The senior Republican on the U.S. Senate Agriculture Committee, Richard Lugar of Indiana, called for repeal of the cargo preference law that aids the American shipping industry but which he said hurts farmers. "Cargo preference is a costly special interest operated at the expense of American farmers and dockworkers," Lugar said in signing on as a co-sponsor or cargo preference repeal legislation. The law requires shipment of U.S. goods on American ships rather than foreign vessels which are less costly.

Harper and Row Publishers Inc said it received an acquisition offer from Harcourt Brace Jovanovich INc to acquire all of Harper and Row's shares at 50 dlrs a share in cash. Harper said it will consider the proposal, including such possible concerns as anti-trust and other legal considerations. On Monday, Harper and Row received a surprise 34 dlr-a- share bid from investor Theodore Cross, owner of six pct of the shares, for the stock he does not own. Harcourt made clear in its offer that it will step aside if Harper's directors and shareholders reject the bid, Harper said. Harper said the board has previously expressed a strong determination to remain an independent publishing enterprise. Harper also said that New World Pictures, a shareholder, has requested a copy of Harper's shareholder list to be used in soliciting proxies. New World has 30,800 shares of the total 4.4 mln shares. Harper and Row's stock closed off 3/4 to 33-1/2 after rising 9-1/4 points yesterday. Shareholders are due to vote April 2 on a shareholders rights plan designed to thwart hostile takeovers. Ivan Obolensky, an analyst with the investment banking for of Sterling Grace and Co said Harper and Row is one of the few remaining independent publishers with a "back list" of authors stretching back 200 years. He said as long as the company maintains copyrights with the estates of deceased authors, it controls all motion picture and television rights to the stories. And he said new printing technologies make new editions a profitable business. "Harcourt Brace needs a back list of that nature and is willing to pay up for it," Obolensky said. But he said Harper and Row "has plenty of beef to warrant a 50 dlr bid.

Franco Nevada Mining Corp Ltd said the gain in its stock price today is related to deep drilling being conducted by American Barrick Resources Corp at the Goldstrike claims in the Carlin camp in northern Nevada. Franco Nevada stock is up two at seven dlrs per share on the Toronto Stock Exchange. Franco Nevada said American Barrick announced on March nine that the drilling indicated a number of significant intersections of sulfide gold mineralization below a depth of about 1,000 feet. One vertical drill hole intersected gold continuously from 1,100 feet to 1,730 feet averaging 0.30 ounces per short ton, the announcement said.

USX Corp said proved reserves of oil and natural gas liquids fell 28 pct to 802.8 mln barrels at the end of 1986 from 1.12 billion barrels at year-end 1985. The figures, in USX's just-released 1986 annual report, indicate much of the drop resulted from the exclusion of 293.7 mln barrels of Libyan reserves, after the U.S. government last June directed U.S. oil companies to end Libyan operations. USX, which owns Marathon Oil Co and Texas Oil and Gas Corp, had 60 pct of its 1986 sales of 14.94 billion dlrs from its oil and gas operations. About 24 pct of total sales came from USX's USS steel unit and 16 pct from diversified businesses, which include oilfield services, raw materials, minerals, chemicals and real estate. According to the report, domestic liquids reserves fell slightly to 628.5 mln barrels from 628.9 mln and foreign reserves fell to 174.3 mln from 486.4 mln barrels. The large drop in foreign reserves was in the Middle East and Africa, where they fell to about 9.3 mln barrels from 316.7 mln, reflecting the exclusion of Libya. Total natural gas reserves fell to 4.82 trillion cubic feet at year-end 1986 from 5.18 trillion at the end of 1985. Again, most of the drop came from the Middle East and Africa, where reserves fell to zero from 71.9 billion cubic feet, excluding Libyan reserves. U.S. natural gas reserves fell to 3.44 trillion cubic feet from 3.65 trillion and foreign reserves fell to 1.38 trillion from 1.53 trillion. In other areas, USX said total capital spending fell to 962 mln dlrs in 1986 from 1.78 billion dlrs in 1985. The 1986 audited figure is eight mln dlrs higher than the unaudited figure the company reported on Jan 27. USX also said it expects to record a gain of 150 mln dlrs in 1988, representing 50 pct of previously existing investment tax credits allowable under the new tax law. The loss of the other half of the credits was reflected in the fourth quarter. In a discussion of steel results, USX said plants that were shut down last month and some previously idled plants may be permanently closed. USX took a fourth quarter charge of 1.03 billion dlrs to restructure its steel operations. The charge included the "indefinite idling" last month of four plants in Utah, Pennsylvania and Texas. Other plants or parts of plants in Pennsylvania, Indiana, Alabama, Ohio and Chicago had been previously idled. "These operations are not permanently shut down. Improved market conditions for the products from these plants may make it feasible to reopen some of them," USX said in the report. "On the other hand, a lack of any future market improvement may necessitate their permanent closing," it added.

Michigan General Corp said it began an exchange offer for its 110 mln dlrs outstanding principal amount of 10-3/4 pct senior subordinated debentures due December 1, 1998. Pursuant to the exchange offer, each 1,000 dlr principal amount will receive 500 dlr principal amount of senior subordinated notes due March 1, 1992, 200 dlr principal amount of non-interest bearing convertible senior subordainted notes due March 1, 1997 and 12 shares of delayed convertible preferred stock, liquidation preference 25 dlrs per share. The offer will expire April nine. Michigan General said the exchange offer is crucial to is attempt to restructure and reduce its risk from Chapter 11. The principal purpose of the offer is to reduce its debt service on the 10-3/4 pct debetures, increase stockholders' equity and induce its lender to continue to fund. Assuming a 90 pct acceptance of the offer, Michigan's annual cash interest requirements will be reduced by about 10.6 mln dlrs, it said. Completion is subject to the tender of at least 90 pct of the debentures and its lender to waive it from default under its loan agreements.

International efforts to redirect Japan's export-driven economy toward domestic consumption face heavy going if the country's largest defence contractor and world's biggest shipbuilder is anything to go by. Mitsubishi Heavy Industries Ltd (MHI), which began making ships and iron goods for Japan's military rulers 130 years ago, is responding to the strong yen by redoubling its efforts to maintain its share of export markets. "If we sell the best quality and the cheapest products, everyone will buy them," MHI president Yotaro Iida said. Although two of MHI's main businesses, shipbuilding and power plant construction, have been hit hard by the yen's 40 pct rise against the dollar, the company has no plans to abandon them, Iida told Reuters in an interview. Its other big activity, aircraft component manufacture, has performed so well that MHI now accounts for half of the money Tokyo spends on defence procurement each year. "We have made the utmost efforts among the world's manufacturers to improve productivity," he said. "You may be surprised if you come to see our plants. The outside is old but the inside is ultra-modern, with robots and computers." Securities analysts at major securities houses agreed that MHI has pared costs more quickly than its competitors. The company has slashed its workforce to 47,000 from 86,000 in 1976. Despite its cost-cutting, MHI expects profits to drop 40 pct to 30 billion yen in the current fiscal year ending March 31, from 1985/86's record 50.14 billion. And that includes gains from the sale of MHI's stake in Mitsubishi Motors Corp for 49 billion yen. Iida is optimistic about the future, however. He said a resurgence of demand from the Middle East following the recent recovery in oil prices coupled with persistent demand for power plants in developing countries will help MHI restore its exports-to-sales ratio to the past decade's average of 30 pct. MHI's exports-to-sales ratio fell to 25.9 pct in the half-year ended last September, from 35 to 36 pct five years ago. China is the most promising market, although MHI also considers other non-oil-producing developing countries as major customers. "Our customers are all seen as being in trouble due to a lack of foreign currency," Iida said. But he added that he felt MHI could sell to those markets with Japanese government financial support. It can also finance the plants itself and recover its investment through product sales, a strategy Iida said could prove popular in the future. In shipping, MHI is fighting back against low-priced South Korean competition by building more technologically advanced carriers to carry liquefied natural gas and other products difficult to transport. Shipbuilders Association officials told Reuters MHI is the world's largest shipbuilder in terms of orders and capacity. Domestically, MHI is involved in 12 national projects, including development of nuclear fusion reactors and launch vehicles for man-made satellites. It has been the biggest contractor for the Japan Defence Agency's F-15 and F-14 jet fighters and missiles, although all of these have been built under licence from U.S. Firms. MHI is now heading up five Japanese companies seeking to develop the country's own fighter plane to replace the currently used F-1 support fighters in the late 1990s. Military experts said Washington is putting strong pressure on Tokyo to buy a U.S. Plane, either the McDonnell Douglas Corp F-18 or General Dynamics Corp F-16, to reduce Japan's huge trade surplus with the U.S. "It might be a good idea to jointly produce planes with U.S. Makers as Japan is supported by the U.S. Defence umbrella," Iida said. MHI also plans to cooperate with the U.S. In its Strategic Defence Initiative space defence program by participating in the project when it moves from the research stage, he said. The U.S. Has been seeking Japan's technological support. In fiscal 1985/86, aircraft accounted for 17.1 pct of MHI's sales, shipbuilding 17 pct and power plants 27.9 pct. Iida said the ideal ratio is power plants 30 pct, aircraft and special vehicles 25 pct and shipbuilding 15 pct. As for the remaining 30 pct, Iida said he wanted to shift the domestic focus away from heavy machinery sold to manufacturers and towards household goods, but he declined to specify which products. "By the end of this year, you may find our brand name on your daily products, although this does not mean we will run away from our mainstream business," he said.

Cargo handling resumed at Bangladesh's Chittagong port today after 7,000 workers ended their three day walk-out triggered by a pay dispute, port officials said. Loading and unloading of 14 ships stranded by the strike started this morning and will be completed as quickly as possible, they said. The strikers returned to work after an agreement was reached last night between port authorities and the Port Workers Association, they said without giving details.

Striking seamen said they would offer their collective resignation rather than end their 13-day-old national strike on management's terms. The seamen said they were spurred to their decision after marines occupied the ship Docemarte in Santos harbour Tuesday night. They said seamen on the vessel were being forced to work under duress. President Jose Sarney's government despatched troops to Brazil's ports and oil installations on Tuesday. Seamen in Santos, Brazil's main port, are in defiant mood. One of their leaders, Orlando dos Santos, told Reuters that most of the 1,100 seamen in the port offered their resignations on Wednesday. The national strike headquarters in Rio de Janeiro said seamen were offering to resign in all the country's main ports. The strike by 40,000 seamen comes as Brazil faces a serious debt crisis brought on by a sharp deterioration in its trade balance. The country needs all the foreign exchange it can get, and shipowners have been quick to denounce seamen for the harm the strike is doing to exports. An advertisement placed in the newspapers by the Shipowners Association read, "The seamen's strike is illegal, irrational and unpatriotic." The seamen respond that they cannot live on their present salaries. According to officical pay lists available in the union's office, the basic pay for ordinary seamen is 1,977 cruzados a month, while various allowances can bring their total pay up to 4,000 cruzados a month. At the other end of the scale, captains earn 7,993 cruzados a month basic pay, which is brought up to 15,229 cruzados with allowances. "Brazil's seamen are the second worst paid in the world, after Ghana's," dos Santos said. He said the seamen had not received a pay increase since February 1986, and prices have doubled since then with the collapse of the government's Cruzado Plan price freeze. Talks in Rio de Janeiro Wednesday involving Labour Minister Almir Pazzionotto, seamen and employers failed to resolve the dispute. The seamen are demanding pay raises of about 200 pct but have been offered less than half that.

Hydro Quebec is issuing a 125 mln Canadian dlr bond due April 21, 1997 paying nine pct and priced at 100-3/4 pct, lead manager Merrill Lynch International said. The bond is available in denominations of 1,000 and 5,000 dlrs and will be listed in Luxembourg. Fees comprise 1-1/4 pct selling concession and 3/8 pct each for management and underwriting. Pay date is April 21.

Rowntree Mackintosh Plc announced it made a pretax profit of 84 mln stg in the 53 weeks ending January 3, 1987, compared with 79.3 mln stg in the previous year. Turnover was up to 1.29 billion stg from 1.2 billion. A final dividend of 9.2p was proposed, after a final 8.2p last year. Earnings per share rose to 35p from 34.8p. The results were broadly in line with market expectations, leaving shares at 499p in early trading, up one pence from yesterday's close, but slightly off pre-announcement opening levels. Profit on ordinary activities after tax was 66.2 mln stg, up from the previous year's 60.7 mln. The U.K. Remained Rowntree's largest centre for trading profits, accounting for 47.9 mln stg, up from 45.3 mln in 1985. Profit from its second largest geographical area, North America, slipped to 34.7 mln stg from 37.2 mln. North American profits were affected by the fall of the value of the dollar. Operations in continental Europe made 7.8 mln stg in trading profit, up from 3.4 mln, with 4.0 mln stg made in Australasia, up from 2.3 mln, and 11.3 mln stg from the rest of the world, against 13.1 mln in the previous year. Extraordinary items amounted to a 11.3 mln debit after a 16.5 mln debit previously. A company spokesman said this represented additional provisions for the cost of rationalisation plans announced in earlier years. Rowntree expects North American operations will this year, ahead of company expectations, be of the same order as those from the U.K. And the rest of Europe combined, the statement said. A spokesman said no specific figures had been forecast. Acquisitions will continue to be sought worldwide, including further moves in the speciality retailing business which Rowntree first entered in 1983, the statement said. Rising profit from Europe this year was forecast by chairman Kenneth Dixon in a statement. He added the performance of seven businesses bought last year was encouraging. The U.K. Confectionery side gained market share and increased trading margins. The Sun-Pat British grocery concern increased profit and Rowntree's small health food business, Holgates, raised earnings 10-fold, the statement said. Offsetting factors included currency movements, which cost the company nearly 5.0 mln stg. Sales tax hurt Canadian profits on confectionery operations, and the company faced strong competition in the U.K. Snack and Mid East export markets.

Salomon Brothers international inc said it has raised the size of its Collateralised Mortgage Obligation TRUST 23 to 350 mln dlrs from the 228 mln dlrs announced yesterday. All other terms of the issue remain the same, Salomon said.

attributed the rise in 1986 net profit to higher prices and an increase in gold sales to 237,969 ounces from 206,467 ounces in 1985. The offshoot, which operates Australia's largest gold mine, in North Queensland, earlier reported net profit rose to 60.50 mln dlrs from 50.76 mln in the 1985 period of 10 months from the start of production. Sales of silver also rose to 165,968 ounces from 109,516. Kidston said in a statement it will spend about 5.5 mln dlrs to upgrade its mill grinding circuit to a mill-ball, mill-crushing circuit to boost output by 25 pct from end-1987.

China has closed the second round of bidding by foreign firms for offshore oil exploration rights, the China Daily has reported. It quoted a spokesman for the China National Offshore Oil Corp (CNOOC) as saying China signed eight contracts with 15 foreign firms for blocks in the Pearl River mouth and south Yellow Sea covering a total area of 44,913 sq km. Second round bidding began at the end of 1984 and only one well has so far produced results -- Lufeng 13-1-1, 250 km south-east of Shenzhen, with an output of 6,770 barrels a day. The well was drilled by a group of Japanese companies. The spokesman added CNOOC was ready to enter into contracts for offshore blocks before third round bidding began. He did not say when this would be, but added the contracts would not be bound by restrictions imposed during the second round. China has signed 36 oil contracts and agreements with 37 companies from 10 countries since 1979, when offshore exploration was open to foreigners. Eleven contracts were terminated after no oil was discovered. Foreign firms have invested 2.1 billion dlrs on offshore China since 1979.

Jacobs Suchard AG hopes for another excellent year in 1987 after a 27 pct increase in 1986 net profit. Results in the first few months show it heading in the right direction, company president Klaus Jacobs said. The group reported 1986 net profit of 190.9 mln Swiss francs compared with 150.4 mln in 1985 and raised its dividend per bearer share to 160 francs from 155 francs. Jacobs said the increase in profit, which far exceeded the company's target of five pct real annual growth, had been made possible by restructuring measures introduced in January 1986 which had also made some major acquisitions possible last year. Hermann Pohl, general director in charge of economic affairs, said the 2.7 pct decline in group turnover to 5.24 billion francs was due to currency factors. A 5.2 pct negative currency influence was partially offset by growth in operations and by structural changes within the group. Turnover in the coffee business fell to 3.10 billion francs from 3.56 billion in 1985 while turnover in the chocolate sector rose to 2.14 billion francs from 1.82 billion. The tonnage sold in both sectors declined due to higher prices and lower consumer demand, especially in France and West Germany. Jacobs Suchard increased its market share in West Germany to 44.9 pct from 39.9 pct in 1985, largely as a result of acquisitions. Market share in France was little changed at 25 pct against 25.3 pct. Pohl said the group's average tax rate rose to 32.5 pct from 28.8 pct because of the higher profits and despite write-offs on the losses of new acquisitions. A further increase in tax levels was expected in future. Taxes jumped 51.3 pct to 92 mln francs in 1986 from 61 mln the previous year.

Shr 24 cts vs 31 cts Net 2,245,000 vs 2,885,000 Revs 50.7 mln vs 46.5 mln Avg shrs 9,396,000 vs 9,270,000 Year Oper shr 96 cts vs 99 cts Oper net 8,994,000 vs 9,220,000 Revs 191.5 mln vs 174.7 mln Avg shrs 9,394,000 vs 9,282,000 NOTE: 1985 year net excludes 1,360,000 dlr loss from discontinued operations. Share adjusted for three-for-two stock split.

Prime Minister Brian Mulroney said he held "frank" discussions with the Canadian province premiers on the pace of free trade talks with the United States, but the longstanding issue of provincial ratification remains to be settled. Speaking to reporters after nearly five hours of meetings with the 10 premiers, Mulroney said further discussions would be held in June and September to discuss the role of the provinces in approving any new trade deal. But he maintained progress was being made in the sweeping talks with the Unites States that got under nearly two years ago. "It appears reasonable progress is being made (in the talks)," Mulroney said. Alberta Premier Don Getty agreed, "Things are running pretty quickly now." The talks, launched by Mulroney's Progressive Conservative government after concerns about protectionist sentiment in the U.S., are aimed reducing the remaining barriers between the world's largest trading partnership. But the provinces are expected to play a major role in any new trading arrangement, and some of the provincial leaders complained of a lack of progress on reaching a ratification formula. "It's my view that we should be thinking about these things right now, along with the questions of the substance of the agreement," commented Ontario Premier David Peterson, who has been highly critical of the talks in the past. But Newfoundland Premier Brian Peckford said an agreement was more likely to emerge by consensus and there would be no need for a "hard and fast formula." Peckford said it appears Canada is prepared to make concessions to the United States on financial services in order to make inroads on other bargaining areas, such as agriculture. Canadian published reports, quoting government sources, say the two countries are close to reaching a trade deal and it will involve eliminating border tariffs and many non-tariff barriers over the next 10 to 12 years. A rough draft of the accord is expected to be presented to the premiers at the June meeting while the finished document is hoped to be presented to Congress in October. "It's a very tight time frame," Ontario's Peterson said last night. "But at this moment it is tough to say what will transpire."

Commerce Secretary Malcolm Baldrige has asked the White House to consider blocking the planned Japanese acquisition of a major U.S. supercomputer and semiconductor manufacturer for national security reasons, U.S. officials said. The officials, who asked not to be named, said yesterday that Baldrige has "serious concerns" about the sale of Fairchild Semiconductor Corp. to Fujitsu Ltd., another major electronics firm. The officials told Reuters that if the sale went through it could leave the U.S. military overly dependent on a foreign /ompany for vital high technology equipment used in its advanced missiles, aircraft electronics and intelligence gathering. In addition, they said, the sale would also worsen the already strained trade relations between the U.S. and Japan stemming from the huge Japanese surplus. The White House Economic Policy Council would consider the sale in the coming weeks, they said. Defense Secretary Caspar Weinberger's position was not immediately known but in the past he has opposed the transfer of high technology to foreign governments and companies. Supercomputers made by Fairchild and other U.S. manufacturers are widely used throughout the world, but none have been sold to the Japanese government or to Japanese government-run agencies and universities.

Dune Resources Ltd said its oil reserves increased 225 pct during 1986 while its natural gas reserves were up six pct. The company said its proven oil reserves were estimated at 605,682 barrels on December 31, up from 186,655 barrels a year earlier boosted by discoveries during the year put at 423,659 barrels. It said gas reserves rose to 8.8 mln cubic feet from 8.3 mln on Dec 31, 1985, as discoveries of nearly 1.3 mln cubic feet were partialy offset by production of 287,391 cubic feet and downward revisions of previous estimates totaling 491,694 cubic feet.

Iran attacked the Saudi Arabian supertanker Arabian Sea off the United Arab Emirates last night but the vessel was able to proceed after the incident, Lloyds Shipping Intelligence reported. The 315,695-dwt Arabian Sea had set sail on Tuesday after loading oil at the Saudi port of Ras Tannurah. Lloyds said the attack occurred at about 2200 hrs local time (1800 GMT).

The Commodity Credit Corporation, CCC, has reallocated two mln dlrs in credit gurantees previously earmarked for sales of U.S. protein meals to cover sales of vegetable oil and tallow to El Salvador, the U.S. Agriculture Department said. The action reduces coverage for sales of protein meals to 14 mln dlrs from 16 mln dlrs and creates new lines of one mln dlrs for tallow and/or greases and one mln dlrs for vegetable oils, the department said. All sales under the credit guarantee lines must be registered and exported by Sepember 30, 1987, it said. The guarantee rates include a charge to provide for a yearly interest rate coverage of up to 4.5 pct on the guaranteed value, the department said.

The Panamanian bulk carrier Juvena is still aground outside Tartous, Syria, despite discharging 6,400 tons of its 39,000-ton cargo of wheat, and water has entered the engine-room due to a crack in the vessel bottom, Lloyds Shipping Intelligence Service said. The Juvena, 53,351 tonnes dw, ran aground outside Tartous port basin breakwater on February 25 in heavy weather and rough seas.

Dutch shipping and transport group PHS Van Ommeren NV said it has taken over a small Dutch gas container firm as a first step in establishing a world-wide gas container organisation. The firm, Liquid and Gas Transport BV (LGT), employs 10 people and has a fleet of 200 gas containers. Van Ommeren will shortly open an office in Singapore and expand its facilities in Houston to establish the gas container network.

International American Homes inc said it has contracted to acquire for about 11,850,000 dlrs to be paid 73 pct in cash and 27 pct in International American common stock to be valued on a 30 day trading average prior to closing. It said the price is based on Diversified's estimated 3.2 mln dlrs pro forma pre-tax earnings for 1986 after adjustment for certain non-continuing expenses. Diversified, a developer of single family housing in the Atlanta market, had 1986 revenues of about 25.3 mln dlrs. The acquisition if subject to International American arranging financing.

4th qtr Shr nine cts vs four cts Net 658,159 vs 299,930 Revs 3,770,341 vs 2,614,224 Avg shrs 7,382,802 vs 6,747,442 Year Oper shr 33 cts vs 18 cts Oper net 2,287,179 vs 1,045,799 Revs 13.1 mln vs 8,577,853 Avg shrs 6,874,505 vs 5,951,612 NOTE: 1985 year net excludes 13,000 dlr tax credit. Corrects March 11 item to exclude tax credit

Qtly div 27 cts vs 27 cts prior Pay April 15 Record March 25

Centre National des Caisses d'Epargne et de Prevoyance (CENCEP) said it is issuing a 1.9 billion franc two-tranche, 12-year domestic bond led by Caisse des Depots et Consignations. One 1.3 billion franc tranche of 5,000 franc bonds will have a fixed rate of 8.70 pct and issue price of 96.30 pct. A 600 mln franc tranche of 5,000 franc bonds will carry interest of nine pct in the first year and then will have interest based on 90 pct of average bond market yields (TMO) with a guaranteed minimum of 5.5 pct. Issue price is 97.16 pct. Payment date for both non-callable tranches is April 6.

Shr 10 cts vs 11 cts Net 226,000 vs 236,000 Sales 1.3 mln vs 1.5 mln Year Shr 38 cts vs 45 cts Net 819,000 vs 1,001,000 Sales 5.8 mln vs 6.4 mln

U.S. Agriculture Secretary Richard Lyng said he will ask Japan to offer a share of its rice market to U.S. exporters when he visits that country next month. In an interview with Reuters, Lyng also said the Reagan administration will ask Tokyo to remove its quotas on U.S. beef and citrus exports. Lyng, who plans to be in Japan April 14-27, said he will not ask Tokyo to liberalize fully its rice market. "We will urge that they consider sharing their rice market," he said. The USDA secretary would not say how big a share of the Japanese rice market the U.S. would request. "We've got none of it now. If we got one per cent of it, it would be a big improvement," he said. Last year, the Reagan administration rejected a petition by the U.S. rice industry seeking relief from Japanese import restrictions. However, the U.S. said it would reexamine the issue if by mid-1987 Japan did not roll back import barriers to U.S. rice exports. Lyng said he would not be conducting formal negotiations next month with Japan over their beef and citrus quotas, but that his visit "may be a forerunner in a general way" to talks prior to expiration of the bilateral agreement in March 1988. He said, however, that the U.S. "will ask for a definite liberalization of those items (beef and citrus).... When you translate 'liberalization' into Japanese, it means do away with the quota."

The Turkish ore/bulk/oil vessel Obo Engin, 78,078 tonnes dwt, had an explosion in its boiler yesterday, Lloyds shipping Intelligence Service reported. The vessel has retained some power and yesterday evening was in position Lat. 25 57 N., Long. 75 06 W. It is diverting to Jacksonville, Florida, with its cargo of 58,000 tons of coal. The vessel was bound for Iskenderun, Turkey from Lake Charles.

Merrill Lynch and Co Inc fired the head of the mergers department in its London office today, saying he had been unable to provide a "satisfactory explanation" in response to insider trading charges filed yesterday by the Securities and Exchange Commission. Merrill had suspended the official, Nahum Vaskevitch, yesterday saying at the time it was "disappointed and angry" if the SEC charges are true. Merrill Lynch's statement at midday today said the firm will continue to cooperatie fully with authoriteis in the U.S. and London investigating Vaskevitch's activities.

The St Lawrence Seaway and the Welland Canal linking Lakes Erie and Ontario were expected to open as scheduled on March 31 and April 1, respectively, a St Lawrence Seaway official said. The entire Seaway is already free of ice due to the mild Winter and could be open for navigation today, "but there doesn't seem to be enough demand from shipping companies to warrant an early opening," the Canadian official said. Repairs are continuing at a stepped up pace on the Welland Canal and should be completed by the April 1 start-up date, she added.

Eurobond prices in the floating rate note sector slumped across the board by as much as a full point on some issues. "Today has been irrational, irresponsible -- possibly the worst day in what has been a dire six months for the floater market," commented a senior FRN trader at a U.K. Bank. Republic of Ireland FRNs were marked sharply down in initial trading and market nerves soon infected other supra-national and sovereign paper with dealers attributing the falls to aggressive professional shorting by a few leading U.S. Investment houses. The FRN market has been suffering from acute contraction of liquidity and consequent drain of investor confidence since the effective collapse in the market for perpetual floating rate issues late last year. Since then, FRN specialists noted that retail interest has been sparse or completely absent and the stagnant market for floating rate paper has become increasingly vulnerable to manipulation, with nerves affecting all variety of borrowers. Floating rate debt of U.S. And Canadian banks came under pressure last month when fears resurfaced about their exposure to Latin American debt. Canadian banks were hard hit today. Fears about the Irish economy, exacerbated by recent post-electoral political wrangling in Dublin, prompted a sell-off of Ireland paper this morning with both dollar and mark-denominated Irish issues tumbling by a full point or more. However, FRN dealers polled by Reuters felt the Irish issues had been singled out -- as the U.S. And Canadian banks were most recently -- as the market's most vulnerable sector. "A handful of professional houses are targetting the weak paper, shorting it aggressively and this is just starting the domino effect with basically sound paper also starting to roll with it," a senior FRN market source explained. Although floating paper from better-regarded borrowers such as the U.K. Managed to finish the day only around 10 basis points down, other sovereigns like Sweden and supranationals like Eurofima suffered heavier losses, FRN dealers said. Debt exposure fears continued to undermine U.S. And Canadian bank paper with one U.K. House citing a fall of 1-5/8 point on the day on a Royal Bank of Canada issue. FRN traders noted Japanese investors, initially enthusiastic floating rate debt buyers, had lost confidence in the market and speculated that a crisis meeting, such as the one called upon the collapse of the perpetuals, could be imminent. "Retail clients just don't want to know about the floaters any more so it has degenerated to a wily pass-the-parcel among the professionals, all scheming to sweep the paper under the carpet," another senior FRN trader said. "I don't know what is going to happen to the market. It can't go on like this," he added. In the fixed-rate sector, trading was dull with the market still attempting to digest a heavy volume of new issues from earlier this week although primary market activity slowed somewhat today, trading and syndicate sources reported. Dollar straight bonds ended the day barely changed from opening levels as investors failed to react on the unexpectedly large 4.1 pct rise in U.S. February retail sales, prefering to wait for tomorrow's producer price and business inventory data. A 100 mln dlr deal for Norsk Hydro was launched later in the day and the issue was trading around its total two pct fees at close of grey market trade although dealers said the borrower's frequent appearance in the euromarkets could deter investors. The Canadian dollar sector however saw good two-way trade and a continuation of recent healthy volume as the Canadian dollar rides high on the foreign exchanges and futures markets. Dealers said the strength of the Canadian dollar, which has firmed especially over the last two days, has renewed end investors confidence in the currency. A new Canadian dollar issue for Hydro Quebec was seeing excellent demand, sector specialists said, and the issue was quickly increased to a total of 150 mln dlrs from 125 mln. "This kind of paper can be hard to sell and it is gratifying to see such a high level of interest, both European and domestic Canadian demand," commented one trader at a Canadian house. Eurosterling, which has been in the limelight lately, also on foreign exchange and currency bullishness, slipped slightly. Senior eurosterling sources noted that bond prices fell back today, more or less in line with losses seen on the U.K. Government bond market -- around 5/8 point lower at the longer end of the eurosterling market. Dealers said overseas investors had not been buying today and predicted consolidation before next week's U.K. Budget. A 55 mln stg convertible issue for confectioners Rowntree Mackintosh was well bid at 104-5/8 105-1/8 pct and expected to go well. Euroyen bonds showed a firmer tone led by some professional short covering from Tokyo. Today's 23 billion deal for Toyota Motor Credit with a 4-1/2 pct coupon was deemed tight however.

periods ended January 31 Shr profit 22 cts vs loss 26 cts Net profit 439,000 vs loss 522,000 Revs 5,600,000 vs 3,859,000 Nine mths Shr profit 46 cts vs loss three cts Net profit 912,000 vs loss 59,000 Revs 14.6 mln vs 18.3 mln NOTE: Year ago revenues include 400,000 dlrs in quarter and 2,227,000 dlrs in nine months from operations of subsidiary sold in April 1986

Shr nine cts vs 22 cts Net 700,000 vs 2,200,000 Revs 5,400,000 vs 5,700,000 Avg shrs 7,589,344 vs 10.1 mln 12 mths Shr 43 cts Net 3,500,000 Revs 21.6 mln NOTE: 12 mth figures not available for 1985 since company started operations March 31, 1985.

Minister of State for Finance Tom Hockin said he has asked the Canadian Bankers Association, an industry lobby group, for an explanation of the level of credit card interest rates. Hockin said he hopes to here the association's response on the "important" issue soon. Hockin was responding to questions in the House of Commons about why credit card rates, which run as high as 28 pct per year, remain high when other rates are falling. Today, the Canadian bank rate fell to 7.28 pct from 7.54 pct last week and the Canadian Imperial Bank of Commerce cut its prime rate, effective tomorrow, to 8.75 pct from 9.25 pct.

Oper shr profit two cts vs loss 19 cts Oper net profit 523,000 vs loss 2,191,000 Revs 102.5 mln vs 39.9 mln Avg shrs 20.0 mln vs 11.1 mln Year Oper shr profit 11 cts vs loss 29 cts Oper net profit 2,240,000 vs loss 2,884,000 Revs 304.4 mln vs 50.3 mln Avg shrs 19.4 mln vs 9,759,000 NOTE: 1986 4th qtr and year oper net excludes a gain of 492,000 dlrs and 1,241,000 dlrs, respectively, for carryforwards and a loss of 135,000 dlrs and 533,000 dlrs, respectively, for early extinguishment of debt. 1985 4th qtr and year oper net excludes a loss of 1,457,000 dlrs or 14 cts per share and loss 1,735,000 dlrs or 18 cts per share, respectively, for discontinued operations.

Shr loss two cts vs profit 10 cts Net loss 79,000 vs profit 507,000 Revs 10.6 mln vs 2,238,000 12 mths Shr profit two cts vs profit 23 cts Net 89,000 vs 1,130,000 Revs 21.4 mln vs 7,766,000

Federal Reserve Board Chairman Paul Volcker said current data does not give a clear sign that the deterioration in the U.S. trade balance has yet been reversed. "The data we have in hand do not provide clearcut evidence that the deterioration in the trade balance has yet been reversed," Volcker said in remarks prepared for delivery to a luncheon for community leaders here. However, Volcker said there are encouraging signs, particularly the rising volume of exports over the past year, achieved despite relatively slow growth abroad. Volcker warned it is not sustainable from an economic perspective to pile up foreign debt while failing to make the investment needed to generate growth and earn the money to service the debt. He said the process of restoring external balance to the U.S. economy requires dealing with the budget deficit. He said needed economic adjustment will require a relative shift of financial and real resources into internationally competitive industry. "More of our growth will need to be reflected in net exports and business investment and less in consumption," Volcker said.

The use of generic in-kind commodity certificates has helped ease storage problems and is a necessary part of export promotion programs, a senior executive for the world's largest grain company said. Testifying before the House Agriculture subcommittee on wheat, soybeans and feedgrains, Robbin Johnson, vice president of Cargill, Inc., disputed claims that U.S. grain companies have made huge profits from certificate trading. "The certs program is not in any way a windfall to the trade," he said. Johnson said that Cargill has been dealing with a two pct spread in certificate transactions, and that this is within the normal grain marketing levels. Johnson recognized current concern over the cost of certificates as compared to cash, but said that critics need to look more closely at the savings caused by certs, noting for example that widespread use of certs in the PIK and Roll marketing technique last summer helped ease storage costs. Certificates are also an important part of any export promotion program, he said. "The more you look at ways to expand export markets, the more you have to look at ways to expand certs to put more grain into the market to meet demand," he said. Subcommittee chairman Dan Glickman (D-Kans.) said his committee would be looking at the certificate program later this year and studying the General Accounting Office report on certificate costs.

The House Ways and Means Trade Subcommittee unanimously approved a toned-down version of legislation designed to toughen U.S. trade laws and wedge open foreign markets to more U.S. goods. The measure now goes to the full House Ways and Means Committee next week, but major changes are not expected, congressional sources said. "This product could very well be toughening our trade policy and doing it in a manner that opens markets without this frightening word 'protectionism'," Ways and Means chairman Dan Rostenkowski, an Illinois Democrat said. The trade subcommittee backed away from mandating specific retaliation against foreign countries for unfair foreign trade practices as the House had approved in a trade bill last year. But it held over for the full Ways and Means Committee debate on a controversial plan by Rep. Richard Gephardt to mandate a reduction in trade surpluses with the U.S. by countries such as Japan, South Korea and Taiwan. Gephardt, a Missouri Democrat, has not decided the exact form of his amendment, an aide said. Last year the House approved his idea to force an annual ten pct trade surplus cut by those countries. The trade bill will be wrapped in with legislation from other committees dealing with relaxation of export controls, incentives for research, expanded worker training and education and other efforts to increase U.S. competitiveness. The comprehensive trade bill is to be considered by the full House in late April and then will be considered by Senate committees. It requires President Reagan to retaliate against foreign unfair trade practices but do not mandate quotas or tariffs and allow an exemption if U.S. economic security would be harmed by U.S. actions against other countries. The bill would make it easier for U.S. industries to win relief from surges of imports of competitive products. It extends until January 1993, the administration's authority to negotiate trade agreements as part of the new round of multilateral talks under the General Agreements on Tariffs and Trade. And, it includes provisions to tighten trade rules on copyrights, patents and telecommunications goods.

NZI Capital Corp, a unit of , is offering 150 mln dlrs of guaranteed notes due 1997 yielding 8.36 pct, said sole manager Kidder, Peabody and Co Inc. The notes have an 8-1/4 pct coupon and were priced at 99.261 to yield 115 basis points more than comparable Treasury securities. Non-callable for seven years, the issue is rated A-2 by Moody's Investors Service Inc and A-plus by Standard and Poor's Corp. The notes will be listed on the New York Stock Exchange. NZI is an insurance company in New Zealand.

president jaime lusinchi defended the 20.3 billion dlr debt rescheduling accord his government recently signed, saying it will open new credit flows and bring needed foreign investment to venezuela. In his annual state of the nation speech, lusinchi also said venezuela supports other latin american debtors, despite having reached a rescheduling accord on its own. In the 90-minute speech to the congress, lusinchi summed up the achievements of his administration, which took office in february 1984. He pointed to the 3.3 pct growth in non-oil gdp in 1986 and to a "moderate" 12 pct inflation rate. Lusinchi said the 20.3 billion dlr debt rescheduling signed feb. 27 put an end to a process which had been 'the calvary of our nation over the post four years.' In the refinancing accord, he said, venezuela managed to achieve 'the most inmportant thing, which is the reopening of financial flows from abroad, essential for the financing of development and the (financing) of trade and investment.' Once all the details of the agreement are finalized, he said, venezuela will seek new financing for the imported components of new development projects. "our intention is not to continue being net exporters of capital, but to protect our balance of payments with a flow of capital towards venezuela," he said. Under the agreement signed february 27, venezuela extended payments on the debt from 12 to 14 years, while the interest rate was lowered from 1 y 1/8 to 7/8 of a pct over libor. At the same time, payments over the next three years were lowered from 3.450 to 1.350 billion dlrs. Lusinchi defended the rescheduling accord against critics who said it merely deferred the weight of payments to future governments.

Finance Minister Kiichi Miyazawa told a press conference he thinks exchange rates will remain stable due to the currency accord reached in Paris last month by six major industrialised nations but he did not say for how long. The dollar has hovered around 153 yen since the six agreed to cooperate to bring about currency stability. Asked to comment on remarks by some U.S. Officials calling for a further decline of the dollar, Miyazawa said only the U.S. President and the U.S. Treasury Secretary can make official statements about exchange rates.

Two small shipping companies have reached a pay deal with striking seamen, but union leaders said most of Brazil's 40,000 seamen were still on strike. A union spokesman in Rio de Janeiro said the seamen had accepted a 120 pct pay offer from the companies, Globo and Flumar, which have less than 200 employees each. The two-week strike comes as Brazil faces a debt crisis and is delaying exports badly needed to earn foreign exchange. Labour Minister Almir Pazzionotto said the government will not force a settlement of the strike, which was ruled illegal last Friday.

Japanese shipbuilders have applied to the state's Fair Trade Commission to form a cartel to restrict tonnage built to about half of total capacity for the year starting April 1, officials of the Shipbuilders Association of Japan said. Under the plan, 33 yards capable of building ships of more than 10,000 gross tons will curtail operations to three mln compensated gross registered tonnes (CGRT) a year against capacity of about six mln CGRT. The Transport Ministry estimates new orders at 3.3 mln CGRT in the year to March 1988 and 3.1 mln the following year. The industry has curtailed production due to oversupply nearly every year since 1977/78, under cartel or Transport Ministry guidelines. The latest guidelines call for a ceiling of four mln CGRT in the year to March 31. The cartels, self-imposed and self-regulated, are not legally binding, but industry finds it in its own interest to stick to them. The slowdown in orders has been caused by the strong yen and a protracted worldwide shipbuilding slump.

A total of 1.886 mln hectares was sown to wheat in Britain, excluding Northern Ireland, up to December 1, 1986 for the 1987 crop, a Ministry of Agriculture census shows. It compares with 1.925 mln planted in the same period 1985. The barley area was unchanged at 952,000 ha, but oilseed rape increased to 393,000 from 333,000 ha.

Finance Minister Kiichi Miyazawa told a parliamentary session the current dollar/yen exchange rate is not necessarily satisfactory for the Japanese economy. Miyazawa said the Paris currency accord among six major industrial nations last month does not necessarily mean the yen should stay stable around current levels in the future. The Paris agreement was aimed at stopping a further rapid fluctuation of exchange rates, he said. The accord stipulated that current rates reflect fundamentals of the six nations - Britain, Canada, France, Japan, the U.S. And West Germany.

Trading in shares of Schweizerische Aluminium AG, Alusuisse, was suspended on the Zurich stock exchange after today's announcement by the company that it would cut its share capital by 50 pct, the bourse said. The bourse said trading would resume again on Monday. Alusuisse bearer shares closed at 490 francs yesterday, registered shares at 170 francs and the participation certificates at 45.50.

Oesterreichishce Kontrollbank AG is issuing a 100 mln Canadian dlr eurobond due March 20, 1997 at nine pct and priced at 101-7/8 pct, Morgan Guaranty Ltd said as joint book-runner with LTCB International. The bond is available in denominations of 1,000 and 10,000 dlrs and will be listed in Luxembourg. Fees comprised 1-1/4 pct selling concession with 3/4 pct for management and underwriting combined.

Two small shipping companies have reached a pay deal with striking seamen, but union leaders said most of Brazil's 40,000 seamen were still on strike. A union spokesman in Rio de Janeiro said the seamen had accepted a 120 pct pay offer from the companies, Globo and Flumar, which have less than 200 employees each. The two-week strike comes as Brazil faces a debt crisis and is delaying exports badly needed to earn foreign exchange. Labour Minister Almir Pazzionotto said the government will not force a settlement of the strike, which was ruled illegal last Friday.

Shr 19 cts vs 32 cts Net 586,000 vs 802,000 Sales 14.2 mln vs 15.1 mln Avg shrs 3,006,372 vs 2,506,250

First Boston Inc said it has started its previously-announced tender offer for all common shares, 2.19 dlr cumulative preference shares and 11.25 dlr convertible preferred shares of Allegheny International Inc at 24.60 dlrs, 20.00 dlrs and 87.50 dlrs respectively. In a newspaper advertisement, the company said the offer and withdrawal rioghts will expire April Nine unless extended. The offer is conditioned on receipt of at least a majority of Allegheny voting power on a fully diluted basis and on receipt of at least two thirds each of the preference and preferred shares. A merger approved by the Allegheny board in which remaining common, preference and preferred shares would be acquired at the tender prices is to follow the offer. Receipt of the minimum amounts under the offer would give First Boston sufficient voting power to assure approval of the merger without the affirmative vote of any other shareholder, the company said.

Employers in Rotterdam port's strike-hit general cargo sector have been served with an injunction until May 7 preventing them from continuing with plans for 350 redundancies this year, an employers' organisation spokesman said. An Amsterdam court yesterday ruled there had been a legal fault in the employers' redundancy procedure. The employers' spokesman said they were likely to restart the redundancy procedure afresh next week in an attempt to pre-empt the May 7 final court ruling. Port and transport union representative Paul Rosenmuller described the court ruling as a victory for the union, but added there was still a long way to go before the dispute that has hit the general cargo sector for the past eight weeks was resolved. Rosenmuller said there would be a meeting of the sector's 4,000 workers this afternoon to decide on further action in the campaign of lightning strikes that began on January 19 in protest at planned redundancies of 800, starting with 350 this year. The employers said there were no immediate plans for meetings with the union either on the proposed redundancies or on a new work practice agreement in the sector. Meanwhile, discussions on a new work agreement in the port's grain sector, due to resume next week, are stalemated, although agreement could be close in the coal and ore sector, the employers' spokesman added.

Harbour workers said they will strike for 24 hours on Monday, effectively closing all New Zealand's ports. The strike is over deadlocked wage negotiations. A Harbour Employees Workers' Union spokesman told reporters there will be no ship movements in and out of ports from midnight on Sunday (1200 hrs GMT March 15). There will be no loading or unloading involving harbour board workers and the Cook Strait ferries, which provide a vital link between New Zealand's North and South Islands, will not run, he added.

Two small shipping companies reached a pay deal with striking seamen late yesterday, but union leaders said most of Brazil's 40,000 seamen were still on strike. A union spokesman in Rio de Janeiro said the seamen had accepted a 120 pct pay raise offer from the companies, Globo and Flumar, which have less than 200 employees each. The two-week strike comes as Brazil faces a debt crisis and is delaying exports badly needed to earn foreign exchange. Labour Minister Almir Pazzionotto said the government will not force a settlement of the strike, which was ruled illegal last Friday.

Portugal's consumer prices rose one pct last month after a 1.2 pct increase in January and a 1.3 pct rise in February 1986, the National Statistics Institute said. The consumer price index (base 1976) rose to 761.3 from 753.7 in January and compared with 695.4 in February 1986. This gave a year-on-year February inflation rate of 9.5 pct against 9.8 pct in January and 12.6 pct in February 1986. Measured as an annual average rate, inflation in February was 11.1 pct compared with 11.4 pct in January. The government forecasts annual average inflation of about eight pct this year.

About 220 men in Rotterdam port's grain sector stopped work this afternoon in an unofficial protest at the slow progress of negotiations over a new work practice agreement, a spokesman for the port and transport union FNV said. Negotiations between the union and employers, which are due to resume early next week, are currently stalemated with the union refusing to accept sweeping changes in working hours and practices in return for a 1.5 pct pay increase. The FNV spokesman said the action did not yet have official backing, but added that next week matters might be different.

Novell Inc said the dividend to effect its previously announced two-for-one stock split will be distributed April 13. As stated at the time of the original announcement, the company said the payment will be made to holders of record March 31.

Dutch port and transport union, FNV, has called off the strikes against planned redundancies that have hit Rotterdam port's general cargo sector for the past eight weeks, strike leader Paul Rosenmuller told a mass meeting. The decision followed yesterday's ruling by an Amsterdam court preventing the sector's employers continuing with current plans for 350 redundancies this year until the court sits again on May 7, Rosenmuller told a meeting of the general cargo sector's 4,000 workers today. The court ruled the employers had made a mistake in the complicated legal procedure for obtaining official permission for the redundancies, and therefore could not proceed. "There is no need to continue the strikes for the moment now the immediate pressure of redundancies has been lifted," Rosenmuller said. But he added that the strikes, which began on January 19 in protest against plans for 800 redundancies by 1990, could resume at any time before May 7 if the employers made any moves to re-apply for permission for the redundancies. SVZ labour relations manager Gerrard Zeebregts said they would be meeting their lawyers today with a view to re-applying for this permission next week in the hope of gaining approval for the redundancies within a month.

Schweizerische Aluminium AG, Alusuisse, plans to reduce share and participation certificate capital by 50 pct to cover losses in 1986 and those carried forward from the previous year, chief executive Hans Jucker said. Jucker told a news conference that the greatest drain on its financial resources had been stopped, but after extraordinary charges the net loss of 688 mln francs in 1986 was only slightly under the 756 mln loss of the previous year. The losses in 1986 and those carried over from 1985 made it necessary to reduce capital by 50 pct, he said. However, Jucker said the company improved liquidity through a recovery in cash flow and conversion of 300 mln Swiss francs of credit into a subordinated loan. Trading in Alusuisse shares was suspended on the Zurich stock exchange after today's announcement by the company that it would cut its share capital by 50 pct, the bourse said. Trading would resume again on Monday.

Computer Memories Inc, which ended its disk drive operations in June 1986, agreed to acquire in a transaction which will give Hemdale's owner control of the resulting company. Computer Memories' principal asset is about 29.4 mln dlrs in cash and cash equivalents. It has agreed to exchange newly issued shares equaling 80 pct of the aggregate issued to acquire Hemdale. That company's owner, John Daly, would then become chief executive officer of the combined company which would be renamed Hemdale Film Corp. Computer Memories said the proposed transaction is subject to the results of certain corporate reviews and approval of its shareholders, who will hold a special meeting as soon as practicable. The company said it has 11,109,190 shares outstanding, of which about 1,734,000 are held by Intel Corp . It is anticipated the FIntel shares will be purchased for 2.75 dlrs a share in connection with the merger with Hemdale, Computer Memories said.

KLM Royal Dutch Airlines said it is negotiating for a minority stake in a British and Commonwealth Shipping Plc courier service in a transaction which might include a convertible loan issue. KLM, already active in the fast growing door-to-door delivery market through a 50-pct stake in a Dutch courier service, is seeking to buy one-third of from British and Commonwealth. The two companies agreed earlier this month for KLM to take a 15-pct stake in British and Commonwealth commuter airline Air U.K. Ltd in a deal worth around two mln stg.

Negotiations on a new International Natural Rubber Agreement, INRA, are approaching the make-or-break point and prospects for a future pact appear to be in the balance, delegates said. Manaspas Xuto of Thailand, chairman of the INRA renegotiation conference, is holding consultations with a small group of producers and consumers to try to resolve major outstanding issues. When the talks began on Monday Xuto said those issues should be settled by the end of the first week to allow time to draft an agreement during the second week. The talks are due to last until March 20. Xuto said, "There is nothing concrete yet, but the atmosphere is good." The discussions are expected to continue late into the night, and Xuto said he may hold weekend meetings. Delegates said negotiations now focus on the degree to which price adjustments should be automatic. At present, if the market price has been above or below the reference price (set at 201.66 Malaysian/Singapore cents a kilo in the current agreement) for six months, the reference price is revised by five pct or by an amount decided by the International Natural Rubber Organisation council. Consumers are asking that, in these circumstances, the adjustment be automatic at five pct or more. Producers want the council to have the last word and have resisted reducing its role in the price adjustment procedure. Delegates said there seems to be optimism about settling another issue -- that of the floor price. It now appears that consumers may consider dropping their insistence of a downward adjustment of the floor price, called the "lower indicative price," under certain circumstances. This means that any possible compromise would centre on the reference price, and the "may buy" (or "may sell") and "must buy" or "must sell" levels, without changing the "lower indicative price" -- which is set at 150 Malaysian/Singapore cents in the current pact. Delegates said that in exchange for consumer flexibility on the floor price question, producers may consider agreeing to another consumer proposal for more frequent price reviews -- at 12 month intervals instead of 18 at present.

Shr one ct vs three cts Net 66,922 vs 194,531 Rev 4.2 mln vs 5.7 mln Nine months Shr two cts vs four cts Net 93,802 vs 260,702 Rev 10.1 mln vs 13.2 mln NOTE: Nine months 1987 period includes gain of 196,043 dlrs from sale of Meston Lake Resources shares and a credit of 127,000 dlrs from a favroable settlement of s state income tax assessment. 1986 nine months period includes gain of 160,431 dlrs, or two cts a share, from sale of Ferrotherm Co.

Soviet-West German trade is expected to develop favourably due to Moscow's increasing openness to East-West economic relations, Dresdner Bank AG's Moscow representative Michael Stein said. He told a bank presentation the Soviet Union was last year hit by the fall in world oil prices, which cut export revenue from oil-related products and natural gas, and its overseas buying power was also adversely affected by the lower dollar. Dresdner Bank economist Alfred Apholte said the Soviet Union's large currency and gold reserves had softened the impact of the dollar weakening and oil price drop.

Moody's Investors Service Inc said it downgraded 3.4 billion dlrs of debt of Beneficial Corp. Cut to Baa-2 from Baa-1 were the senior debt of the company and the guaranteed debt of its unit, Beneficial Overseas Finance NV. Also downgraded were Beneficial's shelf registrations of senior debt to Provisional Baa-2 from Provisional Baa-1 and of subordinated debt to Provisional Ba-1 from Provisional Baa-3. Moody's said the magnitude of Beneficial's 1986 operating losses from write-downs of discontinued businesses has weakened its financial position. "The costs of meeting the potential liability for insurance losses to facilitate the sale of the company's insurance unit and of revaluing other discontinued business segments have substantially exceeded original indications," Moody's said in a release. The agency said Beneficial's consumer finance business remains strong and has the capacity to withstand foreseeable adverse developments. But the withdrawal from nontraditional businesses is weakening consolidated leverage, narrowing funding operations and depressing the quality of earnings, Moody's stressed.

The Port of Singapore Authority (PSA) will spend 1.2 billion dlrs to develop port facilities and cargo-handling equipment over the next five years, Communications Minister Yeo Ning Hong told parliament. Yeo said the improvements were needed to cope with an expected growth of ship tonnage and cargo handled by the port, but gave no further details. The PSA handled 529 mln gross-registered tonnes of cargo in 1985, according to the latest available statistics from the port authority.

Chrysler Corp said its Chrysler First Inc acquired a major portion of the commercial lending portfolio of Beneficial Business Credit Corp, a subsidiary of Beneficial Corp. It said the acquisition involves about 84 mln dlrs of net receivables. Chrysler First, a subsidiary of Chrysler Financial Corp, had receivables of 4.3 billion dlrs at the end of 1986.

New South Wales Treasury Corp is issuing 15 billion yen of eurobonds due April 15, 1992, priced at 101-5/8, with a 4-7/8 pct coupon, Nikko Securities Co (Europe) Ltd said as book-runner and joint lead manager with Mitsui Trust and Banking Co Ltd. The issue will be guaranteed by New South Wales and will be sold in denominations of one mln yen, with listing in Luxembourg. Fees are 1-1/4 pct for selling and 5/8 pct for management and underwriting combined. Payment date is April 15. Co-lead manager is Mitsubishi Finance International Ltd.

West German banking authorities are considering requiring German banks to bring securities holdings into lending ratio calculations used to regulate credit risk, banking sources said. The present interpretation of the credit law limits banks' maximum lending to 18 times eligible capital -- reserves plus equity capital -- but sets no restraints on securities holdings. Under new provisions, weightings would be attached to securities similar to those used for lending. Weightings would range from a zero rating for no-risk assets to 100 pct of total asset value for what authorities consider the highest risk. Low-risk securities carrying a zero rating would include public authority bonds for the federal government, states and municipalities, the sources said. A 20 pct rating would be assigned to issues of domestic banks. Secured bonds of mortgage, shipping and public authority banks would be an exception to this, via such securities as mortgage and municipal bonds. Securities issued by foreign banks would attract a weighting of 50 pct, while authorities are considering requiring banks to include 100 pct of the value of debt assets of foreign issuers, including sovereign borrowers. The sources said the revision is still being discussed, and required approval by the federal Banking Supervisory Office in West Berlin, the Bundesbank, and West Germany's four banking associations. The move is a response to the increasing securitisation of debt markets, they added.

Bally Manufacturing Corp said it is considering the sale of its Six Flag theme amusement park unit and would use the proceeds to pay off debt. In addition to the possible sale of the amusement parks, Bally plans to sell a minority stake in its health club chain to the public. The company will register a proposed offering with the Securities and Exchange Commission for 20 to 30 pct of the health clubs soon, spokesman William Peltier told Reuters. "Selling Six Flags is definitely under consideration," Peltier said in response to an inquiry. He said the company would use much of the income from the amusement park chain, were it to be sold, to repay debt. Six Flags might sell for as much as 300 mln dlrs, analysts said. The health club chain, the nation's largest, is valued at 350 to 375 mln dlrs, they said. Bally reportedly already has been approached about Six Flags by several prospective buyers. The company needs the cash to begin paying back a 1.6 mln dlrs mountain of debt. Bally recently completed a 439 mln dlrs acquisition of the Golden Nugget casino hotel in Atlantic City from Golden Nugget Inc . The purchase pushed its long-term debt to 1.6 billion dlrs, or almost 2.7 times its equity of 600 mln dlrs. Bally's 325-unit health and tennis clubs had revenues in 1986 of more than 450 mln dlrs, or about 28 pct of Bally's total revenues of 1.64 billion dlrs. Bally acquired Six Flags for 147.4 mln dlrs in January 1982 from Penn Central Corp. Bally bought the Great America theme park in Gurnee, Ill., in May 1984 for 113.2 mln dlrs from Marriott Corp . In 1986 the parks had pretax operating profit of 48.6 mln dlrs on revenues of 369.4 mln dlrs. The clubs and equipment unit combined to post operating profit of 60.4 mln dlrs on revenues of 475.6 mln dlrs in 1986, of which 456.2 mln came from the clubs. The company earlier this month said it will take a charge to earnings in the first quarter of 17.3 mln dlrs as a result of its deal to buy back 2.6 mln of its common shares from real estate developer Donald Trump. Under a February 21 deal, Bally agreed to buy the 2.6 mln of the 3.06 mln shares held by Trump at 24 dlrs a share, or 62.4 mln dlrs, plus 6.2 mln dlrs related expenses in exchange for Trump not seeking control of the company for 10 years. The deal also requires Bally to buy Trump's remaining shares for 33 dlrs a share if the stock price does not reach that level by February 21, 1988.

Franklin Resources Inc said it believes earnings could double this year as compared to a year ago when the company reported income of 32 mln dlrs on 143 mln dlrs in revenues. Franklin Resources is a financial services company. Its fiscal year ends September 30.

Shr loss 45 cts vs profit 20 cts Net loss 1,841,000 vs profit 983,000 Revs 56.2 mln vs 102.9 mln Six mths Shr loss 13 cts vs profit 80 cts Net loss 534,000 vs profit 4.4 mln Revs 121.4 mln vs 209.3 mln NOTE: Six months fiscal 1987 includes loss of 17 cts per share from discontinued operations. Per share figures also reflect partial three-for-one stock split effected December 1985.

The U.S. Has dropped its insistence that the floor price in a new International Natural Rubber Agreement, INRA, be revised downward under certain circumstances, conference sources said. The surprise conciliatory move by the U.S. Meets one of the producers' main concerns -- that the floor price, or "lower indicative price," remain unchanged, they said. It is not clear, however, whether all consuming countries will follow suit, as a number of them, in particular Britain, West Germany and Belgium, appeared to have strong reservations, the sources added. The group of consumers has been seeking an adjustment of the "lower indicative price" (set at 150 Malaysian/Singapore cents a kilo in the present pact) if the buffer stock, currently 360,000 tonnes, rises to 450,000 tonnes. The sources said the question of to what extent price adjustments should be automatic remains a problem. Conference chairman Manaspas Xuto of Thailand has been holding consultations with producers and consumers throughout the day. The consumers' group is now holding a separate meeting ahead of further consultations within the "president's group" tonight.

Brazil's labour troubles eased a little today as the authorities announced they were withdrawing troops from the country's main oil installations occupied three days ago. The troops went in at the request of the state-oil company Petrobras because of the threat of a strike by 55,000 oil industry employees. Petrobras said in a statement today it had requested the withdrawal of the troops. The situation in the refineries was calm, it said, and the employees had indicated their willingness to negotiate a pay deal. A national seamen's strike, however, continued and marines remained in the country's main ports. The marines were despatched to the ports after the seamen's strike, now two weeks old, was ruled illegal last Friday. A spokesman at the national strike headquarters in Rio de Janeiro said today a total of l63 ships were strike-bound, 135 in Brazil and 28 in foreign ports. Yesterday two small companies specialised in the transport of chemicals, Global and Flumar, struck a pay accord with their seamen who have secured a 120 pct increase. Brazilian newspapers today hailed these agreements as a sign that the national strike could soon come to an end. Both companies employ fewer than 200 seamen and union leaders said the vast majority of Brazil's 40,000 seamen were still on strike. The threat of a stoppage by oil industry employees appeared today to be receding. Petrobras said in its statement that the company would meet union leaders for pay talks in Rio de Janeiro next Wednesday. Labour Minister Almir Pazzionotto would act as a mediator. Besides industrial troubles, there has also been considerable unrest this week in the agricultural sector. On Tuesday hundreds of thousands of farmers held rallies throughout the country to protest against high interest rates. Television reports showed some of these protests still continuing today, with farmers blockading banks with their vehicles in several towns in the states of Sao Paulo and Parana. The strikes in Brazil come as the government is trying to extricate itself from a serious debt crisis brought on by a deterioration in its trade balance. On February 20 President Jose Sarney announced that Brazil was suspending interest payments on 68 billion dlrs of debt to private banks. Because of the seamen strike exports are being delayed and the country is losing badly needed foreign exchange.

Caesars World Inc, in rejecting a 28 dlr a share takeover bid by New York investor Martin Sosnoff, said it is considering alternatives that include a restructuring of the company and the sale to someone else. In a filing with the Securities and Exchange Commission, Caesars World said its board decided at a special meeting yesterday to "explore and investigate" several alternatives in an effort to thwart Sosnoff's takeover attempt. More

Central Bank President Jose Luis Machinea said negotiations with creditor banks on Argentina's 30 billion dlr private sector foreign debt were difficult. "There is considerable divergence with the banks. We must try to get them to lower the spreads," Machinea told Reuters. He said negotiations with the steering committee for the country's creditor banks in New York would not end next week. Machinea leaves for New York tomorrow with Treasury Secretary Mario Brodersohn to complete Argentina's team at negotiations with the steering committee for a 2.15 biilion dlr loan to see the country through 1987. Argentina is aiming at four pct growth in 1987 and has said this target is not negotiable.

SmartNames Inc said it reached an agreement in principle to buy American Information Network. Terms of the agreement were not disclosed. The company said the purchase of American will allow it to meet the needs of a broader range of direct mail industry customers.

RJR Nabisco Inc is raising 500 mln dlrs via an issue of sinking fund debentures due 2017 yielding 8-3/4 pct, said lead manager Shearson Lehman Brothers Inc. The debentures have an 8-5/8 pct coupon and were priced at 98.675 to yield 115 basis points over the off-the-run 9-1/4 pct Treasury bonds of 2016. Non-refundable for 10 years, the issue is rated A-1 by Moody's and A by Standard and Poor's. A sinking fund beginning in 1998 to retire annually five pct of the debentures can be increased by 200 pct at the company's option. Dillon, Read and Co Inc co-managed the deal.

CitiCorp appears to be digging in its heels for tough negotiations over the billions of dollars in loans that Brazil owes to money center banks, Wall Street analysts said. "I view it as pre-negotiation posturing," said analyst Carole Berger of Cyrus J. Lawrence Inc, referring to both Brazil and Citicorp. Brazil recently stopped paying interest on its commercial bank debt. Today, CitiCorp said its first quarter income would be reduced by 50 mln dlrs after tax if it lists the loans as non-performing status. Citicorp filed an 8-K form with the Securities and Exchange Commission, indicating a material change in its financial situation. "Citicorp is saying you can't scare us with threats, we'll make your loans non-performing right now," Berger said. The loans have to be treated as non-performing after 90 days without a payment. CitiCorp said only that the situation will be reviewed at the end of the current quarter. Berger asserted that Brazil is doing its own politicking by talking to U.S. regulators and trying to drive a wedge between U.S. and European banks. Analyst Lawrence Cohn of Merrill Lynch and Co said it is unlikely the situation will be resolved until the second half of this year. "Ultimately the Brazilians are going to have to pay up on all the interest they owe," Cohn said. "The real issue is the rescheduling of debt terms. Another question is whether or not the International Monetary Fund can help Brazil with a new austerity program. Stocks of money center banks were mostly down fractions in late dealings. One trader most stocks in the group bounced off their lows by midday as investors took the news in stride. Cohn said the bank stocks may be risky until numbers on non-performing loans are reported for each bank. But he said investors looking ahead six to 12 months might want to buy at present levels for the "tremendous fundamental values" in the group. Analyst Robert Gordon of Shearson Lehman Brothers Inc said Manufacturers Hanover Corp and Bankers Trust Co which happen to have the least exposure. Gordon said his positive opinion on J.P. Morgan and Bankers Trust was not merely a response to the fact that the two have lower exposure to Brazilian loans than other banks. In fact he said there's a chance those banks could get more involved in the future. He noted that Morgan has already set up a brokerage subsidiary to deal in loans to less developed countries. "I don't see any reason to change full year earnings estimates, said Frederick Meinke, analyst at E.F. Hutton Co. He thinks the confrontation with Brazil could end in a replay of a situation that occurred with Argentina in 1984 and 1985. Meinke noted that in the case of Argentina the loans became non-accruing for a couple of quarters but then when the banks came to an agreement with Argentina all the back interest was paid. "What it did was distort the quarterly earnings pattern," he said. He said in the case of Brazil write-offs of loans is a worst-case outcome which is highly unlikely. He noted that Brazil is a country with a diversified economy, going through some economic upheaval after the transition from a military to a civilian government. "The countries of Latin America have too much debt relative to their ability to service it," said John Mason of Interstate Securities. "We've been fiddling around with these problems for five years and the hour is growing late." He said up to now the banks have reduced their spreads, cut interest rates internally and extended maturities and none of these measures has been enough. He expects re-classification of as much as a third of the loans as non-accruing and he sees partial write downs of some loans. Nevertheless Mason thinks the money center bank stocks could be poised for a short term rally. A spokesman at First Chicago Corp said it is premature to put Brazil's loans on a cash basis. "It is our expectation that economic development will allow Brazil to meet its debt," a spokesman said. Bankers Trust in New York said it would be premature to make a decision. Several other banks queried by Reuters said much the same thing. A spokesman at Manufacturers Hanover noted that of 2.3 billion dlrs in loan exposure to Brazil only 1.3 billion is subject to Brazil's unilateral moratorium on repayment of interest.

Qtrly 15 cts vs 15 cts prior Pay May Eight Record April 24

Shr 18 cts vs 16 cts Net 348,298 vs 308,927 Sales 4,166,750 vs 3,740,970 Year Shr 72 cts vs 52 cts Net 1,409,867 vs 1,020,096 Sales 16.5 mln vs 15.0 mln Avg shrs 1,974,529 vs 1,956,214

The American Meat Institute, AME, said it intended to ask the U.S. government to retaliate against a European Community meat inspection requirement. AME President C. Manly Molpus also said the industry would file a petition challenging Korea's ban of U.S. meat products. Molpus told a Senate Agriculture subcommittee that AME and other livestock and farm groups intended to file a petition under Section 301 of the General Agreement on Tariffs and Trade against an EC directive that, effective April 30, will require U.S. meat processing plants to comply fully with EC standards.

Qtly div 1.4375 dlrs vs 1.4375 dlrs Pay May 1 Record April 3 Note: Dividend paid to all shareholders other than Norfolk Southern Corp's Norfolk and Western Railway Co.

General Electric Co said it will redeem on May 1 RCA Corp's 75 mln dlrs of 11-1/2 pct notes due 1990. General Electric is the successor obligator to RCA. GE said it will buy back the notes at par plus accrued interest to, but not including, May 1. No further interest will accrue on the notes after the redemption date. Bankers Trust Co is trustee.

Investor Martin Sosnoff said in a statement that he was disappointed in Caesars World Inc's response to his 28 dlrs a share offer to buy the company. The company had said the offer was inadequate and that it was exploring restructuring or sale of the company to another party. Sosnoff said he believes the offer is fair to all shareholders. "My primary desire is still to sit down with management to negotiate a friendly acquisition," he said.

Saudi Arabia has lifted the condition it imposed on the sale of oil to Brazil and will accept Banco do Brasil's credit guarantees, state-oil company Petrobras said in a statement. Petrobras cancelled a 40 mln dlr crude oil purchase from the Saudis yesterday, after they refused to accept a letter of credit from the Bank of Brazil, demanding guarantees from leading international banks. It advised the Saudis the company would negotiate oil purchases elsewhere unless they changed their mind by Monday. The 2.2 mln barrels shipment will be made by the Saudis on March 24 as scheduled, the statement said. Under a 125,000 bpd contract signed in February the Saudis agreed to supply oil to Brazil until June.

A decision by Colombia to open coffee export registrations for an unlimited amount does not imply the country will heavily sell coffee until recently withheld, Gilberto Arango, president of the private exporters' association, told Reuters. Colombia today opened export registrations for april and may, with the National Coffee Growers' Federation setting no limit. Since the start of the coffee year last october, private exporters were on average allowed 350,000 bags of 60 kilos per month. "Traders will initially interpret this measure as announcing heavy sales. Even today it pressured the market. But it will quickly become apparent that Colombia does not intend to go over the top," Arango said in an interview. "Colombia's marketing policy is to sell without haste but consistently. No targets for volume will be set. We will react to market factors adequately. Colombia has no intention to give its coffee away," he added. Arango described measures adopted here yesterday, including a lower export registration price, as a major change in Colombia's coffee marketing policy. The export registration price, or reintegro, was lowered to 1.10 dlr per lb ex-dock new york, or 155.83 dlrs per bag of 70 kilos, from 1.35 dlrs (194.33 dlrs). The government announced a more flexible policy of reintegro, in order to closely reflect market trends, which arango warmly welcomed saying private exporters will undoubtedly be more actively present in the market. A frequent gap between international market prices and the reintegro was unlikely to recur, he said.

Indonesia, the world's second largest producer of palm oil, has not issued licences to import the commodity, a spokesman for the Ministry of Trade said. Traders in London said Indonesia has issued licences to local operators to import around 135,000 tonnes of palm oil starting in April, but the spokesman said this was incorrect. A spokesman for the Indonesian Importers Association also denied knowledge of the import plan. He said importers would quickly know if licences were issued. The Trade Ministry official said there was no sign of a palm oil shortage in Indonesia.

Iran has deployed about six large missiles near the Strait of Hormuz which increase the threat to shipping in the Gulf, the New York Times said. The paper quoted U.S. Intelligence sources as saying the missiles appeared to be of a Chinese design known as HY-2 which is based on the Soviet SSN2 or Styx missile. Styx missiles have a range of up to 50 miles. It said the missiles had been deployed at two sites and quoted a naval analyst as saying they could be used to sink a supertanker and block the Strait of Hormuz. Missiles now used by Iran had only a fraction of the explosive power of the Styx and could sink a supertanker only with a lucky hit, the paper said. None of the new missiles had been fired yet, it added. The CBS television network reported on Friday that Iran had installed new missiles along the Gulf and said Washington had warned Tehran not to use them against civilian shipping.

Brazilian bank workers voted to launch a nationwide strike this month, compounding labour unrest arising from the failure of the government's anti-inflation plan. At a rally in this city, about 100 km northwest of Sao Paulo, about 5,000 bank workers voted to strike on March 24 unless their demand for 100 pct pay rises is met. Wilson Gomes de Moura, president of the national confederation which groups the bank employees' 152 unions representing 700,000 workers, told Reuters the indefinite stoppage would affect all banks. The vote came as a stoppage by seamen entered its third week and as 55,000 oil workers threatened action against the state-owned petroleum company Petrobras. The government ordered thousands of troops into the refineries on Tuesday to forestall any occupation, but the troops were removed yesterday. Petrobras said it had requested their withdrawal because the refineries were calm and oil workers had indicated their willingess to negotiate next Wednesday. The government has also sent marines into the main ports. A spokesman at strike headquarters for the seamen in Rio de Janeiro said unions were studying an offer by private shipowners for a 120 pct pay rise. Seamen employed by two small companies have already accepted a 120 pct pay rise and returned to work, as have about 5,000 seamen employed by Petrobras. Last week also saw widespread protests by hundreds of thousands of farmers over what they see as unfairly high interest rates charged by banks. According to official estimates, prices rose by more than 33 pct in the first two months of this year.

U.S. Commerce Secretary Malcolm Baldrige predicted Congress will pass a reasonable trade bill this year and said tough protectionist legislation could prompt a trade war. "The mood of the Congress right now is as tough on trade as I've ever seen it in six years in Washington," Baldrige said in a television interview. "I think we'll still be able to get a reasonable trade bill out in spite of that because the whole Congress is trying to work together with the administration, but there is a hardening trade attitude," he said. President Reagan opposes protectionist legislation, but agreed to support a trade bill when it became apparent that opposition Democrats would pass such legislation. However, Baldrige warned measures that would penalise trading partners such as Japan, South Korea and Taiwan for failing to cut their trade surpluses with the U.S. Could lead to retaliation and he said he would urge Reagan to veto any such bill. When asked if there is a rising danger of a worldwide trade war, Baldrige said: "Yes, I don't think there's any question about that."

The Reserve Bank said it has cancelled the regular weekly treasury bill tender scheduled for March 17. It said in a statement that forecasts show a net cash withdrawal from the system. Cash flows, which include half-yearly provisional and terminal tax payments, are expected to more than offset cash injections. Cash balances should fluctuate around 30 mln N.Z. Dlrs over the week after open market operations, it added.

Harper and Row Publishers Inc said its board of directors decided to take no action on two takeover bids that the company has received. Instead, it appointed a committee of independent directors to study strategic alternatives for the 170-year-old firm. The alternatives include continuation of the company's existing business plans, possible business combinations, sales of stock, restructuring and the sale of all or part of the company. Kidder Peabody and Co Inc has been retained to advise on the alternatives, Harper and Row added. Private investor Theodore Cross last week offered 34 dlrs a share for Harper and Row, prompting a rival bid of 50 dlrs a share from another publishing firm, Harcourt Brace Jovanovich Inc . After considering the two offers at a meeting on Friday, the Harper and Row board decided not to act on them. The directors unanimously expressed their strong desire to preserve the company's independence and take advantage of its "considerable future prospects," according to director Winthrop Knowlton, former chief executive and now chairman of the newly established independent committee. "However, given the significant current interest in the company, we also feel that we should carefully review all the options available. The committee will consider all the pertinent facts and alternatives.... We intend to make a careful and informed decision but will proceed expeditiously to a conclusion," Knowlton said. Pending its deliberations, Harper and Row's board has postponed indefinitely a special meeting of stockholders that had been scheduled for April 2 to discuss a proposal to recapitalize the company's stock to create two classes of shares with different voting rights.

Banque Paribas, which arranged a 220 mln dlr loan for Ecuador last year to pre-finance oil exports, wants to adjust the terms of the facility to help the country recover from a devastating earthquake, bankers said. But the French bank's plan, which would effectively postpone repayment of about 30 mln dlrs of the loan for several months, is running into stiff resistance from many of the 52 members of the loan syndicate. The pipeline that carries all Ecuador's oil exports was ruptured in the March 5 tremor and will take about five months to repair at a cost of some 150 mln dlrs. President Leon Febres Cordero on Friday estimated total damage caused by the quake at one billion dlrs and said that as a result Ecuador would maintain January's suspension of interest payments on its foreign commercial bank debt. Payments were halted in January because of the drop in the price of oil, which accounts for nearly two-thirds of Ecuador's export earnings and 60 pct of government revenue. Many banks in the Paribas facility, although sympathetic to Ecuador's plight, feel that emergency financial relief is a job for international financial organisations and not for commercial banks, bankers said. The 18-month oil-financing facility, which was signed last October 28, is one of the few purely voluntary credits for a Latin American nation since the region's debt crisis erupted in August 1982. Because it was a voluntary deal, many bankers feel strongly that the orginal terms must be adhered to. Otherwise, they fear, the gradual re-establishment of normal market conditions for Latin borrowers will be set back. "There's a lot of reluctance by the other banks. They feel it's a different facility, and so any kind of suggestion of a restructuring would look bad," one banker said.

Tanzania seeks to export a surplus of 200,000 tonnes of maize from last year's bumper harvest, agriculture minister Paul Bomani said yesterday. The 1986 maize crop was officially estimated at 2.1 mln tonnes, but only a fraction of this was marketed, with most grain consumed by the farmers who grew it. The state-owned National Milling Corp (NMC) meanwhile said it is trying to sell 190,742 tonnes of maize stored in different parts of the country. NMC acting general manager John Rubibira said Tanzania has only 56,000 tonnes of silo storage capacity, concentrated in Dar es Salaam, Arusha in the north and Iringa in central Tanzania. In addition, the country has 450,000 tonnes of flat storage capacity, he added. Rubibira said the government is planning to build new silos in the main maize producing areas of Iringa, Mbeya, Ruvuma and Rukwa.

Major tanker operator, Japan Line Ltd , is selling 20 VLCCs and several bulk carriers for scrap or further trading, industry sources said. The tanker disposals include Japan Orchid (231,722 dwt), Japan Lupinus (233,641 dwt), Sovereign (233,313 dwt), Rosebay (274,531 dwt), Saffron (268,038 dwt) and Cattleya (267,807 dwt), all of which have been reported on the London sale and purchase market, they said, but refused to give further details. Japan Line officials declined to comment.

Malaysian Primary Industries Minister Lim Keng Yaik welcomed the basic accord reached over the weekend in Geneva between producers and consumers on a new International Natural Rubber Agreement (INRA). "This is a good development and if a new pact is adopted this week it will augur well for the rubber industry and prices in the long term," he told Reuters here. Negotiators at a United Nations conference on a new INRA resolved differences and agreed last Saturday on basic elements for a new pact to replace the current one, which expires in October. Conference Chairman Manaspas Xuto said legal drafting of the new pact will begin this week and it is expected to be formally adopted by some 40 countries on March 20. Malaysia, the world's top producer, acted as spokesman for producers at the talks, which began on March 9. Malaysian traders said they expected prices to firm by a few cents on the news that a pact is expected to be adopted. Prices will also firm in the short term because some 370,000 tonnes of rubber held in INRA buffer stock will not be liquidated with a new pact in sight, they said.

Philippine government revenue is expected to rise 26 pct to 99.9 billion pesos this year from 79.1 billion in 1986, Finance Secretary Jaime Ongpin said. In a report to President Corazon Aquino on his department's performance during the year ended February 28, Ongpin said at least 15.9 billion pesos were expected to accrue from new tax reform measures announced last year. He said the goal for official development assistance (ODA) this year is two billion dlrs, adding that aid donors have committed ODA inflows of 1.7 billion dlrs in 1987, up 30 pct from 1.3 billion in 1986. Ongpin said steps planned to provide a sound revenue base included a value added tax (VAT) system due to be introduced in 1988. He gave no other details. He said treasury bill maturities, interest rate levels and the volume of government securities sold to the private sector have improved significantly. "In particular, short-term prime interest rates which had gone over 40 pct in 1985, are now down to less than 10 pct," he said. Ongpin said the government's debt-equity scheme, introduced in August last year, had attracted more than 276 mln dlrs worth of applications, but selective evaluation had resulted in approvals of only 61.8 mln dlrs at end-February. He said his department aims to accelerate its privatisation program and the sale of non-performing assets owned by associates of former President Ferdinand Marcos to achieve a 1987 sales target of four billion pesos which would help finance land reform. Aquino said earlier this month that all the 24 billion pesos the government hopes to raise from the sale of the failed companies will be used to finance the land reform plan. Ongpin also said the government would pursue efforts to obtain 500 mln dlrs in concessional funding for the program from a World Bank-led consultative group of multilateral and bilateral aid donors. The government has said the land reform plan aims to distribute 9.7 mln hectares of land to poor peasants.

Norway's trade deficit widened in February to 957 mln crowns from 80 mln crowns in January and 492 mln crowns in February last year, the Central Bureau of Statistics said. Exports dropped to 10.66 billion crowns last month, compared with 11.11 billion in January and 10.85 billion in February 1986, it added. Crude oil and natural gas exports totalled 4.56 billion crowns in February, against 5.10 billion in January and 5.36 billion a year ago.

Banque Paribas, which arranged a 220 mln dlr loan for Ecuador last year to pre-finance oil exports, wants to adjust the terms of the facility to help the country recover from a devastating earthquake, bankers said. But the French bank's plan, which would effectively postpone repayment of about 30 mln dlrs of the loan for several months, is running into stiff resistance from many of the 52 members of the loan syndicate. The pipeline that carries all Ecuador's oil exports was ruptured in the March 5 tremor and will take some five months to repair at a cost of about 150 mln dlrs to repair. President Leon Febres Cordero on Friday estimated total damages caused by the quake at one billion dlrs and said that Ecuador as a result would maintain January's suspension of interest payments on its foreign commercial bank debt. Payments were halted in January because of the drop in the price of oil, which accounts for nearly two-thirds of Ecuador's export earnings and 60 pct of government revenue. Although sympathetic to Ecuador's plight, many banks in the Paribas facility feel that emergency financial relief is a job for international financial organizations and not for commercial banks, bankers said. The 18-month oil-financing facility, which was signed last October 28, is one of the few purely voluntary credits for a Latin American nation since the region's debt crisis erupted in August 1982. Because it was a voluntary deal, many bankers feel strongly that the orginal terms must be adhered to. Otherwise, they fear, the gradual re-establishment of normal market conditions for Latin borrowers will be set back. "There's a lot of reluctance by the other banks. They feel it's a different facility, and so any kind of suggestion of a restructuring would look bad," one banker commented.

Saudi Arabia has dropped its condition that Brazil secure international bank guarantees before Saudia Arabia would ship it oil, state-oil company Petrobras said in a statement. Petrobras said the Saudis will accept Banco do Brasil credit guarantees. Petrobras cancelled a 40 mln dlr crude oil purchase from the Saudis yesterday after they refused to accept a letter of credit from the official Bank of Brazil. The Saudis had demanded that Brazil get credit guarantees from leading international banks. Petrobras said the Saudis had been advised that if they did not change their mind by Monday, Petrobras would negotiate the purchase of oil with other producers. The Petrobras statement said the shipment of 2.2 mln barrels will be made by the Saudis on March 24 as scheduled. The shipment was part of a contract signed in February for the Saudis to supply Brazil with 125,000 barrels per day until June.

Britain and West Germany told their European Community partners they would strongly oppose major elements of proposals to rid the EC of its farm surpluses. At a meeting of EC foreign ministers, Britain called for a full debate on a proposed tax on edible oils and fats that has already angered EC consumer groups and unleashed Washington-led protests from exporters to the EC, diplomats said. West Germany, also opposed to the oils and fats tax, will advise the meeting formally later today it cannot countenance other proposals that could hit German farmers, they added. They said West Germany's objections were put in a letter this weekend from Chancellor Helmut Kohl to Jacques Delors, the president of the EC's Executive Commission which had put forward the proposals last month in a bid to avoid a new EC cash crisis. Kohl reiterated German objections to proposed cereals production curbs but reserved his harshest criticism for a proposed dismantling of Monetary Compensatory Amounts (MCAs) - a system of cross-border subsidies and taxes which level out foreign exchange fluctuations for farm exports. Kohl made clear the dismantling would mainly hit German farmers who, without MCAs, would find it much more difficult to export to weaker currency states, which means virtually all other 11 EC states, diplomats said. Britain initiated the discussion on the proposal to impose a hefty tax on domestic and imported oils and fats because it could seriously damage EC trade relations. The diplomats said the United States had been the most outspoken among foreign critics of the proposal, describing it as a breach of the EC's obligations under the world trade body GATT. But protests had also come from other exporters to the EC, such as Senegal, Malaysia, Indonesia, Brazil, Argentina, Iceland and Norway, they added. Britain has often lined up against West Germany on the farm reform issue in the past but is keen to avoid measures that could spark a damaging trade war with the U.S. Foreign ministers were unlikely to take a decision on either the oils and fats tax or the MCA proposals today, diplomats said. But their discussion should make clear that neither has a chance of surviving when it comes up for substantive consideration by EC farm ministers later this month, they added.

Indonesia will build a crude palm oil terminal at a new port on Batam island, south of Singapore, Research and Technology Minister Yusuf Habibie said. The terminal will be able to handle 2.1 mln tonnes of crude palm oil from new plantations in northern Sumatra and western Kalimantan (Borneo), he said. A tender for engineering work on the Asia Port project will be offered mid-year. Habibie did not say when the terminal was expected to be operational.

Export Development Corp is issuing a 15 billion yen eurobond due August 28, 1992 paying 4-1/2 pct and priced at 101-7/8 pct, lead manager Bank of Tokyo International said. The bond is available in denominations of one mln yen and will be listed in Luxembourg. Fees comprise 1-1/4 pct selling concession and 5/8 pct management and underwriting combined.

A year after squeezing to power with a narrow bare coalition majority, Gaullist Prime minister Jacques Chirac has swept away a cobweb of controls and regulations choking the French economy. But France is still waiting for a promised industrial recovery the government says will follow from its free market policies. Company profits and the stock market are rising. But so is unemployment. Growth is stagnant at about two pct a year and the outlook for inflation, held to a 20-year low of 2.1 pct in 1986, is uncertain. Forced last month to cut the government's 1987 growth target and raise its inflation estimate, Finance Minister Edouard Balladur ruled out action to stimulate the economy. But some government supporters say they fear time for an economic miracle may be running out. The political clock is ticking towards Presidential elections due by April next year. France's economic performance, led by a mixed cast of right-wing ministers and a socialist President, has won mixed reviews from non-partisan analysts. For Michel Develle, Director of Economic Studies at newly-privatised Banque Paribas, the government's outstanding achievement has been to launch "a veritable intellectual revolution" breaking the staid habits formed by centuries of state control. "The figures may look mediocre -- neither good nor bad -- but set in their context of structural reforms, they are excellent," Develle said. But some analysts say they fear that Balladur, chief architect of the government's free market policies, may be pursuing a mirage. "The belief that economic liberalism will produce an explosion of economic forces is ideological" said Indosuez chief economist Jean Cheval. "Personally I think it's an illusion. Dirigisme (direction) is a basic fact of the French system, from school onwards. Ultra-liberalism is impossible." Illusion or not, the government has pushed its vision hard. Over the past year foreign exchange and consumer price controls have been largely abolished, labour regulations have been pruned to ease the sacking of redundant workers and a hugely popular programme has been launched to sell state-owned banks and industries to private investors. Since December, nearly five mln French investors have bought shares in Cie Financiere de Paribas and glass maker Cie de Saint-Gobain SA , the first two state companies brought to the stock market under the 300 billion franc five-year privatisation plan. Encouraged by an amnesty for past illegal exports of capital, and the lifting of most currency controls, money has flooded into the Paris stockmarket from abroad, helping to lift the market 57 pct last year and another 12.5 pct since December. At the end of last year the government abolished price controls that had existed for 42 years on services such as car repairs and hairdressing, freeing from state intervention small businesses which account for some 60 pct of the French economy. The immediate result was a 0.9 pct rise in consumer prices in January, partly responsible for a forced revision in the official 1987 inflation forecast, to 2.5 pct from two pct or less. "But even 2.5 pct would be a fantastic result, when you consider that prices are now free for the first time since 1945," commented Develle of Paribas. Other achievements include a major reduction in the state's foreign debts, and a cut in the state budget deficit to 141.1 billion francs last year, 2.5 billion francs below target and down from 153.3 billion in 1985. But despite a healthy balance of payments surplus and a gradual improvement in industrial productivity, the French franc was forced by speculators in January into a humiliating three pct devaluation against the West German mark, its second since Chirac took power. A recent report by the Organisation for Economic Cooperation and Development pilloried French industry for failing to produce the goods that its potential customers wanted. Outside the mainly state-controlled high technology sectors, French industrial goods were "increasingly ill-adapted to demand" and over-priced, the report said. French economists, including Cheval at Indosuez, agreed with the report. "One of the assumptions of the government is that if you give them freedom, the employers will invest and modernise....But nine out of ten will say yes, they like freedom, and then wait to be told which way to go," he said. And despite rising industrial investment and the introduction of special incentives to boost youth employment, the end-1986 number of jobless was reported at a record 2.7 million, some 300,000 more than a year earlier. The problem for the government is that there may be little more it can do to prod the economy into faster growth. French producers failed more than most to take advantage of last year's oil price falls and growth hopes now rest on the shaky prospects of expansion in other industrial countries like West Germany and Japan, they say. REUTER...

Brazilian bank workers voted to launch a nationwide strike this month, compounding labour unrest arising from the failure of the government's anti-inflation plan. At a rally in this city, about 100 km northwest of Sao Paulo, about 5,000 bank workers voted to strike on March 24 unless their demand for 100 pct pay rises is met. Wilson Gomes de Moura, president of the national confederation which groups the bank employees' 152 unions representing 700,000 workers, told Reuters the indefinite stoppage would affect all banks. The vote came as a stoppage by seamen entered its third week and as 55,000 oil workers threatened action against the state-owned petroleum company Petrobras.

A 75 mln stg revolving credit contained in a 100 mln stg multiple facility for Argyll Group Plc has been oversubscribed in syndication and the borrower is considering an increase, banking sources said. The facility will allow Argyll to issue sterling acceptances and multi-currency advances and domestic sterling advances. There will be a facility fee of 7.5 basis points on the available part of the facility and a fee of five basis points on the reserved part. There is a front end fee of 1/32 and a utilisation fee of five basis points if more than 50 pct of the revolving credit is drawn. There will be a tender panel for the acceptances and advances. However, Argyll will have the option to raise funds through an issuer set placement, under which the underwriters can take up to their available commitment under the standby. The available tranche will be determined by Argyll on an annual basis. Drawings under the five year facility will be subject to a cap rate of 1/8 pct over the London Interbank Offered Rate or acceptance commission. Samuel Montagu and Co Ltd is lead manager and agent.

Marion Laboratories Inc said its board declared a two-for-one common stock split in the form of a dividend, with distribution April 21, record March 25. The board also said it intends to increase the regular quarterly dividend by 43 pct, to five cts a share, reflecting the split. It said the increase will be declared at the May 1987 board meeting and reflected in regular payments beginning in July 1987.

U.S. lawmakers are gearing up for a showdown between protectionists and free traders as a major trade bill winds its way through committees to a vote by the full House of Representatives in late April. In a move to toughen U.S. enforcement of trade laws, a key House subcommittee last week approved a toned down version of legislation to require President Reagan to retaliate against foreign countries that follow unfair trade practices. This bill will be the cornerstone of congressional efforts to restore competitiveness of American industries and turn around last year's record 169 billion dlrs trade deficit. Several lawmakers have argued the new trade bill made too many concessions to Reagan and said they intend to back amendments to "get tough" with countries that violate trade agreements or keep out U.S. products. On the other hand, congressmen known for their allegiance to free trade, said the bill ties Reagan's hands too much in trade disputes and they will seek to restore his negotiating powers. Republican Bill Frenzel of Michigan said the subcommittee's bill was not one "that a free trader like me could endorse in all respects," but he emphasized there was a consensus among trade lawmakers to work toward a bill Reagan and Republicans would ultimately endorse. Frenzel said the goal of trade legislation was, "to make our trade policy stronger without violating our international trade agreements. You'll find a lot of people who think we have not done the former enough. You'll find poeple who think we haven't avoided violating agreements." In a key concession made at the urging of the powerful chairman of the House Ways and Means Committee, the trade subcommittee backed off a requirement that would have forced Reagan to automatically impose quotas or tariffs on imports from countries that engage in unfair trade practices. It also agreed he may waive any retaliation if it would hurt the U.S. economy. Ways and Means chairman Dan Rostenkowski, an Illinois Democrat, insisted the more moderate approach was necessary if the House wanted to pass a bill Reagan would sign into law. Reagan last year had blocked Senate consideration of a tough House trade bill he branded as protectionist and this year only reluctantly agreed to support a trade bill when he saw Democratic leaders were determined to pass a bill. As an indication of his success, White House spokesman Marlin Fitzwater told reporters Friday the administration still did not like some provisions. But he added, "Generally we feel very good about the bipartisan consideration of the trade legislation. I think we are progressing very well." The first battle will take place next week when the full House Ways and Means Committee considers an amendment by Rep. Richard Gephardt, a Missouri Democrat, to force countries such as Japan, South Korea and Taiwan to cut their trade surpluses with the United States. The subcommittee limited the Gephardt plan to provide only that the existence of a large trade surplus with the United States will trigger an investigation of unfair trade practices, but would not automatically set off retaliation. Rep. Phil Crane, an Illinois Republican and staunch free trader, said he will try to further weaken the Gephardt plan. Organized labor has pressed lawmakers for more relief from imports where jobs have been lost to foreign competition. AFL-CIO president Lane Kirkland this year angered the administration in a statement that any trade bill Reagan would sign would not be worth passage in Congress. But Rostenkowski set the tone of the trade debate in a statement, "I'm not trying to write legislation to please Lane Kirkland. I'm trying to write legislation that will be signed by the president." In writing the bill, the subcommittee rejected calls for trade relief for specific industries such as textiles. Rep. Ed Jenkins, a Democrat from Georgia, agreed to hold off his fight. He intends to push separately a bill to protect the domestic textile and shoe industry, an aide said. Reagan vetoed a similar measure last year. House Speaker Jim Wright, a Texas Democrat, is one of the most influential proponents of aid for specific industries beset by low priced foreign competition. Wright Thursday renewed his call for import relief for the domestic oil industry and announced his support for a Senate plan to trigger a temporary oil import tariff when imports reach half of domestic consumption. For the most part, the trade bill's provisions toughen U.S. enforcement of trade laws. The bill forces the administration to act rapidly on complaints of unfair trade practices such as dumping products in the United States at prices below the cost of production. It also forces the administration to act rapidly when an industry complains that a surge in imports threatens its existence. Congressmen said the change would have required the U.S. International Trade Commission to impose limits on car imports in 1981.

Oper shr 42 cts vs 11 cts Oper net 1,433,000 vs 382,000 Revs 38.6 mln vs 20.1 mln Year Oper shr 60 cts vs 49 cts Oper net 2,033,000 vs 1,682,000 Revs 90.4 mln vs 73.0 mln NOTE: 1985 4th qtr and year excludes extraordinary credit of 349,000 dlrs or 11 cts per share.

Comtech Inc said it agreed in principle to sell 95 pct of its outstanding shares in Premier Microwave Corp for seven mln dlrs. It said the buyers include an investment group composed of the unit's management. The company said it expects the sale to close in the next few weeks. Proceeds will be used to reduce debt.

A group of affiliated New York-base investment firms and funds told the Securities and Exchange Commission they have acquired 453,300 shares of Purolator Courier Corp, or 5.9 pct of the total outstanding. The group, led by Mutual Shares Corp, said it bought the stock for investment purposes. It also said it is studying the 35 dlr a share leveraged buyout offer made by Purolator managers and E.F. Hutton LBO Inc but has not decided whether it will tender its stock in the offer. The group said it has held talks with the Hutton LBO group before and may do so again.

Tofutti Brands Inc said it is changing its fiscal year to a calendar year from a year ending July 31, and it expects to be profitable on higher sales in 1987. The company lost 658,000 dlrs on sales of 11.6 mln dlrs in the year ended July 31. A company spokesman said Tofutti will be reporting earnings for the last five months of calendar 1986 by the end of March and will then report calendar first quarter results.

U.S. Based speciality food retailer , which earlier announced pre-tax profits of 17.1 mln dlrs in 1986 against 6.8 mln in 1985, said it plans further growth this year with the opening of 125 new stores in the U.S. The company, which is quoted on London's Unlisted Securities Market (USM), said it also planned to expand its outlets internationally. However, chairman Randall Fields told a news conference the company would not move into any new countries during 1987 but would intensify its efforts where it already had stores. During 1986 the company opened 81 new stores, including 76 in the U.S., Two in Australia and one each in Japan, Canada and the U.K. "We intend to open a minimum of five more units in London for example and it is reasonable that we might open other stores in other European countries in 1988," Fields said. He said the company acquired competitive businesses as a matter of routine, and might add others in 1987, but declined to say how much the company planned to spend on them. Last year turnover rose by 20.8 pct to 87.1 mln dlrs from 72.6 mln dlrs in 1985.

, in a move unique among Canadian trust companies, is pursuing a bold global expansion that could someday lift the foreign share of its yearly earnings to 50 pct, president Michael Cornelissen said. First Marathon Securities Ltd financial services analyst Michael Walsh said Royal Trust's international growth target is attainable. But it "will be a tremendous achievement because ... they're going to have to build an international earnings base larger than the earnings of a lot of significant domestic trust companies," Walsh said. Global operations, which made up 22 pct of Royal Trust's 154 mln dlr 1986 net profit, will post 33 pct profit growth this year against an expected 15 pct jump in total company profit, Cornelissen told Reuters in an interview. He said the foreign share of total profit would rise to 26 pct in 1987 and to 44 pct by 1990. Royal Trust, Canada's second largest trust company with assets of about 19.54 billion Canadian dlrs, has operated internationally since 1929 when it opened a London bank. Its aggressive global strategy began in the 1980s, when other Canadian trusts, the equivalent of U.S. savings and loans, were focusing on domestic retail banking. The company's overseas ambitions were whetted by heightened domestic competition and impressive growth at its London bank operations, which attained full British banking powers in 1980, Cornelissen said. Last year, Royal Trust moved into continental Europe and Asia with its 239 mln Canadian dlr acquisition of Dow Chemical Co 's Dow Financial Services Corp, which included asset management, merchant and private banking companies. "It was a heaven-sent opportunity," Cornelissen said of the Dow Financial acquisition. "We achieved in one year what would otherwise have taken five to 10 years to set up." Cornelissen stressed that Royal Trust would shun direct competition with major global financial institutions in activities such as international lending and stock brokerage, in order to exploit "profitable niches" overseas in traditional trust activities such as asset management, private banking and advisory services. He said that Royal Trust hoped to complete negotiations "before the end of this month" to sell its London-based Savory Milln brokerage, acquired in the Dow Financial deal. "The international market is so big and we have such a miniscule share of it that growth opportunities are really limited only by our energy and our desire to find more business," he said, adding that in trust-type services, "we don't think the international markets are well-served." Aiding Royal Trust's foreign growth are greater foreign investment interest in North America and increased Canadian investment abroad, Cornelissen said. Central to Royal Trust's strategy is Asia, boasting rapid economic growth and huge pools of Japanese capital, said Cornelissen, whose company administers assets of 71.85 billion dlrs, more than any other Canadian trust. Citing statistics indicating that by the year 2000, Asia will contain two-thirds of the world's population and 50 pct of global productive capacity, Cornelissen said, "We knew we had to be there." Royal Trust's 14 international locations include offices in Tokyo, Hong Kong and Singapore. The company also recently listed its shares on the Tokyo Stock Exchange. The Royal Trust president said the company was stressing growth within its overseas units, adding he did not foresee any acquisitions in the "immediate future," although "we have our eyes wide open for the right opportunities." Asked about Royal Trust's plans for the U.S., which the company abandoned with the 1983 sale of its Florida bank units, Cornelissen said the company faced a trust services market well covered by hundreds of small regional banks. "That doesn't mean to say we shouldn't be in the U.S.," said Cornelissen. "That is probably one area that we will probably do something with in the next five years." He said the company would continue to emphasize its home Canadian market, which Cornelissen and financial services analysts agreed would remain vital to Royal Trust. Proposed government regulations to allow Canadian banks, trusts, insurance and securities dealers full participation in one another's actitivies will mean more domestic competition for Royal Trust, "but not drastically more," Cornelissen said.

Shr 23 cts vs 42 cts Net 1,387,000 vs 2,532,000 Revs 80.5 mln vs 82.6 mln

Members of the Baltic International Freight Futures Exchange (BIFFEX) are to be balloted at the end of this week on whether it will merge with the London Commodity Exchange or come under a new umbrella of Baltic futures exchanges, a BIFFEX official said. The final decision will be left with the BIFFEX board, which will meet at the end of this month, he said. Last week three exchanges currently trading on the Baltic Exchange, the London Potato Futures Association, the GAFTA Soya Bean Meal Futures Association and the London Meat Futures Exchange, instructed legal advisers to implement a merger.

Sources close to the Italian state credit institution (Istituto Mobiliare Italiano - IMI) said a convertible bond issue was one of the possibilities being studied to facilitate market absorption of Fiat shares sold last year by Libya and still in the hands of banks. The sources could give no further details of the options under study. A Fiat spokesman contacted by Reuters said the company had no comment to make on the possibility of a convertible bond issue, saying any decision to be taken "did not depend on Fiat." Italian press reports that a bond issue was under study pushed Fiat's shares higher on the Milan bourse today. The company's ordinary shares closed in Milan today at 12,540 lire in Milan today, up from a closing 12,195 Friday. Fiat preference shares and savings (non-voting) shares gained even more strongly, closing at 7,740 and 7,841 lire respectively against 7,353 and 7,600 Friday. Bourse dealers say the fall in value of Fiat stock over the last six months partly reflects selling by foreign operators of shares acquired as a result of the 2.1 billion dlr equity offer after Libya sold its minority stake last September. On September 23, 1986, the day Fiat announced it had reached an agreement under which Libya would sell its 15 pct stake, Fiat shares closed in Milan at 16,600 lire. Since then, the trend has been down. Last September's share offer, which triggered criticism by underwriters about the handling of the sale, opened at a substantial discount to its offer price, resulting in losses for holders of the shares. Some analysts have said the size of offer was too big for the market to handle efficiently.

Maryland National Corp said it has completed the acquisition of American Security Corp in an exchange of 0.81 Maryland share for each of American's 12 mln shares outstanding. The company said the mandatory 30-day review by the U.S. Justice Department was completed today. Maryland National said American Security shareholders will be entitled to receive the 32-1/2 ct per share Maryland National regular quarterly dividend that is payable March 31 to holders of record today.

Shr loss three cts vs loss 12 cts Net loss 25,836 vs loss 88,819 Revs 50.3 mln vs 45.2 mln Six mths Shr profit nil vs loss 18 cts Net profit 2,843 vs loss 137,653 Revs 109.3 mln vs 99.3 mln

Norway's parliament has approved an extensive trade ban against South Africa but left shipowners a key loophole through which controversial oil shipments on Norwegian tankers may continue, government officials said. The unilateral boycott, proposed by Norway's minority Labour government, gives domestic companies until late September to cut remaining trade ties with South Africa and Namibia. "The legislation discussed today must not be seen as an isolated measure, but as a step in an international process," Norway's foreign minister Thorvald Stoltenberg told parliament. Government officials said they hope the move will intensify international pressure against the Pretoria regime's apartheid policies. Sweden, in a similar move last week, promised to halt all trade with South Africa by October. Norway's boycott, although forbidding crude oil shipments to South Africa on Norwegian-owned tankers, makes an important exception for ships whose final destination is decided while they are at sea. Oil cargoes are often resold by trades after loading, making it difficult for shipowners to know their ships' final port at the start of a voyage. Critics said the bill leaves the door open for continued oil shipments to South Africa. They called for stricter sanctions to stop all Norwegian shipping to South Africa. Norwegian tankers supplied South Africa with about 30 pct of its crude imports during the early 1980s, but the trade has dropped sharply to just one cargo in the last three months, trade ministry officials said. The latest trade figures show Norwegian imports from South Africa dropped 36 pct to 160 mln crowns during the first eight months of 1986, while exports plunged 52 pct to 265 mln crowns from the year-ago figure. "Many would say that the law has already had its effect because of the dramatic drop in trade between South African and Norway," Foreign Ministry spokesman Per Paust told Reuters. "Norwegian business at an early stage started restructuring its relations with South Africa in anticipation of the law. "No one has said the boycott will have a profound effect on international trade with South Africa, but it is an important political statement by the Norwegian government," he said. The Oslo government said it will review the effects of the ban on Norwegian industry after two years and may propose amendments if industry can show it is hurt by the law. Norwegian imports from South Africa are limited mainly to high-grade manganese and coppernickle ores used in it ferro-alloys and light metals industries. Metals manufacturers estimate some 2,000 jobs could be affected by the boycott is suitable replacements for these ores are not found. The legislation now goes on to the upper house for formal ratification later this week, parliamentarians said.

Gotaas-Larsen Shipping Corp said it had exercised an option to build a fifth in a series of crude oil carriers to be constructed by in South Korea.

Pacific Resources Inc said it has installed a CALM (Catenary Anchor Leg Mooring) single-point mooring terminal off the southwest coast of Oahu at its Hawaiian Independent Refinery at a cost of 3.5 mln dlrs. The system transfers crude and fuel oils from tankers to the refinery's tank farm and carries refined products to ships for export, PRI said. Company chairman Robert G. Reed said the new mooring system will permit 24-hour service in most kinds of weather and will reduce ship turnaround time. He said the mooring is the first of its kind in the U.S. The new system can accomodate vessels up to 150,000 deadweight tons, or one mln barrels of cargo, PRI said.

U.S. Agriculture Department proposals to offer 260,000 tonnes of subsidized vegetable oil to four countries are still under consideration by an interagency trade policy group, a USDA official close to the group said. The official, who asked not to be identified, dismissed a report circulating in markets today that the interagency trade policy review group had rejected the proposals. Under the proposals, USDA would offer vegetable oil under the export enhancement program, EEP, to four countries, including 80,000 tonnes to Turkey and 60,000 tonnes to Algeria, Morocco and Tunisia, industry sources said. The proposals "are still under review" by the interagency working group, the USDA official said.

CooperVision Inc told the Securities and Exchange Commission it has acquired 1,420,500 shares of Cooper LaserSonics Inc, or 6.5 pct of the total outstanding common stock. CooperVision said it bought the stake for 2.9 mln dlrs for investment purposes. It said it might buy additional Cooper LaserSonics common shares, but said it does not plan to boost its stake above 10 pct of the total outstanding.

SAFT, a unit of Cie Generale d'Electricite of France, said it bought U.K.-based Alcad Ltd from Penn Central Corp's Marathon Manufacturing Cos Inc. Terms of the deal were not disclosed. Alcad is one of the world's largest producers of pocket-plate nickel-cadmium storeage batteries, used in industrial and railroad applications to start engines and as light sources, SAFT said. SAFT said it expects to add 400 jobs at the U.K. operations.

Ashland Oil Inc said it expects to report a loss from operations in the second quarter. The company also said it expects to report a 10 mln dlrs net gain in the quarter from excess pension funds used to pay down debt. "However, it is difficult to determine now whether this gain will be sufficient to offset the expected operating loss," the company said in a statement. A company spokesman would not elaborate. The company's Ashland Petroleum Co unit operated at a loss in January and February since it was unable to raise product prices enough to recover higher crude oil costs, Ashland said. Although Ashland Petroleum and SuperAmerica, a retail marketing operation, are having a difficult quarter, the company's Valvoline, Ashland Chemical and coal businesses are expected to report good results for the quarter ended March 31. In the year-ago quarter, Ashland had income from operations of 93.8 mln dlrs before corporate and interest expenses, taxes, equity income and other items. Net income in the quarter was 39.4 mln dlrs or 1.12 dlrs a share on sales of 1.78 billion dlrs.

Harbour workers returned to work this morning after a strike in support of pay claims closed New Zealand's 15 ports for 24 hours yesterday. But the Harbour Workers Union told reporters the pay dispute is not settled and the union's national executive will meet here tomorrow to decide its next moves. "Obviously we will be considering further industrial action," Union secretary Ross Wilson said in a radio interview. The union rejects employers offers of a 7.5 pct pay rise over 15 months. It wants 7.0 pct over 12 months.

TransAmerica Natural Gas Corp said it is seeking two billion dlrs in punitive and actual damages in a lawsuit it filed today against Coastal Corp, its chairman and certain Coastal affiliates. TransAmerica, a privately held company that has been in bankruptcy since 1983, said its suit alleges that Coastal and its chairman, Oscar S. Wyatt Jr, unlawfully interfered with agreements it previously reached with its creditors, causing the company significant damage. TransAmerica also said its suit, filed in state district court in Harris County, Texas, seeks injunctions against Wyatt and Coastal to enjoin them from interfering with its contractual agreements with its creditors. The company alleged that beginning in mid-1986, Coastal and its chairman took various steps to acquire its gas and other assets. Coastal has used TransAmerica's bankruptcy proceedings to engineer a hostile takeover attempt, the company charged. In its suit TransAmerican alleged that Coastal and Wyatt are "notorious corporate raiders who have been restrained in the past from taking over other corporations in their attempt to create a stranglehold position from which they could control and raise gas prices..." "It is obvious that Coastal's efforts to improperly take over TransAmerican is a thinly veiled attempt to control a larger share of the Texas gas market to the detriment of end users and consumers," the company alleged. Coastal could not be reached for comment. Company name is Transamerican.

Aero Services International Inc said it signed an agreement with Dibo Attar, who controls about 39 pct of its common stock, under which three nominees to Aero's board have been selected by Attar. In addition to Attar, the nominees are Stephen L. Peistner, chairman and chief executive officer of and James N.C. Moffat III, vice president and secretary of .

The European Community (EC) yesterday warned Japan and the United States, its main trading partners, that friction over trade issues is affecting the EC's relations with both countries. EC foreign ministers issued a statement deploring Japan's continued trade imbalance and appealed for the country to make a greater effort to open up its markets. They also said they were disturbed by a draft bill before the U.S. Congress that would impose permanent quotas on textile imports and were prepared to react. The U.S. Administration has already distanced itself from the bill. EC External Trade Commissioner Willy De Clercq has written to his U.S. Counterpart, Trade Representative Clayton Yeutter, outlining the EC's concerns. The statement said ministers were very disturbed by U.S. Moves towards protectionism. "The adoption of such measures would not fail to have a negative effect on the process of multilateral negotiations just started, as well as on bilateral relations," it said. Any unilateral U.S. Moves would leave the EC no option but to react according to the laws of the General Agreement on Tariffs and Trade, it said. In a separate statement on Japan, the EC ministers said they "deplore the continued aggravation of the imbalance in trade (and) expect Japan to open up its market more." The statement said the EC would continue to insist that Japan boost imports and stimulate domestic demand. Ministers also called on the EC Commission to prepare a report on U.S.-Japanese trade for July this year to enable them to take appropriate action where necessary. One diplomat said the call for a report showed ministers were determined not to let the Japanese question drop. "It will be back on the table again and again," the diplomat said. De Clercq, talking to journalists during the meeting, said, "There is a certain nervousness, a growing impatience within the Community concerning trade relations with Japan." The EC is not satisfied with Japan's inability to cut its trade surplus, and the Commission has adopted a tough approach on imports of goods such as Japanese photocopiers, where it has imposed 20 pct anti-dumping duties. But diplomats said the EC is keen to negotiate with Tokyo to solve the problem rather than embark on a costly and damaging trade war, and the ministers called for more cooperation with Japan in industry and research.

U.S. Agriculture Secretary Richard Lyng warned the European Community yesterday it will face serious retaliation if it enacts a new tax on products such as U.S. Soybean oil. Speaking at a news conference before a scheduled speech, Lyng said he did not think the tax, which is still in the discussion stage, would be approved. He said the U.S. Would take serious retaliatory action because if implemented, the tax would have a considerable impact on U.S. Farmers.

The Bank of Japan will sell 300 billion yen of financing bills tomorrow under a 55-day repurchase accord maturing on May 12, money traders said. The bills are meant to soak up a projected money market surplus due largely to coupon and principle payments of a previously issued Japanese National Railways bond. The yield on the bills for sales to banks and securities houses from money houses will be 3.9497 pct against the 3.9375 pct discount rate for two-month commercial bills and the 4.43/32 pct yield on two-month certificates of deposit today. The sale will raise the bill supply to 1,500 billion yen.

Swiss watchmaker SMH Societe Suisse de Microelectronique et d'Horlogerie is issuing a 100 mln Swiss franc 10-year bond with warrants to buy participation certificates, lead manager Union Bank of Switzerland said. The bond carries a 2-1/4 pct coupon and is priced at par. Subscription is from March 24 to 30. The bond can be called at par on April 15, 1995 or 1996. Each 2,000 franc bond carries three warrants, each of which allows the purchase of one certificate, of a nominal 100 francs, at a price of 600 francs from June 1, 1987 until November 30, 1990. The certificates, created in October last year, closed at 570 francs today.

The Belgian government's new 150 billion franc, eight pct loan has been priced at par, a Finance Ministry spokesman said. The eight-year loan features a call option after four years at 102, falling to 101-1/2 after five years and by half a point each year thereafter. The conditions are the same as those on the most recent public authority loan stock issue, for the state road building fund Fonds des Routes. Some 120 billion francs of the loan will be taken up by members of the issuing consortium, comprising major commercial banks, and the remaining 30 billion by publicly-owned credit institutions.

New foreign shipbuilding orders received by Japanese yards in February rose to six vessels totalling 329,999 gross tons from three ships of 79,499 tons in January, the Japan Ship Exporters Association said. This compared with six ships of 125,150 gross tons a year earlier, an association official said. The backlog of orders at end-February was 157 ships of 4.41 mln gross tons against 161 ships of 4.39 mln a month earlier and 265 vessels of 6.81 mln a year earlier, an association official said.

Net profit 16.66 mln H.K. Dlrs vs 11.28 mln Total divs to shareholders 7.5 mln vs nil Note - Firm underwrote 23 capital market issues in 1986. Next industrial transaction in May is syndication of a 35 mln U.S. Dlr loan to the Shanghai Ta Chun Tyre Project. The company is a joint venture merchant bank between the , and the Industrial Bank of Japan

Norway's parliament has approved an extensive trade ban against South Africa but left shipowners a key loophole through which controversial oil shipments on Norwegian tankers may continue, government officials said. The unilateral boycott gives domestic companies until late September to cut trade ties with South Africa and Namibia. Although forbidding crude oil shipments to South Africa on Norwegian-owned tankers, the boycott makes a crucial exception for ships whose final destination is decided while at sea. As oil cargoes are often resold after loading, critics said the door will be left open for continued shipments to South Africa. Norwegian tankers supplied South Africa with about 30 pct of its crude oil imports during the early 1980s, but the trade has dropped sharply to just one cargo in the last three months, trade ministry officials said. The latest trade figures show Norwegian imports from South Africa dropped 36 pct to 160 mln crowns during the first eight months of 1986, while exports plunged 52 pct to 265 mln crowns from the year-ago figure. The boycott legislation now goes to the upper house for formal ratification later this week, parliamentarians said.

Hanson Trust Plc said it will sell its Finlays confectionery, tobacco and newsagent business to a specially formed company, for an estimated 16.9 mln stg cash. The chain of stores was acquired when Hanson took over last year.

A Cypriot tanker was set ablaze in the Persian Gulf yesterday after an Iranian gunboat fired missiles at it, shipping sources quoting reports from Japanese tankers said today. No casualties were seen and the tanker Pivot, laden with crude oil, was towed towards Dubai by tugs after they put out the fire, the sources said. Iranian gunboats usually check a ship's nationality and cargo before attacking but the Pivot was hit near Bu Musa island without warning, they added.

Employers in Rotterdam's troubled general cargo sector have decided to restart stalled redundancy procedures within a week, employers' organisation labour relations manager Gerard Zeebregts told Reuters. Port and transport union spokesman Bert Duim said the employers' decision would not lead to the immediate resumption of eight weeks of strikes in the sector. The strike action was called off on Friday after an interim court injunction against the employers' plans for 350 redundancies this year. A court in Amsterdam ruled last week the employers had made an error in the complicated procedure for obtaining permission for the redundancies and therefore could not proceed until a final ruling on May 7. Zeebregts said the initiation of new procedure might well take up to two months, but the employers were not prepared simply to sit and wait for the May 7 court ruling with the chance they would have to start all over again in any case. "We cannot afford not to continue with our plans. The strikes have already cost a lot of money and damaged business, and further delays would do even more damage," Zeebregts said. The campaign of lightning strikes in the port's general cargo sector began on January 19 in protest at employers' plans for 800 redundancies from the sector's 4,000 strong workforce by 1990, starting with 350 this year.

U.S. housing starts rose 2.6 pct in February to a seasonally adjusted annual rate of 1,851,000 units, the Commerce Department said. In January, housing starts fell a revised 0.5 pct to 1,804,000 units. The department previously said they fell 0.1 pct. The rate at which permits were issued for future construction rose in February by 4.4 pct to a seasonally adjusted 1,764,000 units after falling 11.52 pct to 1,690,000 units in January. Permits for single-family houses fell in January by 6.6 pct to 1,091,000. The number of permits for multi-family houses fell in February by 11.7 pct to 529,000 units after falling in January by 19.3 pct, the department said. Housing starts in February included a seasonally adjusted 5.6 pct rise in single family units to 1,317,000 units and a 4.1 pct fall in multi-family homes to 534,000 units. The seasonally adjusted permits total in February for single family units was 1,235,000 and for multi-family units was 529,000 units.

OII Holdings Corp, a company formed by Kohlberg Kravis Roberts and Co, said it received and purchased about 58.3 mln shares or 96 pct of Owens-Illinois Inc common stock and 50,275 of 4.75 dlr cumulative convertible preference shares of Owens, or about 83 pct. The company said its tender offer for all common and preference shares expired last night. It said Owens-Illinois will be merged into a subsidiary of OII Holdings on March 24. Common shares not bought in the offer will be converted into the right to receive 60.50 dlrs per share in cash, the tender price. The preference stock has been called.

Baker International Corp said it has signed a definitive agreement to sell the assets and business of the electric submersible oilwell pump product line in the continental U.S. of its Baker Oil Tools Inc subsidiary to Trico Industries Inc for an undisclosed amount of cash and other consideration. The company said the transaction is subject to Hughes Tool Co and Baker shareholder approval of the Baker/Hughes merger. The U.S. Justice Department has announced that it will require divestiture of the product line for approval of the merger. Baker said the transaction is subject to approval by the Justice Department and the boards of Baker, Hughes and Trico.

The European Investment Bank, EIB, is raising 400 mln marks through a 10-year eurobond carrying a coupon of 6-1/8 pct and priced at 100-1/4, market sources said. Deutsche Bank AG will be lead managing the issue, the sources added. No further details were immediately available. Deutsche later confirmed the details and added the issue would be sold in denominations of 1,000 and 10,000 marks. Interest will be paid annually on April 7 and the bond matures on the same day in 1997. Payment date is also April 7. The borrower has the option of redeeming the bonds from 1994 at 100-3/4, then declining by 1/4 point annually until maturity. Fees total 1-3/4 pct, with 1-1/8 pct for selling, 3/8 pct for underwriting and 1/4 pct for management, Deutsche said. The bond will be listed in West Berlin, Duesseldorf, Frankfurt, Hamburg and Munich.

Qtly div 21 cts Payable April 15 Record March 31

Bank of Ireland said it launched in the U.S. Market a commercial paper program for up to 200 mln dlrs, becoming the first Irish issuer of paper in that market. It said the first tranche of an undisclosed amount was sold today through Goldman Sachs and Co Inc and that the paper last week had received the top A-1/P-1 rating of Standard and Poor's Corp and Moody's Investors Service Inc, respectively. In a statement, the Bank of Ireland noted that the U.S. Paper market will provide it with a new source of funding.

Minister of Mines Patrick Chitambala confirmed that Zambia had ended copper shipments through South Africa and announced that its state-run mining company had closed down its liaison office in the white-ruled republic. He told the official Times of Zambia newspaper in an interview the government was diverting all mineral exports along rail routes to Dar es Salaam in Tanzania and Beira in Mozambique. Chitambala declined to say what volume of copper and other minerals were being shipped through these two ports, but he said there had not been any problem with the new arrangements. "So far our copper has been reaching its destinations without hindrance," he told the Times. The Times of Zambia quoted unnamed sources as saying Zambia exported 100,000 tonnes of copper through Dar es Salaam and 17,000 through Beira in the last quarter of 1986. Diplomatic sources in Lusaka had earlier expressed doubts over Zambia's ability to ship all its copper through Beira and Dar es Salaam without causing massive bottlenecks at the ports. Chitambala also said that the state-run Zambia Consolidated Copper Mines (ZCCM) had closed its liaison office in Johannesburg, since it was now redundant.

Development Corp of America said its merger with Lennar Corp was completed and its stock no longer existed. Development Corp of America, whose board approved the acquisition last November for 90 mln dlrs, said the merger was effective today and its stock now represents the right to receive 15 dlrs a share. The American Stock Exchange said it would provide further details later.

Shr 20 ct vs 27 cts Net 1,048,000 vs 1,368,000 Revs 9,457,000 vs 5,386,000 NOTE: Dollar amounts converted from Irish pounds at noon buying rate of the Federal Reserve Bank of New York at Dec 31, 1986, of 1.4105 dlr per one Irish pound. The equivalent rate at Dec 31, 1985, was 1.2470 dlr equals one Irsh pound. Full name of company is The Institute of Clinical Pharmacology PLC, based in Dulbin, Ireland.

Shr 10 cts vs eight cts Net 856,000 vs 574,000 Sales 9,593,000 vs 9,232,000 Avg shrs 8,809,000 vs 6,969,000

The proposed European Community (EC) tax on vegetable oils and fats is no longer a major issue on the agenda and the EC Commission merely used it as a threat, the West German Feed Stuffs Industry Association (MFI) said. Association chairman Ulrich Wagner told a news conference the West German feed industry believes the EC does not seriously contemplate the introduction of such a tax because it would end in another transatlantic trade war. "We have just avoided a trade conflict with the U.S. And the Commission used the tax threat to calm national farm lobbies." American Soybean Association (ASA) president-elect Wayne Bennett said yesterday in The Hague that U.S. Soybean producers were confident the tax would be rejected. Bennett, who is leading one of three soybean delegations on a lobbying tour of EC capitals, will also visit Bonn on Thursday and Friday. There are indications the Bonn government will also reject the proposed tax, Wagner said.

Israel has drawn up a five-year plan for 1987-1991 to raise agricultural production by 500 mln dlrs to 2.7 billion dlrs, an annual rise of 3.4 pct, the Israeli Ministry of Agriculture said. Agricultural exports are to be increased by 180 mln dlrs, or 4.8 pct per year on average. The area planted to cotton is to remain at the 1986 level of 100,000 to 112,500 acres with exports expected to bring in 80 to 90 mln dlrs per year. The 34 pct decline from the 1985 level reflects continued water rationing which will remain in force, the ministry said. Groundnut production is planned to increase by 13,000 tonnes, or 57 pct, by 1991 and exports by 9,000 tonnes, or 82 pct. Maize production is targetted to rise by 48,000 tonnes, or 48 pct, and exports by 34,000 tonnes, or 45 pct.

An investor group led by New York investor George Soros said it acquired a 6.1 pct stake in B.F. Goodrich Co common stock as an investment. The group said it paid about 69 mln dlrs for the 1,389,600 Goodrich shares, which are being held by Quantum Fund N.V., a Netherlands Antilles investment firm advised by Soros. It said all the shares were bought between Dec. 29 and March 9. The group said it reserved the future right to buy additional shares and to formulate other purposes or plans regarding its Goodrich investment.

Qtr ended Jan 31 Shr 92 cts vs 1.28 dlrs Net 5,415,000 vs 7,730,000 Revs 114.2 mln vs 112.9 mln Avg shrs 5,864,000 vs 6,030,000 Year Shr 45 cts vs 1.40 dlrs Net 2,664,000 vs 8,536,000 Revs 322.9 mln vs 312.3 mln Avg shrs 5,885,000 vs 6,105,000 Note: Net includes LIFO gains of 48,000 dlrs vs 118,000 dlrs for qtr and charges of 257,000 dlrs vs 225,000 dlrs for year.

The International Cocoa Organization, ICCO, buffer stock working group began examining a draft proposal for buffer stock rules this afternoon, delegates said. The plan, presented by ICCO Executive Director Kobena Erbynn, represented a compromise between producer, European Community, EC, and other consumer views on how the buffer stock should operate, they said. The proposal involved three key principles. First, the buffer stock manager would be open to offers for cocoa rather than using fixed posted prices as previously, delegates said. Under an offer system, the buffer stock manager would be free to choose cocoas of varying prices, they said. The second provision was that non-ICCO member cocoa could comprise a maximum 10 pct of the buffer stock, while the third laid out a pricing system under which the buffer stock manager would pay differentials for different grades of cocoa, to be set by a formula, the delegates said. After the plan was presented, working group delegates met briefly in smaller groups of producers, EC consumers and all consumers to look at the proposal. Producers gave no reaction to the scheme and will respond to it when the working group meets tomorrow at 1000 GMT, producer delegates said. Consumer members accepted the proposal as a good base to work from, one consumer delegate said. Delegates said the proposal was only a starting point for negotiations on buffer stock rules and subject to change.

Chancellor of the Exchequer Nigel Lawson's Budget speech was described as sound and well balanced by analysts, if slightly lacking in excitement. A cut in bank base lending rates is now widely expected tomorrow, with most forecasts predicting a half-point fall. A follow-up half-point cut is anticipated next week. "Worthy but boring would probably sum it up," Peter Fellner, U.K. Economist at stockbrokers James Capel and Co, said. "It was a very, very prudent fiscal budget." Richard Jeffrey of brokers Hoare Govett said it was a well-balanced budget within the confines of the government's philosophy of keeping expenditure levels flat. Most analysts said the Budget was very sound on the fiscal side, but offered nothing new on monetary policy. As was widely expected, Lawson split his "fiscal adjustment" between trimming the 1987/88 PSBR target to 4.0 billion stg from 7.1 billion and cutting basic rate income tax from 29 to 27 pct. The target for the narrow measure of money supply, M0, was kept unchangd at two to six pct, while the target for the broad Sterling M3 aggregate was dropped. Both Jeffrey and Fellner said the budget clears the way for a half-point fall in U.K. Base rates tomorrow, but the authorities are unlikely to sanction a larger cut immediately. Many analysts and currency dealers have forecast a full one-point cut tomorrow. "The Bank of England will be loathe to take any action which it will have to reverse later," Jeffrey said, though he added a further half-point cut was quite possible in the near future. The main worry from today's speech is the outlook for inflation, given the signs of relaxed monetary policy contained in it, Scrimgeour Vickers economist Richard Holt said. Holt noted the "rather loose" inflation forecast of 4.0 pct at end-1987, and said the lower interest rates likely to result from the tough fiscal stance could cause longer term concern. "A higher PSBR target could be preferable in the long term," he said, although lower mortgage interest rates on the back of falling base rates would have an offsetting impact on inflation. The Budget will inspire a lot of short-term confidence but it was "not a good budget for inflation," he said Jeffrey said he would have liked Lawson to say more about the dangers of excessive liquidity build-up but overall was not too concerned about a revival of inflation. Fellner noted that the exchange rate was to remain the "leading edge" of monetary policy, but said the authorities were likely to be extremely cautious on this front. He said they were unlikely to hesitate in holding interest rates steady or even raising them again if sterling showed any signs of excessive weakness. Most analysts agreed Lawson had bolstered the credibility of the Budget by adopting realistic forecasts. Raising the forecast for the current account deficit from 1.5 to 2.5 billion stg for 1987 would not unsettle the markets, which are already discounting that amount, Jeffrey said. that the 4.0 billion stg PSBR target was given credibility by the favourable outturn for 1986/87, which is now also forecast to be 4.0 billion stg. But analysts said the Budget speech did not give any clear-cut indication about the timing of the general election, which has to be held before June, 1988. Some believe it signals a poll this June, noting that the benefits, such as income tax cuts and the decision not to raise duties on alcohol and tobacco, become available immediately. But others said it kept several options open and it was not possible to deduce too much from it. James Capel's Fellner noted that by being fiscally prudent, Lawson had kept open the possibility of an autumn election in that there would be no "chickens coming home to roost." Richard Jeffrey, who favours the likelihood of a June election, said it was important the Chancellor had not gone for a Budget aimed overtly at buying an election victory. Nevertheless, he said, it was likely to result in a boost to the Conservative Party's pre-election popularity.

Energy Secretary John Herrington said he may recommend to the White House that the domestic oil industry be given tax benefits to help it produce more oil and head off increasing U.S. dependence on foreign oil. He said also at a news conference that he would recommend to the White House that the fill rate of the Strategic Petroleum Reserve be increased from its planned 35,000 barrels per day. The oil reserve fill rate capacity is 100,000 barrels a day. Herrington said he had always advocated a greater fill rate for the petroleum reserve, but the rate had been kept down because of budgetary constraints. Herrington did not disclose what tax incentives he might advocate, but U.S. officials have shown interest in tax benefits for oil and gas exploration and for research and development into new ways to extract oil which is now considered uneconomical to produce. He made the remarks in conjunction with the release of the Energy Department's study on oil's impact on national security. Herrington said that before he disclosed what recommendations for tax benefits for the oil and gas industry he might make, he would raise the matter with the White House Economic Policy Committee to see if the proposals to increase oil production made good tax policy. He said he would like to increase U.S. production by one mln barrels a day. The report said that by the end of the century the United States may be relying on foreign sources for 50 pct of its oil consumption, posing a serious economic and national security threat.

Shares of Reynolds Metals Co rose sharply after Wall Street firm Furman Selz Mager Dietz and Birney issued a report focusing on the strong earnings potential from the company's Australian gold holding, traders familiar with the report said. Traders said the report notes that earnings from Australian gold holdings could be worth about 35 cts to 55 cts a share this year and 1.40 dlrs to two dlrs a share in 1988. Reynolds Metals rose three points to 59-5/8 on volume of 729,500 shares. Reynolds owns stakes in the Mount Gibson gold project and the Boddington gold project, both located in Australia. An analyst familiar with the two mines said "the properties, together, have a potential value of 20 dlrs to 40 dlrs a share for Reynolds." The analyst, who asked not to be identified, said the rise in the stock today was likely the result of "U.S. investors that were not completely cognizant of the size or the importance of the (Reynolds') holdings in Australia." Traders said the Furman Selz report indicates that gold was discovered mixed with bauxite in the Boddington mine. Boddington is principally a bauxite mine. The traders said the report goes on to say that the profits from the Boddington gold with substantially reduce the production costs of the other metals mined at Boddington. Traders said Furman Selz also boosted its earnings estimates, expecting Reynolds Metals to earn 4.10 dlr a share in 1987 and eight dlrs a share in 1988. Last year, Reynolds reported net earnings of 8.18 dlrs a share, which included 3.09 dlrs a share for adoption of new accounting rules, 1.01 dlrs a share for tax loss carryforwards and other extraordinary items.

Allegheny Beverage Corp said it has been approached by a group interested in acquiring its foodservice unit, Service America Corp. The group includes senior management of Service America but no officers of Allegheny Beverage, the company said. The company has agreed to permit the group and its potential lenders to perform a due diligence review of Service America, it said. Allegheny noted it had previously cancelled plans to spin off the foodservice subsidiary. The company said the group's review is preliminary and there is no assurance that an acquisition proposal will be made or, if made, accepted. Service America had fiscal 1986 revenues of about 934 mln dlrs, or about 83 pct of Allegheny Beverage's total revenues of 1.13 billion dlrs for the year ended March 29, 1986, a spokesman for Allegheny Beverage said. He declined to identify the Service America officials in the acquisition group. On Feb 18, 1987, Allegheny said it was cancelling the spin off of Service America, but gave no reason for doing so. It said it would place major emphasis on managing Service America to improve operations and increase earnings at the unit. Service America, which Allegheny acquired in May 1985, operates cafeterias and food and beverage vending machines. Through other subsidiaries, Allegheny provides coin-operated laundry services, building maintenance services and retail office and furniture operations. In fiscal 1986, Allegheny reported earnings from continuing operations of 8.2 mln dlrs or 1.09 dlrs a fully diluted share, excluding income of 59.7 mln dlrs from discontinued operations and an extraordinary loss of 8.1 mln dlrs. In May 1985, Allegheny sold its Pepsi-Cola Bottling Co unit to Pepsico Inc for 160 mln dlrs. Including discontinued operations and the special item, net income was 59.8 mln dlrs or 6.21 dlrs a share fully diluted.

Shr 38 cts vs 47 cts Net 2,253,664 vs 2,806,820 Revs 5,173,318 vs 5,873,904 NOTE: 1987 qtr includes 126,117 dlrs, or two cts per share, from gains on sale of property, vs gain 29,812, or less than one cent per share, for prior qtr.

Qtly div 82 cts vs 82 cts prior Pay April 25 Record April one

Upcoming changes being considered in the U.S. Agriculture Department's transportation and loan programs were outlined by a USDA official today. Addressing the annual meeting of the National Grain and Feed Association, Tom VonGarlem, assistant deputy administrator for USDA's state and county operations, said the following changes are under consideration by USDA. Termination of USDA's Transportation Assistance Program for wheat, barley and sorghum would be proposed this week. Changes in USDA's reserve rotation program are also under consideration, VonGarlem said. While the department has not made any final decision, banning the use of pik and roll grain in reserve rotation is under heavy consideration, he said. Changes in loan rates will definitely be looked at for next year's crop, he said, with the option of making soybean loans partially in cash and in certificates under consideration. VanGarlem said he will definitely not extend the 1987 crop program signup, saying he sees no reason to do so at this time. He also said wheat will not be considered for a cash bonus under the Conservation Reserve Program.

said it acquired for an undisclosed sum. The company said Clancy has developed a fully automated parking citation system, currently in use in Oklahoma City, the University of California at Sacramento, and in a pilot program in San Francisco.

Period ends February 28 Shr 89 cts vs 87 cts Net 119.5 mln vs 114.6 mln Revs 872.3 mln vs 917.4 mln Year Shr 2.87 dlrs vs 3.32 dlrs Net 383.4 mln vs 413.6 mln Revs 4.45 billion vs 4.45 billion NOTE: Full name Public Service Enterprise Group Inc.

Trade sources here confirmed earlier tentative reports that Bangladesh had bought 200,000 tonnes of optional origin feed wheat late last week and over the weekend. They said the Continental Grain Co, of the United States, won the contract to supply the wheat from the EC and other parts of Europe. It will supply 100,000 tonnes at a rate of 96.92 U.S. Dlrs a tonne as a first consignment by April 7. It will supply the remaining 100,000 tonnes at a rate of 93.42 dlrs by April 16.

Turner and Newall Plc said it planned to raise a net 71.7 mln stg with a one-for-six rights issue of 36.15 mln shares. The shares would be offered at 205p, compared with Turner's price which fell to 227p from last night's close at 241p. The group said the funds would be used to cut borrowings, which had risen to 234 mln stg at end-February, largely as a result of the takeover of . The company also reported pretax profits rising to 44.7 mln stg from 39.6 mln previously. It noted that the purchase of AE involved the payment of some 125 mln stg cash as well as taking on AE's own borrowings of some 85 mln stg. The net debt/equity ratio at the year end had risen to 59 pct from 23 pct the year before, it added. The rights issue would cut borrowings and also allow further development through investment and acquisition. But it said that the purchase of AE -- which was won after a long and acrimonious battle last year -- greatly strengthened the group's position in the automotive components and engineering materials sectors. In the 15 months to end-1986 AE produced pretax profits of 27.4 mln stg compared with 25.6 mln in the 12 months previously. As the offer for AE was not declared unconditional until December 5, it made a negligible contribution to Turner's 1986 results. Turner said the prospects were good and it looked forward to taking advantage of the opportunities available. 1986 operating profits were higher in all areas apart from Zimbabwe mines, which were hit by the strength of the local currency against the dollar.

Sony Corp group net income is expected to be down 65 pct for the five months ending March 31 from the same period a year ago at around 10 billion yen, if the yendollar rate remains at the present level, managing director Tsunao Hashimoto told a press conference. Sony will have an irregular five-month business term ending March 31, as its financial year will be changed to run from April 1 to March 31 from the current October 31 year end. Group sales in the same period are estimated at about 550 billion yen, down five pct from a year earlier, he said. The company earlier reported net income of 7.65 billion yen in the three month period ended January 31, down 59.2 pct from a year earlier, on sales of 343.06 billion, down 6.3 pct. The gloomy profits and sales resulted from the yen's recent appreciation against the dollar and a sharp drop in market prices due to severe sales competition at home and abroad. The yen rose 26 pct to an average of 159 yen to the dollar, reducing the company's total sales in the three month period by 40 billion yen, Hashimoto said. Sales of 8-mm video camera/recorders totalled 300,000 units in the three months, unchanged from a year earlier, while Beta-format video tape recorders (vtrs) sales fell to 300,000 from 350,000. Sales of compact disc players rose to 450,000 from 300,000 and those of the Walkman rose to 2.25 mln from 1.30 mln but colour television sales fell to 950,000 from one mln due to lower exports to China. Sales of 8-mm vtrs had already exceeded Beta-format vtrs sales since the beginning of fiscal 1986, Hashimoto said. Overseas sales accounted for 68.2 pct of the total in the three months compared with 71.3 pct a year earlier. Overseas production will account for 35 pct of its total production in 1990 from the present 20 pct. Hashimoto also said parent current profit in the five-month period is estimated at around 17 billion yen, down 33 pct from a year earlier, on sales of 400 billion, down 12 pct. Sony is hoping to retain at least 1985/86 levels of group net profits and sales in the new financial year starting April 1 1987, he added. The company made 41.9 billion yen group net profit in the year ended November 31 1986, down 42.6 pct from a year earlier, on sales of 1,325 billion, down 6.7 pct.

Iraq said its warplanes hit two ships off the Iranian coast in attacks last night and early today. The planes "dealt accurate and effective blows to both maritime targets before they returned safely to base," a military spokesman told the Iraqi new agency INA. There was no immediate confirmation of the attacks from Persian Gulf shipping sources. The last confirmed Iraqi attack on shipping was on March 8, when an Iranian tanker was hit by a missile south of Iran's Kharg island oil export terminal. Gulf shipping sources yesterday reported an Iranian warship had set the Cypriot supertanker Pivot on fire with a missile. They said there were no injuries on board and the ship headed for the Gulf Emirate of Fujairah under its own power after the fire was put out. The Pivot was the 18th ship hit this year in the maritime extension of the 6-1/2 year-old Iran-Iraq war.

Italy's is in the advanced stages of negotiations that could result in an acquisition worth "some hundreds of billions of lire" in the European agro-industrial sector, a company spokesman told Reuters. The spokesman declined to identify the other party or parties involved in talks, or whether a complete takeover was under discussion, but said an Italian newspaper report that Ferruzzi was studying the possibility of advancing an offer for 13 European cereal processing plants owned by the U.S. Group CPC International Inc was incorrect. The spokesman said that possibility had been evaluated by Ferruzzi but that the company's attention at the moment was "decisively in another direction." The spokesman, responding to a report in the Italian economic daily Il Sole-24 Ore that Ferruzzi was considering a possible bid for the CPC plants, told Reuters his company hoped to conclude the talks currently underway in a couple of months. The spokesman said that since the U.K. Government last month blocked Ferruzzi's bid to acquire , the company had been looking at other investment opportunities.

Some 10 Indian ships have been held up at Calcutta port after four days of industrial action by local seamen, a spokesman for the shipowners' association INSA said. The dispute has prevented local crewmen signing on and off, but has not affected foreign ships with international crews docking at Calcutta, which exports tea and jute and imports machinery, crude oil and petroleum products, the spokesman said. Foreign ships may also suffer if dock workers join the action, he said. The Shipping Corporation of India (SCI) has asked its ships to avoid the port until the dispute is over, National Union of Seafarers in India president Leo Barnes said.

Oper shr 55 cts vs 36 cts Oper net 20.7 mln vs 13.6 mln Sales 2.34 billion vs 1.58 billion Avg shrs 38.1 mln vs 37.7 mln Year Oper shr 1.82 dlrs vs 1.48 dlrs Oper net 69.0 mln vs 56.1 mln Sales 7.83 billion vs 6.62 billion Avg shrs 38.0 mln vs 37.8 mln NOTES: Results for 13 and 53 week periods ended Feb 28, 1987, and 12 and 52 week periods ended Feb 22, 1986 Operating net excludes credits from tax loss carryforwards of none vs 5.3 mln dlrs, or 14 cts a share in quarter and 26.0 mln dlrs, or 68 cts a share, vs 32.2 mln dlrs, or 85 cts a share, in year Company had 1,200 stores inoperation at year end vs 1,045 a year earlier

Rhodes Inc said it now estimates fourth quarter, ended February 28, earnings were eight cts a share, down from the 25 cts earned in the final quarter of fiscal 1986. The company said the major causes for the reduction were an unfavorable LIFO adjustment and softer than projected sales in the quarter, due primarily to unfavorable weather. Despite the 4th qtr results, Rhodes said, "net income for the year just ended should come close to the record level of the previous year" -- 1.61 dlrs dlrs a share.

The Bank of England said it had lent one billion stg to the discount market for fourteen days at 10 pct. This brings the Banks total help today to some 1.34 billion stg and satisfies the estimated shortage in the system today which it had earlier estimated at 1.3 billion stg. The Bank's announcement this morning that it was willing to lend two-week money at 10 pct was interpreted by the market as a sanction for lower U.K. Base lending rates. The U.K. Clearing banks swiftly took this up, cutting their base rates by a half-point to 10 pct. At midday, the central bank lowered its money market dealing rates by the same amount.

New York cocoa traders reacted with caution to today's developments at the International Cocoa Organization talks in London, saying there is still time for negotiations to break down. "I would be extremely cautious to go either long or short at this point," said Jack Ward, president of the cocoa trading firm Barretto Peat. "If and when a final position comes out (of the ICCO talks) one will still have time to put on positions. The risk at the moment is not commensurate with the possible gain." ICCO producer and consumer delegates this morning accepted the outlines of a compromise proposal on buffer stock rules as a basis for further negotiation. A smaller group of representatives is now charged with fleshing out the details. "Market sentiment has reflected optimism, I would't put it any stronger than that," Ward said. "It seems to put them slightly closer to an agreement... but one shouldn't forget how much they have to negotiate," said another trader of today's developments. Many dealers were sidelined coming into the negotiations and have remained so, traders said. "The dealers have got historically small positions in outright terms," one trader said. Speculators have gone net long "but only slightly so," he added. The recent price strength -- gains of about 52 dlrs the last two days -- has been due in large part to sterling's rally against the dollar and in the process has attracted a measure of origin selling, traders said.

ANIMED Inc said it expects to return to profitability during the current year. Today it reported a loss for the first quarter ended in January of 368,188 dlrs compared with a 149,334 dlr profit a year before.

Shr loss 14 cts vs loss 31 cts Net loss 144,522 vs loss 334,890 Revs 10,019,828 vs 9,021,835 Year Shr loss 16 cts vs profit 10 cts Net loss 170,177 vs profit 105,090 Revs 36.8 mln vs 36.1 mln Avg shrs 1,068,850 vs 1,074,624 NOTE: 1985 period ended December 28 1985 earnings include loss in each period from discontinued operations of 184,777 dlrs

Today's modest half-point cut in U.K. Bank base lending rates to 10 pct signals the Bank of England's determination to maintain a cautious monetary stance, but financial markets appear set to force its hand, analysts said. They said a further half-point cut in base rates to 9-1/2 pct was bound to occur within the next week and rates may shed a further half point soon if markets remain buoyant. Earlier, markets were bracing for a one-point cut in rates after yesterday's budget set a sharp three billion stg reduction in 1987 government borrowing targets to four billion stg. Sterling money market rates moved lower again, with the key three-month interbank rate down to 9-5/8 1/2 pct at the start of business from 9-11/16 9/16 yesterday, and sterling rallied to four-year highs against the dollar in very active trading. Government bond prices also surged on the budget, with gains in excess of one point pushing yields on long-term paper below nine pct for the first time in nearly a year. But today's smaller than expected rate cut appeared to have placated markets for now, analysts said. Money market rates recovered up to 1/4 point from earlier lows while both sterling and gilts came off highs as trading ground to a near halt. Analysts said the slowdown was likely to be temporary, and the reappraisal of sterling assets by international investors was set to resume as early as tomorrow, leading to higher gilt prices, exchange rate advances and lower money market rates. "Today's cut was slightly disappointing," said Bill Martin, chief U.K. Economist at stockbrokers Phillips and Drew. "The Bank of England is taking a very cautious line ... To temper the markets' first rush of blood to the head after the budget." Analysts said the bank's move today to lend two-week cash to U.K. Discount houses at a lower 10 pct suggested it hoped to maintain the new rates for about that period of time. The analysts agreed success would depend largely on how sterling performs in the near term. Sharp rises in the pound's value could be checked initially through Bank of England intervention but eventually the gains would force the bank to cut interest rates rates again. "The market seems to have accepted the modest cut for the time being," said Midland Bank treasury economist David Simmonds. "But I am sceptical that the bank will be able to hold up rates for long." Simmonds said he saw sterling rising another two U.S. Cents this week from around 1.60 dlrs, forcing a rate cut by Friday. Robin Marshall, chief economist at Chase Manhattan Securities, said "There is another half point to come in the near term, this week or next week at the latest...We see a whole point off base rates in the next two or three weeks." Analysts stressed that apart from prestige, Britain had very little to gain from a sharp rise in sterling's exchange rate. Martin, of Phillips and Drew, said the dampening effect of a sterling rise on consumer price inflation would not materialise for at least nine months while its hampering impact on manufactured exports would show almost immediately. Analysts said the budget, featuring income tax cuts as well as cautious plans for public finances, had improved the chances of re-election for the Conservative government and probably advanced the election date. One must be held before June, 1988. Combined with overall good prospects for the U.K. Economy, this was likely to fuel a foreign rush on sterling-denominated assets, pushing the pound's value well above unofficial targets. With mark-denominated investments largely out of favour because of low yields and a dull economic outlook, Chase's Marshall said "Sterling is simply the best game in town, especially after the budget, and demand will remain strong."

Kinder-Care Inc projected its 1987 earnings to be 44 mln dlrs. Richard Grassgreen, president of the company, said earnings per share are expected to be between 97 cts and one dlr in comparison to 75 cts earnings per share for the fiscal year ended August 29, 1986, and 80 cts for the trailing 12 months ended November 1986. Greengrass said this represents an earnings per share increase of approximately 25 to 30 pct. The company said it changed its fiscal year end from August 31 to December 31.

Japan's ailing shipbuilding industry plans to refloat itself in a few years from the twin rocks of recession and a strong yen through capacity and workforce cuts and greater use of computers, industry sources told Reuters. The salvage measures, which include a government-sponsored rationalisation program, are aimed at clawing back some of the market which Japan, the world leader, has lost to South Korea through currency and labour cost disadvantages, they said. The sources said South Korea's yards are now some 35 pct more competitive than Japan's due to such factors. The government plans to help the industry shed 20 pct of current capacity within two years through mergers and regrouping under legislation put before Parliament this month and likely to be approved by May or June, the sources said. They said from September a semi-government body will assure repayment of about 50 billion yen in liabilities incurred through job losses and the sale of excess capacity, and another 30 billion for buying unneeded land and equipment. Last Friday, the Shipbuilders Association of Japan applied to the Fair Trade Commission to form a cartel to slash tonnage built to about half of total capacity for a year from April 1. The commission has held several hearings with the industry and approval should be given this month, the sources said. A clampdown on output over one or two years combined with a planned cost-cutting and streamlining program and state support should help Japanese yards recover their international competitiveness, they said. Under the cartel proposals, 33 yards each capable of building ships of more than 10,000 gross tonnes would build a maximum of three mln compensated gross registered tonnes (CGRT) in 1987/88. This is about half of total capacity. This will ease the cut-throat competition which forced most yards to sign orders below cost, the sources said. The industry is likely to seek to renew the cartel for 1988/89 as the Transport Ministry sees new orders falling to 3.1 mln CGRT in 1988/89 from 3.3 mln in 1987/88, they said. The rationalisation program includes a cut of 20,000 to 30,000 of the estimated 100,000 workers in the industry between 1986 and 1989. Japanese yards topped world order books at end-December, followed by South Korea and Taiwan, according to Lloyd's Register of Shipping. However, falling orders and declining international competitiveness due to the strong yen led to heavy losses in the industry, the sources said. Four of Japan's six major heavy machinery and shipbuilding companies reported current deficits in the first half of the year to March 31 and five of them are expected to report current deficits for the whole of 1986/7, they said. The shipbuilding companies' streamlining program will raise productivity to compete with South Korean yards which have also been hard hit by declining orders and low ship prices in recnt years, the sources said. In Japan, no single yard leads the industry, resulting in fierce competition and slow progress in reducing capacity. The two largest firms -- Mitsubishi Heavy Industries Ltd and Ishikawajima-Harima Heavy Industries Co Ltd -- account for only 30 pct of ships built, the sources said. "World shipowners hope Japanese yards can manage to ride out the recession as their technology is the best in the world," said an official at a major Japanese shipping company. The Japanese merchant fleet, the largest after Liberia's, has no intention of shifting to other countries to buy ships, and this will encourage Japanese yards, the sources said.

Qtly div 25 cts vs 25 cts prior Pay April 24 Record April Three NOTE: First Connecticut Small Business Investment Co.

The U.S. Senate Finance Committee approved nonbinding resolutions urging the Reagan administration oppose Canada's ruling on U.S corn imports and a proposed new European Community tax on vegetable oils. The resolutions, approved by voice vote, now will be sent to the Senate floor were they are expected to be approved. The EC oils measure, offered by Sen. John Danforth, R-Mo., urges the administration to take strong retaliatory measures if the tax is approved by the EC Council of Ministers. Sen. David Durenberger, R-Minn., offered the corn amendment which urges the administration to file a complaint with the GATT if the U.S. believes the corn decision by Canada was unjustified. Canada recently imposed a permanent duty of 85 cents per bushel on U.S. corn imports.

Recent purchases of U.S. corn by the Soviet Union have skewed the domestic cash market by increasing the price difference between the premium price paid at the Gulf export point and interior levels, cash grain dealers said. Many dealers expect the USDA will act soon to reduce the cash price premium at the Gulf versus the interior -- which a dealer in Davenport, Iowa, said was roughly 20 pct wider than normal for this time of year at 25 cents a bushel -- by making it worthwhile for farmers to move grain. By lowering ASCS county posted prices for corn, the USDA could encourage farmers to engage in PIK and roll corn sales, where PIK certificates are used to redeem corn stored under the government price support loan program and then marketed. If the USDA acts soon, as many dealers expect, the movement would break the Gulf corn basis. "The USDA has been using the Gulf price to determine county posted prices," one dealer said. "It should be taking the average of the Gulf price and the price in Kansas City," which would more closely reflect the lower prices in the interior Midwest. "But we don't know when they might do it," an Ohio dealer said, which has created uncertainty in the market. The USDA started the PIK certificate program in an effort to free up surplus grain that otherwise would be forfeited to the government and remain off the market and in storage. Yesterday, USDA issued a report showing that only slightly more than 50 pct of the 3.85 billion dlrs in PIK certificates it has issued to farmers (in lieu of cash payments) had to date been exchanged for grain. With several billion dlrs worth of additional PIK certificates scheduled to be issued in the coming months, the USDA would be well advised to encourage the exchange for grain by adjusting the ASCS prices, cash grain dealers said. A byproduct of the Soviet buying has been a sharp rise in barge freight costs quoted for carrying grain from the Midwest to the export terminals, cash dealers said. Freight from upper areas of the Mississippi have risen nearly 50 pct in the past two weeks to over 150 pct of the original tariff price. The mild winter and early reopening of the mid-Mississippi river this spring have also encouraged the firmer trend in barge freight, dealers noted. The higher transportation costs have served to depress interior corn basis levels, squeezing the margins obtained by the elevators feeding the Gulf export market as well as discouraging farmer marketings, they said. "The Gulf market overreacted to the Soviet buying reports," which indicate the USSR has booked over two and perhaps as much as 4.0 mln tonnes of U.S. corn, one Midwest cash grain trader said. But dealers anticipate that once the rumors subside, freight rates will settle back down because of the overall surplus of barges on the Midwest river system.

Shr loss 28 cts vs profit seven cts Net loss 10.7 mln vs profit 5,188,000 Sales 119.3 mln vs 216.1 mln Year Shr loss 5.80 dlrs vs profit 30 cts Net loss 324.2 mln vs profit 21.5 mln Sales 549.3 mln vs 859.1 mln NOTE: Share after preferred dividends. NOTE: In July 1986, company set a dividend on Series C preferred, effecting a spin-off of its chemical operations. They unit has been accounted for as a discontinued operation. Fourth quarter and full year 1986 reflect non-recurring charges from change in control at company. Fourth quarter 1986 also reflects writeoff of 20.7 mln dlrs of goodwill. Full year 1986 includes a charge of 224.6 mln dlrs taken in the second quarter for asset revaluation and restructuring costs. In fourth quarter 1986, reversion of pension plan surplus assets completed. Fourth quarter and full year 1986 includes net income of 81.5 mln dlrs or 1.34 dlrs a share. Company also gained 2.4 mln dlrs or four cts a share in fourth quarter 1986, and 15.9 mln dlrs or 26 cts a share in full year 1986, from adoption of accounting rule SFAS 87. In fourth quarter 1986, company also adjusted carrying value of non-chemicals discontinued operations assets leading to charge of 15.6 mln dlrs.

The DIW economic research institute said West German economic growth in 1987 is unlikely to reach the 1.5 pct rate it had forecast earlier this year. The institute, whose forecasts are more pessimistic than those of the other four leading German institutes, said the economy had passed its peak in the summer of 1986, and its prospects had dimmed significantly since the autumn. The DIW repeated earlier predictions that gross national product (GNP) in the first quarter of 1987 would contract in real, seasonally adjusted terms against the weak final quarter of last year. The DIW said that even if the economy recovers in the remaining three quarters, it was unlikely that demand and production would rise strongly enough to bring GNP growth up to 1.5 pct. Other institutes and economists have recently revised their forecasts for German 1987 growth to around two pct. In a report DIW disputed arguments by other economists that the economy was showing mixed development, with domestic demand healthy but foreign demand weak. DIW said the crucial split was between weak demand for capital goods, and strong demand for buildings and consumer goods, not between foreign and domestic demand. It noted that domestic demand for capital goods had been hit in recent months by the weakness of exports, which had caused West German firms to scale back investment plans. Service industries, unlike manufacturing industry, were continuing to do well because they relied on consumer demand, it said. In a separate report the HWWA economic research institute in Hamburg said West Germany's real trade surplus would fall markedly this year. However, the nominal trade surplus would show little change from 1986's record 112.2 billion marks because of a further improvement in the terms of trade on average in 1987 compared with 1986, it said.

Craftmatic/Contour Industries Inc said it would report substantial profits for the first quarter of fiscal 1987 ending March 31. The company recorded net income of 732,000 dlrs, or 22 cts per share, on revenues of 10.2 mln dlrs.

The Commodity Credit Corporation (CCC) accepted a bid for an export bonus to cover the sale of 7,000 tonnes of mixed poultry feed to North Yemen, the U.S. Agriculture Department said. The department said the feed is for delivery during April. As announced earlier the bonus was 90.00 dlrs per tonne, made to The Pillsbury Company and will be paid in the form of commodities from CCC stocks. An additional 143,000 tonnes of mixed poultry feed are still available to North Yemen under the Export Enhancement Program announced April 14, 1986, it said.

Qtly div 28-1/2 cts vs 26 cts previously Pay June 15 Record June One

Iraq said its warplanes had hit a vessel in the Gulf off the Iranian coast today, the third in the past 24 hours. A military spokesman told the Iraqi news agency INA the latest attack was at 1250 GMT. It earlier reported strikes at 0650 GMT and at 1930 GMT last night. The planes "dealt accurate and effective blows" to the targets and returned safely to base. There was no immediate confirmation of the attacks from Gulf shipping sources. The last confirmed Iraqi attack was on on March 8, when an Iranian tanker was hit by a missile south of Iran's Kharg island oil export terminal.

First Union Corp said the buyout of Commerce National Bank by its First Union National Bank of Florida unit was approved by Commerce shareholders. According to the terms of the deal, First Union will pay 8.5 mln dlrs for the outstanding shares of Commerce National, a bank with 43.2 mln dlrs in assets.

Qtly div eight cts vs eight cts prior Pay April 30 Record April 16

Rabbit Software Corp said it has agreed in principle to acquire privately-held communications hardware maker Micro Plus II Corp for about two mln common shares, with closing expected by May.

Shell Canada Ltd said its Shell Canada Products Ltd unit will sell three tankers, effective April one, 1987, to . Terms were not disclosed. Shell also said it will contract exclusively from Socanav normal marine distribution requirements for domestic markets, with some exceptions, for an initial 10-year period. Shell also said its Shell Canadian Tankers Ltd unit will lay off 13 employees and that Socanav will offer jobs to 41 employees. The three Shell vessels are Lakeshell, Eastern Shell and Northern Shell, which range in size from 6,000 to 10,000 tonnes, Shell said. Shell Canada is 72 pct owned by Royal Dutch/Shell Group .

The 1988 agriculture budget will have to be cut by an additional one to two billion dlrs, the chairman of a key house agriculture subcommittee said. Implementation of a 0/92 program, a tightening up of the use of commodity certificates, and reconstitution of farms are possibilities that will be studied to reduce farm spending, said Dan Glickman, D-Kans., chairman of the House agriculture subcommittee on wheat, soybeans and feedgrains. Speaking at the annual meeting of the National Grain and Feed Association, Glickman said he learned this week from the House budget committee that the agriculture committee will have to reduce the fiscal year 1988 farm budget by up to two billion dlrs from the 30 billion dlrs level already approved. Decisions on how to cut the farm budget will have to be made very quickly in order to make any impact on the FY 1988 budget, Glickman added. Glickman also said his committee will not approve USDA's proposal to cut target prices by ten pct per year. "The administration's target price proposals are dead in the water," he said. To cut the budget, Glickman said, "everthing is on the table," except those moves that would reduce farmers' income. Glickman offered a list of possibilities that his committee will study in order to cut farm spending. Implementation of a 0/92 program for 1987 winter wheat and 1988 feedgrains crops has been introduced by Glickman, which he said would result in a 150-200 mln dlr savings for one year. Tightening up on the use of generic (in-kind, or "pik') certificates will also be another option his committee will study, Glickman said. While not committing himself for or against such action, he said lawmakers have to examine recent government findings which indicate certificates cost more than cash payments. Glickman said rules for the reconstitution of farms and tightening up of the person definition for annual payment limitations is another option and could save 100-200 mln dlrs. He also said increasing acreage set-aside requirements by five pct for wheat and feedgrains at program sign-up was a move that could save about one billion dlrs, but added that he would not be in favor of such a change. Glickman also said that the Export Enhancement Program's, EEP, spending authority of 1.5 billion dlrs is quickly being used up, and Congress will have to decide whether to expand this program while making cuts in other areas. Cuts in the EEP program are unlikely, he said. "I don't see right now that the EEP will be on the chopping block," Glickman said.

Qtly div 17-1/2 cts vs 17-1/4 cts Pay April 15 Record March 31 NOTE: Full name Federal Paper Board Co. (Corrects headline and dividend figure in item appearing March 17 to show dividend was raised.)

Shr 27 cts vs 23 cts Net 1,713,000 vs 1,447,000 Revs 46.9 mln vs 39.3 mln Year Shr 97 cts vs 78 cts Net 6,154,000 vs 4,855,000 Revs 167.9 ln vs 130.4 mln

Qtly div 30 cts vs 30 cts in prior qtr Payable April 20 Record March 31

Brazilian red meat production in 1986 fell more than 20 pct to 1.9 mln tonnes due to drought which reduced slaughter weight and to herd rebuilding which started because of high cattle prices, the U.S. Agriculture Department said. In its report on World Production and Trade Developments, USDA said that in 1987, beef production is expected to reach 2.3 mln tonnes. Pork production in 1986 rose 83 pct to 1.1 mln tonnes due to the sharp rise in beef prices and is expected to remain at that level this year, USDA said.

Oesterreichische Laenderbank AG [OLBV.VI] expects to maintain its dividend and to record a moderate rise in profits this year after the 181.5 mln schilling net profit made in 1986, General Director Gerhard Wagner said. Wagner told a news conference that last year's 34.3 pct rise in net profit from 135.1 mln in 1985 was largely due to greater domestic business and wider margins on schilling interest rates. The bank, Austria's third largest, raised its 1986 dividend to 12 pct of its 1.5 billion schilling nominal share capital from 10 pct on capital of 1.35 billion in 1985. Announcing the 1986 results, Wagner said: "We will endeavour to maintain the higher dividend in 1987." Laenderbank's balance sheet total rose five pct to 197.7 billion schillings against 8.1 pct growth in 1985. Foreign currency business last year accounted for some 37 pct of balance sheet total compared with about 41 pct in 1985. Wagner blamed the realtive shrinkage of foreign business chiefly on the dollar's fall against the schilling, which is effectively pegged to the mark. The dollar's weakness had wiped some 8.9 billion schillings off the balance sheet total. Wagner declined to give an exact figure for profits from the bank's London branch, which opened in April 1985, but said that it came close to one mln stg. On schilling lending, profit on interest had risen 18 pct to 2.19 billion schillings while commission earnings climbed 8.7 pct to 738.9 mln. According to the 1987 federal budget, the state is due to lower its stake 60 pct in Laenderbank, probably to 51 pct. Wagner said the exact timing of the move depended on the state.

Shr three cts vs one ct Net 235,000 vs 66,000 Revs 10 mln vs 8,202,000 Avg shrs 7,972,000 vs 8,545,000

Shr loss 83 cts Net loss 2,115,000 Revs 139.6 mln Avg shrs 3.6 mln NOTE: Company went public February 1986.

said it expects 1987 earnings per share will show about the same proportionate increase as in 1986. Last year, the company had 25.7 mln dlrs operating profit, or 76 cts per share, up from 11.1 mln dlrs, or 59 cts per share, in 1985. Shares outstanding increased to 39 mln from 27.8 mln. The American holding company, Laurentian Capital Corp, will show a substantial improvement this year, chairman Claude Castonguay said before the annual meeting. Laurentian Capital Corp, which recently acquired two small U.S. life insurance companies, had 1986 profit of 1.1 mln U.S. dlrs, or eight cts per share, compared to seven mln U.S. dlrs, or 68 cts per share. Castonguay said Laurentian Group Corp, the parent firm, plans to fill out its national financial services distribution system and make further acquisitions if the right opportunity occurs. The company also may expand this year in continental Europe, in conjunction with La Victoire, a French insurance company, he said.

Chilean left-wing leaders were elected by the copper workers union for the first time since the left-wing government of Salvador Allende was overthrown in a 1973 coup. Nicanor Araya, a member of the Popular Democratic Movement (MDP), was named president of the Chilean Confederation of Copperworkers (CTC), which groups 22,000 workers employed in the state-owned copper mines, union officials said. Other members of the MDP, which includes the communist party and a faction of the socialist party, took five of the principal positions on the union's directorate. The state-owned copper company of Chile (CODELCO) produces around 90 pct of the country's copper output of some one mln tonnes per year. Chile is the world's leading copper exporter and sales account for just under 50 pct of its export income. The MDP won six out of the 14 places on the union's directorate in elections earlier this month, with the christian democratic party holding five and the remainder being won by independents. But the left-wing was left in control of the union after the christian democrats and independents failed to reach agreement on a joint candidate for the presidency and withdrew from negotiations. Union elections were called following the resignation of former president Rodolfo Seguel last October. Seguel, a christian democrat and Chile's best-known union leader, said he was forced to step down after repeated court actions brought by CODELCO prevented the union from operating. The labour leader, who now heads the inter-union national workers command (CNT), was among 500 workers sacked by CODELCO following a strike in 1983. The strike, the only copper industry stoppage staged in the past 13 years, marked the start of a wave of protests against the military rule of President Augusto Pinochet. CODELCO argued that Seguel could not continue as union leader when no longer employed by the company.

, the financial services and advertising group, has asked S.G. Warburg and Co Ltd to arrange a 100 mln dlr multiple option facility which will restructure a part of the company's exisiting banking arrangements, banking sources said. The financing will be for five years and involves a committed backstop facility and an uncommitted tender panel for cash advances in dollars or other available currencies. The committed part of the transaction will carry a facility fee of 7.5 basis points and drawings will be at a margin of 15 basis points. There also will be a utilization fee of five basis points if the underwriting banks are called upon to provide more than 30 pct of the facility.

The U.S. Departments of Agriculture and Transportation are close to agreement on how to fund the increasing share of food aid to be shipped on U.S. flag vessels under a 1985 farm bill provision on cargo preference. Melvin Sims, USDA's general sales manager told a House Agriculture Appropriations subcommittee hearing that the two departments are negotiating a "memorandum of understanding" on cargo preference. Under a 1985 farm bill provision, the percentage of food aid shipments carried on U.S. flag vessels was to gradually increase over three years to 75 pct in 1988. The increased cost of using U.S. vessels was to be funded by the Transportation Department instead of USDA. However, USDA officials said Transportation has so far contributed no money. The agreement between USDA and Transportation is expected to resolve the matter, USDA officials said. Tom Kay, administrator of the USDA's Foreign Agricultural Service said yesterday the requirement that more food aid shipments be carried on U.S. vessels has been difficult to meet. "As the tonnage (required under cargo preference) goes up, its going to be harder and harder to meet," Kay said. Two farm state Congressmen, Pat Roberts (R-Kan.) and Glenn English (D-Okla.) said cargo preference makes U.S. farm export programs more costly and the program should be eliminated. In the past, farm interests opposed to cargo preference have been defeated in Congress by the maritime interests who view cargo preference as vital to the U.S. shipping fleet.

Some 7,000 black workers returned to work after staging one-day strikes at two mines on Monday, the National Union of Mineworkers and the companies that own the mines said. About 6,000 miners resumed work at the Grootvlei gold mine east of Johannesburg after protesting the transfer of colleagues to other jobs at the same mine, owners General Mining Union Corp Ltd said. The union said about 1,000 mineworkers at a new coal facility owned by Anglo American Corp of South Africa Ltd also returned to their jobs on Tuesday. The workers at Anglo's Vaal Colliery south of Johannesburg had struck to protest the alleged refusal of officials of the South African homeland of Transkei to allow miners to attend a funeral in the homeland, a union spokesman said.

AB Volvo is issuing a 70 billion eurolire bond due May 31, 1990 paying 10-1/8 pct and priced at 100-1/2 pct, lead manager Banca Commerciale Italiana said. The bond is available in denominations of two mln lire and will be listed in London. Fees comprise 7/8 pct selling concession with 1/2 pct for management and underwriting combined. Payment date is April 24 and there will be a long first coupon.

The European Community (EC) farmers' and farm cooperatives lobbies, Copa and Cogeca, have backed the EC Commission plan for an oils and fats price stabilisation mechanism, claiming it would not harm consumers. In a letter to Belgian Foreign Minister Leo Tindemans, current president of the EC Council of Ministers, they said the mechanism, often referred to as a tax, would in fact subsidise oils and fats prices in the EC under some circumstances. This would have been the case in May 1984, when soya oil prices cif Rotterdam stood at 914 dlrs a tonne, they noted. If such price stabilisation is not implemented, EC farmers should not be the ones to suffer through their prices and incomes from the financial consequences, the letter, made available to journalists, said. Under the Commission proposal the mechanism would initially result in a tax of 330 Ecus a tonne on both imported and EC produced oils and marine fats. The mechanism would provide for this tax to be reduced, and possibly to become a subsidy, as world soya oil prices rose from present levels.

Clearing bank sterling lending to the U.K. Private sector in February is estimated to have risen by an underlying, seasonally-adjusted 1.6 billion stg after a 1.2 billion stg rise in January, the Banking Information Service said. The unadjusted rise was 1.31 billion stg, compared with an 813 mln stg increase in January. The Banking Information Service said the adjusted rise of 1.6 billion stg was well above the recent monthly average of about 1.0 billion stg. Of the increase, 297 mln stg was accounted for by personal lending, which the Banking Information Service said was taken up entirely by lending for home purchases. Lending for consumption fell around 17 mln stg while about 182 mln stg of credit card debt was repaid during the month. Lending to the manufacturing industry was up 370 mln stg, and to leasing companies by 308 mln stg. The Banking Information Service said February fell within the governmemnt tax season, so much of the lending was probably the result of industry's need to pay its tax bills. Deposits by the private sector rose an unadjusted 1.1 billion stg in February and by a seasonally-adjusted 1.75 billion stg. Deposits from the public sector rose 185 mln stg in February while deposits from overseas residents rose by 43 mln.

Unemployment in the U.K. Fell a provisional seasonally-adjusted 44,100 in February, to total 3.07 mln or 11.1 pct of the workforce, the Employment Department said. In January, seasonally adjusted unemployment fell by a revised 1,100 to 11.3 pct, it said. Initially the January position was reported as flat. The unadjusted jobless total, including school leavers, fell to 3.23 mln, or 11.7 pct, from 3.30 mln, 11.9 pct, in January. February was the seventh successive month that seasonally adjusted unemployment registered a fall. It was at a peak of 11.7 pct last summer. Lord Young, the Employment Minister, said there appeared little doubt the monthly fall, which has been running at about 20,000, will continue. A Department spokesman said the sharp fall in February reflected some compensation for the flat figure in January and continued the downward trend seen in the past six months. He said the February fall was spread throughout the country and among men and women.

U.K. Property company MEPC Plc is issuing a 75 mln stg eurobond due April 15, 2004 paying 9-7/8 pct and priced at 99-5/8 pct, lead manager County Natwest Capital Markets said. The bond is in partly paid form with 25 pct due on April 15 and the remainder on July 15. It will be available in denominations of 1,000 and 10,000 stg and will be listed in London. Fees comprise 1-1/2 pct selling concession and 1/2 pct each for management and underwriting.

AB Volvo is issuing a 70 billion eurolire bond due May 31, 1990 paying 10-1/8 pct and priced at 100-1/2 pct, lead manager Banca Commerciale Italiana said. The bond is available in denominations of two mln lire and will be listed in London. Fees comprise 7/8 pct selling concession with 1/2 pct for management and underwriting combined. Payment date is April 24 and there will be a long first coupon.

Ecuador is seeking between 437 and 450 mln dlrs in loans this year from multilateral organisations and foreign governments to grapple with economic losses from a devastating earthquake 13 days ago, a presidential economic adviser said. Foreign governments and multilateral organisations hold one-third of Ecuador's 8.16 billion dlrs total foreign debt, he said in a news conference at the presidential palace. But he added that the suspension of payments to private foreign banks, who hold the rest of the foreign debt, would be prolonged though the government hoped to negotiate an agreement with these creditors. President Leon Febres Cordero says the earthquake cost the country one billion dlrs in losses and left 1,000 people dead or missing. Swett, who was Finance Minister of Ecuador between August 1984 to June 1986, added: "With the private foreign banks there has been a ceasing of payments by Ecuador. "We are bringing forward the respective negotiations whose conclusion we hope finalises in the next few weeks." Finance Minister Domingo Cordovez said last week that quake-hit Ecuador sought through negotiations to postpone all payments due to the private foreign banks in 1987 until next year. Although Swett gave no gave details on the latest plan for negotiations with private foreign banks, he calculated the suspension of payment to these creditors would save the government 54.45 billion sucres. This amount is equal to 363 mln dlrs at the free rate of 150 sucres to the dollar -- the rate Swett said reporters should use in calculating the dollar equivalent. The Ecuadorean central bank, which is the institution remitting debt payments abroad, uses the official rate of 95 sucres to the dollar for its accounting purposes. At the official rate, the 54.45 billion sucres' sum equals 573 mln dlrs. Ecuador, squeezed by a slide last year in prices for crude, its main export, suspended payments to private foreign banks in January. Swett said the government would also seek to refinance the 1.429 billion dlr section of the debt owed to the Paris Club group of foreign governments, though it would continue to service the debt with them. He gave no more details. The government adopted a tough austerity program last Friday intended to grapple with the tremor's economic costs. But the country's labour unions have called a general strike for Wednesday to press for a suspension of the program. The 500,000-strong Unitary Workers' Front (FUT) and the 100,000-member General Union of Workers (UGT) called the strike to cancel the measures, which include a rise in petrol prices of up to 80 per cent and budget cuts of as much as 10 per cent. The leftist-led FUT said it was also backing a call by the Maoist Popular Movement for Democracy (MPD) party, to have Congress impeach and oust Febres Cordero, a conservative, for having adopted the austerity measures.

Sanwa Bank Ltd has agreed to buy a two pct stake in Oporto-based (BPI), Portugal's largest merchant bank, a Sanwa official said. Sanwa will purchase the shares from International Finance Corp, a BPI shareholder and sister organisation of the World Bank, for 351 mln yen, he said. The acquisition will be completed this month as both the Japanese and Portuguse governments are expected to give permission soon. This is the first time a Japanese bank has bought a stake in a Portuguese bank. Sanwa plans to increase its stake in BPI to four pct, the ceiling for foreign shareholders, the official said. The bank has also agreed with , a state-owned merchant bank in Oporto, to exchange information on customers and help accelerate Japanese investment and technological transfers to Portugal, he said.

The Australian dollar eurobond launched yesterday for the Republic of Austria has been increased to 75 mln dlrs from the original 50 mln, Credit Suisse First Boston Ltd said as lead manager. The five year transaction has a 14-1/4 pct coupon and was priced at 101-3/4 pct.

AmeriTrust Corp said its board declared a two-for-one stock split, and management intends to recommend to directors an increase in the quarterly dividend to at least 50 cts per share presplit from the current 44 cts. The company said shareholders at the May 14 annual meeting will be asked to approve an increase in authorized common shares to 100 mln from 25 mln, as well as a limitation of directors' liability and the establishment of a classified board. The split is subject to approval of the increase in authorized common shares, it said.

American Can cop said it has filed a shelf registration covering 500 mln dlrs of debt securities to be issued from time to time. It said proceeds will be used for general corporate purposes, which could include acquisitions, business investments or debt repayment.

Shr 1.64 dlrs vs 90 cts Net 64.9 mln vs 28.8 mln Revs 73 mln vs 35 mln NOTE: Shares outstanding 39.5 mln vs 32.1 mln. Avg shrs not given. Company recently raised equity and voting interests in to 13.4 pct and 16.1 pct, respectively.

Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating today's hog slaughter at about 295,000 to 305,000 head versus 307,000 week ago and 311,000 a year ago. Cattle slaughter is guesstimated at about 124,000 to 128,000 head versus 127,000 week ago and 126,000 a year ago.

Current interest by Soviet charterers in taking Panamax vessels on timecharter, mainly from the U.S. To carry grain, is seen as the chief factor behind the recent surge in values on the Baltic International Freight Futures Exchange (BIFFEX), dealers said. Futures soared through the 1,000 points barrier today for the first time in the spot position since the market opened in May 1985. However, the market tends to be nervous, with values some 100 points above the Baltic Freight Index, which is calculated on spot physical rates. No specific figure has been put for Soviet bookings but they have been sufficient to drain Panamax tonnage (about 50,000 to 65,000 tonnes dw) from the U.S. Gulf which would normally operate on the trip to Japan, dealers said. "It appears that the Chernobyl disaster had a worse effect on its (the Soviet) grain harvest than reported," one said. Freight rates on the Gulf/Japan grain route have subsequently been the main beneficiary of current chartering conditions, with very few, if any, Panamax sized ships left for the remainder of this month in the Gulf. Rates have risen steadily for vessels loading next month. Dealers said there is even talk that owners are considering taking older vessels out of lay-up to meet current demand. Sentiment has also been aided by suggestions that Chinese operators may be in the market for similar timecharter business later in the year, they said. They anticipate this would appear around June and it has prompted keen demand in the July BIFFEX contract, despite it normally being a slack time in the shipping year. Market sentiment has fluctuated in recent weeks. Rates turned down as an earlier rise in bunker prices, which had supported the market at the start of the year, faltered but then recovered on the reported Soviet interest.

An accord is in sight in Brazil's 20-day-old national seamen's strike, which has seriously delayed exports, a union official said. The official, speaking from strike headquarters in Rio de Janeiro, said up to 30,000 of Brazil's 40,000 seamen were still on strike. He said the others had returned to work over the last week, accepting pay offers of 120 pct from four private companies and from the Frota Nacional de Petroleiros (Fronape), part of the state-owned oil company Petrobras. The association grouping private shipowners, Syndarma, has also offered 120 pct but talks have so far been deadlocked over payment for overtime. The union official said he believed this issue would be resolved shortly.

Amcast Industrial Corp said it completed the sale of its Newman Division to Newman Manufacturing Inc, a new company formed by Newman's employees. The sale price was not disclosed. Amcast said Newman's Kendallville, Indiana plant is one of the country's largest producers of gray iron castings for the automotive and commercial air conditioning and refrigeration industries. It said the plant employs 300 people. Amcast said it decided to sell the division to move out of the gray iron castings business.

Shr 26 cts vs 21 cts Net 5,553,000 vs 4,307,000 Revs 45.1 mln vs 34.2 mln Year Shr 86 cts vs 67 cts Net 18.2 mln vs 14.0 mln Revs 161.1 mln vs 118.3 mln NOTE: Share adjusted for stock dividends.

The Federal Reserve is expected to refrain from reserve-management intervention in the U.S. Government securities market, economists said. If the Fed does act, however, they said it would be likely to add temporary reserves indirectly by arranging around 1.5 billion dlrs of customer repurchase agreements. Federal funds, which averaged 5.97 pct yesterday, opened at six pct and remained there in early trading.

European Community (EC) industry ministers today declared there is a need for a massive round of closures of steel plants to bring capacity in the 12-country bloc into reasonable balance with demand. The ministers were meeting to discuss a plan for voluntary plant closures drawn up by the industry lobby group Eurofer which it calculates would cost around 22,000 jobs. Diplomats said that in their initial reactions to the scheme, most ministers declared it was a useful basis for discussion, but did not go nearly far enough. Eurofer says it has identified scope for the closure of plants which have an annual capacity of 15.26 mln tonnes, provided the companies concerned can be fully repaid by the EC or national governments for redundancy and other social costs. But EC Executive Commission sources said Industry Commissioner Karl-Heinz Narjes told ministers today that 30 mln tonnes of annual capacity was excess to requirements and should be closed by the end of 1990. He said the Eurofer plan in particular fails to pinpoint the scope for closure in heavy hot-rolled wide-strip products, typically produced in plants employing thousands of people. The sources said no minister challenged Narjes' analysis that four or five hot-rolled wide-strip lines would have to close. They said ministers agreed that the Eurofer plan should be expanded and developed through meetings among the industry body, the Commission and representatives of member states. However, diplomats said it was clear from today's discussions that such meetings will be difficult. They said member states are split on whether to reduce the scope of a quota production system, which at present protects EC steelmakers from the full force of competition for 65 pct of their products, while talks on the closure plan proceed. It was also clear that there will be tough talks on which EC member states should bear the brunt of the closures and on how much funding for help to those thrown out of work should come from Community coffers. German minister Martin Bangemann said his country's steel industry, the largest in the EC, should not suffer proportionately more than others, German sources said. But British diplomats said their minister, Giles Shaw, insists that the profitability of companies should be taken into account. The state owned British Steel Corporation, benefitting from massive recent write-offs of its accumulated debts, is currently one of the few EC steel companies in the black. Ministers were this afternoon trying to agree a joint statement on the Eurofer plan and the situation in the industry.

Qtly div 17.5 cts vs 17.5 cts in prior qtr Payable April 15 Record March 31 (Company corrects amount of previous payment in MARCH 18 item to show there was no change)

Banca del Monte di Parma said it will issue up to 20 mln dlrs of euro-certificates of deposit on the euromarket. Samuel Montagu of London would be dealer for the programme, while Euromobiliare Ltd would be involved in placing the certificates with institutional investors, the bank said. Maturities on the certificates will be between seven and 365 days.

Duff and Phelps said it lowered its ratings assigned to Minnesota Power and Light Co's fixed income securities, covering about 442 mln dlrs in debt. The first mortgage bonds were lowered to D/P-7 (low single A) from D/P-4 (low double A), and the preferred stock to D/P-8 (high triple B) from D/P-5 (high single A), it said. The ratings reflect continuing erosion of a major segment of its sales base as the outlook for the taconite industry continues to be depressed, D/P said.

Panama Canal toll charges will not rise in the year to end-September 1988, despite last October's landslide which dumped 0.5 mln cubic yards of debris into the waterway, Canal Commission Administrator Dennis McAuliffe said. He told a press conference that in confirming the Commission's earlier announcement of unchanged tolls for 1988, he was not necessarily implying there would be a rise in 1989. The canal would probably make a five to six mln dlr loss in the current financial year but this could be carried over and met from next year's revenues. This year's deficit resulted from the landslide which cost the canal about 15 mln dlrs, McAuliffe said. This included eight to nine mln dlrs in immediate costs with the rest being spent on earth-moving operations to prevent any further landslides. He said the landslide was not caused by deforestation and he described as grossly exaggerated reports that there was any threat to the canal's water supply in the foreseeable future. Studies concerning the possibility of widening the Gaillard cut would not be affected by the landslide, he said, adding that he expected the canal board to determine whether and when the canal needed widening by January 1988 at the latest.

Shr loss 76 cts vs profit 50 cts Net loss 19,186,000 vs profit 12,438,000 Sales 157.9 mln vs 149.2 mln NOTE: Fiscal 1987 net loss includes a pretax charge of 19.5 mln dlrs from restructuring and an after tax charge of about seven mln dlrs from debt prepayment premiums. Fiscal 1986 net profit includes a pretax gain of 7.2 mln dlrs on the sale of some land, an after tax loss 1.35 mln dlrs from discontinued operations and an after tax gain of 6.7 mln dlrs from a change in accounting. All results restated to exclude five businesses divested as part of the company's restructuring program.

French gross domestic product will grow by only 1.5 pct in real terms this year, compared with the government's forecast of two to 2.5 pct growth, the private Institut des Previsions Economiques et Financieres pour le Developpement des Entreprises (IPECODE) said. However, it expects growth to recover next year to the 1986 level of two pct. IPECODE said demand and production would develop in parallel this year, in contrast to last year when production was unable to keep pace with the strong rise in domestic demand, unleashing higher import demand. Claims on the International Monetary Fund (IMF) rose by 298 mln francs to 19.61 billion francs, due to net withdrawals in francs by member nations, and an increase in reserves of Special Drawing Rights (SDRs) due mainly to the repayment of French debts. Its deficit with the European Monetary Cooperation Fund (FECOM) remained unchanged in February at 33.90 billion francs. French household consumption, which rose by 3.1 pct last year, is likely to grow by just 1.1 pct this year and 1.5 pct in 1988, it added. Industrial investment is expected to rise by 4.3 pct this year and 5.5 pct in 1988, down from 6.5 pct in 1986. Inflation, which was running at 2.1 pct at the end of 1986, is likely to rise to 2.9 pct at the end of this year, IPECODE said, while the government has forecast 2.5 pct. However, the institute said inflation would fall back to 2.5 pct at the end of 1988, "provided that real wage costs remain within the framework of productivity rises."

Parent company net profit 754.45 mln francs vs 674.1 mln. Dividend 19.50 francs vs same. NOTE - Company said the dividend would apply to shares issued under capital increases during 1986. This means a 32 pct rise in total dividend payments to 528.14 mln francs on 1986 results from 399.62 mln the previous year.

Shr loss 12 cts vs profit 37 cts Net loss 350,738 vs profit 1,095,991 Revs 18.8 mln vs 15.8 mln Year Shr profit 28 cts vs profit 1.29 dlrs Net profit 831,901 vs profit 3,000,716 Revs 60.6 mln vs 48.2 mln Avg shrs 2,996,903 vs 2,756,596 Note: Per share date adjusted to reflect 10 pct stock dividend of March 1986.

Caisse Nationale des Autoroutes (CNA) is issuing a three billion franc 8.50 pct, 15-year domestic bond at 96.10 pct, co-lead managers Caisse Nationale de Credit Agricole, Credit du Nord and Credit Lyonnais said. Payment date will be April 6. Denominations are of 5,000 francs. Redemption will be in three equal tranches after 12 years.

Household Financial Corp Ltd is issuing a 75 mln Canadian dlr bond due April 23, 1994, carrying a coupon of nine pct and priced at 101-3/4, said Orion Royal Bank as lead manager. The securities are guaranteed by the parent company, Household Finance Corp and are available in denominations of 1,000 and 10,000 dlrs each. There is a 1-1/4 pct selling concession and a 5/8 pct combined management and underwriting fee. The company's outstanding securities are rated AA-minus by Standard and Poor's corp.

European Community (EC) industry ministers agreed on a plan for voluntary steel plant closures, drawn up by industry lobby group Eurofer, and calculated to lead to the loss of about 22,000 jobs. The ministers resolved that the proposed closures, which should bring production capacity more in line with weak demand, "remain considerably below the surplus in capacity." They asked the EC Executive Commission to consult with Eurofer, major steel companies and with governments, to pinpoint scope for further capacity reductions beyond the annual 15.26 mln tonnes identified by Eurofer. The Commission will draw up a new system of steel production quotas to protect vulnerable EC firms from the full rigors of open competition. Commission sources said any new system would cover only heavy products representing about 45 pct of the market, instead of 65 pct under the present system. Ministers hope to approve a closure program when they meet again in Brussels on June 1, the sources said. Industry Commissioner Karl-Heinz Narjes told ministers capacity was 30 mln tonnes in excess of requirements and that this excess ought to be eliminated by the end of 1990.

Shr profit five cts vs loss 40 cts Net profit 669,000 vs loss 4,256,000 Revs 46.1 mln vs 43.8 mln Avg shrs 13.9 mln vs 10.5 mln Nine mths Shr profit 42 cts vs loss 23 cts Net profit 5,529,000 vs loss 2,219,000 Revs 152.2 mln vs 139.6 mln Avg shrs 13.3 mln vs 9,489,000 NOTE: Current year net both periods includes 1,800,000 dlr gain from sale of property.

The European Community Commission has decided to abolish a special tax of eight Ecus per tonne imposed on exports of Spanish maize, Commission sources said. They said the tax, which applies to Spanish sales to EC and non-EC countries alike, would no longer be required on exports from Spanish ports south of Valencia. The decision was taken at a meeting of the authority's cereals management committee today. The tax had been introduced last September at the same time as a subsidy of eight Ecus per tonne was brought in for exports of maize to Spain from other EC member countries. The aim of the tax was to prevent the maize imported into Spain from the other EC states with the help of subsidies from being reexported back to them. The sources added that Spain had received no answer from the committee to its request that tenders be opened for the sale to third countries of 450,000 tonnes of maize. The request will be considered at the committee's next meeting, the commission sources said. Madrid estimates that it needs to import 1.7 mln tonnes of maize this year, while an EC-U.S. accord guarantees non-EC producer sales to Spain of two mln tonnes of maize and 300,000 tonnes of sorghum annually for the next four years.

Several leading farm-state Congressmen said they will press the U.S. Agriculture Department to implement some kind of marketing loan to make soybeans exports competitive while protecting farm income. Speaking at a House grains subcommittee hearing, chairman Dan Glickman, D-Kan., proposed that Congressmen and representatives of soybean growers meet with USDA on the subject in the next two weeks. "Let's see if we can try to push them (USDA) to do something without legislation," Glickman told the hearing. The current soybean loan rate effectively is 4.56 dlrs per bushel with no income protection, or marketing loan. David Haggard, American Soybean Association, ASA, president said USDA must make changes in the soybean program. The current soybean program "gave us the worst of both worlds," ASA's Haggard told the hearing. The 1987 loan rate is too high relative to corn and is encouraging an expansion of soybean production in South America, he said. At the same time, the U.S. soybean loan rate is too low to provide any income support for soybean farmers, Haggard said. "We need some kind of market loan," he added. The 1985 farm bill provides authority for the Agriculture Secretary to implement a marketing loan for soybeans but USDA so far has resisted pressure to use the authority. Representatives of ASA met earlier this month with USDA, but Haggard said USDA officials gave no indication if they would seriously consider offering a marketing loan. USDA undersecretary Daniel Amstutz yesterday said the soybean situation is a "dilemna" which has been studied extensively by the department. But he did not say what, if any changes, are under consideration. In his testimony, Haggard indicated there are ways other than a marketing loan which should be considered to help soybean growers, such as a so-called producer option payment, or a direct payment program. Haggard said barring any program changes, Commodity Credit Corporation, CCC, soybean stocks, now at 385 mln bu, will rise to 500 mln by the end of August. A further 100 mln bu of soybeans could be forfeited between September and end-year. "Thus, CCC could own the equivalent of Brazil's entire soybean crop by the end of calendar year 1987," Haggard said. However, Haggard said that the U.S. should be cautious in making soybean program changes that might allow the European Community to challenge the U.S. program under the General Agreement on Tariffs and Trade, GATT. He noted that The EC imports one quarter of U.S. soybean production and loss of that market would be devastating. The Reagan administration has given "mixed signals" on whether it believes a marketing loan for soybeans could be successfully challenged in GATT by the EC, Haggard said. While the ASA position is to support a 5.02 dlrs per bu loan rate combined with a marketing loan, Haggard also endorsed a proposal by Rep. Jerry Huckaby, D-La., which would set a six dlrs per bu loan rate and apply a marketing loan. The Huckaby proposal is also supported by the ranking Republican on the House Agriculture committee, Rep. Edward Madigan of Illinois. Subcommittee chairman Glickman endorsed the need to take some action on soybeans, but cautioned that the marketing loan could mean a substantial increase in budget costs. Glickman noted that the Agriculture Committee must cut one to 1.5 billion dlrs from its fiscal 1988 budget and therefore must fit any soybean program changes into the overall budget. Haggard said at a soybean loan rate of six dlrs per bu combined with a marketing loan, the U.S. soybean price might fall to four dlrs per bu initially. This would cost the government a maximum of two billion dlrs. But he said the costs would decline as market prices recovered.

Victory Markets Inc is raising 60 mln dlrs through an offering of subordinated debentures due 1999 with a 12-1/2 pct coupon and par pricing, said sole underwriter Drexel Burnham Lambert Inc. Non-callable for five years, the debt is rated B-2 by Moody's Investors Service Inc. The issue was increased from an initial offering of 50 mln dlrs because of investor demand.

Moody's Investors Service Inc said it may upgrade Fleet Financial Group's 1.1 billion dlrs of debt. Moody's cited Fleet's announced merger with Norstar Bancorp Inc . The rating agency said it will examine the degree to which the combined entity would have a more diversified earnings stream, balanced funding structure and enhanced equity base. Fleet Financial has A-1 senior debt and preferred stock, A-2 subordinated debt and Provisional A-1 shelf registered securities. Moody's said Norstar's ratings have been under review for possible downgrade since February 23.

Shr profit two cts vs profit two cts Net profit 216,000 vs profit 265,000 Revs 1,661,000 vs 1,376,000 12 mths Shr profit four cts vs loss two cts Net profit 528,000 vs loss 290,000 Revs 5,881,000 vs 5,541,000 NOTE: full name of company is pension insurance group of america inc.

Transco Exploration Partners Ltd said participation in 14 new discoveries increased its proved gas reserves to 558.1 billion cubic feet in 1986, up from 541.5 billion cubic feet in the previous year. Proved reserves of liquids remained about the same at 25.1 mln barrels, the company said in the 1986 annual just released by Transco Energy Co , the majority owner of the Transco Exploration partnership. Transco said that anticipated oil and gas prices during 1987 would continue to exert pressure on the profitability of most energy companies. The Transco pipeline system reached permanent take-or-pay settlements on about half its committed gas deliverability and interim agreements for another 38 pct of its deliverability, the annual report said. The company said it paid a total of about 363 mln dlrs to producers through Februry one out of its 550 mln dlr reserve to settle the take-or-pay disputes. Transco said its gas pipeline delivered more than 1.2 trillion cubic feet last year and its marketing affiliate sold an average of 1.6 billion cubic feet of gas per day. The company's exploration partnership received an average price of 1.84 dlrs per mln cubic feet for gas sales during 1986, down from 3.04 dlrs in 1985. Sales of oil and condensate averaged 15.86 dlrs per barrel last year, down from 27.41 dlrs per barrel in 1985.

Oper shr loss 30 cts vs loss 25 cts Oper net loss 2,138,000 vs loss 2,312,000 Revs 99.3 mln vs 89.4 mln Year Oper shr loss 40 cts vs profit 47 cts Oper net profit 4,294,000 vs profit 8,793,000 Revs 390.9 mln vs 360.5 mln NOTE: Excludes discontinued operations loss of 1.33 dlrs a share vs 5.35 dlrs a share in the quarter, and loss 1.52 dlrs a share vs loss 13.64 dlrs in the full year. Fourth quarter 1986 includes reserve of nine mln dlrs for operations company plans to sell. Per share figures come after preferred dividend requirements.

Shr loss 1.55 dlrs vs loss 52 cts Net loss 13,191,000 vs loss 2,254,000 Revs 1,179,000 vs 2,003,000 Avg shrs 8,520,000 vs 4,330,000 Note: Current year loss includes 11.8 mln dlr writedown of oil and gas properties under full cost accounting method.

Dorsey Corp said it completed the sale of substantially all its Dorsey Trailers Inc subsidiary assets to , whose stockholders include a former Dorsey vice president and several executives of the Dorsey Trailers management team. Terms of the acquisition were not disclosed.

Shr 17 cts vs five cts Net 1,442,000 vs 393,000 Revs 9,771,000 vs 8,052,000 Year Shr 74 cts vs 23 cts Net 6,076,000 vs 1,875,000 Revs 34.9 mln vs 30.3 mln

A U.S. Navy battle group led by the U.S. aircraft carrier Kitty Hawk is in the northern Arabian Sea amid renewed concern about the safety of shipping off the coast of Iran, U.S. officials said today. But Pentagon spokesman Fred Hoffmann said that reports the naval strike force was in the region did not mean the United States was sending a new warning to Iran against escalating attacks on shipping in the Persian Gulf. "Nothing like that has happened," he said. "No signal is being sent." He said that the Kitty Hawk is operating in an area where it usually does. "It's normal. It's in the waters where it's supposed to be. It's been there for over a month." The Kitty Hawk and its force of warplanes is the mainstay of the U.S. Indian Ocean Battle Group which patrols a vast area extending from the Indian subcontinent through the Arabian Sea. With the Kitty Hawk and its group in the Arabian Sea to the south and the U.S. Mideast Task Force in the Persian Gulf to the north, the United States has 10 warships on either end of the strategic Straits of Hormuz. The Pentagon, as is its custom, declined to confirm the exact whereabouts of the ships or what they were up to. State Department officials cited concern about the safety of ships passing through the Straits on the vital oil supply run to the Gulf. Iran has conducted repeated attacks on shipping in the Gulf and U.S. officials have said that Teheran has recently equipped itself with powerful Chinese and Italian-made anti-ship missiles, posing a greater threat.

Dominican Alfredo Ricart will take over as executive director of the International Sugar Organization (ISO) in mid-April, ISO officer in charge Constantin Politoff said. Previous ISO chief William Miller retired at end-February last year. Ricart told Reuters his first aim is put the "house in order" by having a new administrative sugar pact with improved allocations of voting rights and financial contributions. Once this is done, time can be dedicated to working towards a new International Sugar Agreement (ISA) with economic clauses, he said. Ricart, currently the Dominican Republic's ambassador to Austria, the Netherlands and the UN in Geneva, said he will visit the four major exporters - Australia, Brazil, Cuba and the European Community - to talk to governments and producers and find out about problems that are preventing these countries finding common ground for a new sugar pact.

Qtly div 57 cts vs 57 cts Pay April 30 Record April 3

The Chinese port of Ningbo is working well below capacity despite being only 130 miles from Shanghai, which is seriously congested, a port official said. Jiang Feng Xiang said the port -- the deepest in China -- handled 17.95 mln tonnes of cargo last year, up from 10.44 mln in 1985, but well below its potential capacity of 32 mln tonnes. Shanghai handled 100 mln tonnes of cargo in 1986. Jiang said Ningbo is under-utilised because of its inadequate facilities, including a single track rail line linking it to Hangzhou, where it joins the national network. Ningbo handles crude oil exports and transhipments of coal from north to south China and imports include fertiliser and soda ash and iron ore from Brazil and Australia. The docks can handle ships of up to 150,000 tonnes and oil tankers of up to 200,000 tonnes can load and unload in the harbour. Most of Ningbo's port infrastructure has been built since 1979, official publications show. A container berth and two timber and three general cargo berths will be added during the current 1986-90 five-year plan, Jiang said. "The rail line to Hangzhou will be double tracked by 1995. By 2000, maybe, we will overtake Shanghai," he added.

Federal Reserve Board Chairman Paul Volcker said the U.S. Trade deficit is a challenge for the U.S. Equal to the Soviet Union launching of Sputnik. "The international challenge implicit in our huge trade deficit has become the 1980s equivalent to the launch of Sputnik by the Russians in the 1950s, when we suddenly feared we were to be left in the wake of Soviet technological achievement," he said in an address to Florida educators. He said the trade problem underscored the need to reform the U.S. Educational system to improve economic performance. The Commerce Department reported last week that the nation's trade gap, calculated on a balance-of-payments basis, swelled to a record 38.37 billion dlrs in the fourth quarter, bringing the 1986 deficit to a record 147.71 billion dlrs. Volcker called on educators to stress the development of basic reading, writing and mathematics skills and urged them to help students adapt to the fast-changing economic climate. Volcker said the challenge was greatest in the education of low-income minority groups such as blacks and Hispanics.

The Reserve Bank said it would offer 400 mln dlrs of 13-week treasury notes and 100 mln of 26-week notes for tender next week The bank said it would not take up any stock at next week's auction.

Three geographically diverse droughts in Asia are being linked by some scientists to a reintensification of the complex and little-understood El Nino weather pattern, , a commercial weather forecasting service, said. Rice and wheat farmers in China, wheat and sugarcane growers in Australia and tea planters in Sri Lanka all face serious losses to their respective harvests unless rains arrive in time to break the droughts, offical reports, government officials and meteorologists said. Wen Wei Po, a Hong Kong daily with close Peking links, said the drought is the worst in over 20 years and some provinces have been without adequate rainfall for more than seven months. Rice planting is threatened in eight provinces, it added. Rainfall in the key farming provinces of Henan and Sichuan was 70 pct below average during February, the lowest figure for over 20 years, the paper said. The dry weather has cut stored water volumes by over 20 pct compared with last March and lowered the water levels of many rivers, it added. This has resulted in reduced hydro-electric power, causing shortages to industry and households. The upper reaches of the Yangtze are at their lowest levels in a century, causing many ships to run aground, Wen Wei Po said. Unusually high temperatures have also been reported across China, media reports said. The People's Daily said Sichuan has recorded temperatures three degrees Celsius higher than average since early February. The New China News Agency said the average December temperature in Harbin in the northeast was six degrees higher than last December and 14 degrees higher than December 1984. Severe drought is affecting about one-third of Sri Lanka and threatens to reduce the country's tea crop, Ministry of Plantation Industries officials told Reuters In Australia, concern is growing about below-average rainfall levels in parts of the sugarcane belt along the Queensland coast and in Western Australia's wheat belt, local Meteorological Bureau officials said. For many farmers and government officials the fear is that while the present low rainfall does not yet pose a major threat, the prospect of a dry autumn/winter season when the wheat crop is in its early stages certainly does, they added. Concern is heightened by the memory of the 1982/83 drought which devastated the wheat crop and coincided with the occurrence of the barely understood weather phenomenon known as El Nino, they said. Although meteorologists are cautious about linking the Asia-Pacific region's disrupted weather patterns to any single cause, El Nino's role is being closely studied, they said. Accu-Weather Inc, which specialises in providing data for agriculture and shipping interests, said each El Nino 'event' was unique. The El Nino does not always produce the same effects and the present occurrence is much less pronounced than the last major event in 1982/83, it said. El Nino, Spanish for "Christ Child" because it appears around Christmas, is formed by the action of warm air, bearing clouds and rain, shifting from the Indonesian archipelago to the coast of Peru, where it mingles with the cold waters associated with the Peru current and returns across the Pacific as the trade winds, meteorologists said. The winds, strengthened by El Nino's "pump" effect, raise the sea level off Australia and Indonesia, they said. When the winds drop, the ocean, seeking equilibrium, sends a surge of warmer water back across the Pacific where it collides with the cold seas off Peru, they said. One effect of this heat exchange is to deflect the rain-bearing clouds away from Australia and Indonesia into the Pacific, where they further disrupt other weather patterns. The prospects for an end to the droughts vary, Accu-Weather said. China, where the affected areas have received between 40 and 75 pct of normal rainfall, will have to wait for the May-September rains, it said. The May-September rains normally provide the drought-striken areas with 80 pct of annual rainfall. In Australia, areas of Queensland's coastal strip have received less than half the normal rainfall during the current wet season, but prospects for increased rains are diminishing as the rainy season draws to an end. In Sri Lanka, the drought has come when rainfall should be at its maximum for the year. The year's secondary rains usually occur between April and June, although it is not possible at this stage to forecast whether they will arrive as usual.

Two World Bank review teams are in the Philippines to assess government requests for funding for an expanded housing plan and an accelerated land reform program, bank officials said. They told Reuters the housing program loan request is for 100 mln to 150 mln dlrs. The government has said it will ask for another 500 mln dlr long-term loan from a World Bank-led consultative group of multilateral and bilateral aid donors to partially fund its land reform program. The officials said negotiations will start next month on another 150 mln dlr loan sought by Manila to carry out reforms in 14 major state-owned corporations. On Tuesday, the world bank approved two loans totalling 310 mln dlrs to help the country's economic recovery program. The bank was also studying Philippine proposals for loans to finance geothermal and education projects, sources said. World Bank sources said the bank's lending to the Philippines since 1957, including the latest loan, totalled 4.3 billion dlrs. The money has been spread out over more than 100 loans and about 1.2 billion dlrs remains undisbursed. The World Bank sources said the bank cancelled 450 mln dlrs in loan commitments to the Philippines during the last three years of President Ferdinand Marcos's rule. Marcos was toppled by a military-civilian revolt in February 1986. "The loans were cancelled because the projects slated for aid were not implemented properly," they said. The sources said the bulk of this week's loan would be used to rehabilitate the state-owned Development Bank of the Philippines (DBP) and the Philippine National Bank (PNB) which are saddled with seven billion dlrs of non-performing assets. "At least 300 mln dlrs of previously cancelled loans were supposed to go to the DBP," the World Bank sources said. "Over the past three years the bank's disbursement pipeline to the Philippines almost completely dried up." In 1986 alone, the two banks paid out 16 billion pesos in loan repayments, about 59 pct of the government's budget deficit of 27 billion pesos for the year, they said. Agreement on the latest loan was reached in principle last September when President Corazon Aquino visited the U.S. The sources said the loan was held up because of delays by the government in submitting essential documents. The World Bank sources said the request for land reform funding would be discussed at a meeting of the World Bank-led consultative group to be held alongside the April 27-29 annual meeting of the Asian Development Bank (ADB) in Osaka. The government has said the land reform plan aims to distribute 9.7 mln hectares of land to impoverished peasants. The sources said the Philippine government estimated the entire program would cost 60 billion pesos. "About 27 billion is long-term and will cover land transfer costs borne mainly by landowners," they said. "The landowners will be paid in 10-year bonds redeemable in ten instalments." The sources said the bulk of financing would cover development costs for the land program and help to bridge the gap between the 10-year spread of payments to landowners and a proposed 30-year loan repayment period for land buyers. "If you include interest, the total amount of external assistance needed annually should not exceed 200 mln dlrs," the sources said. "That volume of aid does not appear difficult." They said Japan, the World Bank and the ADB are expected to provide most of the financing while the Philippines' 12 bilateral aid donors would contribute the rest. The World Bank sources said lending to the Philippines is designed to support its balance of payments position while the government aims for a target of six to seven pct annual gross national product growth. "Brazil did not do this homework," one said. "They pushed ahead with a recovery program without ensuring backing for their balance of payments position. Manila is being more cautious and aims at soft borrowings which, it is hoped, will be outstripped by annual growth rates and eventually result in the country emerging from debt in five or six years." Philippine foreign debt is currently 27.8 billion dlrs.

The Dutch Central Bank said it has accepted bids totalling 4.00 billion guilders at tender this morning for new five-day special advances at 5.3 pct for the period March 20 to 25. Subscriptions to 250 mln guilders were fully met, amounts above 250 mln at 30 pct. The new facility replaces old 11-day advances totalling 6.5 billion guilders at the same rate.

Australia and New Zealand Banking Group Ltd is planning a 100 mln Australian dlr Euro-commercial paper program, arranger ANZ Securities Asia Ltd said. Under the program, notes in denominations of 100,000 dlrs will be issued with maturities ranging from seven to 365 days. The four dealers for the program are ANZ Securities Asia, Barclays Bank Plc, BT Asia Ltd and Morgan Guaranty Ltd. ANZ Securities said the program is aimed at investors in Asia, where there is strong potential for a big market in short-term Australian dlr paper.

The Bank of Spain suspended its daily money market assistance and offered to drain funds with three- and seven-day repurchase agreements at 12-1/2 pct, money market sources said. The sources said the measures were a further attempt to rein in money supply and were likely to force some institutions to scramble for funds before the 10-day accounting period for reserve requirements closes on Monday. The bank, which raised its rate for ordinary overnight assistance to 13-3/4 from 13-1/2 pct on Wednesday, opened its special borrowing facility for overnight funds at 14-1/2 pct. Money market sources said institutions in need of funds were likely to have to return to the bank tomorrow for further assistance. The bank rarely invites applications for ordinary assistance on a Saturday and the sources said it was more likely to open its special borrowing facility again.

President Reagan said the United States must do more to lessen its reliance on imported oil. President Reagan said during a nationally televised news conference that the rising U.S. reliance on foreign oil is a problem that the administration is studying. "We have to study this more," Reagan said. "This is why we increased the Strategic (Petroleum) Reserve, but we have to do more," he said. Reagan said his administration has already proposed deregulating natural gas and eliminating the windfall profits tax on crude oil production. However, he complained that Congress had not yet approved those measures. The Department of Energy earlier this week released a report that warned of rising U.S. reliance on foreign oil imports at a time when domestic production is declining. It suggested options for the administration to consider, but made no specific recommendations.

Shr loss 46 cts vs loss 51 cts Net loss 10.9 mln vs loss 9,782,818 Revs 20.1 mln vs 9,437,270 Avg shrs 23.5 mln vs 19.3 mln 1st half Shr loss 90 cts vs loss 1.11 dlrs Net loss 20.6 mln vs 21.4 mln Revs 38.9 mln vs 14.5 mln Avg shrs 22.8 mln vs 19.2 mln

Qtly div 30 cts vs 30 cts prior Pay April 16 Record April Three

The U.S. Senate has unanimously called for President Reagan immediately to force Japan to live up to a pledge to stop dumping its microchips and open its markets to U.S. Chipmakers. The Senate voted 93 to 0 to urge Reagan to impose penalties on Japanese high-technology products containing semiconductors in retaliation for what it sees as Japan's violations of the semiconductor pact. While the measure does not bind Reagan to any action, Senate leaders said its adoption would warn Japan stiffer legislation would be considered if the violations continue. "We want to send a message to Japan to let it know how the Senate feels about this matter," Senate Democratic Leader Robert Byrd told the Senate. Senate Finance Committee chairman Lloyd Bentsen told the Senate the measure was not aimed at retaliation but at correcting Japan's unfair trade practices. A key House trade lawmaker, Representative Richard Gephardt also announced he would seek to force Japan and other countries with huge trade surpluses to slash their surplus by 10 pct a year for three years.

Strong south-easterly winds were keeping many vessels trapped in the ice off the Finnish and Swedish coasts in one of the worst icy periods in the Baltic for many years, the Finnish Board of Navigation said. In Finland and Sweden up to 50 vessels were reported to be stuck in the ice, and even the largest of the assisting icebreakers were having difficulties in breaking through to the stranded ships, coastguard officials said. However, icy conditions in the southern Baltic at the Soviet oil ports of Ventspils and Klaipeda had eased, they said. Weather officials in neighbouring Sweden said the icy conditions in the Baltic were the worst for 30 years, with ships fighting a losing battle to keep moving. In the coastal stretches of the Gulf of Bothnia, which divides Finland and Sweden, the ice is up to one metre thick, with drifts and currents packing it into almost impenetrable walls three metres high, Swedish coastguard officials said. Weather forecasts say winds may ease during the weekend but a further drop in temperature could bring shipping to a standstill, the officials said.

of Brisbane said it has arranged for a leading Australian financial institution it did not name to provide Princeville Development Corp with the letter of credit required by the terms of Qintex's proposed acquisition of Princeville. The company also said through yesterday, when its tender offer for 3,300,000 Princeville shares was to have expired, it had received over seven mln Princeville shares in the bid, which has been extended until March 23 at 1800 EST. Qintex said the letter of credit is to insure payment of Princeville's contingent subordinated notes that would be distributed to shareholders of record on the date immediately following completion of the tender offer. The company said it believes the conditions of the commitment letter will be satisfactory to Princeville. It said Princeville had previously held talks with a financial institution on obtaining a letter of credit but was unable to reach mutually acceptable terms.

USACafes LP said its board declared a quarterly dividend of 20 cts per unit -- its first since converting to a limited partnership. The company, as USACafes Inc, had paid a quarterly dividend of nine cts per share. It said the restructuring as a partnership has substantially increased the cash available for distribution to unitholders, as it had predicted.

Illinois Regional Bancorp said it is evaluating whether to affiliate with a larger bank holding company or continue to remain independent. The 500 mln dlr-asset bank holding company said that in view of recent investor interest in suburban Chicago banks, it retained Merrill Lynch Capital markets to advise it on its alternatives. Last year, Illinois Regional had discussions with Milwaukee-based Marine Corp but no agreement was reached, a company spokesman said.

Morgan Guaranty Ltd, through a special financing subsidiary, said it is issuing the first repackaging of perpetual floating rate notes, consisting of a repackaging of an outstanding WestPac Banking Corp security. Trading in perpetual floating rate notes, about 17 billion dlrs of which are outstanding, has come to a virtual halt as prices plunged. Because the securities never mature, there is no way to price them properly unless there is a liquid two-way market for them. Investors have been stuck with billions of dollars of notes on their books that no one else will buy. Under terms of the offer, Morgan said it has set up a special-purpose financing company, Pacific Securities Co Ltd, which will issue two separate securities. The unit becomes the holder of 200 mln dlrs of Westpac floating rate notes. Morgan officials declined to disclose the level at which Pacific purchased the Westpac securities, although in late February, they were quoted at 85 against an issue price of par. Pacific Securities will issue two instruments. The first is a floating rate bond due March 29, 2002. The bond pays interest at 50 basis points over the London Interbank Offered Rate. While the initial Westpac issue offered investors only 15 basis points over LIBOR, Morgan Guaranty said WestPac has agreed with Pacific Securities that it will pay investors the remaining 35 basis points. Also, WestPac has agreed to redeem to floating rate notes after 15 years. The other portion of the security consists of a zero-coupon bond, also maturing at 2002, for which the investor pays 20 cents on the dollar. Morgan officials said that by 2002, the effective yield will be a 20 pct return. However, Morgan officials said, holders of the zero-coupon bonds will not be paid in cash when the securities mature. Instead, they will be paid in an equivalent amount of zero-coupon Westpac perpetual floating rate notes. As part of the agreement, Pacific Securities has agreed to place proceeds of the sale of the new securities on deposit at WestPac and earnings from the deposit will be used to subsidise the payment of the additional interest to investors. Also as part of the issue, there is an option for issuance of a 70 mln dlr tap to be offered the following year. The tap will consist of 70 mln dlrs in floating rate notes paying and an additional equivalent amount of zero coupon bonds also at a deep discount of 20 cents on the dollar. Fees consist of a one pct selling concession and 0.50 pct combined underwriting and management. Westpac itself has agreed to be co-lead manager of both tranches and two small syndicates are being formed, Morgan Guaranty said.

Denmark is issuing a 200 mln ECU eurobond due April 23, 1992 paying 7-1/4 pct and priced at 101-3/8 pct, lead manager Morgan Stanley International said. The bond is available in denominations of 1,000, 10,000 and 250,000 ECU and will be listed in Luxembourg. Fees comprise 1-1/4 pct selling concession and 5/8 pct management and underwriting. Payment date is April 23.

The Federal Reserve is expected to intervene in the government securities market to add temporary reserves indirectly via 1.5-2.0 billion dlrs of customer repurchase agreements, economists said. Federal funds, which averaged 6.06 pct yesterday, opened at 6-1/16 pct and remained there in early trading.

The stock of McDonald's Corp rose sharply this morning after analyst Daniel Lee of Drexel Burnham Lambert Inc reiterated his recommendation of the stock, traders said. McDonald's, an operator of fast food restaurants, rose 1-5/8 to 77-3/8. "Comparable store sales are up 5.6 pct in 1986 vs 1985," Lee said, "and the stock is trading below the market multiple." He said "not many companies have a consistent 15 pct annual earnings growth rate, return on equity above 20 pct, but trade at less than the market multiple." Analyst Lee said "the introduction of a new line of salads this spring, at about the time we are all trying to squeeze into bathing suits, should boost sales." He also noted that "the average McDonald's does about 1.369 mln dlrs in revenues a year. That compares with 1.1 mln dlrs a year for the average Burger King and 800,000 dlrs a year for the average Wendy's." Since it cost about the same to build a single store for any one of these chains, he said, "McDonald's can well justify their expansion." Lee expects McDonald's to earn 4.40 dlrs a share in 1986 and 5.15 dlrs in 1988. Last year it earned 3.72 dlrs a share.

Qtly div 20 cts vs 20 cts prior Pay May 20 Record May Four

First City Bancorporation's sale of 54 mln dlrs in oil loans to Prudential-Bache should significantly reduce its energy problems, but the bank's losses are still virtually guaranteed to continue, analysts said. The package of energy loans was sold at book value, so First City did not to show a gain or loss, said bank spokesman James Day. He added it was possible First City would sell more of the bank's remaining 1.4 billion dlrs in oil-related loans to raise cash. The loans had been made by First City to oil producers and to oilfield service and supply companies. Day said some had already been classified as nonperforming, or charged off as a loss, but he could not identify how many were included in those categories. The loans were purchased by Prudential Bache's Energy Growth Fund, a limited partnership created last month with 90 mln dlrs in funding to invest in oil and gas properties. First City, the big Texas bank hit hardest by the downturn in oil prices, lost a record 402 mln dlrs in fiscal year 1986 and has said it is seeking a merger partner or some other capital assistance. The Houston-based bank's nonperforming assets totaled 897.1 mln dlrs at yearend, up from 563.1 mln dlrs at the end of 1985 Analysts have said no buyer is likely to be interested in the troubled bank unless government assistance is available. "Their problems are not just limited to energy. They have a substantial portfolio in real estate. This sale in and of itself won't make the company look better to a potential buyer," said Ray Archibold, a banking analyst with McCarthy, Crisanti and Maffei Inc. "It does reduce the bank's exposure in energy loans and 54 mln dlrs is a substantial amount," Archibold said, "but the deal represents only about four pct of their energy loans." Of First City's total loan portfolio of 9.9 mln dlrs, about 14 pct or 1.4 billion dlrs were made to energy producers or suppliers, analysts said. Its record losses have been caused by its past status as one of the nation's top lenders to oil and gas producers and suppliers during the boom days of the late 1970s and early 1980s. First City said about half of the loans sold to Prudential came from its Energy Finance Co., an entity formed in 1982 to loan money to "more venturesome" oil borrowers that promised a higher potential return. The other half of the loans were from First City's lead bank in Houston. Chris Kotowski, an analyst with Oppenheimer and Co., said the sale of the package of energy loans was the first encouraging news from First City in months. "It's not going to solve all of First City's problems but it's a good transaction for them. It may be possible for them to sell additional loans," Kotowski said. "Prudential can fund these things more cheaply than First City and there's an incentive to invest in troubled energy companies right now as values are depressed" In a statement, First City chairman J.A. Elkins said the bank's strategy was to reduce the proportion of energy loans to total loans. "This move, which we believe is the first transaction of its kind, helps us further, and we were able to make it without suffering a loss."

Standard and Poor's Corp said it downgraded to CCC-plus from B-minus Hyponex Corp's 30 mln dlrs of subordinated debt. It assigned a CCC-plus rating to Hyponex's 150 mln dlrs of senior subordinated debentures due 1999 that were priced Wednesday for offering. The implied senior debt rating is B. S and P cited an increase in debt leverage to 86 pct of capitalization from 56 pct. While the company's operating record has been successful, S and P said the action also reflected uncertainties and risks associated with management's new business and investment strategies.

Duff and Phelps said it lowered its rating on Delmarva Power and Light Co first mortgage bonds to DP-3 (middle AA) from DP-2 (high AA) and on preferred stock to DP-4 (low AA) from DP-3, affecting approximately 646 mln dlrs in debt securities. The rating change reflects expectations of lower fixed charge coverages and lower internal funding over the next several years, Duff and Phelps said. An interim cut in electric rates in Delaware and Maryland to reflect a lower allowed return on equity was made in the second half of 1986. A final decision is expected in April.

The European Community Commission has charged the United States with breaking international trade rules by excluding Dutch-made fibres from the U.S. Market and said it would take the issue to the world trade body GATT. In the latest of a series of trade disputes with Washington, the executive authority alleged that a section of the U.S. Tariff Act was incompatible with the GATT (General Agreement on Tariffs and Trade) because it discriminated against imported products in favour of domestically-produced goods. The Commission said it would ask Geneva-based GATT to rule on whether the section in question, which officials said had proved a barrier to many EC exporters, conformed to its rules. Commission officials did not rule out retaliatory measures if, after a GATT decision against it, Washington failed to bring the disputed section into line with international rules. The executive's decision to go to GATT follows a complaint to it by the Dutch company Akzo , whose "aramid" synthetic fibres have been banned from the U.S. Market because of charges by the U.S. Firm that the fibres violate the American company's patents. Akzo alleged that the ban, imposed by the U.S. International Trade Commission (ITC), was discriminatory and incompatible with GATT provisions. The dispute centres on the fact that section 337 of the U.S. Tariff Act gives the ITC jurisdiction over imported products. The EC Commission charged that EC producers did not have the same possibilities for defending themselves before the ITC as they would have in a normal U.S. Court. "Consequently the procedure followed...Is less favourable than that which takes places in normal courts of law for goods produced in the United States," it said in a statement.

Moody's Investors Service Inc said it downgraded 1.6 billion dlrs of debt of Standard Chartered PLC and its units, Standard Chartered Bank and Union Bancorp. Moody's cited concerns over the asset quality of Standard Chartered Bank. Cut were the parent's junior subordinated debt to A-3 from A-2 and Standard Chartered Bank's long-term deposit rating to Aa-3 from Aa-2. Moody's lowered Union Bancorp's senior debt and preferred stock to A-1 from Aa-3, subordinated debt to A-2 from A-1 and long-term deposits to A-1 from Aa-3. Union's commercial paper and short-term deposits were unchanged. Also left unchanged were Standard Chartered Bank's ratings for short-term deposits. Although Moody's cited Standard Chartered Bank's long-standing position in a number of regional markets and improved risk control procedures, it pointed out that the bank still lacks the stabilizing effect of a more significant presence in the U.K. market. The rating agency reiterated that it is concerned about the relative levels of risk in the bank's widely dispersed asset portfolio.

Waste Management Inc said it amended its offer to buy the outstanding shares of ChemLawn Corp to 35 dlrs a share. On Thursday the company said it was prepared to bid 33 dlrs a share, up from its original 27 dlrs a share offer. As a result of the price increase, made through Waste Management's wholly owned subsidiary, WMX Acquisition Corp, the offer has been extended and the withdrawal rights will not expire at midnight EDT April Two, unless further extended. Waste Management also said it amended its offer to provide that the tender offer price will not be reduced by ChemLawn's 10 cts a share dividend payable to holders of record April 1, 1987.

The Agriculture Department is not considering any major changes in its pricing system for posted county prices, an Agriculture Department offical said. "We do not have current plans to make any major adjustments or changes in our pricing," said Bob Sindt, USDA assistant deputy administrator for commodity operations. U.S. grain traders and merchandisers said earlier this week USDA might act soon to reduce the cash corn price premium at the Gulf versus interior price levels by dropping ASCS posted prices to encourage interior PIK and roll movement. But Sindt denied USDA is planning any such changes. "If people are suggesting that we are going to make wholesale changes in pricing, we are not considering this," he said. Sindt, however, did not rule out the possiblity of implementing more minor changes in its pricing system. "We are continually monitoring the whole nationwide structure to maintain its accuracy," he said. "If we become convinced that we need to make a change, then appropriate adjustments will be made." Sindt acknowledged that concern has been voiced that USDA's price differentials between the New Orleans Gulf and interior markets are not accurate because of higher than normal barge freight rates. He said commodity operations deputy administrator Ralph Klopfenstein is currently in the midwest on a speaking tour and will meet with ASCS oficials in Kansas City next week. Sindt said a number of issues will be discussed at that meeting, including the current concern over the gulf corn premiums. He defended the USDA differentials, saying that these price margins reflect an average of prices throughout the year and that seasonal factors will normally cause prices to increase or decrease. The USDA official also said that only those counties that use the Gulf to price grain are being currently affected by the high barge freight tariffs and increased gulf prices. When asked if the USDA emergency storage program which allows grain to be stored in barges was taking up barge space and accounting for the higher freight rates, Sindt discounted the idea. He said USDA has grain left in only about 250 barges and that, under provisions of the program, these all have to be emptied by the end of March.

Shr 52 cts vs 51 cts Net 16.5 mln vs 16.2 mln Revs 870.2 mln vs 800.7 mln Year Shr 1.48 dlrs vs 1.29 dlrs Net 47.3 mln vs 41.0 mln Revs 3.53 billion vs 3.10 billion Avg shrs 31,867,658 vs 31,831,050

ended February Shr 69 cts vs 66 cts Net 37.7 mln vs 34.9 mln Revs 255.8 mln vs 288.8 mln Avg shrs 54.7 mln vs 53.2 mln 12 mths ended Feb Shr 3.23 dlrs vs 3.17 dlrs Net 174.8 mln vs 166.3 mln Revs 1.4 billion vs 1.5 billion Avg shrs 54.1 mln vs 52.4 mln

Shr 23 cts vs nine cts Net 5,700,000 vs 1,920,000 Revs 35.5 mln vs 19.8 mln 1st half Shr 41 cts vs 17 cts Net 10.0 mln vs 3,100,000 Revs 69.3 mln vs 36.7 mln NOTE: Share adjusted for two-for-one stock split approved in December 1986. Net includes tax credits of 2,970,000 dlrs vs 980,000 dlrs in quarter and 5,210,000 dlrs vs 1,590,000 dlrs in half. Backlog 230 mln dlrs vs 147 mln dlrs at start of fiscal year and 148 mln dlrs at the end of the first quarter.

Endotronics Inc, halted at 1-3/4 on NASDAQ pending release of a news report, on Monday said it was expecting "substantial losses" for the quarter ending March 31, 1987 and the fiscal year ending Sept 30, 1987. The company had cited a dispute over payment by Yamaha Inc, one of its Japanese distributors, over payment of a promissory note for 3,686,000 dlrs in overdue accounts.

Qtly div 22 cts vs 22 cts prior Pay April 10 Record March 30

Shr 53 cts vs 61 cts Net 9,909,000 vs 11,489,000 Revs 185.9 mln vs 161.5 mln Year Shr 1.20 dlrs vs 1.37 dlrs Net 22,522,000 vs 25,667,000 Revs 588.5 mln vs 521.7 mln

Banco di Roma (London branch) has arranged a 200 mln dlr nominal Euro-commercial paper program, Swiss Bank Corporation International Ltd said as sold dealer. The borrower will be able to issue paper with maturities of seven to 365 days in other avialable currencies, such as European Currency Units. However, it could not issue sterling commercial paper because Bank of England rules prohibit an issuer of certificates of deposit to issue paper denominated in stg. Banco di Roma (London branch) has a certificate of deposit program in the market under which the securities are traded. The program will be aimed at end investor placement.

General Public Utilities Corp said the water-clarity problem delaying the removal of fuel from the damaged Unit Two of the Three Mile Island nuclear power plant appears to have been resolved. The company said the slower than expected removal of the fuel, which has been primarily due to the water-clarity problems, is now expected to extend fuel removal into 1988. A spokesman said the company had previously expected this to be completed by the end of 1987 and has not estimated how far into 1988 the process will extend. It still expects to complete the entire clean-up by the end of 1988, he added. GPU said its auditors, Coopers and Lybrand, again qualified its opinion of GPU's financial statements, adding the recovery of TMI-2 decommissioning costs to the unresolved issues leading to the qualified opinion. GPU said its operating subsidiaries will seek to recover the costs of decommissioning TMI-2 in future rate proceedings. As in past years, the qualified opinion continues to list other uncertainties associated with the accident, which damaged TMI-2 -- the recovery of cleanup costs and any payments for damages that might exceed available insurance proceeds.

Qtly div six cts vs six cts prior Pay April 10 Record March 31

Bally Manufacturing Corp's proposed public offering of 24 pct of its Health and Tennis Corp unit is seen as the first step towards the sale of the entire unit, analysts said. "In the longer-term horizon, Bally wants to concentrate on its gaming businesses," said analyst Dennis Forst of Seidler Amdec Securities Inc. Last week, Bally said it was considering the sale of another non-casino unit, its Six Flags amusement park unit, which analysts said could fetch about 300 mln dlrs. Bally spokesman Bill Peltier said "the company currently has no hard plans to the sell any more of the health club company, but in the long term we'll wait and see how the offering goes." Once Bally's biggest revenue producer, the health club unit had 1986 operating income of 60 mln dlrs on revenues of 456.2 mln dlrs, 28 pct of Bally's revenues. Analysts estimate the unit could be sold for for 300-500 mln dlrs. Analysts said Bally's decision to offer shares in the unit could be the first step to selling it. "It would seem obvious that an offering would decrease the health club unit's debt, increase its cash flow and operating income, making it an attractive buy to a third party," Steven Eisenberg of Bear Stearns said. On Monday, Bally said it filed with the Securities and Exchange Commission for an initial offering of 24 pct, or 5.8 mln shares, of the unit's common stock at 13-15 dlrs a share. About half the proceeds, 40 mln dlrs, will be used to reduce parent Bally Manufacturing's debt which has swelled to 1.6 billion dlrs due to recent hotel acquisitions and the purchase of shares from Donald Trump who had threatened a hostile takeover, according to Bally treasurer Paul Johnson. Remaining proceeds from the stock offering and from a separate offering of 50 mln dlrs of 20-year convertible subordinated debt would be used to repay about 75 mln dlrs of short term senior bank debt of the health chain unit, a Bally spokesperson said. Analysts said Bally's health club unit's profits have remained strong, but are skeptical about the industry's long range prospects. "The fitness club industry, over the last 10 years, has grown tremendously, but the question is whether its a fad or a permanent part of our lifestyle," said Eisenberg of Bear Stearns. Analysts said fitness clubs will likely flourish if the public stays at its peak of health consciousness, but that overcapacity is likely to occur as consumer enthusiasm wanes. In addition, "the returns in the fitness club industry are just not as high as they are in the gaming industry," said one analyst. There are about 6,500 fitness clubs in the U.S., excluding clubs run by not-for-profit organizations, according to the Association of Physical Fitness Centers who estimates it to be an 8.0-billion-dlr-a-year industry. Asked if anyone has offered to buy the unit, which is the nation's largest health club chain, Peltier said, "no one has the money to offer to buy it." "The fitness industry is a fragmented industry with no leader and there is a great opportunity for growth through acquisition and then standardization," said Wayne LaChapelle, chief financial officer of Livingwell INc , the nation's second largest fitness chain operator whih LaChapelle said Livingwell is always interested in acquisition opportunities but "could not afford an acquisition the size of Bally at this time."

Oper shr loss 49 cts vs loss 10 cts Oper net loss 3,014,000 vs loss 656,000 Revs 22.7 mln vs 23.6 mln 12 mths Oper shr loss 19 cts vs profit 40 cts Oper net loss 1,142,000 vs profit 2,476,000 Revs 93.3 mln vs 99.0 mln NOTE: qtr 1986 and prior qtr excludes loss discontinued operations 2,441,000 and 4,078,000, respectively. Year 1986 and prior excludes loss discontinued operations 3,509,000 and 5,278,000, respectively. qtr and year 1986 excludes tax loss 1,557,000 and loss 151,000, respectively. qtr and year prior excludes tax gain 833,000 and 3,346,000, respectively.

Qtly div 5.5 cts vs 5.5 cts prior Pay April 27 Record April one.

The Commodity Credit Corporation, CCC, has accepted a bid for an export bonus to cover a sale of 6,000 tonnes of semolina to Egypt, the U.S. Agriculture Department said. The department said the semolina is for shipment April-October, 1987, and the bonus awarded was 224.87 dlrs per tonne. The bonus was made to International Multifoods Corp and will paid to the exporter in the form of commodities from CCC stocks, the department said. An additional 7,000 tonnes of semolina are still available to Egypt under the Export Enhancement Program initiative announced August 1, 1986, it said.

VMS Mortgage Investors LP II said it raised its first quarter 1987 cash dividend to 21 cts from 20 cts the prior quarter payable May 14, 1987, to shareholders of record April One, 1987.

Regency Cruises Inc said it agreed to sell a 40 pct interest in the corporation that owns the M/V Regent Sea cruise ship for 2.1 mln dlrs to Monmouth International SA, which owns the other 60 pct. The company said it also extended a 1.7 mln dlr secured loan to Monmouth to finance completion of the renovation of another vessel, the M/V Regent Star, which is scheduled to begin operating in late June. Regency Cruises, which operates both ships, received a five-year extension, to November 1995, to the Regent Sea's original charter agreement, it said. It also received a reduction, to 600,000 dlrs from 1.6 mln dlrs, of its total charter guarantee for the Regent Sea and Regent Star. Regency also reported 1986 earnings of 5,695,000 dlrs or 37 cts a share on revenues of 40.9 mln dlrs. It began operations in November 1985. In addition, the company said its bank, Irving Bank Corp , agreed to waive a one mln dlr counter guarantee for the bank to provide a 2.6 mln dlrs guarantee for Regency's Federal Maritime Commission bond. The company said after April 3 the exercise price of its warrants will return to two dlrs until they expire April 21. The price had been reduced to 1.50 dlrs for the three weeks ending April 3.

the U.S. Agriculture Department is proposing to permit coverage of freight cost and marine and war risk insurance for sales of all agricultural commodities sold on credit terms under the Commodity Credit Corporation's, CCC, credit guarantee programs. The proposal only applies to commodities that are sold by exporters on a cost and freight, C and F, or cost, insurance and freight, CIF, basis, since these costs would be included in the exporter's sale price to the foreign buyer, it said. Under current programs, freight costs can be covered only for export sales of U.S. breeding animals. It asked for comments on the proposal by April 20.

Goody Products Inc said it entered into an agreement to sell its J. and P.B. Myers packaging business to Union Camp Corp to focus on its consumer products and automated distribution system businesses. Terms of the agreement were not disclosed.

Emerald Homes L.P. said its general partners declared an initial 30-ct per unit distribution payable May 15 to unitholders of record March 31. Emerald made its initial public offering February 6.

LAC Minerals Ltd said it will suspend underground mining and exploration at its Lake Shore Mine at Kirkland Lake, Ontario, on April 30, pending results of a surface exploration drilling program. LAC said it does not expect the decision to affect earnings, but 44 employees will be affected. The company said it has completed mining the crown pillar which has produced 71,000 ounces of gold since 1983. In 1986, the mine produced 10,600 ounces. LAC said it will continue surface drilling in 1987 to determine if further underground exploration work is warranted.

The St. Lawrence Seaway, set to reopen March 31 after the winter, faces another tough year because of depressed traffic levels and the possibility of the first strike in 20 years on the Great Lakes, seaway officials said. Depressed grain exports, rising costs, and competing modes of transportation are all expected to result in only a marginal increase over last year's traffic levels -- and revenues -- on the 2,300 mile waterway, officials said. In 1986, a season that ran from April 3 to December 27, the seaway moved 37.6 mln metric tons of freight between Montreal and Lake Ontario and 41.6 mln tons on the Welland Canal, linking Lake Erie and Lake Ontario. By comparison, in 1985 about 37 mln tons of cargo traveled through the Montreal-Lake Ontario section and 42 mln through the eight-lock canal. The waterway is expected to lose 9-10 mln Canadian dlrs this year, about the same as the estimated deficit for fiscal 1986-87 ending March 31, said William Blair, an executive member of Canada's St Lawrence Seaway Authority. The seaway moves about one-half of Canada's exported grain. Those exports of the single most important commodity carried on the waterway have been depressed by world surpluses. The Seafarers' International Union, which represents about 2,300 workers on the Great Lakes and the ocean coasts, has said it will likely go on strike this spring to protest employers' demands for wage rollbacks and other concessions. "It's 99.9 pct (certain)--I guarantee you a strike," Roman Gralewicz, head of the Seafarers' Canadian branch, has said. The Canadian government has called in a labor conciliator to try to hammer out a contract agreement between the two sides. The seaway authority said a walkout tying up ships on the Great Lakes would badly hurt traffic. "We haven't had a strike on the seaway for years...a prolonged strike would have a disasterous effect," Seaway Authority spokeswoman Gay Hemsley said. "These are the heaviest contract talks in the history of the St Lawrence Seaway," George Miller, vice-president of the Canadian Lake Carriers Association, an association of major Canadian shipping companies, said recently. The workers' current contract expires May 31. The association said it is asking for a five per cent cut in wages for the next three years, reduced crew levels and the power to restructure crew dispatching. The association said its members recorded about a 6 mln dlrs (U.S.) loss in each of 1985 and 1986 due to lower traffic and freight rates and increasing competition. The seaway said 1985 was its worst year in two decades. Hemsley said the seaway authority plans to raise tolls on the Welland Canal by eight pct this year, compared to last year's 15 pct rise, while maintaining a freeze on tolls throughout the rest of the waterway. Canada is responsible for 13 of the seaway's 15 locks and about 85 pct of its revenues and maintenance costs. "We may see and hope for a steady upward climb...but we won't see a major increase for a number of years," Hemsley said. A Canada-U.S. delegation to promote the seaway to shippers in Western Europe should result in some increased traffic this season but the full benefits won't be felt for several years, Blair said.

Oper shr loss 12 cts vs profit four cts Oper loss 1,069,000 vs profit 339,000 Revs 12.8 mln vs 10.9 mln Note: 1986 shr and net exclude extraordinary gain of 382,000 dlrs or four cts share. 1985 shr and net exclude extraordinary gain of 183,000 dlrs or two cts share

Oper shr loss five cts vs loss six cts Oper net loss 157,688 vs loss 96,573 Revs 1,094,331 vs 1,378,973 Avg shrs 3,315,654 vs 1,661,023 Six mths Oper shr loss seven cts vs loss 24 cts Oper net loss 198,555 vs loss 394,589 Net 2,243,377 vs 2,440,850 Avg shrs 2,796,848 vs 1,637,592 NOTE: Current year 2nd qtr and six mths excludes a loss 10,767 dlrs for discontinued operations. Prior year 2nd qtr and six mths excludes a loss of 54,686 dlrs and 112,565 dlrs for discontinued operations. Full name of company is Marcom Telecommunications Inc.

Wisconsin Electric Power Co said it began a public offering of 700,000 shares of serial preferred stock, 6-3/4 pct series, 100 dlrs par value, at a price of 100 dlrs per share. The shares are being offered pursuant to a shelf registration covering 700,000 sahres of serial preferred stock which the company filed on February 19, 1987. Proceeds will be used to redeem outstanding preferred stock or for repayment of short-term indebtedness.

American Express Co's board of directors Monday will discuss the company's arrangement to sell 13 pct of Shearson Lehman Brothers Inc to Nippon Life Insurance Co, a company spokesman said. The spokesman would not say whether the board is planning to vote on the understanding between American Express and Nippon Life. The Shearson stake is to be sold for 530 mln dlrs, American Express has said. The spokesman also would not comment on speculation that the board was to discuss a sale of securities to the public. Monday's board meeting is a regular monthly meeting. The plan to sell part of Shearson to Nippon Life must be approved by the American Express board and Japan's Ministry of Finance. Earlier, American Express and Shearson said they were subpoenaed by the Securities and Exchange Commission. American Express said it was subpoenaed for documents pertaining to securities transactions of American Express and Fireman's Fund. Shearson was subpoenaed for documents related to transactions with Jefferies and Co and others. The American Express spokesman said he could not comment on whether any officials of the firm were subpoenaed.

Shr loss nine cts vs profit nine cts Net loss 478,000 vs profit 371,000 Revs 3.4 mln vs 2.6 mln Six months Net loss 466,000 vs profit 685,000 Revs 6.2 mln vs 5.0 mln NOTE:1987 net loss includes writeoff of deferred start up costs totaling 490,000 dlrs.

of China and of Hong Kong signed an agreement to borrow five billion yen from an international syndicate of banks led by the Bank of China, the New China News Agency said. It said the two firms will use the money to construct the Olympic Hotel, with 14 storeys and 380 rooms, near Peking's largest indoor stadium, to cater for participants at international competitions and tourists. Construction of the hotel is under way and due to be completed by June 1988, the agency added but gave no more details.

Provisional net profit 55 billion lire vs 48 billion Turnover 3,750 billion vs 3,369 billion. NOTE - Official results for Alitalia, Italy's national airline which is controlled by the state industrial holding company (Istituto per la Ricostruzione Industriale -IRI), are expected to be announced at an annual shareholders meeting in April.

Iran said reports that it intended to threaten shipping in the Gulf were baseless, and warned the U.S. And other countries not to interfere in the region. Tehran radio, monitored by the BBC, quoted a Foreign Ministry spokesman as saying any attempt at interference would be met by "a strong response from Iran and other Moslems in the world." U.S. Defence Secretary Caspar Weinberger, in remarks apparently unrelated to the broadcast, said the U.S. Would do whatever was necessary to keep shipping lanes open in the face of new Iranian anti-ship missiles in the Gulf. The U.S. State Department said two days ago Tehran had been told of U.S. Concern that Iranian anti-ship missiles posed a threat to the free flow of oil from the Gulf. U.S. Officials have said Iran has new Chinese-made anti-ship "Silkworm" missiles, which pose a greater threat to merchant ships than missiles used before. The Iranian spokesman said the reports that Iran intended to attack ships were "misleading propaganda." He said Iraq's President Saddam Hussein was the main cause of tension in the Gulf and said Iran would continue to use "all its legitimate means to stem the cause of tension." Weinberger said in a television interview in the U.S. "We are fully prepared to do what's necessary to keep the shipping going and keep the freedom of navigation available in that very vital waterway." "We aren't going into any disclosures or discussions of what might happen, but we are certainly very sympathetic to and listening carefully to any suggestions for our assistance in keeping navigation free in that area," he said. Weinberger said U.S warship movements in the Gulf area were not unusual. A U.S. Navy battle group led by the aircraft carrier Kitty Hawk is currently in the northern Arabian Sea. The Iranian spokesman was quoted by Tehran radio as saying the U.S. Was trying to build up its military presence in the region.

Financial holding company Nord-Est is issuing a 392.9 mln franc, 6.25 pct, five year domestic bond convertible into shares, an announcement in the Official Bulletin (BALO) said. From March 26 to April 8, subscription for 1.63 mln of the 1.64 mln bonds of 240 francs nominal each will be reserved for shareholders holding 13.09 mln shares of 50 francs nominal, representing the company's capital of 654.85 mln francs, on the basis of one bond for eight shares held. The bonds will be exchangeable from July 1 for shares on a one for one basis.

Indonesia's non-oil and gas exports fell to 5.79 billion dlrs in calendar 1986 from 5.98 billion in 1985, according to Bank Indonesia figures. Coffee exports rose to 753 mln dlrs from 580 mln in 1985, but rubber shipments fell to 625 mln from 720 mln and tin to 180.6 mln from 246 mln, weekly central bank figures show. Indonesia hopes to boost its non-oil exports to make up for oil revenue lost because of lower prices. But the lower value of commodities such as timber, rubber, palm oil and tea on world markets has prevented this, despite a 31 pct devaluation of the rupiah against the dollar in September.

The Indian State Trading Corporation (STC) bought four cargoes of rbd palm olein totalling 24,000 tonnes at its vegetable oil import tender last week, traders said. Market reports on Friday said the STC had booked two cargoes. The business comprised three 6,000 tonne cargoes for June at 346 dlrs and 6,000 tonnes for July at 340 dlrs per tonne cif. It also secured a 20,000 tonne cargo of optional origin rapeseed oil for May 15/Jun 15 shipment at 321 dlrs cif.

French sugar group Beghin-Say, which is 49.6 pct owned by Italy's Gruppo Ferruzzi, is to raise its capital to 703 mln francs from 527 mln through a three-for-one issue of shares and investment certificates to finance expansion, president Jean-Marc Vernes told analysts. For the first stage Beghin-Say will issue some 2.05 mln new 65 franc shares at 500 francs to increase capital to 660 mln francs. The share currently trades at 734 francs. Then 658,000 new 65 franc investment certificates will be issued at 400 francs, raising capital to 703 mln francs. The capital increase will bring the group around 1.2 billion francs in new funds to finance its expansion plans. These include the possible acquisition of the Corn Products maize starch plant at Haubourdin in northern France, Vernes said. Ferruzzi is one of several groups bidding to buy all of Corn Products' installations in Europe. Apart from the French plant, these include three factories in each of Italy and West Germany, two in Britain and Spain and one in the Netherlands and Denmark. Corn Products has put a 650 mln dlr price tag on the installations, and Beghin-Say estimates that acquisition of the Haubourdin plant would cost between 80 and 100 mln dlrs, Vernes said. If this bid fails, Beghin-Say would consider acquiring and developing two other French plants, either in the maize or wheat starch sector. Beghin-Say is also planning to finance European expansion for its Kaysersberg subsidiary, another major reason for its capital increase. Kaysersberg, which was transformed from a division of Beghin-Say into a fully-fledged chemical subsidiary last year, has been holding talks with other European companies on possible accords, Vernes said. He added the company could be introduced onto the Paris Bourse in the near future.

The Bank of England said it revised down its forecast of the deficit in the money market today to 750 mln stg from 800 mln.

Iran said reports that it intended to threaten shipping in the Gulf were baseless, and warned the U.S. And other countries not to interfere in the region. Tehran radio, monitored by the BBC, quoted a Foreign Ministry spokesman as saying any attempt at interference would be met by "a strong response from Iran and other Moslems in the world." U.S. Defence Secretary Caspar Weinberger, in remarks apparently unrelated to the broadcast, said the U.S. Would do whatever was necessary to keep shipping lanes open in the face of new Iranian anti-ship missiles in the Gulf. The U.S. State Department said two days ago Tehran had been told of U.S. Concern that Iranian anti-ship missiles posed a threat to the free flow of oil from the Gulf. U.S. Officials have said Iran has new Chinese-made anti-ship "Silkworm" missiles, which pose a greater threat to merchant ships than missiles used before. The Iranian spokesman said the reports that Iran intended to attack ships were "misleading propaganda." He said Iraq's President Saddam Hussein was the main cause of tension in the Gulf and said Iran would continue to use "all its legitimate means to stem the cause of tension." Weinberger said in a television interview in the U.S. "We are fully prepared to do what's necessary to keep the shipping going and keep the freedom of navigation available in that very vital waterway." "We aren't going into any disclosures or discussions of what might happen, but we are certainly very sympathetic to and listening carefully to any suggestions for our assistance in keeping navigation free in that area," he said. Weinberger said U.S warship movements in the Gulf area were not unusual. A U.S. Navy battle group led by the aircraft carrier Kitty Hawk is currently in the northern Arabian Sea. The Iranian spokesman was quoted by Tehran radio as saying the U.S. Was trying to build up its military presence in the region.

French industrial production fell a seasonally adjusted 1.98 pct in January after revised unchanged output in December, the National Statistics Institute (INSEE) said. The figure, which excludes construction and public works, put the January index, base 1980, at 99 after 101 in December. January output was 1.98 pct down on January 1986. INSEE, which from January changed its base year to 1980 from 1970, originally had December output down 2.2 pct on November, using the old base year. INSEE said production in January was affected by rail strikes and severely cold weather. It said output of gas and electricity was very high but activity slowed on construction sites, in quarries and in certain base industries.

Brazil wants to resume interest payments on its medium- and long-term foreign debt as soon as possible and is willing to discuss ways of softening the impact of the payments suspension on bank earnings, central bank governor Francisco Gros said. Gros, speaking to reporters yesterday after his first meeting with Brazil's bank advisory committee since he was appointed last month, also promised a clear statement of Brazil's economic policy would be made in the next few days. But bankers who attended the meeting with Gros said it was inconclusive. The bankers also expressed disappointment Gros could not give assurances as to when interest payments on the 68 billion dlrs of medium- and long-term debt would restart. "It was all very tentative. You can't expect to get very far at the first meeting," one banker said. The meeting took place on the eve of the annual meeting here of the Inter-American Development Bank. The most urgent item on yesterday's agenda was the need for a legal rollover of some 16 billion dlrs in trade and interbank credit lines extended to Brazilian banks which expire at the end of March. Brazil has already frozen the lines to ensure it has enough credit to finance its day-to-day trade and commerce, but needs to request a formal extension of the commitments to head off possible lawsuits from disgruntled creditors. The issue is whether the 14-bank steering committee will endorse Brazil's request to the 700 creditor banks worldwide or simply relay it without comment. This delicate question was not resolved at yesterday's meeting, but lawyers from both sides will try to draft suitable language for a telex by midweek, Gros and the bankers said. Gros said he will also formally ask the banks for a 90-day rollover of some 9.6 billion dlrs of debt which originally matured in 1986 and is now due to be repaid on April 15. Bankers said the request is a legal nicety since the money is subject to the moratorium. Once interest on Brazil's debts becomes more than 90 days overdue, U.S. And Canadian banks must put the loans on non-performing basis and may book payments only as and when they are received instead of accruing the interest in advance. Citicorp has estimated its profits for the first quarter would be cut by 50 mln dlrs if it put Brazil on a cash basis. Other U.S. Banks have also warned of earnings setbacks. Gros said he wished the 90-day rule was more flexible and said he would be willing to sit down with the banks to see if there was a way round the problem. He did not elaborate. But, asked whether a bridge loan might be arranged to pay the interest, he said, "It could happen." Bankers said this possibility had not been raised at the committee meeting and dismissed it as inconsistent with Brazil's determination to find a long-term solution to the problem of servicing its 110 billion dlr foreign debt. Gros himself said pushing the problem away for 90 days at a time is not very useful. Only if Brazil has access to new loans can it grow, export and pay its debts over the longer term. "If the flow of funds dries up, a country like Brazil can't meet all its obligations," he said. Gros defended Brazil's recent economic record, noting inflation slowed in February, the trade surplus rose and the public sector budget was in operational surplus. But he said there was a need to spell out government policy, especially on prices. "It's necessary to clarify policy for internal and external reasons," he said, but declined to say what economic measures might be introduced. Once policy is in place, Gros said financing talks with the banks are likely to be tough and protracted, a sentiment echoed by the country's creditors.

The Iranian steam tanker Avaj, 316,379 tonnes dw, was attacked and hit at 1715 hours on March 21, Lloyds Shipping Intelligence service reported. One person was killed. The tanker is owned by the National Iranian Tanker Co.

Uganda's state-run Coffee Marketing Board (CMB) has been suffering a cash crisis for the past two months due to a bottleneck in export shipments and administrative delays in handling payments, trade sources said. The CMB needs between 10 and 15 billion shillings (the equivalent of seven to 10 mln dlrs) to pay farmers and processors for coffee already delivered, but its present export revenue is insufficient to cover such expenditure, they said. The board's cash crisis has serious implications for the economy as a whole, since coffee accounts for 95 pct of Uganda's total exports. The CMB's financial difficulties first started in January following delays in rail-freighting export consignments of coffee to the ports of Mombasa, Dar es Salaam and Tanga. These delays were caused by a shortage of railway wagons in Uganda and bottlenecks on the ferries which transport Ugandan wagons across Lake Victoria to link up with the Kenyan and Tanzanian railway systems, the sources said Marketing Minister John Sebaana-Kizito publicly acknowledged on February 19 that the CMB had run up arrears to local suppliers as a result of the shortage of transport for moving exports. Sebaana-Kizito said at the time that the payments squeeze would be resolved in two weeks. However, an accident to the rail ferry which plies between the Ugandan lake port of Jinja and Kisumu in Kenya put it out of action between February 21 and March 15, causing fresh delays in cargo movements. Coffee exports are especially sensitive to the disruption of rail transport since president Yoweri Museveni has banned their haulage by road in a drive to save transport costs. Transport difficulties meant that by early February the CMB was holding unsold coffee stocks of around 750,000 bags. These stocks were equivalent to one quarter of Uganda's expected three mln 60-kilo bag 1986/87 (October-September) crop, the sources said. According to the sources, the board's financial problems have been aggravated by long delays in processing export receipts. The coffee board was taking about eight weeks to recycle export receipts into payments to local producers, whereas export bills handled by local banks took half that time to process, they said. The sources said the CMB's price structure had been overtaken by Uganda's high inflation rate, unofficially estimated at about 200 pct, and that this was a further disincentive to producers, already owed large arrears. "The coffee pricing structure is wrong and three months behind, the foreign exchange rate is unrealistic, and the sooner the so-called economic package is put in top gear, the better for the coffee industry and the economy as a whole," one of the sources said. The government is currently negotiating a package of economic reforms with the World Bank and International Monetary Fund aimed at underpinning a renewed inflow of foreign aid to help Uganda's economic recovery after 15 years of political strife.

The sharp drop in world oil prices the past year triggered a 60 pct increase in bankruptcies in the country's oil states, according to a study released by the American Petroleum Institute (API). API said the Dunn and Bradstreet study found that business failures rose nationally by 6.9 pct in 1986 over 1985, but in the "oil patch" of the Southwest the increase was 59.9 pct. It said bankruptcies in Texas were up 57.4 pct, Oklahoma, 55.9 pct, Colorado, 55.8 pct and Louisiana, 46.6 pct. In Alaska, failures rose by 66.2 per cent, it said. API also said that three of the states with the highest number of bank failures last year were large oil and gas producers - Texas, Oklahoma and Kansas.

New Zealand ports reopened at 0730 hrs local time (1930 GMT March 22) after being closed since March 19 because of a strike over pay claims by watersiders, a Waterside Federation spokesman said. But industrial action by other port workers is likely to cause further disruption, Harbour Workers union secretary Ross Wilson told Reuters. Wilson said his members are holding stopwork meetings this morning to consider further stoppages over their pay claim. The two disputes are not related. Harbour Workers around the country went on strike for 24 hours on March 16, but Wilson said any further action will occur on a port-by-port basis.

Representatives from Nigeria are meeting today and tomorrow with officials of Britain's Export Credits Guarantee Department (ECGD) in the first of what could be a series of bilateral talks to reschedule Nigeria's official debts, banking sources said. The talks follow an agreement reached between Nigeria and the Paris Club of western creditor governments in December to reschedule some 7.5 billion dlrs of medium and long-term debt due between September, 1986 and end 1987 over 10 years with five years grace. Nigeria's official debts to the U.K., Its major trading partner, are estimated at 2.5 to three billion dlrs. If the talks prove successful, the Nigerian team, headed by Finance Minister Che Okongwu and Central Bank Governor Abdulkadir Ahmed, will hold similar talks with French export credit officials in Paris later this week, the sources said. An agreement could pave the way for ECGD to resume insurance cover for exports to Nigeria, which was suspended in 1983. The rescheduling of Nigeria's official debts was one of the demands required under a rescheduling of part of the country's estimated 19 billion dlrs of commercial bank debt, for which agreement also was reached in December between Nigeria and a steering committee representing the commercial banks. The commercial bank rescheduling has yet to be finalised because of the reluctance of Japanese banks to participate in the agreement, despite a recent trip to Japan by senior Nigerian officials and representatives of the steering committee. The entire package also is being held up because of the need to reach an agreement to satisfy arrears due on short-term insured and uninsured debts. However, bankers are hopeful that an accord will be struck by May 31. The Nigerians also are attempting to reconcile creditors' claims with their own receipts on some two billion dlrs of letters of credit contained in the commercial bank rescheduling. Bankers said that it was hoped that the ECGD would resume cover fairly soon as this could encourage other official creditors to begin bi-lateral talks as well. Under the structural adjustment program supporting the debt reschedulings Nigeria is due to receive 900 mln dlrs in fresh export credits this year from official export credit agencies. British exports to Nigeria were 565 mln stg in 1986, down from 960 mln in 1985, while Nigeria's exports to Britain, which do not include oil, were 328 mln stg and 647 mln, respectively.

The West German-registered motor vessel Stefan E. Sank off the West African coast early today and one of its eight crew members was killed, a Spanish navy spokesman said. He said the captain of the Singapore-registered tanker Nord Pacific reported in a radio message that he had picked up the remaining seven crewmen of the 2,223 tonnes dw Stefan E., Together with the body of the dead man.

Delta Business Systems Inc said it has completed a previously-announced merger into Alco Standard Corp. Delta said it expects sales of about 30 mln dlrs for the year ending in April.

Rain over wide areas has raised the prospect of good food crops throughout Ethiopia, which suffered a disastrous drought and famine two years ago. Aweke Aynalem, head of the government's Agriculture Development Department, told reporters prospects were good for attaining the target of 250,000 tonnes of grain in the present growing season, one of two each year in Ethiopia. Normal crop production in Ethiopia is about 648,000 tonnes a year, of which 250,000 tonnes are produced from the "belg" (small) rains which fall at this time of year. The belg rains are used to plant quick-maturing crops like maize and barley. Any shortfall during this period affects production in the main rainy season, because farmers eat their stocks of seed. Aweke said peasants in Wello, Tigre and Hararghe -- regions which suffered severely from drought -- were now able to sow their crops because of the favourable rains. The government had distributed large quantities of seed and fertiliser, and the rains should ensure a good crop.

Shr profit seven cts vs loss 16 cts Net profit 2,144,000 vs loss 4,110,000 Sales 121.3 mln vs 20.3 mln Avg shrs 29.4 mln vs 25.3 mln NOTE: Current year net includes pretax gain on sale of product line of 11.4 mln dlrs and charge 4,711,000 dlrs posttax on expensing of a portion of unamorized debt issuance costs of unit. Current year results include Technicon Corp, acquired in August 1986.

Safeguard Scientific Inc said its subsidiary, Coherent Communications Systems Corp, purchased a telecommunications equipment business for an undisclosed amount of cash, notes and Coherent common stock. Safeguard said it bought the business unit from Comsat TeleSystems Inc, a subsidiary of Communications Satellite Corp .

U.S. Treasury Secretary James Baker said he was making progress negotiating reform of the Inter-American Development Bank with other member nations. In a speech prepared for delivery to the annual meeting of the IADB, Baker said, "We are making progress in negotiating reforms." And he added that if succesful, Washington would be ready to put up an additional nine billion dlrs to the seventh IADB four-year capital replenishment, an increase of 75 pct. It was not immediately clear what the overall size of the capital replenishment would be if the U.S. went ahead with such a capital increase. But Baker's statement that he had made progress in negotiating reforms came after a weekend meeting of the bank's policy making board of governors at which the reform issue was put off until next June because of deep differences between Washington and Latin borrowing countries. Baker said the U.S. increase would account for 70 pct of the bank's useable financial resources. Currently Washington is only allowed to vote 34.5 pct in IADB board meetings considering loans to Latin American countries. But the Latin borrowing nations control 54 pct of the vote and frequently approve loans to which economic reform conditions are not tied. Baker pointed out that Western nations which provide 95 pct of the bank's financial resources represent just 46 pct of the vote. Baker said the U.S seeks a greater say in bank decisions for itself and other creditor countries. "In view of this imbalance we don't believe it is unreasonable to ask for a change," Baker said. He said the changes sought by the U.S. would require loan approval by a greater majority of shares than a simple majority. But he stopped short of reaffirming the original U.S. position that veto power should exist with a 35 pct vote. Enlarging on reforms Washington would like to see, Baker said he wanted the IADB to play a much greater role in the U.S. debt strategy for promoting inflation free economic growth, open markets and a reduced government role in the economies of debtor nations. Under reforms he said the U.S. wants the IADB to adopt a major program of lending to specific economic sectors in debtor countries on condition the countries carried out policy reforms in those areas of their economies. Such reforms would include, among other things, more concern for natural resource management. Baker said this lending should help debtors make a transition to more open economies and freer markets. He also said the bank could double its current lending volume from capital and triple its concessional loans to the poorest nations. The Treasury Secretary also called for the IADB to improve its analysis of the policies of debtor countries, strengthening its process for assessing the specific needs of debtor nations. He urged a wholesale reorganization of bank personnel. Baker said, "We simply believe that more discretion and policy influence should lie with the parties which contribute the lion's share of resources." He pointed out that despite tight budget problems the Reagan administration has asked Congress to finance the IADB and other multilateral development banks. Pointing out that such funding was difficult today in the best of circumstances, he said it would be impossible if Congress did not have confidence in bank lending policies.

Shr 30 cts vs 12 cts Net 727,000 vs 266,000 Revs 27.8 mln vs 21.1 mln Nine mths Shr 59 cts vs 48 cts Net 1,355,000 vs 1,098,000 Revs 69.4 mln vs 59.1 mln

Graan Elevator Mij (GEM) said its balance in port of grains, oilseeds and derivatives rose to 70,000 tonnes on March 21 compared with 10,000 a week earlier after arrivals of 192,000 tonnes and discharges of 132,000 tonnes last week. The balance comprised 25,000 tonnes of grains plus oilseeds and 45,000 tonnes of derivatives. This week's estimated arrivals total 487,000 tonnes, of which 107,000 are grains/oilseeds and 380,000 derivatives. The figures cover around 95 pct of Rotterdam traffic in the products concerned.

Deputy Prime Minister Janez Zemljaric, speaking before a meeting with the Paris Club of creditor nations, said Yugoslavia was seeking to refinance two billion dlrs of debt. The official Tanjug news agency quoted Zemljaric as saying Yugoslavia expected a "definite measure of understanding" from 16 western creditor countries when they meet on March 30. Zemljaric was not quoted as saying whether the two billion dlrs referred to principal or interest or both. Yugoslavia's hard currency debt stands between 19 and 20 billion dlrs. Zemljaric said the International Monetary Fund criticised Yugoslavia for not regulating consumption, not having real interest rates or market exchange rates, for its inability to control monetary policy and slow pace of reform. He said the criticisms were in a report by an IMF commission which visited Yugoslavia last December and January. "We cannot accept this assessment because we have made not inconsiderable progress under difficult conditions, even though we are aware of our own weaknesses," Zemljaric said. He said the report favourably assessed some trends in the Yugoslav economy but did not say which. Milos Milosavljevic, also a Deputy Prime Minister, said last Friday that Yugoslavia had repaid 640 mln dlrs of principal and 325 mln dlrs of interest so far in 1987. According to official Yugoslav figures, Yugoslavia repaid a record 5.97 billion dlrs in capital and interest in 1986. In an interview with the West German weekly magazine Der Spiegel, Prime Minister Branko Mikulic said last weekend Yugoslavia had repaid 28.3 billion dlrs in principal and interest between 1981 and 1986.

Oper shr loss 5.60 dlrs vs loss 1.10 dlrs Oper net loss 18,688,000 vs loss 3,662,000 Sales 107.3 mln vs 108.7 mln Year Oper shr loss 5.76 dlrs vs loss 98 cts Oper net loss 19,213,000 vs loss 3,263,000 Sales 455.2 mln vs 417.0 mln Note: Prior qtr and year figures exclude losses from discontinued operations of 279,000 dlrs and 555,000 dlrs, respectively and respective losses on sale of discontinued operations of 14.6 mln dlrs and 15.9 mln dlrs.

Portugal's Agriculture Minister Alvaro Barreto said he disagreed with a court order barring the state grain buying agency EPAC from taking part in cereals import tenders open to private traders. Barreto told reporters his aim was to have EPAC readmitted to the tenders. Under the terms of Portugal's January 1986 accession to the European Community (EC), a grain import monopoly held by EPAC (Empresa Publica de Abastecimento de Cereais) is being reduced by 20 pct annually until all imports are liberalised in 1990. Following legal proceedings by private importers, Lisbon's civil court decided in a preliminary ruling earlier this month that EPAC should not be allowed to take part, as it had done, in tenders for the liberalised share of annual grain imports. As a result of this ruling, EPAC was excluded from a March 12 tender for the import of 80,000 tonnes of maize. Barreto said, "My objective is put EPAC into the tenders because it has a right to take part." He added the government would be studying the court order to see whether or not the ruling could stop EPAC from participating in future tenders. Barreto said there was no reason to exclude any operator, whether public or private, from the tenders. Private traders had argued that EPAC, given its dominant position in the Portuguese grain market, had an unfair advantage over them. "There is no reason to make EPAC a martyr of the system," Barreto said. He said the EC's executive commission had accepted the government's view that EPAC should be eligible. The Lisbon court ruling stated that EPAC's participation in the public tenders was unfair competition and violated the clauses of Portugal's EC accession treaty dealing with the gradual dismantling of the state agency's import monopoly.

Shr one ct vs five cts Net 19,174 vs 118,671 Revs 3,127,162 vs 2,936,330 Year Shr eight cts vs 30 cts Net 198,290 vs 712,087 Revs 12.4 mln vs 11.6 mln Avg shrs 2,603,588 vs 2,376,604

The United States has offered Navy warships to escort Kuwaiti oil tankers into and out of the Gulf where they could be threatened by new Iranian anti-ship missiles, U.S. defense officials said today. "We believe the Kuwaitis have also approached the Soviet Union about the possibility of using Soviet tankers" to ship their oil, one of the officials told Reuters. "But if there is superpower protection, we would rather it come from us," the official said. The officials, who asked not to be identified, said Kuwait had asked about possible protection for a dozen vessels, most of them oil tankers, which could be supplied by three U.S. Navy guided missile destroyers and two guided missile frigates now in the southern part of the Gulf. "We told them we would give them help and we are waiting to hear the Kuwaiti response to our offer," one official said. In addition to a half dozen ships in the U.S. Navy's small Mideast Task Force near the Straits of Hormuz, the Pentagon has moved 18 warships -- including the Aircraft Carrier Kitty Hawk -- into the northern Indian Ocean in the past month. White House and defense officials said today that massing of the fleet was routine and had nothing to do with the Iran-Iraq war or Iran's recent stationing of Chinese-made anti-ship missiles near the mouth of the Gulf. The land-based missiles have increased concern in Kuwait and other Middle East countries that their oil shipments might be affected. Several hundred vessels have been confirmed hit in the Gulf by Iran and Iraq since early 1984. White House spokesman Marlin Fitzwater told reporters today that it was in the U.S. strategic interest to keep the free flow of oil in the gulf and through the Straits of Hormuz. But he said U.S. ships in the region were on routine maneuvers. Defense Secretary Caspar Weinberger on Sunday declined to discuss specifics, but said the United States would do whatever was necessary to keep the Gulf shipping open in the face of new Iranian anti-ship missiles in the region. "We are fully prepared to do what's necessary to keep the shipping going and keep the freedom of navigation available in that very vital waterway of the world," he said on NBC television's "Meet the Press." The State Department said Friday Iran has been informed about U.S. concern over the threat to oil shipments in the Gulf. The communciation was sent through Switzerland, which represents American interests in Iran. Iran on Sunday denied as baseless reports that it intended to threaten shipping in the gulf and warned the United States that any interference in the region would meet a strong response from Tehran, Tehran Radio said. An Iranian Foreign Ministry spokesman, quoted in a broadcast monitored by the BBC in London, said reports that Iran intends to threaten shipping in the Gulf were baseless. "In conjunction with this misleading propaganda, America has already paved the ground to achieve its expansionist and hegemonistic intentions, aiming to build up its military presence in the region," he was quoted as saying.

Iraq said today its warplnes had attacked a supertanker and four Iranian oil sites and vowed to keep up such raids until the Gulf war ends. The surprise escalation of attacks on oil installations broke more than a month-long lull in Iraqi air force action. It also followed celebrations yesterday of what Baghdad hailed as Iran's failure to achieve victory during the Iranian year which ended on Saturday. A high command communique said warplanes hit the western jetty at Iran's Kharg island oil terminal in the afternoon and struck a supertanker nearby at the same time. The Kharg terminal, attacked about 135 times since August 1985, was last raided in January. The communique did not identify the supertanker, but said columns of smoke were seen billowing from it. In London, Lloyds insurance said the 162,046-ton Iranian tanker Avaj was hit on Saturday, when Iraq reported an earlier Gulf attack. But there has been no independent confirmation of today's supertanker attack nor of other raids on shipping reported by Baghdad in the past 24 hours. The last confirmed Iraqi attack took place on March eight, when the Iranian tanker Khark-5 was hit south of Kharg. Iraqi warplanes also struck Iran's offshore oilfields at Nowruz, Cyrus and Ardeshir in northern gulf, some 80 km (50 miles) west of Kharg island, today's communique said. The three oilfields have been raided several times in the past three years. Oil sources said they were not crucially important to Iran's oil export trade. A second high command communique today said Iraqi warplanes flew 94 sorties against Iranan targets and positions at the war front. It also reported a clash between Iraqi naval units and several Iranian boats carrying men to attack an Iraqi oil terminal at the northen tip of the Gulf. Two Iranian boats wer destroyed and sunk with their occupants and the others fled, it said.

France's Economic and Social Council (CES), an advisory body comprising industrialists, trade unionists and representatives of other sectors of the French economy, said the country's annual growth may not reach two pct in 1987. French gross domestic product risks not reaching the two pct growth registered last year, the Council said in a report on first quarter 1987 economic activity without giving any specific forecasts. Finance Minister Edouard Balladur was quoted today as saying that French 1987 growth will probably be about two pct. Balladur said in an interview with the financial daily Les Echos that the country's economic growth will probably be about the same as last year due to a less favourable international environment. CES President Philippe Neeser said one of the major fears for the French economy this year was a resurge in inflation. Disinflation was an absolute priority, Neeser told journalists, adding that a failure to do this would be extremely serious as if would be very difficult to reverse for many years.

Shr 1.25 dlrs vs 1.14 dlrs Net 472,254 vs 446,805 Revs 21.4 mln vs 19.4 mln

Security Capital Corp said it has suspended quarterly cash dividend payments indefinitely. The company also said its board has withdrawn authroization for the company to buy its stock on the open market. Its previous dividend payment was five cts on February 24. Security Capital said this action was taken in response to its continuing operating losses, primarily at Benjamin Franklin Savings Association, a Houston-based subsidiary.

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

Iraq said its warplanes had attacked a supertanker and four Iranian oil sites and vowed to keep up such raids until the Gulf war ends. The surprise escalation of attacks on oil installations broke more than a month-long lull in Iraqi air force action. It also followed celebrations yesterday of what Baghdad hailed as Iran's failure to achieve victory during the Iranian year which ended on Saturday. A high command communique said warplanes hit the western jetty at Iran's Kharg island oil terminal in the afternoon and struck a supertanker nearby at the same time. The Kharg terminal, attacked about 135 times since August 1985, was last raided in January. The communique did not identify the supertanker, but said columns of smoke were seen billowing from it. In London, Lloyds insurance said the 162,046-ton Iranian tanker Avaj was hit on Saturday, when Iraq reported an earlier Gulf attack. But there has been no independent confirmation of today's supertanker attack nor of other raids on shipping reported by Baghdad in the past 24 hours. The last confirmed Iraqi attack took place on March 8, when the Iranian tanker Khark-5 was hit south of Kharg. Iraqi warplanes also struck Iran's offshore oilfields at Nowruz, Cyrus and Ardeshir in northern gulf, some 80 km (50 miles) west of Kharg island, today's communique said.

Standard and Poor's Corp said it raised to A-plus from A Weyerhauser Co's 150 mln dlrs of market auction preferred stock, series A and B. S and P assigned an A rating to the company's 200 mln dlrs of convertible exchangeable preference stock, and affirmed its A-plus senior debt and A-1 commercial paper. Weyerhauser has about 1.6 billion dlrs of debt securities outstanding. It said the action reflected the preferred's diminished importance in the capital structure following the recent conversion of 2.80 dlr convertible cumulative preferred shares, which had a 200 mln dlr liquidiating value.

Lincoln Savings Bank said its board declared an initial dividend of 10 cts per share, payable April 17 to shareholders of record April 10.

The Bank of Japan stepped up its dollar buying as it re-entered the market after the midday Tokyo lunch break, dealers said. They said the bank seemed more determined to support the dollar than it did this morning. Several dealers said the central bank intervened this afternoon when the dollar stood around 149 yen. One said it purchased 150 to 200 mln dlrs in the half-hour since the market re-opened after its lunchtime closure. Another said the bank still has buying orders in the market.

Peninsular and Oriental Steam Navigation Co Plc , P and O, said it plans a free warrant issue on the basis of 10 warrants for every 150 stg nominal of deferred stock already held, to mark the 150th anniversary of the company. Each warrant will give the right to subscribe for one stg nominal of deferred stock at 750p during a specified period in the five years starting in 1988. P and O deferred shares were last quoted at 629p, down 1p since yesterday, after the company reported 1986 pre-tax profit of 174.1 mln stg against 125.6 mln for 1985. P and O said 1986 produced an acceptable level of growth, though ground has to be made up in one or two areas. The company has a strong balance sheet and considerable flexibility for 1987, it added. P and O will concentrate on expanding in its established market sectors. Commenting on the recent ferry disaster in the North Sea off Zeebrugge, the statement said the precise cause is unknown. The company has instituted an immediate investigation and both the British and Belgian governments are conducting inquiries. The stricken ferry, the Herald of Free Enterprise, belongs to Townsend Thoresen, which became part of P and O in January. P and O is considering listing its shares in Japan and other important overseas financial centres, the statement added.

Philippine Secretary of Trade and Industry Jose Concepcion, who two days ago expressed doubts about agreements produced at international conferences, said he was pleased with the latest gathering here. Concepcion told Reuters in an interview that the informal General Agreement on Tariffs and Trade (GATT) meeting gave ministers from more than 20 nations the chance to examine issues with which GATT did not have the political will to deal. "Also, the role of the developing countries has been emphasised in this particular meeting. Somehow it has been the perception of developing countries that GATT is a club of rich countries," he added in an interview with Reuters. "In fact many of the issues that have been tabled for discussion (in the Uruguay round of trade negotiations) will be of more benefit to the developed countries," he said. Concepcion said at the start of the Taupo meeting that the Uruguay round was meant to be a "shining act of faith" in the world trade system. Concepcion said the Philippines would address the issues of trade in tropical fruit and the improvement of GATT machinery to make it more responsive. He said tropical fruit came from developing countries but faced non-tariff barriers, quantitative restrictions or very high duties in other nations. Concepcion named Japan and South Korea as examples. He said he would go to Wellington for talks with New Zealand, which had a surplus in trade with the Philippines, to encourage it to switch imports from other countries. He noted that New Zealand bought its bananas from Ecuador.

The U.S. Has offered warships to escort Kuwaiti tankers in the Gulf past Iranian anti-ship missile batteries, Defence Department officials said. The officials told Reuters yesterday the offer was made last week by Navy Admiral William Crowe, chairman of the Pentagon Joint Chiefs of Staff, during a Middle East visit. Reagan administration officials said later that Washington did not seek military confrontation with Tehran, but would not let Iran use Chinese-made "Silkworm" anti-ship missiles, capable of covering the narrow entrance to the Gulf, to choke oil shipments to the West. Defence officials said Kuwait had asked if protection for up to a dozen vessels, most of them tankers, could be provided by three U.S. Navy destroyers and two frigates now in the southern Gulf and the Gulf of Oman. In addition to a half dozen ships in the U.S. Navy's small Mideast Task Force near the Straits of Hormuz, the Pentagon has moved 18 warships, including the aircraft carrier Kitty Hawk, into the northern Arabian Sea in the past month. White House and defence officials said that massing the fleet was routine and had nothing to do with the Iran-Iraq war or Iran's stationing of missiles near the mouth of the Gulf. The State Department said on Friday that Iran has been told about U.S. Concern over the threat to oil shipments in the Gulf. The communication was sent through Switzerland, which represents U.S. Interests in Iran. Iran denied as baseless reports that it intended to threaten shipping in the Gulf and said any U.S. Interference in the region would meet a strong response, Tehran Radio said on Sunday. Several hundred vessels have been confirmed hit in the Gulf by Iran and Iraq since early 1984 in the so-called tanker war, an offshoot of their 6-1/2-year-old ground conflict.

The Bank of England said it had provided the money market with 115 mln stg assistance in the morning session. This compares with the Bank's forecast of a 300 mln stg shortage in the system today. The central bank bought bills outright in band two at 9-13/16 pct comprising 73 mln stg bank bills and 42 mln stg local authority bills.

Iran has test-fired its newly acquired Silkworm anti-shipping missile in the Strait of Hormuz and has set up at least two land-based launching sites in the area, a British naval source in the Gulf said. The source, who declined to be identified, said Iran had fired the Chinese-made missile at a hulk off its southern Gulf naval port of Bandar Abbas and scored a hit. "These missiles pack a fairly big punch," he told Reuters. "There is no doubt they could be used to target (shipping) across the Strait of Hormuz." Tension in the Gulf has risen since U.S. Officials last week broke the news that Iran had acquired the Silkworm missiles. The U.S. Has said it will not allow Iran to use the missiles to choke off oil shipments and has offered its warships to escort Kuwaiti tankers past the missile batteries. But Tehran denied last Sunday it intended to threaten Gulf shipping and warned the U.S. Any interference in the region would meet a strong response. The British naval source said the Silkworms were in place at at least two sites around the Strait of Hormuz, but would not give the exact location.

Iran has test-fired its newly acquired Silkworm anti-shipping missile in the Strait of Hormuz and has set up at least two land-based launching sites in the area, a British naval source in the Gulf said. The source, who declined to be identified, said Iran had fired the Chinese-made missile at a hulk off its southern Gulf naval port of Bandar Abbas and scored a hit. "These missiles pack a fairly big punch," he told Reuters. "There is no doubt they could be used to target (shipping) across the Strait of Hormuz."

Shr 97.0p vs 85.3p Div 22.5p vs 20.0p making 35.0p vs 30.5p Pretax profit 253.9 mln stg vs 267.9 mln Tax 96.3 mln vs 125.6 mln Operating income 1.15 billion vs 998.8 mln Operating expenses 759.3 mln vs 692.7 mln Trading profit before charge for bad and doubtful debts 394.4 mln stg vs 306.1 mln Charge for bad and doubtful debts 184.2 mln vs 100.7 mln Share of profits of associates 43.7 mln vs 62.5 mln Minority interests 6.6 mln debit vs 9.6 mln debit Extraordinary items 8.7 mln debit vs 15.7 mln credit Operating income includes - Interest income 2.49 billion vs 2.33 billion Interest expenses 1.77 billion vs 1.64 billion Other operating income 428.8 mln vs 313.2 mln Operating expenses include - Staff 405.9 mln vs 376.0 mln Premises and equipment 197.0 mln vs 155.2 mln Others 156.4 mln vs 161.5 mln Pretax profit includes - North America 65.8 mln vs 49.6 mln Asia Pacific 0.9 mln vs 31.8 mln Middle East and south Asia 17.7 mln vs 2.3 mln Tropical Africa 47.5 mln vs 44.7 mln U.K. 107.6 mln vs 135.7 mln South Africa 36.8 mln vs 35.6 mln

Honduras will tender March 26 under PL480 for U.S. and non-U.S. flag vessels to import 1,500 tonnes of tallow in bulk, an agent for the country said. The agent said delivery includes laydays of April 5-15. Offers are due by 1200 hrs EST, March 26, and will remain valid until the close of business the following day, the agent said.

The speaker of the Iranian Parliament, Hojatoleslam Akbar Hashemi Rafsanjani, warned the U.S. Not to intervene in the Gulf, a day after Washington said its warships were available to escort Kuwaiti tankers through the waterway. "If U.S. Intervention occurs, the entire world will become insecure for the Americans and the events of Lebanon could be repeated for the Americans everywhere," he said. U.S. Defence officials disclosed in Washington yesterday that the U.S. Navy, which has about 24 warships in or near the Gulf, was prepared to escort Kuwaiti tankers, regular targets for Iranian attacks in an offshoot of its war with Iraq. Rafsanjani, in an interview reported by the Iranian news agency IRNA, also commented on earlier U.S. Disclosures that Iran had erected sites for new Chinese-made Silkworm anti-shipping missiles at the Strait of Hormuz. The agency, received in London, quoted him as saying that Iran did not need missiles to close the strait, 24 miles wide at its narrowest, because "we can close it with artillery only." He added "We have the longest coasts and the highest interest here and the small southern (Gulf) states have a lesser interest compared with us and therefore it is natural for us to protect the security of the Strait of Hormuz more than others."

Rice and corn farmers will receive the largest payments from the U.S. government during 1987 if the subsidies are calculated per planted acre, the U.S. Agriculture Department said. USDA said government outlays to rice farmers in 1987 are expected to reach 403 dlrs per acre planted, followed by corn at 135 dlrs per planted acre. Government outlays include mainly deficiency payments and price support loans. On a per acre basis, cotton payments will reach 73.24 dlrs in 1987, wheat 60.30 dlrs, sorghum 54.38 dlrs, barley 27.41 dlrs and oats 2.31 dlrs, USDA said. USDA estimates farm subsidies will reach 25.3 billion dlrs in 1987. The figures were given by USDA officials at a Senate Agriculture Appropriations hearing yesterday.

The Bank of England said it provided the money market with late help of about 10 mln stg. This takes the bank's total help today to some 229 mln stg and compares with its forecast of a 300 mln stg shortage.

Geo. A. Hormel and Co said its directors voted a two-for-one split, payable June one, record April 18.

Qtly div 26 cts vs 24 cts prior Pay April 30 Record April 15

Shr loss 64 cts vs loss 1.29 dlrs Net loss 5,732,000 vs loss 4,924,000 Sales 18.8 mln vs 23.6 mln Avg shrs 9.0 mln vs 3.8 mln Year Shr loss 1.82 dlrs vs loss 3.65 dlrs Net loss 12,267,000 vs loss 13,911,000 Sales 112.8 mln vs 129.3 mln Avg shrs 6.7 mln vs 3.8 mln

Moore McCormack Resources Inc said it has completed the previously-announced sale of its Interlake Steamship Co and Moore McCormack Bulk Transport Inc Great Lakes and ocean bulk shipping units to James R. Barker. The company said president Paul Tregurtha has succeeded Barker as chairman and chief executive officer of Moore McCormack.

Robert Heller, a member of the Board of Governors of the Federal Reserve System, said commodity prices could form a useful guide for setting domestic and international monetary policy. Speaking to the conservative Heritage Foundation, Heller said, "A broadly based commodity price index may be worth exploring" as a guide to monetary policy. "In times of rising commodity prices, monetary policy might be tightened and in times of falling commodity prices, monetary policy might be eased," he said. Commodities are also standardized to avoid measurement problems and occur at the beginning of production so as to give "early warning" signs of wholesale and retail changes. "There is no need to react to every small fluctuation in commodity prices or to do so on a daily basis," Heller said in a prepared text. "But if commodity prices exhibit a broad trend, a policy action might be considered," he said. Heller said using a broad-based commodity price index as an indicator for monetary policy would also contribute to stabilized currency exchange rates. Commodity prices are generally uniform worldwide and prices for them are more consistent than for other types of goods, he said. He said other beneficial effects would be to stabilize export commodity prices for developing countries by using a commodity basket as a guidepost for monetary policy.

The Soviet Union supports the freedom of navigation in the Gulf and does not support any act which would cause the deterioration of the situation in the region, its ambassador to Kuwait, Ernest Zverev, told the Kuwaiti news agency KUNA. "We support the freedom of navigation in the Arabian Gulf and the Strait of Hormuz," the agency quoted Zverev as saying. KUNA also said the envoy had discussed the deployment of Iranian missiles near the Strait of Hormuz with Kuwaiti Foreign Undersecretary Suliman Majed al-Shaheen. A British naval source in the Gulf said today Iran had test-fired its new Silkworm missiles and set up launching sites in the area. The tests had been successful and the missiles could be used against shipping in the strait, the source added. But Iranian Parliamentary Speaker Hojatoleslam Akbar Hashemi Rafsanjani said Iran did not need missiles to close the strait because "we can close it with artillery only." The U.S. Has said it will not allow Iran to use missiles to choke off oil shipments and offered its warships to escort Kuwaiti tankers past the missile batteries in the strait.

Flowers Industries Inc said it expects lower earnings for the current year due to operating losses incurred by recent acquisitions and possible nonrecurring losses resulting from its restructuring efforts. For the year ended June 28, Flowers earned 29.5 mln dlrs. Today it reported nine month earnings of 14.9 mln dlrs, down from 15.9 mln dlrs a year before. Flowers said it expects fiscal 1988, however, to show the best growth in profits in its history due to the growing profitability of ongoing businesses, cost control efforts, higher productvitiy and lower taxes. Flowers said losses suffered in its West Texas operations and in five plants acquired at the start of the third quarter from and severely hurt results. It said the CFS and Wolf plants are expected to be contributing to profit by the end of the fiscal year and it is seeking to bring the West Texas operations to acceptable levels of profitability by the end of the fourth quarter as well.

Shr 54 cts vs 47 cts Net 1.1 mln vs 941,000 REvs 8.9 mln vs 10.3 mln Year Shr 1.65 dlrs vs 1.64 dlrs Net 3.3 mln vs 3.3 mln Revs 37.4 mln vs 39.0 mln

Hecla Minging Co said it has agreed to purchase a 28 pct interest in the Greens Creek Joint Venture from British Petroleum Co PLC's Amselco Minerals Inc unit. The venture expects to bring into production a gold-silver-lead-zinc ore body on Admiralty Island, Alaska, containing about 3,500,000 short tons of ore assaying about 0.18 ounce of gold, 24.0 ounces of silver, 9.7 pct zinc and 3.9 pct lead per short ton, Hecla said. It said there is significant potential for the discovery of additional ore. Corrects last assay result to lead from zinc.

Standard Chartered Plc , faced with a recession in the key Singapore and Malaysian markets and an ongoing depression in the shipping industry, boosted its bad-debt provisions in 1986, chairman Lord Barber said. Barber said in a statement on the bank's 1986 results that bad and doubtful debt provisions, both general and specific, stood at 545.6 mln stg against 416.6 mln at end-1985. Bank figures showed the increase was almost exclusively in the specific bad risk provision, which qualifies for U.K. Tax breaks. New specific provisions rose by 111.5 mln stg while 71.2 mln stg were reallocated from the general risk provision. In all, a 184.2 mln stg charge was made against profits for 1986, compared with a 100.7 mln stg charge in 1985. Total pre-tax profits fell to 254 mln after 268 mln in 1985. "The continuing serious recessionary conditions in Singapore and Malaysia and the depressed condition of the shipping industry made it necessary to provide heavily against bad and doubtful debs arising from loans in the Asia Pacific region, on top of the normal level of provisioning," Barber said. He said, "the decision was also taken to build up loan loss reeserves by making a sizeable increase in the charges for general provisions for commercial and cross border risks." Barber said due to bad-debt provisioning, the Asia Pacific region made "a negligible contribution to pre-tax profits." He said the profits contribution from the U.K. Businesses was "well maintained, although the reported result was affected by cross border debt provisioning," while Californian subsidiary Union Bank "showed continued growth." "Tropical Africa, Middle East and South Asia all turned in excellent performances and the revival in Europe continued," he said. Barber said the group, which succesfully fought off a takeover bid by Lloyds Bank last year, strengthened its capital resources during that year to just over three billion stg, while total assets increased to 32.2 billion. Capital adequacy ratios remained strong, with the primary capital ratio standing at 7.5 pct at end 1986, he said.

Shr five cts vs nine cts Net 560,000 vs 1,247,000 Revs 7,597,000 vs 4,619,000 Year Shr ten cts vs 17 cts Net 1,225,000 vs 2,161,000 Revs 26.5 mln vs 23.3 mln

An extension of the sixth International Tin Agreement, ITA, for one or two years beyond June 30 is increasingly likely, International Tin Council, ITC, delegates said following a special council session today. A formal decision will be taken at the quarterly council session on April 8-9 when decisions are needed on the budget and activities for the year beginning July one, they stated. Delegates said most countries now favour a continued legal ITC presence to answer the still unresolved legal disputes over the outstanding debts of its buffer stock with court hearings likely to continue well after the June 30 expiry of the pact. The ITC was informally told of the appeal made yesterday by Amalgamated Metal Trading Ltd, AMT, against the January court ruling against it in the legal bid it led on behalf of ITC creditor brokers to have the ITC wound up. In January the judge ruled that the U.K. Court had no jurisdiction to wind up the tin council, the ITC was not an association within the meaning of the U.K. Companies act, and the winding-up petition was not a proceeding in respect in respect of an arbitration award. AMT is appealing on all points and has said it is important for the court to accept that a winding-up petition is a move to enforce an arbitration ruling.

About 14,000 of Brazil's 40,000 seamen are now back at work after pay accords with 21 shipping companies but the rest are still on strike, a spokesman at strike headquarters said today. The seamen began a national stoppage on February 27. The spokesman, talking by telephone from Rio de Janeiro, said 126 ships were strike-bound. He added that because of resignations by many seamen there were scarcely any crews left on 38 of these ships. The seamen have settled in general for pay rises of 120 pct with the 21 companies. Talks with the shipowners' association Syndarma have been deadlocked over overtime. While exports have been delayed by the strike, exporters say the problems have been manageable. "It hasn't been critical by any means," said a coffee trader in Santos, who noted that coffee was still moving on foreign ships. Economic analysts added, however, that any delay to exports served to aggravate Brazil's balance of payments crisis, which last month prompted the government to suspend interest payments on 68 billion dlrs of commercial debt.

Shr 33 cts vs 46 cts Net 1,350,000 vs 1,886,000 Revs 150.1 mln vs 127.9 mln Year Shr 1.76 dlr vs 1.59 dlr Net 7,300,000 vs 6,567,000 Revs 548 mln vs 510.5 mln NOTE: First three quarters of 1986 have been restated to reflect adoption in 4th qtr of new pension accounting procedure which increased net income in first three qtrs 204,000 dlrs or five cts per share. Procedure increased fourth qtr income 73,000 dlrs or two cts per share.

Calumet Industries Inc said it expects to report a loss from operations for its second quarter ending March 31, despite a strong unit sales increase. In the same year-ago period the company reported net income of 366,953 dlrs, or 18 cts a share. Chairman S. Mark Salvino said the expected loss is primarily due to depressed product prices not recovering the increasing cost of crude oil. Salvino also said steadier crude prices and the reduced rate of refinery production should increase product prices and lead to a return to more normal profit margins. He reported that the 23 mln dlr HydroCal II system under construction at the company's refinery in Princeton, La., is on schedule and production will begin early in fiscal 1988.

Qtly div 31 cts vs 31 cts prior Payable APril 22 Record April three

CPC International Inc said it reached an agreement in principle to sell its European corn wet milling business to Agricola Finanziaria SpA, a member of the Ferruzzi Group, for a price in excess of 600 mln dlrs. The transaction is expected to be completed by September 30. CPC said it expects no material gain or loss this year from the transaction. But the effect of the deal on 1987 earnings can be evaluated in full only when the definitive pacts are completed, it said. The long-term effect of the transaction on CPC's earnings should be positive, it added, as it will allow capital expenditures to be cut back and will reduce corporate and divisional overheads as well as operating expenses in the European business. The sale is an important part of a restructuring announced in November, CPC said. Proceeds of the sale will be used to reduce debt incurred in the purchase of the Arnold Foods and Old London specialty baking businesses and the stock repurchase program that was part of the restructuring. As of December 31, CPC had bought about 15 mln of its common shares, adjusted for a 2-for-1 split in January, for a total cost of 621.8 mln dlrs, according to its 1986 annual report. In December, CPC acquired Arnold Foods and Old London for a total of about 170 mln dlrs. CPC had previously said it wanted to sell the European corn wet milling business and use the proceeds to help reduce debt, including that incurred under the share buyback. In total, CPC has bought back about 16 mln shares of common stock, adjusted for the split, it said today. In November it authorized a buyback of 20 mln shares, adjusted for the split. The buyback and the restructuring were triggered in November, after companies controlled by Ronald Perelman, chairman of Revlon Group Inc , acquired about 7.6 pct of CPC's then outstanding stock. In 1986, the European corn wet milling business had sales of 914.1 mln dlrs, operating income before overheads of 68.8 mln dlrs and associated headquarters overhead costs of 19.7 mln dlrs, according to CPC's 1986 annual report. The businesses' assets were 645.7 mln dlrs in 1986, the report said.

Shr 3.28 dlrs vs 22 cts Shr diluted 2.99 dlrs vs 22 cts Net 46.0 mln vs 3,328,000 Avg shrs 14.0 mln vs 15.2 mln Year Shr 5.41 dlrs vs 1.56 dlrs Shr diluted 4.94 dlrs vs 1.50 dlrs Net 78.2 mln vs 25.9 mln Avg shrs 14.5 mln vs 15.1 mln NOTE: earnings per share reflect the two-for-one split effective January 6, 1987. per share amounts are calculated after preferred stock dividends. Loss continuing operations for the qtr 1986, includes gains of sale of investments in Enron Corp of 14 mln dlrs, and associated companies of 4,189,000, less writedowns of investments in National Intergroup Inc of 11.8 mln and BRAE Corp of 15.6 mln.

Unocal Corp said its Union Oil Co of California unit is making a public offering of 450 mln dlrs of long-term notes. It said the issues consist of 150 mln dlrs of non-callable notes due April 1, 1994, which are priced at par with a coupon rate of 8-1/2 pct and a 300 mln dlr issue of notes due April 1, 1997, with a coupon rate of 8-3/4 pct and priced at 99.447 to yield 8.83 pct. The 300 mln dlr issue is callable at par after seven years, the company said. It also said the issues are being drawn from Unocal's shelf registration statement filed in December 1985. Merrill Lynch Capital Markets and Shearson Lehman Brothers Inc are lead underwriters, Unocal said. It said proceeds will be used to pre-pay a portion of its existing floating rate bank debt, thereby extending the maturity of the company's overall debt structure.

South Africa will repay 13 pct of its frozen 13 billion dollar debt to foreign creditors over the next three years under an agreement reached today in London, Finance Minister Barend du Plessis said. He said South Africa already had repaid five pct of the debt under the standstill agreement expiring on June 30, 1987. "These arrangements confirm South Africa's continued willingness to maintain good relations with its foreign creditors and to meet its foreign commitments in a orderly way," du Plessis told a news conference. Du Plessis said the new interim debt agreement was "substantially a continuation" of the arrangement ending in June and calls for South Africa to continue paying all interest on its total foreign debt of over 23 billion dlrs. Du Plessis said 34 banks holding more than 70 pct of the frozen debt agreed to the new arrangement worked out with South African negotiators in London. About 300 other creditor banks also are expected to approve the agreement, he said. Reserve Bank governor Gerhard de Kock said the agreement was a "good deal" both for South Africa and the banks. Speaking at the same news conference, de Kock said the three-year length of the agreement was of "enormous significance" to South Africa. He said South Africa had negotiated from a "position of basic economic financial strength." "We were never overborrowed to begin with and we are now underborrowed by all international criteria that I've ever heard of," de Kock said. Du Plessis said available foreign reserves of the Reserve Bank, which increased by about 800 mln dlrs in the past two months, and a continued current account surplus "will be sufficient" to meet terms of the new interim debt agreement. Du Plessis said the banks were showing much more confidence in the South African economy and country as a whole. He attributed this to "restoration of law and order which has greatly reduced not only the extent of unrest but also the intensity of unrest." South Africa has been under a state of emergency since June 1986 because of black political violence that has claimed over 2,400 lives in the past three years. Du Plessis said no political demands were made by the banks and South Africa was now rapidly returning to very good relations with its foreign creditors. He said there were encouraging signs that some foreign investors were again "taking a more realistic view" of South Africa. Recent examples were the rise in the financial rand and the sharp increase in foreign exchange reserves, he said. Of the 13 billion dlrs frozen debt 3.5 billion was owed by public sector and 9.5 billion by private industry, du Plessis said. The remaining 10 billion consists of seven billion owed by government agencies and three billion by the private sector.

Shr loss 57 cts vs loss 30 cts Net loss 5.9 mln vs loss 3.2 mln Revs 5.6 mln vs 16.3 mln Year Shr loss 2.11 dlrs vs loss 95 cts Net loss 22.0 mln vs loss 9.9 mln Revs 29.3 mln vs 66.3 mln

Shr loss seven cts vs profit five cts Net loss 149,421 vs profit 103,120 Sales 1,698,345 vs 1,920,010 Six Mths Shr loss five cts vs profit nine cts Net loss 100,472 vs profit 191,614 Sales 3,836,794 vs 3,650,322

Brazilian Science and Technology Minister Renato Archer said Brazil will keep its computer market closed to foreign goods in order to give its own infant industry time to develop. "Every country establishes laws to protect its interests. The United States closed their borders at a certain stage to some foreign goods and therefore protected its industrial development. Now it is time for Brazil to do likewise," Archer said at the opening of a national software conference. After several meetings, Brazil and the U.S. Have made no major progress in their computer row, which they have been trying to resolve for the past 18 months. The Reagan administration has objected to Brazil protecting its computer industry from imports.

Kirschner Medical corp said it completed the acquisition of Minnesota Mining and Manufacturing's orthopedic metal implant line division. The acquisition price is 12.0 mln dlrs in cash, a six mln dlr three year note and 100,000 shares of Kirschner common stock. The division had sales of 11.3 mln dlrs in 1986.

Gencorp Inc said that because it is continuing to evaluate General Acquisition Inc's tender offer it has fixed April 3, subject to further extension, as the date the rights to purchase preferred shares will trade separately from the common stock as a result of the tender offer. This extension of the expiration date is conditioned on no person acquiring beneficial ownership of 20 pct or more of Gencorp's common stock prior to April 3, it said. Gencorp said it could distribute the rights certificates to shareholders 10 to 30 days after the March 18 acquisition offer was made. However, rather than leaving the expiration date in a range, the board decided to set April 3 as the day it will distribute the preferred share purchase rights.

Oper shr loss one ct vs loss seven cts Oper net loss 80,640 vs loss 787,738 Revs 933,183 vs 3,346,627 Avg shrs 6,122,378 vs 8,451,578 Year Oper shr loss 75 cts vs loss 1.10 dlrs Oper net loss 5,120,206 vs loss 9,288,996 Revs 5,846,962 vs 18,679,090 Avg shrs 6,805,951 vs 8,387,802 NOTE: Earnings exclude losses from discontinued operations of 178,437 dlrs, or three cts a share vs 154,767 dlrs, or two cts a share in the quarter and losses of 706,984 dlrs, or 10 cts a share vs 572,100 dlrs, or seven cts a share for the year 1986 year earnings exclude gain from early extinguishment of debt of 11,318,289 dlrs, or 1.66 dlrs a share

Hawkeye Bancorp said it issued 2,690,877 shares of preference stock to its institutional creditors in payment of 32.3 mln dlrs of restructured debt. It said the new shares, which are convertible into common stock on a share-for-share basis at the option of the holders at any time, represent in the aggregate 25 pct of the equity of Hawkeye on a fully diluted basis. Hawkeye also said it issued 233,983 shares of common stock in exchange for 14,766 shares of preferred upon completion of a previously announced exchange offer to holders of preferred. As a result, the company said it has 6,922,949 shares of common, 155,009 shares of preference stock which are convertible into 1,149,681 shares ov common and 2,690,877 shares of preference stock convertible into a like number of common shares. Total common stock equivalents are 10,763,507.

Shr 16.7 cents vs 29.4 Final div nil vs same making nil vs same Pre-tax profit 21.31 mln dlrs vs 26.42 mln Net 10.84 mln vs 19.15 mln Turnover 17.17 mln vs 25.94 mln Other income 101.99 mln vs 125.18 mln Shrs 65.13 mln vs same. NOTE - Net is after tax 10.47 mln vs 7.27 mln, interest 2.58 mln vs 9.55 mln, depreciation 5.06 mln vs 7.61 mln and minorities nil vs same. Other income: 72.39 mln from sale of investments (103.04 mln 1985), interest 25.75 mln (21.49 mln), and dividends 1.64 mln (nil). Co is 93.7 pct owned by . Note - All figures in U.S. Dollars as the company is registered in Bermuda.

The Bell Group Ltd said it will make two convertible bond issues totalling 200 mln dlrs. An issue of about 125 mln in convertible bonds, to be quoted on the Luxembourg Stock Exchange, would be offered in Europe through a syndicate led by , and , Bell Group said in a statement. Subject to shareholder approval, at a meeting on April 22, a further 75 mln dlrs in convertible bonds would be subscribed by Bell Group chairman Robert Holmes a Court, it said. The funds would provide additional working capital. The bonds, maturing 10 years from the date of issue, would carry a 10 pct per annum interest rate, payable annually in arrears, Bell Group said. The bonds are convertible into ordinary shares of The Bell Group Ltd at any time, with the issue price a premium in the range of 20 to 25 pct above the market price of the ordinary shares at the date of issue of the bonds, it said. The bonds also carry the right for the issuer to redeem them after two years if the share price is above 130 pct of the conversion price for more than 30 days. Bell Group made a similar 75 mln dlr bond issue in December 1985.

Matsushita Electric Industrial Co Ltd said it will issue a 200 billion yen unsecured convertible bond in the domestic capital market through public placement with Yamaichi Securities Co Ltd, Nomura Securities Co Ltd, Nikko Securities Co Ltd, Daiwa Securities Co Ltd and National Securities Co Ltd as underwriters. Coupon and conversion price for the par-priced bond maturing on September 30, 1996, will be set before payment on May 2. This issue equals in size a record one by Toyota Motor Corp last December. Matsushita's shares closed on the Tokyo Stock Exchange at 1,640 yen, down 50 from yesterday.

China's first joint venture bank, Xiamen International Bank (XIB), reported a group net profit of about 14 mln Hong Kong dlrs in 1986, the bank's first full year of operation. General manager Liu Shuxun declined to give a 1987 profit forecast, saying targets were under study. Assistant general manager Wang Hongshan said the group's outstanding loans at end-1986 totalled 620 mln Hong Kong dlrs, up from 530 mln at end-1985. Deposits and interbank borrowings rose to 680 mln dlrs from 550 mln, he told Reuters. Liu said most of the group's profit came from the parent company rather than its two wholly-owned subsidiaries in Hong Kong and in Macao. The joint venture bank began operating in September 1985 but did not officially open until March 1986. Liu said the share in the joint venture of the foreign partner, Hong Kong-listed , had been cut last year to 49 pct from 60 pct. This was done because foreign banks felt the XIB's reputation would be improved if the three Chinese partners collectively held a majority stake, he said. Liu said news reports about problems concerning Panin were unfounded, but he did not elaborate. Panin Holdings reported a loss of 1.99 mln Hong Kong dlrs in 1986 after a net profit of 268,000 dlrs in 1985. The Chinese partners are Industrial and Commercial Bank of China, Fujian branch, whose share rose to 23.5 pct from 15, Fujian Investment and Enterprise Corporation 17.5 pct (15) and Xiamen Construction and Development Corporation 10 pct (10). One foreign banker said Xiamen International Bank faced the same problems as foreign bank branches in trying to compete on unequal terms with state-owned banks. The foreign banking market in Xiamen is thin and almost saturated, he added. Officials of the joint venture bank said they benefitted from contacts made through its three Chinese partners. But the foreign banker, who asked not to be named, said it faced internal competition from the Industrial and Commercial Bank. Apart from Xiamen International Bank and the International Agricultural Development Bank planned by the World Bank and the state-owned Agricultural Bank of China, Xiamen has eight foreign bank branches or representative offices, mostly of Hong Kong or overseas Chinese banks.

Considerable uncertainty surrounds the outcome of today's EC white sugar tender, traders here said, noting it remains overshadowed by European operator threats to move over 800,000 tonnes of sugar into intervention. They said that due to the dispute between the Commission and producers over the issue, it is not clear whether the Commission will authorise any exports at all or grant licences on a large tonnage. The subsidy is seen being set above 45.00 Ecus per 100 kilos, although traders are reluctant to predict a precise level after prices fell yesterday. Earlier, traders in Paris said they expected the Commission to award licences for around 50,000 tonnes of white sugar with a maximum export rebate of 45.75 to 46.0 Ecus. Last week, the Commission granted licences to end August on 60,500 tonnes of whites at a maximum rebate of 44.819.

Abu Dhabi's offshore Abu al-Bukhoosh oilfield in the Gulf, shut since an aerial attack last November, will reopen when new anti-aircraft defences are ready, and this could be in the next two months, oil industry sources said. They said the Abu Dhabi government and Compagnie Francaise des Petroles (Total) , whose Total Abu al-Bukhoosh subsidiary owns 51 pct of the field, have agreed on the reopening, but that a date has not been definitely fixed. Unidentified planes hit the field, 100 miles off Abu Dhabi, last November 25. The raid killed eight workers and destroyed the main living quarters and a bridge linking a wellhead to the main production platform. Western diplomats in the region say Iran was responsible but Tehran has blamed its Gulf War enemy Iraq. Abu al-Bukhoosh was producing 57,000 barrels per day (bpd) at the time of the attack, but the sources said it would resume at a maximum of half that level because of reduced staff and the fact only four of five wellheads were now operable. The sources said only 80 personnel can be housed in remaining accomodations, the sources said. Facilities being installed to protect the field include aircraft detection equipment, anti-aircraft missiles, housing for military personnel and helicopter landing pads, the sources said. Abu Dhabi is the largest oil producer in the United Arab Emirates, accounting for about 800,000 bpd of its total 1.15 mln bpd production, the sources said. They also said Iran was working to reopen its Sassan field, part of the same reservoir as Abu al-Bukhoosh and located only a few miles away. Sassan was heavily damaged by an Iraqi air raid only 10 days before Abu al-Bukhoosh was attacked.

The Bank of Thailand is seeking Finance Ministry approval to issue its first bond, central bank sources said. The planned three billion baht issue would carry a term of six months to one year as a short term move to mop up surplus funds held by commercial banks. The issue would offer a coupon attractive to commercial banks, which currently have an estimated 30 to 60 billion baht in funds invested in low-yield securities, the sources said. The central bank, charged with supervision of commercial banks, has previously issued only Finance Ministry bonds. Private bankers said they are awaiting a central bank decision on whether to allow commercial banks to continue holding up to 40 pct of their capital in foreign exchange or to return it to 20 pct as scheduled. The six month 40 pct ceiling expires April 6 but the banks want it extended for six more months. They said a forced cut in foreign exchange positions would worsen the local liquidity problem as commercial banks would have to convert about five billion baht worth of foreign currencies in their portfolios into baht. Senior central bank officials suggested to reporters last week that the foreign exchange ceiling will be lowered to discourage banks' use of excess funds for currency speculation. Central bank sources said some commercial banks, anticipating such a central bank decision, have been converting their foreign currencies into baht this week and lending the additional funds to the Bank of Thailand's short-term loan repurchase facility. They said the Bank of Thailand's repurchase window yesterday received offers of about three billion baht of investment funds from commercial banks, three times its normal daily amount. The repurchase window uses government bonds as an instrument with which commercial banks can borrow from or lend to the state bank. The facility is sometimes used by the central bank to set a local short-term interest benchmark through fixing its bond repurchase rates.

The Bank of Japan bought a modest amount of dollars this morning, possibly around 200 to 300 mln, dealers said. One dealer said the central bank bought about 200 mln dlrs through brokers and the rest through banks. The buying began when the dollar was at about 149.60 yen, and helped drive the U.S. Currency up to around 150, he said. Another said the central bank seemed to be trying to push the dollar up above 150 yen. But heavy selling at around that level quickly pushed the dollar back down towards 149 yen, dealers said.

The Bank of England said it had revised its forecast of the liquidity position in the money market today to a surplus of 150 mln stg after it estimated a flat position earlier this morning.

Duriron Co Inc said it has completed the acquisition of Valtek Inc for 11.75 dlrs per share following Valtek shareholder approval yesterday.

Waste Management Inc said its wholly owned subsidiary, WMX Acquisition Corp, ended its tender offer to buy shares of ChemLawn Corp at 35 dlrs a share. All shares tendered to Waste Management will be returned to shareholders as soon as practical, it said. Earlier this week, ChemLawn agreed to accept a merger proposal at 36.50 dlrs a share from Ecolab Inc in a transaction valued at about 370 mln dlrs.

Qtly div three cts vs three cts prior Pay May One Record April Eight

About half of Brazil's 40,000 seamen have returned to work after accords with 22 companies, and the national strike which began on February 27 looks close to ending, a union spokesman said. The spokesman, speaking from strike headquarters in Rio de Janeiro, estimated that 80 ships were strike-bound. The seamen have settled for 120 pct pay increases with the individual companies but are still discussing the issue of overtime payments with the shipowners' association, Syndarma.

The House Ways and Means Committee completed action on legislation to toughen U.S. trade laws, chairman Dan Rostenkowski said. The committee's consideration of one of the most controversial provisions, a plan to force major trade surplus countries to cut their trade imbalance with the United States, was deferred until the full House considers the trade bill, its sponsor Rep. Richard Gephardt said. Gephardt, a Missouri Democrat, told Reuters he was not certain the exact form his trade surplus reduction proposal would take. Last year the House approved his plan to force a 10 pct surplus cutback each year for four years, by countries such as Japan. The Ways and Means Committess' trade bill forces President Reagan to retaliate against unfair trade practices that violate international trade agreements but it allows him to wave retaliatory tariffs or quotas if the action would hurt the U.S. economy. The trade bill gives U.S. Trade Representative Clayton Yeutter more authority in trade negotiations and in decisions to grant domestic industries import relief. It also gives him authority to decide whether foreign trade practices are unfair and violate U.S. trading rights. These powers are currently held by President Reagan. The administration has strongly objected to this transfer of authority from Reagan to Yeutter. The bill also extends U.S. authority to negotiate multilateral trade agreements. The bill will be wrapped into other trade legislation and voted on in the House in April.

Noranda Aluminum Inc. said it has increased its primary aluminum prices by two cents a lb, effective with new orders as of March 25 and all shipments beginning May 1. The new price for unalloyed ingot will be 64.5 cents a lb while the new price for extrusion billet will be 72.5 cents a lb.

International Platinum Corp said it signed a letter of intent to enter into further negotiations on a joint venture exploration agreement with Degussa A.G., of West Germany, regarding several North American platinum properties. Conclusion of the agreement is subject to completion of further detailed examination by Degussa, as well as board and regulatory approvals. Under terms of the letter of intent, Degussa would contribute substantially to a three year exploration budget of 4.5 mln dlrs in return for a 50 pct interest in the venture. Degussa's contribution to the exploration budget will be based on it matching International Platinum's past exploration and acquisition costs, estimated at about two mln dlrs, and then contributing on a pro rata basis, International Platinum said. Degussa's contribution would provide a major portion of International Platinum's exploration budget, especially during the first and second year of the proposed joint venture, the company said.

Iranian Prime Minister Mir-Hossein Mousavi said Iran had "more effective" missiles at its disposal than the shore-to-sea missiles which had provoked U.S. Concern, Tehran Radio reported. A U.S. State Department spokesman said last week Iran had acquired Chinese-made Silkworm missiles which posed a greater threat to shipping in the Gulf than the weapons previously used. Tehran Radio, monitored by the British Broadcasting Corp, quoted Mousavi as saying that Tehran officially announced after its forces overran southern Iraq's Faw peninsula in February last year that it had shore-to-sea missiles. "The fact that the Americans, after so much delay, are now thinking of expressing their concern with panic is because Reagan needs this sensation now," said Mousavi, speaking after a cabinet meeting in Tehran. "We also announce today that these missiles are not the limit of our war capabilities in the Gulf," he added. Mousavi said the security of the Gulf region had nothing to do with the U.S. But Iran would resort to any action to defend the Gulf, "even those actions which are not thought probable by Westerners."

Argentine port workers began an indefinite protest against safety conditions at the port of Buenos Aires, stopping work for one hour per shift, a press spokesman said. He said three port workers had died over the last month in accidents. He said the decision to take action was made after a port worker died yesterday after being electrocuted.

India is reported to have bought two white sugar cargoes for April/May shipment at its tender today near 227 dlrs a tonne cost and freight and could be seeking a third cargo, traders said. A British operator is believed to have sold one of the cargoes, while an Austrian concern is thought to have featured in the second cargo sale, they said.

Feb 28 end Shr 18 cts vs 13 cts Net 1,541,000 vs 1,122,000 Sales 36.7 mln vs 33.5 mln Avg shrs 8,517,000 vs 8,441,000 NOTE: Share adjusted for five pct stock dividend in August 1986.

TCBY Enterprises Inc said its board has approved a three-for-two split of its common stock with a distribution to be made on April 24 to stockholders of record on April 9. The split will increase the number of outstanding shares to over 26 mln from about 17.3 mln shares now, the company said. TCBY Enetrprises is a franchisor and operator of retail stores specializing in frozen yogurt-related treats.

Qtly div 45 cts vs 45 cts prior Pay April 30 Record April 10

Fiat Spa is considering issuing a eurobond of up to 384 mln dlrs, convertible or with warrants attached for exercise into its shares still with banks after the placement of the Libyan stake last autumn, the financial daily Handelsblatt reported, quoting bourse sources. The newspaper gave no other details. But dealers said shares of Deutsche Bank AG had been strong in recent days, partly on hopes that the issue would allow the bank to place its Fiat quota with investors at a reasonable price. Deutsche was lead underwriter for the 2.13 billion dlr Fiat placement, announced on September 23. In Milan, a Fiat spokesman had no comment on the reports. A Deutsche Bank spokesman here said he had no knowledge of a possible equity-linked Fiat bond. But German banking sources said concern the bank had to take a hefty writedown for its unplaced Fiat stock had weighed heavily on its share price. Milan share dealers also said Fiat stock had been under pressure since the placement. Ordinary shares rose 20 lire to 12,880 today, but were well down from 16,600 on September 23. Sources close to Italian state-owned investment bank IMI said earlier this month that a convertible issue was being considered, but gave no details of the amount involved.

Imo Delaval said its board declared an initial quarterly dividend of 14 cts per share, payable April 24 to holders of record on April 6.

Continental Health Affiliates Inc said it repurchased about 30 pct of its June 1985 Swiss franc convertible bond offering at prices below par. The company said it continues to hedge the balance and seek opportunities to repurchase below par an increasing percentage of the bond issue. Continental said it operates and has under development 1,943 nursing home beds and 404 residential health care beds. It said that by sustaining its growth momentum, these numbers could more than double by the end of the year.

Euratom is issuing a 145 mln ECU eurobond due April 24, 1997, paying 7-3/8 pct and priced at 101-1/8 pct, lead manager Banque Paribas Capital Markets said. The bond will be available in denominations of 1,000 and 10,000 ECU and will be listed in Luxembourg. Fees comprise 1-3/8 selling concession and 5/8 pct management and underwriting combined. A Paribas official said Euratom had timed the issue to coincide with the 30th anniversary of the Treaty of Rome.

Fiat Spa said it had no plans to issue Eurobonds linked to shares still held by banks after the placement of the 15 pct Libyan stake in Fiat last autumn, a company spokesman said. "An eventual issue of bonds convertible into Fiat shares is not our responsibility," the spokesman told Reuters. "In case the operation should be finalized, the bonds would be issued by banks and not by Fiat, the spokesman said. The spokesman was commenting on West German press reports that Fiat is considering a Eurobond issue of up to 384 mln dlrs, convertible or with warrants attached for exercise into its shares still held by the banks.

The Liberian motor bulk carrier, Trave Ore, 106,490 dwt, loaded with ore, and the 2,852 dwt West German motor vessel Christa, collided late last night on the River Elbe near buoy 129, Lloyds Shipping Intelligence said. The Trave Ore proceeded by its own means to Hamburg. The Christa was taken in tow with a damaged bow. The Liberian vessel was concluding a trip from Seven Islands to Hamburg.

Brazil's labour unrest is spreading, with many banks, universities and government statistical offices on strike and more pay disputes looming. Bankworkers' leaders said that a national strike launched yesterday to press for a 100 pct immediate pay rise and monthly salary adjustments had the support of most of the 700,000 workforce. The strike today closed the stock exchanges of Sao Paulo and Rio de Janeiro. For the government the one positive development on the labour front was the gradual return to work of the nation's 40,000 seamen, who began a national strike on February 27. A union spokesman in Rio de Janeiro told Reuters about half the seamen had returned to work after accords with 22 companies and that the strike looked close to an end. Otherwise the labour scene looked bleak, with the bank strike posing the most serious problems for Brazil's crisis-laden economy. "If this goes on for more than a few days it will have a serious effect because normal financial operations will grind to a halt," said a western diplomat in Sao Paulo. Today Brazil's 50,000 university teachers in the 42 federal universities launched a national strike, with a broad political demand as well as a pay claim. David Fleischer, head of the political science department in Brasilia university, told Reuters the National Association of Higher Education Teachers wanted a full congressional inquiry into what had happened to government education funds. He said the universities were strapped for cash and that the association suspected the junior partner in the coalition government, the Liberal Front Party, PFL, of using education funds for projects which had helped their candidates in elections. The PFL holds the Education Ministry. Hardly any sectors of the economy are proving immune to the current labour unrest, caused by the return of high inflation, officially pegged at 33 pct for January-February. Other possible strikes looming include stoppages by oil industry workers and social security workers.

Gateway Sporting Goods Co said it acquired all of the shares of stock of Innovative Dental Services Inc for an undisclosed amount of cash. Gateway said the acquired company has contracts with 102 dentists in 144 locations.

Earthquake-stricken Ecuador is negotiating with Nigeria to have the African country lend it 10,000 barrels per day (bpd) of crude for export, Deputy Energy Minister Fernando Santos Alvite told Reuters. He said Ecuador was negotiating a shipments schedule and the terms of repaying the loan. Ecuador has suspended crude exports for about five months until it repairs a pipeline ruputured by a March five tremor. Santos Alvite added Ecuador is finalizing details for a program under which Venezuela would temporarily lend the country 50,000 bpd for export.

Oscar Mayer and Co Inc, a unit of Philip Morris Cos Inc, said it will redeem all of its outstanding 7.85 pct debentures due January 15, 1996 on April 30, 1987, at 1,014.50 dlrs plus accrued interest for each 1,000 dlrs prinicpal amount. A notice of redemption will be mailed to noteholders March 27, it said.

Mexican officials, led by Finance Minister Gustavo Petricioli, signed a 100 mln dlr loan with the Inter-American Development Bank to help finance the promotion of foreign tourism. The loan is for 15 years with 4-1/2 years grace at a variable interest rate. The IADB has approved previous loans totaling 207.5 mln dlrs to help finance investments of some 580 mln dlrs in Mexico's tourism sector. The total cost of the program announced today is about 334 mln dlrs, of which the IADB loan will cover 29.9 pct.

Mine Safety Appliances Co said it will sell through its German subsidiary, Auergesellschaft, its controlling interest in MSA (Africa), (PTY) Ltd, of Johannesburg, South Africa to Boart International, a wholly- owned subsidiary of Anglo American Corp of South Africa Ltd . The company said the terms of the sale were not disclosed. The company will operate as Boart-MSA (PTY) Ltd, it said. L.N. Short Jr, president of the company, said it sold the unit because of slumping profits due to South Africa's economic decline.

Epsilon Data Management Inc said it had executed a new revolving credit and term loan agreement with the Shawmut Bank N.A. It said the total credit available under the newly-signed agreement is six mln dlrs. It said the new agreement will, at its option, convert to a four-year term loan in September 1988.

Normal work has resumed at New Zealand ports as negotiations between harbour board workers and employers continue. Wellington Harbour Board Workers' Union secretary Ross Wilson told reporters talks late yesterday ended with agreement to take unresolved issues before an industrial conciliator. Wilson said the only remaining issue is the length of the union award. The dispute originally was about wage rates and the form of industry negotiations. Cook Strait ferry sailings resumed after Marlborough Harbour Board workers returned to work this morning, ending their industrial action a day early. The Waterside Workers' Federation, which struck for most of last week and held more than one mln tonnes of shipping in ports, meets on Monday and Tuesday in conciliation with the Waterfront Employers' Association. Union Secretary Sam Jennings said: "We've got two days of talks. If it's not all cleaned up by then ... I don't know what will happen."

The National Association of Realtors said sales of previously owned homes rose six pct during February from January levels to a seasonally adjusted annual rate of 3.69 mln units. The realtors' group said the sales rise was apparent across the country and reflected lower mortgage interest rates as well as more housing demand. Actual resales of homes during February totaled 241,000, up 11.6 pct from the January total of 216,000, the association said.

Modulaire Industries said it acquired the design library and manufacturing rights of privately-owned Boise Homes for an undisclosed amount of cash. Boise Homes sold commercial and residential prefabricated structures, Modulaire said.

Shr profit 25 cts vs loss nine cts Net profit 3,433,000 vs loss 1,310,000 Revs 37.1 mln vs 39.0 mln Nine mths Shr profit 28 cts vs profit 27 cts Net profit 3,883,000 vs profit 3,908,000 Revs 133.2 mln vs 132.0 mln Avg shrs 13.8 mln vs 14.2 mln Note: Current net includes gain on sale of 31 inns of 7,719,000 dlrs for qtr and 7,975,000 dlrs for nine mths.

Five regional oil producing nations will gather in Caracas tommorrow for a two-day meeting expected to center on ways to combat proposals for a U.S. tax on imported petroleum, the Venezuela's ministry of energy and mines said. Oil ministers from Mexico, Trinidad and Tobago, Ecuador and Venezuela will be on hand for the fifth meeting of the informal group of Latin American and Caribbean Petroleum Exporters, formed in 1983, it said. Colombia will also attend for the first time, as an observer nation, the ministry said. Energy and Mines Minister Arturo Hernandez Grisanti said the conference has no set agenda but one entire session Friday will be devoted to proposals for a tax on imported oil. Two of the group's members, Venezuela and Mexico, are second and third largest foreign suppliers of oil to the United States, respectively, following Canada. Venezuela, concerned about the effect such a tax would have on its exports, undertook a diplomatic push to coordinate strategy against such measures. In February, Canadian Energy Minister Marcel Masse was invited to Caracas for talks with Hernandez on proposals for an oil import tax.

Shr 69 cts vs six cts Net 421,306 vs 44,132 Revs 3,721,178 vs 3,125,935 Note: Current qtr net includes a gain of 281,000 dlrs, mostly from the sale of securities and property.

Bank of Japan Governor Satoshi Sumita said a further yen rise would have adverse effects on the Japanese economy. He told Japanese business leaders the Bank of Japan will continue to take adequate measures, including market intervention, to stabilize exchange rates if necessary, in close cooperation with other major industrialized nations. He said the current instability of exchange rates will not last. Six major nations - Britain, Canada, France, Japan, the U.S. And West Germany - agreed in Paris last month to act together to hold currencies stable. Sumita said the Bank of Japan will continue to pursue adequate and flexible monetary policies while watching economic and financial developments in and outside Japan. He said the decision to cut the discount rate on February 20 was a hard choice for the Bank because monetary conditions had already been sufficiently eased. To prevent a resurgence of inflation, the Bank will take a very cautious stance regarding developments stemming from easy credit conditions, he said. He said the latest discount rate cut to 2.5 pct should stabilize exchange rates and expand domestic demand. Commenting on the dollar's fall below 150 yen, Sumita reiterated he cannot find any specific reason for the currency's weakness. The market undertook speculative dollar selling by reacting to overseas comments by monetary authorities and trade tension, he said. Sumita repeated that the Japanese economy may gradually recover in the latter half of the 1987/88 fiscal year ending April 1, 1988, provided exchange rates stabilize.

No action has been taken yet on the Reagan Adminstration's offer to escort Kuwaiti oil tankers through the Gulf, but the issue is being discussed, U.S. Secretary of Defence Caspar Weinberger said. The offer was made to Kuwait in light of Iran's deployment of Chinese-built missiles to cover the entrance to the Gulf. Weinberger told reporters prior to a speech at Texas Christian University that he did not think Iran and the United States were moving towards a potential conflict, adding that the Straits of Hormuz at the mouth of the Gulf were still "free water."

Finance Minister Kiichi Miyazawa said major nations are taking action to stabilise exchange rates in line with their agreement in Paris last month, government sources said. Miyazawa told an Upper House session the six nations -- Britain, Canada, France, Japan, the U.S. And West Germany -- are abiding by the Paris accord. The six agreed to cooperate to stabilise exchange rates at around current levels. Miyazawa said he wishes to attend a meeting of seven major nations (G-7) expected just before the IMF/World Bank Interim Committee meeting in Washington starting on April 9. The sources quoted Miyazawa as saying Japan is trying to prevent a further rise of the yen. Japan is taking the matter seriously, he added. Asked if the six nations had agreed to stabilise the dollar at about 153 yen, the rate prevailing at the time of the Paris talks, Miyazawa declined to give specific figures and said any mention of specific rates would create an "unexpected situation."

Shr 22.9p vs 26.9p. Interim div 2.6p vs same. Pre-tax profit 40.0 mln stg vs 38.0 mln. Net profit before minorities 29.6 mln vs 30.9 mln. Turnover 825.0 mln vs 791.6 mln. Trading profit 52.8 mln stg vs 52.5 mln. Related companies profit 3.1 mln vs 1.4 mln. Interest payable 12.3 mln vs 14.6 mln. Reorganisation and redundancy costs 3.6 mln vs 1.3 mln. Tax 10.4 mln vs 7.1 mln. Minorities 1.5 mln vs 2.4 mln. Extraordinary charges 1.3 mln vs 34.2 mln.

The rebates granted at yesterday's EC sugar tender represent a further concession to producers' complaints that they are losing money on exports outside the bloc, trade sources said. They said the maximum rebate of 45.678 European currency Units (Ecus) per 100 kilos was 0.87 Ecus below what producers claim is needed to obtain the equivalent price to that offered for sales into intervention. The rebate at last week's tender was 1.3 Ecus short of the level producers thought necessary and that of the previous week was 2.5 Ecus below this level. But the sources said producers who have offered a total of 854,000 tonnes of sugar into intervention in an apparent attempt to persuade the Commission to set higher maximum rebates have given no formal indication to the Commission that they intend to withdraw these offers. The French and German operators involved would be able to withdraw the offers up to five weeks after April 1 when the sugar will officially enter intervention stores. The five-week period is the normal delay between sugar going into intervention and payment being made for it. EC officials have said that if the Commission has to buy the sugar, it is determined immediately to resell it, a move which could drive down market prices further.

West Germany's current account surplus widened to a provisional 6.6 billion marks in February from a slightly downwards revised 4.8 billion in January, a spokeswoman for the Federal Statistics Office said. The trade surplus in February widened to a provisional 10.4 billion marks from 7.2 billion in January, she added. The Statistics Office had originally put the January current account surplus at 4.9 billion marks. The February trade surplus was well up on the 6.84 billion mark surplus posted in the same month of 1986. But the current account surplus was down slightly from the 6.85 billion surplus recorded in February 1986. A Statistics Office statement said the widening of the February current account surplus compared with January was due to seasonal factors. Neither the trade nor current account figures are seasonally adjusted. February imports, measured in terms of value, totalled 32.11 billion marks, a decline of 10 pct against February 1986 but a rise of 5.5 pct against January. Exports in February, also in value terms, totalled 42.56 billion marks, 0.5 pct less than in February 1986 but up 13 pct compared with January. The Statistics Office said it was not yet able to calculate the real change in exports and imports in February. But for comparison purposes it noted that in January the average value of imports had fallen 15 pct year-on-year while the average value of exports had declined by only 4.4 pct. Within the current account, the services account had 300 mln marks deficit, supplementary trade items a 200 mln mark surplus while transfer payments posted a 3.7 billion mark deficit. Taking the first two months of 1987 together, imports in value terms fell 14 pct to 62.6 billion marks compared with a year earlier. The value of exports totalled 80.2 billion marks, a decline of 7.4 pct against the same months of 1986. The resulting trade surplus of 17.6 billion marks for January/February compares with a cumulative surplus of 14.1 billion marks in the year-ago period. The cumulative current account surplus for January and February 1987 totalled 11.3 billion marks against 11.4 billion marks a year earlier, the Statistics Office said. Bank economists said the rise in the February trade surplus reflected an improvement in the terms of trade as well as seasonal factors. The Federal Statistics Office said earlier this week that February import prices fell 0.7 pct against January while export prices were unchanged. "The rise in the nominal figures masks a lower export trend that is not expected to change for several months at least," said an economist. He said the nominal trade surplus for 1987 as a whole is likely to fall only slightly from the record 112.2 billion marks in 1986 but other economists said the surplus could fall to around 80 billion marks. An economist at the Bank fuer Gemeinwirtschaft (BfG) in Frankfurt said a two-month comparison of trade figures gave a more accurate picture of West Germany's trade position. He noted the 17.6 billion mark surplus for January and February together was lower than the 21.6 billion mark surplus posted in November and December. "The trend is clearly lower," he said. This economist, who declined to be named, said the February rise was also partly explained by special factors in January, when there had been a number of public holidays as well as extremely cold weather, both of which hindered trade.

Firms need not be pessimistic about export prospects even though foreign markets have become more difficult because of the mark's strength the Economics Ministry said. The ministry's parliamentary state secretary Ludolf Georg von Wartenberg, told a business conference German exports could start rising again in real terms during 1987, reversing the lower export trend which emerged in mid-1986. But even if the turnaround did not occur, there would be no need to worry about the economy as long as the weakness of exports did not affect currently good domestic demand. Von Wartenberg said consumer demand remained quite good but noted there had been a cooling in the investment climate. "This is certainly a reason for heightened watchfulness but not for stimulative steps," he said. The best way for Bonn to help its exporters is to work actively to promote free world trade, he added. Von Wartenberg said the economy still had good export opportunities. Price alone was not the only factor in international competitiveness, he said, adding German firms have a reputation for high quality standards, prompt delivery times and good service. Von Wartenberg said the government was in a difficult position on its trade figures. It faced international pressure to reduce its trade surplus, but West Germans were worried about the effect of the mark's strength on the country's exporters. Reports about the trade surplus, especially overseas, tended to concentrate on nominal trade figures, which rose to a record 112.2 billion marks in 1986, he said. But this rise was due entirely to the lower value of imports caused by the decline of both the dollar and oil prices. German exports have in fact been falling in real terms for sometime, he said.

Montreal Trustco Inc is issuing a 100 mln Canadian dlr, 8-1/2 pct bond due May 6, 1992 at 101 pct, lead manager Societe Generale said. The non-callable issue is of unsecured, unsubordinated debt. Denominations are of 1,000 and 10,000 Canadian dlrs and listing is in Luxembourg. Payment date is May 5. Fees are 1-1/4 pct for selling, 3/8 pct for underwriting and 1/4 pct for management including a 1/8 pct praecipuum.

West German net currency reserves rose by 300 mln marks in the third week of March to 82.0 billion, following a fall of 5.4 billion marks in the previous week, the Bundesbank said. Non-currency reserves were unchanged at about 2.5 billion marks, bringing net monetary reserves to 84.5 billion.

No action has been taken yet on the Reagan Adminstration's offer to escort Kuwaiti oil tankers through the Gulf, but the issue is being discussed, U.S. Secretary of Defence Caspar Weinberger said. The offer was made to Kuwait in light of Iran's deployment of Chinese-built missiles to cover the entrance to the Gulf. Weinberger told reporters prior to a speech at Texas Christian University that he did not think Iran and the United States were moving towards a potential conflict, adding that the Straits of Hormuz at the mouth of the Gulf were still "free water."

First Interstate Bancorp Chairman Joseph Pinola said the bank holding company would lose about 16 mln dlrs per year, after taxes, if it had to put its medium and long-term debt on non-accrual status. In an interview, he said that could result in about a 4.5 pct decline in annual earnings per share. Pinola said First Interstate, like other banks, has not yet decided to put the loans, which Brazil stopped paying interest on last month, on non-accrual status. "None of us really wants to injure negotiations that might be going on," he said. First Interstate reported to the Securities and Exchange Commission last week that it has about 339 mln dlrs in medium-to long-term loans to Brazil. It said on December 31, 1986 its nonperformind Brazilian outstanding debt totaled about 4.1 mln dlrs. First Interstate also has about 168 mln dlrs in short-term loans or trade lines to Brazil. Pinola said he believes the solution to the Brazilian debt crisis will be more political than economic, which he said he finds, "very disquieting and discomforting."

New applications for unemployment insurance benefits rose to a seasonally adjusted 341,000 in the week ended March 14 from 340,000 in the prior week, the Labor Department said. The number of people actually receiving benefits under regular state programs totaled 2,454,000 in the week ended March 7, the latest period for which that figure was available. That was up from 2,507,000 the previous week.

Great Western Financial Corp said it has called for redeemption a 150 mln dlr issue of 8.5 pct convertible subordinate debentures due 2010 on May 15. The company said each 1,000 dlrs principal amount of the debentures will be redeemed at 1,068 dlrs plus 7.08 dlrs of accrude interest. It said each 1,000 dlrs principal amount of the debentures is convertible into about 30.075 common shares at the conversion price of 33.25 dlrs a share. The stock closed at 53-3/4 yesterday.

One hundred members of Britain's ruling Conservative Party have signed a motion calling for trade sanctions against Japan to force Tokyo to open its domestic market to British goods. The government announced last week that Japan had a 5.9 billion dlr trade surplus with Britain in 1986. The Department of Trade and Industry said the government was drawing up contingency plans to force Japan into opening up its domestic markets but a spokesman said such moves were very much a last resort. Ideas being considered included blocking Japanese companies from trading in Britain and revoking licenses of Japanese operations in the London financial district.

The price of gold bullion is likely to rise in the second half of the year on increased private investor demand, West German analysts said. Gold could rise as high as 500 dlrs per ounce later this year, said Peter Witte, director of Westdeutsche Landesbank Girozentrale's trading division, after a presentation by the U.S. Mint to promote its gold and silver Eagle series coins. "A lot will depend on oil prices and developments on stock exchanges," Witte said, adding he saw gold positioned for further rises once it breaks out above 450 dlrs. Gold was fixed this morning in London at 411.30 dlrs. Despite current strong interest in gold mine stocks, many investors still want to buy physical gold, Witte said. Interest in gold mine stocks may also wane if stock exchange rallies under way in many countries start to waver. Hermann Strohmeyer, vice president of Commerzbank AG's foreign exchange trading and treasury department, said gold is poised to rise to 460 to 470 dlrs an ounce in the second half of this year. The price is unlikely to fall much below 380 or 390 dlrs an ounce, and probably will continue in a range between 380 and 430 dlrs in the first half of this year, he said.

The Bank of England said it operated in the money market this afternoon, buying 226 mln stg in bills. In band one, the central bank bought 37 mln stg treasury bills and 72 mln stg bank bills at 9-7/8 pct together with 117 mln stg band two bank bills at 9-13/16 pct. This brings total money market help so far today to 241 mln stg and compares with the Bank's revised estimate of a 350 mln stg shortfall.

said it anticipates profit for fiscal 1987 ending June 30 will be lower than fiscal 1986 earnings of 410,000 dlrs, despite an expected revenue increase of 37 pct to more than 3.5 mln dlrs. After an extraordinary expense associated with the December, 1986 withdrawal of a planned common share offering, "we expect to be modestly profitable for the year, but below the 410,000 dlrs earned in fiscal 1986," the company said. Carolian previously reported fiscal six month profit of 12,933 dlrs, excluding an extraordinary loss of 17,210 dlrs, compared to earnings of 69,829 dlrs in the prior year. The company said it anticipated fiscal 1987 earnings to be lower due to withdrawal of its share offering, computer equipment shipment delays and costs associated with sales staff expansion. A strengthening Canadian dollar against U.S. currency will also adversely affect revenues and earnings, since 85 pct of revenues are generated by sales outside Canada, said Carolian, a leading supplier of utility software for Hewlett-Packard computer systems.

Qtly div seven cts vs seven cts prior Pay May Eight Record April 17

The Bank of England said it provided about 25 mln stg in late help to the money market, bringing the total assistance today to 266 mln stg. This compares with the bank's revised estimate of a 350 mln stg money market shortfall.

The financially-troubled Farm Credit System today formally asked that the Treasury Department provide a line of credit to the system and that Congress take steps to guarantee stock held by borrowers. In testimony prepared for delivery to a Senate agriculture subcommittee hearing, Brent Beesley, president of the Farm Credit Corp, said "In order to avoid the need for continued appropriations, the Farm Credit System Capital Corp should have a line of credit from the Treasury." Beesley said in April the system would recommend a dollar amount of aid needed. In addition, Beesley urged Congress to immediately take steps to reassure borrowers from the system that their stock is secure. We urged the Congress to go on record through a resolution stating its commitment to protect the stock," Beesley said. Borrowers from the system own some four billion dlrs in stock that could be jeopardized by the mounting losses of the Farm Credit System. Beesley also said that if Congress takes action to reduce interest rates offered to farmers to below-market levels, "The government should provide this interest rate relief.

Aluminium scrap recovery and usage and output of secondary metal will continue to rise, said Shearson Lehman Brothers in a review of the secondary aluminium market which details cost and demand factors. Although primary smelting costs have declined generally in recent years, the still substantial energy cost savings offered by secondary smelters will continue to make re-melted material increasingly attractive. It takes around 15,000 kilowatt hours (kwh) of electricity to produce one tonne of primary aluminium compared with around 550 kwh for one tonne of secondary metal, Shearson said. On the demand side, developments in automobiles and packaging bode well for secondary aluminium consumption. Automobile production, although expected to fall this year, is still on an upward trend and will continue to be so for the foreseeable future and, in addition, use of aluminium castings is gaining wider acceptance in the automobile industry, particularly in the U.S. In packaging, Shearson does not expect aluminium to dominate the beverage can market in any of the other major economies to the extent it does in the U.S., But says there is evidence recycling is on the increase in other countries. In addition to the cost savings involved, technology advances now enable alloys of higher purity to be produced by the secondary aluminium industry, Shearson said. There is not likely to be a problem of availability as the U.S. Has a huge scrap reservoir and this is also true of several European countries, albeit on a smaller scale.

Madagascar's cocoa production is estimated 13 pct higher this year at 2,720 tonnes, up from 2,400 in 1986, Agriculture Ministry officials said. This improvement reflects the government's efforts over the last seven years to extend existing cocoa plantations and plant new higher yielding varieties, particularly at the northern tip of the island, they said. Last year, Madagascar exported 2,189 tonnes of high quality cocoa, up from 1,624 in 1985, the Trade Ministry said. This year's exports are estimated at 2,400 tonnes.

The St Lawrence Seaway between Lake Ontario and Montreal is still scheduled to open for the shipping season on March 31, a Seaway official said. The Great Lakes could have been open for traffic earlier this month due to the mild Winter, but scheduled repairs to the Welland Canal joining Lake Erie with Lake Ontario will keep that section closed until the April 1 opening, she said. One lock system in the four-lock Soo Canal joining Lake Superior with Huron was opened on the morning of March 22, but only three commercial vessels have been locked through so far, according to an U.S. Army Corps of Engineers official. The Soo Canal is currently only open for daylight vessel movement, with 24 hour movement allowed beginning March 29, she added.

British Petroleum Co PLC's announcement that its U.S. subsidiary intends to tender for the 45 pct of Standard Oil Co it does not already own, catapulted U.S. oil stocks sharply higher this morning, traders and analysts said. "It raises the specter of additional consolidation in the industry and that is what is boosting the other oils," analyst Rosario Ilacqua of L.F. Rothschild said. Sanford Margoshes of Shearson Lehman Brothers said "this deal shows that British Petroleum, a conservative investor that knows the oil business, is clearly confident in the U.S. oil industry, and that shines well on the U.S. companies." More

Thermo Process Systems Inc said it completed its purchase of Thermo Process Services Inc, a subsidiary of Thermo Electron Corp . Thermo Process Systems said it issued 2,590,000 shares of its common stock to Thermo Electron in connection with the sale.

The Bundesbank's options for West Germany monetary policy are limited for the foreseeable future by the delicate stage of wage negotiations between unions and employers, economists and money market dealers said. Call money fell in quite active trading today, dropping to 3.40/50 pct from 3.55/65 pct yesterday, and below the 3.50 pct treasury bill rate as a difficult month-end approached. But dealers and economists said the Bundesbank was unlikely to encourage lower rates in the foreseeable future largely for fear of upsetting the current wage round. One money market dealer for a major foreign bank said, "I don't think the Bundesbank wants rates to go up whatever happens. But it also does not want them to fall. Above all it wants to wait to see how the unions wage round goes." In West Germany, unions and employers prepare the ground for triennial wage negotiations based on detailed assessments of growth and inflation, economists said. Ute Geipel, economist with Citibank AG, said if the Bundesbank became more accommodating in monetary policy, raising fears in some quarters of a return in inflation in the medium term, unions would be obliged to curtail wage demands. As a result the Bundesbank was concerned to make no move that would interfere in the negotiating process, Geipel said. In the current round, the country's most powerful union, the IG Metall representing metalworkers and engineers, is demanding a shortening of the working week to 35 hours from the present 38-1/2 and an accompanying five pct increase in wages. The engineering employers' association, Gesamtmetall, is offering to bring in a 38-hour-week from July 1, 1988, and give a two stage wage increase -- a 2.7 pct rise from April 1 this year and another 1.5 pct from July 1, 1988. The agreement forged by IG Metall -- Europe's largest union, with 2.5 mln members -- and the employers would set the benchmark for settlements in other industries such as the public sector, banks and federal post office. Negotiations began in December and unions are hopeful they may conclude by early April, ahead of the traditional holiday period in June. Though many economists said the unions' current warning strikes and rhetoric were part of the negotiating strategy and would not lead to a repeat of 1984's damaging seven-week strikes, others said unions would not compromise greatly on their positions and there could still be conflict. This could extend the length of time in which the Bundesbank would keep its activity low-key, economists said. The money market head said the unions' humiliation by the protracted financial problems of the Neue Heimat cooperative housing venture would contribute to union obstinacy. "The unions haven't forgotten that and they will put this squarely onto the account in the negotiations," he said. In addition, the newly-elected chairman of the IG Metall union, Franz Steinkuehler, was more radical and determined than his predecessor Hans Meyer and may be set for a longer battle to achieve the best possible settlement for his membership. More than 16,000 engineering workers at 45 firms, mainly in south Germany, held warning strikes lasting up to two hours yesterday. Firms hit included Zahnradfabrik Passau GmbH and aerospace group Messerschmitt-Boelkow-Blohm GmbH. Today, 28,000 employees from 110 companies came out in warning strikes, a statement from IG Metall said. Money market dealers said that overnight call money rates would rise in the near future in any case and did not depend on a politically-inhibited Bundesbank. About eight billion marks were coming into the market tomorrow from salary payments by the federal government. As a result, some banks fell back on the Bundesbank's offer to mop up liquidity via the sale of three-day treasury bills, anticipating still lower rates before the month-end. But a pension payment date by banks on behalf of customers was due on Monday, other dealers noted. If banks were short of liquidity until the bills matured on Tuesday, rates could soar, perhaps to the 5.50 pct Lombard ceiling. Banks were well stocked up with funds, having an average 52.1 billion marks in Bundesbank minimum reserves in the first 24 days of March, well above the 50.7 billion requirement.

Less than two months after First Interstate Bancorp withdrew its bold attempt to buy BankAmerica Corp, Chairman Joseph Pinola is still looking for a good buy, but he is also looking at ways to avoid being bought. In a wide-ranging interview, Pinola said he's looking for ways to improve profitability and capital between now and 1991, "so as to resist any potential look at us...to maintain our independence, if possible." In 1991 federal regulatory changes will allow the major East Coast banks to buy banks in California. First Interstate, the fourth largest California bank, and the nineth largest nationwide, owns 24 banks in 12 western states and has franchise operations in four additional states. Bank industry sources say it is an attractive target for large U.S. or foreign banks, looking to quickly move into the lucrative California market and the West Coast region. While declining specifics on his corporate strategy, when asked if acquisitions will be part of the plan, Pinola replied, "That's undoubtedly a fair statement...it would be almost naive not to think that." Pinola characterized his acquisition strategy as "opportunistic". He said he will look for banks in management trouble that he can get at a bargain, then add management to restore profitability, or for banks in states where First Interstate already operates, then cut costs by combining resources. The exception, he said, would be Texas, where he said most of the banks are already well managed, but might be purchased at a discount because of the depressed regional economy. Pinola declined comment on what circumstances might move him to rekindle his bid for BankAmerica, saying only, "We continue to monitor and look at a lot of things and a lot of people continue to monitor and look at us." Banking analysts, however, consider another First Interstate bid at BankAmerica a long shot, not likely to happen any time soon. Pinola called his decision last month to withdraw his 3.25 billion dlr bid at the nation's second largest bank, "a very, very difficult decision." With that decision made, however, he acknowledged First Interstate may now have a difficult time keeping its number four position in the California banking community. "The competition in this state is tough," he said, noting CityBank's recent purchase of 50 financial service branches from Sears Roebuck company. "CityBank is moving rapidly to move us down to fifth and Wells Fargo down to fourth," he said. Outside California, Pinola acknowledged that Security Pacific Corp, with its recent acquisitions in Arizona, Washington and Oregon, is quickly becoming a regional competitor in areas where First Interstate has long dominated. "Security is, has been and continues to be a highly profitable and obviously well managed company," he said. He added, however, First Interstate, at the moment, has the advantages of having owned and managed regional banks longer and has the recognition advantage of having given its regional banks a common name. Pinola said while its coastal state banks are in good financial condition, First Interstate continues to sustain serious loan losses in its Rocky Mountain states, where energy, real estate and agriculture dominate the economy. Asked if he thought loan losses in those areas had peaked, he said, "I don't think it has bottomed out, because I think most of the problems are real estate-related and the real estate problems are going to be with us for several years." Pinola said another failing economic sector, agriculture in the Midwest, has slowed expansion of First Interstate's franchise operation. First Interstate has 42 franchise banks that offer First Interstate financial services in ten states. While a year ago he was considering taking his franchise operation east of the Mississippi River, Pinola said because most of the franchise banks are now in the West, expansion into the Midwest must come first. Calling the franchise system, "moderately profitable," Pinola said, "It is going to take a rejuvenation of the agriculture sector for us to commence franchising at the speed we were generating before the last year or two." On the banking industry in general, Pinola said he thinks 1987 will be another bad year for loan losses, with only banks with minimal holdings in real estate able to improve profits.

The New York Coffee, Sugar and Cocoa Exchange (CSCE) elected former first vice chairman Gerald Clancy to a two-year term as chairman of the board of managers, replacing previous chairman Howard Katz. Katz, chairman since 1985, will remain a board member. Clancy currently serves on the Exchange board of managers as chairman of its appeals, executive, pension and political action committees. The CSCE also elected Charles Nastro, executive vice president of Shearson Lehman Bros, as first vice chairman. Anthony Maccia, vice president of Woodhouse, Drake and Carey, was named second vice chairman, and Clifford Evans, president of Demico Futures, was elected treasurer.

World seaborne iron ore imports will fall sharply by the year 2000 with declining imports to the EC and Japan only partially offset by increased demand from South East Asia, a report by Ocean Shipping Consultants said. The report predicts annual world seaborne iron ore imports of 267.7 mln tonnes by 2000 versus 312.4 mln tonnes in 1985. It estimates that total bulk shipping demand from the iron ore sector will fall by almost 10 pct, or 200 billion tonne miles, with shipping demand associated with the coking trade down about 17 pct or 130 billion tonne miles. The report sees EC imports falling to 91.7 mln tonnes in 2000 from 123.6 mln in 1985 with Japanese imports falling to 89 mln from 124.6 mln tonnes. Imports to South East Asia are seen rising to 58.6 mln from 32.6 mln tonnes in 1985. It predicts that EC steel production will fall to 109 mln tonnes in 2000 from 135.7 mln in 1985 with Japanese production falling to 92 mln from 105.3 mln. South Korea and Taiwan are expected to double their output to 40 mln tonnes with Chinese production increasing by 25 mln tonnes to 80 mln, it added.

Dennison Manufacturing Co said it has signed a letter of intent to sell its Dunn Paper Co subsidiary to James River Corp for an undisclosed amount of cash, resulting in a first quarter charge against earnings. The company saiud the loss on the sale may be partly reduced by contingent payments over the next five years and will in the first quarter be more than offset by the gain from the previously-announced sale of its Hygeia Sciences Inc shares. Dunn had sales last year of about 65 mln dlrs. In Richmond, Va., James River said closing is expected by the end of April, subject to approval by both boards and on the reaching of satisfactory labor agreements.

British Petroleum Plc's plan to pay 7.4 billion dlrs for less than half of Standard Oil Co has signalled higher values in the U.S. oil patch, analysts said. "I think that BP's bid is a very strong affirmation and clear signal that they have confidence in the U.S., and they think the barrel of oil in the ground is going to go higher," said Sanford Margoshes of Shearson Lehman Brothers Inc. BP earlier today said its U.S. unit planned to tender at 70 dlrs per share for the 45 pct of Standard it does not already own. "It's a 7.4 billion dlr price that (shows) OPEC has won the war and oil prices are not going to crack," said Prescott, Ball and Turben analyst Bruce Lazier. "Behind that is a huge implication for the rest of the energy issues out there in the stock market, particularly those that are acquisition targets," Lazier said. One of those mentioned by Lazier was USX Corp, an energy-steel concern which had been courted by investor Carl Icahn and drew the attention of Australian Robert Holmes a Court last year. Rumors continue to swirl around its stock. Margoshes said he does not foresee major U.S. oil firms falling into takeover situations for several years, with the exception of possibly Amerada Hess Corp . He said most of the majors found partners in the last round of matchmaking which ended two years ago, and others restructured to the point that they have become unattractive. U.S. oil stocks rallied in response to the offer. Exxon Corp rose 1-1/8 to 88-1/2. Chevron Corp jumped 1-1/8 to 58-7/8, and Texaco climbed 1/4 to 37-3/4. Unocal Corp rose 1-3/4, while Occidental Petroleum Corp climbed 1-1/8 to 34-3/4. Amoco Corp rose 1-3/8 to 83-3/4. Standard Oil's stock was up 6-1/4 in heavy trading to 71-1/8. Earlier in the session it had been at a high of 72-1/4. Wall Street has speculated British Petroleum may boost its offer by several dlrs per share, but the company maintained it would not raise the 70 dlr bid. British Petroleum stock rose 2-1/4 to 59-5/8. Analysts said the fact British Petroleum made such a bid in the first place indicates that the British oil giant has changed its outlook for the oil industry. Analysts said last year British Petroleum held one of the more bearish positions on oil prices. "They said the real price of oil would stay at 15 dlrs (a barrel) for several years, and I think they beat a hasty retreat from that point of view," Margoshes said. "They are more appropriately today looking more optimistically. I believe they are looking at 18 dlrs (long-term)...also in their heart of hearts they believe that will be exceeded," Margoshes said. The U.S. benchmark crude West Texas Intermediate was trading today around 18.60 dlrs per barrel. Analysts said British Petroleum might have been able to buy up the rest of Standard Oil for about 50 dlrs per share when oil prices were falling last year. They said Standard Oil's brightest asset is its slightly more than 50 pct ownership of the Alaskan Prudhoe Bay oil field. Analysts also said the company has other interests in the Alaskan North Slope. Analysts said the Standard investment is extremely attractive to BP because the U.S. is the largest oil market and has hard-to-replace reserves. "I think it just fits in with their long-range plans to increase their position in the U.S. market," Dean Witter analyst Eugene Nowak said. Analysts said it also raises BP's visibility ahead of the British government's announced disposal of 31.7 pct of BP stock. The U.K. government said it would dispose of the holding sometime in the year beginning April one. After acquiring all of Standard, most of BP's reserves would be in the U.S., but only about six pct of its stock is held in the U.S. "The only way they can sell all that stock is to move it into the United States. No other market can handle all that stock," said L.F. rothschild analyst Rosario Ilacqua. In 1986, Standard Oil had net losses of 345 mln dlrs on revenues of 10.02 billion dlrs, compared to a profit the year earlier of 308 mln dlrs on revenues of 13.82 billion dlrs.

Shr loss 3.49 dlrs vs loss 15 cts Net loss 10.8 mln vs loss 459,000 Revs 4,384,000 vs 2,542,000 Year Shr loss 4.41 dlrs vs loss seven cts Net loss 13.7 mln vs loss 218,000 Revs 13.9 mln vs 8,864,000 Note: net losses included extraordinary losses of 4,904,000 in 4th qtr vs 232,000 year ago and extraordinary losses for year of 2,056,000 vs 460,000 a year ago.

Bank of England Governor Robin Leigh-Pemberton said the Paris pact agreed between six leading industrialised nations set no nominal exchange rate targets. Leigh-Pemberton said in oral evidence to a select committee that "we did not swap numbers - we reached an understanding" on how to cooperate towards stabilizing currencies at around their current levels. He said the accord had brought Britain into a form of joint currency float - but one which let it still purse an independent monetary policy. "I would concede that, since the Louvre Accord, we are acting as if we are in something," Leigh-Pemberton said. "The Louvre and Plaza accords show there is a very effective role for the (Group of) seven central banks to operate together" towards stabilising exchange rates," Leigh-Pemberton said. He did not mention this week's intervention by central banks to support the dollar, after markets decided to test the accord. Leigh-Pemberton said that "the effectiveness of this (cooperation) is actually larger than many of us had thought in the pre-Plaza days" before September 1985. He did not indicate what exchange rate levels were broadly sought by the six nations, and noted that "we are more effective in our agreement if we can leave the markets guessing." He did not indicate what exchange rate levels were broadly sought by the six nations, and noted that "we are more effective in our agreement if we can leave the markets guessing." Leigh-Pemberton said that, in principle, the Bank of England favoured full EMS membership for sterling, provided such a move did not endanger U.K. Anti-inflation monetary policy. Asked whether he wanted to see U.K. Interest rates lower, he said "the two half point cuts (this month in banks' base lending rates) have been appropriate up until now." Leigh-Pemberton said he preferred a "cautious step-by-step approach" to reducing short term interest rates, not least because "we have a potential problem with inflation." Underlying U.K. Inflation was currently around 4.0 pct, "one of the highest" among industrialised nations, he added. Leigh-Pemberton said the Bank of England had not wanted base rates to fall before the unveiling of the 1987/88 budget on March 17, but he said pressure from financial markets for such a move had proved irresistible. Base rates are now at 10 pct. Regarding sterling's relationship with oil, Leigh-Pemberton said that the pound could be seen being undervalued overall. He said the current oil price of some 18 dlrs a barrel might suggest a level of 74 on the Bank of England's sterling index, when compared with the index's level before oil prices dropped from around the 30 dlr level. The index, base 1975, closed here today at 72.1, unchanged from the previous close.

is confident a solution will be found to Brazil's foreign debt problem and is not considering declaring its Brazilian loans non-performing, president Grant Reuber said. Speaking to reporters after a speech to a Toronto business group, Reuber said: "I think at this stage it is really too early to say very much about (the Brazilian debt situation) but we're pretty confident that things will work out." He declined to comment on when such a settlement was likely. Bank of Montreal had 1.98 billion dlrs in loans to Brazil as of last September 30, the most of any Canadian bank. Brazil last month suspended interest payments on its 68 billion U.S. dlr foreign bank debt. Asked if Bank of Montreal were considering declaring its Brazil loans non-performing, Reuber replied: "We haven't really got to that point because we don't think we will have to face that issue." Some bankers in the U.S. said earlier this week that slow progress in talks between Brazil and its major foreign lenders has increased the likelihood that U.S. banks will declare their Brazil loans non-performing at the end of the quarter. Reuber told reporters the bank was still pondering its strategy regarding possible entry into the securities business after June 30 when banks and other financial institutions will be allowed full participation in the Ontario securities industry. He said price would help determine if the bank formed its own securities unit or acquired an existing investment dealer, adding that asking prices for some dealers seem "fairly high." Asked about plans for wholly owned Harris Bankcorp Inc, of Chicago, Reuber said Harris might consider acquiring more small community banks around Chicago. "In addition, I think we are giving some consideration to the possibility of extension into other states," Reuber said of Harris, although he added that any such move was unlikely this year. In his speech, focusing on current free trade talks between the U.S. and Canada, Reuber said failure to reach a deal would not represent a calamity for Canada but could lower Canada's standard of living, raise unemployment and reduce the country's world trading influence.

Transworld Liquidating Trust said it will distribute proceeds from the sale of Hilton International Co to UAL Inc to its holders on April 8. The deal is expected to close March 31, the day trading ceases in the Liquidating Trust shares. UAL will pay 632.5 mln dlrs cash, 2,564,000 shares of UAL common stock and 200 mln dlrs worth of UAL debentures to Transworld, but it may substitute cash for the securities. The initial distribution will include all the cash, stock and debentures received in connection with the sale, the company said. The shares in the Trust formerly represented shares of Transworld Corp common stock. The company said the balance of cash in the Trust will be used to satisfy all liabilities and obligations of the Trust. After satisfaction of the payments, the company will make a second distribution around April 29, it said.

Qtly div 30 cts vs 30 cts prior Pay June one Record May eight NOTE: Current dividend is equivalent to previous quarterly dividend of 45 cts per share, after giving effect to 3-for-2 stock split effective March 3, 1987.

Energy and Mines Minister Arturo Hernandez Grisanti today told a meeting of regional oil exporters the next few months will be critical to efforts to achieve price recovery and stabilize the market. Hernandez said while OPEC and non-OPEC nations have already made some strides in their efforts to strengthen the market, the danger of a reversal is always present. "March and the next two or three months will be a really critical period," Hernandez said. He said, "We will be able to define a movement, either towards market stability and price recovery or, depending on the market, a reversal." Earlier this week, Hernandez said Venezuela's oil price has averaged just above 16 dlrs a barrel for the year to date. If OPEC achieves its stated goal of an 18 dlrs a barrel average price, he said, Venezuela's should move up to 16.50 dlrs. Hernandez spoke today at the opening of the fifth ministerial meeting of the informal group of Latin American and Caribbean oil exporters, formed in 1983. Ministers from member states Ecuador, Mexico, Trinidad-Tobago and Venezuela are attending the two day conference, while Colombia is present for the first time as an observer. Hernandez defined the meeting as an informal exchange of ideas about the oil market. However, the members will also discuss ways to combat proposals for a tax on imported oil currently before the U.S. Congress. Following the opening session, the group of ministers met with President Jaime Lusinchi at Miraflores, the presidential palace. The delegations to the conference are headed by Hernandez of Venezuela, Energy Minister Javier Espinosa of Ecuador, Energy Minister Kelvin Ramnath of Trinidad-Tobago, Jose Luis Alcudiai, assistant energy secretary of Mexico and Energy Minister Guilermno Perry Rubio of Colombia.

Brazilian crude oil and liquefied natural gas production fell to an average 583,747 barrels per day in February from 596,740 in the same 1986 month, the state oil company Petrobras said. The drop was due to operating problems in the Campos Basin, the country's main producing area, where output was down to 346,011 bpd from 357,420, a Petrobras statement said. Consumption of oil derivatives totalled 1.14 mln bpd in February, 16.7 pct up on February last year but down from the record 1.22 mln bpd used in October last year. Use of alcohol fuel in February was 208,600 bpd, 42 pct above February, 1986.

Media General Inc said it raised the annual dividend on its class A and class B common stock to 68 cts a share from 64 cts. The company said it also declared a two-for-one stock split of both stock issues, which is subject to shareholder approval of an increase in the number of authorized class A shares. Media General said the increased dividend is payable June 12 to shareholders of record May 29. The proposed stock split will be paid May 29 in shares of class A shares, the company said. The company said it also approved an amendment to its articles of incorporation allowing class B shares to be coverted into class A shares at the option of the holder. Media General said the moves should broaden investor interest in its class A stock.

Northwest Aluminum Co said it will open a second pot line in mid-May, bringing the smelter here to 80 pct of its production capacity. Northwest Aluminum President Brett Wilcox, who leased the 30-year-old smelter from Martin Marietta Corp., said production would increase from around 45 tons a year at present to just over 70 tons. Martin Marietta closed and mothballed the smelter in 1984. Northwest Aluminum reopened it last December. Wilcox said a good aluminum market and several months of successful operation led to the decision to expand production.

has laid off 260 employees, almost its entire Far East staff, its Hong Kong office general manager Elliott Burnside told Reuters. He also said calls by two of its container ships to Busan, South Korea and Kaohsiung, Taiwan, had been cancelled. He declined comment on local press reports that U.S. Lines planned to suspend operations because of failure to restructure its 1.27 billion U.S. Dlr debt, but said the firm would make an announcement later today. U.S. Lines filed for protection from its creditors under Chapter Eleven of the U.S. Federal law last November. The English-language South China Morning Post said U.S. Lines decided yesterday to sell its two remaining transpacific service fleets and assets and those of its U.S.-South America operation. It quoted a letter by company's chief executive Charles Hiltzheimer that said the ships and assets will be bought by rival U.S. Shipping companies, subject to approval by their boards. U.S. Lines' Far East operations comprise offices in Hong Kong, Singapore, Manila, Busan, Seoul, Tokyo, Yokohama, Kobe and Osaka, Burnside said.

Outgoing United States Ambassador Stephen Bosworth told a news conference he did not think the Philippines would follow Brazil's example and suspend interest payments on foreign loans from commercial banks. "I see no evidence that the Philippine government even contemplates doing that. It has said at the outset that it accepts the legitimacy of these debts and it is determined over time to meet its obligations fully," he said. Philippine officials and a 12-bank committee have been meeting for the past four weeks in New York in a bid to reschedule 9.4 billion dlrs of foreign debt. Bosworth said the United States strongly supports Manila's bid to put its international financial situation in order and that the private bank creditors were aware of that. "I think there is no question that the private banks are aware of the views of the U.S. Government ... I am confident they will take those views into account when they make their own decisions," Bosworth said. He added: "These are private banks. They are responsible to their shareholders and they have to make their decisions on their own. But I am confident they understand the views of the United States and our strong support."

Philippine sugar production in the 1987/88 crop year ending August has been set at 1.6 mln tonnes, up from a provisional 1.3 mln tonnes this year, Sugar Regulatory Administration (SRA) chairman Arsenio Yulo said. Yulo told Reuters a survey during the current milling season, which ends next month, showed the 1986/87 estimate would almost certainly be met. He said at least 1.2 mln tonnes of the 1987/88 crop would be earmarked for domestic consumption. Yulo said about 130,000 tonnes would be set aside for the U.S. Sugar quota, 150,000 tonnes for strategic reserves and 50,000 tonnes would be sold on the world market. He said if the government approved a long-standing SRA recommendation to manufacture ethanol, the project would take up another 150,000 tonnes, slightly raising the target. "The government, for its own reasons, has been delaying approval of the project, but we expect it to come through by July," Yulo said. Ethanol could make up five pct of gasoline, cutting the oil import bill by about 300 mln pesos. Yulo said three major Philippine distilleries were ready to start manufacturing ethanol if the project was approved. The ethanol project would result in employment for about 100,000 people, sharply reducing those thrown out of work by depressed world sugar prices and a moribund domestic industry. Production quotas, set for the first time in 1987/88, had been submitted to President Corazon Aquino. "I think the President would rather wait till the new Congress convenes after the May elections," he said. "But there is really no need for such quotas. We are right now producing just slightly over our own consumption level." "The producers have never enjoyed such high prices," Yulo said, adding sugar was currently selling locally for 320 pesos per picul, up from 190 pesos last August. Yulo said prices were driven up because of speculation following the SRA's bid to control production. "We are no longer concerned so much with the world market," he said, adding producers in the Negros region had learned from their mistakes and diversified into corn and prawn farming and cloth production. He said diversification into products other than ethanol was also possible within the sugar industry. "The Brazilians long ago learnt their lessons," Yulo said. "They have 300 sugar mills, compared with our 41, but they relocated many of them and diversified production. We want to call this a 'sugarcane industry' instead of the sugar industry." He said sugarcane could be fed to pigs and livestock, used for thatching roofs, or used in room panelling. "When you cut sugarcane you don't even have to produce sugar," he said. Yulo said the Philippines was lobbying for a renewal of the International Sugar Agreement, which expired in 1984. "As a major sugar producer we are urging them to write a new agreement which would revive world prices," Yulo said. "If there is no agreement world prices will always be depressed, particularly because the European Community is subsidising its producers and dumping sugar on the markets." He said current world prices, holding steady at about 7.60 cents per pound, were uneconomical for the Philippines, where production costs ranged from 12 to 14 cents a pound. "If the price holds steady for a while at 7.60 cents I expect the level to rise to about 11 cents a pound by the end of this year," he said. Yulo said economists forecast a bullish sugar market by 1990, with world consumption outstripping production. He said sugar markets were holding up despite encroachments from artificial sweeteners and high-fructose corn syrup. "But we are not happy with the Reagan Administration," he said. "Since 1935 we have been regular suppliers of sugar to the U.S. In 1982, when they restored the quota system, they cut ours in half without any justification." Manila was keenly watching Washington's moves to cut domestic support prices to 12 cents a pound from 18 cents. The U.S. Agriculture Department last December slashed its 12 month 1987 sugar import quota from the Philippines to 143,780 short tons from 231,660 short tons in 1986. Yulo said despite next year's increased production target, some Philippine mills were expected to shut down. "At least four of the 41 mills were not working during the 1986/87 season," he said. "We expect two or three more to follow suit during the next season."

The Indian State Trading Corporation (STC) bought a 20,000 tonne cargo of optional origin rapeseed oil at its vegetable oil import tender yesterday, traders said. The oil was for June 20/July 20 shipment at 321 dlrs per tonne cif. Traders said the STC attempted to buy eight cargoes of processed palm oil but its price ideas were too low for exporters. It also failed to secure soyoil for the same reason, they said.

Italy's gross domestic product (GDP) will grow three pct in real terms this year and 2.7 pct in 1988, said economic information company Data Resources Europe Inc (DRI). Michel Girardin, DRI Europe's senior economist, said at a conference that Italian GDP growth this year "will be mainly driven by consumption and especially investment." Girardin said the driving force behind GDP growth next year will shift from domestic demand to exports as a result of expected depreciation of the lira against the major currencies. Italy's budget ministry said yesterday that GDP rose 2.7 pct in real terms in 1986. DRI forecast that inflation, which was an average 6.3 pct in 1986, will be under five pct this year and that interest rates should drop two pct. Girardin said the lira is expected to appreciate 14 pct against the dollar this year following last year's 22 pct appreciation. An expected German mark appreciation against the dollar means that the lira should lose about six pct of its value relative to the German currency, he said. DRI estimates that foreign demand for Italian products should grow by a 3.2 pct this year following last year's 6.2 pct increase.

Net shr 7.6 cents vs 3.0 Int div 3.0 cents vs nil Net 16.93 mln vs 5.47 mln Sales 160.14 mln vs 2.35 mln. Other income 6.29 mln vs 10.05 mln Shrs 223.16 mln vs 183.68 mln. NOTE - Two-for-seven non-renounceable rights issue of 8.0 pct five-year subordinated convertible redeemable unsecured notes at 2.50 dlrs each. Each note is convertible into one share. Div pay May 1. Div and issue reg April 16. Net is after tax 7.04 mln dlrs vs 3.82 mln, interest 2.52 mln vs 1.14 mln, depreciation 2.43 mln vs 123,000 and minorities 3.41 mln vs 2.91 mln but before net extraordinary loss 821,000 vs nil. Company is owned 46.99 pct by Elders IXL Ltd .

The Bundesbank entered the open market in the late morning to buy dollars against yen in concert with the Bank of France, dealers said. The Bundesbank came into the market when the dollar was around 148.10 yen just after it had fallen below 148 to touch 147.80 at 1027 GMT. The move had little effect, with the dollar still testing 148 yen ahead of the official fixing. Dealers said the intervention was for fairly small amounts, in contrast to the Bundesbank's activity on Wednesday when dealers reported it bought about 100 mln dlrs. The Bundesbank had no comment.

said in a statement that it has acquired an eight pct interest in Pancontinental Mining Ltd for a sum equivalent to 1.2 billion Belgian francs. Pancontinental operates gold and coal mines in Australia and natural gas and oil fields in Canada. Union Miniere said the location of its interest within the Pancontinental group will be decided later. It did not elaborate. Union Miniere is a wholly owned subsidiary of Societe Generale de Belgique .

Very stormy weather is likely in the North Sea through Saturday, disrupting shipping in the region, private forecaster Accu-Weather Inc said. Rain will accompany the strong winds that are expected over the North Sea today into tonight. Saturday will also be very windy and cooler with frequent showers. Winds today will be southwest at 30 to 60 mph, but will become west to northwest tonight and Saturday at 25 to 50 mph. Waves will build to 20 to 30 feet today and tonight and continue Saturday. Wind and waves will not diminish until late in the weekend.

A Liberian motor bulk carrier, the 72,203 dw tonnes Nikitas Roussos, which was grounded in the Suez canal yesterday, has been refloated and is now proceeding through the the canal, Lloyds Shipping Intelligence said.

The tonnage of goods passing through Ivory Coast's main port of Abidjan rose 2.3 pct last year, according to the Ivorian Chamber of Commerce. Its monthly report said 9.47 mln tonnes of goods passed through the port last year compared with 9.26 mln the year before. Exports fell to 3.75 mln from 3.89 mln tonnes while imports rose to 5.72 mln from 5.37 mln.

Greek Prime Minister Andreas Papandreou said today that the Greek armed froces were ready to tackle any aggressors following the sailing of a Turkish research vessel and warships towards disputed waters in the Aegean Sea. Papandreou told an emergency cabinet meeting in Athens "the military readiness of our country is able now to give a very hard lesson if our neighbours (Turkey) were to carry out military actions." He said the activities of the research vessel could be aimed at partitioning the Aegean. "The air force, navy and army are in a state of alert," General Guven Ergenc, Secretary General of the Turkish General Staff, told a news conference. He said the Turkish research ship Sismik 1, escorted by an unspecified number of warships, would sail into disputed waters in the Aegean Sea tomorrow morning. Ergenc told Reuters later that all leave had been cancelled for members of the armed forces in the Aegean coast area. The Turkish government said yesterday it had licensed the state-owned Turkish Petroleum Corp to explore for oil in international waters around three Greek islands off Turkey. Greece and Turkey have long-standing disputes over areas of the Aegean and the presence of Turkish troops in Cyprus. The latest row erupted when the Greek government said last month that it was taking control of a Canadian-led consortium which was already producing oil off the Greek island of Thassos and would drill in the same area after the takeover. Ergenc told the news conference the alert followed a government decision that Turkey should protect its interests "because of measures Greece has been taking in the Aegean in violation of international agreements." Asked how Turkey would react if Greece attacked any of the vessels, he said "If there is an attack, it is clear what has to be done. An attack on a warship is a cause for war." But he added "We are not in a state of war. The measures taken by the military are directed towards protecting our rights." Greece said yesterday it would defend its national rights in the Aegean and urged Turkey to accept reference of the dispute to the International Court of Justice in The Hague. Turkish Foreign Ministry spokesman Yalim Eralp told reporters today this was unacceptable because of preconditions Athens had attached. In Athens, Greek Prime Minister Papandreou said that if the Turkish vessel Sismik 1 began research operations "we will hinder it, of course not with words, as it cannot be stopped with words." Greek newspapers said the armed forces were on alert and navy ships had gone to the Aegean. But government spokesman Yannis Roubatis did not confirm the move, saying only "The Greek fleet is not at its naval base." Papandreou said that a map issued in Turkey showed 95 pct of the areas proposed for research were on the Greek continental shelf. Papandreou told the U.S. And NATO that if they had a part in orchestrating the present crisis in order to force Greece to negotiate with Turkey, the Greek government would not accept it. Papandreou has maintained in the past that he will not negotiate with Ankara until Turkey recognises Greek rights in the Aegean and withdraws its troops from Cyprus. He said that in the case of war with Turkey it would not be possible for Greece to discuss the future of American military bases here. Asked by reporters if he would close the U.S. Bases in Greece in the event of war, Papandreou replied "Obviously, and perhaps even before the war."

Syndication for Elders IXL Ltd's 100 mln Australian dlr note issuance facility has been completed, arranger Westpac Finance Asia Ltd said. It said the facility, which is half underwritten and half non-underwritten, has been over-subscribed and underwriters' allocations are reduced from the original commitments. The managers of the facility are Westpac, Bank of Montreal Asia Ltd, BOT International (HK) Ltd, Commonwealth Bank of Australia and Credit Industriel et Commercial de Paris. They will be underwriting six mln dlrs each instead of 10 mln dlrs. Co-managers are Banque Bruxelles Lambert, Ka Wah Bank, Kyowa Bank, Saitama Bank, Sanwa Bank and Yasuda Trust and Banking Co Ltd. They will be underwriting three mln dlrs each instead of five mln dlrs. BT Asia Ltd is junior co-manager with a two mln dlr commitment. Westpac launched the facility early this month at 200 mln dlrs but soon reduced it to 100 mln dlrs and amended the terms due to the market's cool response. The underwriting margin was raised to 10 basis points over the Australian dlr bank bill rate. Originally the margin was set at 6.25 basis points for up to 50 mln dlrs and at 2.5 basis points for the remainder.

Hanson Trust Plc said its U.S. subsidiary, Hanson Industries, sold PCR Inc, a specialty chemicals unit, for 6.25 mln dlrs in cash to . Hanson Industries said it acquired PCR Inc in 1986 as part of its purchase of . PCR Inc posted an operating loss in 1986 of 381,000 dlrs on sales of 13.2 mln dlrs, the company said.

said it signed a letter of intent to sell its Hudson's Bay Wholesale unit to a private investment group. Terms were not disclosed. The company said Normal Paul, a member of the private investment group, will head Hudson's Bay Wholesale management. The unit's existing management group, headed by Ron McArthur, will also participate in ownership, the company said without elaborating. The wholesale unit is a major distributor of tobacco, confectionary and other products through 34 wholesale and 28 vending branches in Canada. 1986 sales were 798 mln dlrs. Hudson's Bay said the sale of its wholesaling unit is part of a program to concentrate financial and management resources on its core business of department stores and real estate.

NATO ambassadors met in emergency session today to discuss tension between members Greece and Turkey over a disputed area of the Aegean Sea on the Western Alliance's southern flank, Greek diplomatic sources said. They said no information had yet emerged from the meeting, called after statements from both countries that they were prepared to back rival oil exploration teams with warships. General Guven Ergenc, Secretary General of the Turkish General Staff, said today the Turkish research ship Sismik 1, escorted by an unspecified number of warships, would sail into disputed waters in the Aegean Sea tomorrow morning. Greek Prime Minister Andreas Papandreou said "The military readiness of our country is able now to give a very hard lesson if our neighbours (Turkey) were to carry out military actions." The row erupted when the Greek government said last month that it was taking control of a Canadian-led consortium which was already producing oil off the Greek island of Thassos and would drill in the same area after the takeover.

The British government may revoke the licences of selected Japanese banks and securities companies operating in London's financial City when they come up for renewal next summer if progress is not made towards opening up Japan's markets to foreign competition, government sources said. "We can't say "yes, we are going to do it (revoke licences)" but this is definitely being considered," an official said. His comments came after the government was formally urged today by a cross-section of influential MPs to take joint retaliatory action with the United States against Japan. Britain has grown increasingly impatient with Japanese trade practices. "There's a sense of urgency here now, but the emphasis is on securing - not undermining - our interests in Japan," another government official told Reuters. Prime Minister Margaret Thatcher said on Thursday that Britain would not hesitate to use new powers contained in the Financial Services Act 1986 and the Banking Bill to retaliate against countries that do not offer reciprocal market access. She clearly had Japan in mind, government sources said. The U.K. Last year showed a trade defict with Japan of 3.7 billion stg, official figures show. A parliamentary motion, signed by 98 MPs, today urged the U.K. Government to "coordinate action with the President of the United States, and through the Department of Trade and Industry, to suspend all further applications from Japanese communications companies for equipment approval by the British Approvals Board for Telecommunications, and all further applications from Japanese financial institutions for licences" until authorities in Japan stopped imposing what the MPs called "restrictive conditions" on the bid by (Cable and Wireless PLC) (cawl.L) and its U.S. And Japanese partners for a stake in Japan's international telecommunications market. The motion for retaliatory steps came from a cross-section of MPs, reflecting the strength of feeling inside Parliament. Parliamentarians said their action would increase pressure on the Conservative government to take firm action. Officials said another option now being considered by the U.K. Is to refuse issuing new banking licences to Japanese institutions. That could be done under the government's proposed Banking Bill now moving through parliament. 58 Japanese financial institutions are authorised to deal in London, of which 29 are banks. In Tokyo, 14 London-based firms are authorised to do financial business, officials said. The new financial services and banking acts offer Britain an alternative for retaliation which would be otherwise denied under legally-binding international trade agreements. "The Financial Services Act gives (Trade and Industry Secretary Paul) Channon power to stop firms from engaging in investment, banking and insurance," one official said. "This point has been made to the Japanese at official level a number times," the official added. Britain and France are now working together to urge that the European Community take collective action against Japan, but by working within EC treaties, another official said. British Trade Minister Alan Clark said this week in a radio interview that the European Community should build barriers against Japanese imports through certification procedures similar to those facing European exporters in Japan. "There comes a point where you cannot resist any longer," he said, adding "(such barriers) can't be put in place overnight." Clark said the issue of reciprocity regarding visible trade "strikes at the basis of whether British industry is to have a fair access to an extremely large market (Japan) which is itself in a very dominant position (in) certain aspects of our own domestic market ... It is really a question of fairness." The situation is only likely to worsen following news that Japan's trade surplus with the rest of the world rose by more than 70 pct in February, year-on-year, to 8.14 billion dlrs from 5.7 billion in January, political sources said. But Clark said in his interview that the issues of visible trade and access to financial markets should be kept separate. Should Britain decide to act against Japanese financial institutions, it would most likely focus on the smaller, rather than larger ones, to minimise any risks to its role as a global business centre, government sources said. Japan's four largest securities houses are members of the London Stock Exchange. In Washington, White House officials said President Reagan was ready to impose retaliatory trade action against Japan for breaking its semiconductor agreement with the United States. There was no immediate indication when Reagan might act on the recommendations of his Economic Policy Council to curb Japanese exports to the United States but officials said the move could come today or early next week. Trade sources said the actions being weighed by Reagan included tariffs on a wide variety of Japanese exports which use semiconductors.

Allegheny International Inc said it sold three overseas subsidiaries to Reil Corp Ltd, a North Sydney, Australia, investment group. Terms were not disclosed. The units sold were Sunbeam Corp Ltd Australia, Sunbeam New Zealand Ltd and Victa (U.K.) Ltd. The units make and distribute various products, including lawn mowers, small appliances and sheep shearing equipment. They employ a total of about 1,750.

Chock Full O'Nuts Corp is raising 60 mln dlrs through an offering of convertible subordinated debentures due 2012 with a seven pct coupon and par pricing, said lead manager Drexel Burnham Lambert Inc. The debentures are convertible into the company's common stock at 10.75 dlrs per share, representing a premium of 24.6 pct over the stock price when terms on the debt were set. Non-callable for three years, the issue is rated B-2 by Moody's Investors and B-minus by Standard and Poor's. Bear Stearns and Ladenburg Thalmann co-managed the deal.

Nigeria and France have signed a bilateral agreement to reschedule Nigeria's official debt to France, government sources said. The accord was signed here yesterday by Nigerian Finance Minister Chu Okongwu and senior French Treasury officials after talks with CoFACE, the French export credit agency, they said. The agreement came after a similar agreement with Britain this week and follows an accord between Nigeria and the Paris Club of western creditor governments in December to reschedule some 7.5 billion dlrs of official debt. The Paris Club multilateral agreement concerned medium and long-term debt due between September 1986 and end-1987 over 10 years with five years grace. As with all Paris Club rescheduling accords, specific interest rates and other details have to be negotiated on a bilateral basis with the creditor countries involved. No details of the discussions here were immediately available. The agreement signed on Tuesday with Britain's Export Credits Guarantee Department was the first in Nigeria's tour of creditor nations. Okongwu left Paris today for London and is due back in Nigeria on Monday, diplomatic sources said. Nigeria is hoping that further bilateral accords can be concluded soon as this could encourage official export credit agencies to renew insurance cover for exports to Nigeria. CoFACE suspended its cover for medium and long-term export contracts with Nigeria in 1983, but maintained its cover for current trade deals involving consumer goods with six-month credit periods, CoFACE sources said. "We have an open position regarding Nigeria," the sources said, adding that it was for French Finance Minister Edouard Balladur to decide whether to renew full insurance cover. Nigeria is due to receive 900 mln dlrs in fresh export credits this year from official agencies under a structural adjustment program drawn up by Nigeria and the World Bank to reschedule part of the country's 19 billion dlr foreign debt. But these credits cannot be approved until the export credit agencies agree to resume insuring the credits. French exports to Nigeria were 3.42 billion francs in 1986, down from 4.94 billion in 1985, while Nigeria's exports to France were 5.63 billion francs in 1986, down from 15.33 billion in 1985. Details of Nigeria's official debts to France were not immediately available.

Shr 42 cts vs 42 cts Net 19.1 mln vs 19.5 mln Revs 184.9 mln vs 185.1 mln 12 mths Shr 2.17 dlrs vs 2.53 dlrs Net 97.0 mln vs 111.8 mln Revs 793.3 mln vs 828.8 mln Avg shrs 40.9 mln vs 40.5 mln NOTE: Year-ago restated.

Shr loss 16 cts vs loss seven cts Net loss 3,450,000 vs loss 1,508,000 Sales 56,000 vs 1,187,000 Avg shrs 22,568,000 vs 20,591,000 Year Shr loss 38 cts vs loss 29 cts Net loss 7,977,000 vs loss 6,005,000 Sales 3,699,000 vs 2,391,000 Avg shrs 21,111,000 vs 20,578,000

Greece and Turkey's NATO allies today called on both countries to avoid any action that could aggravate an explosive situation in the Aegean and "avoid recourse to force at all costs." After an emergency meeting of NATO ambassadors, a statement was issued saying "the present situation damages the interests of Greece and Turkey, and of the Alliance as a whole." Secretary-General Lord Carrington also offered himself as a mediator in the dispute on the Western Alliance's southern flank. The meeting was called after reports that warships of both countries were sailing towards a disputed oil exploration zone of the Aegean. The statement said the tensions in the area had reached a serious level and called on both countries to begin immediate discussions. "Any intensification would make things worse," it added. No attempt was made at the meeting to resolve the complex dispute which was aimed at damage-limitation. Carrington said, "I am of course anxious to help in any way I can, provided that both Greece and Turkey, and the other allies, wish me to do so."

The Baltic International Freight Futures Exchange (BIFFEX) said it agreed to pursue negotiations with other futures markets on the Baltic Exchange with a view to merging into a new futures exchange. Legal advisers have already been instructed to implement amalgamation of the London Potato Futures Association, the Soya Bean Meal Futures Exchange and the London Meat Futures Exchange. The London Grain Futures Market has also discussed merging with the other markets. The aim of the merger is to seek Recognised Investment Exchange status as required by the 1986 Financial Services Act.

McLean Industries Inc said its two shipping subsidiaries -- UNITED States Lines Inc and United States Lines (S.A.) Inc -- have agreed in principle to dispose of substantially all their remaining operating shipping assets. The units have been operating under protection of Chapter 11 of the U.S. Bankruptcy Code since last November. McLean said U.S. Lines has a letter of intent with CSX Corp's Sea-Land Corp subsidiary to transfer assets of its Transpacific/Hawaii/Guam Service to Sea-Land. McLean said Sea-Land has tentatively agreed to pay 125 mln dlrs for six vessels, certain port facilities, and various other equipment used in U.S. Lines' Transpacific service and theree Lancer class vessels and subsidy rights owned by the two McLean subsidiaries. As previously announced, U.S. Lines (S.A.) will transfer its South American Service to 's American Transport Lines Inc subsidiary in return for a fixed lease payment for the four Lancer class vessels and a participation based on American Transport's South American revenues. McLean said the agreement also calls for Crowley to release U.S. Lines (S.A.) for any damages and unpaid charter hire for three vessels leased to U.S. Lines (S.A.) by Crowley which have been returned to Crowley. McLean said the minimum lease payments will be seven mln dlrs and estimated revenue participation during the first four years at about 16 mln dlrs. In addition, U.S. Lines (S.A.) subsidiaries in Brazil and Argentina will be sold to American Transport. The company said both agreements in principle have been approved by directors of the companies involved, but still need court, regulatory and lender approval. McLean said it is requesting the bankruptcy court to schedule a hearing on its motion to approve the agreements, adding that the court has granted the company's request to extend for 90 days the period for the shipping companies to file a proposed plan of reorganization. It said the planned transactions will leave McLean with no significant shipping assets except 12 New York class vessels, which are not in operation and are expected to be sold. McLean said its shipping units are returning the vessels operating in foreign commerce to United States ports to permit the planned transfer to purchasers. The company said U.S. Lines will maintain its weekly service from the U.S. West Coast to Hawaii and Guam until the vessels are transferred and the transaction is completed.

The United States said it was doing what it could to ease tension in the Aegean as Greek and Turkish warships headed for a possible clash over oil drilling rights on the sea's continental shelf. State Department spokesman Charles Redman told reporters, "We have urged both sides to exercise restraint and avoid any actions which might exacerbate the situation." "In the light of the most recent developments, we are consulting with the parties and with other interested allies on means to reduce tensions," he added. Redman declined to elaborate on what Washington was doing, but he said an emergency meeting of NATO ambassadors in Brussels on the subject was only one path it was pursuing. He also refused to say which side was to blame for the renewed confrontation, saying Washington was still trying to ascertain all the facts, as Prime minister Andreas Papanderou said Greece was prepared to tackle any aggressor. "The crucial point here is that these are two friends and allies. We don't want to see tension rise and we are doing what we can to see if we can help here," Redman said.

Shr loss 29 cts vs loss 15 cts Net loss 513,542 vs loss 263,708 Revs 38,000 vs nil Year Shr loss 24 cts vs loss 10 cts Net loss 417,552 vs loss 142,010 Revs 171,000 vs nil

Malaysia said it expects a natural rubber shortage in April and May because of the effects of current wintering on rubber trees. The expected shortage and stronger demand for rubber goods, especially condoms and surgical gloves by consumers, is likely to push up prices, the Malaysian Rubber Exchange and Licensing Board said in its latest monthly bulletin. During the annual wintering period from February to April rubber trees shed their leaves and latex output is very low.

A Turkish research ship, escorted by warships and air force planes, left for the Aegean to press Ankara's case in an escalating row with Greece over oil rights, the semi-official Anatolian News Agency said. The ship set off this morning from the Dardanelles port of Canakkale with flags flying and watched by sightseers, the agency said. Prime Minister Turgut Ozal said last night the ship would not go into international waters unless Greece did the same. "We are waiting for the first move from them," he told Turkish Radio in London.

Greek Prime Minister Andreas Papandreou expressed "restricted optimism" about a crisis with Turkey over disputed oil rights in the Aegean Sea. Papandreou was speaking to reporters after briefing opposition political leaders on the latest developments in the row as a Turkish research ship escorted by warships and combat aircraft headed for the Aegean. He and other political leaders spoke of qualified optimism following a statement by Turkish Premier Turgut Ozal last night that the research vessel would not enter disputed waters as previously annnounced unless Greek vessels did so. The Prime Minister declined to answer reporters' questions about an announcement last night that Greece had asked the United States to suspend operations at one of the American military bases here due to the crisis. But Opposition leader Constantine Mitsotakis told reporters he thought the suspension would be temporary until the crisis is resolved. A U.S. Defence Department official in Washington said the station was still functioning. Communist Party leader Harilaos Florakis said here "the climate is calmer today." Greek newspapers reported that the Greek army, navy and air force had been moved to strategic Greek islands in the Aegean and to the land border with Turkey at the Evros River. But there was no official word on military movements apart from a comment by the government spokesman that the Greek navy was no longer in port. The United States, NATO and the United Nations all called on Greece and Turkey to exercise restraint. Greek U.N. Representative Mihalis Dounas said in a letter to the secretary-general that the dispute was of a legal nature and could be settled in the International Court in the Hague.

The Islamic Development Bank (IDB) approved a total of 12.3 mln dlrs of project loans and technical assistace to member countries, a bank statement said. It said Senegal was given a 5.5 mln dlrs loan for a rice cultivation project, Guinea 4.6 mln dlrs for construction of schools and 1.2 mln dlrs for Comoros for petroleum facilities. Sudan, Sierra Leone and Gabon were given a total of 980,000 dlrs of technical assistance. The bank also extended a 10 mln dlrs line of leasing to a Malaysian Bank and 1.9 mln dlrs to a Tunisian-Saudi Investment Company, the statement said.

Turkey"s standoff with Greece over Aegean oil rights appeared at an end after the government said it had been assured Athens would not start prospecting in disputed waters. A Foreign Ministry statement last night hinted Turkey was claiming victory. A Greek-based international consortium, North Aegean Petroleum Co., Had given up plans to start searching for oil in international waters east of Thasos island, it said. "In the same way it has been understood that Greece will also not undertake oil activities outside its territorial waters," the statement added. An Ankara Radio report monitored in London said Foreign Minister Vahit Halefolu had called on Greece to engage in dialogue over the dispute. It was impossible to resolve the dispute by crises, he was quoted as saying. "We call on Greece to come and engage in a dialogue with us - let us find a solution as two neighbours and allies should," he said. The radio said Halefoglu had briefed the leaders of a number of the country"s political parties on the latest developments. Turkey sent the survey ship Sismik 1 into the Aegean yesterday, flanked by warships, to press its case but having earlier said it would go into disputed waters, declared the vessel would stay in Turkish areas. Prime Minister Turgut Ozal, in London on his way home after heart surgery in the United States, is expected to receive an ecstatic welcome from thousands of Turks when he returns today. He was in defiant mood last night, telling Turkish radio: "We can never accept that Greece should confine us to the Anatolian continent. If there are riches under the sea, they are for mankind." Despite the end of the crisis, Turkish officials acknowledged that the underlying dispute over delimiting the continental shelf in the Aegean remained unsolved. Turkey alleged that the consortium"s plans would have infringed the 1976 Berne agreement between the two countries, which called for a moratorium on any activities until the delimitation was agreed. Greece earlier this month declared it considers the accord inoperative.

Turkey pulled warships back from close escort of its Sismik 1 survey ship as the threat of conflict with Greece over oil rights in the Aegean Sea abated. The semi-official Anatolian Agency said naval vessels ended their close protection of the ship as it continued work in Turkish waters but were following it at a distance. Popular newspapers headlined what they saw as Turkish resolve and international pressure forcing Greece to pull back from planned exploration in disputed international waters. "Intense United States and NATO efforts bore fruit: Greece will stay in its national waters," said the daily Gunes. The top-selling Hurriyet topped its front page with: "Our resolute stand made Greece see reason." But two newspapers, Cumhuriyet and Milliyet, noted in identical headlines -- "Crisis Frozen" -- that the basic disagreement over exploration rights remained unsolved. The confrontation eased after the Turkish government said it had been assured Athens would not begin prospecting in disputed waters.

Finance Minister Kiichi Miyazawa said that the dollar's drop today to 145 yen is partly attributable to the perception inside and outside Japan that the country has failed to fulfill its promise to expand domestic demand. He told a Lower House budget committee in Parliament that it was natural for other nations to think that Japan is not doing enough because of the delay in the passage of the 1987/88 budget. The budget has been delayed by opposition boycotts of Parliament to protest government plans for a new sales tax.

An investor group trying to acquire GenCorp Inc said it would move to unseat the board of directors and take other action if GenCorp refuses to discuss a 2.3 billion dlr takeover bid. General Acquisition Co, a partnership of Wagner and Brown and AFG Industries Inc , reiterated in a statement sent to GenCorp on Friday that it was willing to negotiate its earlier offer of 100 dlrs a share for the tire, broadcasting, plastics and aerospace conglomerate. Analysts have speculated GenCorp could fetch at least 110 to 120 dlrs per share if broken up. GenCorp officials declined to comment on the statement, but a spokesman reiterated a request to shareholders to wait until the board renders an opinion before making a decision on the offer. GenCorp has said a statement would be made on or before the company's annual meeting on Tuesday. General Acquisition said the board could not carry out its duties to shareholders and make an informed decision until it has, "... Explored with us the ways in which our offer can be revised to provide greater value to your shareholders." General Acquisition added it was aware the board may be reviewing alternative transactions, which might provide GenCorp shareholders with a payment other than cash. "If that is the case, you should recognise that our additional equity capital may very well enable us to offer cash and securities having greater value than GenCorp could provide in any similarly structured transaction," it said. It added GenCorp's board had an obligation to present any alternative proposal to shareholders in a way that allowed competing offers. General Acquisition requested it be given a chance to bid on a competitive and fair basis before any final decision was made on any other buyout proposal. The statement repeated the request GenCorp remove a "poison pill" preferred share purchase rights to shareholders, making any takeover more expensive. It said it might take legal action, or seek the support of shareholders in calling a special meeting to replace the board and consider other proposals. GenCorp should not accept any other proposal containing defensive features, it said.

Sumitomo Metal Mining Co said it will raise its monthly nickel output to around 1,750 tonnes from April 1 from 1,650 now because of increased domestic demand, mainly from stainless steel makers. Sumitomo produced 1,800 tonnes of a nickel a month until end-1986, but cut output in January because of stagnant demand, a company official said. Calendar 1987 production is likely to fall to around 20,000 tonnes from 22,000 in 1986 as a result of the first quarter reduction, he said. Sumitomo is Japan's only nickel producer.

The Japanese government appears to have little new to offer to settle a dispute with the U.S. Over computer chips, trade analysts and government officials said. The U.S. Has threatened to impose tariffs worth up to 300 mln dlrs on Japanese electronics exports to the U.S., In retaliation for Japan's alleged failure to keep a pact on the microchip trade signed last September. A Foreign Ministry official told Reuters "Japan has done what it can, and now we must persuade the United States to wait for those steps to take effect." The U.S. Alleges that, in defiance of the September agreement, Japan is still selling microchips at below cost in non-U.S. Markets and refusing to open Japan further to U.S. Chip sales. U.S. Tariffs are due to take effect on April 17. Analysts noted Japan's Ministry of International Trade and Industry (MITI) has already ordered chipmakers to cut production in order to dry up the source of cheap chips sold in third countries at non-regulated prices. "I'm not sure MITI can do much more than it has," said Jardine Fleming (Securities) Ltd analyst Nick Edwards. A MITI official said the Ministry was not planning to call for production cuts beyond those already sought, although it would continue to press chip users to buy more foreign goods. Spokesmen for some Japanese electronics firms said they would consider buying more U.S. Chips. But a Matsushita Electric Industrial Co spokesman said a rapid increase in imports was not likely. Most analysts said Japanese exporters would be hard hit if the United States did implement the tariffs, which would be levied on consumer electronics products rather than on microchips themselves. "If the tariffs remain in place for any length of time, there will be complete erosion of exports to the United States," said Tom Murtha, analyst at James Capel and Co. "The Japanese electronics industry is too powerful to be stopped altogether, but recovery for the industry will be delayed for another year," he said. Some analysts said tariffs would also harm U.S. Industry by stepping up offshore production and by reducing demand in Japan for semiconductors U.S. Firms are trying to sell here. "The American approach is full of contradictions," Jardine Fleming's Edwards said. "If they want to expand (U.S.) exports, the last thing they want to do is hit the makers of the final products because that hurts the final market," Edwards said. But other analysts said the dispute reflects not just U.S. Concern over what it sees as a strategic industry, but also frustration with Japan's vast trade surplus. Some analysts argued that to solve the semiconductor problem Japan may have to take action beyond that pledged in the semiconductor pact. Carole Ryavec, an analyst at Salomon Brothers Asia Ltd, said "The major overall issue is to stimulate the domestic economy and move away from an export-dependent economy."

Japan's ailing shipyards have won approval from the Fair Trade Commission to form a cartel to slash production to about half of total capacity for one year, effective April 1, industry sources said. The approval follows an act of parliament passed last week designed to help the industry regroup and shed 20 pct of capacity by March 31, 1988, Transport Ministry officials said. The cartel, comprising 33 yards capable of constructing ships of more than 10,000 gross tonnes, will limit newbuilding output to a maximum of three mln compensated gross registered tonnes in 1987/88, the Shipbuilders Association of Japan said. Industry sources said the 33 will seek to renew the cartel in 1988/89 in the belief demand will remain sluggish. Last week's temporary act of parliament also allows shipbuilders to receive favourable taxation terms plus up to 50 billion yen in compensation for liabilities incurred through job losses and the sale of excess capacity. Up to 30 billion yen has been allocated for purchasing redundant land and equipment from shipbuilders. The Ministry will start drawing up its restructuring guidelines from April 1 and the yards will implement the guidelines from September, industry sources said.

Finland's said in a statement it is issuing 100 mln dlrs subordinated bonds due 1994 with equity warrants in international markets with maximum interest rate of 4-5/8 pct. Pricing will probably be April 7, the statement said. The new issue could raise the bank's share capital by 200 mln Finnish marks from the present 2.26 billion, it said. The statement said the issue followed up the 1986 tender issuance involving the first non-restricted or free shares, which can be held by aliens. The warrants entitle holders to subscribe for a maximum of 10 mln free shares. Eight mln of the Bank's current 113 mln shares are free shares, a spokeswoman said. The float follows the signing by Finnish President Mauno Koivisto last Friday of legislation entitling aliens with effect from next June 1 to own up to two fifths of the shares in Finnish companies, with consent of the Council of State, as against one fifth although voting rights will be restricted.

The yield on 91-day bankers security deposit accounts issued this week by the Saudi Arabian Monetary Agency, SAMA, fell to 6.18376 pct from 6.34322 a week ago, bankers said. SAMA increased the offer price on the 500 mln riyal issue to 98.46094 from 98.42188 last Monday. Three month interbank riyal deposits were quoted today at 6-1/2, 3/8 pct. SAMA offers a total 1.9 billion riyals in 30, 91 and 180-day agreements to banks in the Kingdom each week.

The new International Cocoa Agreement should lead to a stabilisation of prices, both benefitting producer countries and promoting an equilibrium in international economic relations, European Community Development Commissioner Lorenzo Natali said. He said in a statement welcoming the agreement on buffer stock rules reached last week in London that it resulted in large part from initiatives taken by the EC Commission after consumers and producers had reached deadlock in initial negotiations.

Rugby Portland Cement Plc said it was well placed to operate in the new circumstances following the ending in February of the 53-year old cement manufacturers common price and marketing arrangements. In a statement following the release of its 1986 results, IT stated that the current year had started well. It reported that pretax profits in the year rose to 35.46 mln stg from 21.84 mln previously on turnover higher at 313.3 mln after 252.2 mln. The strong recovery of the first six months continued into the second half, although U.K. Cement demand rose only modestly. Results benefitted from cost cutting and higher volumes. The decision by the Cement Makers Federation to end the pricing agreement reflected pressure from higher competition due to growing imports and the possibility that the system would be taken to the Restrictive Practices Court by the U.K. Government. It stated that its John Carr unit benefitted from strong organic growth, although overseas its Cockburn operation had a difficult period with high maintenance costs and increased depreciation charges. The company is proposing to change its name at the next annual meeting to . Rugby said it spent 27 mln stg on acquisitions in 1986. It noted that its Western Australia hotels company had agreed to sell the Parmelia hotel for 31.5 mln Australian dlrs, some seven mln stg above end-1986 book value. The results were largely in line with forecasts and Rugby shares were little changed at 242p after 241 at Friday's close.

British and Commonwealth Shipping Co Plc said that it would reorganise its commercial and service operations into a single public grouping with autonomous management. The group has expanded rapidly in the past year through the 672.5 mln stg acquisition of and 90 mln bid for . It noted that its operations were now divided between financial services, including money broking, investment management and forfaiting, and more traditional areas such as aviation, hotels, commodity trading and office equipment. It said that each sector had exciting prospects but required different methods of management and financing. B and C planned to form a new public company to hold the commercial operations and envisaged it operating with a capital of between 400 mln and 600 mln stg. It has retained Barclays de Zoete Wedd to advise on the introduction of independent investors to subscribe for additional capital, and believes that the proportion of equity capital held by outside investors would not exceed 20 pct of the total. The statement said that with the continued support of B and C, together with outside capital, the new grouping would emerge as a major group in its own right with the ability to take advantages of opportunities as they arose. However, the group would not seek a listing for the time being. B and C also said that its chairman, Lord Cayzer, planned to retire in June. The company proposed that he be appointed life president and that current chief executive John Gunn should take over as chairman. B and C shares eased 11p to 459p at 1040 GMT.

The Finance Ministry is trying to eliminate technical obstacles so as to encourage purchases of Japanese Treasury bills by foreign governments and central banks, in order to increase overseas holdings of yen assets, a senior Finance Ministry official said. The official declined to give details but securities sources said they expect the 16 pct withholding tax on T-bills to be repaid immediately when governments and central banks buy bills. The current practice of filing tax redemption claims is time consuming, they said. Securities houses here have had difficulty selling six-month debt-financing paper, called tankoku, to overseas governments and central banks because of the tax system and the Bank of Japan's book entry system, which demands the accounts be kept with the houses rather than by the Bank. Tankoku, introduced in February 1986, were designed as a key short-term instrument to promote internationalization of the yen. But since the introduction of a complicated book-entry system for bill purchases in January 1986, foreign governments and central banks have shied away from buying the bills, the sources said. Foreign governments and central banks are therefore expected to be allowed to hold their accounts at the Bank of Japan, the securities sources said. Relevant measures are likely to be announced at the next U.S.-Japan yen-dollar committee meeting on the deregulation of Tokyo's financial market, expected in May, they said.

Gillette Canada Inc is launching a 500 mln French franc bond, due April 30, 1992, paying nine pct and priced at 101-5/8, Banque Paribas said on behalf of Banque Paribas Paris, the lead manager. Morgan Guaranty Ltd will co-lead manage the issue, which will be sole in denominations of 10,000 francs and be listed in Luxembourg. Fees are 1-1/4 pct for selling and 5/8 pct for management and underwriting combined. The bonds are non-callable and payment is April 29.

A leading U.S. Banker said the dollar was likely to fall another five to 10 pct this year and an improvement in the huge American trade deficit would be only temporary at current world exchange rate levels. Kurt Viermetz, worldwide treasurer of Morgan Guaranty Trust Co, told Arab currency traders meeting here that the steady depreciation of the dollar had not gone far enough to rein in U.S. deficits on a lasting basis.

Swedish construction and real estate company Skanska AB said it will sell its 49 pct holding in Canadian building firm to rival . A company spokeswoman told Reuters Skanska will receive Banister shares as payment, giving the Swedish group 15 pct of the stock in the expanded Banister firm. She said Skanska will also be appointing two board members to the Canadian company.

Prime Minister Andreas Papandreou has withdrawn a request to Washington to suspend operations at an American army base near Athens as a Greek-Turkish row over oil rights in the Aegean eased. A Turkish research ship which Greece had threatened to tackle if it sailed into disputed waters in the Aegean Sea kept to Turkish territorial waters yesterday, avoiding a potential clash. Papandreou expressed qualified optimism after briefing opposition leaders on Aegean developments early yesterday. The Greek government later withdrew Friday's request to Washington to close down its telecommunications base at Nea Makri, north of Athens, saying that the reasons which had prompted it to make the request were no longer valid. Under the terms of the U.S.-Greek bases accord, Greece has the right to ask for suspension of operations at times when its national interests are threatened. The row in the Aegean erupted after Turkey said it would search for oil round three Greek islands off its coast following an announcement from Greece that it planned to drill east of Thassos island after taking control of a Canadian-led oil consortium operating in the northern Aegean. Turkey accused Greece of breaching the 1976 Berne Agreement under which both sides agreed to preserve the status quo in the Aegean until their continental shelf dispute was settled. Athens says it considers the accord inactive. The Turkish Foreign Ministry said in a statement it had received an assurance from Greece that it would not carry out oil activities outside its territorial waters. Greece declined comment on the statement. Papandreou repeated an invitation to Turkey to take the long-standing continental shelf dispute to the International Court of Justice at The Hague. Conservative opposition leader Constantine Mitsotakis said he had urged Papandreou to accept an offer from NATO General Secretary Lord Carrington to help resolve the row.

Wedgestone Realty Investors Trust said it has issued institutional investors 10-year warrants to buy 575,000 shares at 16.50 dlrs each in connection with the previously-announced sale of 10-year promissory notes to the investors. It said the exercise price of the warrants may be reduced and the number of shares increased in certain circumstances.

The Panamanian motor vessel Northern 1, 4,217 dwt, was safely towed into Greenock over the weekend after having its crankshaft broken off the Scottish coast during severe weather, Lloyds Shipping Intelligence said. Northern 1 was loaded with 3,000 tons of sugar from Demerara.

Clabir Corp said it has determined all dividends paid on its Class A common in 1986 are not taxable as dividend income. While this is a preliminary estimate, the company said, it may be used by shareholders when preparing 1986 income tax returns.

Scientific Micro Systems Inc said it expects first quarter revenues to rise by about 60 pct to 24 mln dlrs, compared with the 15 mln reported for the first quarter last year. The company said it experienced revenue growth across all product lines during the quarter. It also said revenue growth should continue during the year and the company should experience improved profitability in the second half when acquisition and new product introduction costs will not have a significant impact on earnings.

The International Primary Market Makers Association, a trade organisation, said its board last week adopted new rules recommending lead managers of eurodollar bond issues make a market in that security for 12 months. Currently, while there is an implied obligation on the part of firms to make markets in issues they underwrite, there is no formal obligation to do so. Christopher Sibson, secretary general of IPMA, in explaining why the recommendation was adopted, said "It is aimed at the problem of the lead manager who does a deal and disappears." Sibson said the organization cannot force its members to adhere to the rule. "We're under no illusions about the legal binding force of these recommendations," he said. Lead managers have occasionally abandoned efforts to support an unprofitable issue just a short while after it has been offered, leaving investors and smaller firms with no one to buy it back from them. Most recently, when prices of perpetual floating rates notes (FRNs) suddenly plunged, most market makers abandoned the securities altogether, leaving investors stuck with about 17 billion dlrs worth of unmarketable securities on their books. Sibson noted that the recommendation adopted by the board only applies to fixed-rate dollar issues and would not have helped the floating rate sector out of its current crisis. Among other measures, the IPMA also decided that the criteria for membership should be tightened to exclude some of the smaller firms. Under the new rules, a firm must be the book running lead manager during the two preceding years of 12 internationally distributed debt issues denominated in U.S. Dlrs or in one of eight other major currencies. The former requirement called for three lead-managed issues. Sibson said he expects the tighter entrance requirements to pare 3he current list of 67 members down by six to 10 members. Smaller firms have criticized IPMA's efforts to restrict membership to the larger firms, saying it is anti-competitive and that it reinforces the big firms' already large market share. "Belonging to IPMA carries a certain amount of prestige with borrowers," said a dealer at a small foreign bank. "The borrower says to himself, "Well I can travel economy or I can travel first class,'" he said. Sibson defended the new rules saying "We have to steer a course between representing the interests of the major market makers and the less desirable goal of representing everybody." In any event, he said, the size of the market has expanded to the point where the former minimum size requirements were just too small. Also, IPMA members will be required to register with the Association of International Bond Dealers as reporting dealers, submitting daily information on prices on issues in which they are market makers. The effective date of the rule has yet to be determined. Dealers said that the rule would enable investors and secondary market makers to better evaluate the appropriate market price for their securities. Such a rule would make investors more confident of trading in the eurobond market and would increase liquidity, they said. Dealers said that the form of the reporting has not yet been spelled out. But previous discussion of the reporting requirement considered firms listing the closing price of a given security as well as the high and low for the day. Members also agreed at the IPMA meeting on the implementation of a new communications system which enables a lead manager to invite all potential management group members in to a deal at the same time.

Bow Valley Industries Ltd said it filed a preliminary short form prospectus in Canada and the United States for a secondary offering of 22.8 pct of outstanding common stock, or 9,362,197 common shares, being sold by certain shareholders. The company said Bowcan Holdings Inc, a holding company principally owned by the Seaman brothers of Calgary and Charles Rosner Bronfman Trust of Montreal, is offering to sell all of its holding of 8,279,665 Bow Valley common shares. The balance of the offering is owned directly and indirectly by various trusts of Jean and Charles deGunzberg. Proceeds and expenses from the secondary offering of Bow Valley Industries common shares are for the account of the selling shareholders, the company said. The shareholders will engage Salomon Brothers Inc for distribution of the shares in the United States and McLeod Young Weir Ltd for distribution in Canada.

Shr loss 78 cts vs loss 18 cts Net loss 1,671,000 vs loss 382,000 Revs 3,261,000 vs 4,427,000 Year Shr loss 1.35 dlr vs loss 15 cts Net loss 2,902,000 vs loss 331,000 Revs 13.5 mln vs 16.1 mln NOTE: 1986 and 1985 4th qtr net includes charges of 867,000 dlrs or 40 cts a share and 222,000 or 10 cts a share, respectively.

Creditanstalt-Bankverein , the largest commercial bank in Austria, has arranged a 100 mln stg certificate of deposit program, banking sources said. The dealers for the program will be S.G. Warburg and Co Ltd and County NatWest Capital Markets Ltd.

Shr profit 20 cts vs loss 33 cts Net profit 376,470 vs loss 1,555,469 Revs 3,615,550 vs 2,896,000 Year Shr profit 14 cts vs loss 66 cts Net profit 382,014 vs loss 1,128,160 Revs 11.2 mln vs 11.0 mln

Nuclear Support Services Inc said it agreed in principle to buy the business and assets of ITT Henze Service from ITT Corp for an undisclosed amount. Henze, which is engaged in performing nuclear plant repair work, had revenues of 12.7 mln dlrs for the year ended December 31, 1986. For 1986, Nuclear Support, a supplier of support personnel and services to the nuclear power industry, had net income of 2.4 mln dlrs on sales of 30.6 mln dlrs.

Oper shr loss 12 cts vs loss 10 cts Oper net loss 474,270 vs loss 369,848 Revs 202,500 vs 111,210 Avg shrs 3,904,373 vs 3,495,579 Year Oper shr loss 28 cts vs loss 46 cts Oper net loss 1,069,550 vs loss 893,612 Revs 408,031 vs 438,933 Avg shrs 3,785,607 vs 1,944,627 NOTE: Full name is North American Group Ltd Earnings exclude losses on reorganization expenses of 33,453 dlrs, or one ct a share vs 59,520 dlrs, or two cts a sh are in the quarter and losses of 237,859 dlrs, or six cts a share vs 413,444 dlrs, or 21 cts a share for the year Earnings exclude gains on discontinued operations of 147,671, or four cts a share in the 1985 quarter and gains of 760,603 dlrs, or 20 cts a share vs 520,200 dlrs, or 27 cts a share for the year

Oper shr loss 6.68 dlrs vs loss 9.95 dlrs Oper net loss 53.9 mln vs loss 69.8 mln Revs 16.5 mln vs 33.2 mln Avg shrs 8,329,492 vs 7,271,668 NOTE: 1986 excludes loss 12.9 mln for discontinued compressor operations vs loss 14.9 mln year prior. 1986 excludes gain of 98.7 mln for extinguishment of debt from company's chapter 11 filing and subsequent reorganization.

Metromail Corp said it expects flat operating profits for its 1987 fiscal year ending May 31 with last fiscal year's earnings from operations of 9,943,000 dlrs, or 1.05 dlrs a share. The company said the flat results will be due to higher than normal expenditures during the fourth quarter for expansion of its data processing capabilities. Earlier, Metromail reported fiscal 1987 third quarter earnings of 2.4 mln dlrs, or 25 cts a share, versus three mln dlrs, or 32 cts a share, the prior third quarter, and nine months net of 7.2 mln dlrs, or 76 cts a share, versus 7.8 mln dlrs, or 82 cts a share the prior nine months.

Shr loss three cts vs profit eight cts Net loss 35,000 vs profit 128,000 Revs 1,133,000 vs 1,528,000 Year Shr profit four cts vs profit 21 cts Net profit 72,000 vs profit 339,000 Revs 4,837,000 vs 4,500,000 NOTE: 1985 net income included an after tax gain of 195,000 or 12 cts per share on sale of real property.

Shr loss three cts vs loss 39 cts Net loss 115,000 vs loss 1,544,000 Rev 6.9 mln vs 7.3 mln Six months Shr profit four cts vs loss 44 cts Net profit 141,000 vs loss 1,772,000 Rev 13.9 mln vs 14.5 mln NOTE: Net includes loss from discontinued operations of 78,000 dlrs, or two cts a share, versus 597,000, or 15 cts a share in the prior 2nd qtr. Six months net includes gain from discontinued operations of 104,000 dlrs, or three cts a share, versus a loss of 588,000 dlrs, or 15 cts a share, in the prior six months.

Shr 13 cts vs 5 cts Net 5,568,319 vs 2,968,437 Rev 36.5 mln vs 34.0 mln 12 months Shr 1.60 dlrs vs 1.79 dlrs Net 72,865,101 vs 85,198,853 Rev 521.3 mln vs 420.3 mln NOTE: Twelve months includes the cumulative effect of a change in accounting methods for accruing unbilled revenues of 11.4 mln dlrs, or 28 cts per share.

The Oklahoma weekly USDA crop report said cold weather slowed crop development and caused some cattle deaths. Wheat growth was halted by cold weather, and rain early in the week prevented fertilizer application and weed spraying. Fields in the west were short of nitrogen, and moderate insect activity was noted in the southwest region. Wheat condition was rated 15 pct fair, 84 pct good and one pct excellent. Row crop activity was very slow amid wet conditions. Topsoil moisture was rated 30 pct adequate and 70 pct surplus, and subsoil moisture was rated 100 pct adequate. Only two days were suitable for fieldwork.

The Venezuela Guayana Corporation, CVG, which oversees the state steel, iron, aluminum and other industries, will invest 75 billion bolivars in new projects during 1987-89, CVG president Leopoldo Sucre Figarella announced. The investments will go to plant expansion, infrastructure and the extension of hydroelectric facilities in the mineral-rich Guayana region, south of the Orinoco river. Sucre Figarella told a news conference the CVG's 12 companies showed an overall increase of 120 pct in profits, which rose from 1.732 billion bolivars in 1985 to 3.926 billion bolivars last year. Among the best performers was steel company Sidor which earned 1.019 billion bolivars, the first time since 1978 Sidor turned a profit. The gain was made possible in part by the refinancing of 1.619 mln dollars of foreign debt. CVG's three aluminum companies also showed substantial gains. Interalumina, which makes the intermediate material alumina, had an increase in profits from 116 to 217 mln bolivars, Alcasa earned 487 mln bolivars, as compared to 1985's 412 mln and Venalum's profits rose by around half, from 1.042 to 1.504 bln bolivars. Meanwhile, the state iron company Ferrominera saw its profits rise from 156 mln bolivars in 1985 to 204 mln bolivars last year.

The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Bank of New England - Offering of 200 mln dlrs of subordinated capital notes due 1999 through an underwriting group led by Morgan Stanley and Co Inc.

Harper International Inc said it intends to buy the major asset, patents and trade name of Demarkus Corp, a designer and installer of process gas systems for the soft drink and brewing industries. The purchase price is about 125,000 dlrs. Demarkus' sales were 470,000 dlrs in 1986.

Finance Minister Kiichi Miyazawa said he regards a U.S. Dollar below 150 yen as counter to the agreement struck by major nations in Paris last month. He told the Upper House Budget Committee in Parliament that Japan intervened in the market when the dollar went below 150 yen, as it considered the dollar's fall below that level counter to the spirit of the Paris accord. Commenting on current foreign exchange movements, Miyazawa said Japan would watch developments for another couple of days. Institutional investors appeared to have sold dollars to hedge currency risks ahead of the end of the financial year today, Miyazawa said. Behind the recent dollar fall lies the market perception that major nations were not doing enough to implement their policies under the Paris pact, he said, noting that passage of Japan's 1987/88 budget has been delayed. He said that now was the time for major nations to act under the Paris accord. The U.S., West Germany, France, Switzerland and Britain have intervened on their own account to prop up the dollar, he said. This was a concerted action.

Prime Minister Yasuhiro Nakasone may have been dealt a fatal political blow by the yen's renewed rapid rise and the threat of a trade war with the United States, political analysts said. Nakasone, already under fire over an unpopular tax reform plan, may now be forced to resign before the June economic summit of seven industrialised nations if local elections later next month go against candidates from his ruling Liberal Democratic Party (LDP), they said. "The close relationship between Nakasone and President Reagan was an important element of Nakasone's power base," Waseda University Political Science Professor Mitsuru Uchida told Reuters. "So the emergence of U.S. Criticism damages Nakasone." Even before the latest trade friction flared, Nakasone was encountering criticism not only from opposition parties but also within his own LDP over his proposal to levy a sales tax. "Many factions within the LDP are distancing themselves from Nakasone," Uchida said. "His position within the LDP itself is not so strongly established today." Nakasone, who has been more popular with the general public than with many LDP members, is now seeing his public support eroded, the analysts said. The yen's rise to record highs and the U.S. Threat on Friday to impose tariffs on Japanese electronics goods in retaliation for Japan's alleged violation of a microchip trade pact are now giving Nakasone's critics fresh ammunition, the analysts said. "Apparently the special relationship between Reagan and Nakasone hasn't worked effectively," Rei Shiratori, director of the Institute for Political Studies in Japan, said. This is making the Japanese people doubt Nakasone's credibility, Shiratori told Reuters. The cumulative impact of the sales tax issue, the yen's rise and mounting trade friction could mean serious LDP losses in the April 11 and 26 local elections, analysts said. "If the elections go against the LDP, Nakasone may have to resign early," Shiratori said. But Nakasone still has a chance to soothe U.S. Tempers before or during his week-long Washington visit from April 29, some analysts said. However, "unless the Japanese political system can move more quickly to give Nakasone some nice present to take to Washington on smouldering trade issues, he will face a very hostile audience," said Merrill Lynch Securities economist William Sterling. "If the trip is a major disaster, it would seem to put the final nail in his coffin," he said. Reagan's own weakened domestic position, and growing Republican as well as Democratic anger with Japan, argue against a quick settlement to the trade dispute, the analysts said. But a desire on both sides to find some solution, coupled with uncertainty at home and abroad over likely successors to Nakasone, could still lead to an attempt to paper over the differences and aid Nakasone, they said. "One factor against a trade war may be that Washington is not anxious to push Nakasone into his grave," Sterling said.

CSR Ltd and Exxon Corp unit said CSR has agreed to sell its (DAF) to Esso for 985 mln Australian dlrs. The sale is effective from tomorrow, they said in a joint statement. The previously announced float of part of its Delhi interest will not now proceed, CSR said in the statement. Delhi Australia Fund owns , which holds an average of 25 pct in the Santos Ltd -led Cooper and Eromanga Basin gas and liquids projects. In addition to the purchase price, CSR will share equally in any returns due to increases in crude oil and condensate prices over certain levels for liquids produced from Delhi's interests in the next two years, the statement said. "The Esso proposal to purchase all the Delhi interest will be more beneficial to our shareholders than proceeding with the float," CSR chief executive Bryan Kelman said in the statement. Kelman said the sale of Delhi would enable CSR to focus efforts on expanding business areas such as sugar and building materials in which CSR has had long and successful management experience and strong market leadership. With the sale, CSR will be able to expand those businesses more aggressively and earlier, he said. As reported separately, soon after announcing the Delhi sale CSR launched a takeover bid for the 68.26 pct of that it does not already hold, valuing its entire issued capital at 219.6 mln dlrs. After Bass Strait, the onshore Cooper and Eromanga Basin is Australia's largest oil and gas producing area with current gross oil production of 45,000 barrels per day (BDP), gas liquids output of 30,000 BPD and gas sales of 480 mln cubic feet a day, the CSR-Esso statement said. The purchase gives Esso, a 50/50 partner with The Broken Hill Pty Co Ltd in the Bass Strait, its first onshore production in Australia, they said. Esso's chairman Stuart McGill said he hoped Esso can assist in maintaining the high rate of oil and gas discoveries in the Cooper-Eromanga area. "These discoveries will help Australia's self-sufficiency in oil reserves thereby offsetting in part the decline in Bass Strait production now under way," McGill said. In a separately released letter to CSR shareholders, Kelman said CSR was within days of completing plans for the float of CSR Petroleum when it received an offer from Esso. He said CSR is convinced the sale was the correct decision in view of the risks associated with the oil business. The price-sharing arrangement provides for CSR to share equally with Esso in higher returns if oil prices average more than 20 U.S. Dlrs a barrel in the next two years, he said. Kelman said a revaluation of CSR's investment in Delhi to net realisable value as of today, CSR's annual balance-date, will result in an extraordinary loss of 97 mln dlrs. However, revaluations and profits on sales of other assets will significantly reduce this loss, he said. He also said that CSR is sufficiently encouraged by future prospects and the opportunity to reposition the group in core businesses to foreshadow an increase in final dividend payable in July to 10 cents from nine to make an annual 19 cents against 18 in 1985/86.

Smith and Nephew Associated Companies Plc is issuing an 85 mln stg convertible eurobond due May 7, 2002 paying a fixed coupon of four pct and priced at par, lead manager Credit Suisse First Boston Ltd said. The issue is callable at 106 pct declining by one pct per annum to par thereafter but is not callable until May 7, 1993 unless the share price exceeds the conversion price by 130 pct or the issue is more than 95 pct converted. There is a put option on May 7, 1993 which will give the investor an indicated annual yield to the put of 8-1/2 to 8-3/4 pct. Final terms will be fixed on, or before, April 8. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. The payment date is May 7. The expected conversion premium is eight to 12 pct and the issue is convertible into Smith and Nephew ordinary shares.

Hutchison Whampoa Ltd announced a bonus issue of one new "B" share of 2.5 H.K. Cents each for every two existing ordinary shares of 25 cents a share par value. A company statement said Hutchison forecast 1987 dividends for existing shares of not less than 32.5 cents a share and not less than 3.25 cents for each "B" share. Hutchison said the new issue will help increase flexibility when it is planning future expansion moves or making acquisitions without affecting the existing control structure of the group. "The move will provide long term stability to ensure continuity of overall control of the Hutchison group in that it provides Hutchison with a stable framework within which management, development and the planned growth of the group's businesses can take place," it added. Hutchison shares lost one dlr to end at 53 dlrs each today.

The Bundesbank declined to comment on rumours in Tokyo that it was intervening heavily to support the dollar, but dealers here said they had not seen the German central bank in the market all morning. The dollar was quoted at around 1.8040 marks shortly after midday in nervous but quiet trading, up from its 1.7975/85 opening. Spreads against the mark remained around 10 basis points, with some banks quoting only five point spreads. Dealers said spreads would widen and the dollar would move more sharply if the Bundesbank did intervene.

CSR Ltd has made a bold move in selling its oil and gas interests for almost a billion dlrs and ploughing 150 mln into its traditional sugar business, share analysts said. CSR said it had dropped plans to float its oil and gas interests held in the Delhi Australia Fund and would instead sell them to Exxon Corp unit Esso Exploration and Production Australia Inc for 985 mln dlrs. In a twin announcement CSR, already Australia's largest sugar refiner, made a 2.20 dlr a share bid for the 70 pct it does not already hold in Pioneer Sugar Mills Ltd. A float of part of Delhi would have raised between 200 and 300 mln dlrs, but in opting to sell outright CSR had given itself the cash to all but eliminate its debt and embark on an ambitious expansion programme in its best-performing divisions of sugar and building products, analysts said. The Pioneer Sugar investment would give CSR by far the largest stake in Australia's 850 mln dlr a year sugar industry and access to some of the best sugar properties and mills in the country, they said. Pioneer Sugar was expected to recommend acceptance of the bid, through which CSR would benefit from the bottoming out of a cyclical downturn in sugar prices.

said it ordered a new container vessel from China for its Australia service. The order was given to the in Shanghai after lengthy negotiations with West German shipbuilders, the company said in a statement. The Chinese firm offered to build the vessel at over 30 mln marks less than West German yards, despite government subsidies which Bonn pays its ailing shipbuilding industry, Hapag said. A company spokesman would not comment on the total order value but said the new vessel would replace the 33,333 dwt Sydney Express in 1989 and would carry 2,700 container units.

Executive board members of the International Coffee Organization, ICO, passed over the issue of export quota negotiations at its regular meeting here, delegates said. No move was made to reopen dialogue on export quotas and no further discussion on the issue is likely during the three-day talks, they said. Producer and consumer members of the ICO council failed to agree export quota shares in early March. Neither Brazil, the largest producer, nor the U.S., the largest consumer, are ready to be flexible, delegates said. "The situation is unchanged," consumer spokesman Abraham Van Overbeeke told reporters. "As long as Brazil sticks to its position there will not be quotas -- there is no point in meeting." At the last council meeting, Brazil wanted to maintain its previous quota share of around 30 pct of the market. Consumers and a splinter group of eight producers favoured redistribution of export shares using "objective criteria," which would likely have reduced Brazil's share. Brazilian delegate Lindenberg Sette said that, if quota negotiations were to resume, the 1.0 mln bag shortfall Brazil was willing to give up in early March if the producer proposal was accepted would no longer be on the table. "As we said from the start...No agreement, no one million bags," he told Reuters. Shortfalls of 200,000 bags offered by OAMCAF, the African and Malagasy Coffee Organization, and 20,000 bags offered by Angola, are also no longer valid, delegates said. The closest the board came to discussing quotas was a briefing by the Guatemalan ICO delegate Rene Montes on a recent Latin American producers meeting in Managua, delegates said. There, the producers expressed their political will to negotiate basic quotas, particularly in the face of the damaging drop in coffee prices after the council failed to agree quotas, Montes said. The ICO board also reviewed export statistics and stock verification. They expected talks on stock verification to take up the remainder of today's session, delegates said.

The Cabinet approved a plan for the Port Authority of Thailand to buy six gantry cranes from Metalna Co of Yugoslavia for about 13.4 mln dlrs, a government spokesman said. He said Thailand will pay for 25 pct of the cost of the cranes in U.S. Dlrs and the rest by sales of rice, textiles and other commodities to Yugoslavia. The Bangkok Shipowners and Agents Association has appealed to the government to scrap the purchase plan. It said it would be an unnecessary expense as most vessels calling at the port already have their own cargo handling equipment.

British package courier does not plan to bid for the whole or part of Purolator Courier Corp , a spokesman said. "There is no intention of making any sort of approach to Purolator," the spokesman told Reuters, adding, "it would be a case of David versus Goliath." Interlink shares started trading in the U.K. Unlisted Securities Market in October 1986. It posted pre-tax profits of 2.13 mln stg on turnover of 9.6 mln stg in the six months to December 31, 1986. Purolator last year topped turnover of 465 mln dollars, the spokesman said. between Purolator and Interlink in view of a takeover or participation. He categorically denied press reports suggesting Interlink was developing a buyout bid. The reports said the proposed bid would be a price above the 35 dlrs per share offered by . The Hutton offer expires tomorrow. The spokesman said Interlink was seeking to expand business, first in continental Europe and later in the U.S. But the company did not expect to gain foothold in the U.S. Market until 1989 at the earliest, he said.

is studying a project which could result in a public share offer of up to 49 pct of its French unit and could raise around 400 mln dlrs, Ferruzzi chairman Raul Gardini said. Gardini told Reuters the operation under consideration was aimed at "international markets" and that the figure of 400 mln dlrs given in some press reports "was probably about right." European Sugar, wholly-owned by Ferruzzi unit Eridania Zuccherifici Nazionali SpA , is expected to absorb the European corn wet milling business of CPC International Inc which Ferruzzi recently agreed to buy. Ferruzzi announced last week it had agreed in principle to buy the CPC operation for 630 mln dlrs. A Ferruzzi spokesman later confirmed that the group was studying the transfer of the CPC business to European Sugar along with a possible share offering in the Paris unit, but gave no details. The flotation plan has been interpreted by financial analysts as a means of helping finance the acquisition of the CPC business. In London yesterday, chairman of Belgian starch producer Pierre Callebaut told Reuters that since Ferruzzi was "apparently still organising finance," his company might still succeed with its rival bid for the CPC business. Gardini, commenting on Callebaut's remarks, said the 630 mln dlrs agreed for the CPC acquisition would be paid "at the date foreseen in the preliminary contract." Gardini could not reveal the date in question nor give any indication of the likely timing of an offering of shares in European Sugar, but it was announced last week that Ferruzzi's purchase of the CPC business was expected to be completed by September 30. Callebaut said yesterday that Amylum was surprised and disappointed that its 675 mln dlr bid cash offer for CPC's European business was apparently rejected in favour of Ferruzzi's lower bid. Gardini, commenting on Callebaut's remarks, said "Amylum should know that one succeeds in a bid by making the right offer at the right moment - exactly as Ferruzzi did in the case of the acquisition of CPC's European business." Gardini said it was not Callebaut's business to concern himself with the European Sugar capital raising operation under study, he added. Asked about press reports that Ferruzzi might follow up the European Sugar flotation with the sale of 49 pct of the CPC business, Gardini said: "We do not exclude having minority partners in the CPC business." He declined to elaborate.

Opoer shr profit 17 cts vs loss 96 cts Oper net profit 2,293,000 vs loss 7,110,000 Sales 116.0 mln vs 108.3 mln Year Oper shr loss 2.03 dlrs vs loss 2.12 dlrs Oper net loss 13.8 mln vs loss 11.6 mln Sales 454.0 mln vs 446.4 mln NOTE: Net excludes gains from discontinued operations of 10.2 mln dlrs vs 1,985,000 dlrs in quarter and 4,262,000 dlrs vs 1,320,000 dlrs in year.

New Plan Realty Trust said it plans to redeem on April 30 all of its outstanding 8-3/8 pct convertible subordinated debentures due Nov 15, 2000. As of March 30, there were 55.6 mln dlrs of debentures outstanding. The redemption price will be 107.179 pct of the principal amount plus accrued interest, the company said. Holders will have the right to convert the notes up to the close of business on April 30. The current adjusted conversion price is 11.49 dlrs a share. Of the total original issue of 66.7 mln dlrs, 50 mln dlrs of notes were sold to the public and 16.7 mln dlrs were sold to the Merchant Navy Officers Pension Fund of Great Britian. Bankers Trust is the trustee for the debentures.

Oper shr profit 18 cts vs loss 38 cts Oper net profit 577,000 vs loss 1,147,000 Revs 16.3 mln vs 19.8 mln Avg shrs 3,227,625 vs 3,057,206 NOTE: 1986 net excludes 485,000 dlr tax credit.

Silicon Graphics Inc is raising 35 mln dlrs via an offering of convertible subordinated debentures due 2012 with a 5-3/4 pct coupon and par pricing, said lead manager Morgan Stanley and Co Inc. The debentures are convertible into the company's common stock at 30.35 dlrs per share, representing a premium of 25.15 pct over the stock price when terms on the debt were set. Non-callable for two years, the issue is rated B-2 by Moody's Investors Service Inc and CCC-plus by Standard and Poor's Corp. Alex Brown and Sons Inc co-managed the deal.

Borg-Warner Corp in a statement said it has received GAF Corp's 46 dlrs a share acquisition proposal and will have no comment until its board of directors has had a chance to examine it thoroughly.

The St Lawrence Seaway said the first ship of the season passed through the St Lambert lock here this morning, officially opening the 2,300-mile-long waterway's 1987 shipping season. The seaway has said it expects little increase in freight levels this year from last year when it moved 37.6 mln tonnes of freight between Montreal and Lake Ontario and 41.6 mln tonnes on the Welland Canal, which links Lake Erie and Lake Ontario. The canal is scheduled to open tomorrow. Officials expect the waterway to lose nine to ten mln Canadian dlrs this year, about the same as the estimated deficit for fiscal 1986-87, which ends today.

USX Corp's Texas Oil and Gas Corp subsidiary and Consolidated Natural Gas Co have mutually agreed not to pursue further their talks on Consolidated's possible purchase of Apollo Gas Co from Texas Oil. No details were given.

Pier 1 Imports Inc said it amended its record and distribution dates for its previously- announced three-for two common and 25 cts preferred stock split. The split common and 25 cts preferred shares will be distributed on July 2, 1987, to shareholders of record June 24, 1987. The stock split requires shareholder approval of an increase in authorized shares of common stock to 100 mln from 25 mln and an increase of authorized shares of preferred stock to five mln from one mln, the company said. The change in the dates was based on the company's desire to have the additional common and 25 cts preferred shares trade for the shortest practical period of time on a "when issued" basis following a favorable shareholder vote at the annual meeting June 24, it said. The previously announced record and distribution dates were May 13, 1987, and June 29, 1987, respectively, the company said.

Treasury Secretary James Baker and Office of Management and Budget chief James Miller defended an administration plan to sell the U.S. Naval Petroleum Reserves. In response to hostile questioning from a member of the House Appropriations Committee, the officials said the plan was justified to help bring the fiscal 1988 budget deficit and to get the government out of the oil business. Miller acknowleged the estimated sale proceeds at 3.3 billion dlrs would actually bring down the deficit by about 2.2 billion dlrs because of the loss of revenues from the sale of oil from the reserves. Miller said the sale price may end up higher. "We'd sell it to the highest bidder," Miller said. "If we can get more we'll take it."

Treasury Secretary James Baker, asked whether he was concerned about yesterdays precipitous decline in bond prices, said he was not. Questioned by reporters as he left a House committee hearing, Baker said "no," when asked about the bond decline, adding that it was a reflection of concern about the possibility of a trade war. "It is what the markets think would be the adverse consequences of a trade war." He said the administration was concerned that protectionism would lead to international trade problems adding that he thought the action against the Japanese was still consistent with this policy.

AMR Corp's American Airlines unit said it plans to complete the integration of AirCal into its operations within four to five months. American's merger with AirCal, announced last November, received final approval from the Department of Transportation yesterday. American said Richard D. Pearson, coordinator of the airline's merger activities, will become chairman and chief executive officer of AirCal during the period up to completion of the merger. American said Pearson succeeds William Lyon, who has been elected to AMR's board. It added that David A. Banmiller will continue as AirCal's president and chief operating officer.

Shr N.A. vs N.A. Net 46,000 vs 106,000 Revs 19.8 mln vs 19.0 mln YEar Shr 26 cts vs 26 cts NEt 1.3 mln vs 1.3 mln Revs 82.1 mln vs 105.3 mln NOTE:1986 net includes 870,000 dlrs charge. 1985 net includes 788,000 credit. No share amounts provided for 4th qtr as NPS completed initial offering in August.

U.S. Agriculture Undersecretary Daniel Amstutz said he was "totally sympathetic" with U.S. wood producers' desire to have their exports eligible for government credit guarantees. But he told the Senate Appropriations Agriculture subcommittee that including wood products in the department's short- or intermediate-term export guarantee programs would conflict with U.S. multilateral trade obligations. Currently, U.S. wood products are not eligible for government export credit guarantee because they are considered "manufactured products," Amstutz said. He said USDA had devoted an "enormous amount" of time to considering making wood products eligible for the guarantees and that Congress was considering a measure to do so.

Shr loss 4.05 dlrs vs loss 2.47 dlrs Net loss 39,598,000 vs loss 24,152,000 Revs 96.0 mln vs 87.9 mln Note: Current year figures include 7.2 mln dlr provision for anticipated loss on note receivable, 25.4 mln dlr writedown on asset carrying value and 8.5 mln dlr provision for future operating losses at Elsinore Shore Associates. Prior year figures include 10.5 mln dlr provision for future losses at Elsinore Shore Associates.

President Reagan has reaffirmed his opposition to protectionism and his chief spokesman said trade sanctions imposed on Japan were unlikely to start a trade war. "We don't want to go down that road," Reagan was quoted as telling Prime Minister Jacques Chirac after the visiting French official expressed concern about the rising tide of protectionist sentiment in the United States. Later, White House spokesman Marlin Fitzwater defended the new sanctions against Japan and said administration officials "do not believe this will result in a trade war." "It is the first time that the United States has taken an action of this type and it is significant but it is nothing to be alarmed about," the presidential spokesman added. "We do not want protectionism ... We do not want a trade war," he said. Fitzwater said the president was forced to act in the Japanese microchip case because Tokyo had failed to fulfill "an agreement to make some corrections." Noting that there are "enormous pressures in the Congress and the land" for the United States to take a tough stand, he said, "This was a case where we felt we simply had to act." Fitzwater said the decision to impose sanctions was "well considered by this administration and not taken lightly." While the White House official held open the possibility that Washington and Tokyo will settle their trade dispute, he indicated a settlement probably would not come in time to head off the sanctions. "We are always open to negotations ... Whether it (a settlement) could occur in time to prevent this (the sanctions) from going into effect is questionable at this point," the spokesman said. The sanctions take effect in mid-April.

Treasury Secretary James Baker told the House Appropriations Committee the United States is still pressing newly industrialized south Asian nations that have tied their currencies to the dollar to let those currencies strengthen against the U.S. currency. "We have seen some strengthening of those currencies (but) not as much as we would like," he said. "We have been somewhat disappointed in the results so far, but we intend to continue these discussions," he said.

Shr 16 cts vs 23 cts Net 385,747 vs 549,928 Revs 10.5 mln vs 9,037,596 Year Shr 40 cts vs 58 cts Net 946,024 vs 1,352,709 Revs 36.2 mln vs 30.6 mln

Shr loss four cts vs loss six cts Net loss 92,917 vs loss 104,038 Revs 21.9 mln vs 5,091,000

Shr loss 30 cts vs loss 31 cts Net loss 1.0 mln vs loss 1.0 mln Revs 2.3 mln vs 1.7 mln Year Shr profit 0 10 cts vs loss 45 cts Net profit 508,000 vs loss 1.5 mln Revs 5.8 mln vs 6.7 mln NOTE:1986 year and qtr net includes loss of 37,000 dlrs and 538,000 dlrs, respectively from from discontinued operations. 1986 net includes 1.7 mln dlr credit. 1985 year and qtr includes gain of 1.0 mln dlrs and loss of 190,000, respectively from discontinued operations.

The U.S. Agriculture Department said it will begin charging interest tomorrow on the over 12 mln dlrs the Department of Transportation, DOT, owes USDA to pay for its share of the cost of shipping food aid on U.S. vessels. USDA General Sales Manager Melvin Sims told the Senate Appropriations Agriculture Subcommittee his department had billed DOT 12 mln dlrs, and that interest on that amount and an additional charge would begin accruing April 1. USDA's Foreign Agricultural Service Administrator Thomas Kay told Reuters DOT could owe USDA as much as 20 mln dlrs. The two departments are trying to hammer out an accord on how to fund the increasing share of food aid required to be shipped on U.S. flag vessels under a 1985 farm bill provision on cargo preference. Sims said the agencies were near to reaching a memorandum of understanding governing how DOT would pay for its share of the cargo preference costs. Under the 1985 bill, the percentage of food aid shipments carried on U.S. vessels was to increase gradually over three years to 75 pct in 1988 from 50 pct. Although the increased cost was to be funded by DOT, Sims said that department to date has contributed no money.

Shr three cts vs 80 cts Net 46,000 vs 1,220,000 Revs 11.5 mln vs 13.0 mln Avg shrs 1,608,000 vs 1,530,000

Devon Resource Investors said as of January one, its estimated proven reserves increased by 443,000 net equivalent barrels to 32.4 billion cubic feet of natural gas and 660,000 barrels of oil, compared with 29.5 bcf of gas and 700,500 barrels of oil as of Jan one, 1986. Devon said that its estimated future net revenues attributable to reserves is about 58 mln dlrs with a present value, discounted at 10 pct, of 38 mln dlrs. It also said that it expects to have sufficient cash flow to cover its annual payout of 60 ct per unit and expand its drilling budget in 1987.

Echo Bay Mines Ltd said it discovered a gold deposit in the Cove area near its McCoy gold mine in Nevada. Echo Bay said it encountered gold in 39 of 42 drill holes at Cove. It said seven holes averaged 0.185 ounce gold a short ton and 1.8 ounces of silver, with the seven intersections averaging 118 feet in thickness beneath 25 feet of overburden. The discovery is on the McCoy property, one mile northeast of the McCoy open pit, heap leach gold mine, which is expected to produce about 85,000 ounces of gold this year, Echo Bay said.

Moody's Investors Service Inc said it affirmed Home Shopping Network Inc's 350 mln dlrs of Ba-3 senior notes and B-2 convertible subordinated Eurodebentures. Moody's said Home Shopping leads the shop-at-home industry and is profitable, but noted that a newly emerging industry is associated with risk. A proposed 300 mln dlr debt offering will increase leverage, though proceeds will be used to redeem high interest cost debt. It also cited Home's plans to expand its customer base, product line and pending plans to acquire Baltimore Federal Financial FSA as factors that would increase financial risk.

Transworld Corp Liquidating Trust said it expects to make an initial distribution to beneficiaries valued at 20.10 dlrs per unit from the proceeds of the sale of Hilton International Co. The value of the distribution assumes yesterday's closing price of UAL's common stock of 56.50 dlrs per share. Earlier, UAL announced that it completed the purchase of Hilton International Co for 835.7 mln dlrs in cash and 2.5 mln shares of UAL Inc common stock. Total value of the sale is about 977.2 mln dlrs, Transworld said. Pursuant to the sale, UAL exercised its option to substitute cash for 200 mln dlrs of debentures and 55,493 shares of common stock, Transworld Liquidating said. Each unit of beneficial interest in the trust will be allocated 0.051675 shares of UAL common stock. The aggregate value of the distribution is 975.8 mln dlrs. The balance of the cash in the trust will be held by the Trust until April 29 and will be used to satisfy all ouststanding liabilities and obligations of the trust. After satisfaction of its liabilities and obligations, the trust would make a second distribution to its beneficiaries of any remaining cash on or about April 29. Trading in the beneficial interests, which are listed on the New York Stock Exchange, will cease after today. In order to receive the distribution, beneficiaries must surrender the certificates representing their beneficial interests. The trust was formed at year end 1986 to facilitate the sale of Hilton International.

Shr 2.90 dlrs vs 1.44 dlrs Net 8,862,000 vs 4,391,000 Revs 221.6 mln vs 265.3 mln NOTE: Translated from Italian lire in U.S. dollar equivalents at the exchange rate prevailing at Dec 31, 1986.

Honduras will tender April 2 for U.S. and non-U.S. flag vessels to import 19,369 tonnes of wheat in bulk, an agent for the country said. The agent said Honduras is seeking vessels to deliver 7,369 tonnes during a period that includes laydays of April 15-30, and 12,000 tonnes with laydays of May 15-30. Offers are due no later than 1200 hrs EST, April 2, and will remain valid through the close of business the following day, the agent said.

Shr loss 6.94 dlrs vs loss two cts Net loss 2.20 billion vs profit 7.0 mln Revs 1.55 billion vs 2.44 billion Note: 1986 shr and net include writedowns totalling 2.08 billion dlrs before a reduction in deferred income taxes of 571 mln dlrs. Net also includes 214 mln dlrs in accumulated foreign exchange losses Canadian funds Note continued: shr after preferred dividends

Dome Petroleum Ltd, earlier reporting a 2.20 billion dlr 1986 loss compared to year-earlier profit of 7.0 mln dlrs, said the loss was mainly due to write downs totalling 2.084 billion dlrs before a reduction in deferred income taxes of 571 mln dlrs. The loss also includes 214 mln dlrs in accumulated foreign exchange losses, the company said. "The dramatic drop in energy prices in early 1986 reverses much of the progress the company has made in the two previous years," Dome chairman J. Howard Macdonald said in a statement. "But even a net loss of this magnitude has very little bearing on the day-to-day operations of Dome," chairman Macdonald said. "It merely reflects the realistic carrying value of the company's assets in today's economic environment, and the absolute need for reaching a timely agreement with our lenders on a debt restructuring plan to assure the company's continued existence," he added. Dome is now trying to reach agreement on a complex plan for restructuring debt of more than 6.10 billion dlrs. Dome said it charged the 214 mln dlrs in accumulated foreign exchange losses to current expenses because of the uncertainty arising from its proposed restructuring plan. Normally the expenses would be amortized over the remaining period of the loans to which they apply, it said. Dome also said the write downs included a fourth quarter reduction in the value of its oil and gas properties of 1.20 billion dlrs, before a reduction in deferred income taxes of 305 mln dlrs. The fourth quarter writedown was in addition to a charge of 880 mln dlrs on certain other assets, taken mainly in the third quarter. Dome said the 1.20 billion dlr fourth quarter charge resulted from a year-end accounting change made under new full cost accounting guidelines by the Canadian Institute of Chartered Accountants. The company said it previously determined a write down of conventional oil and gas properties was not required at September 30, under the previous method of calculating the limitation of oil and gas values. Dome said the most significant accounting change under the new guidelines is using current oil and gas prices in calculations instead of escalating price forecasts. Terms of Dome's proposed debt restructuring plan preclude the company from making an accurate estimate of future financing costs, which are used in the new accounting calculations, it said. As a result, Dome adopted current prices and costs and a 10 pct discount factor in the calculations, which substantially conform with accounting rules prescribed by the U.S. Securities and Exchange Commission, the company said. Dome said operating income from its crude oil and natural gas segments fell by 2.50 billion dlrs to a 1986 loss of 1.71 billion dlrs from prior year earnings of 737.0 mln dlrs. Dome said the steep drop in crude oil and natural gas operating income was due to write downs totalling 1.93 billion dlrs and lower energy prices that sharply reduced revenue. Reduced production of natural gas and lower utilization of Dome's offshore drilling fleet in the Beaufort Sea also contributed to the decline, it said. Earnings from its natural gas liquids business fell by 79 pct to 42.0 mln dlrs from 199 mln dlrs in 1985. Cash from operations dropped to 5.0 mln dlrs from year-ago 542.0 mln dlrs and unrestricted cash balance declined to 202.0 mln dlrs from 466.0 mln dlrs. Dome said 1986 crude oil production in 1986 was maintained at prior year's levels through new drilling activity and improvements in productivity. Natural gas production fell by nine pct as a result of lower domestic and export sales, it said. Oil and field natural gas liquids production totalled 86,000 barrels a day, compared to 87,000 bpd in the prior year. Natural gas production fell to 536.0 mln cubic feet a day from 591.0 mcf a day.

Shr loss 9.42 dlrs vs loss 3.85 dlrs Net loss 55.5 mln vs loss 21.4 mln Revs 114.9 mln vs 120.0 mln Avg shrs 6,460,000 vs 5,719,000 Year Shr loss 6.80 dlrs vs loss 4.77 dlrs Net loss 36.0 mln vs loss 26.2 mln Revs 478.9 mln vs 437.9 mln Avg shrs 6,016,000 vs 5,713,000 Note: Net includes realized capital gains of 2,610,000 vs 2,442,000 for qtr and 18.1 mln vs 13.6 mln for year. 1986 net also includes gain on termination of pension plan of 2,614,000 for qtr and year, and tax loss of 3,605,000 for qtr. Includes pretax gain from sale of common stock in Guaranty National Corp of 5,722,000 for year. Revised estimated calculation of workers compensation earned premiums decreased 1986 earned premiums by 10 mln. Year-ago results restated to reflect deconsolidation of Guaranty National.

Shr loss 1.37 dlrs vs 1.59 dlrs Net loss 38.6 mln vs 42.5 mln Revs 31.4 mln vs 59.4 mln Note: 1986 net includes pretax writedown of 23 mln on oil and gas properties and a 30.3 mln non-cash provision for impairment of geothermal property.

The complex task of wielding control over monetary policy in an increasingly fast-moving global economy could be aided by tying policy to commodity prices, the newest member of the Federal Reserve Board says. Commodity prices are already considered by the Fed in the making of monetary policy. But they would be given a much greater role under an idea being floated by Governor Robert Heller, who joined the board last August. He conceeds that much more study of the idea is needed, but argues that such an arrangement, particularly if it were adopted by other major industrial countries, could reduce the volatility of exchange rates. Moreover, it could help stabilize of the prices of commodities themselves, slowing changes in inflation. His idea, which many conservative economists find appealing, has some backing among board members appointed in recent years by President Reagan. It would complement the present system of opening or closing the monetary screws based on the pattern of inflation, key indicators such as unemployment, and the rise or fall of the money supply. Changes in the money supply can lead to changes in interest rates and affect economic activity directly. Discussed on and off for a long time, the commodity concept is part of a growing search for a system that anchors monetary policy and widely-fluxtuating currency prices to a more solid base. "What is needed is an anchor or reference point that can serve as a guide for both domestic and international monetary purposes," says Heller. In the past, this anchor was gold but the United States went off the gold standard because the global economy had vastly outstripped gold supplies. A return to the gold standard is generally dismissed out of hand by most policymakers on the grounds that the largest producers of gold are the Soviet Union and South Africa. The so-called fixed rate system, scuttled in the early 1970s, is still considered unworkable in the present world. But the current system of floating currencies in which currencies can fluxtuate widely, adding vast pressures to the monetary system, is also being widely questioned. Some have suggested that the system might benefit from a formal approach that mandates intervention by countries when currencies wander above or below agreed to levels but there are major problems with this also. For one thing, there is justifiable concern that countries might be relunctant to intervene if they felt it might be detrimental to their own domestic economy. Moreover, some question whether concerted intervention can make much of an inpact if the overall market does not agree with the fundamental judgement. The poorest countries have called for a monetary conference to work out a new system that, not surprisingly, helps them cope with their overpowering debt problems. Treasury Secretary James Baker, the Reagan administration's chief economic architect, has preferred to use the so-called Group of Five industrial countries or sometimes, Seven, as a forum to work out cooperative agreements on currency and other economic matters. He appears convinced that officials from West Germany, France, Britain, Japan, Italy and Canada talking quietly behind closed doors can reached reasoned decisions away from public posturing. The Heller approach, while extremely complex, could have a profound impact on the system, ideally stabalizing prices and international exchange rates. As envisioned by Heller, a basket of say, 30 major commodities ranging from wheat to oil, would be put together and prices would be measured on a regular basis. "In times of rising commodity prices, monetary policy might be tightened and in times of falling commodity prices, montary policy might be eased," he says. He notes that commodity prices are traded daily in auction markets, and a commodity price index can be calculated on a virtually continuous basis. Moreover, most commodity prices are produced, consumed and traded on a world-wide basis, so "that an index has a relevance for the entire world," he says. In addition, commodity prices are at the beginning of the production chain and serve as an imput into virtually all production processes. "Focusing on commodity prices as an early and sensitive indicator of current and perhaps also future prices pressures, the monetary authorities may take such an index into account in making their monetary policy decisions," he says. However, he says that any major change in a basic commodity such as occurred in oil during the 1970s because of action by the OPEC cartel, would have to be discounted in such a system. He says the worst thing that could happen is to allow monetary policy to spread a freakish increase in one commodity to the rest of the system and to other commodities.

Malaysia said it cut the gazetted price of rubber to 202-7/8 cents per kg from 213-1/2 cents in March, effective immediately. No export duty is applicable at this level, against 3/8 cent per kg last month, because the government raised the export duty threshold price to 210 cents per kg in early 1985. The cess for rubber research and replanting remained unchanged at 3.85 and 9.92 cents per kg respectively.

Taiwan's shipbreaking industry is expected to decline sharply this year despite the boom in 1986 because of keener competition from South Korea and China, the rising Taiwan dollar and U.S. Import curbs on steel products, industry sources said. Last year, Taiwanese breakers demolished a record 344 vessels totalling 3.69 million light displacement tons (ldt), up on 165 of 2.97 million ldt in 1985, Lin Chung-jung, a Taiwan Shipbreaking Industry Association (TSIA) spokesman, told Reuters. China scrapped vessels of some 1.1 mln ldt last year while South Korea demolished ships of 910,000 ldt, he said. Yao Liu, president of Chi Shun Hwa Steel Co, a leading shipbreaker and steel producer in Kaohsiung, told Reuters, "We expect to scrap fewer ships this year because of an expected decline in our steel product exports." Lin said many breakers predicted a 20 pct decline in scrapping operations this year due to falling demand from the U.S., Japan and Southeast Asia for Taiwanese steel. Taiwan agreed last year to voluntarily limit its steel product exports to the U.S. To 120,000 tonnes in the first half of 1987 from about 260,000 tonnes in the first half of 1986, a Taiwan Steel and Iron Association official said. Yao said the rising Taiwan dollar means Taiwan's steel exports are more expensive than South Korea's and China's. The Taiwan dollar has strengthened by some 16 pct against the U.S. Unit since September 1985 and some bankers and economists said it could appreciate to 32 to the U.S. Dollar by the end of the year from 34.23 today, Yao said. In comparison, the won rose by about five pct and yuan remained stable during the same period, he added. "We have lost some orders to South Korea and mainland China because foreign importers have switched their purchases," he said. Taiwan's steel exports to the U.S., Japan and Southeast Asia slipped to 148,000 tonnes in the first two months of 1987 from about 220,000 tonnes a year earlier, the Taiwan Steel and Iron Association official said. He said he expected further declines in later months but did not give figures.

Lightning strikes hit the grain sector of the port of Rotterdam today after employers turned down union demands for shorter working hours in a new labour agreement, transport union FNV spokesman Bert Duim said. Around 140 grain handlers stopped work, 125 of them at the two Europoort locations of Graan Elevator Mij (GEM), which handles about 95 pct of grain, oilseeds and derivatives passing through Rotterdam. GEM managing director Pieter van der Vorm said the facilities were 40 pct operational. The employers had invited the unions for talks later today, but details of the labour agreement would not be on the agenda, Van der Vorm said. It is barely one month since the end of an eight-week campaign of lightning strikes against redundancies in Rotterdam's general cargo sector, which stevedoring companies said cost them millions of guilders.

GMAC (Australia) Finance Ltd is issuing a 50 mln Australian dlr eurobond due May 6, 1991 paying 14-1/4 pct and priced at 101 pct, sole lead manager Hambros Bank Ltd said. The issue is guaranteed by General Motors Acceptance Corp. The non-callable bond is available in denominations of 1,000 Australian dlrs and will be listed in London. The selling concession is 1-1/8 pct while management and underwriting combined pays 5/8 pct. The payment date is May 6.

The Bank of Tokyo Ltd is issuing 100 mln Swiss francs of convertible notes due September 30, 1992, paying an indicated 1-1/4 pct, lead manager Swiss Bank Corp said. Terms will be set on April 9 with payment due April 30. The conversion period is from May 20, 1987 until September 20, 1992.

Year 1986 DIV 18.1p making 28.5p vs 23.74p PROFIT AFTER TAX 17.4 mln stg vs 14.1 mln TAX 0.7 mln stg vs 0.2 mln Bonus distribution rose to new record level of 125.1 mln stg vs 114.9 mln in 1985 Full name of company is Sun Life Assurance Society Plc .

Visual Technology Inc said a group led by has acquired majority ownership of Visual for 9,250,000 dlrs in equity financing. The company said Hambrecht and Quist president William R. Hambrecht and three other Hambrecht and Quist representatives have been named to the Visual board, with Robert M. Morrill, managing partner of the Boston office of Hambrecht's Hambrecht and Quist Venture Partners unit named chairman. Clifford G. Zimmer Jr. remains president and chief executive officer. Visual also said about nine mln dlrs of its debt has been converted to equity.

Shr 40 cts vs 36 cts Net 2,309,000 vs 2,076,000 Revs 28.2 mln vs 30.4 mln

French cereals exports through Rouen port rose to 751,563 tonnes between March 1 and March 25 from 603,413 tonnes in the same 1986 period, freight sources said. The Soviet Union took 263,051 tonnes of wheat and barley, Saudi Arabia 90,944 tonnes barley, China 87,259 wheat, Algeria 64,896 wheat, Bangladesh 30,000 wheat, Morocco 27,500 maize, Greece 26,700 wheat and barley, Spain 25,124 wheat, Poland 24,683 wheat, Brazil 24,082 wheat, Italy 21,659 wheat, Cyprus 20,700 wheat and maize, Israel 16,500 maize and the U.K. 8,797 tonnes wheat. Six ships are loading 120,000 tonnes of wheat, the sources said. They include 30,000 tonnes for China, 31,000 for the Soviet Union, 25,000 for Turkey, and 35,000 for Italy. Another ship is loading 17,000 tonnes of colza for the Soviet Union. Another 12 ships should arrive to load 344,000 tonnes of cereals by the end of the week. Six are to load 186,000 tonnes of wheat for the Soviet Union. Two will load 60,000 tonnes of barley for Saudi Arabia, one 28,000 tonnes of wheat for China, two 25,000 tonnes of wheat each for Algeria and Turkey and one 20,000 tonnes of wheat for Italy. Another is expected to load 20,000 tonnes of colza for the Soviet Union. Flour exports through Rouen rose to 23,457 tonnes in the 25 day period from 5,500 in the equivalent 1986 period, the sources said. Sudan took 19,327 tonnes and west coast Africa 4,130. Four ships are currently loading 32,000 tonnes, including 24,000 for Egypt, 6,000 for Tanzania and 2,000 for Mauritania. A ship is expected later this week to load 12,000 tonnes for China.

Shr 28 cts vs 31 cts Net 8,117,095 vs 8,954,904 Sales 146.7 mln vs 133.0 mln Avg shares 29.0 mln vs 28.9 mln First half Shr 48 cts vs 53 cts Net 13.8 mln vs 15.2 mln Sales 273.0 mln vs 242.1 mln Avg shrs 29.0 mln vs 28.9 mln

One grain vessel was awaiting berth at Bahia Blanca, four at Buenos Aires and five at Rosario, on March 31, National Grain Board figures show. The situation at these ports was as follows, giving the number of ships loading, awaiting berth and expected respectively. Bahia Blanca - 4, 1, 1 Buenos Aires - 1, 4, 9 Rosario - 6, 5, 7 The tonnage of grain and oilseeds to be loaded onto ships loading, awaiting berth and expected at each port was as follows. Bahia Blanca - Wheat 161,360. Buenos Aires - Maize 104,304, Wheat 14,330. Rosario - Wheat 50,400, maize 157,040, subproducts 50,100, sunflowerseed 1,000 and millet 3,100.

Kenya's economy will continue to expand this year and the government will do more to encourage investment by foreign firms and the local private sector, Planning Minister Robert Ouko said. He told a news conference that the government would soon create a special bureau to expedite processing of investment applications by local and foreign investors. Praising the role of multinational companies and local entrepreneurs in Kenya's economy, the minister promised to maintain a close working contact with the private sector. The economy grew by 5.3 pct last year, up from 4.1 pct in 1985, Ouko said. This was owing to high prices for the country's coffee exports, low oil prices, low inflation and rising real incomes, he added. "Despite rising petroleum prices and falling coffee prices, Kenya's economy is still expected to improve in 1987," the planning minister said. Agriculture would expand significantly if favourable weather continued and farmers responded to producer price rises announced in February, the minister added. Kenyan farmers are anxiously awaiting the arrival of the long rainy season, which is due to start about now. Ouko said the production of Kenya's main cash crops increased during the second half of last year. Coffee deliveries to the state-run Coffee Board of Kenya rose 17 pct and tea deliveries rose four pct during the period, he said.

Autospa Corp said it has signed an agreement to purchase 2,400,000 shares of eight pct convertible preferred stock of Cardis Corp -- representing voting control -- for 15 mln dlrs. The company said the preferred purchase will be financed by an investment group led by Autospa. It said it will also receive from Cardis five-year options to buy 2,400,000 Cardis common shares at 6.25 to seven dlrs each, depending on the time of exercise, and warrants to purchase about 3,200,000 shares at 6.60 to 7.60 dlrs each. The company said the exercise of all options and warrants by Autospa would result in a tital investment of 50 to 55 mln dlrs. Execution of a definitive agreement is expected by April 22, it said, subject to the completion of financing arrangements, and closing is expected by May 15.

Four mln common shares of common stock are being sold at 34.25 dlrs a share, said sole manager of the underwriting, Goldman Sachs and Co. In addition, 800,000 shares will be offered overseas in an offering managed by Goldman Sachs International Corp. It said General Electric Co's General Electric Credit Corp and Georgia-Pacific Corp are selling the shares.

Towle Manufacturing Co, in Chapter 11 of the U.S. bankruptcy code, said any plan of reorganization would likely lead to a dilution or cancellation of its common and preferred stock. The company also said claims for subordinated debentures would likely be paid at less than their 100 pct of their face value, and general unsecured claims would likely be paid without interest. The company has not yet filed a plan of reorganization. The company said it lost 22 mln dlrs from operations in 1986 against a loss of 67.2 mln dlrs a year ago. The company also said its independent accountants disclaimed an opinion on the financial statements for 1986 because of questions about its contination as a going concern. The company said, however, it substantially restructured its business, reducing borrowings on an outstanding credit line to 16.5 mln dlrs in 1986 from 57 mln dlrs a year ago. The company also cut its staff to 820 employees at the end of 1986 from 2,500 a year earlier.

Toshiba Corp , the Japanese electronics group which plans to enter Britain's liberalised telecommunications equipment market, risks becoming the first casualty in the current war of words over trade between Japan and the U.K., Government and industry sources said. U.K. Authorities have lost patience with Japanese trading practices and said they are seeking ways to retaliate without unleashing a damaging trade war. "Toshiba's timing seems most unfortunate for the company, as it comes exactly when we are looking for someone to punch," one official told Reuters. Earlier, said it wanted to enter the British business facsimile and key telephone market. A facsimile machine sends printed data over telephone lines, while a key telephone system is used for switching calls within a business, industry sources said. The move by Toshiba comes in the middle of a dispute over Japan's refusal to open up its telecommunications market to foreign companies. "Toshiba's timing is most extraordinary," one official at the Department of Trade and Industry (DTI) said. Tommorrow, the U.K. Government will consider what legal action it can possible take to press for Japanese reform. Prime Minister Margaret Thatcher has given notice that the U.K. Would fight the Japanese government's attempt to prevent Cable and Wireless Plc from taking a significant position in a new Japanese international telecommunications venture. "We regard this as a test case," she told Parliament. But while the U.K. Is keen to see some movement on the issue by Japan, it is also worried that recent anti-Japanese rhetoric may cause developments to get out of hand, officials said. Japanese officials in Tokyo today reiterated that Japan had no plans to bow to U.K. And U.S. Pressure to give foreign telecommunications firms a bigger role there. reuter^M

The Federal Home Loan Bank Board adjusted the rates on its short-term discount notes as follows: MATURITY NEW RATE OLD RATE MATURITY 30-123 days 5.00 pct 5.00 pct 30-123 days 124-150 days 5.90 pct 5.93 pct 124-150 days 151-349 days 5.00 pct 5.00 pct 151-349 days 350-360 days 5.96 pct 5.98 pct 350-360 days

Standard and Poor's Corp said it lowered 128 mln dlrs of Brown Group Inc's senior debt to A-minus from A and commercial paper to A-2 from A-1. The agency said a decline in sales and profits were little offset from the company's retail business. Also, foreign producers eroded Brown's assets by gaining market share. Brown's debt ratio increased to 49.8 pct by year-end 1986 as higher inventories, and a four-year stock repurchase program has required additional financing, S and P said. Restructuring efforts should improve productivity but not in the forseeable future, the agency added.

A euro-commercial paper program for Provinsbanken A/S of Denmark has been increased to 250 mln dlrs from the original 100 mln, Merrill Lynch Capital Markets said. The program allows the Danish bank to issue euro-certificates of deposit with maturities of up to 365 days. Merrill Lynch will continuue to act as dealer for the program, with Shearson Lehman Brothers International and S.G. Warburg and Co Ltd as co-dealers.

Ten grain ships were loading and 18 were waiting to load at New Orleans elevators, trade sources said. ELEVATOR LOADING WAITING Continental Grain, Westwego 1 3 Mississippi River, Myrtle Grove 2 0 ADM Growmark 1 4 Bunge Grain, Destrehan 1 0 ELEVATOR LOADING WAITING ST CHARLES DESTREHAN 1 3 RESERVE ELEVATOR CORP 0 1 PEAVEY CO, ST ELMO 1 2 CARGILL GRAIN, TERRE HAUTE 1 4 CARGILL GRAIN, PORT ALLEN 1 0 ZEN-NOH 1 1

UAL Inc said it is offering 5.5 mln shares of its common stock at 56.50 dlrs a share for a total aggregate value of 310.8 mln dlrs. UAL said it made the move principally to broaden its equity base, thereby making additional borrowing for ongoing capital requirements easier. UAL said it will add the offering's net proceeds to general corporate funds, adding that it expects to invest the money in short term cash instruments initially. UAL said Morgan Stanley and Co Inc and Merrill Lynch Capital Markets have underwritten the issue in the U.S., where four mln shares are being offered. The remaining one mln shares is being offered overseas through underwriters Morgan Stanley International and Merrill Lynch Capital Markets, UAL said. It added that an additional 500,000 shares is for overallotments.

Grumman Corp said it was awarded a 28 mln dlr contract by McDonnell Douglas Corp to develop flight control surfaces for the United States Air Force's new C-17 transport aircraft. Grumman said it will design, develop and build the ailerons, rudders and elevators for the transport. The company said the production phase of the contract has a potential value of about 300 mln dlrs.

Centerre Bancorp said it completed the acquisition of Benefit Plan Services Inc, Maryland Heights, Mo., which specializes in designing and administering small and moderately sized pension plans. Terms were not disclosed.

Chemical Fabrics Corp said an agreement in principle under which OC Birdair Inc would have purchased assets related to the architectural structures business of Dow Corning corp's ODC Inc division has been terminated. Under that agreement, Chemical Fabrics would also have become distributor of Dow Corning's Vestar silicone-coated fiberglass architecural fabrics. OC Birdair is a joint venture of Chemical Fabrics and Owens Corning Fiberglas Corp and Down Corning a venture of Dow Chemical Co and Corning Glass Works . Chemical Fabrics said once the current project backlog of Dow Corning's ODC division is completed, Dow Corning plans to discontinue its design-engineering, fabrication and installation services. Chemical Fabrics said the companies will cooperate on the development of new products for architectural and industrial applications and may supply architectural materials to each other.

French Prime Minister Jacques Chirac said that on financial issues, the United States and France had "very close" views, and he said Treasury Secretary James Baker was determined to support the February 22 Paris agreement on stabilizing foreign exchange parities. "I was very reassured by the determination of Mr. Baker to support this agreement," he said. He described the dollar's sharp fall against the yen at the start of the week as a "passing incident" and added, "Everyone is resolved to support the Paris accord." Questioned about his plan to help the world's poorest countries, Chirac said he did not envisage any large-scale debt write-offs. "I don't think we can talk of write-offs - even the poorest countries have not asked for that," he said. Chirac said he wanted commercial banks to give third world countries better terms in rescheduling their debts, and for the International Monetary Fund to soften its conditions. "One cannot pity the banks - they bear a lot of responsibility due to the encouragement they gave to these countries to take on debts. Now the banks are complaining but I do not weep for them."

E.F. Hutton Group's E.F. Hutton LBO Inc unit said it extended the expiration date for its 35 dlr per share tender offer for Purolator Courier corp to midnight EST April six from midnight April one. E.F. Hutton lbo inc said its wholly owned PC Acquisition Inc subsidiary, which is the entity making the offer, extended both expiration date and the withdrawal rights period for its pending tender for 6.3 mln shares or 83 pct of Purolator common. Hutton's offer was topped today by a 40 dlr per share bid for 83 pct of the stock from Emery Air Frieght Corp Both offers would pay shareholders a package of securities for the balance of their shares, valued at the respective tender offer prices. Hutton said as of the end of the day yesterday, about 880,000 shares of Purolator common stock repesenting 11.5 pct of outstanding shares had been validly tendered and not withdrawn. Manhattan supreme court justice Lewis Grossman today adjourned until Monday a hearing on a stockholder suit seeking to block the Hutton LBO transaction. The judge told attorneys he needed time to hear other cases. Plaintiffs cited their belief that a superior offer would be forthcoming, however one company mentioned in an affadavit, Interlink Express plc, denied that it was interested. Yesterday, Frank Hoenemeyer, a retired vice chairman of Prudential Insurance Co and currently a Purolator board member, said an initial offer from Hutton was rejected by the board of directors February third. Hoenemeyer testified that by the next meeting of the board, February 17, Hutton submitted a revised proposal which was accepted. He also testified a committee of directors had hired Goldman Sachs and Co to consider alternatives to the Hutton offer and also to consider a discussion of possible mergers with other companies including Emery and Federal Express Corp .

Fresh, heavy rains caused further damage to the Argentine 1986/87 coarse grains crop in the week to yesterday, particularly in Buenos Aires province, trade sources said. They said the sunflower, maize, soybean and sorghum crops were damaged and yield estimates affected. New production forecasts were made for all these crops. The rains over the weekend and up to yesterday registered more than 200 mm on average in western Buenos Aires and worsened the flooding in various parts of the province. The weather bureau said the rains, which in Buenos Aires have surpassed 750 mm in the last 30 days, could continue. The northeast of the country was also hit by heavy rains. In Corrientes province the rains also passed an average of 200 mm in some parts, notably the Paso de los Libres area bordering on Uruguay. In Santa Fe and Entre Rios provinces they were over 100 mm in places, in Misiones and San Luis 90 mm and in Cordoba 80 mm. The rains were less intense in Chaco and Formosa. Harvesting in areas not actually under water could also be further delayed due to dampness in the earth, the sources said. The excessive humidity might also produce rotting of the crops, further dimishing the yield, the sources added. Sunflower harvesting before the weekend rains reached 26 to 30 pct of the area sown in Santa Fe, Cordoba, La Pampa and Buenos Aires provinces. The production forecast for 1986/87 sunflowerseed has been lowered to between 2.2 and 2.4 mln tonnes, against 2.3 to 2.6 mln tonnes the previous week, making it 41.5 to 46.3 pct lower than the record 4.1 mln tonnes produced last season. The area sown was two to 2.2 mln hectares, down 29.9 to 36.3 pct on the record 3.14 mln hectares in 1985/86. The maize harvest advanced to within 26 to 28 pct of the area sown in Cordoba, Santa Fe and northern Buenos Aires. It will begin in La Pampa within about 10 days, weather permitting. Maize yield this season is now estimated at 9.6 to 9.9 mln tonnes, against last week's 9.9 to 10.1 mln tonnes, down 21.4 to 22.6 pct on the 12.4 to 12.6 mln tonnes at which private producers put 1985/86 production. The new forecast is 22.7 to 25 pct down on the official figure of 12.8 mln tonnes for last season's production. The grain sorghum harvest reached 17 to 19 pct of growers' targets, against 14 to 16 pct the previous week. The production forecast was reduced to between three and 3.3 mln tonnes, against 3.2 to 3.5 mln tonnes last week, 21.4 to 26.8 pct down on last season's 4.1 to 4.2 mln tonnes. The area sown with sorghum in 1986/87 was 1.23 to 1.30 mln hectares, down 10.3 to 15.2 pct on the 1.45 mln in 1985/86. The forecast for soybean yield this season was the least changed in relation to last week. It was put at a record 7.5 to 7.7 mln tonnes, against the previous 7.5 to 7.8 mln tonnes. These figures are 4.2 to 5.5 pct higher than last season's record of 7.2 to 7.3 mln tonnes, according to private sources, and 5.6 to 8.5 pct up on the official 7.1 mln tonnes. The adjustment to the production forecast is due to the rains and overcast conditions which have greatly reduced the sunlight needed for this crop, sources said. Producers fear estimates may yet have to be adjusted down further. The humidity could induce rotting and growers are still finding more empty pods due to excessively dry weather earlier in the season. Soybean harvesting is due to start in mid-April in southern Cordoba and Santa Fe and northern Buenos Aires.

Rio Grande/Azores and Leixoes 26,000 mt hss 14 dlrs basis one to two 4,000/1,500 Azores and 3,500 Leixoes 25/4-5/5. Paranagua/one-two ports Spanish Med 35,000 mt hss 11.50 dlrs basis one to one 10 days all purposes 20-30/4. USG/Taiwan 54,000 mt hss 10,000 shex/4,000 shex 20/4-5/5. USG/ARA-Ghent option Seaforth 40,000/45,000 long tons hss 10 days all purposes 9-15/4 try later. Dieppe/one-two ports Italian Adriatic 9,500/11,000 mt bulk wheat 3,000/2,000 6-12/4. St Lawrence/one-three ports Marseilles-Manfredonia range 20,000/35,000 mt bulk wheat 5,000/222,500 10-15/4. Chimbote/Kaohsiung 9,500 mt bulk/bagged fishmeal 250 ph/200 ph 20/4-5/5. Immingham or Foynes/Red Sea 25,000 mt bulk barley 4,000/3,000 10-15/4 alternatively try t/c. USG/Maracaibo 10,000 mt wheat (three grades) three days/1,000 1-15/4.

Rotterdam/Karachi 20,000/21,000 mt shredded scrap 7,000/1,100 15-30/4. Bin Qasim/Shanghai 25,000 mt pig iron 1,500 fhex/1,200 shex 1-10/4. Chungjin/Manila 4,200 mt steel coils 800/liner discharge 23-30/4. Bilbao/one port Vietnam 5,000 mt steels fio 1,000/500 end April Singapore/Mizushima 6,000/10,000 mt steel scrap fiot 1,200/3,00 2-12/4.

South Africa/Salvador, Brazil 15,000 long tons manganese ore 2,500/1,500 end April. Callao/Crotone 5,000 mt minerals 4,000/2,000 spot. Geraldton/Tampico 13,500 mt bulk mineral sands fio 10,000/2,000 1-10/5. Itea/Dunkirk 20,000 mt bauxite seven days all purposes 10-13/4. Tampico/North Spain 15,000 mt ore two days shinc/3,000 shex 5-25/4. One port German North Sea/USG 10,500 mt bulk ore 2,500/4,000 7-13/4.

Oper shr loss two cts vs loss 13 cts Oper net loss 236,000 vs loss 1,131,000 Revs 26.6 mln vs 26.3 mln Year Oper shr profit two cts vs loss 15 cts Oper net profit 286,000 vs loss 1,292,000 Revs 105.3 mln vs 95.3 mln NOTE: Net excludes discontinued operations gain 20,000 dlrs vs loss 1,291,000 dlrs in quarter and gain 60,000 dlrs vs loss 1,590,000 dlrs in year. Net excludes extraordinary loss 38,000 dlrs vs gain 1,941,000 dlrs in quarter and gains 162,000 dlrs vs 1,941,000 dlrs in year. 1986 net both periods includes writedowns of 290,000 dlrs of oil-related seismic data.

Shr loss eight cts vs profit four cts Net loss 365,430 vs profit 165,508 Revs 5,577,244 vs 4,643,803 NOTE: 1986 net includes nonrecurring expenses of 408,518 dlrs.

Nuclear Metals Inc said it has received a 6,300,000 dlr U.S. Army contract for 105 millimeter depleted uranium penetrators used as ammunition for the M-1 tank.

Delfzyl/India 14,700 mt bagged sugar about 30 dlrs 750/1,000 ppt a/c Benham. Antwerp/Lagos 12,000 mt bagged sugar 750/750 try liner discharge 5-20/4 a/c E D and F Man. T/C single or tweendecker 16,000/19,000 tonnes dw del Queensland mid-April/early-May for trip with bulk sugar redel China duration about 30 to 40 days a/c Kawasaki. One port A-H range/Dubai 6,800 mt bagged sugar 750/750 10-15/4 a/c unnamed charterer. enquiries - Rouen-Hamburg/India 14,000 mt bagged sugar 750/1,000 15-25/4 a/c Woodhouse, Drake and Carey. Flushing/Hodeidah and Mokha 16,800 mt bagged sugar 750/750 9-15/4 Genoc. Santos/Hodeidah 10,000 mt bagged sugar about 30 dlrs 750/750 20-30/4 a/c Dutch charterer. Cargill is reported to have withdrawn its enquiries for cargoes from South Korea to India, from Constanza to India and from Buenaventura to the U.S.

The Panama Canal Commission, a U.S. government agency, said in its daily operations report that there was a backlog of 41 ships waiting to enter the canal early today. Over the next two days it expects -- 4/01 4/02 Due: 34 34 Scheduled to Transit: 41 39 End-Day Backlog: 34 29 Average waiting time tomorrow -- Super Tankers Regular Vessels North End: 25 hrs 11 hrs South End: 24 hrs 31 hrs

The Federal Reserve bought about 550 mln dlrs of U.S. Treasury bills for a customer, a spokeswoman said. She said the Fed bought bills maturing from May through September 24 for regular delivery tomorrow. Federal funds were trading at 6-3/16 pct when the Fed announced the operation.

Qtly div 32 cts vs 32 cts prior Pay May 15 Record May One

said it was lowering the interest rate on its Visa credit card to 15.9 pct from 18.6 pct, effective with the May billing statement. The bank said it was also halving its yearly Visa card user fee to six dlrs, but would retain its 15 ct fee for each transaction. A bank spokesman said the previously reported call by the Canadian Parliament's finance committee on March 20 for a substantial cut in credit card rates "was a factor" in the move, but he would not elaborate. Canada's minister of state for finance Thomas Hockin had threatened legislation to reduce the rates, which apply to unpaid balances, if the financial institutions did not voluntarily act. The Canadian Imperial Bank spokesman said "the bank card market is a very competitive one and we have to move to stay competitive." Canadian Imperial's new rates match those of , which lowered its rates before the finance committee report. Canadian Imperial Bank added that cardholders will be allowed to choose between the 15 ct transaction fee or the six dlr yearly card fee. It will also eliminate the 50 ct minimum monthly transaction fee, it said. Minister of State for Finance, Tom Hockin, said in the House of Commons today he was "delighted" with the bank's cut in its credit card rate. "I would hope retail stores and other financial institutions will look to their rates as well," Hockin said during the daily question period.

Telecom Plus International Inc said it has received all regulatory approvals needed to change its name to TPI Enterprises Inc.

Itel Corp said it completed the previously announced purchase of the container fleet and certain related assets of Flexi-Van Leasing Inc for about 130 mln dlrs cash and marketable securities, 30 mln dlrs in notes, three mln shares of newly issued Itel common and assumption of certain liabilities. The company said it obtained financing from a syndicate of major banks for 150 mln dlrs.

Magma Copper Co, a subsidiary of Newmont Mining Corp, said it is lowering its copper cathode price by 0.25 cent to 65.50 cents a lb, effective immediately.

Escagen Corp said it has completed an initial offering of common stock, raising 18 mln dlrs, and has completed its previously announced purchase of the assets and business of International Plant Research Institute.

Upland Minerals and Chemicals Corp said it agreed to acquire Consolidated Brazilian Mines International Inc, a public company with one mln acres of diamond and gold properties in Brazil. Terms were not disclosed. Consolidated owns 42 mining concessions in three regions of eastern and northern Brazil -- Gammara, Santo Antonio and Diamazon, the company said. Upland also said the previously announced acquisition of Aslaminas Aslambeck Mining Corp, a Minas Gerais, Brazil, mining concern, will produce revenues of 9.6 mln dlrs a year for the next 25 years. New York-based Upland is traded over-the-counter.

Inspeech Inc said it acquired Norma Bork Associates Inc and Bork Medical Services Inc for undisclosed terms. These firms, with combined revenues of about one mln dlrs, are providers of speech pathology, physical therapy and occupational therapy services.

Gulf barge freight rates continued to show a firmer tone in the nearbys on the assumption that changes in the Gulf posted prices will encourage increases in both PIK-and-roll activity and barges shipments, with a total of 21 barges traded this morning on the ST Louis Merchants' Exchange call session, versus nine yesterday, dealers said. Quotes included - - This week Mississippi River (Granite City, MLA if P/O) traded at 175 pct of tariff, five percentage points above yesterday's bid. - Next week Mississippi (Alton/Granite City, MLA if P/O) bid five points higher at 175 pct, offered at 190. - Five barges each week April MidMississippi River (Dubuque/south) traded at yesterday's bid of 170 pct. - April Illinois River (ex Chicago) 160 pct bid, offered 10 points higher at 170. - May same section 140 pct bid, offered five lower at 145. - May MidMississippi River (Dubuque/south) bid 2-1/2 points higher at 142-1/2 pct, offered at 145. - June/July lower Mississippi River (Memphis/Cairo) offered at 120 pct, no bids. - June/Aug upper Mississippi River (Lacrosse/Savage) offered at 150 pct, no bids. - Oct/Nov MidMississippi (Dubuque/south, L/H Nov Clinton/south) 170 pct bid/177-1/2 offered - no comparison. - December Illinois River (ex Chicago) 122-1/2 pct bid/127-1/2 offered - down 2-1/2 points on offer.

Crime Control Inc said it reached a definitive agreement under which a subsidiary of Hawley Group Ltd will buy assets and assume certain liabilities of Crime Control for 51.3 mln dlrs. Of this amount, it said about 47 mln dlrs would be available for distribution to the company's banks, debenture holders and shareholders. The balance would be used to pay various state taxes and other expenses relating to the transaction, and to establish reserves to provide for certain unassumed obligations of the company. Crime Control said it would use proceeds to pay its bank lenders approximately 28.6 mln dlrs, representing about 87 pct of the principal amount of all its indebtedness to bank lenders. It also said it would propose to acquire all of its 20 mln dlrs worth of outstanding 10 pct convertible subordinated debentures for an aggregate of approximately 15.4 mln dlrs and propose liquidation of the company with shareholders receiving an estimated 54 cts a share. As reported earlier, Crime Control is in default on approximately 33 mln dlrs of bank debt and in default under the indenture governing its convertible subordinated debentures. On January 19, 1987, Crime Control, which installs, services and monitors electronic surveillance systems, said it retained Rothschild Inc to arrange for the sale of the company.

Seven tugs will attempt to refloat the South Korean motor bulk carrier Hyundai New World tonight, Lloyds shipping intelligence service said in its latest update. The vessel grounded close to Itaqui port in Brazil last night after undocking from Ponta da Madeira terminal. Lloyds said the 200,000 dwt vessel is carrying about 180,000 tons of ore. Five holds are partially flooded and there is some leakage of bunkers from double bottom tanks. At low water tide the vessel has a list of five degrees to port and the list increases as the tide rises.

Three for two stock split Pay and record date subject to shareholder confirmation May four Qtly dividend 5-1/4 cts vs four cts Pay May 15 Record May one Note: dividends declared on pre-split shares. Laidlaw Transportation Ltd

Security Pacific National Bank and Provident National Bank said they increased their prime lending rates a quarter point to 7-3/4 pct. They said the move is effective immediately.

Gould Inc said it has completed the sale of its Systems and Simulations Division to the unit's management for an undisclosed price. Gould said the move is part of its plan to divest its defense systems businesses and focus on its computer and electronics sectors. Gould added that it accounted for the division as a discontinued operation.

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

The Union Bank subsidiary of Standard Chartered PLC said today it was raising its prime lending rate to 7.75 pct from 7.50 pct, effective immediately.

Shr loss 1.92 dlrs vs profit five cts Net loss 5.6 mln vs profit 136,598 Revs 1.4 mln vs. 2.5 mln Year Shr loss 3.81 dlrs vs profit 21 cts Net loss 10.8 mln vs profit 435,176 Revs 7.6 mln vs 9.4 mln NOTE:1986 4th qtr includes write-off of about 373,000 dlrs or 13 cts and writdown of assets of 4.0 mln dlrs. 1986 year includes 4.1 mln dlrs 1st qtr writedown.

General Motors of Canada Ltd, a unit of General Motors Corp, said about 1,600 hourly-rated employees at the Oshawa plant will be laid off for one week due to high inventories. The workers affected produce the Oldsmobile Ciera and Pontiac 6000 models, a spokesman said.

Westpac Banking Corp in New Zealand said it will increase its indicator lending rate by 1.5 percentage points to 22.5 pct from April 7. Westpac said in a statement the increase reflects high costs of funding. The bank said nervousness in the wholesale deposit market is creating uncertainty about the immediate outlook for interest rates. Liquidity is expected to remain tight over the next month and this will put upward pressure on interest rates. Base lending indicator rates of the other three trading banks range between 21.0 pct and 21.5 pct.

Interest rates on the London money market were slightly firmer on news U.K. Chancellor of the Exchequer Nigel Lawson had stated target rates for sterling against the dollar and mark, dealers said. They said this had come as a surprise and expected the targets, 2.90 marks and 1.60 dlrs, to be promptly tested in the foreign exchange markets. Sterling opened 0.3 points lower in trade weighted terms at 71.3. Dealers noted the chancellor said he would achieve his goals on sterling by a combination of intervention in currency markets and interest rates. Operators feel the foreign exchanges are likely to test sterling on the downside and that this seems to make a fall in U.K. Base lending rates even less likely in the near term, dealers said. The feeling remains in the market, however, that fundamental factors have not really changed and that a rise in U.K. Interest rates is not very likely. The market is expected to continue at around these levels, reflecting the current 10 pct base rate level, for some time. The key three months interbank rate was 1/16 point firmer at 10 9-7/8 pct.

The Bank of France said it sold a total 8.45 billion francs worth of treasury tap stocks through its latest monthly tender, at which it offered a choice of one floating rate and two fixed rate tranches. It sold 3.6 billion francs worth of the treasury's 8.50 pct June 1997 tap at an average price of 96.86 pct giving an average yield of 8.78 pct, up from 8.72 pct at its last tender of the same tap a month ago. It also sold 3.15 billion worth of 8.50 pct November 2002 stock at an average price of 97.24 pct and average yield of 8.83 pct, against 8.98 pct when it was last sold on January 8. The bank sold 1.7 billion francs of floating rate 1999 tap stock at an average price of 97.06 pct, giving an average spread of 0.39 percentage points above the 13-week treasury bill reference rate, little changed from the 0.40 point spread at the last offering a month ago. Total demand at today's auction was 28.7 billion francs, including 5.1 billion for the 8.50 pct 2002 tranche, 13.95 billion for the 8.50 pct 1997 tranche and 9.65 billion for the 1999 floating rate tranche.

Keihanshin Real Estate Co Ltd is issuing a 25 mln dlr equity warrant eurobond due April 27, 1992 paying an indicated coupon of 2-1/4 pct and priced at par, lead manager Daiwa Europe Ltd said. The issue is guaranteed by Sumitomo Bank Ltd and final terms will be set on April 8. The issue is available in denominations of 5,000 dlrs and will be listed in Luxembourg. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The warrants are exercisable from May 18, 1987 until April 13, 1992. The payment date is April 27.

Syria will hold a buying tender on April 8 for 36,000 tonnes of white sugar for shipment in June, July and August at a rate of 12,000 tonnes a month, traders said.

The onset of cooler weather in Brazil during the southern hemisphere winter is expected to have a stabilising effect on a weak coffee market, West German trade sources said. "The annual fear of frost in Brazil will probably grip the market sometime this month until June or early July," one trader said. The trade believes the International Coffee Organization (ICO) is unlikely to tackle the re-introduction of quotas before its September meeting and until then the market will not see any unexpected sharp moves in either direction.

CPC International Inc said it has completed the sale of its South African subsidiary Robertsons Pty Ltd to a consortium of European and South African investors for an undisclosed amount in excess of book value due to the increasing difficulty of operating there. It said the operation accounted for less than two pct of worldwide sales of 4.5 billion dlrs in 1986. The company said small royalties expected to result from use of CPC trademarks by the new owners will be utilized for social programs in south Africa." It said no significant impact on earnings is expected from the sale.

New applications for unemployment insurance benefits rose to a seasonally adjusted 355,000 in the week ended March 21 from 341,000 in the prior week, the Labor Department said. The number of people actually receiving benefits under regular state programs totaled 2,480,000 in the week ended March 14, the latest period for which that figure was available. That was up from 2,454,000 the previous week.

Britton Lee Inc said it expects to report a loss on lower sales than it had anticipated for the first quarter. The company earned 119,000 dlrs before a 70,000 dlr tax credit on sales of 7,227,000 dlrs in the year-ago period.

The European Community (EC) is to boost spending to help the jobless this year. The EC's executive commission said in a statement spending on its so-called social fund would rise to 3.1 billion European Currency Units from 2.5 billion ECUs in 1986. The fund is designed to help boost job creation and improve worker mobility, and supplement national schemes in the EC's 12 member states. Another 60 mln ECUs could be added if EC ministers switch unused project credits to other programs, the Commission said. Italy is the largest net beneficiary in 1987, getting 635 mln ECUs, with Britain in second place with 580 mln.

Istituto Mobiliare Italiano> said it was not in a position at present to formulate proposals on an IMI bond issue convertible into Fiat SpA shares or carrying warrants for exercise into these shares. The IMI statement, which referred to recent press reports that such an issue was imminent or possible, said IMI was still examining the problems involved, but gave no further details.

Standard and Poor's Corp said it raised to A from BBB-plus the preferred stock of MDU Resources Group Inc. S and P affirmed the company's A-rated first mortgage bonds and A-minus unsecured industrial revenue bonds. About 300 mln dlrs of debt and preferred were outstanding at December 31, 1986. The rating agency cited recent redemptions that reduced the layer of preferred in the company's capital structure. S and P expects fundamentals to remain strong for electric utility and natural gas pipeline and distribution units.

The Reserve Bank said it would offer for tender 200 mln dlrs of 13-week treasury notes next week. The Bank added it would take up 300 mln dlrs of 13-week notes at the average yield. The bank will not offer any 26-week notes for tender next week.

West German unemployment, unadjusted for seasonal factors, fell to 2.41 mln in March from 2.49 mln in February, the Federal Labour Office said. The total represents 9.6 pct of the workforce compared with 10.0 pct in February. The seasonally adjusted jobless total rose, however, in March to 2.23 mln from 2.18 mln in February, it added. In March last year the unadjusted unemployment total stood at 2.45 mln and represented 9.8 pct of the workforce. Seasonally adjusted unemployment was 2.29 mln. The Federal Labour Office said the number of workers on short time rose by 80,629 to 462,802 and the number of vacancies increased by 15,263 to 180,047. Labour Office President Heinrich Franke, announcing the figures, said the hesitant decline in the unadjusted jobless total reflected continuing bad weather, slack activity in the capital goods sector and structural changes in the coal and steel industry. In a separate statement, the Federal Statistics Office said the rise in the overall number of people in employment had slowed in February. The Office said that, according to estimates for February, 25.7 mln people were in work, a rise of around 240,000 or 0.9 pct compared with the same month in 1986. It noted that in January the year-on-year rise was 250,000 or 1.0 pct and the number in work stood at 25.78 mln. The decline in February compared with January reflected seasonal factors, it added.

, the overseas offshoot of Swedish insurance group Forsakrings AB Skandia said it was buying a 29.9 pct share in the London-quoted property and financial services company . No financial details were given. Nevi Baltic, with a 1986 turnover of 20 mln stg and total assets of 70 mln stg, is controlled by Norwegian finance company which will retain a 30.1 pct stake in the British unit, Skandia said in a statement. The deal is subject to formal approval from the Swedish central bank, the statement added.

Tug crews are preventing the movement of foreign-flag container vessels in and out of the ports of Sydney, Melbourne and Fremantle, shipping sources said. They said maritime unions imposed bans on late Wednesday for reasons that are obscure but seem to be linked with claims for a pay rise above the 10 dlrs a week awarded by the Arbitration Commission nationally to all workers recently. Only about 10 vessels are being delayed but the bans will affect container terminal movements and will disrupt liner schedules, they said. The dispute goes to the Commission on Monday, they said.

Grain handling at Rotterdam port's main grain terminal was at a standstill today as members of the largest Dutch transport union FNV staged a lightning strike for the third day running. Pieter van der Vorm, managing director of Graan Elevator Mij (GEM), which handles 95 pct of grain passing through the port, said their main Europoort terminal was out of action because of a strike by technical staff. The actions, in support of union demands in negotiations over a new labour agreement, began on Wednesday when grain handlers stopped work. Van der Vorm said that if strikes continued on today's scale for some time vessels coming to unload grain in Rotterdam would face delays, but this was not happening yet. Wednesday's actions left GEM's facilities 40 pct operational, and there were only limited strikes yesterday. Talks between unions and employers yesterday and today produced no result, but FNV spokesman Bert Duim said the union was prepared to put their key demand, for a 36 hour working week, at the bottom of the agenda. Van der Vorm said, however, the union's demands on a range of issues were far in excess of the management's final offer.

South Korea will pay about 20 pct more for ethylene imported from Japan in the second quarter of the year because increased plastic production in both countries has boosted demand and tightened supplies, chemical industry sources said. South Korea has agreed to pay Japanese trading houses just over 400 dlrs C and F per tonne, up from an average of 350 dlrs in the first quarter and throughout 1986, they said. South Korean demand for imported ethylene this month has risen to 17,000 tonnes from 10,000 last month, and the country may face difficulties covering the extra volume, they said. , a producer of high density polyethylene (HDPE) and polypropylene, will more than double its ethylene requirements to 9,000 tonnes a month from 4,000 when it completes a plant expansion at the end of this month, the sources said. import requirements have risen to 8,000 tonnes a month from 6,000 tonnes last year to meet strong demand from , which makes HDPE and ethylene glycol, and , which produces low-density polyethylene and vinyl chloride monomer, they said. But Japan's ethylene plants are already operating at almost full capacity of 4.5 mln tonnes a year just to fulfill domestic demand, the sources said. "And even if Japan had the additional ethylene, there is a logistical problem of finding extra appropriate-sized vessels to ship it to Korea," said one trading house source. Japanese trading companies are looking to alternative sources to supply South Korea's needs, including Saudi Arabia, Qatar and Mexico, they said. But long-haul voyages are expensive as the product has to be shipped at a temperature of minus 103 degrees centigrade to keep it in a liquid form, they said. Japan has no plans to invest further in the ethylene industry in order to cope with the additional demand, despite rising prices, trading house sources said. South Korea has two projects in hand which will increase its ethylene production capacity by 500,000 tonnes a year by the end of 1989, so the strong demand surge for imports is only a medium-term trend, they said.

The Belgian National Bank cut interest rates on one, two and three-month treasury certificates to 7.30 pct from 7.40 pct effective immediately, the bank said in a telex message. The Bank last adjusted its short-term treasury certificate rates on March 23, when it also reduced rates for all three periods by 0.10 points. A National Bank spokesman said the latest adjustment would bring the rates closer in line with currently prevailing interbank interest rates. The spokesman said it was too early to predict whether the move would herald a reduction in discount rate, which currently stands at eight pct, when the Bank holds its regular weekly meeting at which the rate is discussed next Wednesday. The discount rate generally moves in tandem with the three-month treasury certificate rate. However, there is no formal link and the discount rate was not adjusted following the March 23 changes.

Tug crews are preventing the movement of foreign-flag container vessels in and out of the ports of Sydney, Melbourne and Fremantle, shipping sources said. They said maritime unions imposed bans on late Wednesday for reasons that are obscure but seem to be linked with claims for a pay rise above the 10 dlrs a week awarded by the Arbitration Commission nationally to all workers recently. Only about 10 vessels are being delayed but the bans will affect container terminal movements and will disrupt liner schedules, they said. The dispute goes to the Commission on Monday, they said.

Active timecharter fixing by Soviet operators to cover USSR grain imports featured the freight market, ship brokers said. At least two fixtures were reported on Soviet account to lift EC grain, with a 22,000 tonner booked from Tilbury for a voyage via lower Baltic Sea and redelivery passing Skaw at 4,000 dlrs daily and a 27,000 tonner from Ceuta for a voyage via the U.K. And redelivery Skaw-Cape Passero at 4,500 dlrs daily. The Soviets also secured a 34,000 tonner from Gibraltar for a trans-Atlantic round trip at 4,500 dlrs daily and a 61,000 tonner for similar business at 6,750 dlrs daily. Brokers said several other fixtures were also thought to be connected with Soviet grain, including a 69,000 tonner from Taranto for five to seven months at 6,500 dlrs daily. Similar fixing was reported yesterday at 6,000 dlrs. Other timecharter fixing included a 14,000 tonner from Indonesia to the U.S. Gulf at 2,800 dlrs daily and a combined carrier of 75,000 tonnes dw from the U.S. Gulf to Italy at 9,000 dlrs daily. Severel vessels were booked from Antwerp-Hamburg range, including a 61,000 tonner bound for Singapore-Japan at 7,500 dlrs daily and a 16,000 tonner destined for west coast India at 5,000 dlrs. Grain fixing was much quieter out of the U.S. Gulf, with no fresh business seen on the significant routes to the Continent or Japan, although tonnage was secured for at least five small corn cargoes from the Gulf to Jamaica at between 21 and 25 dlrs. Wheat from the River Plate and Buenos Aires to Sri Lanka received 26 dlrs. Market talk suggested 11 dlrs had been paid for grain from the U.S. North Pacific to Japan but no confirmation was available. Fairly active grain fixing emerged out of the Continent, however, with maize covered from Nantes to Egypt at 15 dlrs, and bagged flour from Greece to China at 27 dlrs. Barley cargoes were arranged from Immingham to the Red Sea at 17.25 dlrs and from Foynes to Jeddah at 17.25 dlrs.

Nerco Inc said it has agreed to acquire a 47 pct working interest in the Broussard Gas Field in southern Louisiana from privately-owned for about 22.5 mln dlrs in cash. Nerco said the interest being purchased will give it estimated proven oil and gas reserves equal to six billion cubic feet of natural gas. The property includes six gas wells, one oil well two undeveloped drilling locations, a central production facility and a gas gathering system. Nerco is 90 pct owned by PacifiCorp .

Net 90,501 vs 56,960 Assets 42.0 mln vs 34.9 mln Deposits 35.9 mln Loans 27.6 mln vs 23.9 mln NOTE: earnings per share and 1985 deposits figure not supplied by company.

Dutch dairy and general foods manufacturer Koninklijke Wessanen NV , said it is planning further world-wide acquisitions and forsees strong profit growth over the next 10 years. Company chairman Gerrit van Driel told journalists at the presentation of Wessanen's 1986 report he already expected 1987 first quarter profits to show an increase. The company last month reported a 16 pct increase in 1986 net profits to 72.7 mln guilders, after 62.3 mln in 1985. This was achieved despite a 25 pct drop in the dollar's guilder value, van Driel said. Van Driel said profits would have been nine mln guilders higher if the US currency had remained at its average 1985 level of 3.20 guilders. Turnover, at 3.7 billion guilders in 1986, was 450 mln guilders down because of the lower dollar and lower raw material prices. Total 1985 turnover was 4.2 billion guilders. US activities accounted for 34 pct of 1986 turnover, compared with 22 pct in 1982. Wessanen now has 15 separate businesses in the US out of a total of 62 world-wide. Van Driel said the company would continue an active takeover policy in the US, but would be wary about paying more than its current price/earnings ratio of 17 times net profit. He added that Wessanen teams were seeking acquisition possibilities in Brazil, Taiwan, Thailand and China. He said the company had an ample cashflow of 100 mln guilders and would if necessary make new share issues. Van Driel said he expected a 1987 US turnover of 700 mln dlrs. He said and , taken over late last year, have a combined annual turnover of 126 mln dlrs which was not included in the 1986 account. All sectors saw strong growth in 1986, resulting in a 13 pct increase in operating income to 120 mln guilders. Key to this growth was the successful introduction of new products, which were greatly enhanced by a number of consumer-oriented US acquisitions, van Driel said. Consumer products represented 50 pct of total 1986 turnover, compared with 35 pct in 1982, van Driel said. The company, which is already listed on the London, Zurich, Basle and Geneva stock exchanges as well as Amsterdam, aims to be quoted in Frankfurt and Dusseldorf in May, van Driel said. Van Driel stressed that while these listings would not be accompanied by new share issues, they provided easy vehicles for the company to raise capital for future expansion. He estimated that 33 pct of the company's shares were in foreign hands. The company's 1986 US turnover of about 750 mln dlrs made a listing on one of the New York exchanges a logical next step, van Driel said without elaborating. Despite EC dairy restrictions Wessanen, which produces around 10 pct of all Dutch cheese, saw good growth prospects for its dairy sector within Europe, van Driel said.

Synthetic Industries is offering 110 mln dlrs of senior subordinated debentures due 1999 yielding 11-5/8 pct, said sole manager Merrill Lynch Capital Markets. The debentures have an 11-1/2 pct coupon and were priced at 99. Non-callable for five years, the issue is rated B-3 by Moody's Investors Service Inc and B-minus by Standard and Poor's Corp. The issue was increased from an initial offering of 100 mln dlrs.

Cyprus Minerals Company said it is decreasing its electrolytic copper cathode price by one cent to 66.0 cents a pound, effective immediately.

Time Inc's chief financial officer, Thayer Bigelow, told security analysts the company is "comfortable" with Wall Street estimates that 1987 earnings will be in a range of 3.75 dlrs to 4.25 dlrs per share. In 1986, Time reported earnings of 5.95 dlrs per share, including a number of special items. Bigelow said in adjusting the 1986 results for the special items and also removing the earnings of American Television and Communications Corp , Time earned 2.35 dlrs per share in 1986. Turner Broadcasting System Inc said the investment by the cable consortium would be in Turner Broadcasting, not directly in CNN. The consortium would infuse up to 550 mln dlrs in Turner Broadcasting in return for a 35 pct equity interest. Ted Turner, Chairman, would retain a 51 pct interest, a Turner Broadcasting spokesman said. Bigelow said the company is continuing its previously announced 10 mln share repurchase program and has bought back 4.1 mln of its own shares. He said 700,000 shares were purchased in the first quarter of 1987 at an average price of 81 dlrs per share. Bigelow said the company will always have a share buyback program in place whenever it believes it is a better long-term investment than starting or acquring a business. But he did not give any specifics on further repurchases beyond the 10 mln shares already announced. On the subject of acquisitions, Richard Munro, chairman and chief executive said the company is not interested in investing in over-the-air broadcasting, but continues to look at all areas in which it is currently engaged. Munro said book publishing is an area that interested Time. In 1986 the company purchased Scott and Foresman, its biggest acquisition ever. N.J. Nicholas, president and chief operating officer, said the company might be interested in a relatively small book business. He said following the recent agreement for the sale of Harper and Row to the News Corp Ltd , "there may be pieces that Murdoch doesn't want," referring to News Corp chairman Rupert Murdoch. Asked if the company's SAMI business is for sale, Munro said it is a "delicate subject", and "we're looking at all the options." SAMI is a marketing information service for the food industry. Published reports have stated it could be worth as much as 500 mln dlrs. Bigelow said that Time's Home Box Office added subscribers last year and the trend is continuing in the first quarter of 1987. However, he said, HBO's results in the quarter will be down slightly, but in the first quarter of 1986 there was a special gain in the HBO unit. Nicholas said that HBO and Cinemax had combined subscriber growth of 800,000 for last year. He also said the tax rate in 1987 will remain at just under 50 pct because of the repeal of investment tax credits and higher state and local taxes. He said he sees a decrease in the tax rate in 1988 of five or six percentage points. Munro said the company does not plan to increase its dividend. Trygve Myhren, chairman and chief executive of American Television and Communications, said the unit is looking at getting involved in the home shopping video area. "It would be foolish not to be a player there," he said. He said the company had talks with Home Shopping Network Inc prior to that company's public offering last year, but nothing came of the talks.

The Panama Canal Commission, a U.S. government agency, said in its daily operations report that there was a backlog of 30 ships waiting to enter the canal early today. Over the next two days it expects -- 4/03 4/04 Due: 36 28 Scheduled to Transit: 38 38 End-Day Backlog: 28 18 Average waiting time tomorrow -- Super Tankers Regular Vessels North End: 19 hrs 8 hrs South End: 20 hrs 16 hrs

Soo Line Corp said it agreed to sell its Lake States Transportation Division to the newly formed Wisconsin Central Ltd. The division conducts rail operations over about 2,000 miles of railroad in Minnesota, Wisconsin, Michigan and Illinois. Soo Line said in January it was seeking bids for the property. Terms were withheld, but Soo has estimated that the transaction will result in a one-time after-tax loss of 8.0 to 15.0 mln dlrs.

PBS Building Systems of America Inc, an Anaheim, Calif., company, told the Securities and Exchange Commission it has acquired 150,000 shares of Modulaire Industries, or 5.0 pct of the total outstanding common stock. PBS, whose subsidiaries design, make, sell and lease nonresidential relocatable modular buildings, said it bought the stake for 855,768.75 dlrs "to acquire an equity interest in Modulaire, while it evaluates Modulaire." Depending on several factors, PBS said it may decide to buy additional Modulaire common shares.

The Federal Home Loan Bank Board said home mortgage rates fell from early February to early March to their lowest point in nine years, but the rate of decline was slower than it had been in recent months. The bank board said the average effective commitment rate for fixed-rate mortgages for single family homes and a 25 pct loan-to-price ratio with a maturity of at least 15 years was 9.48 pct in early March. The rate was four basis points lower than a month ago, only one-eighth the size of decline in the previous month, the bank board said. Rates for adjustable-rate mortgages decline eight basis points from early February to 8.43 pct in early March, the bank board said. The drop was far less than the 15 basis point decline in the previous period, the agency said. The average effective interest rate on all loans closed by major mortgage lenders declined nine basis points from early February to early March, the agency said. The fall brought the rate to 9.14 pct was the lowest since December 1977, it said. The effective rate for ARMS was 8.39 pct, 15 basis points below a month earlier. For fixed-rate loans it was 9.36 pct, 14 basis points below a month earlier, the agency said.

Beneficial Corp said the sale of its American Centennial Insurance Co subsidiary to was approved by the Delaware Insurance Department. Under the transaction, American Centennial will receive a cash infusion of 200 mln dlrs, including the settlement of tax sharing agreements with Beneficial Corp, Beneficial said. It will also receive 25 mln dlrs from Beneficial International Insurance Co, another Beneficial subsidiary being purchased by the management-led group of First Delaware, the company said.

Mid-State Federal Savings and Loan Association said it and First Federal Savings and Loan Association of Brooksville reached a definitive merger agreement. As previously announced, Brooksville shareholders will get cash and stock in exchange for their shares. The transaction is expected to be completed during the summer 1987.

U.S. and Japanese officials meet tomorrow to try to settle a dispute over semiconductor trade and to cut short the 300 mln dlr penalty tariffs President Reagan has ordered imposed on Japanese exports. But U.S. officials held out little hope that any accord could be reached before the tariffs of 100 per cent - up from about five per cent - are to take effect on April 17. The Customs Bureau last week started to levy a bond on the Japanese goods that Reagan ordered penalized. The penalties would be retroactive to March 31. Reagan said on March 27 when ordering the tariffs that he hoped the Japanese would soon end their unfair practices in semiconductor trade and that sanctions could be lifted. Technical meetings are to be held today and tomorrow, with meetings at a more senior level scheduled for Thursday and Friday. Public hearings on the sanctions are set for April 13. The Japanese aides here for the technical talks include Shigeru Muraoka, director-general of international trade policy of the Ministry of International Trade and Industry (MITI), and Masashi Yamamoto, deputy director-general of the information and machinery bureau. Meeting with them will Glen Fukushima, director of the Japan office of the U.S. Trade Representative's Office, and Jim Gradoville, of trade representative's office of industry and services. The two sides in the Thursday and Friday talks will be headed by Deputy U.S. Trade Representative Michael Smith and MITI vice minister Makoto Kuroda.

FCS Laboratories said its merger talks with another unidentified company in the health care field ended without agreement. The talks began last August, the company said. The company also said it will no longer actively seek out potential merger partners, but will respond to serious inquiries.

World Bank President Barber Conable expressed concern that trade protectionism, at the heart of a new showdown between the United States and Japan, might spread throughout the industrial world. But in an interview with Reuters, Conable said the action by the United States to slap tariffs on certain electronic goods from Japan did not mean the countries were heading for a full-scale trade war. Conable said the World Bank has been pressing developing countries to open their markets, arguing that a free trading environment increased the possibility of global economic growth. "We have, in fact, been making adjustment loans to many countries in the developing world which have encouraged the opening of their markets and we want to be sure that the developed world doesn't close at the same time," he said. He said the U.S. action against Japan was "a significant retaliatory step but it did not constitute a basic change in trade policy." The interview came just before next week's semi-annual meetings of the Bank and the International Monetary Fund. Referring to Brazil's recent interest payments moratorium, Conable also said the global debt situation was very serious and must be closely watched. He said the Bank, which in the past has concentrated on making loans that assist the basic underpinnings in the developing world such as dams, roads and sewers, will increasingly make assistance available for economic reform. The Bank has increased these loans, in part because of the debt crisis that has found countries desperately in need of new funds for balance of payments adjustment and economic reforms aimed at opening their markets, encouraging foreign investment and reducing government's role in the economy. "We're comfortable with adjustment lending, we expect, however, that it will never reach a majority of our portfolio," Conable said. He made clear, however, that adjustment lending would continue to increase as a proportion of overall Bank lending for some time. He noted, "the problem of debt was a severe one and many countries are asking for adjustment assistance because of the problem of debt." Conable, is a a former Republican Congressman from New York chosen by President Reagan for the Bank position last year. He is an associate of Treasury Secertary James Baker who launched the U.S. strategy for shoring up indebted nations in October, 1985 which included a call for increased adjustment lending by the World Bank. Conable also said that he expected the result of a major study of the Bank's organization to be completed in the next several weeks. He said the decision to seek a reorganization was based, in part, on the fact that the Bank had come under fire from the poorest countries for not doing enough to help and from the richest countries because of inefficiency. the reorganization is considered a major initiative by Conable, and is being closely-watched by the agency's 151 member-countries as an indication of his management style and priorities. "I want to be sure this institution is viewed by those who must support it as soundly constituted so that it will be permitted to grow," Conable said. However, he said "I don't believe there is anything basically wrong with this institution and I don't believe it has to have any redefinition of its purpose." He said, however, that it was apparent that the debt initiative proposed by Baker has given the Bank a central role in dealing with the debt crisis. Conable added that cooperation between the Bank and its sister agency, the International Monetary Fund, was good and that he talked often with IMF Managing Director Michel Camdessus on a variety of issues. On a personal level, Conable said that he not feel a need to put his personal stamp on the Bank noting that "I don't have a particular mission here except to be useful to the institution and to the process of development." He added, "so I don't feel a great calling to personalize the institution." On the development needs of sub-Sahara Africa, Conable said that the Bank was constantly reviewing new ways for assisting the region, noting that half of the recently agreed financing of 12.4 billion dlrs for Bank's International Development Association was earmarked for Africa. Leading industrial nations are expected to consider new forms of debt relief for the very poorest nations, like those in the Sub-Sahara, during next week's meetings.

Spain's Minas de Almaden y Arrayanes S.A. has agreed with Algerian producer ENOF to establish a minimum price of 300 dlrs per flask for spot mercury sales, Almaden spokesman Jesus Gallego said. In response to enquiries from Reuters, he said his company had raised the minimum price for its spot sales from 240 dlrs per flask following talks with ENOF. In a separate press release, the company said that ENOF and Almaden held talks in Istanbul a week ago with Turkish mercury producers on ways to improve prices, but Gallego said he was not in a position to say what action the Turkish companies would be taking.

Bell Petroleum Services Inc said it agreed to begin talks with Regal International Inc to form a plan of reorganization under which Bell would become a subsidiary of Regal. The plan would be subject to Bankruptcy court approval due to Bell's status as a debtor-in-possesion under Chapter 11. the company's expect to file a plan by the end of May. This agreement terminates litigation between the companies concerning previous attempts at a plan of reorganization.. Bell is also free to continue talks with any third parties interested in an acquisition, it said.

Healthvest said its board declared a dividend for the final three weeks of the March quarter of 14 cts, payable April 28 to holders of recrod April 15. Previously, it dclared a special interim dividend of 42 cts for January 1 to March 9 in connection with its recently completed offering. The combined dividend totals 56 cts for the March quarter, an increase from the prior quarter's dividend of 55 cts

A grain elevator in Burlington, Iowa, exploded today, leaving five injured. The elevator, operated by Archer Daniels Midland Co. of Decatur, Ill., is a terminal elevator on the Mississippi River, Doug Snyder, assistant to the vice president said. The cause of the explosion and the extent of damage to the elevator was not immediatley known.

Anadarko Petroleum Corp is raising 100 mln dlrs via an offering of convertible subordinated debentures due 2012 with a 5-3/4 pct coupon and par pricing, said sole manager Kidder, Peabody and Co Inc. The debentures are convertible into the company's common stock at 32.625 dlrs a share, representing a premium of 23.11 pct over the stock price when terms on the debt were set. Non-redeemable for two years, the debentures have a mandatory sinking fund beginning in 1998 calculated to retire 70 pct of the issue prior to maturity, Kidder said. Moody's and S and P ratings are pending.

Snyder Oil Partners L.P. told the Securities and Exchange Commission it made an exchange offer to Cenergy Corp that would allow Snyder to acquire up to 49.9 pct of the company's common stock. Under the exchange offer, which was proposed yesterday to Cenergy's officers and directors, each share of Cenergy common stock could be exchanged for 8.50 dlrs in market value of Snyder's limited partnership units, Snyder said. Under the proposal, Snyder, which already holds 1,170,400 Cenergy common shares, or 12.0 pct of the total, could boost its Cenergy stake to a total of 49.9 pct, it said. Snyder did not say whether it has received any response to its proposal from Cenergy. If it acquires the 49.9 pct stake, Snyder said in its SEC filing it would use the stock to "obtain a proportionate beneficial interest" in the company's assets and liabilities. It said it has not decided its next move it the exchange proposal does not lead to negotiations with Cenergy. Snyder said it may boost its stake or sell some or all of its current holdings. It repeated a statement made in its initial SEC filing last month that it is considering several alternatives, including seeking control of Cenergy.

The U.S. Agriculture Department said it has accepted a bid for an export bonus to cover the sale of 50,000 tonnes of hard red winter wheat to Sri Lanka. A bonus of 37.44 dlrs per tonne was awarded to Continental Grain Co on the shipment scheduled for April 8-16, Melvin Sims, USDA general sales manager said. An additional 10,000 tonnes of wheat are still available to Sri Lanka under the export enhancement program, Sims said.

U.S. mine production of gold rose to 244,900 troy ounces in December from 244,749 ounces in November, the U.S. Interior Department's Bureau of Mines said. U.S. imports of gold in December were 692,700 ounces, vs 2,011,754 ounces in November and 611,811 ounces in December, 1985. Gold exports totaled 243,191 ounces in December, vs November's 374,468 ounces and 350,078 ounces in December a year earlier. Mine production of gold in the 12-month period Jan-Dec, 1986, totaled 2,951,151 ounces, vs 2,475,436 ounces over the same period in 1985. Gold imports in Jan-Dec, 1986, totaled 15,749,447 ounces, vs 8,225,999 ounces for the same period in 1985, while exports stood at 4,612,919 ounces and 3,966,678 ounces over the respective periods, the bureau said.

Shr loss 67 cts vs loss seven cts Net loss 2,410,000 vs loss 245,000 Revs 11.0 mln vs 10.9 mln 12 mths Shr loss 21 cts vs profit 43 cts Net loss 748,000 vs profit 1,571,000 Revs 46.9 mln vs 40.5 mln

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

Brazil's state oil company Petrobras is pledging to export 4.6 mln cubic meters of fuel, or 28.9 mln barrels in 1987, a company spokesman said. He said that represents a total sale worth 600 mln dlrs. The volume is 27 pct higher over 1986 sales, which totalled 3.6 mln cubic meters, or 22.6 mln barrels. The United States, Africa and Latin American are Brazil's main fuel buyers, the spokesman said.

Business loans on the books of major U.S. banks, excluding acceptances, fell 822 mln dlrs to 277.94 billion dlrs in the week ended March 25, the Federal Reserve Board said. The Fed said that business loans including acceptances fell 971 mln dlrs to 280.22 billion dlrs.

The Argentine Grain Board issued the following figures covering shipments of major export grains in the week to April 1, in tonnes, with comparisons for the previous week and the same week in 1986. Bread wheat 235,800 205,700 115,500 Maize 158,400 189,000 272,700 Sorghum 26,500 18,700 39,900 Soybean nil nil nil Sunflowerseed 1,800 18,800 nil Cumulative figures for April 1 and this calendar year, with the previous year's figures in brackets, are as follows, in thousands of tonnes: Bread wheat 64.3 (44.5), 3,074.4 (2,851.4) Maize 48.3 (107.7), 486.1 (922.4) Sorghum 5.1 (22.2), 108.1 (188.8) Soybean nil (nil), nil (nil) Sunflowerseed 0.9 (nil), 43.2 (nil)

Grain and oilseed complex export business reported since yesterday by government agencies and private exporters - Japanese crushers bought 4,000 to 5,000 tonnes of Canadian rapeseed in export business overnight for May shipment...Greece has agreed to buy 27,000 to 33,000 tonnes of Spanish corn for spot shipment, with Italy buying 6,000 to 7,000 tonnes of Spanish corn for last/half April shipment, a spokesman for cargill's spanish unit said...Taiwan bought 54,000 tonnes of U.S. soybeans for April 20/May 5 delivery C and F... (Continued) - The India State Trading Corp bought 20,000 tonnes of optional origin soybean oil for May 20/June 20 shipment and 6,000 tonnes of RBD palm olein for April 25/May 25 shipment at its import tender yesterday...Pakistan rejected offers at its tender for 12,000 tonnes of RBD palm oil, but is expected to retender next week...The U.S. Department of Agriculture (USDA) said it has accepted a bid for an export bonus to cover the sale of 50,000 tonnes of U.S. hard red winter wehat to Sri Lanka for April 8/16 shipment, with an additional 10,000 tonnes of wheat still available to Sri Lanka under the Export Enhancement Program (EEP)... (Continued) - The USDA said it has accepted a bid for an export bonus to cover the sale of 18,000 tonnes of U.S. durum wheat to Algeria for June 20/30 shipment, with an additional 228,000 tonnes still available to Algeria under the EEP. Tenders - Jordan will tender Monday, April 6, for 225,000 tonnes of U.S. hard and soft wheats for various April/Nov shipments under the EEP. Market talk and comment - The USDA said Turkey has been made eligible for the sale of up to 70,000 tonnes of medium grain milled rice under the EEP... Market talk and comment (continued) - The USDA announced Colombia has been made eligible for sale of up to 15,000 tonnes of U.S. barley malt under the EEP...The Canadian Grain Commission reported Canadian wheat exports in the week ended March 29 totalled 447,200 tonnes, compared with 277,700 the previous week, with 1986/87 season exports so far up to 10,228,600 tonnes versus 10,637,500 for the 1985/86 season, with barley exports 38,800 tonnes, 106,700 tonnes, 4,804,500 and 1,892,600 respectively, rapeseed 43,900 tonnes, 50,700 tonnes, 1,292,600 and 920,000 respectively and flaxseed 20,700 tonnes, 13,600 tonens, 450,900 and 392,600 respectively... Market talk and comment (continued) - Pakistan is not emerging as a major wheat exporter as World market prospects are not good enough, a government official said...Active timecharter fixing by Soviet operators to cover USSR grain imprts featured the ocean freight market this morning, ship brokers said...Dry cargo futures on the BIFFEX extended yesterday's strong advance, with sharp gains of 22 to 17 points in response to rumors of higher rates for grain business from the U.S. Gulf to Japan, dealers said.

First Quarter Anchor Financial Corp shr 31 cts vs 31 Nine Months Biomet Inc shr 49 cts vs 36 Federal Co shr 3.55 dlrs vs 1.66 Richardson Electronics shr 59 cts vs 53 Year Eac Industries Inc oper shr loss 65 cts vs loss 97 cts Fine Art Acquisitions shr 15 cts vs 10 Mangood Corp oper shr loss 6.07 dlrs vs loss 7.64

The Brazilian state oil company Petrobras has made a second oil discovery in the Amazon region, President Jose Sarney said. He said the well had an initial flow of 150,000 cubic meters of gas and 220 barrels of oil per day. It is situated 14 kilometres from the first well to be discovered in the region last year, which is currently yielding 500,000 cubic meters of gas and 900 barrels of oil daily. The wells, the biggest onshore well in the country, are on the banks of the river Uruc in the Amazon basin 3,600 kilometres (2,250 miles) north of Brasilia.

Houston Lighting and Power Co, a unit of Houston Industries Inc, said it will redeem on May 4 at par plus accrued interest about 140 mln dlrs of first mortgage bonds. The utility expects the redemption will save it nearly three mln dlrs annually in interest expenses. Houston Lighting recently exchanged 390 mln dlrs of high coupon bonds for nine pct bonds, saving about 11 mln dlrs in annual interest costs. Houston Lighting plans to buy back its outstanding 11-1/4 pct bonds of 2009, 12s due 2010, 12-3/8s of 2013 and 11-5/8s due 2015 and part of its 10-1/8s of 2004.

Gulf States Utilities Co said its condition has "significantly deteriorated" and that its operating cash reserves will be inadequate by May 1987 unless it receives additional financing or rate relief from state public utilities commissions in Texas and Louisiana. In the company's newly-released annual report and 10-K filing, Gulf States said its bank lenders had notified the utility last month that no additional credit would be granted. Gulf States said the banks had requested the utility to begin making prepayments by the end of April of 45 mln dlrs more than the estimated 1987 lease payments of 40 mln dlrs. "The circumstances increase the likelihood that the company may have to seek protection from its creditors under the bankruptcy code," Gulf States said. The utility had previously said it might be forced to consider filing for bankruptcy because of limited rate increases granted by state regulators in connection with Gulf States' 4.3 billion dlr River Bend nuclear plant in Louisiana. "If the regulatory commissions approve the company's proposed rate moderation plan and grant the increases provided for in such plan during the initial three-year phase-in period, the company believes it could achieve financial stability," Gulf States said. In February, the Texas Public Utilities Commission granted Gulf States an interim rate increase of 39.9 mln dlrs contingent upon the utility obtaining a new 250 mln dlr line of credit to pay operating expenses. The utility had sought 144.1 mln dlrs in rate hikes in Texas. Gulf States has appealed a decision by Louisiana state regulators rejecting its application for 100 mln dlrs in emergency rate relief. In 1986, Gulf States earned 244.9 mln dlrs on revenues of 1.47 billion dlrs, compared to profits of 265.4 mln dlrs on sales of 1.85 billion in the previous year.

Defence Secretary Caspar Weinberger has ordered the U.S. Navy to increase its presence near the Gulf in an effort to fulfil President Reagan's pledge to keep oil flowing to Europe and Japan, The New York Times reported. The newspaper quoted Pentagon officials as saying the Navy would keep the aircraft carrier Kitty Hawk on station in the Arabian Sea and the rest of the Indian Ocean until May, three months longer than planned. The Navy would then have a carrier battle group of six to eight warships in the area at all times rather than part of the time, as happens now, the paper said. The paper said that last month U.S. Intelligence sources said they had spotted land-based anti-ship missiles of a Chinese design known in the West as the HY-2 near the Strait of Hormuz. It said their purpose was seen as a signal Iran was ready to continue and perhaps step up the Gulf shipping war against Iraq. U.S. Carriers or battleships would sail out of range of those missiles, but within striking distance, the paper quoted officials as saying. From several hundred miles at sea, carriers could launch aircraft bombing runs or missile strikes, and battleships could fire long-range missiles, the paper said.

Growth in oil consumption in the Western industrialised countries is likely to slow to around one pct this year compared with 2.3 pct in 1986, the International Energy Agency (IEA) said. Oil use in the 24 countries of the OECD increased by around one pct in first quarter 1987 to 35.9 mln bpd, the IEA said in its Monthly Oil Market Report. Growth in OECD countries is expected to come primarily from transport fuels, as in 1986. But if average consumer prices are higher than 1986, the rate of growth for these fuels may be below last year's 3.6 pct, it said. The IEA said that assuming crude oil and product prices stay close to current levels, some destocking by end-users can be expected. If that happens, natural gas will also regain some of the market share it lost to heavy fuel in 1986, and there may be slightly less growth in transport fuels. IEA estimates on April 1 put oil stocks in the OECD area at 428 mln tonnes, representing 98 days of forward consumption. This is about the same level as at the begining of the year. The agency said this flat trend is explained by the projected seasonal consumption decline in the second quarter of the year which offset a reduction in stocks. It said initial estimates indicate that company stocks fell by 1.2 mln bpd in OECD countries in the first quarter of the year. This followed a small rise in January of 0.4 mln bpd but a decline of 1.5 mln bpd in February and 2.5 mln bpd in March. It is possible that final data will show a larger draw, particulary for March, it said. As crude production also fell, there is likely to have also been a decline in non-reported stocks, particularly at sea, the IEA said. Company stocks on land in the OECD rose to 326 mln tonnes on April 1 against 316 mln on April 1 1986. Governments built up strategic stocks to 102 mln tonnes against 97 mln in the period. The year-on-year trend of government stock building is continuing with year-on-year company stocks also rising, more or less in line with consumption, after declining for five years, the IEA noted. Oil stocks on land in the U.S. And Canada were put at 206.6 mln tonnes on April 1, down from the 214 mln tonnes on January 1 and equivalent to 94 and 98 days of consumption, respectively. Oil stocks in Western Europe were 147.4 mln tonnes on April 1, down from the 154 mln on January 1 but still equivalent to 94 days of consumption. World oil supply fell in the first quarter by about two mln bpd to 45.2 mln bpd from 47.2 mln bpd in last quarter 1986. This drop was mostly due to a decline in OPEC crude production to around 15.5 mln bpd in February/March from 16.5 mln bpd in January and to the seasonal drop in exports from centrally-planned Economies, the IEA said. Total OPEC crude oil supply was 15.8 mln bpd in the first quarter, plus 1.4 mln bpd of NGLs, compared with 17.3 mln bpd of crude in the last three months of 1986 and 17.9 mln average for the whole of 1986. Supply from non-OPEC countries totalled 28 mln bpd, against 28.5 mln bpd in the fourth quarter 1986. A drop in Saudi Arabian output to a tentatively forecast 3.3 mln bpd in March from 3.6 mln bpd in February was the largest factor behind the OPEC production decline, the IEA said. Saudi Arabia"s Opec-assigned output quota is 4.133 mln bpd.

National Australia Bank Ltd said it lowered its benchmark prime lending rate to 18.25 pct from 18.5, effective today, but left its base rate at 18.5. The benchmark reduction brings the rate into line with the prime rates of most of Australia's trading banks, including those of two of the other three major trading banks. However, the rate is above the 18 pct - the lowest ruling rate - set by the other major, the Australia and New Zealand Banking Group Ltd , on Friday and effective today. The benchmark is based on short-term interest rate movements while the base rate is tied to longer-term trends.

Leading cocoa producers will discuss whether newly-agreed rules on an international cocoa buffer stock will succeed in reversing a sharp fall in world prices when they start four day's of talks here later today, conference sources said. Another topic likely to be discussed at the twice-yearly meeting of the Cocoa Producer Alliance (CPA) is the pact's second line of market support -- a witholding scheme under which exporters can take up to 120,000 tonnes of cocoa off the market if buffer stock purchases fail to defend prices. The International Cocoa Organisation is due to discuss the scheme at a meeting in June, and exporters could use the Yaounde talks to work out a common position on the issue, the sources said. Delegates will also be briefed on arrangements for an international cocoa research conference due to take place in Santo Domingo in the Dominican Republic next month, CPA secretary general D.S. Kamga said. The 11-member CPA include the world's top three producers of Ivory Coast, Brazil and Ghana and accounts for around 80 pct of world output.

Thailand exported 75,160 tonnes of rice in the week ended March 31, down from 88,785 tonnes the previous week, the Commerce Ministry said. It said the government and private exporters shipped 36,552 and 38,608 tonnes respectively. Private exporters concluded advance weekly sales for 22,086 tonnes against 44,483 tonnes the previous week. Thailand exported 1.23 mln tonnes of rice in January/March, down from 1.29 mln tonnes a year ago. It has commitments to export another 381,171 tonnes this year.

Kuwait may re-register part of its tanker fleet with foreign flag jurisdictions, including the U.S. And USSR, in an attempt to protect them from Iranian missile attacks in the Gulf war zone, U.S. Officials were quoted by the New York Times as saying. The transfers would allow the country of registration to escort Kuwaiti-owned ships in the Gulf. Kuwait had earlier declined an offer of U.S. Naval escorts as too public an admission of its need for protection, they said. Kuwait is also looking at flagging-out to European registries, the officials said. Soviet flag tankers transporting Kuwaiti oil through the Gulf may get Soviet escorts, the officials said. Kuwait had earlier considered having both USSR and U.S. Escorts, but the U.S. Was unwilling to give the Soviet Union a naval role in the region, the newspaper quoted the officials as saying. Kuwait has backed Iraq in the seven-year war against Iran and its ships have increasingly been the target of Iranian attacks. The U.S. And Kuwait have been negotiating for over a month on methods of protecting Kuwaiti ships.

The coupon on the 100 mln dlr warrant bond for Kansallis-osake-Pankki (K-o-P) has been set at 4-5/8 pct compared with the indicated range of 4-1/8 to 4-5/8 pct, lead manager Morgan Stanley International said. Each 1,000 dlr bond has ten warrants attached which are exercisable into K-o-P free shares at 50 Finnish markka per share. The foreign exchange rate on the seven year bond was set at 4.4450 markka to the dollar.

Showa Aluminium Corp is issuing a 100 mln dlr equity warrant eurobond due April 23, 1992 paying an indicated coupon of 2-1/8 pct and priced at par, lead manager Nomura International Ltd said. Final terms will be fixed on April 15. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The non-callable bond is available in denominations of 5,000 dlrs and will be listed in Luxembourg. The payment date is April 23.

Fire protection and security group Wormald International Ltd said British-listed has agreed to issue it with 6.15 mln common shares of one U.S. Cent par-value at 1.72 stg each. The two groups have also begun exploratory talks on a possible merger of the Holmes business with the compatible businesses of Wormald, comprising some or all of its fire protection and security businesses in the Americas and Europe, Wormald said in a statement. The issue of shares in the New York-based Holmes is conditional upon shareholder approval at a general meeting. Wormald said its stake will represent 9.99 pct of Holmes' existing issued shares and 9.09 pct of the enlarged capital. The issue will raise 10.6 mln stg which will be used for further development of the Holmes business. Wormald said the businesses of the two groups are largely complementary in terms of both geographical spread and the nature of their activities, with Holmes concentrating on burglar alarms and Wormald on fire systems. Holmes's operations are concentrated in and around New York amd Miami. It earned 11 mln U.S. Dlrs pre-tax in its last reported full year, 1985, and 6.0 mln in first half 1986.

Kuwait may re-register part of its tanker fleet with foreign flag jurisdictions, including the U.S. And USSR, in an attempt to protect them from Iranian missile attacks in the Gulf war zone, U.S. Officials were quoted by the New York Times as saying. The transfers would allow the country of registration to escort Kuwaiti-owned ships in the Gulf. Kuwait had earlier declined an offer of U.S. Naval escorts as too public an admission of its need for protection, they said. Kuwait is also looking at flagging-out to European registries, the officials said. Soviet flag tankers transporting Kuwaiti oil through the Gulf may get Soviet escorts, the officials said. Kuwait had earlier considered having both USSR and U.S. Escorts, but the U.S. Was unwilling to give the Soviet Union a naval role in the region, the newspaper quoted the officials as saying. Kuwait has backed Iraq in the seven-year war against Iran and its ships have increasingly been the target of Iranian attacks. The U.S. And Kuwait have been negotiating for over a month on methods of protecting Kuwaiti ships.

A Brazilian seamen's strike, which began on February 27 and has been tapering off for weeks, has now ended, a seamen's spokesman said. The spokesman said the seamen had signed an agreement with the state-owned Lloyd Brasileiro company on Saturday for a 120 pct salary rise. The national strike had been tailing off since mid-March as seamen struck individual accords with companies. At the height of the stoppage, seamen said about 200 ships were strike-bound.

A total of 14,685 tonnes of British intervention feed wheat were sold at today's tender for the home market, the Home Grown Cereals Authority said. Bids amounted to 19,115 tonnes against offerings of 31,528. Prices paid were at, or above, the prevailing intervention feed wheat price of 120.71 stg per tonne. Grain traders said a large part of the tonnage on offer was in stores, which would mean high transport costs to deficient areas. The European Commission recently made available 70,000 tonnes for next week's tender.

A unit of Banca Nazionale del Lavoro is issuing a 15 billion yen eurobond due May 12, 1992 paying 4-1/2 pct and priced at 101-1/2 pct, market sources said. The joint bookrunners are Tokai International and Daiwa Europe Ltd. The formal name of the borrower is Banca Nazionale del Lavoro (London Branch) (Through the Law Debenture Corporation Plc). The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is May 11 and there will be a long first coupon period.

The Bank of England said it provided the money market with a further 284 mln stg assistance in the afternoon session. This takes the bank's total help so far today to 508 mln stg and compares with its revised estimate of a 900 mln stg shortage in the system which it earlier revised up from 850 mln. The central bank made outright purchases of bank bills comprising 100 mln stg in band one at 9-7/8 pct, 56 mln stg in band two at 9-13/16 pct, 112 mln stg in band three at 9-3/4 pct and 16 mln stg in band four at 9-11/16 pct.

said it agreed to buy an initial 1,000,501 treasury shares of at 5.25 dlrs per share. Noranda also has an option until June 30, 1988, to acquire an additional 1,000,501 Sanivan treasury shares at 5.75 dlrs per share. Sanivan is the largest hazardous waste management company in Canada.

The U.S. Agriculture Department gave a preliminary breakdown of grain in the Farmer-Owned Grain Reserve as of April 1, with comparisons, based on telephone reports from farmers filed with the department's Kansas City field office, in mln bushels -- April 1 Previous Wheat 657.6 659.7 Corn 1,406.5 1,397.0 Sorghum 95.8 95.5 Barley 122.1 122.0 Oats 3.7 3.7

Ball Corp said it was awarded a one-year 12,750,000 dlr contract to supply copper-plated zinc penny blanks to the U.S. mints in Philadelphia and Denver. The new contract, effective in June, calls for shipping 23,200,000 pounds of blanks to the mint in Philadelphia and 7,600,000 pounds to Denver. It said the blanks will be manufactured in Greenville, Tenn. Ball began supplying blanks to the San Francisco and West Point mints in 1981 when the penny's content was changed to zinc from copper.

Kuwait has asked at least four countries, including the United States, Soviet Union, Britain and China, for temporary use of their flags or tankers to protect Kuwaiti oil shipments in the troubled Persian Gulf, Reagan Administration officials said. The officials confirmed a New York Times report that Kuwait wants to transfer some of its oil tankers to U.S. or Soviet registration in hopes Iran would be reluctant to launch new "Silkworm" missiles at superpower flags. The United States has vowed to keep the gulf open to international oil traffic and has warned Tehran against using the Chinese-made missiles recently installed in Iran near the mouth of the gulf. "They (the Kuwaitis) have also asked Britain, China and possibly some other European countries to lease tankers to carry their oil," one of the administration officials, who asked not to be identified, told Reuters. The United States is considering the request to temporarily transfer Kuwaiti ships to American registration, but such a move could create insurance and other problems, the officials said. U.S. defense officials told Reuters yesterday that Kuwait had decided for at least the time being not to accept a U.S. offer to use American warships to escort its tankers in the gulf, where both Iran and Iraq have been attacking shipping.

The Federal Reserve is expected to intervene in the government securities market to supply temporary reserves indirectly via customer repurchase agreements, economists said. They said the Fed is expected to execute anywhere from 1.5-2.0 billion dlrs of customer repos to offset seasonal pressures on bank reserves. Federal funds, which averaged 6.20 pct yesterday, opened at 6-1/8 pct and remained there in early trading.

Kuwait has asked at least four countries, including the United States, Soviet Union, Britain and China, for temporary use of their flags or tankers to protect Kuwaiti oil shipments in the troubled Persian Gulf, Reagan Administration officials said. The officials confirmed a New York Times report that Kuwait wants to transfer some of its oil tankers to U.S. or Soviet registration in hopes Iran would be reluctant to launch new "Silkworm" missiles at superpower flags. The United States has vowed to keep the gulf open to international oil traffic and has warned Tehran against using the Chinese-made missiles recently installed in Iran near the mouth of the gulf. "They (the Kuwaitis) have also asked Britain, China and possibly some other European countries to lease tankers to carry their oil," one of the administration officials, who asked not to be identified, told Reuters. The United States is considering the request to temporarily transfer Kuwaiti ships to American registration, but such a move could create insurance and other problems, the officials said. U.S. defense officials told Reuters yesterday that Kuwait had decided for at least the time being not to accept a U.S. offer to use American warships to escort its tankers in the gulf, where both Iran and Iraq have been attacking shipping.

Nine grain ships were loading and 16 were waiting to load at New Orleans elevators, trade sources said. ELEVATOR LOADING WAITING Continental Grain, Westwego 1 5 Mississippi River, Myrtle Grove 1 0 ADM Growmark 1 2 Bunge Grain, Destrehan 1 0 ELEVATOR LOADING WAITING ST CHARLES DESTREHAN 1 1 RESERVE ELEVATOR CORP 1 0 PEAVEY CO, ST ELMO 1 1 CARGILL GRAIN, TERRE HAUTE 1 4 CARGILL GRAIN, PORT ALLEN 0 0 ZEN-NOH 1 3

The amount of coffee stored in New York and New Orleans warehouses and certified for delivery against the New York Coffee "C" futures totalled 585,555 bags as of April 3, compared with 585,794 bags the previous week, a net decrease of 239 bags, the New York Coffee, Sugar and Cocoa Exchange said. The total comprised 392,845 bags in New York, an increase of 261 bags, and 192,710 bags in New Orleans, a drop of 500 bags. The exchange said there were nil bags pending classification. There were 56,578 bags pending certification, including 32,553 in New York and 24,025 in New Orleans, the exchange said.

Cuban president Fidel Castro told a Congress of the Union of Young Communists here that the production of crude sugar during the harvest still in progress is 800,000 tonnes behind schedule. In a speech Sunday, published in today's official paper GRANMA, Castro said unseasonable rains since January seriously interrupted harvesting and milling operations especially in the central and western parts of the island. The Cuban leader said the mechanical cane harvesters scheduled to cut over 60 pct of the cane this year were particularly "vulnerable," as muddy fields prevent operations. Neither Castro nor the Cuban press have given out figures to estimate tonnes of crude production during the present harvest or the goals for the sugar campaign. However, a cuban sugar official told Reuters that the country will be lucky if crude output reaches last year's 7.2 mln tonnes. Output of crude for the previous 1984-85 harvest was 8.2 mln tonnes. The harvest was scheduled to end April 30 but due to the present shortfalls it will be extended into May and June, the official said.

Avon Products Inc said it reached an agreement in principle to purchase , a fragrance company, for 185 mln dlrs in cash. Giorgio's annual revnues are more than 100 mln dlrs, Avon said. The acquisition has been approved by Avon's board, with the closing set for May 7. The transaction would have no impact on Avon's current dividend rate, it said. Giorgio's boutique in Beverly Hills, Calif., will be sold back to Fred Hayman, one of the shareholders, who will continue to operate it independently, Avon said. Avon said it identified Giorgio more than a year ago as a preferred acquisition candidate. It said it is launching a prestige fragrance developed in conjunction with Catherine Deneuve this spring. Giorgio will be operated as a separate subsidiary, Avon said, and would not compete with Avon's direct selling beauty products business.

Honduras will tender April 13 under Public Law 480 for U.S. and non-U.S. flag vessels to deliver approximately 52,500 tonnes of various wheats in bulk, an agent for the country said. The agent said deliveries of northern spring/dns wheat will include laydays of July 1-10 for 7,500-9,500 tonnes, August 1-10 for 8,000-10,000 tonnes, and September 15-25 for 12,500-14,500 tonnes. Deliveries of hard red winter wheat will have laydays of June 20-30 for 5,000-7,000 tonnes, July 15-25 for 6,500-8,500 tonnes, and September 15-25 for 7,000-9,000 tonnes. Offers are due by 1200 hrs EDT, April 13, and will remain valid until the close of business April 14, the agent said.

GenCorp Inc said the decision by General Partners, comprised of AFG Industries and Wagner and Brown, to end its hostile offer for the company supports its belief that the buy back offer it announced yesterday was a "financially superior alternative." GenCorp said it would annouce details of its plans to buy back 54 pct of its stock for 1.6 billion dlrs, or 130 dlrs a share, later this week. GenCorp's buy back was made to fend off the hostile 2.3 billion dlr, 100-dlr-a-share, tender offer by AFG and Wagner and Brown. Earlier today AFG and Wagner and Brown said that without the benefit of additional information available to GenCorp's management, it cannot compete economically with GenCorp's proposal. The group said it is ending its tender offer for GenCorp and promptly return to tendering shareholders all shares tendered pursuant to its offer. The group owns 9.8 pct, or 2,180,608 shares, of GenCorp's outstanding shares.

Bermuda Star Line Inc said it has leased a 23,500 ton passenger vessel from Orley Shipping Co Inc, of Liberia for a term with options extending for 15 years. The vessel, SS Liberte, will be renamed the Canadian Star and will be used for cruises to Montreal from New York, beginning in June. Orley SHipping is partially owned by Common Brothers PLC, a U.K. maritime firm which owns 60 pct of Bermuda Star's shares and arranged debt financing for the ship's purchase. Orley acquired the vessel from Banstead Shipping Ltd. Terms were not disclosed.

CarePlus Inc said it will seek shareholder approval of its proposed acquisition of certain assets and assumption of certain liabilities of Professional Care Inc . In connection with the acquisition, shareholders will be requested to approval the merger of CarePlus into its newly formed Delaware subsidiary, CarePlus said. CarePlus said its board has tentatively determined that its stock would be exchanged for common stock of the new corporation at the rate of seven for one.

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

Qtly div eight cts vs seven cts prior Payable May 15 Record APril 29

New Zealand's unemployment rate was 3.9 pct of the workforce in the quarter ended December 31, unchanged from a revised 3.9 pct (preliminary 3.8 pct) in the previous quarter but slightly above 3.8 pct in the year-earlier quarter, the Statistics Department said. The Department, citing the Household Labour Force Survey, said in a statement the number of unemployed in October- December 1986 was 61,500 against 60,500 in the September quarter and 60,500 a year earlier.

Australian trade unions said they have launched week-long strikes and other industrial action in New South Wales (NSW) to protest against new laws that would reduce injury compensation payments. Union sources said talks with the state government broke down last night, but the two sides are scheduled to meet later today in an attempt to find a compromise. Rail freight and shipping cargo movements in the country's most populous state were the first to be affected, and union officials said almost every business sector will be hit unless there is a quick settlement. The state government recently introduced a new workers' compensation act which would cut the cash benefits to injured workers by up to a third. The act is now awaiting parliamentary ratification. NSW state premier Barrie Unsworth has said workers' compensation has risen steeply in recent years and the proposed cuts would save hundreds of mlns of dollars a year. Union officials said industrial action could spread to other states as the federal government also plans to make sharp cuts in workers' compensation.