by EC countries bear witness to a new disillusionment with the willingness, or at least the ability, of the Japanese government to reduce its massive trade surplus with the EC. However, they said an all-out trade war may be far off, as EC states know they would suffer almost as much as Japan. Senior EC diplomats gave a generally favourable reaction to an EC executive commission proposal under which the EC could raise tariffs on a range of Japanese products if the U.S. Carries out a threat to make a similar move on April 17. The EC tariffs, which would involve renouncing obligations entered into with the world trade body GATT, would be designed to stop a diversion of exports to the EC market from that of the U.S. The diplomats were meeting as Tokyo announced that the EC's trade deficit with Japan reached a record 2.13 billion dlrs in March, up from 1.94 billion in February. In 1986, Japanese exports to the EC totalled 30.67 billion dlrs, up 4.5 pct from 1985, while EC exports to Japan fell one pct to 12.43 billion dlrs. In Paris, trade minister Michel Noir said France has decided to give Japan a taste of its own medicine. Burgeoning imports of microwave ovens and of frozen Coquilles St Jacques will be restricted by a strict application of French quality standards -- something EC states say often happens to their own exports entering Japan. Britain has threatened to withdraw the licences of Japanese banks and insurance companies to operate in the City of London, because the British Cable and Wireless company lost out in competition for a Japanese telecommucations contract. However, British officials in London have said that the government may have gone too far in implying that it would take immediate drastic action unless the contract was reopened. By contrast, West Germany, with the EC's most successful economy, has never threatened Tokyo with sanctions, preferring to rely on firm diplomacy and encouragement of its own industries to surmount obstacles to export to Japan. The EC Commission itself has switched its tactics in recent years, substituting general calls for action by Japan to open its market with specific demands for moves in key areas. At present, it is, for instance, pressuring Japan to end allegedly discriminatory taxation of imported wines and spirits, to ensure EC companies have a chance to win contracts for the building of a new international airport, and to simplify certification and safety checks on imported cars. EC officials say these tactics yield some benefits, but often the Japanese announce modifications of their non-tariff barriers which open the door to imports by only a token amount. They stress, however, that any action must be taken by the EC as a whole to stop beggar-my-neighbour action. One of the problems Britain could face if it were to withdraw licences for Japanese banks would be that the bankers would be welcomed with open arms in Frankfurt or Amsterdam, they point out.

Morgan Crucible Co Plc said the prospects for 1987 were encouraging, with orders and sales significantly up on last year in all divisions. It said there were good opportunities for growth in both existing and recently acquired businesses as well as for growth by acquisition in related areas. It earlier announced a 6.1 mln stg rise in pre-tax profit to 24.8 mln stg for the year to December 28. Turnover rose to 242.1 mln from 211.5 mln. Most of its companies performed well despite a slowdown in the U.S., U.K. And Australian economies in the first half. Currency fluctuations reduced pretax profit by around one mln stg, it noted. Morgan said although profits in the electronics sector improved to 1.0 mln stg from 100,000 stg previously, results were nonetheless disappointing. Sales were lower than expected, due mainly to delayed defence orders and cancellations. However, it said it had taken the necessary remedial action, obtained new business and was now proceeding with the delivery of major delayed orders. Morgan shares firmed two pence to 318p at 0905 GMT from 316p at Friday's close.

The Commonwealth Bank of Australia said it will lower its prime lending rate to 17.5 pct from 18.25, effective April 15. The bank's new rate will be the lowest of Australia's current prime rates. They now range from 17.75 pct to 18.5 after a recent series of reductions since late March following an easier trend in short term money market rates. Two of the three other major trading banks now have prime rates of 18 pct and one of 18.25. The Commonwealth's move reverses an increase from 17.5 pct in early February.

Kyushu Electric Power Co Inc will issue a seven-year 20 billion Euroyen bond on April 22, a company spokesman said. The straight bond, to be priced at 101.625, will carry a 4.75 pct coupon to yield 4.445 pct. Lead manager is Nomura International Inc. Issue cost including fees will be 4.8 pct, or 0.9 percentage point below the March issue rates for Japanese electric power company bonds. These are normally between the rates on 10-year government bonds and private corporate bonds.

Hillsdown Holdings Plc said its Christie-Tyler Ltd unit would buy the European bedding making interests of Simmons Co U.S.A., Owned by Gulf and Western Industries Inc USA , for 23 mln dlrs. The acquisitions include in the U.K., in France and in Italy. In 1986 the three businesses made pre-tax profit of around 2.5 mln stg on sales of 39 mln stg. Net assets being acquired come to around nine mln stg. Hillsdown shares were unchanged at 266p.

North Yemen at its weekend tender bought white sugar from a French operator acting on behalf of a Swiss house at 214.70 dlrs a tonne c and f, traders said. The amount bought was not immediately available, although the country had sought 30,000 tonnes of June arrival whites, they said.

The Bank of England said it had provided the money market with 75 mln stg help in the morning session. This compares with the Bank's estimate that the system would face a shortage of around 400 mln stg today. The central bank bought bank bills outright comprising two mln stg in band two at 9-13/16 pct, 15 mln stg in band three at 9-3/4 pct and 58 mln stg in band three at 9-11/16 pct.

Crazy Eddie Inc said its board has adopted a defensive shareholder rights plan and said it has received "friendly inquiries" on its acquisition. It said under the plan, shareholdrs of record as of April 21 will receive a right to purchase under certain circumstances at a price of 42 dlrs 0.01 preferred share for each common share held. The rights will expire April Nine. The company said the rights would be exercisable 20 business days after a party were to acquire 20 pct or more of Crazy Eddie common stock or announce a tender or exchange offer that would result in ownership of 30 pct or more. Crazy Eddie said if a party owning 20 pct or more of its stock were to merge into it or if a party were to acquire 40 pct or more of Crazy Eddie stock, right holders other than the acquiring party would be entitled to acquire common shares or other securities or assets with a market value equal to twice the rights' exercise price. If after a party acquired 20 pct or more of its stock Crazy Eddie were acquired or 50 pct of its earnings power or assets sold, rightholders other than the acquirer would be entitled to buy shares of the acquirer's common stock worth twice the rights' exercise price, the company said. Crazy Eddie said if a party were to acquire 30 pct or more of its common stock and then fail to acquire Crazy Eddie within 180 days thereafter, rightholders would be entitled to exchange their Crazy Eddie common stock for subordinated notes of Crazy Eddie maturing either one year or, above a certain dollar limt, five years after issuance. Crazy Eddie said adoption of the plan is not in response to any known effort to acquire control of it. But the company said it has become aware of some "possible accumulations" of its stock has has received some "friendly inquiries."

Six workers were killed and four injured in an undeground rock fall at South Africa's second largest gold mine today, the mine owners said. It was the third major mine accident in the country in less than a week. Thirty four workers died in methane gas explosion at a coal mine last Thursday.

The Zambian kwacha fell at this week's foreign exchange auction to 18.75 kwacha to the dollar from last week's 16.95, the Bank of Zambia said. The rate was the lowest since the auctions resumed two weeks ago under a new two-tier exchange rate system worked out with the World Bank and International Monetary Fund. The Bank of Zambia said it received 370 bids, ranging from 13.00 to 20.75 kwacha, for the six mln dlrs on offer. One hundred and thirty-five bids were successful. A British High Commission spokesman said Britain would put eight mln stg into the auction at a rate of one mln a week as soon as Zambia reached a full agreement with the IMF. The money could be spent only on goods produced and supplied by British firms, excluding luxuries and defence equipment, the spokesman added.

Portugal's economy, which has been enjoying one of its most buoyant periods in more than a decade, may now be strong enough to shrug off the country's latest government crisis, analysts said. But the April 3 ousting of Prime Minister Anibal Cavaco Silva's government could slow economic reforms and investment as Portugal continues to adapt to membership in the European Community, which it joined in January last year, they said. Cavaco Silva's minority Social Democratic Party, PSD, was toppled in a parliamentary censure vote by left-wing parties. The centre-right administration had made economic growth reform a priority in its 17 months in office. In 1986, Portugal's economy grew four pct, its current account surplus swelled to more than one billion dlrs and inflation fell to 10 pct, from 20 pct in 1985. Analysts and businessmen said the prospects of instability were worrying but they felt the foundations for continued growth had not been badly shaken. "The economy has developed a certain self-confidence that is now less dependent on the political situation," said Fritz Haser, economics professor at Universidade Livre, Lisbon. "The market doesn't see this as a real crisis yet," economist Jorge Braga de Macedo told Reuters. Businessmen have identified political instability over the last 13 years as one of the biggest obstacles to lasting economic progress. The PSD administration was the 16th formed since the 1974 revolution. Portugal's developing stock markets, however, remain buoyant. Brokers and unit trust managers said the recent surge in economic confidence under the PSD rule was still largely underpinned by continuing optimistic forecasts. Investment grew nearly 10 pct in 1986 and a Bank of Portugal forecast, released on the day the PSD government fell, predicted the pace of investment and overall economic growth would remain at similar levels this year. But analysts said the crisis interrupted current policies and could slow economic development. Soares, who is expected to announce a decision by the end of the month, can either call early elections or form a new government from parties in the existing left wing-dominated parliament. Many businessmen said they strongly favoured quick elections as the best solution. "There is a good chance that a majority government could result from early elections," Confederation of Portuguese Industry (CIP) president Pedro Ferraz da Costa said. He said they were optimistic this could mean the continuation in the near future of liberalisation policies introduced over the last year. The left-wing parties favour a parliamentary solution, but the PSD said it wants an early election in which opinion polls say they could win an overall majority. A PSD majority would also open the way for more wide-ranging reforms, such as relaxation of labour laws and possible denationalisation of industry, the analysts said. Cavaco Silva has accused the left-wing opposition parties of blocking key economic reforms. The left-wingers said Portugal's positive economic results were more the product of favourable international conditions such as cheaper oil and raw material imports, than of PSD policies.

Shr 47 cts vs not given Net 2,100,000 vs 1,277,000 NOTE: Company went public in fourth quarter of 1986. Home Federal Savings and Loan Association of Upper East Tennessee.

Blue Arrow PLC said it signed an agreement to acquire Richards Consultants Ltd for 29 mln dlrs in cash and securities. Richards is a privately-owned New York-based executive recruitment firm. As part of the agreement, Blue Arrow said the four principal shareholders who manage Richards will enter into long-term service contracts with it. The agreement is subject to approval of Blue Arrow shareholders.

NVHomes LP said April 30 will be the distribution date for new units as a result of its previously-announced two-for-one split to unitholders of record April 20.

Global Petroleum corp said today it lowered the posted cargo prices for number six fuel in the new york harbor 45 to 75 cts a barrel, effective today. The decrease brings the prices for one pct sulphur to 20.75 dlrs, down 45 cts, two pct sulphur 20.10 dlrs, down 75 cts, 2.2 pct sulphur 19.75 dlrs, down 75 cts and 2.5 pct sulphur 19.50 dlrs, down 75 cts. Prices for 0.3 pct and 0.5 pct sulphur remained unchanged at 22.50 and 21.85 dlrs, it said.

Commonwealth Aluminum (Comalco) said it put its Goldendale, Wash., smelter back on the market after would-be buyer, Columbia Aluminum Corp, of Hermiston, Ore., failed to pull together financing by an April one deadline. The plant, which has an asking price of 18.7 mln dlrs plus several mln more dlrs for inventory, it said. Commonwealth said it is continuing talks with Columbia, but has also opened talks with other interested parties. Commonwealth bought the plant in January 1985 and closed it Feb 15, 1987, leaving about 400 workers jobless.

State bank Banca Commerciale Italiana (BCI) said it is launching a 50 billion lire eurobond on behalf of Merrill Lynch & Co. Due May 26, 1992 paying 10 pct and priced at 100 -1/2 pct. BCI said in a statement that it is leading an international underwriting consortium of 25 banks and financial institutions. The bank said Merrill Lynch International and Co is co-lead manager. The non-callable bond is available in denominations of two mln lire and will be listed in Luxembourg, BCI said.

Shr loss 29 cts vs profit 10 cts Net loss 2,733,000 vs profit 911,000 Revs 21.5 mln vs 18.5 mln 1st half Shr loss 23 cts vs profit 26 cts Net loss 2,154,000 vs profit 2,445,000 Revs 37.8 mln vs 37.7 mln NOTE: Current year net both periods includes 6,705,000 dlr pretax provision for closing overseas operations and tax credits 2,511,000 dlrs in quarter and 1,977,000 dlrs in half.

John Mowlem Plc, the U.K. Building and construction company, has arranged a 50 mln stg commercial paper program, with an option to issue notes in U.S. Dollars, Mowlem treasurer Philip Ridal said. He said the company hopes to make the first drawings in May to take advantage of lower borrowing costs and the greater flexibility afforded by this program. It also should increase the company's arbitrage opportunities, he added. The program was arranged by Kleinwort Benson Ltd, which will act as a dealer along with Morgan Grenfell and Co Ltd and Swiss Bank Corp International Ltd. The sterling notes will be sold in denominations of one mln and 500,000 stg and will have maturities of seven to 364 days. Ridal said the new program will complement a note issuance facility the company arranged last year and also increase the investor base.

Kuwait has agreed to charter tankers from the Soviet Union in a move to protect its oil exports through the Mideast Gulf, diplomatic sources said. They said the agreement followed months of talks with the Soviet Union and the U.S. On ways to secure its oil exports after Iran started to attack Kuwaiti-connected vessels in retaliation for Kuwait's backing for Iran's war enemy Iraq. Diplomats said they expect three Soviet tankers initially to reinforce other flags already supporting Kuwait's 22-tanker fleet. The diplomats said they knew of no deal for Moscow to provide a naval escort for its own vessels, but "the idea of protection is implicit," one said. They said Soviet cargo ships bound for Kuwait in the past to unload arms and materiel for road delivery to Iraq were known to have sailed under escort. So far, none of the Soviet ships are known to have been attacked by Iran. Diplomats said they expected the chartered Soviet tankers to sail between Kuwait and Khor Fakkan on the United Arab Emirates (UAE) coast a short way outside the Strait of Hormuz at the mouth of the Gulf.

Shr 21 cts vs 18 cts Net 2,256,000 vs 1,915,000 Revs 38.2 mln vs 35.3 mln Nine mths Shr 62 cts vs 56 cts Net 6,474,000 vs 5,808,000 Revs 125.9 mln vs 112.3 mln Backlog nine mln vs six mln NOTE: Share adjusted for five-for-four stock split in June 1986.

National Westminster Bank USA said higher loans and core deposit volumes as well as a substantial increase in net interest income contributed to a 16 pct rise in first-quarter earnings to 17.7 mln dlrs from 15.3 mln reported a year earlier. The earnings gain came despite a 1.5 mln dlr reduction of income as a result of placing Brazilian loans on non-accrual. Net interest income totalled 92.5 mln dlrs compared with 91.7 mln dlrs in the same 1986 period as loans, mostly to middle market businesses, increased by 896 mln dlrs. But some of these gains were offset by low levels of interest rates. Provision for loan losses rose to 13.8 mln dlrs from 13.0 mln a year earlier. At March 31, the allowance for loan losses was 114.2 mln dlrs versus 94.8 mln at end of March 1986. Non-accrual loans rose to 286 mln dlrs from 132 mln at the end of the first quarter of 1986, largely because 119 mln dlrs of loans to Brazil were put on non-accrual status. The bank said that if these loans remain on non-accrual for the remainder of the year net income for 1987 would be reduced by about 4.9 mln dlrs. National Westminster Bank USA is a wholly-owned subsidiary of National Westminster Bank PLC.

Shr 51 cts vs not given Net 4,661,000 vs 2,499,000 NOTE: Includes net securities gains of 663,000 dlrs vs 1.2 mln dlrs from. Company converted to stock ownership in December 1986.

International Business Machines Corp has started the year aggressively, but industry analysts said the company still faces some tough rounds in its fight to stop a two-year earnings slump. "I am more impressed with what's happening at IBM than I have been in a long time," said PaineWebber analyst Stephen Smith. "But they're not out of the woods yet," he added. At 1.30 dlrs a share, IBM's first-quarter net income easily topped most estimates on Wall Street, which had ranged from an even dollar to 1.20 dlrs. Most analysts said they were pleasantly surprised by IBM's performance. But they indicated that IBM's chances for a full recovery hinged on several key factors whose impact will not be felt until later in the year. These include the success of IBM's new personal computer line, introduced two weeks ago, and its 9370 minicomputers, which will begin volume shipments in July. In addition, IBM has said the full benefits of its early-retirement program and other cost-cutting moves will emerge as the year progresses. Analysts noted that IBM chairman John F. Akers was relatively more upbeat in assessing the company's outlook than he has been for nearly a year. "Although the worldwide economic situation remains unsettled, there are some encouraging signs in our business," Akers said, pointing to, among other things, higher first-quarter shipments. "We remain optimistic about the prospects for both the industry and IBM," he said. "Akers was most encouraging," said PaineWebber's Smith. A weak dollar, a lower tax rate and strong mainframe computer sales all contributed to the better-than-expected first-quarter results, analysts said. "Shipments of the 3090 mainframes were very strong in March," after a weak January and February, said Ulric Weil of Washington-based Weil and Associates. Sales of the top-of-the-line mainframes, commonly called the Sierras, "bailed out the whole quarter," Weil said, adding, "If this continues, it augers well for the rest of the year." REUTER...^M

Electrohome Ltd said it agreed to sell certain assets of the computer service sector of its AABEX service division to Canadian General Electric Co Ltd . Terms were not disclosed. The closing date is expected to be May 1, 1987.

Mthly div 6.5 cts vs 6.5 cts prior Pay April 30 Reord April 15 NOTE: Franklin Massachusetts Insured Tax-Free Income Fund.

Mthly div 6.1 cts vs 6.1 cts prior Pay April 30 Reord April 15 NOTE: Franklin Ohio Insured Tax-Free Income Fund.

Clark Copy International Corp said it acquired a majority interest in Datagraph GMBH of Lich, West Germany. The acquisition was made through Clark Copy's majority owned subsidiary Interactive Computer Aids of Norway. No price was disclosed for the acquisition. Clark Copy said worldwide sales for Datagraph, which makes color graphics workstations, were 10 mln dlrs for the year ended Dec. 31, 1986.

Homestake Mining Co is considering acquiring more gold ore reserves in addition to the company's exploration efforts, chief executive Harry Conger told Reuters in an interview. Conger said, "the move to consider acquisitions represents a change in the company's acquistions policy." Conger said all of Homestake's current cash position of 120 mln dlrs would be available to acquire reserves. In addition, Homestake has two lines of credit totaling 150 mln dlrs which have not been drawn on and could be used to finance an acquisition, he said. Conger said he anticipates 1987 exploration budget will be about the same as 1986 spending of 27.3 mln dlrs. Conger said exploration for precious metals may be slightly higher than last year's spending of 17.7 mln dlrs while oil and gas exploration spending will be slightly less than last year's 9.6 pct. Conger said he sees Homestake's 1987 gold production about the same as 1986 gold production of 669,594 ounces. However, 1987 first quarter production from its McLaughlin reserve will be about 10 pct lower than last year's 45,400 ounces due to start-up production problems. He said he believes gold prices will hold above the 400 U.S. dlr an ounce level for the rest of 1987.

Canada plans a three part, one billion dlr issue Tuesday, which will be dated and delivered May 1, the finance department said. The bonds will be issued as follows. - 8-1/2 pct bonds due March 1, 1992, - 8-3/4 pct bonds due June 1, 1996, - 9 pct bonds due March 1, 2011. The nine pct bonds will be issued to a maximum of 325 mln dlrs. The Bank of Canada will buy a minimum of 100 mln dlrs of the new issue, including five mln dlrs of the 2011 maturity.

Shr 1.21 dlrs vs 1.80 dlrs Net 16.9 mln vs 24.6 mln Revs 230.9 mln vs 289.6 mln 12 mths Shr 1.97 dlrs vs 2.37 dlrs Net 27.6 mln vs 32.4 mln Revs 648.6 mln vs 875.7 mln NOTE: company reports earnings qtrly and includes the previous 12 mths figures.

Shr primary 87 cts vs 83 cts Shr diluted 85 cts vs 74 cts Net 35.9 mln vs 30.6 mln Avg shrs 41.0 mln vs 34.2 mln Assets 13.95 billion vs 12.34 billion Deposits 10.21 billion vs 9.24 billion Loans 9.22 billion vs 7.89 billion Return on assets 1.07 pct vs 1.05 pct Note: Net includes securities gains of seven cts a shr vs two cts. Net includes loan loss provision of 20.2 mln vs 12.6 mln. Net charge-offs totaled 15.6 mln, brining the loan loss reserve at the end of the qtr to 120.5 mln.

Bank of New England Corp reported that pro forma first quarter earnings, which reflect its combined operations under a pending merger with the Conifer Group, rose to 60 mln dlrs, or 89 cts a share, from 49 mln dlrs, or 75 cts a share in 1986. The merger is expected to close on April 22. Earlier, Bank of New England reported first quarter net income, not taking the merger into account, rose to 1.04 dlrs from 83 cts a share. NOTE:First quarter of 1986 does not include restatement from recent acquisitions. After restatement, net income was 39.8 mln dlrs. The 1987 pro forma first quarter results include nonrecurring merger expenses of 4.7 mln dlrs. Excluding these expenses, growth in operating expenses of the combined companies was reduced from 14 pct to 12 pct during the first quarter. Loans and leases increased 34 pct to 19.5 billion dlrs and deposits grew 14 pct to 19.6 billion dlrs. The provision for possible credit losses was 14.4 mln dlrs in the first quarter compared with 19.7 mln dlrs last year. Net charge-offs were 10.9 mln dlrs, down from 12.8 mln dlrs in 1986.

Dauphin Deposit Corp said it signed a definitive agreement to acquire . The agreement calls for Colonial to be merged into Dauphin Deposit Corp, and Colonial's subsidiary, New Holland Farmers National Bank, to be merged into Dauphin Deposit Bank and Trust Co, the lead bank of Dauphin Deposit Corp, the company said. Shareholders of Colonial will receive between 3.6 and 4.4 shares of Dauphin common stock for each share of Colonial, depending on Dauphin's current market value, it said. As of Dec 31, 1986, Colonia Bancorp had assets of 150 mln dlrs, Dauphin said.

Cellular Communications Inc said that a unit purchased a 6.99 pct interest in the Cincinnati non-wireline cellular system. As a result of the transaction, the company said it now owns 100 pct of the system in Cincinnati.

HMO America Inc said it signed a letter of intent with Mount Sinai Medical Center here and an affiliate, providing that all of its common and preferred stock be acquired by a new not-for-profit company to be controlled by Mount Sinai and other Chicago area not-for-profit hospitals who may elect to participate in the acquisition. The form of the transaction has not yet been determined, it said. According to terms, HMO's shareholders would receive a combination of cash and debt securities to be issued by the buyer in exchange for their outstanding shares of common and preferred stock, it said. The amount of cash per share has not yet been determined, it added. Arrangements for financing have not yet been made and there can be no assurance that any financing will be received, HMO said. Closing of the proposed transaction, if it is completed, is expected on or before November 2, 1987, it said.

Shr five cts vs five cts prior qtr Pay May 15 Record April 22

The U.S. Treasury said its weekly auction of three-month bills produced an average rate of 5.98 pct, with a 6.08 pct rate on six-month bills. These rates compared with averages of 5.53 pct for the three- and 5.63 pct for the six-month bills sold last week. The bond-equivalent yield on three-month bills was 6.17 pct. Accepted bids ranges from 5.92 to 5.99 pct and 60 pct of the bids at the high, or stopout rate, were taken. For six months, the yield was 6.38 pct and the bids ranged from 5.98 pct to 6.10 pct with 48 pct of the bids accepted. The Treasury said it received 25.99 billion dlrs of bids for the three-month bills, including 1.2 billion dlrs in non-competitive bids from the public. It accepted 6.6 billion dlrs of bids, including 2.1 billion dlrs from the Federal Reserve and 180 mln dlrs from foreign and international monetary authorities. Some 24.7 billion dlrs in bids for six-month bills were received, including 832 mln dlrs in non-competitives. The Treasury accepted 6.6 billion dlrs, including 1.8 billion dlrs from the Fed and 1.2 billion dlrs from foreign and international authorities. The average price for the three-month bills was 98.488 and prices ranged from 98.504 to 98.486. The average price for the six-months bills was 96.926, and prices ranged from 96.977 to 96.916. The average yield on the three-month bills was the highest since 5.99 pct on June 30, 1986. The average yield on the six-month bills was the highest since 6.13 pct on June 23, 1986.

Northair Mines Ltd said it would oppose Nor-Quest Resources Inc's earlier reported proposed takeover bid "with every means at its disposal," saying "this attempt at a property grab is an insult to the intelligence of our shareholders." It said Nor-Quest's offer to swap one Nor-Quest share plus one dlr for two Northair shares would seriously dilute Northair's equity in its Willa mine in British Columbia. "Our company is in sound financial position and production financing can be readily arranged when required. We're not looking for a partner and if we were, it certainly wouldn't be these guys," Northair said.

Gulf Canada Corp said it acquired a 25 pct working interest in the Gulf of Suez oil concession for undisclosed terms. The company said its agreement with operator Conoco Hurghada Inc and Hispanoil covered the 168,374-acre East Hurghada offshore concession. It said a 15.6 mln U.S. dlr four-well program was planned for 1987. After the acquisition, which is subject to Egyptian government approval, working interests in the Hurghada block will be Conoco Hurghada at 45 pct, Hispanoil 30 pct and Gulf Canada the balance.

Qtly dividend 73 cts vs 73 cts Pay June 10 Record May 15

Ecuador will resume limited crude output next week to fill up storage tanks as a first step to pump oil to a Colombian pipeline on May one, the state Ecuadorean Petroleum Corp (CEPE) said. CEPE manager Carlos Romoleroux told reporters that Ecuador would begin pumping an unspecified amount of crude in northeastern jungle oilfields at the end of next week in preparation to send the oil through a new pipeline link-up to neighbouring Colombia. Oil production in Ecuador was halted on March five when an earthquake damaged the country's main pipeline from Lago Agrio, at the heart of the Ecuadorean jungle oilfields, to the pacific port of Balao. It will take at least until the end of July to repair the pipeline and return output to normal levels. The country was pumping between 245,000 bpd and 250,000 bpd before the tremor. To resume limited output in the meantime, Ecuador is constructing a 26 mile pipeline linkup, capable of carrying 55,000 bpd, from Lago Agrio to Puerto Colon, the starting point of Colombia's pipeline to the Pacific port of Tumaco. The original target date to resume limited crude output was May eight, the scheduled date for the inauguration of the Lago Agrio to Puerto Colon pipeline, an energy ministry spokesman said.

At least 60,000 tonnes of corn worth 240 mln pesos have been smuggled into the Philippines over the past few months, the Manila Bulletin newspaper said, quoting an official in the National Food Authority (NFA). The official, who was not named, said a large corn shortage and corruption among customs and Coast Guard personnel have jeopardised the government's ban on corn imports, which was aimed at saving foreign currency. The newspaper quoted NFA Marketing Director Jig Tan as saying monthly corn consumption stood at about 331,000 tonnes against a national stock inventory of 191,732 tonnes. Tan said a continuing drought affecting about 49,150 hectares of corn has led to the loss of 43,725 tonnes of corn worth 174.9 mln pesos and contributed to the shortage. The newspaper quoted Linda Geraldez, an NFA statistician, as saying despite the drought and the shortage, the total inventory at the end of the January/June crop season is expected to be at least 201,000 tonnes.

Qtly div 21 cts vs 21 cts prior Pay June 10 Record May Eight

Qtly div 64 cts vs 64 cts prior Pay May 15 Record April 30

The French Finance ministry said today a public flotation offer opening this coming Tuesday for 39 pct of the capital of (BIMP) has been set at 140 francs per share. The offer closes next Friday. The ministry said in a statement 51 pct of the bank's capital had been sold to a solid core of large investors, including insurance companies and Michelin subsidiary SPIKA, for 145 pct of the public offer price. Ten pct of the shares have been reserved for employees, who get a five pct discount increased to 20 pct if they keep the shares for two years. Employees also get one free share for each one bought, if the shares are held for at least one year. Small investors would receive one free share for every 10 bought, with an upper limit of five free shares per investor, and on condition the shares are held for at least 18 months. The state-owned capital of BIMP comprises 2.51 mln shares. The bank is being sold to the public as part of a sweeping programme to privatise 65 state-owned groups over five years. In a separate statement, the ministry said last week's privatisation offer of 1.07 mln shares in (BTP) was 65 times oversubscribed.

The Farny R. Wurlitzer Foundation told the Securities and Exchange Commission it cut its stake in Wurlitzer Co to 89,000 shares, or 4.98 pct of the total outstanding common stock, from 125,000 shares, or 7.0 pct. The foundation said it sold 36,000 Wurlitzer common shares between March 13 and 30 at prices ranging from 3.25 to 2.375 dlrs a share. As long as the foundation's stake in Wurlitzer is below five pct, it is not required to report further dealings it has in the company's common stock.

Soviet industrial output in the first quarter of this year grew by 2.5 pct compared with the first three months of 1986, Tass news agency reported. A regular meeting of the Politburo heard that in March, industry achieved the average daily rate needed to fulfil annual targets. Quarterly plans were exceeded in the fuel and power sector and agriculture, where output grew by 8.7 pct compared with the same period last year, it said. Plans were not fulfilled by the engineering and building ministries, the chemical and timber sectors, rail transport and light industry, it added.

The White House, distancing itself from remarks by the administration's budget chief, said the Federal Reserve's current course of monetary policy was appropriate. "The administration feels that the current course of monetary policy is appropriate," White House spokesman Marlin Fitwater said. Fitzwater said the administration did not endorse remarks by White House budget chief James Miller, who said he was concerned the Federal Reserve might overreact to the decline in the value of the U.S. dollar by raising interest rates. More

shr 47 cts vs 46 cts net 3,470,859 vs 3,454,577

Japan does not plan to take immediate retaliatory action against implementation of U.S. Tariffs on some Japanese electronic goods, the minister of international trade and industry, Hajime Tamura, said in a statement. Japan requested bilateral consultations in accordance with Article 23-1 of the General Agreement on Tariffs and Trade (GATT) in Washington yesterday. Tamura said there was deep regret over the U.S. Measures, which will impose 100 pct tariffs on about 300 mln dlrs worth of Japanese imports of some small computers, colour television sets and power tools.

The Securities and Exchange Commission reminded securities dealers that its mark-up disclosure requirements also applies to transactions on zero-coupon securities. Dealers and brokers are required by U.S. securities law to disclose their mark-ups if they are excessive, the SEC said in a public notice. Further, excessive mark-ups on securities transactions, whether disclosed or not, violate the rules of the national Association of Securities Dealers Inc and Municipal Securities Rulemaking Board, it said. In a separate action, the SEC filed a friend-of-the-court brief in a private civil case involving a complaint against Merrill Lynch over excessive mark-ups on zero-coupon bonds. The case is being appealed to the U.S. Appeals Court. The lower court dismissed the complaint, finding antifraud provisions of securities laws do not prohibit undisclosed excessive mark-ups on securities transactions. The SEC is urging the appeals court to reverse the decision, citing its nearly 50 year-old position that undisclosed excessive mark-ups by securities dealers violate the general antifraud provisions of securities laws.

Qtr ended April four Shr profit eight cts vs loss 22 cts Net profit 341,000 vs loss 903,000 Revs 58.4 mln vs 46.3 mln Six mths Shr profit 35 cts vs loss 19 cts Net profit 1,466,000 vs loss 767,000 Revs 121.4 ln vs 95.9 mln

U.S. banking data released today are too distorted to draw sweeping conclusions about monetary policy, but they do support the market's assumption that the Federal Reserve has started to tighten its grip on credit, economists said. "It's clear that the Fed has firmed somewhat. Discount window borrowings, net free reserves, the Fed funds rate average and the pattern of reserve additions are all consistent with a modest tightening," said Dana Johnson of First Chicago Corp. Johnson, and several other economists, now estimate that the Fed funds rate should trade between 6-1/4 and 6-3/8 pct. Discount window borrowings in the week to Wednesday were 935 mln dlrs a day, producing a daily average for the two-week statement period of 689 mln dlrs, the highest since the week of December 31, 1986, and up from 393 mln dlrs previously. Moreover, banks were forced to borrow a huge 5.2 billion dlrs from the Fed on Wednesday - the highest daily total this year - even though unexpectedly low Treasury balances at the Fed that day left banks with over two billion dlrs more in reserves than the Fed had anticipated. However, economists said it is almost certain that the Fed is aiming for much lower discount window borrowings than witnessed this week. They pointed to two factors that may have forced banks to scramble for reserves at the end of the week. First, economists now expect M-1 money supply for the week ended April 29 to rise by a staggering 15 to 20 billion dlrs, partly reflecting the parking in checking accounts of the proceeds from stock market sales and mutual fund redemptions to pay annual income taxes. As banks' checking-account liabilities rise, so do the reserves that they are required to hold on deposit at the Fed. Required reserves did indeed rise sharply by 2.5 billion dlrs a day in the two weeks ended Wednesday, but economists said the Fed may not have believed in the magnitude of the projected M-1 surge until late in the week and so started to add reserves too late. Second, an apparent shortage of Treasury bills apparently left Wall Street dealers with too little collateral with which to enagage in repurchase agreements with the Fed, economists said. Thus, although there were 10.3 billion dlrs of repos outstanding on Wednesday night, the Fed may have wanted to add even more reserves but was prevented from doing so. "It's not at all inconceivable that the Fed didn't add as much as they wanted to because of the shortage of collateral," said Ward McCarthy of Merrill Lynch Economics Inc. McCarthy estimated that the Fed is now targetting discount-window borrowings of about 400 mln dlrs a day, equivalent to a Fed funds rate of around 6-3/8 pct. After citing the reasons why the Fed probably has not tightened credit to the degree suggested by the data, economists said the fact that the Fed delayed arranging overnight injections of reserves until the last day of the statement period was a good sign of a more restrictive policy. Jeffrey Leeds of Chemical Bank had not been convinced that the Fed was tightening policy. But after reviewing today's figures, he said, "It's fair to say that the Fed may be moving toward a slightly less accommodative reserve posture." Leeds expects Fed funds to trade between 6-1/4 and 6-3/8 pct and said the Fed is unlikely to raise the discount rate unless the dollar's fall gathers pace. Johnson at First Chicago agreed, citing political opposition in Washington to a dollar-defense package at a time when Congress sees further dollar depreciation as the key to reducing the U.S. trade surplus with Japan.

Finance Minister Kiichi Miyazawa said Japan has no plans to take new emergency measures to support the dollar, other than foreign exchange intervention. He also told reporters that many major nations yesterday intervened heavily to support the dollar against the yen. Yesterday's intervention was large in terms of the countries involved and the amounts expended, he said. With the continued fall of the dollar against the yen, 0speculation had arisen in currency markets here that Japan might take new measures to support the U.S. Currency, such as curbing capital outflows. Miyazawa said that yesterday's news of a 4.3 pct rise in U.S. Gnp in the first quarter had been expected. Although the growth looks robust on the surface, the figures in reality are not that good, he said. He said the ruling Liberal Democratic Party (LDP) is expected to come up with a final set of recommendations of ways to stimulate the Japanese economy before Prime Minister Yasuhiro Nakasone leaves for Washington next week. Commenting on yesterday's report on economic restructuring by a high-level advisory panel to Nakasone, Miyazawa said it was important to put the panel's recommendations into effect.

The Bank of Japan does not intend to ease credit policy further, bank officials told Reuters. They were responding to rumours in the Japanese bond market that the central bank was planning to cut its 2.5 pct discount rate soon, possibly before Prime Minister Yasuhiro Nakasone leaves for Washington on April 29. Bank of Japan governor Satoshi Sumita will be in Osaka, western Japan on April 27 and 28 for the annual meeting of the Asian Development Bank, making a rate cut announcement early next week a virtual impossibility, they said. April 29 is a holiday here.

Iranian foreign minister Ali Akbar Velayati warned that Iran would combat any superpower intervention in the Gulf. "Iran, which is the most powerful (country) in the Gulf... Will not allow the superpowers or any other foreign forces to interfere in the region," he said. Velayati, visiting the United Arab Emirates on the first leg of a Gulf tour, told reporters Iran had the "capabilities and means" to prevent any interference. President Reagan has pledged to keep the Gulf sealanes open and to protect Kuwaiti tankers from possible Iranian attack.

The south China province of Guangdong is importing millions of tonnes of grain a year from overseas and other parts of China because farmers have switched from grain to more profitable crops, the Peking Review magazine said. The official magazine said the province's grain area fell to 4.33 mln hectares in 1985 from 5.7 mln in 1978 out of a total farmland area of 7.4 mln hectares. Farmers have switched to cash crops such as sugarcane, bananas, oranges, papaya and freshwater fish-farming, in part to supply major consumer markets in Hong Kong and Macao, the magazine said. It gave no 1986 area figures. The magazine said China aims to keep 80 pct of national farmland under grain, 10 pct under cash crops and 10 pct under other crops, although the ratio will vary from place to place. It said primitive cultivation methods, labour-intensity and low productivity make grain the least profitable farm commodity. Farmers in one central region of China can from 0.1 hectare earn 2,250 yuan a year from vegetables, 375-450 yuan from cotton or 225 yuan from grain, it added. It said consumer prices for foodgrain can be adjusted only gradually as part of a reform of the entire pricing system.

Any Iranian attack on Soviet ships in the Gulf will bring a forceful and violent response, a Soviet foreign ministry official said in an interview published here. Alexander Ivanov, head of the Gulf desk at the Soviet Foreign Ministry, told Al-Rai al-Aam newspaper Moscow "will answer back with force and violence if Iran attempts to attack any Soviet ship or tanker in the Gulf." A Soviet tanker hit a mine in the Gulf last month. Ivanov also accused the United States of stepping up the regional crisis and of failing to exert genuine efforts to end the Iran-Iraq war.

The Kuwait Central Bank kept its window for funds to the domestic interbank deposit market shut as banks returned from a four day holiday, dealers said. The move drove short-term interest rates sharply higher, with overnight and tomorrow-next funds more than doubling from last Wednesday and hitting 20 pct. There were few offers in a tight market and traders scrambled for any available funds. One-month to one-year deposits were indicated one point higher at eight, seven pct but there was little activity at the longer end of the market. Bankers see the suspension of central bank aid as a deliberate move to drive up Kuwaiti dinar interest rates and stem a flow of funds out of the country, where market nervousness is increasing over the growing tension in the Gulf. The central bank's move has been combined with a steady cut in the dinar exchange rate. Today's rate was reduced to 0.27939/73 to the dollar from 0.27758/92 on Wednesday before the four day bank holiday that celebrated the end of the fasting month of Ramadan.

First City Industries Inc said it has reached a definitive agreement to sell its Nuton and Yale security subsidiaries to Valor PLC for 400 mln dlrs and warrants to purchase two mln Valor ordinary shares. In addition, the company said it will recieve a special dividend of 60 mln dlrs from Nutone and Yale and it has agreed to buy 35 mln dlrs of Valor convertible preference shares. First City said it is seeking to increase shareholder values by improving and realizing the values inherent in its operating subsidiaries. The company said the transaction is subject to approval by shareholders of Valor and is expected to be completed within 40 days. It said Valor has arranged financing through an issue of ordinary and convertible preference shares underwritten by Hoare Govette Ltd and Barclays de Zoete Wedd Ltd. Nutone makes built-in electric products for the housing market and Yale makes door locks and electronic security products. Valor makes home products.

National Security Insurance Co said a group of investors has acquired 226,243 common shares, or a 22.2 pct, interest, for 27.50 dlrs per share. The company said the acquisition of the portion of the shares over a five pct interest is subject to approval by the Alabama Department of Insurance. It said the sellers included Atlantic American Corp , Bankers Fidelity Life Insurance Co and Georgia Casualty Insurance Co.

The Panamanian liquified gas carrier Nyhammer, 48,772 dwt, was attacked by an Iranian gunboat on May 24, Lloyds Shipping Intelligence said. One rocket was fired but missed. The vessel subsequently arrived at its destination of Ras Tanura on May 25 and left this morning.

Boeing Co and ARGOSystems Inc said they reached an agreement for Boeing to acquire the Sunnyvale, Calif., defense electronics firm for about 275 mln dlrs. The boards of both companies have approved the merger, which will be accomplished through a tender offer by a Boeing subsidiary of 37 dlrs a share cash for all of ARGOSystems' shares, the companies said. Under the agreement, the Boeing subsidiary, TBC Holdings Corp, will begin the tender offer promptly. If at least 90 pct of the shares are not tendered, the offer will be prorated to 49 pct, the companies said. ARGOSystems has granted Boeing an option to buy 1,238,311 shares or 18.5 pct of the outstanding stock for 37 dlrs a share, they said. Also, Bill May, chairman of ARGOSystems, and three other officers have granted Boeing an option to buy their shares, another 8.9 pct of the outstanding stock, for 37 dlrs a share. ARGOSystems makes equipment to monitor and analyze military communications signals, electronic warfare equipment to monitor and jam radar signals and signal processing systems. For the nine months ended March 31, 1987, ARGOSystems reported earnings more than doubled to 6.3 mln dlrs or 95 cts a share from 3.1 mln dlrs or 46 cts. The year-ago period included a 2.2 mln dlr charge from a writedown of securities. Sales rose 23.5 pct to 70.9 mln dlrs. Sales are expected to exceed 100 mln dlrs for the fiscal year ending June 30, the companies said in a joint statement. The company's backlog is currently more than 180 mln dlrs, they said. It has about 1,200 employees. About 30 pct of ARGOSystems' business comes from international customers. "ARGOSystems is a clear leader in its field. This association will expand our overall activities and significantly enhance our ability to compete in the defense electronics area," Boeing president Frank Shrontz said in a statement. ARGOSystems will operate as a wholly owned subsidiary of Boeing Co. The merger following the tender offer will be subject to approval by ARGOSystems shareholders, the companies said. The tender offer and merger are subject to customary conditions and expiration of the Hart-Scott-Rodino notification waiting period, they said.

Saudi Arabia's renegotiation of its collective agreement with Aramco to purchase oil for the latter's ex-partners is moving along and should lead to a fundamental structural change in the contract, oil industry sources said. Petroleum Intelligence Weekly, in this Monday's edition, said negotiations are moving along for adjustment of the 1.34 mln bpd joint long term agreement at official prices and volumes and other terms may be rearranged. The agreement signed in January for the months from February to June is up for renegotiation. Under the January contract Aramco was to purchase 1.34 mln bpd for the four partners allocated among them as Exxon Corp 440,000 bpd, Texaco Inc 350,000 bpd, Mobil Corp and Chevron Corp 550,000 bpd between them. But an overlifting by Texaco Inc in the first quarter allowed other companies like Exxon Corp to underlift its obligations under the contract PIW said that that one alternative under consideration is to revert to four individual contracts rather than a collective agrement. John Lichtblau, director of the Petroleum Industry Research Foundation Inc said that renegotiation of the pact was more of a formality as the Saudis have each company on a separate schedule although separate agreements with the companies would favor one on one negotiations and ensure that contracted liftings occur . "The companies will probably follow the Saudi wants within limits as they do not want to antagonize them for the long haul," he said. Lichtblau said that the renegotiations would most likely concentrate on volume rather than price. Saudi displeasure with the agreement has long been noted and in April industry publications said that renegotiation were being sought, a fact later confirmed by Reuters with Aramco. Aramco Corp was formerly owned by Chevron Corp , Exxon Corp , Mobil Corp and Texaco Inc but is now owned by Saudi Arabia which bought its assets although the ex-partners have various agreements with Saudi Arabia.

Colt Industries Inc said it signed a conditional agreement to sell its Woodville Polymer Engineering Ltd subsidiary in Great Britain to the Dowty Group PLC of Gloucestershire, England, for 35.9 mln stg. The deal is scheduled to close by the end of June, the company said. Woodville, which makes high technology precision products for aerospace, automotive and other industries, had 1986 sales of about 24 mln stg, it said.

Norway is expected to seek a compromise solution to defuse a row between Den Norske Stats Oljeselskap A/S (Statoil) and Conoco Norge A/S over which firm will operate the Heidrun oil field, government sources said. The sources, who asked not to be named, said the government will likely recommend that Conoco be allowed to continue as the field's operator through the development phase, with Statoil taking over only after production starts in the early 1990s. Oil Minister Arne Oeien told Reuters the government had today discused the Heidrun matter but that no final decision had been taken and several questions remained unresolved. It was unlikely the government would announce its decision on Heidrun operatorship until after Thursday's cabinet meeting and after discussing a proposed solution with both companies, the sources added. This spring Norway's state-owned oil company Statoil exercised an option in the Heidrun field exploration license that, if approved by the government, would allow it to relieve Conoco as Heidrun operator, a move sharply criticised by Conoco. Heidrun is often cited by the government and industry as the most likely candidate for the first field development project on the Haltenbanken exploration tract off central Norway.

Northgate Exploration Ltd said hourly-paid workers at its two Chibougamau, Quebec, mines voted on the weekend to accept a three-year contract offer and returned to work today after a one-month strike. It said the workers, represented by United Steelworkers of America, would receive a 1.21-dlr-an-hour pay raise over the life of the new contract and improved benefits. Northgate, which produced 23,400 ounces of gold in first quarter, said that while the strike slowed production, "We are still looking forward to a very satisfactory performance." The Chibougamau mines produced 81,500 ounces of gold last year.

Unemployment in Portugal held steady at 9.6 pct in the first quarter of 1987 after the same rate in the last quarter of 1986, the National Statistics Institute said. This compared with 11.1 pct unemployment in the first quarter of 1986. The total number of registered unemployed in the first quarter of this year was 437,500.

The U.S. drilling rig count fell by four last week to a total of 758, against 723 working rigs at this time last year, Baker Hughes Inc said. In Canada, the weekly rig count rose 19 to 100, compared to 46 working rigs last year. Among individual states, the steepest declines were in Oklahoma and Louisiana which lost eight and seven, respectively. Drilling increases were reported by Michigan, up by five rigs, and Ohio and Pennsylvania which each rose by three. Baker Hughes said the total of 758 working rigs in the United States included 84 rigs working in offshore waters.

Semicon Tools Inc said it has signed a letter of intent to acquire a majority interest in privately held East Coast Sales, a distributor and fabricator of technical ceramic products and disposable clean room materials and supplies. Terms were not disclosed. It said it expects to acquisition to result in a substantial sales increase.

U.S. Video Vending Corp said it completed acquiring First National Telecommunications INc from First National Entertainment Corp for about 10 mln, or a controlling interest of U.S. Video Vending shares. Pursuant to the transaction, Harvey Seslowsky and William Hodes resigned from U.S. Video's board and were replaced by four members of First National.

The elimination of limits on daily price fluctuations for metals futures contracts traded on the Commodity Exchange, COMEX, appears to be having little effect on the market, analysts said. "There is nothing apparent from the change," said William O'Neill, director of futures research at Elders Futures Inc. "The market has not approached the old price limits and trading is relative quiet, in narrow ranges," he said. On May 5, COMEX eliminated price limits on the two contracts following each spot delivery in gold, silver, copper and aluminum futures after a review of its clearing operations, which were severely tested by a volatile market in silver futures at the end of April. COMEX announced Friday the lifting of all daily limits, effective today. Gold futures, which previously had a limit of 25 dlrs per ounce in most back months, were about 7.00 dlrs weaker in the nearby contracts amid thin volume conditions, traders said. Silver futures, previously limited at 50 cents in most back months, were trading about 30-40 cts weaker in the nearby contracts amid quiet trading today. During the last week of April, silver futures often traded at the daily allowable limit amid concerns about inflation, the dollar, and other factors. Traders rushed into the spot, or unlimited, contract to offset those moves, analysts said. As a result, O'Neill said, there was much confusion, many unmatched trades, and large losses for some traders. The COMEX fined four large firms a total of 100,000 dlrs for failure to resolve unmatched trades in a timely manner. Paul Cain, a vice president at Shearson Lehman Brothers, said the elimination of price limits will cut back on panic buying or selling and contribute to more orderly markets. O'Neill added that the elimination of daily limits would add caution to trading. "This is a more realistic approach because the metals market is a 24 hours market and prices can move without limit," O'Neill said.

Total Health Systems Inc said it has agreed to acquire CoMED Inc of Denville, N.J., a health maintenance organization with over 63,000 subscribers, for an undisclosed amount of cash, the assumption of liabilities and the provision of up to 10 mln dlrs in equity and debt financing. The company said the acquisition is subject to regulatory approvals. It said CoMED had 1986 revenues of 30.0 mln dlrs and earnings of 650,383 dlrs and had revenues for the first four months of 1987 of 13.6 mln dlrs, up 60 pct from a year before.

European free market tin traders made a somewhat muted response to plans for a Kuala Lumpur dollar-based tin futures market due to be launched in October. Traders said the new market would probably be a useful trading medium for Japan and other South East Asian tin interests although European traders generally appear to be reasonably satisfied with the current "free market" system which has been operating since London Metal Exchange, LME, tin trading ceased in October 1985. Dealers here will also want to see how acceptable foreign metal will be on the new market and what sort of demand develops for forward deliveries. There is also a view among European traders that, while the proposed Kuala Lumpur tin futures market would provide another useful reference point, a market inaugurated by the Malaysian government -- in the past viewed as a major player at times by the trade -- would make participants uncomfortable. Some traders expressed a preference for a resumption of trading on the London Metal Exchange, but they added that while there has been some behind the scenes discussion on the subject a definite move is unlikely until outstanding High Court litigation actions have been resolved. Spot tin prices on the European free market are currently around 4,200 stg per tonne for high grade metal in warehouse Rotterdam. Over the past 18 months the price moved to a ten year low of 3,400 stg in March 1986 and rebounded to as high as 4,680 stg in December 1986. This compares with 8,140 stg last paid when LME trading ceased in October 1985 and a record high tin price of 10,350 stg traded for Cash Standard Grade metal in June of that year. LME warehouse stocks are now near a two-year low at 28,065 tonnes, having fallen steadily from a record high of 72,485 tonnes reached in February 1986. Traders said the free market turned bullish during late last year based on producer forecasts of a supply/demand deficit of some 28,000/29,000 tonnes. Analysts were predicting prices of up to 5,000 stg per tonne during 1987. However, the trend was reversed following a strong upswing in sterling versus the dollar and values fell back briefly to 4,100 stg last month after approaching 4,700 stg in December. The decline accelerated as producers who had sold very little metal at the higher levels became competitive sellers. There was also a lack of significant demand from major steel mills who made large purchases prior to the new year. Traders say the 15 ITC creditor banks' original tin holdings of nearly 45,000 tonnes have now been almost halved, and the bulk of material still available is being held by Malaysian and Japanese firms which are reluctant to depress the market with unwanted metal. Some 80,000 tonnes were held by banks and brokers after the International Tin Council's, ITC, buffer stock manager halted support operations on the LME on behalf of the 22 members nations of the International Tin Agreement. The overhang of metal was reduced further by broker Shearson Lehman Brothers, which earlier this year reported having sold its ITC-related holdings and halved its overall tin position. Analysts see no immediate sign of a rally in European tin prices and movements are still expected to be largely related to currency fluctuations, unless significant consumer demand emerges for the third quarter. The Association of Tin Producing Countries, ATPC, has made efforts since the collapse of the ITA to achieve higher world prices by attempting to bring all major producers under an export control umbrella, but to date Brazil and China, two major producers, remain unaffected by the ATPC argument and apparently are continuing to offer material at discounts to consumers in main European trading centres, dealers said.

Co-operative Bancorp said it completed the acquisition of all the issued and outstanding stock of the Quincy Co-operative Bank . Under the agreement, Quincy stockholders will receive 30 dlrs cash for each share owned of the Quincy Co-operative Bank, for a total transaction of approximately 50 mln dlrs, Co-operative said.

Uni Marts Inc said it acquired seven convenience stores for an undisclosed amount of cash. The acquisition bring to 228 the number of convenience stores owned by Uni-Marts, the company said.

President Reagan said he would discuss the Mideast Gulf situation with allied leaders at next week's Venice economic summit and hinted he would seek their help in preserving free navigation. In a speech prepared for delivery as the United States made plans to protect 11 Kuwaiti oil tankers from Iranian attack, Reagan said the American people were aware that "it is not our interests alone that are being protected." Saying that allied dependence on gulf oil was no secret, Reagan declared, "During the upcoming summit in Venice, we will be discussing the common security interests shared by the western democracies in the MIDEAST Gulf. "The future belongs to the brave. Free men should not cower before such challenges, and they should not expect to stand alone." Reagan will meet the leaders of Britain, France, West Germany, Italy, Canada and Japan at the economic summit, which will take place in Venice June 8-10. The 13th annual top-level meeting of the major industrial democracies will take place against a backdrop of rising congressional concern over Reagan's plan to protect gulf shipping and demands that the allies do more. These concerns were heightened by the May 17 Iraqi missile attack on the U.S. frigate Stark which killed 37 seamen. "They died while guarding a chokepoint of freedom, deterring aggression and reaffirming America's willingness to protect its vital interests," Reagan said. In a pre-summit speech celebrating the 40th anniversary of the Marshall Plan, Reagan, who spoke to an audience of foreign affairs experts, also pledged to push for economic expansion by West Germany and Japan to bolster the world trading system. "While the vibrancy of the U.S. economy has contributed enormously to the world expansion, preserving a growing world economy is the business of every member of the world trading community," he said. "It will be made clear, especially to our friends in Japan and the Federal Republic of Germany, that growth-oriented domestic policies are needed to bolster the world trading system on which they depend." Reagan coupled this appeal with a call for compliance with allied accords on exchange rate stability. "Economic policy decisions made last year in Tokyo and at this year's meetings of Group of Seven finance ministers in Paris and in Washington cannot be ignored or forgotten," he said. "The commitments made at these meetings need to be translated into action."

The investor group that has agreed to buy will likely take the leading personal computer retailer public or sell it to other investors, industry analysts said. "Now's a good time," said Joe Levy of International Data Corp. "The personal computer industry has bottomed out and is on the way up again," he said. Earlier today, closely held Computerland, the largest PC retailing chain in the country, said it agreed to be bought by an investor group led by E.M. Warburg Pincus and Co, New York. Neither Computerland, which is 96 pct owned by its founder, William H. Millard, nor E.M. Warburg, a money management and venture capital firm, would disclose the value of the transaction. Analysts estimated that Computerland, whose 800 stores generated 1.4 billion dlrs in sales last year, would fetch 150 mln dlrs to 250 mln dlrs. Computerland franchise owners pay royalties averaging 5.9 pct to the parent company. Officials for E.M. Warburg referred all questions to Computerland. Computerland officials could not immediately be reached for comment. E.M. Warburg currently manages 1.5 billion dlrs in venture capital funds, and its past investments have included Mattel Inc and the Ingersoll newspaper chain. It is also a money manager, with 3.5 billion dlrs under management. Although the PC retailers are benefitting from the strong upturn in PC sales, analysts said Computerland must make key changes if it is to fend off advances from rivals like Businessland Inc and Tandy Corp's Radio Shack stores. "The name of the game now is outbound sales forces, customer service and customer support," said Levy of International Data. Relations between Computerland and its franchise owners have mellowed recently after Millard was forced to give up managment control of the company in 1985. Ed Faber, who took over as chairman and chief executive officer, revamped the company's royalty plan, which help quell much of the franchisee dissent.

Waste Management Inc said its directors approved a May 10 accord with Modulaire Industries under which Waste Management would acquire Modulaire. Under the agreement, Modulaire stockholders would receive 16 dlrs in Waste Management stock for each Modulaire share. Modulaire has scheduled a special shareholders meeting for July 15 to vote on the merger. Waste Management said it has received proxies from holders of 49.6 pct of Modulaire's common stock that could be voted in favor of the merger. The Hart-Scott-Roding waiting period on the takeover will expire June 17.

Holders of convertible subordinated debentures of Harcourt Brace Jovanovich Inc threatened to sue the company if they do not get more information about how their investment will be affected by the company's proposed recapitalization plan. The holders, none of whom was willing to be identified, said although Harcourt has urged that they convert their shares to common stock by the June eight record date for a special dividend, they were unable to determine if it might be better for them to continue holding the debentures. "There are rumors that various houses will bring litigation if we don't get answers," said a Wall Street source. Officials of Harcourt declined to comment, citing a suit brought by British publisher Robert Maxwell whose has been trying to acquire Harcourt. Executives of First Boston Inc, Harcourt's financial adviser, did not return a telephone call seeking comment. When it announced its recapitalization May 26 Harcourt advised holders of the 6-3/8 pct convertible subordinated debentures due 2011 to convert into common by the June eight record date for the company's special dividend. Harcourt's special dividend pays 40 dlrs per share in cash plus a security worth 10 dlrs. Holders would also retain stock in the recapitalized firm. The debentures had been convertible at 34 dlrs per share. Harcourt's May 26 announcement said the conversion price would be adjusted according to the indenture covering the securities. Arbitrageurs said the conversion formula yielded a "negative number" and thus they needed further information from the company.

Esso Singapore Pte Ltd said it raised pump prices of petrol from today. New prices for 0.15 gm lead grades are 97.0 cents/litre for 97 octane and 90.8 cents for 95 octane. Other Singapore oil companies announced yesterday that they would revise their pump prices effective today. Shell Eastern Petroleum Pte Ltd, Mobil Oil Singapore Pte Ltd, Caltex Asia Ltd, Singapore Petroleum Co Pte Ltd and BP Singapore Pte Ltd are pricing 97 octane at 96.8 cents. Shell, Mobil and Caltex are pricing 92 octane at 90.2 cents, and SPC and BP at 90.6 cents.

Japan was ready to use diplomacy to help maintain the security of the Gulf, Prime Minister Yasuhiro Nakasone said. But he told reporters Japan should not cut its lines of communication with Iran and Iraq because its policy was to take a broad political stance. Officials of the foreign ministry said Japan had maintained good relations with both Iran and Iraq, which have been at war since September 1980. Last week Nakasone ruled out Japanese military or financial help to patrol the waters of the Gulf. About 60 pct of Japan's crude oil passes through the waterway. President Reagan said yesterday the threat to oil routes in the Gulf from attacks by Iran and Iraq was high on the agenda for next week's G-7 summit in Venice. Reagan has approved plans for the United States to step up its naval presence in the Gulf despite congressional expressions of concern and he has called on U.S. Allies to help maintain freedom of navigation. Japan's constitution prevents its armed forces from being deployed overseas. Nakasone has said that Washington understands this problem.

Kuwait, a target of Iranian anger over the emirate's backing for Iraq in the Gulf war, today rejected charges that fishing vessels seized recently by Iran were spy boats. "There are no bases of truth to the contents of the Iranian accusation on the nature of the operations of the vessels recently taken into custody by Iran. These vessels were out fishing," the Foreign Ministry said in a statement. It said Iranian Charge d'Affaires Mohammad Baqeri was summoned by the Ministry yesterday to confer with Foreign Undersecretary Suleiman Majed al-Shaheen. The Iranian News Agency IRNA said on Sunday Iran had seized seven Kuwaiti speed boats and detained their crew, who confessed to spying for Iraq under the cover of fishing. It said the boats were intercepted in the Khur Abdullah waterway which separates Kuwait and Iraq's Faw peninsula at the head of the Gulf, captured by Iran last year. The Kuwaiti response came as Iranian envoys toured Gulf Arab states saying responsibility for security and stability in the waterway was a regional matter. A U.S. Senate team was scheduled today to meet Kuwait's Crown Prince and Prime Minister Sheikh Saad al-Abdulla al-Sabah and the defence and oil ministers. Today's Foreign Ministry statement, carried by the Kuwait News Agency KUNA, said the recent detention of Kuwaiti fishing vessels by Iran was not the first. Tehran in the past had held back a number of vessels Kuwait had sought to release through diplomatic contacts, it said. "However, Kuwait is perplexed that this time the Iranian charges are accompanied by accusations that the vessels were undertaking espionage activities," it said. Shaheen condemned the detentions and accusations, and asked Tehran to free all fishing boats and sailors held by Iran, the statement said.

Britain's gold and currency reserves rose a record underlying 4.76 billion dlrs in May, following April's 2.9 billion dlrs increase, the Treasury said. The underlying trend indicates the level of recent Bank of England intervention on currency markets to curb sterling's strength. It was above market expectations which had been for a rise of between one billion and three billion dlrs. The Treasury declined comment on the figures. Actual reserves rose 4.87 billion dlrs in May, compared with April's 2.8 billion increase, to a total value of 34.68 billion dlrs, compared with 29.81 billion at the end of April. Borrowings under the exchange cover scheme were 238 mln dlrs, against April's 66 mln. Repayments under the scheme were 85 mln dlrs, after 90 mln previously, with capital repayments of eight mln, after three mln last month. Repayments of government debt amounted to 33 mln dlrs. The underlying reserves increase is net of borrowings and repayments. It was larger than the previous record 3.04 billion dlrs rise seen in October 1977. The May increase represents the seventh monthly rise, with reserves up 9.947 billion dlrs in that period, and up 9.816 billion since the start of 1987.

The French ship Capitaine Wallis, 13,847 dwt, berthed at the port of Geelong in Victoria today to load 8,000 tonnes of urgently needed wheat for Fiji after Australian port unions partly lifted a trade embargo, shipping sources said. The wheat is expected to be loaded tomorrow, an Australian Wheat Board spokesman said.

Dumez Investments Inc said it is accepting and paying for 478,125 shares of United Westburne Industries Ltd in response to its 25 dlr per share tender offer and it has extended the offer until June 26. Dumez, 70 pct owned by Dumez SA and 30 pct by Unicorp Canada Corp , said the 478,125 shares represent 81.6 pct of those not controlled by Westburne International Ltd, which Dumez previously acquired in a tender.

Saudi Arabia's Oil Minister Hisham Nazer said Riyadh would not agree to a cut in oil prices and would not accept a "mad" increase that would drive consumers away. He told al-Riyadh newspaper, "Saudi Arabia follows a balanced petroleum policy. It does not approve of a decrease in prices from current levels and it also does not accept a mad increase that would drive consumers away and make them try and find alternative sources (for energy)." OPEC agreed last December to cut production after world prices hit new lows in 1986. They agreed on a pricing system aimed to stabilize the market around 18 dlrs a barrel. OPEC is scheduled to meet in Vienna on June 25, where it will review its current oil price and production policy. Saudi Arabia's King Fahd said last month that he wanted oil prices to remain stable for the next two years. Saudi Arabia is the architect of the current pricing and production pact, which is backed by Kuwait and the UAE. The current pact set a production ceiling for first half 1987 of 15.8 mln bpd, and implemented fixed prices based on an 18 dlrs a barrel average.

The record 4.9 billion dlrs rise in U.K. Reserves in May to a total 34.7 billion has lifted hopes for a further cut in bank base lending rates after the June 11 general election, market analysts said. Sterling would have risen on the much better than expected number but for market nerves about the poll outcome, they said. But the weight of foreign currency and gold reserves now available to the authorities to support the pound should curb any market tendency to panic if U.K. Opinion polls show the ruling Conservative Party's lead slipping, they added. "We have been intervening to a very much greater extent than we have done hitherto," Chancellor of the Exchequer Nigel Lawson said at a news conference today, commenting on the news of the record reserves rise. He put the U.K. Intervention in the context of the Louvre accord between leading industrial nations to stabilise the dollar, partly through direct intervention on foreign exchanges. "We have been playing a very full part ourselves," he said. But market analysts see the recent upward pressure on sterling, and consequent need for official sales to damp down its rise, more in the light of local factors. Steven Bell, chief economist at Morgan Grenfell Securities, said that corporate money has been flowing back into Britain amid hopes of another Conservative government, after fears last autumn of a Labour election victory sent it flooding out. U.K. Portfolio investment is also returning, while foreign buyers see U.K. Growth propects and high bond yields as attractive. They will be strong buyers of U.K. Assets, notably equities, once the election is out of the way, Bell said. Analysts see this pressure as the main hope for lower interest rates, as the government is expected to try to reverse the loss of export competitiveness caused by a strong pound. Today, however, the pound hardly moved on the reserves news, dipping on its trade-weighted index against a basket of currencies from 73.1 pct of its 1975 value at 1000 GMT to 73.0 pct at 1100 GMT, half an hour after the figures were released. "The market doesn't want to do anything because of the election," commented an economist at a big U.S. Investment bank. Several dealers and analysts added that market forecasts of a rise in reserves of between one and three billion dlrs had overestimated the amount of pound sales that were likely to have been disguised by swap arrangements or transactions on the forward market. The market also seemed to have overestimated the amount of sterling the Bank of England bought at the end of May to smooth the pound's sudden downturn, while some of the intervention reported in May probably occurred in April, they said. The key three months interbank money market rates eased about 1/8 point, reflecting cautious hopes that the downtrend in U.K. Interest rates will be revived following the reserves news, analysts said. Government bond prices initially firmed, but the market was muted as traders worried about the funding implications of another huge rise in reserves, they added. Morgan Grenfell's Bell forecast a half point base rate cut from the current nine pct level soon after the election, so long as poll projections of another Conservative victory prove accurate, with another half point later. Justin Silverton, equity economist at Credit Suisse Buckmaster and Moore, said a full point reduction might be possible. "Sterling will be held down by interest rate cuts in future, rather than this active intervention," he predicted. Kevin Boakes of Greenwell Montagu Gilt-Edged cautioned against over-optimistic forecasts, but agreed a half point cut looked likely. A cut before the election has been virtually ruled out. "The Bank (of England) is both worried about the political problem of cutting rates during an election campaign ... And has signalled some worry about broad money (growth)," said Robin Marshall, chief U.K. Economist at Chase Manhattan Securities. He said the 10 billion dlrs increase in total reserves in the past seven months may foreshadow full U.K. Entry into the European Monetary System. But Bell said the authorities would like to see another 10 or 15 billion dlrs in the reserves before joining, if they did so. But, unlike many analysts, he doubted the U.K. Will go in.

1st qtr Shr seven cts vs nine cts Net 166,000 vs 201,000 Revs 801,000 vs 687,000

Sri Lanka today ordered its armed forces to defend the island's territorial waters as India prepared to send a flotilla with relief supplies that Colombo says it does not want for the Tamils in the Jaffna peninsula. The sudden crisis between Sri Lanka and its giant neighbour deepened as Prime Minister Ranasinghe Premadasa told parliament: "We have our territorial limits and nobody can be allowed to trespass there ... "President (Junius) Jayewardene has ordered the army, navy and air force to protect the island and its territorial waters," Premadasa said to a round of applause from the house. In New Delhi an Indian spokesman said the plan to send a flotilla of 20 small unarmed boats with Red Cross supplies to Jaffna tomorrow would go ahead despite Colombo's objections. The confrontation was the latest result of the long and bitter conflict between Sri Lanka's Buddhist Sinhalese majority and the Hindu Tamil minority, which has strong ethnic and cultural links with India's 50 mln Tamils.

The Louvre agreement by the Group of Seven finance ministers and central bankers to stabilise currencies has worked well and needs no fundamental strengthening at the economic summit in Venice on June 8-10, U.K. Chancellor of the Exchequer Nigel Lawson said. Previewing the summit, which he expected would not produce any major new economic initiatives, Lawson told reporters work remained to be done on improving the conditions for lasting world economic growth.üside measures to boost growth, he said. "I think it is possible that there may be scope for a further reduction in interest rates in Germany," he added, but stressed that he had had no indication that such a move was likely. He made no mention of Japanese interest rates. Lawson said the U.S. Should embark on "a gradual reduction of its fiscal deficits over the next two or three years." He said the February 22 Louvre accord had produced "satisfactory exchange rate stability," in part thanks to heavy coordinated intervention of Group of Seven central banks, and he was "content" with sterling's exchange rate. Pointing to the record 4.8 billion stg rise in U.K. May currency reserves announced today he said, "we have been playing a very full part ourselves ... We have been intervening to a very much greater extent than we had done hitherto." Lawson said there was a risk that the Louvre agreement may falter if member states did not implement the macro-economic commitments underlying the accord. "Certainly it would be more difficult to maintain exchange rate stability if countries are seen not to implement their commitments in Paris ... In this respect." He said the U.S. Budget deficit was "very important." Noting the 6,000 billion yen economic package announced by Japanese Prime Minister Yasuhiro Nakasone last week Lawson said, "what is really needed in Japan is an increase in merchandise imports. Supply side measures are critical." "There is a specific range of consumer and agricultural goods where they have an extremely restrictive regime which is wholly unjustified," he said. Lawson doubted that Tokyo's partners would indulge in "Japan bashing" at the summit especially after the economic stimulation package and the announcement of Nakasone's plans to increase Japanese development aid over the next three years. Japan's more flexible stance on Tokyo stock exchange membership would also help deflect criticism, he said. He said he thought West Germany would instead come under pressure at the summit to adopt similar stimulation measures to jack up faltering economic growth. In this respect Lawson said he hoped Bonn would bring forward to January 1988 part of its agreed package of tax cuts scheduled for 1990. He also called on Bonn to push ahead with the privatisation of German national industries. On debt, Lawson said he expected a three point British plan to alleviate the burden of the poorest sub-saharan countries to make progress in Venice. The plan, involving concessional rescheduling of sovereign debt in the Paris Club, was first proposed at the IMF and World Bank meetings in Washington earlier this year. Lawson said he would seek "to consolidate political backing for the plan at the Venice summit" and hoped the programme would be finalised at the Autumn meetings of the IMF and World Bank. He welcomed the recent moves by Citicorp and Chase Manhattan to increase sharply their Third World debt provisions. "First, it is a blow for realism. Second, because the market response has shown that banks have much less to fear from this sort of move than they felt before Citicorp," he said. U.K. Banks should follow Bank of England recommendations, strengthening their balance sheets and making more provisions. "They have done it to some extent, they need to do it more," Lawson said, adding it was up to the banks themselves to determine the appropriate size of provisions. He also said the dismantling of farm subsidies would be discussed at the summit. "There is a consensus, which we have to push further."

The Federal Reserve is not expected to intervene in the government securities market to add or drain reserves at its usual intervention time this morning, economists said. With the Federal funds rate trading comfortably at 6-9/16 pct, down from yesterday's 6.74 pct average, economists said the Fed did not need to take reserve management action today.

The Far Eastern sugar market is being hit by a tightening in available nearby freight space needed to move raw sugar to various destinations, notably from Thailand, traders said. This has resulted in a hardening of freight rates in those areas. These are now being quoted between 12.5 and 17.5 dlrs a tonne per day, depending on shipment and destination, against recent fixings below 12 dlrs a tonne. Charterers are considering combining contracted shipments because of inadequate space, shipping sources said, noting 13 raws cargoes are awaiting shipment from various ports. A cargo of Thai raw sugar was reported traded at basis July New York futures less 25 points for June/July 15 shipment, traders said. But others said this was old business.

Spectra-Physics Inc said it is considering the possibility of recapitalizing, restructuring, or seeking a buyer for the company following its rejection of an unsolicitied 32 dlr a share bid from Ciba-Geigy Corp. In a filing with the Securities and Exchange Commission, the San Jose, Calif., gas lasers and accessories company also said its board Sunday agreed to a plan that gives 52 top executives bonuses ranging from 20 to 50 pct of their base salary if they stay with the company through August 29. In rejecting the takeover proposal by the U.S. subsidiary of Swiss-based Ciba-Geigy AG, the company said it was unfair. The Spectra-Physics board voted unanimously, with two Ciba-Geigy representatives not participating, to reject the Swiss-based chemical and pharmaceutical company's takeover bid, citing an opinion from its financial advsior, Morgan Stanley and Co Inc, that it is "inadequate and unfair from a financial point of view to the holders of shares," the company said. The board also authorized a special committee and Morgan Stanley to "vigorously investigate, pursue and authorize any alternatives which would maximize the value of shareholders' investment in the company," the company said. Among the alternatives the special committee will consider are a sale of the company to a third party for more than 32 dlrs a share, a recapitalization or restructuring, including self tender offers and/or asset dispositions through the use of dividends, Spectra-Physics said. The "retention plan" for the 52 top officers will pay an average bonus percentage of 28 pct of salary, it said. Spectra-Physics said its board approved the plan "in order to encourage key operating personnel to remain with the company during the period of turmoil and uncertainty engendered by the (Ciba-Geigy) offer." Under the plan, the executives would be entitled to their cash bonuses if they stay with the company through August 29, but could receive them earlier if they are fired for reasons other than gross and willful misconduct, or if they leave the company because their salaries have been sharply cut. Spectra-Physics also said it filed suit against Ciba-Geigy yesterday in U.S. District Court in Wilmington, Del., charging it with making a takeover bid that was false and misleading in violation of securities law and with violating the intent of July 9, 1985 standstill agreement. Spectra-Physics said Ciba-Geigy indicated at the time of the standstill agreement that it would not make an unsolicited takeover proposal for the company and that the intent of the agreement was that Ciba-Geigy would not acquire more than 20 pct of the company unless there was another takeover threat. Ciba-Geigy was 18.8 pct of Spectra-Physics and Reliance Group Holdings , which is controlled by New York investor Saul Steinberg, controls 12.8 pct. Spectra-Physics said the agreement prevents Ciba-Geigy from raising its stake beyond 20 pct through Jan 1, 1992, unless another person get more than 10 pct of its voting power.

Ball Corp said it completed the acquisition of privately held Verac Inc. Terms were not disclosed. The company said the San Diego-based defense systems and software development company had sales of about 23 mln dlrs in 1986 and will operate as part of Ball's technical products group.

qtr ended April 30 Shr seven cts vs 10 cts Net 158,294 vs 234,829 Revs 8,727,242 vs 8,152,478

Secretary of State George Shultz said today that a boost in allied forces in the Mideast Gulf was not vital to protect shipping against attack but that possible allied contributions should be examined. Asked if he saw the need for a greater military presence by the allies in the gulf, Shultz told reporters, "Not necessarily, particularly, so." But he said an adequate force was needed to deter attack and noted that the British and the French, as well as the United States, maintained naval contingents there. "We have to look at things that others might do," he said.

Overseas Shipholding Group Inc president Morton Hyman said if oil production by OPEC rises during the second half of 1987, freight rates for tankers should rise accordingly. Hyman, delivering a speech at the annual shareholders meeting, said international tanker markets were generally weak throughout the first quarter, but since the end of March OPEC oil production has picked up. The result has been a modest improvement in tanker rates. Overseas said 73 pct of its fleet handles liquid cargo. He said tanker requirements decreased in September 1986 as OPEC production quotas dropped and levels of oil stocks rose. For the first quarter 1987, the company reported net income of 10.3 mln dlrs, or 40 cts per share, compared to 9.3 mln dlrs, or 36 cts per share, for the comparable quarter a year ago. The company reported net income for 1986 of 37.3 mln dlrs, or 1.45 dlrs per share. "The improvement in the company's 1986 results, after four years of declining earnings, reflects a sharp, albeit temporary, rise in freight rates in the international tanker markets last summer," Hyman said. He said the Alaskan oil trade continues to be the principal source of employment for its U.S. flag tanker fleet, which represents approximately 15 pct of the company's tonnage. Overseas owns and operates 67 vessels.

The buffer stock manager of the International Cocoa Organization (ICCO) will tender for about 3,000 tonnes of cocoa beans Wednesday, June 3, the ICCO said in a statement. It said all other conditions remain unchanged from the previous announcement. These conditions are that offers from registered companies should be in pounds sterling for cocoa beans for which standard differentials have been set in the ICCO's buffer stock rules, and can be for cocoa afloat through to December shipment and spot to December arrival/delivery. The basis position will be afloat, May/July shipment or June arrival/delivery. For later positions the appropriate carrying costs will be taken into account. The deadline for the receipt of offers by the manager shall be 1330 hrs london time (1230 gmt) in the case of offers emanating from the secondhand market and 1400 hours in the case of offers emanating from the origins. The competitiveness of offers will be assessed by taking into account the standard differentials, the cost of taking cocoa into store (currently 23.00 pounds sterling from "cif landed" and 38.00 pounds sterling from "cif shipping weights" to "in store") and the cost of carry which currently is 12.00 pounds sterling per month, the ICCO said. No more than four offers will be considered from each offering party, it added.

A foreign investment group told the Securities and Exchange Commission it raised its stake in Scandinavia Fund Inc to 3,040,600 shares, or 46.6 pct of the total outstanding, from 2,829,300 shares, or 43.2 pct. The group, which includes Ingemar Rydin Industritillbehor AB, a Swedish firm, VBI Corp, a British West Indies investment firm, and Norwegian investor Erik Vik, said it bought 211,300 Scandinavia common shares since April 30 at prices ranging from 10.000 to 10.625 dlrs a share.

U.S. military forces in the Mideast Gulf are under orders to protect only American flag vessels and occasional U.S. arms deliveries on other ships to "non-belligerent" states in the area, the Pentagon said today. "No one has ever stated or supported a policy of protecting all shipping in those waters," Pentagon spokesman Bob Sims said as the Reagan Administration drew up plans to increase the protective U.S. military presence in the gulf. Sims denied published reports that U.S. Defense Secretary Caspar Weinberger sought air cover to protect all neutral shipping in the western gulf from attacks by Iran and Iraq. "As we have said repeatedly, only American flag vessels are under our protection with the exception, on a limited case-by-case basis, of ships carrying our Foreign Military Sales equipment to friendly, non-belligerent states in the region," Sims said. U.S. warships in the gulf two weeks ago protected a Kuwaiti ship which sailed to Bahrain with U.S. arms for Bahrain and Kuwait. But Sims said Washington had received assurances that the the arms would not be used elsewhere. He said Kuwait, which is turning 11 oil tankers over to U.S. firms to fly the American flag and be protected by the U.S. warships, is not considered a belligerent despite Iranian charges that Kuwait is supporting Iraq in the gulf war. Kuwaiti tankers have come under repeated Iranian attack. Sims refused to say how the United States will beef up its seven-ship Middle East Task Force in the gulf to protect the 11 Kuaiti tankers. But Pentagon officials said that additional ships and air cover are under consideration.

House Speaker Jim Wright predicted passage of legislation requiring the Reagan administration to provide Congress with a report on its Mideast Gulf policy, but a last-minute revolt by an alliance of liberals and conservatives left the bill's fate in doubt. The legislation was written in the wake of the May 17th Iraqi missile attack on the U.S. frigate Stark in the Gulf, which killed 37 Americans, and President Reagan's decision to protect 11 Kuwaiti oil tankers by putting them under U.S. flags -- effectively making them American ships. Since the administration made known its reflagging plans, congressional leaders complained they had not been consulted, and some charged the policy could lead the United States into the 6 1/2-year-old war between Iran and Iraq. The House was to vote today on a bill -- supported by the Democratic and Republican congressional leadership and the administration -- which demanded a report within seven days on plans to meet the security needs of U.S. forces in the gulf. The resolution was expected to pass without controversy today in the House Foreign Affairs Committee before the full House was to take up the bill. But in a surprise move, liberal Democrats and conservative Republicans on the committee joined in an unusual alliance to oppose the resolution. Liberal Democrats said a lack of any restrictions in the bill implied consent to Reagan's policies.

The U.S. House of Representatives approved a bill that requires the Reagan administration to provide Congress with a report on its Gulf policy but does not place any restrictions on its actions. The bill passed 305-102 -- winning a necessary two-thirds of those voting -- despite a last-minute revolt by an alliance of liberal Democrats and conservative Republicans who sought to defeat it as a signal that a growing number of legislators oppose President Reagan's policies in the region. The legislation was passed in the wake of the May 17th Iraqi missile attack on the U.S. frigate Stark in the Gulf, which killed 37 Americans, and Reagan's decision to protect 11 Kuwaiti oil tankers by putting them under U.S. flags -- effectively making them American ships. The legislation -- supported by Congress' Democratic and Republican leadership as well as by the administration -- required Defense Secretary Caspar Weinberger to provide a report to Congress, within seven days of enactment, on plans to protect U.S. warships and flag ships in the Persian Gulf. It did not, however, place any restrictions on the administration as it proceeds to reflag the Kuwaiti ships and thus has no immediate effect on U.S. policy. The Senate was expected to approve the legislation this week. The bill would then be sent to Reagan for signature. Supporters of the bill said passage of the bill was only a first step toward a greater congressional involvement in formulating policy. But Democratic critics said the bill did not ask the administration to address tough policy questions in the report.

The leaders of a U.S. Senate team probing American defense strategy in the MidEast Gulf said they favored a multinational force to keep oil flowing through the waterway. Sen. John Glenn and John Warner, in Kuwait as part of a Gulf Arab tour, said at a news conference that top officials in the area appeared ready to discuss extra facilities needed if the U.S. upgraded its defense role. The Senate team next heads for the United Arab Emirates, their last stop on a fact-finding mission prompted by Reagan administration plans to let half of Kuwait's 22-tanker fleet fly the U.S. flag. Glenn and Warner said the U.S., Britain and France, should explore the possibility of a unified Gulf force. "The American ships, the British ships, the French ships now talk to each other and all we've got to do is formalize this arrangement," Warner said. Glenn said a multinational force could be effectively deployed within 24 hours of a decision. Glenn voiced a preference for a United Nations multinational force, or failing that, an American, British, French force with cooperation from the Gulf Arab states. Warner voiced concern that the Soviet Union might use the situation in the Gulf to raise its presence. "And, unequivocally, all GCC states we have talked with, have said that would not be in the interests of the Arabian peninsula."

The European Community (EC) should watch very carefully for any developments in the Gulf War and their consequences on the oil market, EC Energy Commissioner Nicolas Mosar said today. Speaking two weeks after a U.S. warship was attacked in the Gulf, Mosar warned, "An escalation in the Gulf would increase tensions in the oil market." "But I do not want to be alarmist," he told a news conference after an EC energy ministers meeting in Luxembourg. He said the volume of EC oil imports from the Gulf had declined to around 31 pct of total oil imports in the first three months of 1987 against 35 pct in the same period last year. "There are also other potential sources of supplies in the world," he added. The issue of Gulf oil imports was not discussed at the ministers' meeting, he added. A EC committee of national experts in the so-called oil supply group would discuss Gulf oil supplies at their bi-annual meeting on June 19, he said. But any major decisions would have to be reserved for EC foreign ministers, diplomats said. West European nations have so far shown little enthusiasm for backing a U.S. plan to give military protection to merchant ships in the Gulf which could help insure the safety of oil supplies.

The House today approved a bill requiring the Reagan administration to report to Congress on its Mideast Gulf policy but not restricting its actions. The vote in favor was despite a last-minute revolt by an alliance of liberal Democrats and conservative Republicans who sought to defeat it as a signal that a growing number of legislators oppose President Reagan's policies in the region. In the Senate, a leading Republican senator, former Senate Appropriations Committee Chairman Mark Hatfield of Oregon, said he would try to prevent consideration of the bill. He said he will put a so-called "hold" on the bill until he finds out whether the War Powers Act applies to protecting Kuwaiti tankers. Congressional leaders complain they were not consulted about plans to put the U.S. flag on Kuwaiti ships and some charged the policy could lead the U.S. into the Iran-Iraq war. Conservative Republicans said increasing the U.S. military obligation in the gulf would place impossible burdens on American servicemen and equipment, and warned it could lead to war. "It is a real snake pit at best and a powder keg that will blow sky-high at worst," said Wisconsin Rep. Toby Roth.

Paul Volcker's resignation as Federal Reserve Board chairman creates a serious leadership vacuum at a time of deep uncertainty about the future management of the third-world debt crisis, bankers said. They said Volcker did more than any other official to hold the financial system together when Mexico halted interest payments in August 1982 and has played a central role ever since. "Where is the leadership going to come from? Suddenly there's a terrible void," one New York banker said. Volcker's expertise will be all the more sorely missed because International Monetary Fund managing director Michel Camdessus is new to his job and Barber Conable is finding it hard to make a mark as World Bank president, bankers said. Moreover, Volcker's successor, Alan Greenspan, has little experience of international affairs and third world debt. "Greenspan does not have the sensitivity to these issues and the sense of understanding of their complexity that Volcker has. Volcker understands what motivates people outside the U.S. That was in his gut. Greenspan just does not have the intuitive feeling," one banker said. This banker, who has discussed debt questions with Greenspan, described his views as simplistic. But Robert Hormats of Goldman, Sachs and Co said he was not worried by Greenspan's lack of international experience. "People rush to judgment, but once they get to know Greenspan I'm sure they'll find him an excellent replacement," said Hormats, a former Administration official. Anyone nominated to replace Volcker would have paled in the initial comparison, Hormats said. "Volcker had the status of a financial demigod and you can't attain that status overnight," he said. One veteran debt rescheduler said Volcker, together with the Bank of England, deserves credit for keeping the banking system intact after Mexico's default. "If it hadn't been for him, the world would look a lot different now," he said. "Whether you agreed with him or not, he has a superb grasp of ideas." Certainly, not all bankers did agree all the time with Volcker. In particular, he was roundly criticized by some for more or less forcing them last September to grant Mexico generous terms on its 77 billion dlr new-loan and debt rescheduling agreement. "Volcker lost a lot of credibility by overstepping the bounds and pushing the package onto the banks," commented one banker who helped to negotiate the Mexican deal. Another critic was Citicorp chairman John Reed, who said the 13/16 pct interest margin would deter some bank lenders and thus delay Mexico's return to the voluntary markets. It was a review of the fate of the Mexican deal - and of others that followed it for Chile, Venezuela, the Philippines and Argentina - that helped to convince Reed that the debt crisis was not about to be solved and that Citicorp needed to bolster its reserves in case some of the loans went bad. "It certainly contributed to the general feeling of malaise," one Citicorp banker said in describing the impact of the Mexican package on the bank's decision to add three billion dlrs to its reserve for possible loan losses. That decision, since followed by Chase Manhattan and Security Pacific Corp, may profoundly alter the strategy of creditors and debtors alike for tackling the debt crisis. But no one is sure what the impact will be. "It's very difficult for anyone to know which way the debt problem is going, and with Volcker out of the picture it just adds to the uncertainty," one banker said.

Westpac Banking Corp said it is cutting its indicator lending rate to 22 pct from 23 pct effective from June 15. Westpac said in a statement various other lending rates are also being revised downwards. The Westpac move follows base rate drops by other New Zealand trading banks recently. base rate drops to 22 pct from 23 on June 16 and rate falls to 21.50 pct from 23 on June 15. The Australia and New Zealand Banking Group Ltd rate remains at 23 pct.

New foreign shipbuilding orders received by Japanese yards in May fell to five vessels totalling 188,900 gross tons (gt) from eight ships of 314,000 gt in April, against four ships of 104,500 gt a year earlier, the Japan Ship Exporters Association said. The backlog of orders at end-May was 122 ships of 3.70 mln gt against 125 ships of 3.73 mln at end-April and 233 ships of 5.99 mln a year ago, an association official said. The world shipping recession and the yen's appreciation against the dollar depressed May orders, he said.

South African year-on-year broadly defined M-3 money supply growth was revised upward to 10.37 pct for April from a preliminary 10.08 pct, but was down from a revised 10.69 pct in March, Reserve Bank figures show. M-3 rose to a revised 82.38 billion rand in April from a preliminary 82.17 billion and March's revised 81.39 billion. In April last year M-3 stood at 74.64 billion rand. Preliminary figures for May show M-3 at 83.24 billion rand for a year-on-year rise of 10.97 pct from 75.01 billion in May 1986. April M-1A rose a year-on-year 15.12 pct to 14.22 billion rand after rising 14.72 pct to 13.97 billion in March while M1 rose 24.49 pct to 27.92 billion after a 20.69 pct increase to 26.97 billion, the figures showed. M-2 rose 8.28 pct to 58.71 billion in April after rising 6.47 pct to 57.52 billion in March.

has accepted Japanese nominations to lift a higher proportion of Arab Heavy crude oil under term contracts in July, oil industry sources said. Japanese companies requested a ratio of 80 pct Arab Heavy to 20 pct Arab Light under a term contract agreement with Aramco for 100,000 barrels per day, the sources said. The contractual ratio is 30 pct heavy crude to 70 pct light. Japanese demand for heavy crude oil has increased substantially since the All Japan Seaman's Union ceased sailing into the northern Mideast gulf last month, causing problems with liftings of heavy Kuwait and Khafji crudes.

Four cargoes of raw sugar were sold to China yesterday via the London trade to supplement the country's current nearby buying programme, traders said. The sugar was reported sold at around 160 dlrs a tonne c and f for July/August shipment or arrival in September, they said. Some traders said recent Chinese purchases could total as much as 300,000 tonnes, but others, while agreeing a heavy volume had been taken, said an amount less than that figure was involved. China was still believed to be in the market for more sugar, traders said.

The 37,635 deadweight tonnes bulk carrier Cumberlande, which sank in the South Pacific last Friday, was carrying a cargo which included lead as well as magnesium ore, a Lloyds Shipping Intelligence spokesman said. He was unable to confirm the tonnages involved. Trade reports circulating the London Metal Exchange said the vessel, en route to New Orleans from Newcastle, New South Wales, had been carrying 10,000 tonnes of lead concentrates. Traders said this pushed lead prices higher in early morning trading as the market is currently sensitive to any fundamental news due to its finely balanced supply/demand position and low stocks. Trade sources said that 10,000 tonnes of lead concentrates could convert to around 5,000 tonnes of metal, although this depended on the quality of the concentrates. A loss of this size could cause a gap in the supply pipeline, particularly in North America, they noted. Supplies there have been very tight this year and there is a strike at one major producer, Cominco, and labour talks currently being held at another, Noranda subsidiary Brunswick Mining and Smelting Ltd.

A minority group of European Community countries strong enough to block the adoption of a tax on vegetable and marine oils and fats is still intact after the EC Commission proposed changes to its proposals earlier today, British agriculture minister John MacGregor told journalists. He said Britain, West Germany, the Netherlands and Denmark continue to oppose the tax after the Commission proposed making it temporary and promising compensation to any third countries whose exports suffered.

Harcourt Brace Jovanovich Inc said it has called a special meeting for July 23 for a vote on an increase in authorized common shares to 100 mln from 50 mln, an increase in preferred shares to 150 mln from 2,500,000 and a provision allowing the payment of preferred dividends in stock or property as well as cash. The company said June 29 will be the record date for the meeting. Harcourt which is fighting off a takeover bid from , has declared a special dividend on common stock of 40 dlrs in cash and 12 pct preferred stock with a market value of 10 dlrs per share. The special dividend is to be paid July 27.

European coffee traders and roasters may propose a new formula for calculating International Coffee Organization (ICO) coffee quotas at the end of their meeting here this week, traders and officials told Reuters. Although traders were unwilling to reveal details of the possible new formula, they said it would give Brazil, the world's biggest coffee producer, unchanged ICO quotas for the next two years and could be a basis for renegotiation. "The main sticking point on quotas has been Brazil's attitude, and this compromise could be a solution, " one said. However, the European coffee trade federation meeting, which began here today and is to continue to the end of the week, has revealed gaps in the European position on re-introducing quotas. Traders said that, as a whole, the trade side was against re-introduction of ICO quotas, while roasters were generally in favour with the single proviso that there had to be some formula basis for re-allocating quota shares among producing countries. The roasters said the positions were generally fairly close, and problems with some Government officials. Germany and Italy were cited as the extremes of polarized Government attitudes, with most other countries on the fence. Sources said Germany was the most extreme against quota re-introduction, while the Italians were most in favour. "Nevertheless, we expect to find enough common ground by the end of the week to at least present a common European Community (EC) view at the next meeting of consumer members of the International Coffee Agreement (ICA) in July," one trader said. "We hope we can present the compromise proposal and that not only the consumer side, but the producer side will accept it," one official said. "We have learned that we can live without the quotas that were suspended in February last year, but would prefer the stability they can bring to the market as long as we do not simply return to the old and outdated status quo as far as quota allocation is concerned," he added. Overall, however, trader and roaster opinion on the likelihood of a successful re-negotiation was mildly pessimistic, varying between a 50-50 chance and 60-40 against. "Our main difficulty will be to persuade the U.S. On the consumer side and Brazil on the producer side to agree to quota re-introduction, " he said. "The U.S. Position has, if anything, hardened, while the new Brazilian Coffee Institute president has adopted the least negotiable position of any of his predecessors," one trader said. "However, with many producers starting to swing in favour of the consumer position that quotas have to be re-allocated under a new formula, Brazil is becoming increasingly isolated, which gives at least some hope of a compromise at the ICO quota meeting in September," the official said.

Some OPEC states are unhappy about the prices assigned to their crude oil but this should not pose great problems when the group reviews its six-month-old price and output pact in Vienna next week, oil analysts say. They said Nigeria, which holds the OPEC conference presidency, and Qatar probably have the biggest grievances about price differentials making some of their crudes uncompetitive. There has also been speculation by Japanese traders that OPEC might want to mark up prices of high-sulphur heavy crudes, to correspond with greater demand and higher fuel oil prices. But most experts agree that a major overhaul of price differentials is unlikely, so as to avoid giving the market signals of a dent in OPEC's new unity. "All OPEC members can make a good case for changing differentials," said one analyst with a major oil company. "But at the end of the day, the attitude is going to be "leave well alone' and little or nothing is likely to be altered." Iran, Libya and Saudi Arabia are among those who also saw sales problems earlier this year, traders say. But diminished customer resistance to fixed prices and, in some cases, marketing incentives have helped their sales. Some producers can sell uncompetitively priced crudes by means of discounts, processing deals or selling them alongside better priced grades in a "package." Many OPEC crudes are seen to be reasonably priced, at least for some part of the year. But many experts say OPEC should change prices quarterly or monthly to match seasonal demand for fuel oil-rich heavy crudes and gasoline-rich lighter grades. At its last meeting in December, OPEC agreed to reintroduce fixed prices from February 1 around an 18 dlr per barrel reference point. Official prices had been effectively dropped in 1985 when members offered discounts to attract customers. OPEC also decided to limit first-half 1987 output to 15.8 mln bpd and proposed ceilings of 16.6 mln for the third quarter and 18.3 mln for the fourth. Analysts expect it will now extend or raise slightly the current ceiling for the coming months. Spot market and netback values for some crudes do not mirror official prices, but OPEC will probably keep the 18 dlr target and at most make minimal changes to differentials, analysts say. The 18 dlr figure is based on a basket of six OPEC and one non-OPEC crudes. OPEC assigned prices to its other key export crudes, with a 2.65 dlr gap between the heaviest and lightest. Extra heavy crudes were among those left out. Industry estimates vary on the proportion of OPEC oil exports actually sold at official prices. Several experts say only one-quarter to one-third of the total in fact sells at official prices, with some of the rest included in processing or barter deals or sold in the form of refined products. Problems with the new structure appeared earlier this year, when some producers' output fell due to customer reluctance to pay the new prices. Nigeria especially found its gasoline-rich Bonny Light crude -- now OPEC's highest priced grade at 18.92 dlrs a barrel -- was uncompetitive on the spot market against Britain's Brent. In February and March, Nigeria's production shrank below its 1.238 mln bpd OPEC quota. Spot prices have since revived, due partly to seasonal demand for gasoline, and its output has risen. Some experts feel Bonny Light is still overvalued and say its price should be cut by between 50 cts to one dlr a barrel. But Mehdi Varzi, chief oil analyst with London's Kleinwort Grieveson Securities, doubts Nigeria will actively push the differentials question in Vienna. "It would not look good for OPEC unity if Nigeria, which holds the presidency, raised the issue," he said.

Analysts said they were surprised at the government's announcement of a forecast budget surplus for fiscal 1988 but said it was consistent with previous policy statements and positive for the economy. Finance Minister Roger Douglas predicted a budget surplus for the year ending March 1988 of 379 mln New Zealand dlrs against a 1.95 billion deficit last year. Analysts polled by Reuters said the forecast budget surplus was even more positive than the most bullish analysts' forecasts and that this was good news for financial markets. Market expectations among analysts questioned by Reuters before the budget varied widely between a balanced budget and a 2.3 billion dlr deficit. But none predicted a surplus. The forecast initially looks positive for both the bond and the foreign exchange markets, one analyst said. Paradoxically, the New Zealand dollar could rise in the medium term, despite lower interest rates, as overseas investors became more confident about investing in New Zealand, he said. However, some foreign exchange dealers disagreed, saying the local dollar is primarily interest rate driven and will move lower. The local dollar dropped to 0.5940/50 U.S. Dlrs in after hours trading, against 0.5970/77 just before the budget release. Analysts said the budget was also positive for the share market, despite an increase in the contribution of company taxation to revenue figures. One equities analyst predicted that the budget surplus announcement could push the share market up by 50 points tomorrow. The Budget statement was broadly as expected, with a continuation of existing policies, and the absence of traditional pre-election incentives would be viewed positively by overseas investors, another said. But one merchant bank economist said that certain anti-tax avoidance measures could damage some sectors of the share market, particularly multi-national companies. The government is also lowering its borrowing requirements, through bond tenders, as a result of the surplus. The requirement for the rest of the year is now down to 950 mln N.Z. Dlrs from a predicted 1.75 billion. Predicted revenue in the Budget looked sustainable and there appeared to be no holding back on expenditure, another economist said. He added that the document seemed entirely credible. "Altogether it looks good for Labour's election prospects," he said. An election is due before the end of September.

Becor Western Inc said it is talking with a possible fourth bidder for the company. The company also said Lynch Corp has renewed its offer for Becor which was withdrawn last week. Talks with the possible bidder are expected to be concluded shortly, Becor said, adding its board will evaluate all then existing offers at that time. In the meantime, the company said, it plans today to adjourn further its meeting of stockholders to June 30. That meeting was called to act on a merger agreement calling for a buyout by BCW Acquisitions Inc. The third identified Becor suitor is . In Fairfield, N.J., Lynch said its latest proposal calls Lynch to own 75 pct of Becor's stock and Becor holders to retain the other 25 pct. Peviously, Lynch would have held about 25 pct, with Becor holders receiving 25 pct and Becor management about half. Lynch said the proposal was changed because it believes Becor's management "needs more guidance in terms of financial structuring.

USAir Group Inc said the U.S. Department of Transportation's Office of Public Counsel has urged that expedited non-hearing procedures be used in its proposed acquisition of Piedmont Aviation Inc . The company said that America West Airlines Inc was the only party voicing opposition to the acquisition. The Department of Transportation had asked parties to submit statements by June 17 either supporting or opposing the acquisition. USAir said it and Piedmont again requested expedited approval for the acquisition. The company said the Office of Public Counsel could find no evidence that the acquisition would substantially lessen competition in any market.

Shr primary 66 cts vs 1.17 dlrs Shr diluted 66 cts vs 81 cts Net 1,220,691 vs 1,302,999 Revs 13.7 mln vs 13.1 mln Avg shrs primary 1,859,421 vs 1,112,400 Avg shrs diluted 1,859,421 vs 1,826,303 NOTE: Latest net includes tax credits of 565,000 dlrs vs 620,000 dlrs.

Oper shr nil vs profit one ct Oper net profit 14,000 vs profit 51,000 Revs 5,547,000 vs 6,021,000 Six mths Oper shr loss nine cts vs profit seven cts Oper net loss 383,000 vs profit 314,000 dlrs Revs 9,31,000 dlrs vs 12.5 mln NOTE: 1986 qtr and six mths excludes loss 171,000 dlrs and 358,000 dlrs, respectively, for loss from discontinued operations.

Phillips Petroleum Co said it raised its crude oil posted prices for West Texas Intermediate and West Texas Sour by 50 cts a barrel, effective June 17. The company said the new posted price for WTI and WTS is 19 dlrs a barrel. The increase is in reaction to Sun Co raising postings similarly yesterday.

Italy's net official reserves fell to 67,110 billion lire in May from a previously reported 68,455 billion in April, the Bank of Italy said. Gold holdings totalled 35,243 billion lire at end May, unchanged from end April. Convertible currencies totalled 18,277 billion lire in May, down from 20,028 billion in April, while European Currency Unit holdings were 10,610 billion against 10,528 billion.

Becor Western Inc said its reconvened shareholders meeting has been adjourned to 1000 CDT June 30. The company had previously announced plans to again adjourn the meeting following receipt of a renewed offer from Lynch Corp yesterday. The meeting was originally convened on June four when shareholders approved the sale of Becor's Western Gear Corp subsidiary before adjourning. The remaining matter to be presented is the proposed acquisition of Becor by BCW Acquisition Inc, now one of four offers for the company./

Commitments to Argentina's external financing program for 1987 and 1988 have reached about 91 pct of the 1.95 billion dlrs in new loans that banks have been asked to provide, Citibank and Argentina said in a joint statement. This percentage is close to the "critical mass" of commitments that the International Monetary Fund has requested as a condition for releasing new loans to the country. Senior Citibank executive William Rhodes said he was encouraged by the banks' response and that telexed commitments continue to arrive. The response of Argentina's 350 foreign bank creditors had been eagerly awaited because the package is the first to be marketed since U.S. banks, led by Citibank, decided to take large second-quarter losses in order to boost their reserves against existing loans to developing countries. Some bankers had feared that banks would refuse to lend new money so soon after taking a "hit" on the old loans, but today's news delivers a decisive rebuff to those skeptics. The strong response to the package was partly the result of the inducement of a 3/8 pct early-participation fee for those banks that agreed to sign up by June 17, bankers said.

Rio de Janeiro's 3,500 dockworkers went on strike for an indefinite period today to demand wage increases, a spokesman for the dockers said. The Rio dockers did not get support from their colleagues in Santos, Brazil's main port, but the spokesman said they would not return to work unless their demands were met. Earlier this week, some 65,000 dockworkers cancelled a scheduled national strike to pressure port officials to give them a wage increase and other benefits. A Rio port spokesman said the halt would cause daily losses of about 100,000 U.S. dlrs.

Rio de Janeiro's 3,500 dockworkers went on strike for an indefinite period today to demand wage increases, a spokesman for the dockers said. The Rio dockers did not get support from their colleagues in Santos, Brazil's main port, but the spokesman said they would not return to work unless their demands were met. Earlier this week, some 65,000 dockworkers cancelled a scheduled national strike to pressure port officials to give them a wage increase and other benefits. A Rio port spokesman said the halt would cause daily losses of about 100,000 U.S. Dlrs.

Pengo Industries Inc said it has agreed to sell its Wireline Products Manufacturing Division in Fort Worth, Texas, Wireline Services Division operations in several locations and Pengo International Inc subsidiary to John Wood Group PLC for undisclosed terms. The company said the Wireline Services operations being sold are in Lafayette, Houma and Harvey, La., Alvin, Odessa and Longview, Texas, and Moore, Okla. Pengo said its Kuykenball Slickline operation in Moore and surplus wireline equipment operations in fort Worth and Cleburne, Texas, will be sold separately.

The World Bank said it approved a 97.4 mln dlr loan for China to help boost fertilizer output in order to increase agricultural production. The 20-year loan supports a project aimed at improving the efficiency of medium-scale fertilizer plants through technical renovations and energy conservation, the bank said. It said the project also seeks to reduce agricultural nutrient imbalances by building the capacity for phosphate fertilizer production and to improve institutional efficiency by introducing modern economic, financial and operational systems and techniques.

Allegheny and Western Energy Corp said it was forming a subsidiary to market gas to smaller users in West Virginia. The company also said it completed negotiations to sell between 10 and 12 mln cubic feet of gas per day to a large, unspecified East Coast utility. Interstate markets will become part of the subsidiary's operations, the company said.

Ronald Perelman, head of Revlon Group Inc , may be trying to ignite a bidding war for Gillette Co that could draw some big international players and in the process make a lot of money for himself, Wall Street analysts said. Several hours before a regularly scheduled board of directors meeting, Gillette disclosed that Perelman requested consent of its board for an offer of at least 40.50 dlrs per share. Perelman needed the consent because he agreed in November not to buy stock for 10 years without permission. "I think Ronald Perelman is less interested in Gillette and more interested in putting Gillette into play because he stands to make a ton of money," said Andrew Shore, analyst at Shearson Lehman Brothers Inc. "In play" is a term used on Wall Street to describe what happens when a company becomes an unwiling takeover target. Shore noted that according to the 1986 agreement Revlon gets paid if there is any acquisition of Gillette through November of this year at a price higher than 29.75 dlrs per share. Gillette rose three to 40 today, following a gain of three yesterday. The agreement would be calculated on the basis of Perelman's previous holding of 18.4 mln shares, adjusted for a split. For example, a deal between Gillette and some other company at 44 dlrs per share would make Revlon richer by 262 mln dlrs under the formula. Neither Perelman nor his spokesmen returned telephone calls seeking comment. "Revlon stands to make a substantial amount of money if someone else takes over Gillette," said Analyst Deepak Raj of Merrill Lynch and Co. "I'm not saying that is going to happen but Gillette is an undervalued stock with a breakup value of 45 dlrs per share." Shore of Shearson Lehman said there are a couple of reasons why Perelman may not be really interested in acquiring Gillette. He said Perelman, in the process of taking Revlon private after acquiring control of the cosmetics company two years ago, probably wants to concentrate on improving Revlon's operations. "He's trying to overhaul and improve the image of the dearptment store business." Another reason is that Revlon has recently made two other acquisitions. Under those circumstances, Shore would not be surprised if some company such as Unilever plc or Procter and Gamble Co decided to take a look at Gillette. Shore mentioned half a dozen other potential buyers for Gillette including Sir James Goldsmith, Hanson Trust plc , RJR Nabisco Inc , American Brands Inc and Ralston Purina Co . "Perelman is trying to put the company in play," said a Wall Street arbitrageur. "He gets to share in the upside if the company is sold." Another arbitrageur said he expects Gillette to resist Perelman's overture. "I can't see the board consenting, what has changed between November and now," he said. Another arbitrageur said he was not sure what was going on. "Perelman never does anything without a fair amount of calculation," he said. But he added, "The Gillette board has to be careful. They just can't say no or they'll be sued by shareholders." Gillette's board was still meeting at 1700 EDT, three and one-half hours after the scheduled starting time. According to a copy of Perelman's letter released by Gillette, he would be prepared to sign a defnitive merger agreement without any financing condition. He said Citibank N.A. is his lead lender and First Boston Inc is his financial adviser.

Inspiration Consolidated Copper Co, a subsidiary of Inspiration Resources Corp, said it is lowering its base price for full-plate copper cathodes by 0.50 cent to 74.0 cents a lb, effective immediately.

China has added 30,000 tonnes of U.S. corn to its previous commitments, according to the U.S. Agriculture Department's latest Export Sales report. The report, covering transactions in the week June 11, the additional corn resulted from changes in destinations. Total corn commitments for delivery in the 1986/87 season amount to 1,083,400 tonnes.

Nova Corp is considering a takeover bid for Dome Petroleum Ltd, either alone or as part of a consortium, Nova chairman Bob Blair said. "We are thinking about making an offer to Dome or Amoco (Canada Petroleum Co Ltd) or the creditors," Blair told reporters before the annual meeting. Amoco Canada is a unit of Amoco Corp , which has made a 5.2 billion-dlr acquisition offer for Dome. "There is ongoing, serious thought applied to Dome in Nova and in Husky, but no decision of substance as to future action has been taken in either company," Blair said. Nova owns 43 pct of Husky Oil Ltd . Blair also said that Nova has made no decision as to whether it would want to be lead partner in a joint purchase of Dome. He added that some of the discussions with other parties about Dome included TransCanada PipeLines Ltd , but refused to name the other participants.

West German economic growth will slow to 1.5 pct this year from 2.4 pct in 1986 due to weak domestic demand and tougher competition from abroad, the Organisation for Economic Cooperation and Development (OECD) said in its semi-annual review of the world economy. This view is less favourable than the West German government's forecast of a growth rate of under two pct this year, but is in line with forecasts by independent economic institutes of growth ranging from 1.5 to two pct. The OECD said that the economy should pick up next year, with the gross national product rising by two pct in real terms. The OECD said it assumed the German economy was passing through a period of temporary weakness and there would be some recovery in business confidence in the near future. But it warned that the key to an improvement in the economy was higher domestic demand, which is only forecast to rise by 2.5 pct this year and 2.75 pct in 1988, below 1986's 3.7 pct. While noting that the government is bringing forward a five billion mark tax reform to January 1988, the OECD said that "the medium to longer-term performance of the West German economy could be improved by reduction of subsidies - which would allow relatively lower tax rates." Since the OECD report was compiled, the West German Federal Statistics Office has released figures showing that the GNP actually fell 0.5 pct in real terms in the first quarter of this year compared with the final three months of 1986. Diplomatic sources here said that West Germany appeared likely to finish the year with the lowest growth rate of any of the Group of Seven leading industrial nations. West Germany's current account surplus, the target of considerable criticism by the Reagan administration, is expected to rise slightly to 37 billion dlrs this year from 35.8 billion in 1986, before declining to 29 billion dlrs in 1988.

The navy is unloading foodgrains at Chittagong port following a strike by nearly 1,000 dockworkers, Bangladesh Shipping Corp officials said. The navy was unloading 74,000 tonnes of foodgrains from two ships today, and four vessels laden with some 90,000 tonnes of grains were waiting at the outer anchorage, port officials said. A spokesman for the workers said they would continue their strike until authorities agree to their demands for higher pay and other benefits. The strike began on June 11. "Unloading of grains and other essential commodities started normally after we called in navy personnel to help," a port official told Reuters. "The strike has caused no serious dislocation," he said. The government meanwhile declared the port jobs an "essential service" and said the strikers could be dismissed unless they end the strike soon.

Liner shipping specialist , Taiwan's largest private company, has applied to the Security and Exchange Commission to go public next month, a company spokeswoman told Reuters. She said Evergreen had doubled its capital to eight billion Taiwan dlrs since last August. "The capital increase will boost our operations," she said. She said Evergreen will use the funds raised from the stock market to buy new ships and step up its global services. The spokeswoman said the company posted an after-tax profit of more than one billion dlrs last year on total revenues of 20.46 billion, compared to an after-tax profit of 1.18 billion on revenues of 17.99 billion in 1985. Evergreen has placed newbuilding orders for three 3,428-teu (twenty-foot equivalent unit) fully cellular container ships with the state-owned for delivery in late 1988. Evergreen has a fleet of 66 container vessels, totalling more than two mln dwt, the spokeswoman said.

A 24-hour strike by Belgian public employees protesting against a government pay offer disrupted transport and hit ferry services and shipping, port and union officials said. Some cross-Channel ferry services from Ostend were cancelled, the local news agency Belga said. An Antwerp port authority spokesman said electricians came out in support, reducing ship movements to a trickle. Unions said Ghent and other major Belgian ports were also hit. Few trains were running and some early morning flights by Sabena, Belgian's national airline, were cancelled.

China has resumed repairs of Soviet ships after a 23 year break caused by the ideological split between the two countries. The New China News Agency said an agreement to resume the business was signed by the two sides on Wednesday in Shanghai, where three Soviet commercial vessels were being repaired. The China Daily said the first two Soviet ships to be repaired in China since 1964 left the ports of Dalian and Xingang last month. Bi Yueran, managing director of China State Shipbuilding Corp's ship repair department, told the newspaper the Soviet Union lacked adequate repair facilities for the more than 600 ships deployed in the far east. Bi said China's yards offered competitive prices, guaranteed quality and prompt delivery.

U.S. Exports of edible groundnuts could fall to 185,000 tonnes in the year to September 1987 from 248,000 in the same 1986 period, trading company Tracomin SA said. It revised its December 1986 forecast that exports would total 205,000 tonnes, citing low demand, the loss of U.S. Market share in the two main importing countries, Britain and the Netherlands, and the sale of nuts intended for export at a premium in the U.S. Domestic market. Tracomin estimated export availability from the 1986 crop at 215,000 tonnes compared with 264,000 the previous year. Tracomin said it expects a good 1987 U.S. Groundnut crop and forecast a resurgence in U.S. Exports next year. "Barring any market manipulations, a good U.S. Harvest in 1987 could lead to attractive prices, active trading and the reappearance of the U.S.A as the world's leading producer of peanuts," it said. Overall exports from China, the leading exporter last year, will remain at exceptionally high levels this year despite quality complaints and difficulties in implementing some earlier high-priced contracts. It is too early to say if China can retain its current market share in 1988, Tracomin said.

Cargo handling companies said they were hiring twice the usual number of dockers to offset an intermittent strike in Spanish ports. Spanish dockers began a nine-day strike on Wednesday in which they only work alternate hours in protest at government plans to partially privatize port services.

Ghana has lifted a ban on rice and maize imports due to crop problems caused by unusually dry weather, the official Ghana News Agency (GNA) reported today. Secretary for Finance and Economic Planning Kwesi Botchwey made the announcement last night while accepting 7,891 tonnes of rice worth about four mln dlrs under a Japanese food aid programme. The lifting of the ban, imposed earlier this year, follows government concern over "lower than average rainfall in southern Ghana and its implications for the major harvest." Botchwey said rain has been lacking in major cereal growing areas throughout the south this year. The Ministry of Agriculture has predicted a fall of at least 25 pct in all major staple crops including maize, rice and cassava. GNA quoted Botchwey as saying that while the consequences of current reduced rainfall will be nowhere near the drought experiences of 1982/83 the government has taken steps to alleviate anticipated food production shortfalls. The failure of seasonal rains has already seriously affected drinking water supplies, farming and fishing in parts of the Central and Volta regions of Ghana where rivers have dried up.

Chrysler Corp said it has no intention of increasing its offer for Electrospace Systems Inc . Chrysler agreed to purchase the Texas-based defense electronics contractor in a tender offer of 27 dlrs a share for a total value of about 367 mln dlrs. Eletrospace shares closed yesterday on the NYSE at 30-1/8. "We have no intention of increasing the offer," a company spokeswoman said. "We believe it is adequate and will be accepted." She said the proposed transaction was unanimously recommended by the board of directors and principal shareholders of Electrospace. Further, she noted that the 27 dlrs tender offer price is 50 pct above the price of Electrospace's shares before April 30 when it put itself up for sale.

Texaco Inc's Texaco Canada said it will raise postings for its Edmonton/Swann Hills crude by 24 canadian cts a barrel, effective June 20. The company said the new posting for Edmonton/Swann Hills will be 25.60 dlrs a barrel. The price hike follows a round of crude oil price increases started late June 17 by Sun Co. The other major canadian crude suppliers raised prices June 18.

Rising water levels on the Rhine caused by heavy rain are delaying an operation near Karlsruhe to raise two sunken boats which have blocked the river's main navigation channel since early last week, a Karlsruhe water authority spokesman said. He said two floating cranes were unable to begin lifting the sunken tug Orinoko and its lighter because the water level had reached 815 centimetres and was forecast to rise to 820-830 cm by tomorrow. He was unable to say when the operation might begin. Meanwhile, high water at Cologne has forced vessels to travel at reduced speed, a water authority spokesman in Cologne said. But a water authority spokesman in Duisburg, 60 kms north of Cologne, said vessels there were moving normally.

Dutch salvage firm Smit-Tak said it may take some three weeks to lift the Swiss tug Orinoko and its lighter Pavo which sank 10 days ago at Karlsruhe in West Germany, blocking the Rhine river. Smit-Tak, which with its West German subsidiary Harms Bergung GmbH was commissioned by the local water authorities to raise the vessels, said its lifting fleet was in position and divers had made the first inspection. Smit is still preparing its final salvage plan and said the work would begin on Sunday.

Harcourt Brace Jovanovich Inc officials were not available for comment on market rumors that it is interested in acquiring Reed International plc . Officials of First Boston Inc, Harcourt's financial adviser, declined comment. A Wall Street arbitrageur, who owns Harcourt shares, said the rumors did not make much sense because Harcourt has announced a recapitalization plan to ward off a takeover attempt by British publisher Robert Maxwell."It's completely inconsistent with the recapitalization, the only way is if they drop the recapitalization," he said. Calls to Harcourt seeking comment were not returned. Harcourt's recapitalization will come under scrutiny of a U.S. Court in Orlando, Fla. Monday. The company has sought a declaratory judgment on convertibility of debentures due 2011 in light of the recapitalization. Harcourt said in a statement this week that Salomon Brothers Inc and Mutual Shares Corp have intervened in the case, claiming ownership of more than 30 mln dlrs face amount of the debenture. In addition, British Printing and Communications Corp, headed by Maxwell, owns 9.5 mln dlrs face amount, Harcourt said. Salomon said in a filing with the Securities and Exchange Commission today that it has 21,978 of the debentures. If the court decides they should be converted at par value of one dlr, they could be converted into 22.0 mln shares. Harcourt is asking the court to rule the company is not required to issue common to debenture holders who did not convert prior to June eight. An increase in Reed shares in London today was attributed by brokers to rumors of Harcourt's interest and also to rumors that Maxwell might be a buyer. But an adviser to Maxwell in New York said "there's no basis to think that it's us."

Boeing Co said the Hart-Scott-Rodino waiting period required in connection with its pending tender offer for ArgoSystems Inc expired at midnight June 18. Boeing began its 37 dlr per share cash tender offer for the defense electronics firm on June two.

U.S. Agriculture Department inspectors have refused entry to parts of two lots of Australian beef because of pesticide residues, a spokeswoman for the department said. She said USDA has notified Australia, which assured it that stricter controls would be implemented. The Australian government had already imposed residue controls and it is believed the meat with the presticide residues was already in the pipeline before the controls were put in place, the spokeswoman said. There have been five other cases of Australian meat which had residue levels above U.S. allowable limits this year, she said.

Unocal Corp said it told the U.S. Treasury Department that it will not include fluidized bed combustion technology, a method for the more efficient burning of solids, at its Parachute Creek oil shale project in Colorado due to high costs. Under a 1985 agreement with the now-defunct U.S. Synthetic Fuels Corp, Unocal said it would study using the technology at the oil shale plant. In return the company would have been eligible for 500 mln dlrs in loan gaurantees and price supports from the U.S. Treasury Department, which took over the contract from the Synthetic Fuels Corp, Unocal said. Unocal said its studies showed the cost for the fluidized bed combustion facility would have exceeded 352 mln dlrs, compared with an original estimate of 260 mln dlrs. The fluidized bed facility would have provided heat and electricity for the oil shale project, Unocal said. Last year's fall in oil prices and the loss of investment tax credit under the Tax Reform Act made the project uneconomical even with government price supports and loan guarantees, Unocal said. The Parachute Creek oil shale plant produces about 4,000 to 5,000 barrels per day of crude shale oil, Unocal said.

Shr loss 46 cts vs loss five cts Net loss 3,922,000 vs loss 420,000 Sales 16.0 mln vs 23.9 mln Avg shrs 8,567,000 vs 8,458,000 Nine mths Shr loss 1.02 dlrs vs profit 35 cts Net loss 8,685,000 vs profit 2,978,000 Avg shrs 8,547,000 vs 8,437,000

Marcade Group said it had agreed to buy Europe Craft Imports Inc for a combination of cash and common stock. The company said Europe Craft designs, imports and distributes menswear and sportswear under the Member's Only brand name. The company said Europe Craft had sales of 70 mln dlrs last year. Marcade said this latest deal is part of an ongoing acquisition phase.

Primerica Corp said it completed the previously announced acquisition of Smith Barney Inc for 750 mln dlrs in cash. Primerica, wh ich changed its name in April from American Can Co, said Smith Barney, Harris Upham and Co Inc, wholly owned by Smith Barney Inc, will add more than 100 domestic and overseas branch offices.

USA Network, today said it has acquired Time Inc's one-third interest in the network. The network, formerly a joint venture between Time, Gulf and Western Inc and MCA Inc , said that Gulf and Western and MCA, who each previously held a one-third interest, now will jointly own USA Network on a 50/50 basis. Terms were not disclosed, USA Network said. USA Network is an advertiser-supported, entertainment basic cable network, reaching 39 mln homes on 8,500 cable systems.

Tektronix Inc said it began its previously announced Dutch Auction cash tender offer for up to 10 mln of its own common shares. Under the terms of the offer the company will select a single cash purchase price for the stock, based on the number of shares tendered, not to exceed 40 dlrs per share or be lower than 35 dlrs per share, Tektronix said. The company also said it does not intend to spend more than 380 mln dlrs for the shares tendered. It further stated that the tender offer expires on July eight, unless extended.

Kay Corp said its Balfour, Maclaine International Ltd subsidiary signed a letter of intent to acquire certain assets of a privately-owned distributor of specialty fasteners for about 13 mln dlrs plus management incentives, which it did not disclose. Kay said the firm has annual sales of about 15 mln dlrs. Kay also said it is pursuing private placement of debt securities for a number of corporate purposes.

The United States said Kuwait was discussing plans to lease privately-owned U.S. tankers to transport oil through the Gulf in addition to putting some of its own vessels under American flags. State Department spokeswoman Phyllis Oakley, who made the disclosure about the tankers, also told reporters the United States expects to conclude very soon a favorable arrangement with Saudi Arabia concerning expanded security cooperation in the Gulf. The two developments occur as the Reagan administration continued to come under fire in Congress for its plans to bring 11 Kuwaiti tankers under American flags. The move is designed to protect the tankers from Iranian attacks and ensure freedom of navigation in the strategic waterway but has raised fears on Capitol Hill that it will draw the United States into the seven-year-old Iran-Iraq War. "The Kuwaitis have discussed the possibility of chartering U.S. flag vessels with the Maritime Administration," Oakley said. She emphasized, however, that "if some charter arrangement could be worked out, it would not supplant the reflagging arrangement that we worked out with the Kuwaitis." In both cases, the ships would be eligible for U.S. Navy escort in the Gulf, she said. The Washington Post today quoted John Gaughan, administrator of the Martime Administration, as saying Kuwait has approached an American shipping company about the possibility of a charter. Gaughan said that earlier this week he told representatives of the company, whose identify he did not know, that chartered vessels flying the U.S. flag "would be protected," the newspaper reported. Concerning Saudi Arabia, Oakley said "we are moving forward in our talks ... on how we can tailor our efforts and security cooperation to facilitate our Gulf operations."

A group of companies including Chicago-based Coronet Insurance Co and Sunstates Corp, a Jacksonville., Fla., real estate firm, said it raised its stake in Tandy Brands Inc to 175,900 shares, or 6.9 pct of the total. In a filing with the Securities and Exchange Commission, the group said it bought 43,600 Tandy common shares between May 21 and June 9 for 633,333 dlrs in addition to the 132,300 shares, or 5.2 pct, it had held previously.

Privately-held Joe Franklin Productions Inc said it entered into a preliminary agreement to merge with Assets Development Corp, a public company. Terms were not disclosed. The companies said they expected the merged group to qualify for listing on NASDAQ.

The economy faces lackluster growth and the risk of recession this year if the recent improvement in U.S. exports should falter, economists say. Growth will slow sharply in the next months due to weakness in the key housing and auto sectors and could be further hampered unless consumer spending picks up, they say. "These factors raise the question: Is there enough strength to keep the economy from tipping into a recession?" said Lyle Gramley, chief economist of the Mortgage Bankers Association and a former Federal Reserve Board official. The Commerce Department said this week that the economy grew by a robust 4.8 pct annual rate in the first quarter, but a U.S. monetary official called it a weak report. Housing starts fell 2.7 pct in May, and consumer spending rose a weak 0.1 per cent. "Our two largest visible industries -- autos and housing -- are faltering, but exports are picking up some of the slack, " Martin Mauro, senior economist for Merrill Lynch Economics, told Reuters. Gramley said he is worried that consumer spending may slow because inflation is rising faster than real wages. To offset this, U.S. exports must continue to rise, returning enough jobs to the manufacturing sector to boost personal income and consumption, he says. "I expect to see enough improvement in real net exports to keep a recession from happening, but it is a close call," Gramley said. Federal Reserve Board Governor Martha Seger told reporters that the apparent strength in the 4.8 pct growth figure was the result of a temporary buildup in inventories that will not last and said the recovery was showing anemia. Seger said that with the recovery stumbling along, "The pace of the economy and the lack of robustness must be factored into monetary policy" - possibly a signal that the Fed will be accommodative. Most economists predict growth slower than the 3 pct forecast by the Reagan administration for 1987 and warn that if the dollar drops suddenly, higher inflation will result and add to the risk of a recession. Mauro said a 0.5 pct rise in industrial production in May came despite cutbacks in output in the auto industry, where an inventory overhang still exists. He says the boost in production came from smaller industries like paper, chemicals, and lumber which have improved sales overseas due to the drop in the dollar. "They are not going to be enough for any kind of surge in economic activity, but I think they will keep us out of a recession," Mauro said. In a speech to financial planners this week, Beryl Sprinkel, the chief White House economic adviser, predicted the trade deficit will continue to improve. "Prospects for continued economic growth through 1987 and into 1988 are still quite favorable," he said. But private economists raise concerns about a resurgence in inflation. Allen Sinai, chief economist at Shearson Lehman Brothers Inc., told Congress this week that inflation would rise to 4.5 to five pct this year and stay at that level through 1989 after a 1.1 pct increase in 1986. The rise is coming from a sharply lower dollar, higher oil and energy prices and rising prices for services, he said. "The lesson of history is that once the inflation genie gets out of the bottle, it continues to persist," he said, adding he would like the Fed to tighten credit. A major factor affecting inflation is the value of the dollar, which should continue to fall and feed inflation, says a prominent international banker. Rainer Gut, chairman of Credit Suisse, told the National Press Club that the dollar's downward trend against the yen and the mark will continue for years because the United States is the world's largest debtor nation. The Swiss banker said the economic indicators point to a further slackening of activity and called naive the belief that the five-year boom on world equity markets will go on forever. "It is very difficult to be optimistic," Gut said.

The six basis point rise of the past month in U.S. debt futures may be extended next week by a series of U.S. economic reports, analysts said, as long as the dollar holds firm. "Interest rates have declined by approximately 50 basis points over the last month, largely over indications that inflation is not as high as people had feared and the narrowing U.S. trade balance, in nominal terms," Samuel Kahan, chief financial economist with Kleinwort Benson Government Securities, said. Kahan said recent government reports have shown strength in the economy during the first quarter, but his concern is whether the U.S. economy will sustain that strength in the longer term. Weak U.S. economic growth could hurt the dollar, which has become more important to the direction of debt futures than the beneficial impact on interest rates of a sluggish economy. The median trade expectations for Tuesday's U.S. Consumer Price Index and Durable Goods reports are up 0.4 pct and down 1.5 pct, respectively. Meanwhile, the eight billion dlr drop in the M-1 money supply announced this week was "surprising, much larger than expected," according to Kahan. "Unless quickly reversed," such a trend "will ensure that June M-1 growth will be negative," Kahan said. Taken in conjunction with M-2 and M-3 aggregates which Kahan said have "slowed to a crawl, below Federal Reserve Board annual targets," the consequences could be a hint of economic weakness down the road, he said. Based on chart formations, T-bond futures may be poised for further gains, although the advance has been slowed recently, analysts said. September T-bonds "are up almost six points since about May 18," Merrill Lynch debt analyst Jim Duggan noted. September bond futures climbed from the low of 87 a month ago to over 93 in mid-June, Duggan said. While follow-through buying has aided the advance so far, and bouts of short covering have prohibited a slide through chart support, the rally in September T-bonds has been thwarted above the 93 level. "The 93 level is formidable resistance and must be taken out before this activity is anything other than a trading range market," Carroll McEntee and McGinley Futures debt analyst Brian Singer said. The dollar remains the key fundamental factor, and the U.S. currency has made little headway of late, analysts said. "The critical variable remaining in the market is the value of the dollar," Kahan said. Additional influences next week will be possible developments ahead of an OPEC members meeting, and the impact and size of the U.S. budget deficit, "although these will not be in the forefront of the market early next week," Kahan said. In looking ahead to the U.S. Treasury mini-refunding auctions of 24.25 billion in T-notes on Tuesday, Wednesday and Thursday, Singer said the market will likely greet the results with little excitement. However, a successful auction could prove to be a turning point, depending on prevailing market psychology.

Kuwait, whose shipping has come under repeated attack by Iran, has the full support of Saudi Arabia and other Gulf allies, a senior government official said. Cabinet spokesman Abdul-Aziz al-Otaibi, quoted by the Kuwaiti news agency KUNA yesterday, said Foreign Minister Sheikh Sabah al-Ahmed al-Sabah had told cabinet he had found "complete support...At this delicate phase" during visits to Gulf Cooperation Council (GCC) states. The GCC, an economic and military alliance which has generally supported Iraq over Iran, comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Willis Faber Plc will make an agreed 302.6 mln stg offer for fellow insurance broker , a joint statement said. The offer would be on the basis of three Willis shares for every two in Stewart, valuing each Stewart share at about 655.5p. Willis already owns 2.05 mln shares, or 4.62 pct, and has received acceptances from Stewart's directors for a further 247,469 shares. Full acceptance of the offer would involve the issue of 66.2 mln new Willis shares, or 28.2 pct of the enlarged total. The companies said the proposed merger would bring together businesses that were largely complementary. Both believed the combination would permit more effective competition throughout the world and enahnce the service provided to clients. Following the merger, the two companies saw significant opportunities for growth in brokerage income and considerable scope for improved operating efficiency. Willis shares were suspended on Friday at 437p. When trading restarted they dropped sharply to 393p. Stewart Wrightson shares rose to 576p at 0835 gmt from a suspension price of 499p.

The Bank of Japan will tomorrow sell 1,200 billion yen in bills from its holdings to help absorb a projected money market surplus of 2,100 billion, money market traders said. Of the total, 800 billion yen will yield 3.6004 pct on sales from money houses to banks and securities houses in 34-day repurchase agreements maturing on August 3. The other 200 billion yen will yield 3.6003 pct in 43-day repurchase accords maturing on August 12. The remaining 200 billion yen will yield 3.6503 pct in 50-day repurchase agreements maturing on August 19. The repurchase agreement yields compare with the 3.5625 pct one-month commercial bill discount rate today and 3.6250 pct on two-month bills. They attributed the projected surplus mainly to 1,900 billion yen of government tax allocations to local governments and public bodies.

OPEC output for the second half of 1987, including that of Iraq, will be above the official 16.6 mln barrels per day (bpd) output ceiling agreed by OPEC Saturday, Kuwait oil minister Sheikh Ali al-Khalifa al-Sabah, said. Iraq refused to sign the pact, by which OPEC maintained its ceiling at 16.6 mln bpd for both the third and fourth quarters of 1987. In December, OPEC set a provisional fourth quarter level of 18.3 mln bpd, now cut back to the third quarter target. Ali told a news conference that including Iraq, "OPEC third quarter output will be between 17.5 and 17.7 mln bpd while fourth quarter output will be nearly 18 mln bpd" Ali did not detail what effect he thought these production levels would have on prices. Iraq has an official first half quota of 1.466 mln bpd, rising to 1.54 mln in the second half, but has refused to adhere to it and has recently been producing around two mln barrels per day, exporting it through pipelines to Saudi Arabia and Turkey. Iraq's export capacity will be further boosted when a 500,000 bpd oil pipeline via Turkey comes on stream in about September. Iraq has been insisting on a quota equal to its Gulf War enemy Iran, which has a quota of 2.255 mln bpd, rising to 2.369 mln in the second half. Ali said the position of the 400,000 bpd production from the Neutral Zone between Saudi Arabia and Kuwait, which has been supplied to Iraq as war relief crude, was fixed. "We will not discuss it. There will not be any change," he said. Ali said the conference, which began Thursday and ended Saturday evening, had been too short for all necessary problems to be adressed. "We are overdoing it in holding too short a meeting. We sweep a lot under the carpet," he said. Ali said the problem of price differentials between the prices of various OPEC crudes had not been dealt with properly at the meeting. Ali said "The problem of differentials is a real one. I would hate to be producing today a light crude and that problem has not been dealt with properly. Light crudes are overpriced relative to heavy crudes." Asked if the issue of differentials would be raised at the next OPEC meeting to be held in Vienna on December 9, Ali said "If my crudes are affected I will raise the issue, I will not do the work of another minister." Kuwait's own crudes range from medium to heavy grades. OPEC reintroduced fixed prices on February 1, with a spread of 2.65 dlrs a barrel between its lightest and heaviest crudes.

Exxon Co U.S.A. said it is extending marketing of its mid-grade unleaded gasoline, Exxon Plus, into the Houston and Dallas/Fort Worth metropolitan areas beginning early next month. Exxon Corp's domestic subsidiary is already marketing the 89-octane unleaded gasoline along much of the East Coast. As it introduces the third unleaded grade, Exxon noted, it no longer offers a leaded gasoline in the market, except in some rural areas where leaded gaosline will be made available to distributors who have a substantial need for the product to serve customers whose equipment was designed for leaded fuel.

Shr four cts vs one ct Net 335,000 vs 67,000 Rev 10.1 mln vs 8.7 mln Avg shares 7,933,000 vs 8,553,000 Six Months Shr seven cts vs two cts Net 570,000 vs 133,000 Rev 19.9 mln vs 16.8 mln Avg shares 7,952,000 vs 8,551,000 NOTE: Qtr includes extraordinary gain of 125,000 dlrs, or one ct a share, while six months' net includes gain of 150,000, or two cts a share.

U.S. moves to increase its warships in and around the Mideast Gulf could trigger more attacks on unprotected merchant ships but run little risk of sparking a direct military clash with Iran, diplomats said. They said the American decision inevitably carries some risk of armed confrontation, but Iran -- despite its blunt rhetoric -- would want to avoid this as much as Washington. "As Iran knows very well, what America is bringing into the Gulf could do serious damage," said one western diplomat. Diplomats see the greatest potential danger in more attacks on "soft targets" such as merchant shipping not protected by American or other western navy vessels patrolling the Gulf. The risk of Iranian attack on U.S. Warships or Kuwaiti oil tankers carrying the U.S. Flag and under naval escort is rated by diplomats as low. However, "There is the threat that the Iranians, seeing these heavily protected U.S.-flag tankers, will go for softer targets," one diplomat said. Tehran Radio quoted Iran's top defence spokesman Ali Akbar Hashemi Rafsanjani as saying yesterday that Washington was "moving to the brink of an armed encounter with us." The U.S. is increasing its Gulf fleet from seven to 10 warships and sending the refurbished battleship Missouri to patrol just outside the Strait of Hormuz. The build-up ties in with U.S. plans to start escorting Kuwaiti oil tankers next month, which have been re-registered to fly the American flag to give them naval protection. Shipping serving Kuwait has come under repeated attack by Iran, angered at the emirate's war backing of Iraq. Concern in the region has mounted over the threat posed by Chinese-made Silkworm missiles, which the U.S. says Iran is preparing to deploy near the Strait of Hormuz. The Missouri, with its four-escort flotilla, is likely to make Iran think twice about using the missiles, diplomats said. A military source in the Gulf has said Iran also set up a launching site for the Silkworms on captured Iraqi soil in the Faw peninsula, within range of Kuwait. "But anything that went as far as a direct attack on Kuwaiti territory would be a very serious escalation" likely moving world opinion against Iran, remarked one. Some diplomats believe Iran could also consider carrying out reprisals against the United States outside the Gulf. Rafsanjani, who is also parliamentary leader, predicted last Friday "a river of blood" throughout the world in the event of any U.S. strike against Iran. Western diplomats said Iran, which Washington has accused of being behind state-sponsored terrorism, had no demonstrable capacity to carry out attacks in the U.S. itself. Diplomats saw few potential targets in Lebanon now that most Americans have left in the wake of kidnappings linked to pro-Iranian groups. But Europe and Asia were potential trouble-spots, and Kuwait was one of the most obvious targets. Any backlash was likely to take the form of sabotage or other action to make it difficult to blame Iran, they added.

A group of firms led by Gabelli Group Inc told government regulators it holds a 28.5 pct stake in Digiorgio Corp common stock, and said two partnerships making up part of the group may seek control of the company. In a filing with the Securities and Exchange Comission, the group of firms said it holds 2,430,100 shares of Digiorgio common stock. Of the total, 2,059,400 shares are held by GAMCO Investors Inc and Gabelli Funds Inc. for investment purposes, the group said. Gabelli-Rosenthal and Partners LP and G and R Partners, which hold the remaining 370,700 Digiorgio common shares, told the SEC their "purpose is to ultimately obtain control of Digiorgio contingent upon approval of Digiorgio," according to the SEC filing. As previously reported, Gabelli and Co Inc, acting as investment advisor to a group including Gabelli-Rosenthal, proposed on June 25 to acquire all Digiorgio common shares for a per share price of 20 dlrs in cash, a subordinated note with a face value of eight dlrs, 14 pct redeemable preferred stock, and one common share of the post-buyout company. The June 25 buyout proposal, which remains open until July 17, also provides that key members of Digiorgio management and some of its directors would be invited to remain with the firm and participate in the group acquiring the company. The proposal is also subject to a due diligence review, execution of a merger agreement, arrangement of financing and receipt of government approvals, all of which Gabelli and Co said could be completed within 60 days. Between April 13 and June 26, the entire group led by Gabelli Group Inc made net purchases of 403,600 Digiorgio common shares at 22.20 dlrs to 26.79 dlrs a share.

Vernitron Corp said it has set a new record date for shareholders entitled to vote on the proposed merger of Vernitron Corp with SB Holding Corp for July 10. Vernitron, which manufactures electromechanical components and related products and services, said it expects that a special meeting of shareholders will be held in August. Vernitron said that SB Holding holds 55.2 pct in Vernitron, resulting from a tender offer in November 1986.

U.S. House Speaker Jim Wright said he would question President Reagan tomorrow about his plan to protect Kuwaiti oil tankers with U.S. warships from attacks by Iran in the Gulf. House and Senate Democrats, who control Congress, have been critical of Reagan's plan but have not decided how or if they should try to pass legislation to prohibit it. Wright, a Texas Democrat, told reporters the Administration had gone ahead with plans to reflag the Kuwaiti tankers as U.S. ships without asking Congressional leaders for their advice.

U.S. Minerals Exploration Co said it and Pegasus Gold Inc of Spokane, Wash, officially commissioned a new gold, zinc and lead producing mine. U.S. Minerals said the new Montana Tunnels Mine near Helena, Mont, is expected to reach full production in August 1987. U.S. Minerals said the mine is designed to operate at an average of 12,500 tons or ore per day and is projected to produce 95,000 ounces of gold in 1988, plus significant quantities of silver, lead and zinc. U.S. Minerals said it has a 50 pct net profit royalty interest in the mine after payback of development costs.

Period ended May 31 Shr 1.81 dlrs vs 1.45 dlrs Net 113,752,000 vs 90,902,000 Revs 1.12 billion vs 1.20 billion NOTE: Full name is General Public Utilities Corp

Year ended March 31 Shr loss three cts vs profit 10 cts Net loss 58,285 vs profit 182,039 Sales 3,857,122 vs 3,188,555 Avg shrs 2,108,080 vs 1,891,250

Seton Co said its board of directors unanimously approved an agreement and plan of merger providing for the merger of Seton with a unit of S Acquisition Corp, a New Jersey company. Seton said its board of directors unanimously approved the merger in a meeting held today. Seton said the agreement and plan of merger provides that all shares of Seton Co common stock not held by S Acquisition Corp, or its units, will be converted upon the merger into the right to receive 15.88 dlrs per share in cash.

Shr 19 cts vs 16 cts Net 502,000 vs 401,000 Revs 8,791,000 vs 6,650,000 Six mths Shr 38 cts vs 29 cts Net 989,000 vs 745,000 Revs 16.3 mln vs 12.5 mln

British Petroleum Company PlC has completed its merger with Standard Oil Co of the U.S. , raising its holding to 100 pct from 55 pct, BP said in a statement. The acquisition was made through BP's wholly-owned subsidiary . BP took a 25 pct stake in Standard in 1970, raising its stake to 53 pct in 1978 and 55 pct in 1984. BP chairman Sir Peter Walters will be chairman of BP America, while Robert Horton is to be vice-chairman and chief executive officer, with Frank Mosier as president. BP said further details would be released on July 21.

Shr 20 cts vs 12 cts Net 34,088,000 vs 18,727,000 Revs 340.4 mln vs 200.3 mln Nine mths Shr 53 cts vs 31 cts Net 88,661,000 vs 49,059,000 Revs 926.5 mln vs 560.1 mln Avg shrs 151.1 mln vs 137.0 mln

United Medical Corp said it will sell its Trotter Treadmills Inc unit. The company said the sale is in line with its strategy of refocusing on its health care service business. It said it had received interest from several parties, but no agreement has yet been reached. Trotter Treadmills makes motorized treadmills for the exercise enthusiast and fitness club market. It said its sales for this year are projected to be over 10 mln dlrs.

The United States responded to an apparent escalation of Iranian rhetoric with continued assurances that its expanded military force in the Gulf would play purely a deterrent role. "I can only emphasize that our role there is deterrent, that we're going to be assuring safety for American shipping and that that shipping is not related to the war itself," State Department spokesman Charles Redman told reporters. He was asked about Iranian claims that the United States was moving towards the brink of armed conflict with Iran. Tehran Radio quoted defence spokesman Ali Akbar Hashemi Rafsanjani telling a visiting Nicaraguan delegation yesterday, "At the moment the United States is moving towards the brink of an armed encounter with us. "We are not concerned about this and believe that the U.S. Presence in the war will make our nation even more serious. We are determined to stand firm and will certainly win." The United States disclosed last week it was beefing up its Gulf fleet from seven to 10 warships and also sending the refurbished battleship Missouri to patrol just outside the strategic Strait of Hormuz, entrance to the Gulf. The buildup ties in with U.S. Plans to escort Kuwaiti oil tankers which have been re-registered to fly the American flag and gain naval protection against Iranian attacks. Asked about the Iranian rhetoric, White House spokesman Marlin Fitzwater said, "We won't have any comment or response to the Iranian statements. Our position has been made clear about the status of events in the Gulf. We want an end to the war with no winners and no losers and any activities or statements that tend to prolong the war or increase hostilities are not helpful or welcome." Redman said he could not independently confirm reports that Iran has offered to halt attacks on Gulf shipping.

said it is not involved in the Securities and Exchange Commission's administrative proceeding against Allied Stores Corp, which Campeau acquired at the end of last year. In a statement, the company said, "The SEC action involves events that occurred prior to Campeau's acquisition of Allied relating to the alleged failure of Allied to make certain disclosures. Consequently, Campeau is not subject to the procedings."

Fortune Systems Corp said its shareholders approved the sale of its computer hardware business to SCI Technologies Inc. The transaction is expected to close this week. At its annual meeting, Fortune said shareholders also voted to change Fortune's name to Tigera Inc. Its principal subsidiary is Tigeral Corp.

Kellwood Co said it signed a definitive agreement to acquire Robert Scott Ltd Inc, David Brooks Ltd Inc and Andrew Harvey Ltd of Dedham, Mass. Terms were not disclosed. Combined sales of the three companies in 1986 were over 50 mln dlrs, it said. The deals are expected to be completed by July 31, Kellwood said.

Dixons Group Plc said shareholders at a special meeting of Cyclops Corp approved the previously announced merger of Cyclops with Dixons. Under the terms of the merger, Dixons said the remaining public Cyclops shareholders are to receive 95 dlrs a share. Dixons also said the previously announced sale of Cyclops steel and nonresidential construction businesses to a former Alleghany Corp subsidiary is expected to be completed June 30. After the sale, Cyclops will retain its specialty retailing business and change its name to Silo Inc, said Dixons.

Japan said it understood why the U.S. Attacked an Iranian oil platform on Monday. "Japan, deeply concerned over the increasing threat to the ships navigating in the Gulf, understands the circumstances that have led the United States government to take these measures," the Foreign Ministry said in a statement. The statement added that the threat to free and safe navigation had increased after the missile attack on a U.S.-flagged tanker in Kuwaiti territorial waters last Friday.

President Corazon Aquino said the Philippines was closely monitoring interest rates in the wake of Monday's record drop on Wall Street and steep declines in Manila and other Asian stock markets. "We will monitor these developments closely and will continue to hope that they do not precipitate large declines in economic activity around the world," Aquino told a meeting of 13 major Philippine business groups. "The Philippines, as a trading country in the world economy, depends on the continued health and growth of both the world economy and the world trading system," she said. The Manila Stock Exchange composite index plunged 105.49 points or 11.79 pct by the midday close to 789.54, depressed by the record 508 point fall of the Dow Jones industrial average on Monday. "The Philippines, in addition, as a large borrower nation, is affected by developments in interest rate levels around the world and will carefully monitor the impact of these developments on interest rates, on gold and on commodity prices," Aquino said. "We welcome the statements from world leaders that urge calm in the present difficult situation," she added.

Oil prices would skyrocket for a time if conflict in the Gulf closed the Strait of Hormuz, but oil supplies could be adjusted to take care of world demand, Indonesian Energy Minister Subroto said. He made no explicit reference to the latest U.S. Military action in the Gulf. But in an address to a conference of the Indonesian Petroleum Association, he said, "If worst comes to worst and say the flow of oil through the Straits of Hormuz is completely shut off, I believe the world oil supply, given time to adjust, can take care of the situation." "But this is not to say that prices, at least for a short duration, will not skyrocket as speculators take advantage of the situation," he declared. Tensions in the Gulf, however, usually had a relatively short-term impact on prices, he added. Assessing future price trends, he said, "Short-term spot prices will probably still fluctuate, but they will most likely hover around the official Opec price basket of 18 dlrs per barrel. "The upward deviations, however, are likely to be greater than the downward ones." "The balance between supply and demand in the short term will still be delicate," he added. "Non-Opec production may still go up, competing with Opec for the expected additional increase in world demand." Subroto, a member of Opec's three-man quota committee which has been touring cartel members, said speculation may play havoc with spot prices, but Opec was trying to stabilize the situation by urging cooperation by non-Opec producers. In the medium term, non-Opec production would reach a plateau in the early 1990s, leaving Opec much stronger, he said.

An Iranian shuttle tanker reported spotting a floating mine in the central Gulf on Tuesday about 50 miles west of Lavan Island, regional shipping sources said. The Khark III, owned by the National Iranian Tanker Co, gave the position of the mine as 27 degrees 14 minutes north, 52.06 east. There was no indication of measures being taken against the mine, which is in Iranian territorial waters.

West German Finance Minister Gerhard Stoltenberg said the Louvre accord was vital to West Germany. Stoltenberg told a news conference "Given West Germany's unusually high dependence on world trade and exports, it is vital for West Germany ... To continue its constructive contribution to trusting (international) cooperation on the basis of the Louvre accord." Some monetary analysts have speculated that inflation-conscious Bundesbank vice president Helmut Schlesinger may have been leading the central bank to a course of tighter monetary policy. Stoltenberg is due to attend a routine Bundesbank meeting on Thursday in West Berlin. He declined to forecast what, if any, policy decisions the Bundesbank might take.

Iranian Premier Mir-Hossein Mousavi reiterated his country would retaliate for U.S. Navy attacks on Gulf oil platforms. "The U.S. Attack on Iran's oil platforms jeopardises our national sovereignty ... And we will retaliate properly for this perfidious American aggression," Mousavi told a news conference in Damascus. On Monday U.S. Navy warships blasted the Rostam platform, and Navy personnel stormed a second platform a few miles away. Washington said the operation was aimed at destroying positions used by Iran to track and assault neutral Gulf shipping.

The Indonesian state-owned oil company Pertamina has found new offshore oil and gas resources in East Aceh, on the western tip of northern Sumatra, a company spokesman said. The spokesman said the discovery was made at the GOS IA-1 offshore exploratory well about 38 kms east of Langsa in Aceh. "Oil and gas are found in sand layers at the depth of 2,300 metres within the Baong formation," he said. He said preliminary tests showed that the well could flow oil at the rate of 1,320 barrels a day with 50 degrees API at 20 degrees centigrade through a 5/8 inch choke. "The well also flows natural gas at the rate of 12 mln standard cubic feet a day," he added. GOS IA-1 well, located at a water depth of 41 metres, was drilled under a production sharing contract between Pertamina and Japex North Sumatra Ltd, each having 50 pct shares. "Petroleum operations are to be carried out by Pertamina as operator through a joint operating body established by the two companies," the Pertamina spokesman stated. The contract covers the Gebang block contract area. The two companies have previously completed the drilling of GOS IIA-1 exploratory well, around 14 kms south of GOS IA-1.

Iran is preparing lawsuits to file for compensation from the U.S. Over the American raid on its Gulf oil platforms, Tehran radio quoted Iranian Oil Minister Gholamreza Aqazadeh as saying. The lawsuits would be filed with competent international bodies once the exact damage was calculated, he was quoted telling a news conference in Tehran. He earlier estimated the damage from the U.S. Raid at about 500 mln dlrs. The rigs, one of which was heavily shelled by four American destroyers on Monday, were still burning almost 24 hours after the attack, he said. Aqazadeh said the half-billion-dollar damage estimate was preliminary. Washington has said the attack was in response to a missile strike against the American-flag tanker the Sea Isle City in Kuwaiti waters on Friday. He denied that there was any military hardware on the rigs "except a 23 mm machinegun for air defence." Reacting to Weinberger's remark that Washington considered the case closed, Aqazadeh said: "Iran will also consider the case closed after its retaliatory measure." Iranian officials have said their response would not be limited to the Gulf and U.S. Interests around the world might come under attack. Aqazadeh said the U.S. Military presence in the Gulf aggravated the regional crisis and made access to the region's oil more difficult, but he did not see the U.S. Attack significantly affecting oil prices. IRNA said he gave no explicit reply when asked if the attack would prompt Iran to block the Hormuz Strait at the entrance to the Gulf. "If Iran cannot use the Hormuz Strait, no other country can either, and this would be to everyone's harm," the radio quoted him as saying.

Iranian Premier Mir-Hossein Mousavi reiterated his country would retaliate for U.S. Navy attacks on Gulf oil platforms. "The U.S. Attack on Iran's oil platforms jeopardises our national sovereignty ... And we will retaliate properly for this perfidious American aggression," Mousavi told a news conference in Damascus. On Monday U.S. Navy warships blasted the Rostam platform, and Navy personnel stormed a second platform a few miles away. Washington said the operation was aimed at destroying positions used by Iran to track and assault neutral Gulf shipping.

Shr profit four cts vs loss 56 cts Net profit 2,043,000 vs loss 25.7 mln Revs 111.3 mln vs 64.7 mln Avg shrs 48.3 mln vs 45.8 mln Nine mths Shr loss 18 cts vs loss 63 cts Net loss 8,695,000 vs loss 28.4 mln REvs 308.4 mln vs 228.4 mln Avg shrs 48.0 mln vs 44.8 mln NOTE: 1986 net includes tax credits of 1,646,000 dlrs in quarter and 3,401,000 dlrs in nine mths. 1987 nine mths results restated for pooled acquisition of Bidtek Inc.

GAF Corp said its board has authorized the repurchase from time to time of up to seven mln of its common shares, or about 21 pct, for cash in open market purchases or private transactions. The company said it repurchased 2,100,000 shares under an April authorization to buy back up to three mln shares and authorization for further repurchases under the old program has been withdrawn. Yesterday, GAF said a group led by chairman Samuel J. Heyman has decided to reconsider its offer to acquire GAF. GAF said a revised offer by the group is still possible.

Shr 1.72 dlrs vs 87 cts Net 330,000,000 vs 167,000,000 Sales 3.36 billion vs 2.74 billion Avg shrs 192,200,000 vs 191,700,000 Nine mths Shr 4.62 dlrs vs 2.95 dlrs Net 888,000,000 vs 564,000,000 Sales 9.78 billion vs 8.31 billion Avg shrs 191,100,000 vs 191,500,000 NOTE: Earnings include a loss of 3.0 mln dlrs, or one ct a share in the 1986 quarter from early extinguishment of debt Earnings include losses in the nine months of 3.0 mln dlrs, or two cts a share vs 8.0 mln dlrs, or four cts a share from early extinguishment of debt

Chemical Bank and Marine Midland Banks Inc said they are cutting their prime lending rate to 9-1/4 pct from 9-3/4 pct, reversing an increase that they announced just last week. The reduction is effective immediately. No other major U.S. bank had followed the lead of Chemical and Marine Midland, preferring to keep their prime rates at 9-1/4 pct while they waited to see what course money market rates would take. Following Monday's record fall in Wall Street stock prices, money market rates fell sharply on Tuesday as investors ploughed proceeds into short-term instruments and the Federal Reserve said it is prepared to provide liquidity to support the economy and the financial system. Eurodollar deposit rates in London fell by as much as 9/16 percentage point, Treasury bill rates fell by as much as half a point (after falling between 59 and 84 basis points on Monday), and the Fed funds rate dropped to 7-1/4 pct from Monday's average of 7.61 pct. Speculation even surfaced of a discount rate cut to calm the markets, dealers said.

Shr 31 cts vs 18 cts Net 90 mln vs 51 mln Sales 1.58 billion vs 1.42 billion Avg shrs 274 mln vs 269 mln Nine Mths Shr 79 cts vs 42 cts Net 233 mln vs 129 mln Sales 4.58 billion vs 4.22 billion Avg shrs 238 mln vs 267 mln NOTE: 1987 results include Caremark Inc from August 3. Caremark acquisition reduced 1987 nine months net by five cts, offset by a three ct gain from the sale of securities. 1986 third quarter net excludes gains from discontinued operations of 12 mln dlrs or four cts; a gain from sale of discontinued operations of 285 mln dlrs or 1.06 dlrs; and a charge from early repayment of debt of 58 mln dlrs or 22 cts. 1986 nine months net excludes gains from discontinued operations of 38 mln dlrs or 14 cts; a gain from sale of discontinued operations of 285 mln dlrs or 1.06 dlrs; and a charge from early repayment of debt of 58 mln dlrs or 22 cts.

Shr 75 cts vs 64 cts Net 11,174,000 vs 7,408,000 Sales 218.8 mln vs 106.3 mln NIne Mths Shr 1.80 dlrs vs 1.54 dlrs Net 23,762,000 vs 16,603,000 Sales 414.8 mln vs 295.9 mln NOTE: 1987 net income excludes preferred dividends of 2.4 mln dlrs in the quarter and 2.7 mln dlrs in the nine months compared with 188,000 dlrs and 563,000 dlrs in 1986.

The United States and India have not yet agreed on a food aid package to help the drought-stricken Asian country, Agriculture Secretary Richard Lyng said. Lyng told Reuters in an interview that the two countries have been discussing a package but that he did not expect the specifics of the offer to be announced during Indian Prime Minister Rajiv Gandhi's visit here this week. "We have been talking about the potential needs that India might have for both their commercial market and purchases needs as well as the possibilities of assistance," Lyng said. "At this point, there is no detailed plan or program. The amounts of what commodities are uncertain. But we have indicated to the Indians that we stand ready to assist in whatever way they deem most valuable," he said. There has been speculation in trade circles that USDA would offer India subsidized vegetable oil under the export enhancement program and donate surplus corn under Section 419 of an amended 1949 law. Lyng indicated the two countries have been unable to agree on the mix of concessional and commercial aid, and that Washington would prefer the package include something other than donated food. "The Indians are capable of purchasing a lot, of taking care of themselves. India is a country that has come a long way in its ability to produce food and they have a great pride in that," Lyng said. "We (the United States) obviously, with the surpluses we still have of many commodities..., would like to share in the import business the Indians do, and then we have some, as we always do, compassion for the people of India and would like to cooperate with them," he said. Lyng said he had no plans to meet with Indian officials during Gandhi's visit here, adding, "I just don't know of anything that might be announced specifically." Asked if "the ball was in the Indians' court," he said, "Yes." Gandhi is to leave Washington Tuesday evening.

Two large container cranes donated by the Danish International Development Agency (DANIDA) have arrived in Dar es Salaam where they will help to increase the port's cargo handling capacity, port officials said. The two new container cranes join one Danish container crane already installed in the port, which is an important trade outlet for Tanzania, Zambia, Malawi and eastern Zaire. Five more cranes from Finland are due to arrive soon, increasing the container terminal's handling capacity to 120,000 units per year from 30,000 at present, the officials said.

An unexpectedly heavy 4.4 billion stg surge in U.K. September sterling bank lending is unlikely to nudge the Bank of England towards tightening monetary policy as long as sterling remains in its present robust state, economists said. An acute crisis of confidence in equity markets over the past two days will in any case subdue personal consumer credit demand which has largely been behind growth in lending. "In the normal course of events the markets would have been extremely worried about that figure," noted Peter Spencer, U.K. Economist with Credit Suisse First Boston. After an initial dip in reaction to the bank lending data, which compared won stg August rise, U.K. Government bonds (gilts) soared as investors continued to flee from plummetting equities into the relative security of government securities. Equity markets dropped sharply on the news, touching a day's low of 1,766.7 on the FTSE 100 index after the data, before staging a recovery. Sterling held its buoyant tone throughout. U.K. Money market rates, in a similarly calm response, resumed the slightly easier trend of earlier in the morning after little more than a token blip as the figures came out. Noting that such a huge rise in credit extended by banks would under other circumstances have prompted market fears of a rise in clearing bank base rates from the current 10 pct, "With the financial markets doing what they're doing, that's the last thing the Bank of England would want to do," Spencer said. "The monetary situation is clearly very bad but as long as sterling is firm, the authorities are unlikely to put rates up," said Kevin Boakes, chief U.K. Economist at Greenwell Montagu Gilt Edged. Boakes pointed to a rise in the narrow money measure M0 to 5.2 pct year-on-year from August's 4.5 pct growth, which he said must cause some concern at the Treasury. But "The fact that overall broad money growth has slowed down is a rather encouraging sign," noted Paul Temperton, U.K. Economist with Merrill Lynch Capital Markets. He pointed to a fall in the year-on-year growth rate of the M3 broad money aggregate to 19.5 pct in September from August's 22 pct. It was concern about credit growth which prompted the Bank of England to engineer a one point rise in U.K. Bank base rates to 10 pct in early August, caution endorsed subsequently by news of a massive 4.9 billion stg July rise in bank lending. Temperton noted that a particular focus of bank worry in that period had been the behaviour of U.K. Asset markets. Housing and equities were the key two asset markets in influencing consumer behaviour, he said. In the light of the precipitous falls on U.K. Equity markets in the past few days, "There will almost certainly be a straightforward impact on consumer spending and on retail sales," Temperton said. "Almost certainly we can look forward to slower growth in consumer borrowing if the equity shakeout continues," he added. "I think the stock market has decided that the bank lending figure is a thing of the past...We are talking about a very serious panic and a flight to quality," Spencer said. A U.K. Treasury official said that it was important to look at all the monetary information, not just the bank lending, adding that monetary aggregates were growing much more slowly than bank lending. Senior banking sources noted that the surge in bank lending was evidence of the continuing recent trend of fairly heavy personal sector borrowing. Figures from the Banking Information Service showed personal sector lending by U.K. Clearing banks rose by 1.66 billion stg in September after a 978 mln stg August rise. Much of the rise reflected quarterly interest payments.

Shr 1.11 dlrs vs 59 cts Net 42.6 mln vs 22.2 mln Sales 531.8 mln vs 407.4 mln Nine mths Shr 2.45 dlrs vs 1.27 dlrs Net 93.7 mln vs 48.1 mln Sales 1.44 billion vs 1.12 billion

Service Corp International said its Investment Capital Corp unit sold its entire 14.8 pct stake in Capital Southwest Corp common stock, and no longer holds any Capital Southwest shares. In a filing with the Securities and Exchange Commission, Investment Capital said it sold 280,000 shares of Capital Southwest common stock since September 21 at 19.56 dlrs to 21.50 dlrs a share. No reason was given for the recent sales.

Shr 2.03 dlrs vs 1.53 dlrs Net 146.4 mln vs 110.3 mln Nine months shr loss 3.99 dlrs vs profit 4.62 dlrs net loss 283.3 mln vs profit 330.5 mln Avg shrs 71.08 mln vs 69.26 mln Assets 56.9 billion vs 50.7 billion Deposits 30.4 billion vs 25.9 billion Loans 26.3 billion vs 25.7 billion Note : Nine month loss reflects 700 mln dlr increase in loan loss provisions. Without the tax benefit, third-quarter net income would have been 127.6 mln dlrs, up 16 pct or 17.4 mln dlrs from the third quarter of 1986. Non-interest income totaled 342.6 mln dlrs in the third quarter, up 47 pct or 109.7 mln dlrs, largely due to increased income from foreign exchange trading, fees and commissions. Foreign exchange trading income totaled 71.3 mln dlrs, up 44.3 mln from a year ago. Provision for loan losses in the third quarter was 20 mln dlrs versis 40 mln a year previously. At September 30, the provision for loan losses jumped to 1.30 billion dlrs from 455 mln at the same time last year.

Trans World Airlines Inc said chairman Carl C. Icahn has withdrawn his proposal to acquire the TWA shares he does not already own due to the deterioration in market conditions. Under the proposal Icahn would have paid for each TWA share 20 dlrs in cash and 25 dlrs face amount of 12 pct subordinated debentures due 2007. TWA said Icahn reserves the right to make a subsequent proposal at some future date on the same terms or different terms.

Iran's top war spokesman Ali Akbar Hashemi Rafsanjani on Tuesday called the U.S. Attacks on two of its Gulf oil platforms an escalation and promised retaliation. "God willing, we will carry out our duty in the coming days and make them sorry," said Rafsanjani in a speech to Parliament later broadcast by Tehran Radio. The Tehran leadership have been quick to threaten vengeance after the U.S. Raids on the rigs, one of which was destroyed. President Ali Khamenei, Prime Minister Mir-Hossein Mousavi and now Rafsanjani within 24 hours of the U.S. Action have all vowed retaliation. Rafsanjani, the parliamentary speaker, said, "It is not a threat or an attempt at intimidation when we say we will respond to aggression -- it is a reality and we have proved it in practice." He added that the American attack "squares neither with its superpower image nor its claim of concern with security, nor reason and wisdom." U.S. Warships shelled an Iranian offshore oil platform and American special forces boarded another, destroying equipment. The U.S. Government said the attack was a measured response to an Iranian missile attack on the American-flagged Kuwaiti tanker Sea Isle City in Kuwaiti waters last Friday.

Shr 65 cts vs 47 cts Net 17.7 mln vs 11.9 mln Revs 131.9 mln vs 128.4 mln Nine mths Shr 1.77 dlrs vs 1.02 dlrs Net 49.0 mln vs 27.0 mln Revs 341.7 mln vs 269.5 mln

Shr 38 cts Net 1.3 mln vs 668,000 Nine mths Shr 84 cts Net 2,892,000 vs 2,200,000 NOTE: Company converted to stock ownership in July

Shr 32 cts vs 26 cts Net 722,000 vs 597,000 Nine mths Shr 92 cts vs 69 cts Net 2,100,000 vs 1,500,000 NOTE: full name of company is florida employers insurance co.

Shr 37 cts vs 41 cts Net 1,214,000 vs 1,316,000 Nine mths Shr 1.06 dlrs Net 3,408,000 vs 2,809,000 Assets 204.8 mln vs 176.6 mln Deposit 154.0 mln vs 131.2 mln Loans 125.3 mln vs 100.7 mln NOTE: 1986 nine mths per share figures not available because bank converted to stock form in June of 1986.

The Brazilian Coffee Institute (IBC) has given shippers until close of business on Thursday to submit details of past export performance in order that individual quotas can be allocated, an IBC spokesman said. He told Reuters IBC President Jorio Dauster has confirmed acceptance of National Coffee Policy Council (CNPC) proposals to establish individual export quotas based 65 pct on export performance, 25 pct on stocks and 10 pct by auction. Shippers can choose their best period of 12 consecutive months between April 1, 1985, and September 30, 1987, to be used for calculating the export performace portion. The IBC will total all the figures, calculate each shippers participation and use this as a basis for allocation of individual quotas, the IBC spokesman said. He said the IBC has already settled with the Sao Paulo Mercantile Exchange how the auction system will operate. Shippers can bid a premium over the contribution quota payable on coffee exports and the succesful bidder will add this premium to the contribution quota when he submits his export sales declaration form. Auctions will not start until after the opening of export registrations. The spokesman could not say when this might be but trade sources said an announcement could come at the end of the week, opening registraions from Monday. A meeting has been set for tomorrow in Brasilia of the CNPC's export marketing committee to establish a system for allocating the 25 pct of export quotas based on stock levels, the spokesman added. A system of individual export quotas is being reestablished in Brazil - a previous system was abandoned in 1985 - to ensure shipments are kept in line with the country's ICO quota.

Shr 31 cts vs 26 cts Net 3,308,000 vs 1,512,000 Revs 6,467,000 vs 2,590,000 Avg shrs 10.7 mln vs 5,788,594 Nine mths Shr 1.32 dlrs vs 1.17 dlrs Net 10.2 mln vs 3,041,000 Revs 18.7 mln vs 5,682,000 Avg shrs 10.7 mln vs 3,780,626

Commerce Undersecretary J. Michael Farren opposed language in the trade bill before Congress to limit foreign takeovers of U.S. companies. "Anything that would serve to have a chilling effect on foreign investment is going to cost us jobs and economic growth," Farren said before a congressional coittee. House and Senate negotiators are ironing out differences in trade bills passed by both chambers. Once the negotiators reach agreement, the bill will be sent to President Reagan for his signature.

The United States warned Iran again that it was ready to retaliate for any further hostile military action in the Gulf as U.S. warships began escorting another tanker convoy southward from Kuwait. U.S. Defense Secretary Caspar Weinberger said the U.S. sought no further Gulf hostitilies but was ready to deal with any Iranian response to Monday's attack on an Iranian oil rig. Several hours later, the Pentagon announced that U.S. warships had begun escorting two U.S. flag Kuwaiti tankers -- the 80,000 ton product carrier Ocean City and 46,000 ton liquified petroleum tanker Gas King -- southward from Kuwait. The Defense Department said the 12th such convoy of U.S. flagged Kuwaiti tankers through the Gulf began at 0230 EDT under the escort by the U.S. guided missile frigate Ford. It did not say what oth U.S. warships were in the area. "It (the convoy) is now progressing uneventfully in the central Gulf," the Pentagon statement said. Asked on NBC's "Today" program if the United States was prepared for a major war with Iran, Weinberger said, "Well we are prepared I think for whatever eventualities emerge from this situation but we don't look on it as a war."

U.S. Agriculture Secretary Richard Lyng said the United States will continue its policy of subsidizing farm exports to regain lost markets until there is a global agreement to end such subsidies. In an interview with Reuters, Lyng also acknowledged he was troubled by the prospect that the export enhancement program (EEP) could prove so indispensable to boosting U.S. exports that the U.S. would have difficulty abandoning it. "Yes, I'm troubled with that a little bit," he said. "There's no question about it, the longer you feed the calf on the cow, the longer it is to wean it." In recent months, USDA has offered subsidies on a growing list of commodities to an increasing number of countries. Lyng called U.S. and European Community export subsidies "just plain nonsensical as a long-term policy" and said he saw an end to the expansion of the EEP. "I'm sure there's an end to the expansion, but we are doing this to accomplish our goal which is to regain the markets that we've lost, to keep our products competitive and to let those, particularly the European Community, who, we are convinced, are the worst offenders in terms of the export subsidization, that we are prepared to continue to do this until we can come to some agreement to put an end to it," he said.

Shr 54 cts vs 44 cts Net 706,111 vs 579,576 Revs 21.7 mln vs 23.2 mln Nine mths Shr 1.26 dlrs vs 44 cts Net 1,657,634 vs 582,001 Revs 63.1 mln vs 68.6 mln NOTE: Full name of company is Frozen Food Express Industries Inc.

Goodman Fielder Ltd of Australia said in a statement that it had acquired 31 mln ordinary shares in Ranks Hovis McDougall Plc (RHM), bringing its stake in the company to 29.9 pct or 101 mln ordinary shares. Goodman said it has no intention of making a full bid for the company and would not contemplate doing so over the next six months in the absence of a material change in the circumstances of Ranks. RHM said it regards the stake build-up as a hostile move which is unwelcome and not in the long term interest of shareholders.

Argentina's agriculture secretariat set new support prices for grains and oilseeds, an official statement said. It said the support price for wheat was hiked to 300 Australs per tonne from 250 previously and for sunflowerseed from northwestern Argentina to 450 Australs from 360 previously. It said the price went into effect Monday. The secretariat said the support price of sorghum was increased to 210 Australs per tonne from 200 Australs previously and for maize to 250 Australs from 220 Australs previously.

Shr 17 cts vs 16 cts Net 1,315,000 vs 1,161,000 Revs 43.2 mln vs 36.5 mln Avg shrs 7,916,000 vs 7,490,000 Nine mths Shr 50 cts vs 51 cts Net 3,899,000 vs 3,821,000 Revs 123.7 mln 104.6 mln Avg shrs 7,808,000 vs 7,491,000

1st qtr ended September 26. Shr profit two cts vs loss 20 cts Net profit 156,000 vs loss 1,816,000 Revs 8,751,000 vs 7,123,000

Sept 30 end Primary shr five cts vs eight cts Diluted shr five cts vs eight cts Net 100,000 vs 176,000 Revs 4,027,000 vs 3,649,000 Primary avg shrs 2,212,281 vs 2,189,000 Diluted avg shrs 2,212,281 vs 2,330,866 NOTE: 1986 results includes a tax credit of 90,000 dlrs

Confronted by new hostilities involving U.S. forces in the Gulf, the U.S. Senate voted to end Republican stalling tactics and limit debate on a measure that could give Congress a larger role in Gulf policy. The measure, however, does not require President Reagan to comply with the 1973 War Powers Act as does a related Senate bill. The controversial War Powers Act could require a pullout of U.S. forces from the Gulf. The Senate voted 67-28 to stop a filibuster and limit debate to 30 hours on a bipartisan measure that requires Reagan to report to Congress on Gulf policy within 60 days and calls for a resolution to be passed in the House and Senate on the situation in the volatile waterway 30 days later. The resolution could be about any Gulf-related issue, including an expression of support or of disapproval for Reagan's policy of protecting 11 Kuwaiti tankers from Iran in the waterway. The Pentagon said the 12th U.S.-protected convoy began moving through the Gulf early Tuesday.

Shr loss 24 cts vs loss four cts Net loss 874,986 vs loss 56,182 Revs 402,855 vs not available NOTE: The company made its initial offering in March 1987 and before then had been a development stage company so no sales were posted in 1986.

Sept 30 end Shr profit 15 cts vs loss six cts Net profit 901,000 vs loss 368,000 Assets 1.15 billion vs 773.8 mln

Saudi Arabian Crown Prince Abdullah bin Abdul Aziz was thanked by the Reagan administration for his country's close, and closed-mouthed, cooperation with Washington in the Gulf, a senior U.S. official said. "The Saudis are being very cooperative. It would be nice if the Saudis would go more public, but it's their real estate," said the official who asked not to be named. He declined to describe what sort of help the Saudis were providing, saying that Saudi officials are reluctant to acknowledge their role in the Gulf where the United States has stationed forces to protect shipping lanes. The prince met Vice President George Bush on Monday after U.S. naval forces attacked offshore Iranian oil platforms in what Washington said was retaliation for an Iranian attack on a ship moored off Kuwait and flying the U.S. flag. Asked at the start of the meeting how he felt about the attack, the prince, who is here on an official visit, replied, "I believe what the United States has done is their responsibility as a superpower." The senior U.S. official said his remark was an endorsement of the U.S. attack.

El Salvador will tender October 26 for approximately 26,000 tonnes soybean meal, valued at up to 5.6 mln dlrs, and about 24,500 tonnes bulk corn, with a value of 2.0 mln dlrs, under PL-480 financing, an agent for the country said. It said the country is seeking soymeal with 48 pct protein minimum, 12 pct moisture maximum, and 3.5 pct maximum crude fiber for delivery from November 15-30. The U.S. no. 2 or better yellow corn, with 14.5 pct moisture maximum, is for delivery from November 8-25. Offers on the soymeal and corn are due at 1530 hrs EDT (1930 gmt) Oct 26, and will remain valid until 1000 hrs EDT the next day, the agent said.

The State Department says many U.S. diplomatic missions overseas are on high alert for possible retaliation from Iran for Monday's attack on two Iranian oil platforms by American forces in the Gulf. At the same time, the Pentagon announced on Tuesday that U.S. forces have begun escorting another Kuwaiti tanker convoy southward through the Gulf from Kuwait. The State Department renewed its warning to Americans not to travel to Iran because of what spokeswoman Phyllis Oakley called, "its virulent anti-American policies and support for terrorism." "The threat to Americans has increased significantly," she said in announcing that the department was reiterating advice it last made in January. The department said about 2,600 American citizens live in Iran, the overwhelming majority dual nationalities. Oakley said no specific warning has been issued to U.S. diplomats and Americans living abroad in the aftermath of the U.S. attack on the oil drilling platforms, but "many of our missions are on a high state of alert."

A new convoy of tankers escorted by American warships headed down the Gulf on Wednesday, towards Iranian oil platforms still oozing smoke after having being blasted by U.S. Navy raiders. Some Gulf sea captains were reported to be steering well clear of Iran's Silkworm missiles, however, and frontline emirate Kuwait redeployed air defences to counter the threat. "I think the predominant feeling ... Is of being scared this conflict will escalate," a top West German Foreign Ministry official, Helmut Schaefer, told reporters in Bahrain after a tour of three Gulf states. b Shipping sources said on Tuesday night at least six sea captains had voiced fears that Iran would avenge Monday's U.S. Raids by unleashing more Silkworm missiles at ships plying the Gulf. Belgium decided two minesweepers en route for the Gulf would stay out for the time being following Monday's U.S. Action. But there was no sign that the prospect of more tit-for-tat assaults had reduced the level of shipping activity in the area. Iran, having vowed to react strongly after Monday's U.S. Action, launched a barrage of threats and ridicule. For its part, Washington warned Iran again on Tuesday that it was ready for any further hostile action. Pentagon officials then announced that a U.S. Guided missile destroyer began escorting two Kuwaiti tankers flying the U.S. flag southwards--the 80,000 tonne product carrier Ocean City and 46,000 tonne petroleum tanker Gas King.

CIP Inc, wholly-owned by Canadian Pacific Ltd, is considering building a pulp mill in Texas which would use kenaf fibre instead of wood, CIP president Cecil Slenniken said in an interview. The kenaf plant is a member of the hibiscus family and was artificially developed several years ago. The plant, which has been grown in Southern Texas, reaches a height of 10 feet in three months and is said to produce better quality newsprint than wood pulp, a CIP official said. Slenniken said the company has commissioned studies for a 200,000 tonne capacity pulp mill which would use the fibre but would need partners to begin the project. "We are not yet ready to commit the hundreds of millions of dollars it would take for such a project," Slenniken said. He said CIP has been using the pulp on a trial basis to make newsprint containing 90 pct kenaf fibre and 10 pct softwood fibre at its Trois-Rivieres, Quebec plant. CIP, Canada's second largest newsprint producer, recently launched a 366 mln Canadian dlr newsprint mill at Gold River, British Columbia which is due begin producing 230,000 metric tonnes per year by fall of 1989.

The U.S. Senate on Tuesday backed President Reagan's retaliatory strike against Iranian targets in the Gulf as it moved to take a greater role in making policy in the volatile region. Senators voted 92-1 for a non-binding measure that endorsed Monday's U.S. attack on two Iranian oil platforms in retaliation for an Iranian attack last Friday on a Kuwaiti ship flying the American flag. The measure said the attack was a firm indication of U.S. resolve that Iran "cannot take military action against the United States with impunity." Earlier, the Senate cut off Republican stalling tactics and set a vote on a measure that could give Congress a larger role in making Gulf policy. The measure, however, does not require Reagan to comply with the 1973 War Powers Act, which could lead to a pullout of U.S. forces from the Gulf. While Democrats and Republicans praised the U.S. retaliatory strike, many voiced new fears about the growing U.S. involvement in the Gulf and some demanded that Reagan comply with the War Powers Act.

Shr 41 cts vs 33 cts Net 10.2 mln vs 8,309,000 Revs 193.3 mln vs 157.7 mln Nine months Shr 1.29 dlrs vs 1.02 dlrs Net 32.1 mln vs 25.4 mln Revs 582 mln vs 486.5 mln

National Self Storage said has sold nine storage facilities to Southmark Corp for 37.1 mln dlrs. National Self, a developer of storage space for business records, said the purchase includes nine storage facilties. National Self also said it and Southmark plan a two-year 100 facility expansion program in South Florida and across the country.

The United States invoked the right of self-defense in destroying an Iranian oil platform in the Gulf, the American delegation told the United Nations. Lieutenant General Vernon Walters sent letters about the incident to Security Council President Maurizio Bucci, the delegate of Italy, and Secretary General Javier Perez de Cuellar. U.N. press secretary Francois Giuliani said the Secretary General had no comment on the attack, which followed his appeal last Friday for restraint in the crisis while he pursued efforts to obtain a ceasefire between Iran and Iraq. In his explanation, Walters said the United States took defensive action in response to an Iranian attack against American ships in the Gulf. He cited an Iranian Silkworm missile strike last Friday in Kuwait waters against the United States-flag ship Sea Isle City. Walters said that military forces on the destroyed Iranian platform had engaged in a variety of actions against United States-flag and other nonbelligerent vessels and planes. "In accordance with Article 51 of the United Nations (Charter), I wish, on behalf of my government, to report that United States forces have exercised the inherent right of self-defense under internation law by taking defensive action in response to attacks by . . . Iran against United States vessels in the Gulf," Walters said. Members of the Security Council met behind closed doors on Monday to discuss developments in the Gulf war, but no statement was issued afterwards.

France voiced its comprehension for a U.S. Attack on an Iranian target while calling for a swift halt to the Gulf War to avoid further escalation. "The French authorities reaffirm their attachment to the freedom and security of navigation and to the right of all states to take action under international law and the United Nations charter to halt attacks such as that of October 16," the Foreign Ministry spokesman said in a statement. The United States said its forces destroyed an Iranian oil platform in the Gulf and struck at a second on Monday in retaliation for a recent Iranian missile attack on a U.S.-flagged Kuwaiti ship. Washington said the platforms were used to monitor shipping and to launch small-boat attacks on shipping. The French statement described the target as "an Iranian military platform." But the French statement added that "everything must be done now to avoid that these military developments lead to a new escalation of the conflict."

American lawmakers rallied behind President Reagan for the U.S. strike against Iranian targets in the Gulf but the attack fueled a sharp new White House-Congress debate over limits on his powers to make war. The Pentagon announced on Monday that U.S. warships destroyed a non-producing oil platform used for monitoring Gulf ship traffic and military operations, and also raided a second Iranian oil rig in retaliation for an earlier Iranian attack on a Kuwaiti ship flying the American flag. Many Democrats, who control Congress, and Republicans expressed support for the attack and praised it as an appropriate "measured response." But Democrats and liberal Republicans voiced new fears that the growing confrontation between Tehran and the United States could erupt into a major war, and demanded that Reagan comply with the 1973 War Powers Act, which could lead to a pullout of American forces from the waterway. "Those who contend the strike was necessary must realize their words are easily construed as a tacit endorsement of war with Iran," said Sen Mark Hatfield of Oregon, a Republican.

Italian Prime Minister Giovanni Goria told the cabinet on Monday he was worried about the increased tension in the Gulf, but said America's retaliation against Iran had been limited. A statement issued after a cabinet meeting said Goria had been informed by the United States that it would take action against an Iranian target in the Gulf, but had not known beforehand that the action would involve an attack on an oil platform. "The prime minister expressed his concern over the possible consequences of increased tension in the Gulf, at the same time recognizing the limited character of the American military reaction to the attacks it has suffered in the past few days," the statement said. Goria said Italy's own ships were far from the platform at the time of the attack and the fleet had been advised to follow events with caution. Italy has sent eight ships, including three frigates and three minesweepers, to the Gulf to protect Italian merchant shipping there.

Iranian foreign minister ali akbar velayati, here on a two-day official visit, informed cuban foreign ministry officials on monday on the tense situation in the gulf, diplomatic sources said. They said the envoy's trip, to be followed from tuesday by a visit to nicaragua, could be linked to a possible mediation of the non-aligned movement in the seven-year-old iran-iraq war but they ruled out any prominent cuban role in it. Velayati could not be reached for comment on the U.S. Attack on an abandoned iranian oil rig on monday which tehran vowed to avenge.

Taco Bell Corp, a unit of Pepsico Inc, said it increased its stake in Calny Inc common stock to 1,349,884 shares, or 27.9 pct of the total outstanding, from a previous figure of approximately 1,230,107 shares, or 25.4 pct. In a filing with the Securities and Exchange Commission, Taco Bell said it bought 119,867 Calny common shares on October 15 and 16 at 10.75 dlrs a share. No reason was given for the recent purchases.

Shr 11 cts vs nine cts Net 105,489 vs 88,929 Revs 2,306,697 vs 2,066,636 Nine mths Shr 17 cts vs 14 cts Net 167,960 vs 136,856 Revs 6,714,468 vs 6,026,343 NOTE: 1987 qtr and nine mths includes tax gain 64,200 dlrs and 102,200 dlrs, respectively. 1986 qtr and nine mths includes tax gain 78,000 dlrs and 107,000 dlrs, respectively.

Shr five cts vs seven cts Net 80,642 vs 115,222 Revs 7,833,570 vs 5,739,443 Nine mths Shr five cts vs 1.11 dlrs Net 80,773 vs 1,743,828 Revs 21.6 mln vs 16.3 mln

Shr three cts vs two cts Net 109,000 vs 67,000 Sales 11.3 mln vs 11.3 mln Nine mths Shr seven cts vs 99 cts Net 221,000 vs 3,213,000 Sales 30.6 mln vs 35.9 mln Order backlog 22.7 mln vs 13.5 mln Note: 1986 figures include life insurance proceeds of 2.5 mln dlr or 78 cts a share.

U.S. warships destroyed an Iranian oil platform in the Gulf on Monday and the Navy also raided a second oil rig in retaliation for Friday's Iranian missile attack on a U.S. flag tanker, the Pentagon said. President Reagan and Defense Secretary Caspar Weinberger warned Iran of even stronger countermeasures if the military escalation between the two countries continued in the volatile waterway. Reagan said he ordered the strike on the first platform by four U.S. destroyers, which fired about 1,000 five-inch shells at the Rostam oil rig 120 miles east of Bahrain in the central Gulf. A short time later, Navy personnel boarded a second Iranian oil platform about five miles to the north and destroyed radar and communications equipment before leaving the structure, the Pentagon said. Defense Department spokesman Fred Hoffman told reporters that the second platform had been abandoned by Iranian personnel during the shelling and destruction of the first rig. The United States said both platforms were being used to keep track of Gulf merchant shipping and to launch speedboat attacks on such shipping by Iranian Revolutionary guards.

Shr 16 cts vs 14 cts Net 954,000 vs 777,000 Revs 24.7 mln vs 21.5 mln Avg shrs 6,000,000 vs 6,000,000 Nine mths Shr 39 cts vs 34 cts Net 2,314,000 vs 1,805,000 Revs 69.2 mln vs 59.3 mln Avg shrs 6,000,000 vs 5,363,000

British Foreign Secretary Sir Geoffrey Howe backed the United States' attack on an Iranian oil platform on Monday and said it should not worsen the Gulf crisis. "The United States is fully entitled to take military action in exercise of rights of self-defense, in the face of the imminent threat of further attacks," Howe said in a statement issued in London. The United States said its forces destroyed the platform on Monday in retaliation for an Iranian missile attack on a U.S.- flagged Kuwaiti ship last Friday. Referring to that attack, Howe added, "I trust the Iranians will fully understand that continued attacks of this kind will only enhance justification for firm action in self-defense." At a press conferenced in Luxembourg during a meeting of European Community (EC) ministers, Howe was asked about statements from a senior Iranian official who said America was now involved in a full-scale war. "It would be profoundly undesirable and quite unjustified for Iran to react in that way," he said.

Huge oil platforms dot the Gulf like beacons -- usually lit up like Christmas trees at night. One of them, sitting astride the Rostam offshore oilfield, was all but blown out of the water by U.S. Warships on Monday. The Iranian platform, an unsightly mass of steel and concrete, was a three-tier structure rising 200 feet (60 metres) above the warm waters of the Gulf until four U.S. Destroyers pumped some 1,000 shells into it. The U.S. Defense Department said just 10 pct of one section of the structure remained. U.S. helicopters destroyed three Iranian gunboats after an American helicopter came under fire earlier this month and U.S. forces attacked, seized, and sank an Iranian ship they said had been caught laying mines. But Iran was not deterred, according to U.S. defense officials, who said Iranian forces used Chinese-made Silkworm missiles to hit a U.S.-owned Liberian-flagged ship on Thursday and the Sea Isle City on Friday. Both ships were hit in the territorial waters of Kuwait, a key backer of Iraq in its war with Iran. Henry Schuler, a former U.S. diplomat in the Middle East now with CSIS said Washington had agreed to escort Kuwaiti tankers in order to deter Iranian attacks on shipping. But he said the deterrence policy had failed and the level of violence and threats to shipping had increased as a result of U.S. intervention and Iran's response. The attack on the oil platform was the latest example of a U.S. "tit-for-tat" policy that gave Iran the initiative, said Harlan Ullman, an ex-career naval officer now with CSIS. He said with this appraoch America would suffer "the death of one thousand cuts." But for the United States to grab the initiative militarily, it must take warlike steps such as mining Iran's harbors or blockading the mouth of the Gulf through which its shipping must pass, Schuler said. He was among those advocating mining as a means of bringing Iran to the neogtiating table. If vital supplies were cut off, Tehran could not continue the war with Iraq. Ullman said Washington should join Moscow in a diplomatic initiative to end the war and the superpowers should impose an arms embargo against Tehran if it refused to negotiate. He said the United States should also threaten to mine and blockade Iran if it continued fighting and must press Iraq to acknowledge responsibility for starting the war as part of a settlement. Iranian and Western diplomats say Iraq started the war by invading Iran's territory in 1980. Iraq blames Iran for the outbreak of hostilities, which have entailed World War I-style infantry attacks resulting in horrific casualties. Each side has attacked the others' shipping.

A U.S. attack on an Iranian oil platform in the Gulf on Monday appeared to be a tit-for-tat raid carefully orchestrated not to be too provocative or upset Arab allies, Western diplomats in the region said. U.S. Defence Secretary Caspar Weinberger said Monday that U.S. Warships destroyed the oil platform in the southern Gulf in response to a missile strike on the American-registered Kuwaiti tanker Sea Isle City in Kuwaiti waters on Friday. "We consider the matter closed," he said, a signal the U.S. administration did not want the Gulf crisis to escalate. Iran had warned the United States earlier in the day against exacerbating the Gulf crisis, saying military action would endanger American interests. Following the raid, a okesman for Tehran's War Information Headquarters vowed to avenge the attack with a "crushing blow." "The United States has entered a swamp from which it can in no way get out safely," Tehran Radio quoted him as saying. Diplomats noted, however, Iran was also seeking to avoid ostracism by Arab states due to meet at a summit in Amman on November 8 and discuss the Iran-Iraq war. Iranian Prime Minister Mir-Hossein Mousavi is currently in Damascus, and diplomats said he would seek Syrian help in preventing a total Arab breach with Tehran. Further escalation of the war threatening the Gulf Arab states could work against Tehran at the Amman gathering, they said. "The ball is in Iran's court now. It's up to Tehran to respond one way or the other," a diplomat said. President Ronald Reagan warned Iran of stronger American countermeasures if the military escalation continued. Western diplomats and military sources in the area said shelling the platform appeared to be the least provocative act the United States could have taken once it had decided to retaliate for the tanker attack, blamed by both the Americans and Kuwaitis on Iran. "It's interesting that they chose something in international waters because it doesn't implicate any other nation," one diplomat said. "This was better for U.S. Relations with the Gulf Arab states, particularly Kuwait." Commented another diplomat: "Kuwait must be happy that the U.S. Has done something, but relieved that Faw was not attacked on its doorstep." One source said of the attack on the oil platform: "They managed to warn off the crew and hit something that was the least nuisance to everybody." A diplomat commented: "They were very clever in the place they chose. It gets attention, but it hasn't devastated anything because it wasn't working in the first place." A senior Arab banker in the area said after the news broke: "This was a good, measured response without risking a flare-up ... It is a face-saving response (for the Americans)."

Military experts say the United States faces a dilemma in the Gulf following U.S. destruction of an Iranian oil platform in retaliation for an attack on a U.S.-flagged tanker. The experts told Reuters Tehran holds the initiative and is likely to control the tempo and direction of the conflict as long as America simply reacts to Iranian attacks by launching limited retaliatory strikes. But if Washington seizes the initiative with bolder steps -- such as mining Iran's harbors, blockading its shipping, or destroying key bases -- it could find itself in a major war. "Iran is in the driver's seat in an absolute sense as the cycle of attack and retaliation continues," said Fred Axelgard, a Gulf War expert with the private Center for Strategic and International Studies (CSIS). "It's like a Greek tragedy," said retired Adm. Eugene Carroll of Washington's private Center for Defense Information (CDI) think tank. Some Middle East experts say the only way out is for Washington to join forces with Moscow in pressing for an end to the war between Iran and Iraq. They say it is not feasible for America to withdraw its 30-ship force from the Gulf area, where the Navy began escorting U.S.-flagged Kuwaiti tankers in July. Withdrawal would give the appearance of being chased away by Iran, which President Reagan could never accept. U.S. Defense Secretary Caspar Weinberger told a Pentagon news conference the destroyers Kidd, Young, Leftwich and Hoel fired about 1,000 rounds of five-inch shells at Iran's Rostam oil rig 120 miles east of Bahrain beginning at about 1400 Gulf time (0700 EDT) on Monday. Weinberger said the platform had been used as a military base by Iran and that the attack responded to an Iranian Silkworm missile strike on the U.S.-flagged Kuwaiti tanker Sea Isle City on Friday. Iranians manning the platform were warned in advance and allowed to escape. "We do not seek further confrontation with Iran, but we will be prepared to meet any escalation of military action by Iran with stronger countermeasures," Weinberger said. "We consider this matter closed," he said. Analysts ranging from the liberal CDI to conservatives agreed the U.S. reaction was measured, reasonable and did not escalate the conflict unduly. But they said the question was whether Iran would consider the matter closed. It had not taken this view after earlier clashes.

Shr 30 cts vs 30 cts Net 1,804,000 vs 1,800,000 Nine mths Shr 89 cts vs 79 cts Net 5,334,00 vs 4,496,000 NOTE: Earnings per share reflect initial public offering of 534,750 common shares in March 1986 and 2-for-1 stock splits in January and June 1986.

Citgo Petroleum Corp, a subsidiary of Southland Corp, said it raised the contract price it will pay for all grades of crude oil by 50 cts a barrel, effective Oct 16 The increase brings Citgo's postings for the West Texas Intermediate and West Texas Sour grades to 19.00 dlrs/barrel, while Light Louisiana SWeet is now priced at 19.35 dlrs. Citgo last changed it crude oil postings on Sept 9.

Net 13,185,000 vs 6,715,000 Nine mths Net 26.2 mln vs 15.3 mln NOTE: Company is owned by a consortium of European banks.

Yugoslav Prime Minister Branko Mikulic, unveiling a new draft economic program, said Yugoslavia would cut repayments on its almost 20 billion lr hard currency debt to bring them in line with its hard currency earning capacity. "We have decided to coordinate repayment of our debt with realistically assessed capabilities of our economy," he said in Parliament. He said the current debt-service ratio (over 40 pct of export revenue) was too high. Yugoslavia is to negotiate a long-term restructuring of its debt after missing repayments in recent months, Mikulic said. "If we did not change the dynamics of repaying our debt, the situation would become increasingly worse," Mikulic said. He said on the present repayment schedule, Yugoslavia would have a net outflow of two billion dlrs and the level of debt would be halved by 1995. But he added: "The consequences would not only mean slower economic growth in the coming years but also further exhaustion of the economy and lasting damage to the economy's capacity for development," he said. "All that would, of course, intensify social difficulties," Mikulic added. The state news agency Tanjug said on October 9 that Yugoslavia plans to adjust debt repayments over the next eight years and to cut the debt-service ratio to 25 pct. Yugoslavia failed to make a principal repayment due last month which had already been postponed by 90 days. Mikulic's proposed economic program, which also includes higher personal taxes as well as wage and price restraint, is intended to serve as a basis for the debt talks to demonstrate Yugoslavia's ability to eventually repay the credits. His program has to be discussed and approved by parliament by early November. Mikulic said foreign debt should be retained at about the same level as now until 1990 and the country should then be able to keep currency reserves equal to three months payments. "Of course, these are our proposals for talks with creditors. We expect understanding and support because it is in their interest as well," Mikulic said. He said that under the present schedule debt payments had slowed economic development and exhausted currency reserves. Banking sources say Yugoslavia's reserves are inadequate at present for even one month's debt and import bill.

Baltek Corp said it has acquired a shrimp packing plant in Ecuador for undisclosed terms. The company said the acquisition will result in a tripling of its Ecuadorian shrimp sales to about three mln pounds annually by 1988.

Shr 30 cts vs 30 cts Net 1,804,000 vs 1,800,000 Nine mths Shr 89 cts vs 79 cts Net 5,334,000 vs 4,496,000

Iran said several people were injured in Monday's U.S. Attack on an Iranian offshore oil site and vowed retaliation, Tehran radio reported. It quoted President Ali Khamenei as saying, "We will definitely retaliate and will not leave this American move unanswered." A broadcast monitored in Nicosia said several civilian personnel on the Rashadat oil platforms in the Gulf east of Qatar were injured when U.S. Warships bombarded them this afternoon. It described damage as "severe." Washington said four American frigates shelled and destroyed two Iranian platforms at the Rashadat (formerly Rostam) field at 1100 GMT on Monday in response to Friday's missile attack on a U.S.-flag ship in Kuwaiti waters. The U.S. Said Iranians used the platforms for military pruposes and had fired on an American helicopter from the rigs earlier this month. Khamenei denied that the platforms had military gear or personnel and said the U.S. Attack lacked miltary value. "With this move Mr. Reagan has committed a big mistake and has definitely increased his problems...

Qtr ends September 30 Shr 25 cts vs 13 cts Net 759,000 vs 383,000 Revs 9,052,000 vs 6,829,000

Shr 28 cts vs 41 cts Net 205,000 vs 229,000 Nine mths Shr 86 cts vs 1.01 dlrs Net 622,000 vs 566,000 NOTE: Share reflects issuance of 166,750 common shares in December 1986.

Shr 42 cts vs 59 cts Net 734,659 vs 1,033,309 Nine mths Shr 92 cts vs 1.69 dlrs Net 1,629,719 vs 2,971,144 NOTE: 1987 nine mths net includes a loss of 290,000 dlrs on sale of securities and nine-recurring charge of 32,713 dlrs for write-off of FSLIC secondary reserve.

A top Iranian military official said America's attack on an Iranian oil platform on Monday had involved the United States in full-scale war and Iran would avenge it with a "crushing blow." "The United States has entered a swamp from which it can in no way get out safely," the Iranian news agency IRNA quoted the head of Iran's war information headquarters as saying. The official, Kamal Kharrazi, said Washington had now become involved in what he called a full-fledged war with Iran. It was the first official Iranian reaction to the attack by four U.S. Navy destroyers on the Reshadat oil platform.

Shr four cts vs five cts Net 85,292 vs 109,285 Revs 2,916,128 vs 474,819

Shr 85 cts vs 77 cts Net 25.8 mln vs 21.9 mln Avg shrs 29.0 mln vs 27.1 mln Nine mths Shr 2.22 dlrs vs 2.14 dlrs Net 67.9 mln vs 60.1 mln Avg shrs 29.0 mln vs 26.5 mln NOTE: Previously reoprted amounts restated for earnings of First NorthWest Bancorp acquired in pooling of interests on July 31, 1987.

Shr 16 cts vs 13 cts Net 1,538,000 vs 1,288,000 Sales 35.3 mln vs 29.5 mln Nine Mths Shr 27 cts vs 37 cts Net 2,601,000 vs 3,586,000 Sales 102.0 mln vs 84.2 mln

Shr 63 cts vs 49 cts Net 5,635,000 vs 4,330,000 Sales 117.8 mln vs 96.2 mln Year Shr 2.21 dlrs vs 1.71 dlrs Net 19.8 mln vs 15.2 mln Sales 465.1 mln vs 388.5 mln NOTE: Share adjusted for February 1987 three-for-two split. Prior year results restated.

The Federal Reserve entered the government securities market to arrange three-day system repurchase agreements, a spokesman for the New York Fed said. Federal funds were trading at 7-5/8 pct at the time of the direct injection of temporary reserves, dealers said.

Westin Hotels and Resorts, a subsidiary of Allegis Corp, said it will hold a press conference on October 21 near San Francisco to discuss the pending sale of the 61-hotel chain by Allegis. Allegis has said that it plans to sell Westin buyt has not announced that a deal has been set.

Shr loss primary 82 cts vs profit 15 cts Shr loss diluted 82 cts vs 13 cts Net loss 4,134,000 vs profit 649,000 Avg shrs 5,030,000 vs 3,927,000 Nine Mths Shr loss primary 80 cts vs profit 37 cts Shr loss diluted 80 cts vs 32 cts Net loss 3,615,000 vs profit 1,652,000 Avg shrs 4,557,000 vs 3,927,000 Loans 231.2 mln vs 221.5 mln Deposits 323.3 mln vs 281.9 mln Assets 368.3 mln vs 346.5 mln Note: Prior qtr and nine mth figures include operating loss carryforward gains of 105,000 dlrs, or two cts per share and 195,000 dlrs, or four cts per share, respectively.

Shr 1.02 dlrs vs 96 cts Net 55.6 mln vs 53.2 mln Revs 1.3 billion vs 1.2 billion Nine mths Shr 3.13 dlrs vs 2.88 dlrs Net 171.3 mln vs 159.0 mln Revs 3.8 billion vs 3.5 billion NOTE: 1987 3rd qtr and nine mths includes one time after-tax charge of 14.3 mln dlrs or 26 cts a share for previously announced anticipated sale in the fourth quarter of an investment in Equatorial Communications Co. 1986 amounts restated, increasing net by four cts a share, for change in pension expense accounting. Backlog on September 30, 1987 was 9.3 billion dlrs, which company said was a record.

A group of firms led by Hong Kong-based Industrial Equity (Pacific) Ltd, said it acquired 969,515 shares of Triton Oil Corp common stock, or 5.4 pct of the company's common stock outstanding. Industrial Equity (Pacific), which is controlled by Brierley Investments Ltd and which has applied with U.S. antitrust regulators to buy up to 50 pct of Triton's common stock, said the current 5.4 pct stake was acquired for investment purposes. The company said it informed Triton of its present "good faith intention" to buy more than 15 mln dlrs worth of Triton stock. It said it also told Triton it "may depending on market conditions acquire 50 pct or more and possibly 100 pct of the voting securities of (Triton)." It said it received clearance to buy up to 50 pct of the stock on September 11. Industrial Equity (Pacific) reported it bought 250,000 shares of Triton common stock on October 8 at 22.50 dlrs a share.

The Federal Reserve is expected to enter the government securities market to supply reserves to the banking system via system repurchase agreements, economists said. Most economists said the Fed would execute three-day system repurchases to meet a substantial need to add reserves in the current maintenance period, although some said a more aggressive add via overnight system repos was possible. Federal funds opened at 7-5/8 pct and remained at that level late this morning, compared with an average effective rate of 7.55 pct Friday.

An Iowa State University study showed pork contains considerably less fat than indicated by long-established U.S. Department of Agriculture statistics, the National Pork Producers Council (NPPC) said. Six of the seven muscle cuts evaluated in the study averaged 4.3 pct fat or less, well below American Heart Association guidelines for recommended foods. Eighty pct of all the raw boneless rib chops evaluated in the study contained less than six pct fat, the NPPC said. Meanwhile, USDA Handbook 8-10 - long used as the established authority on nutrient composition, indicates a fat content for center loin pork of 7.3 pct, the NPPC said. Robin Kline, a dietitian and Director of Consumer Affairs for the NPPC said he was not surprised at the wide discrepancy between the study and the USDA handbook. "Handbook 8-10 is based to a certain extent on information that has been accumulated over the past 30 years. The statistics in it about pork do not reflect the hog of today which is about 50 pct leaner than it was 20 or 30 years ago, thanks to genetic improvements and better feeding practices," Kline said. The study, funded by NPPC with producer checkoff money, evaluated pork carcasses from 47 Iowa producers in categories from 0.7 to 1.3 inches of backfat. Researchers measured the fat content of the seven muscles before cooking, and the fat, moisture and tenderness of cooked boneless rib chops.

The official Soviet news agency Tass denounced a U.S. Attack on an Iranian oil-drilling platform in the Gulf on Monday as military adventurism and said it would bring no dividends to the Reagan administration. Tass commentator Mikhail Krutikhin said the administration had embarked on an adventurist path in order to deflect attention from the scandal in which the United States sold arms to Iran and the profits were diverted to Nicaraguan rebels. "The confrontation is a fact now. What is obvious is that the latest military adventure will not bring political dividends to the American administration," Krutikhin said. Soviet leader Mikhail Gorbachev and Foreign Minister Eduard Shevardnadze abruptly left a parliamentary session earlier on Monday, sparking diplomatic speculation that they were concerned with an urgent matter of foreign affairs. Soviet officials have previously criticized the United States for sending naval forces into the Gulf, saying their presence serves to increase tension. Moscow is officially neutral in the war between Iran and Iraq. It is a major arms supplier to Iraq but has also sought broader contacts with Iran in the last year. Krutikhin said: "The United States has undertaken an act of armed aggression against Iran, the probability of which has long been spoken of by Washington officials."

The International Telecommunications Union, which regulates communications worldwide, decided at the end of a five-week conference to allow mobile phone systems to be linked with satellites, telecommunications officials said. Until now, car phones have been linked with land stations and have been limited mainly to urban areas. The new ruling will make it easier for calls to be made from remote regions. The meeting, which finished over the weekend, also decided to allow a "radio determination satellite system," which would enable fleet owners to trace to within about 15 metres the movements of their lorries or cars or ships around the world.

IBC Acquisition Corp said it received about 8,857,807 Interstate Bakeries Corp shares in response to its tender offer for up to 8,053,181 shares that expired October 16, and it will purchase about 90.9 pct of the shares tendered. It said a final proration factor should be announced and payment for shares start October 26. IBC is made up of Interstate management, First Boston Inc and George K. Braun and Co.

's plant in Napa, Calif., has been purchased by Oregon Steel Mills for 16 mln dlrs, the privately owned Portland company said. The transaction was approved by the U.S. bankruptcy judge in Denver who is hearing Kaiser Steel's Chapter 11 reorganization case. James Mccaughey, former vice president of sales for Kaiser, has been named general manager for the plant which will be called Napa Pipe Corp, Oregon Steel said.

Shr 1.62 dlrs vs 1.49 dlrs Net 321.8 mln vs 297.9 mln Revs 2.59 billion vs 2.49 billion Avg shrs 198.8 mln vs 199.5 mln Nine mths Shr 2.80 dlrs vs 4.48 dlrs Net 955.4 mln vs 895.2 mln Revs 7.70 billion vs 7.32 billion Avg shrs 199.0 mln vs 199.7 mln

Shr 98 cts vs 70 cts Net 12.3 mln vs 8,699,000 Sales 284.7 mln vs 280.7 mln Nine mths Shr 2.83 dlrs vs 2.23 dlrs Net 35.3 mln vs 27.6 mln Sales 824.6 mln vs 818.4 mln NOTE: Share adjusted for December 1986 three-for-two split.

shr 1.99 dlrs vs 2.05 dlrs diluted shr 1.80 dlrs vs 1.75 dlrs net 50.0 mln vs 48.5 mln nine months shr 5.37 dlrs vs 5.69 dlrs diluted shr 4.87 dlrs vs 4.76 dlrs net 134.6 mln vs 129.6 mln

Iran said U.S. Naval forces attacked two of its oil platforms in the southern Gulf on Monday afternoon, the Iranian news agency IRNA reported. IRNA, received in Nicosia, said an informed source at the Iranian oil ministry identified the two platforms as Resalat and Reshadat, about 60 miles from Iran's Lavan island oil storage site. Regional shipping sources earlier said three Iranian offshore oil sites at Sassan, Rostam and Rakhsh had been attacked at 7.00 A.M. (0300 GMT) on Monday by unidentified aircraft. In Washington, U.S. Defence Secretary Caspar Weinberger said four U.S. Destroyers attacked and destroyed an Iranian oil platform about 120 miles east of Bahrain.

U.S. warships attacked and destroyed an Iranian oil platform on Monday in retaliation for Friday's Iranian attack damaging a U.S.-flagged ship, U.S. Defense Secretary Caspar Weinberger said. When asked how much was left of the oil platform, Weinberger said, "Nothing." "There was no Iranian reaction," he said. "... We consider this matter is now closed." Weinberger said four U.S. destroyers attacked the platform about 120 miles east of Bahrain in the central Gulf with fire at 0700 EDT, Weinberger said. "We chose a platform used by the Iranians to interfere with and be a source of potential attack on convoys...," Weinberger said at a Pentagon briefing. "We know it has been used indeed, to not only launch small boat attacks on shipping but to fire on U.S. helicopters... "It's removal will contribute significantly to the safety of U.S. forces in the future," Weinberger said of the U.S. Navy's operation to escort oil tankers through the Gulf. "We do not seek further confrontation with Iran but we will be prepared to meet any escalation of military actions by Iran with stronger countermeasures," Weinberger said. He said the 20 to 30 Iranian personnel on the oil platform were given a 20-minute warning to abandon the platform. "As far as we know they did abandon the site," he said. Weinberger was asked why the United States had chosen to attack an oil platform rather than Iranian Silkworm missile platforms blamed by Washington for Friday's attack.

Shamrock Capital LP said it has completed the sale of Cental Soya Co Inc to Ferruzzi Agricola Finanziaria the holding company for the Ferruzzi group of Ravenna, Italy. Shamrock Capital is a limited partnership led by Shamrock Holdings Inc the Roy E. Disney family company. Under the agreement announced last month, Ferruzzi acquired all the equity and assumed subordinated term debt of about 195 mln dlrs in a trction valued at about 370 mln dlrs.

South Korea's national news agency, Yonhap, said this year's current account surplus will near 10 billion dlrs amid signs of continuing high world demand for the country's cheap cars and electronic goods. Bank of Korea officials would neither confirm nor deny the Yonhap forecast, saying only that the bank would issue its own figures later in the week. Yonhap said the January-September surplus in the current account, which covers trade in goods and services, totalled 7.03 billion dlrs. This already exceeds the seven billion dlr ceiling for the whole of 1987 that the government set in June during talks with the International Monetary Fund aimed at averting a too rapid revaluation of the won against the dollar. The agency said the September surplus was 1.4 billion dlrs, up from 468.1 mln in August and 899 mln a year earlier. "Exports in October could be relatively modest due to many public holidays, but by the end of this year the surplus will be well over nine billion dollars, close to ten," Yonhap said. The sharp rise in the September surplus came from a resumption of export deliveries delayed by strikes the previous month. More than 3,300 companies, including car manufacturers, electronic and electric firms, were hit by labour unrest between July and September. The South Korean government originally targeted a five billion dlr current account surplus this year, but had to raise this to seven billion to reflect a startling first-half export boom. If confirmed, the soaring 1987 current account surplus seemed certain to trigger tougher pressure from the United States which recorded a 7.4 billion dlr trade deficit with Seoul last year, government economists said. The U.S. Government, trying to stem protectionist pressure at home, has called on South Korea to open more markets to American goods and revalue the won faster. The won was fixed at 804.90 against the dollar on Monday, representing a 7.01 pct gain so far this year.

Unidentified jets attacked three Iranian oil rigs in the southern Gulf early on Monday, setting at least one of them ablaze, regional shipping sources said. Earlier today in Washington, U.S. Television networks had reported that American forces launched a retaliatory strike against Iran late Sunday, attacking two Iranian offshore oil drilling platforms and setting them ablaze. The shipping sources said Iran's Sassan, Rostam and Rakhsh offshore oilfields were attacked at 0700 local (0300 GMT) by a wave of jet fighter bombers. Smoke was seen spiralling up from the Rostam field soon after. At least one of the other two targets was also believed to be ablaze, the sources said. The Sassan and Rostam fields have been targets for Iraqi air strikes in the past, but Baghdad had not reported any southern Gulf missions prior to news of the latest attack. Shipping and military sources in the region have said Iran used its southern Gulf rigs as bases to launch helicopter and later speedboat attacks on neutral ships in the waterway. U.S. Officials had been meeting on a response since Friday when an attack on a Kuwaiti port severely damaged a U.S.-flagged ship. President Reagan said on Sunday he had already made a decision on the U.S. Response to Friday's Iran attack but would not say what the decision was.

Unidentified jets raided three Iranian oil rigs in the southern Gulf on Monday, setting at least one of them ablaze, regional shipping sources said.

Saudi Arabia is likely to remain the key supplier of liquefied petroleum gas (LPG) to Japan for at least the next five years, oil industry sources said. Japan, while diversifying its supply sources of propane and butane for stable supplies, will continue to bank on Saudi Arabian LPG, the sources said. They said Saudi's supply capabilities of LPG, an associate of crude oil, is guaranteed by its crude output capacity. "Saudi is a reliable supplier in that sense," said one trader. Japan imports about 50 pct of its LPG from Saudi Arabia. No single nation could substitute for Saudi Arabia as an LPG supply source to Japan, the sources said. "Saudi Arabia has committed itself to Japanese LPG buyers, which has quelled fears that LPG supplies from the Mideast Gulf could easily be disrupted in the wake of heightened hostilities in that area," said another trader. Saudi Arabia cut LPG shipments to Japan and elsewhere by 20 pct in September after a fire put a major gas plant at Al-Juaimah out of operation. October shipments were back to contractual volumes as Saudi was able to boost exports from other ports. Attacks on Gulf shipping by Iran and Iraq centered on crude rather than products carriers, which has lulled fears of LPG supply disruptions, traders said. They said an Iranian blockade of the Strait of Hormuz was unlikely because it would block Iran's oil shipments. Industry sources said Japan's LPG imports will not greatly rise or fall as its domestic demand growth is estimated at a moderate 2.1 pct a year from 1986 through 1991. Japanese term buyers of Saudi LPG are expected to lift slightly lower volumes from January 1987, when imports from Indonesia are slated to increase, the sources said. The customers are unlikely to slash Saudi term purchases in large scale when Japan increases annual imports of Indonesian LPG to 1.95 mln tonnes in early 1989 from 319,000 tonnes in the year ended March 1987, the sources said. But when demand is sluggish in summer, they will phase down term purchases of Saudi LPG and secure lower-priced cargoes on the spot market, they said. Japan imports some 12 mln tonnes of LPG a year, of which 5.3 mln tonnes are supplied by Saudi Arabia, 3.3 mln under term contracts and two mln through spot purchases. Some 80 pct of Japan's LPG imports are from the Middle East. Saudi Arabia's state owned oil company Petromin has made some concessions on term prices to Japanese customers in the recent round of contract renewal talks, and it is likely the Japanese will accept the offer, the sources said. The Japanese term customers, however, have so far been unsuccessful in establishing a transparent price formula to replace the existing unilateral monthly price notice. Japanese buyers pay Saudi Arabia a price notified by Petromin each month. Most recently the FOB price was set at 87 pct of the 17.52 dlrs per barrel government selling price (GSP) of Arabian Light. Buyers reserve the right to phase down or out liftings should the monthly price be set at over 95 pct of Arabian Light's GSP. Petromin has offered to lower this rate to 90 pct from the 95 pct for contracts with Japanese customers from next January, the trade sources said. Petromin also suggested that a seller's option of supplying up to 20 pct more than the contractural volume be subject to seller-buyer agreement. Under the present contract, Petromin can automatically cut supplies up to 10 pct of the contractual volume. "If you want to import LPG from Saudi Arabia on a profitable basis, you have to set the price factor at 80 to 85 pct," said an official at a major importer. "Freight costs are higher for cargoes coming from the Gulf than Southeast Asia due to a longer haul and war risk insurance payments." Japanese customers will visit Saudi Arabia this month to finalise their separate contract talks, now focusing on contractual period and volume, which could be very similar to current levels, the sources said. "When we talk business, we would seek profitability and sometimes forget vulnerability of high dependence on a single supplier," said one.

Shr 52 cts vs 43 cts Net 17.7 mln vs 14.2 mln Sales 413.1 mln vs 361.6 mln Avg shrs 34.3 mln vs 30.3 mln Nine mths Oper shr 1.58 dlrs vs 66 cts Oper net 53.9 mln vs 26.7 mln Sales 1.22 billion vs 1.08 billion Avg shrs 33.5 mln vs 35.2 mln NOTE: 1986 nine mths net includes 20.6 mln dlr provision for restructuring but excludes 85.0 mln dlr gain on sale of discontinued glass business and 1,330,000 dlr gain from discontinued operations. Quarter orders 350.2 mln dlrs vs 296.7 mln dlrs. Backlog 507.6 mln dlrs vs 444.4 mln dlrs.

U.S. television networks said on Monday that U.S. forces launched a retaliatory strike against Iran late Sunday, apparently attacking two Iranian offshore oil drilling platforms. NBC News said it understood six Iranians had been pulled from the sea. It said cautiously that U.S. forces attacked late Sunday and that two Iranian oil platforms east of Bahrain were ablaze as a result, but CBS News and other networks said flatly that U.S. forces attacked the Iranian oil platforms. U.S. officials had been meeting on a response since Friday when an attack on a Kuwaiti port severely damaged a U.S.-flagged ship. President Reagan said on Sunday he had already made a decision on the U.S. response to Friday's Iran attack but would not say what the decision was. Defense Secretary Caspar Weinberger said on Saturday the attack on a U.S.-flagged ship in Kuwaiti waters on Friday was almost certainly by an Iran Silkworm missile.

A U.S. Defense Department spokesman said he had no information on London oil and stock market rumors that the United States had launched a retaliatory strike against Iran for an attack on Friday that damaged a U.S. shi "I don't have anything," Major Randy Morger said. "I have no information at all." President Reagan said on Sunday he had already made a decision on the U.S. response to Friday's Iran attack but would not say what the decision was. Defense Secretary Caspar Weinberger said on Saturday the attack on a U.S.-flagged ship in Kuwaiti waters on Friday was almost certainly by an Iran Silkworm missile. Some of the rumors in the London markets were that the United States had launched an offshore strike against Iranian missile installations.

Kuwait's oil exports have not been affected by the seven-year Iran-Iraq war, Kuwait Oil Tanker Company (KOTC) Chairman and Managing Director Abdul Fattah al-Bader told a Kuwaiti newspaper. "Kuwait has exploited all available opportunities to continue exporting its oil without any reduction," the Al-Anbaa newspaper quoted him as saying. He said KOTC made profits of more than two mln dinars (seven mln dlrs) in the fiscal year ending last June, but predicted lower profits this year due to higher costs for chartering and operating vessels.

Iran warned the United States on Monday against exacerbating the Gulf crisis, saying it would endanger American interests. Tehran Radio, monitored by the British Broadcasting Corporation, said a spokesman for Iran's War Information Headquarters was responding "to U.S. Officials' remarks about taking military action against Iran." The radio also quoted an Iranian Foreign Ministry spokesman as saying Iran would respond decisively to any aggressive measure by the United States. The radio said the spokesman made the statement "following the attack on a Kuwaiti ship under the U.S. Flag and comments by American officials on carrying out retaliatory action against Iran." The spokesman said, "Any U.S. Military aggression against Iran will certainly be the beginning of an extensive clash in the Persian Gulf, and amidst this our principled policy is to confront any act which escalates tension."

The West German Finance Ministry declined to comment on weekend criticism by U.S. Treasury Secretary James Baker of recent West German interest rate increases. Baker said the U.S. Would re-examine the February Louvre Accord to stabilise currencies reached by leading industrial democracies. The rise in West Germany short term interest rates was not in the spirit of an agreement by these nations in Washington, which reaffirmed the Louvre pact, he said. A Finance Ministry spokesman, asked for an official ministry reaction to Baker's remarks, said he could make no comment.

The Cyprus vessel Fearless, 31,841 tonnes dw, which was on fire, grounded then towed to Yantai, China, in August, had all its cargo reloaded but the cargo in the no. 3 hold caught fire on October 15. The fire was put out with salt water and water from the no.4 hold has spread over most of the cargo. Some water is also in the no.5 hold. Bottom patching was reported complete but only the no.4 starboard wing tank has been pumped out and remains dry. The engine room is flooded to about three metres. The ship was originally loaded with 10,000 tonnes of animal feed.

Lloyds Shipping Intelligence service said the British bulk carrier Envoy, 75,453 tonnes dw, was grounded at Mile 190 in the Orinoco river on October 16. The vessel was on a voyage from Trombetas, Brazil, to Matanzas, Cuba, carrying 50,000 tonnes of bauxite. Its draught was 36 feet. Attempts to refloat the vessel with the help of six tugs have been unsuccessful. The owners are considering unloading part of the cargo onto barges.

The Japan/India-Pakistan-Gulf/Japan shipping conference said it would cut the extra risk insurance surcharges on shipments to Iranian and Iraqi ports to a minimum three pct from 4.5 pct on October 25. It said surcharges on shipments of all break-bulk cargoes to non-Iraqi Arab ports would be reduced to 3.0 pct from 4.5. A conference spokesman declined to say why the move was taken at a time of heightened tension in the Gulf.

Six black miners have been killed and two injured in a rock fall three km underground at a South African gold mine, the owners said on Sunday. , one of South Africa's big six mining companies, said in a statement that the accident occurred on Saturday morning at the mine at Boksburg, 25 km east of Johannesburg. A company spokesman could not elaborate on the short statement.