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PS NEW MEXICO <PNM> STUDIES SYSTEM PARTNERSHIP

Public Service Co of New Mexico said it is evaluating placing its electric distribution system in a limited partnership with assets of about 400 mln dlrs. The utility said it advised a customer task force this is one restructuring alternative being considered for the company's electric business. The structure is being evaluated as part of the company's overall initiative in response to several goals announced by New Mexico Governor Garrey Carruthers, it explained. Public Service New Mexico said a central feature of its reorganization concept would be to separate the company's electric utility operation into independent generation and distribution entities, creating the opportunity for a targeted 35 mln dlr a year rate decrease. Noting the use of the limited partnership structure by a variety of businesses recently, the company said it believes "the concept may well have an application in the utility business and intend to investigate it fully." The generation company would provide projected power needs of the distribution entity under a 30-year "power security agreement" which would have a federally regulated rate structure, the company said. Public Service New Mexico said the restructuring could provide for its gas and water utilities and its non-utility companies becoming subsidaries of the proposed holding company approved by the company's shareholders in May 1986. This holding company would be the general partner of the limited partnership, the company said. The company said its limited partnership concept was presented to an ad hoc customer task force convened by Gov. Carruthers to review the company's reorganization proposals. It said the reorganization and limited partnership are an alternative structure that would help reduce rates through a lower overall cost of capital. Last month the governor said "I have outlined to PNM critical goals which I have asked them to cooperate with may administration in achieving" adding the goals include immediate rate reduction, stabilization of future rates and stimulation of business expansion. The company told the task force the new distribution company, under the limited partnership alternative or otherwise, would continue to be fully regulated by state regulators. PNM's proposed generation company would continue to be owned by common shareholders through the holding company. Its rates would be set by the Federal Energy Regulatory Commission which regulates for wholesale electric power sales and transmission services. The generation company would have no retail customers. PNM said it expects to file a detailed restructuring plan with state regulators in the near future, noting approval would also be needed by FERC. Reuter 

CASTLE AND COOKE <CKE> TAKES FOURTH QTR LOSS

Castle and Cooke Inc said it would take a fourth quarter after-tax loss of 33.9 mln dlrs from the previously reported sale of its Flexi-Van container leasing business to Itel Corp <ITEL> for about 215 mln dlrs. Earlier, the company reported a loss for the fourth quarter ended January 3 of 31.9 mln dlrs, or 76 cts a share, compared with a loss of 3.3 mln dlrs, or 21 cts per share, in 1985's fourth quarter. For the year, however, the diversified holding company reported a net profit of 43.9 mln dlrs, or 56 cts a share, versus 46.4 mln dlrs, or 56 cts a share, in 1985. David Murdock, chairman and chief executive officer, said, "Both our food business and our real estate operations increased their earnings during the year (1986)." But, he added that Flexi-Van's 1986 results were hit by depressed daily rental rates for leased equipment caused by oversupplies. The company also reported that George Elkas, formerly executive vice president, has been named president and chief operating officer of Flexi-Van Corp, while William Burns has been named executive vice president of Flexi-Van. Reuter 

FED EXPECTED TO ADD TEMPORARY RESERVES

The Federal Reserve is expected to enter the U.S. Government securities market to add temporary reserves, economists said. They expect it to supply the reserves indirectly by arranging around 1.5 of customer repurchase agreements. Federal funds, which averaged 6.22 pct yesterday, opened at six pct and remained there in early trading. Reuter 

XEROX <XRX> LAUNCHES MORE POWERFUL SOFTWARE

Xerox Corp said it is launching in May a more powerful version of its Xerox Ventura Publisher desktop computer software called Release 1.1. that offers 80 new features. It said the new software, used for both long and short documents in IBM PCs, includes conversion for Hewlett-Packard Soft Fonts and more sophisticated graphics and page layout applications. Reuter 

OMNIBUS COMPUTER IN DEFAULT ON LINE OF CREDIT

<Omnibus Computer Graphics Inc> said it is in default of certain credit provisions of its line of credit with its Canadian banker, resulting from a working capital beficit of eight mln dlrs. The company said it is currently negotiating additional financing to alleviate the problem. Reuter 

CONVENIENT FOOD MART <CFMI> AGREES TO BUY CHAIN

Convenient Food Mart Inc said it has tentatively agreed to buy all the outstanding stock of Plaid Pantries Inc and two associated businesses in Oregon and Washington for undisclosed terms. Plaid Pantries owns and operates 161 convenience stores in the Portland and Seattle areas. The other business are two companies involved in the wholesale distribution of groceries and health and beauty aids, it said. Closing is expected by May 15. Reuter 

AFG INDUSTRIES <AFG> DEBT AFFIRMED BY S/P

Standard and Poor's Corp said it affirmed the BB-plus rating on AFG Industries Inc's 185 mln dlrs of subordinated debt. S and P said it believed AFG would make acquisitions of moderate size in the next few years. AFG's healthy cash flow and pro forma cash balances of 169 mln dlrs at September 30, 1986, should be adequate to fund internal expansion and moderate acquisitions. While AFG's participation in a 1.4 billion dlr bid for Lear Siegler Inc was aggressive, AFG was mainly interested in Lear's profitable auto glass operations, S and P noted. Reuter 

WAL-MART STORES INC 4TH QTR SHR 65 CTS VS 47 CTS

HOECHST CELANESE NAMES SENIOR OFFICERS

<Hoechst Celanese Corp>, recently formed from the merger of the Celanese Corp with American Hoechst Corp, a unit of <Hoechst AG>, said Juergen Dormann, former member of Hoechts AG's management board, has been named chairman and chief executive officer of Hoechst Celanese. The chemical company also said it named Dieter zur Loye, formerly president of American Hoechst, vice chairman, while Ernest Drew, former group vice president of Celanese, has been named president and chief operating officer. Hoechst Celanese said Richard Clarke, also formerly a group vice president of Celanese, has been appointed senior executive vice president of the new company, and Harry Benz, former executive vice president and chief financial officer of American Hoechst, has been named executive vice president and chief financial officer. The company also said the former Celanese Corp's fiber operations will operate separately as Celanese Fibers Inc, a wholly owned unit, pending divestment of certain polyester textile fiber assets. Reuter 

DATA ARCHITECTS <DRCH> GETS TOKYO BANK CONTRACT

Data Architects Inc said it received a contract from the <Bank of Tokyo> to expand the installation of its bank electronic support systems at the bank. It said the contract exceeds one mln dlrs. Reuter 

GENERAL DATACOMM <GDC> IN SALE/LEASEBACK DEAL

General DataComm Industries Inc said it has agreed to sell for 40 mln dlrs its Network Services facility and its corporate facility and lease back the facilities. It said it has an option to buy the buildings back at a later date. Proceeds from the financing will be used to reduce debt, it said. Reuter 

MARINE MIDLAND <MM> BUYS BROKERAGE ASSETS

Marine Midland Banks Inc said it has acquired the customer account base of New York discount brokerage firm Ovest Financial Services Inc for undisclosed terms to expand its discount brokerage operations in the Northeastern U.S. It said it will combine Ovest's activities with those of its Marine Midland Brokerage Service unit. Reuter 

U.K. ONE BILLION STG BOND ISSUE EXHAUSTED

A one billion stg issue of nine pct Exchequer stock due 2002 which became available for trading only this morning was exhausted in mid-afternoon trading on the U.K. Government bond market, dealers said. The Bank of England said the issue was no longer operating as a tap. The issue was announced Monday at a price of 96 stg pct and dealers said the Government broker's supplies were sold out this afternoon at a partly-paid 20-20/32 stg pct. The bonds started trading this morning at 20 stg pct. Dealers noted the market had seen vigorous demand throughout the day, prompted mainly by sterling strength. Dealers said that demand had been seen for the tap from both domestic and overseas sources, including from Japan and the U.S. Although the issue had not been designated as free of tax to residents abroad (FOTRA) widespread bullish sentiment for the market in general had generated foreign buying. The stock had been regarded as slightly expensive when it was announced and dealers said that even first thing this morning it had seemed slightly dear in relation to comparable existing stocks. However, sterling's continuing firm performance had prompted interest in the tap right at the outset. The issue's value had been enhanced by its partly-paid structure, which not only enabled investors to defer payment of the major part of the price until April 27, but also conferred a substantial gearing element. This meant, dealers explained, that investors who bought the bonds benefitted fully from price gains registered by the market in general, although only 20 stg pct of the total purchase price was tied up initially. REUTER 

U.S. TREASURY DEPUTY ASST SECRETARY BERGER SAYS FURTHER DOLLAR DROP COULD CAUSE INFLATION

WEST GERMANY, TANZANIA AGREE DEBT RESCHEDULING

West Germany and Tanzania have signed an agreement on rescheduling 145 mln marks worth of commercial credits, the Finance Ministry said. Tanzania will now have until April 1, 1997 to pay back the credits, some of which had originally fallen due in 1979, a ministry statement said. Interest on the credits will be paid at market rates. REUTER 

COMMISSION REPORT WARNS ON EC FINANCING

The European Community is close to bankruptcy, the EC's Executive Commission said in a report. In its bluntest ever warning about the state of EC finances, it said "The Community is at present faced with a budgetary situation which can only be characterised as being on the brink of bankruptcy." The report, dated Saturday, is meant to set the scene for a major change in the way the EC is financed, which foreign ministers are due to start debating next month. The Commission blamed the EC's new cash crisis on the "considerable reluctance" of governments to pay for decisions they themselves have taken. Reuter 

AMERICAN MOTORS CORP LATE FEBRUARY CAR SALES

WAXMAN INDUSTRIES <WAXM> TO SELL CONVERTIBLES

Waxman Industries Inc said it filed with the Securities and Exchange Commission a registration statement covering a 25 mln dlr issue of convertible subordinated debentures due 2007. Proceeds will be used to repay short-term indebtedness and for general corporate purposes, which may include acquisitions, Waxman said. The company named Drexel Burnham Lambert Inc as sole underwriter of the offering. Reuter 

DOM REPUBLIC SELLS CZARNIKOW 35,000 TONS SUGAR

The Dominican Republic sold 35,000 long tons of sugar for immediate delivery, with an option for 25,000 tons more, to Czarnikow Rionda of New York, the state sugar council announced. It was not immediately clear when the sale was made or at what price. A council communique said "the sale was made at the best prevailing conditions in the world sugar market." Reuter 

EC BACKS NEW MOVE TO ENCOURAGE UNLEADED GASOLINE

The EC Executive Commission has backed a plan to allow member countries to ban regular leaded gasoline in a move designed to encourage use of unleaded fuel. It said in a statement it backed a proposal to allow EC states to ban sales of regular grade gasoline containing lead at six months notice. The proposal, which needs approval by EC ministers, would not force any member state to impose the ban. "It's an option, not an obligation," a spokesman said. But the Commission said imposing the ban would encourage the use of unleaded fuel, as well as making it easier for gas stations by cutting the number of types of gasoline they had to stock. Reuter 

SUN RAISES CRUDE OIL POSTINGS ONE DLR ACROSS BOARD. WTI NOW 17.00 DLRS/BBL

STRONG POINT UNIT TO MARKET PRODUCT IN EUROPE

<Strong Point Inc> said its Pharmaceutical Technologies Inc subsidiary will market in Europe its Immunol-RD nutritional product, designed to protect individuals exposed to medium or minimal radiation dosage levels. The company said it will market the product in Europe because of the radiation exposure from the Chernobyl nucelar power accident. The company asserted that the product can offset the deleterious effects of radiation, which weakens the immune system. Reuter 

MICHAELS STORES <MKE> FEBRUARY SALES RISE

Michaels Stores Inc said February sales rose 26.2 pct to 8,049,000 dlrs from 6,380,000 dlrs a year before, with same-store sales up 10.6 pct. Reuter 

<DEVTEK CORP> 2ND QTR JAN 31 NET

Shr 14 cts vs nine cts Net 1,180,000 vs 640,000 Revs 25.6 mln vs 20.1 mln Six mths Shr 26 cts vs 12 cts Net 2,103,000 vs 853,000 Revs 44.8 mln vs 33.0 mln Reuter 

SAXTON INDUSTRIES LTD <SAXIF> YEAR NET

Shr 13 cts vs 41 cts Net 1,079,100 vs 3,535,205 Revs 13.6 mln vs 16.2 mln Note: Current results for 16 months after change in fiscal year end to December 31 from August 31 Reuter 

TORONTO SUN PLANS TWO-FOR-ONE STOCK SPLIT

<Toronto Sun Publishing Corp> said it planned a two-for-one split of its common shares, subject to regulatory approval and approval by shareholders at the April 21 annual meeting. Reuter 

SERVO CORP OF AMERICA <SCA> 1ST QTR JAN 31 NET

Shr 43 cts vs 41 cts Net 316,000 vs 298,000 Sales 4,857,000 vs 4,543,000 Reuter 

ELECTRO-NUCLEONICS INC <ENUC> 2ND QTR DEC 31

Shr loss 1.77 dlrs vs profit 15 cts Net loss 8,036,000 vs profit 576,000 Sales 16.2 mln vs 17.2 mln Avg shrs 4,539,437 vs 3,816,580 1st half Shr loss 1.96 dlrs vs profit 26 cts Net loss 8,231,000 vs profit 996,000 Sales 30.9 mln vs 32.2 mln Avg shrs 4,205,707 vs 3,814,141 NOTE: Current half net includes 68,000 dlr tax credit. Current year net both periods includes 6,700,000 dlr writedown of inventory of clinical chemistry products. Reuter 

WAL-MART STORES INC <WMT> 4TH QTR JAN 31 NET

Shr 65 cts vs 47 cts Net 184.3 mln vs 133.1 mln Sales 3.85 billion vs 2.77 billion Year Shr 1.59 dlrs vs 1.16 dlrs Net 450.1 mln vs 327.5 mln Sales 11.91 billion vs 8.45 billion Reuter 

FORD LATE FEBRUARY U.S. CAR SALES UP 29.3 PCT

MICROPOLIS <MLIS> TO OFFER CONVERTIBLE DEBT

Micropolis Corp said it filed with the Securities and Exchange Commission a registration statement covering a 75 mln dlr issue of convertible subordinated debentures due 2012. Proceeds will be used for general corporate purposes and possible acquisitions, Micropolis said. The company named Kidder, Peabody and Co Inc as lead manager, and Robertson, Colman and Stephens as co-manager of the offering. Reuter 

<MIRTONE INTERNATIONAL INC> 1ST QTR DEC 31 NET

Shr two cts vs two cts Net 407,396 vs 376,243 Revs 5,341,353 vs 4,292,819 Reuter 

U.S. TREASURY AIDE WARNS ON INFLATION

Thomas Berger, Deputy Assistant Secretary of the Treasury, said that a further drop in the exchange value of the dollar could cause prices to go up and trigger inflation. He told a meeting of the President's Export Council that the Japanese and the Germans have cut their profit margins to reflect recent drops in the dollar, so prices have remained much the same. But he added that if the dollar dropped further there could be inflation in the United States. Berger also said that a further devalued dollar may cause economic depressions in some U.S. trading partners, and that would not be in America's interest because it would close those markets to U.S. goods. Reuter 

INDEPENDENT AIR <IAIR> IN EXCHANGE FOR WARRANTS

Independent Air Holdings Inc said it is planning an exchange offer for its Class A warrants, which expire April 11. The company said for 30 days after the effective date of the registration statement covering the offer, it would exchange 100 dlrs principal amount of 12 pct convertible subordinated notes due 1991 plus 300 common shares for each 800 warrants plus 145 dlrs. It said interest on the notes would be payable annually in cash or common stock at the company's option, and the principal would also be payable in cash or stock at maturity. The company said if the note principal were paid in stock, a noteholder would receive 625 common shares for each 100 dlrs principal amount. It said the notes would be convertible into common stock at 16 cts per share after one year and redeemable in whole or in part at the company's option after two years. Reuter 

LEAF DISEASE HITS SRI LANKA RUBBER

A leaf disease affecting seven pct of Sri Lanka's rubber plantations may reduce output this year and raise currently depressed prices, industry officials and researchers told Reuters. About 2,900 hectares of rubber planted with the Rubber Research Institute (RRI) clone 103 have been hit by the fungus "corenes pora" which attacks the roots of the tree and kills the leaves. The disease was first discovered about six months ago. Trade sources say prices might boom once again if the crisis leads to output below the 1987 target of 143,000 tonnes. Last year's output is estimated at between 133,000 and 135,000 tonnes. Researchers say the fungus could spread to other rubber clones if no immediate action is taken. "The RRI is considering asking estates to remove the trees seriously affected by the fungus because it was too late to use chemicals to kill the disease," an Institute spokesman said. Senior industry and research officials met yesterday at Padukka, east of here, to discuss ways of controlling the fungus which is affecting estates mostly belonging to the State Plantations Corp and Janatha Estates Development Board. The two state-owned groups account for 30 pct of rubber land with the balance belonging to small private producers with a total of 145,600 hectares. The RRIC 103 is a new clone propagated by the Research Institute as high yielding and recommended two years ago for planting. Only the two state groups seriously planted these clones while smallholders preferred the low-yielding but older PBX Malaysian clones. Officials at yesterday's crisis meeting said it was decided to uproot only some of the affected trees while others would be treated. They declined to comment on other decisions taken. Trade sources said supplies had improved in the past week but prices had hit their lowest since last December. "If there is a shortage of rubber, prices are bound to rise," a spokesman for a company buying on behalf of the Soviet Union said. Rubber prices, particularly crepe, fell sharply by about four rupees a kilo between December and March. The best crepe one-X traded at 23.68 rupees a kilo, averaged 19.75 at this week's auction. Sheet prices fell by a rupee in the same period. Quantities offered at the auction also fell to an average of 300 tonnes per auction last month from 800 tonnes in December because of wintering in early February in producing areas. Over 550 tonnes were offered at this Tuesday's auction with the supply position showing improvements. Trade sources said the smaller availability of rubber last month did not raise prices as on previous occasions. "Some factors, like less storage space from excess stocks, meant we could not buy much at the auction until we disposed of the rubber we already had," one buyer said. Other sources said there were few forward contracts and speculative buying last month, while delays in steamer arrivals aggravated the problem. European buyers delayed their purchases because of winter closures of factories and also in the hope that prices would ease further. They said another problem that could hit the industry is the dry spell in producing areas. "If the inter-monsoonal rains expected in late March/April are delayed, we would have further shortages," one official said. "But this again could benefit prices," a buyer said. Reuter 

PYRO ENERGY CORP <BTU> YEAR NET

Shr 36 cts vs 66 cts Net 4,775,000 vs 9,342,000 Revs 105.5 mln vs 130.0 mln Reuter 

EC COMMISSION DETAILS SUGAR TENDER

The European Commission confirmed it authorised the export of 60,500 tonnes of current series white sugar at a maximum rebate of 43.147 European Currency Units (ECUs) per 100 kilos. Out of this, traders in the U.K. Received 43,500 tonnes, in the Netherlands 12,000, in Denmark 4,000 and in West Germany 1,000 tonnes. REUTER 

U.S. CAR MAKERS HOPE TO PROFIT FROM WEAK DOLLAR

The Geneva Motor Show, the first major car show of the year, opens tomorrow with U.S. Car makers hoping to make new inroads into European markets due to the cheap dollar, automobile executives said. Ford Motor Co <F> and General Motors Corp <GM> sell cars in Europe, where about 10.5 mln new cars a year are bought. GM also makes a few thousand in North American plants for European export. Now Chrysler Corp <C> is saying it will begin exporting American-made vehicles before the end of this year to Europe, a market it left in 1978 when it was near bankruptcy. Ford's European operations in Britain and West Germany manufactured and sold about 1.5 million cars in Europe last year -- the largest U.S. Manufacturer's share of the European market. Opel/Vauxhall, with factories in West Germany, Spain and Britain, accounted for most of GM's sales in Europe with about 1.3 million vehicles in 1986, officials said. James Fry of GM overseas distribution system said GM hoped for a five-fold rise this year in sales of North American-made vehicles in Europe, selling between 7,000 and 8,000 (North American-made) units in Europe for the year to August 1987. "A low dollar makes our prices very attractive," he told Reuters. Using an average price of 13,000 dlrs per car, his projected sales figure would translate into between 91 million and 104 mln dlrs in turnover, Fry added. That would be a jump from 1986 when GM sold 1,500 North-American made cars for revenue of 19 mln dlrs. Ford has 41 factories in West Europe, which manufacture all of its cars sold on the continent. But Walter Hayes, vice president of Ford Europe, told Reuters he did not expect a large rise in sales this year as a result of the weak dollar. "We have concluded that despite the dollar difference.... Europe is inevitably a small volume market." Hayes said the cost of changing American cars to conform to European environmental specifications cut into profit margins. But Robert Lutz, Chrysler executive vice-president, said the weak dollar would now help Chrysler compete in Europe. "After a lapse of almost nine years, Chrysler is about to re-enter the European market," he said. "We prefer to export to Europe rather than manufacture here because it will allow us to take full competitive advantage of the favorable exchange rates due to the declining value of the dollar." Reuter 

BUNDESBANK CHANGES REPURCHASE PACT SYSTEM

The Bundesbank is planning changes in the system by which banks bid for funds in securities repurchase pacts to improve the flexibility of its key open market instrument, central bank officials said. Banking economists said the changes will shorten the tender process to two days from three currently, enabling the Bundesbank to offer repurchase pacts of shorter maturity if it chooses, to steer money market liquidity more flexibly. The changes will probably come into force in April. Under the current system, banks must themselves specify at the tender which securities they will sell to the Bundesbank for subsequent repurchase, a time consuming business. Banks hold securities for this purpose in safe custody accounts in the Landeszentralbank (LZB) regional central banks, which are the local offices of the Bundesbank at state level. Some 50 billion marks of securities are held in such accounts at the Hesse LZB, which covers the Frankfurt area. The change to come into force next month will allow the Bundesbank access to these accounts to select the bonds itself, in a process legally comparable to direct debiting. At present the Bundesbank generally announces a tender on Monday, holds the tender late on Tuesday morning, announces the result early Tuesday afternoon and allocates funds Wednesday. The Bundesbank generally sets repurchase pacts running 28 days. But sometimes public holidays result in longer pacts or longer tender periods being necessary. For instance the Bundesbank announced a tender last Friday to be held today (Wednesday) for crediting funds tomorrow (Thursday). The advance announcement took into account the carnival holiday in Duesseldorf on Monday and in Frankfurt yesterday (Tuesday). Central bank officials and money market dealers said the shortening of the tender process should be seen as purely technical, with no direct implications for interest rates. "It is not a credit policy matter but a technical matter," said an official at the Hesse LZB. Bundesbank President Karl Otto Poehl said last December that security repurchase pacts had proved a much greater success since their introduction in their present form two years ago, and praised their flexibility. The tender process changes will make the repurchase pact instrument even more flexible, banking economists said. By speeding up the tender process, they will make it possible for the Bundesbank to offer repurchase pacts for periods of less than a month, something long sought by banks, to respond to changing money market conditions. "With the help of this instrument liquidity steering will be refined, but there won't be any effect on interest rates," said Berliner Handels- und Frankfurter Bank economist Hermann Remsperger. The Bundesbank would be able to react more quickly to money market developments, but by steering liquidity, not interest rates, he said. REUTER 

UNITRODE CORP <UTR> 4TH QTR JAN 31 LOSS

Shr loss 13 cts vs profit 10 cts Net loss 1,804,062 vs profit 1,370,063 Revs 33.5 mln vs 40.4 mln 12 mths Shr loss 51 cts vs profit cts Net loss 7,030,235 vs profit 9,163,141 Revs 149.4 mln vs 167.9 mln NOTE: income before taxes for the 12 mths ended Jan 1987 includes gains 895,000 for fire insurance settlement, and unusual charges of 7,900,000 for provisions for estimated cost of severance pay for terminated workers and a one-time writedown of inventory and equipment. Reuter 

NATIONAL SEMI <NSM> UNIT STEPS UP DELIVERIES

National Semiconductor Corp's National Advanced Systems unit said it is accelerating the delivery schedule for the two most powerful models of its AS/XL series mainframe processors because of growing customer demand. The company said the AS/XL 90 and AS/XL 100, which had been scheduled for general availability in the third quarter, will now be available in the second quarter. National Advanced Systems also announced a new 7480 cartridge tape subsystem which uses 18 track compact tape cartridges. Reuter 

BUEHLER INTERNATIONAL INC <BULR> 4TH QTR NET

Shr five cts vs 20 cts Qtly div two cts vs two cts prior Net 223,000 vs 1,418,000 Sales 15.3 mln vs 17.1 mln Year Shr 61 cts vs 81 cts Net 3,106,000 vs 5,940,000 Sales 63.0 mln vs 59.5 mln NOTE: 1986 net includes tax credits of 63,000 dlrs in quarter and 1,365,000 dlrs in year. 1986 net both periods includes 500,000 dlr pretax inventory writedown. Dividend pay March 27, record March 5. Reuter 

FORD <F> LATE FEBRUARY CAR SALES UP 29.3 PCT

Ford Motor Co said its sales of U.S.-made cars in late February rose 29.3 pct over the same period last year. The automaker said it sold 51,411 domestic cars in the February 21-28 period, up from 39,754 last year's period. There were seven selling days in both periods. Ford's sales of U.S. cars for the month of February were up 6.9 pct to 157,031 from 146,898. Year-to-date, the company's car sales dipped 10.5 pct to 265,301 compared to 296,298. Sales of Ford trucks in the late February period increased 48.3 pct to 39,080 from 26,358 vehicles sold in the same period last year. For the month, Ford sold 111,853 trucks, up 16.5 pct on a daily sales basis from last year, when the company sold 96,058 trucks in the period. Ford's year-to-date truck sales through February, at 195,694 vehicles against last year's 194,715, were 0.5 pct ahead of the 1986 pace. Reuter 

STANHOME INC <STH> RAISES QUARTERLY TWO CTS

Qtly div 23 cts vs 21 cts prior Pay April 1 Record March 16 Reuter 

INSTRON CORP <ISN> SETS QUARTERLY

Qtly div three cts vs three cts prior Pay April 2 Record March 16 Reuter 

WEST GERMAN BANK ISSUES LUXEMBOURG FRANC BOND

Landesbank Rheinland-Pfalz International SA is issuing a 300 mln Luxembourg franc private placement bond with a 7-1/4 pct coupon at par, lead manager Caisse d'Epargne de l'Etat du Grand-Duche de Luxembourg said. The five-year, non-callable bullet bond is for payment on March 24 and coupon payments are annually on March 25. REUTER 

FED PROPOSES CURRENCY, RATE SWAP RISK GAUGE AS PART OF NEW CAPITAL STANDARD

GERMAN INSTITUTE SEES INFLATION RISING IN 1987

The cost of living in West Germany will likely be about 0.5 pct higher on average in 1987 than in 1986, when the cost of living actually fell by an average 0.2 pct in the first recurrence of "negative inflation" since the 1950s, the HWWA economic research institute said. The re-emergence of inflation will result mainly from the fading of two factors which influenced the fall in the 1986 cost of living - the steep decline in both oil prices and the value of the dollar, the institute said in a report. The institute said inflation will see a rising trend in the course of 1987, but will average only 0.5 pct for the year as a whole because year on year rates will remain negative in the first part of 1987. Provisional inflation figures for February released last week showed the cost of living last month was 0.5 pct lower than in February 1986. In January prices had fallen 0.8 pct against the same month a year earlier. The HWWA said its forecast assumed the dollar would remain around 1.80 marks and oil prices would range between 15 and 17 dlrs per barrel. REUTER 

CEREALS MCAS TO BE UNCHANGED NEXT WEEK

Cereals Monetary Compensatory Amounts, MCAs, will be unchanged for the week starting March 9, an EC Commission spokesman said. They will be plus 2.4 points for the Netherlands and West Germany, minus two for Denmark, minus eight for France, minus nine for Ireland, minus 5.7 for Italy, minus 30.2 for Britain, minus 44.1 for Greece and minus 10.5 for Spain. Reuter 

WORLD BANK SAYS S. AMERICAN DEBTORS STILL TALKING

Latin American debtor nations are still willing to negotiate on their debts, World Bank director for Latin America and the Caribbean Rainer Steckhan said. In an article published in today's Handelsblatt daily, Steckhan said despite decisions by Peru, Costa Rica, Ecuador and Brazil to suspend some interest payments, these nations were still willing to talk constructively about their debts. "These countries are still prepared to negotiate, and the instruments of cooperation developed thus far provide the means to deal with the crisis over time," Steckhan said. Several highly indebted nations have made great efforts to meet their debt payments, especially Latin American countries, Steckhan said. Chile achieved gross national product growth of five to six pct last year and quadrupled its trade surplus from 1984, despite lower prices of key commodity exports like copper. Mexico, hit by a catastrophic earthquake and declines in world oil prices also boosted its non-oil exports by one third in 1986, the highest growth rate in its post-war history. The World Bank's annual lending to Latin America rose to 4.8 billion dlrs last year from three billion in 1984, he said. REUTER 

FED DRAFTS CURRENCY, RATE SWAP RISK GAUGE

The Federal Reserve Board voted unanimously to propose a formula for calculating the risk of interest rate and currency swaps as part of its ongoing effort to come up with a new capital standard for U.S. banks that takes into account the riskiness of a bank's loans and other assets. Fed officials said an identical proposal was being issues today by the Bank of England. The Fed set a 60-day period for public comment on the plan. The proposal adopted today addresses only the credit risks associated with interest rate swaps, forward foreign exchange contracts and similar financial instruments. Previously, the Fed Jan. 8 proposed a series of guidelines for calculating the risk of other off-balance-sheet activities that banks would be required to take into account in calculating the minimum financial cushion they would need to maintain. Both guidelines set five broad categories of risk for loans and other bank assets and assigned to each a level of risk that would establish a bank's minimum capital needs. The additional guidelines proposed today would determine the amount of capital support required for a bank's current exposure for a given asset and the potential future exposure. The current exposure would be measured by the mark-to-market value of the asset, which would reflect the replacement cost. Potential future increases in the replacement cost would be calculated using credit conversion factors based on statistical analyses by the staffs of the Bank of England and U.S. banking regulators. Future exposure would rise over the life of the asset. The Fed staff said the risk gauge attempted to balance conflicting needs for precision and simplicity. They ignore, for example, the relative volatility of the particular currencies involved in exchange rate contracts. Board officials said the new gauge could increase the capital required of the largest money center banks, which are the principal participants in these types of activities. They cautioned the Fed board to take account of the potential impact of the plan on the ability of U.S. banks to compete in world financial markets. However, the staff concluded, "The credit risks inherent in such contracts now constitute a significant element of the risk profiles of some banking organizations." The Fed proposal would exempt all but the 20-25 largest participants in this market, on grounds the benefits of including the smaller banks would be outweighed by costs. Also excluded would be interest rate and foreign exchange contracts traded on organized exchanges. Governor Martha Seger said she was concerned that Japan was not involved in the U.K.-U.S. effort to draft new capital rules. Reuter 

IDEAL SCHOOL SUPPLY CORP <IDEL> 4TH QTR NET

Oper shr 10 cts vs eight cts Oper net 325,000 vs 228,000 Sales 7,070,000 vs 6,483,000 Avg shrs 3,313,000 vs three mln Year Oper shr 69 cts vs 51 cts Oper net 2,124,000 vs 1,536,000 Sales 31.2 mln vs 22.7 mln Avg shrs 3,071,000 vs three mln NOTE: 1986 net both periods includes 72,000 dlr tax credit. Reuter 

SALOMON INC <SB> SETS REGULAR QUARTERLY

Qtly div 16 cts vs 16 cts prior Pay April One Rcord March 20 Reuter 

JANUARY CRUDE OIL MOVEMENTS FALL SEVEN MLN TONS

Worldwide spot crude oil movements fell to 30.07 mln long dwt in February from 37.25 mln tons in January and 41.44 mln in December, London shipbroker Howard Houlder said. The decline mainly reflected a sharp drop in movements out of the Mideast Gulf, which totalled 7.4 mln tons last month against 11.65 mln in January. These included shipments to western options at 2.05 mln tons against 3.59 mln previously. Liftings from the Gulf to eastern options fell to 4.15 mln tons from 5.94 mln and those from the Gulf to other areas dropped to 1.2 mln tons from 2.13 mln, Howard Houlder said. U.K./Continent coastal movements declined sharply to 2.91 mln tons from 4.77 mln but those from the U.K./Continent to the U.S. rose to 1.99 mln from 1.69 mln. Reuter 

EC SOURCES DETAIL NEW FARM SOCIAL PACKAGE

The 350 mln Ecu three-year package of social and structural measures agreed early today by European Community farm ministers features a plan to compensate farmers for reducing output of certain surplus products, EC Commission sources said. The ministers agreed that under this "extensification" scheme, farmers would qualify for compensation if they cut output of specific products by at least 20 pct. The plan would initially apply to cereals, beef, veal and wine, they added. Cereals farmers would have to achieve their output cuts by reducing acreage, while cattle farmers would reduce their number of head and vinegrowers would cut yield. In each case, farmers would have to undertake not to step up their capacity for output of other products which are in surplus in the EC. The sources said payment levels have not yet been fixed but will be designed to compensate farmers for loss of profit on the production they forego. The sources said the package also contains provisions for payments to farmers who embark on a program aimed at protecting or improving the environment. It would also mean compensatory allowances in less favoured farming areas would be extended to crops. At present such allowances are available only for livestock. The package would provide 20 mln Ecus for research into alternative farming techniques, the sources added. At a news conference EC Farm Commissioner Frans Andriessen said the Commission is also working on proposals to enable the EC and member states to provide direct income supports for relatively poor farmers. Andriessen did not give full details, but said member state aid would be subject to "strict criteria to avoid distortion of competition." EC payments would aim to help farmers to survive a difficult period while the EC tackles the problems of surplus production. The Commission withdrew from the package agreed last night proposals to pay "early retirement" pensions to farmers aged 55 or over who gave up production. Those who took their land completely out of farm production, rather than passing it on to their heirs, would have received more generous payments. Andriessen said the Commission plans to present revised proposals along these lines in an effort to get a scheme agreed. Reuter 

NATIONAL FUEL <NFG> PROPOSES ARGO REORGANIZATION

National Fuel Gas Co said it has proposed a plan of reorganization for <Argo Petroleum Corp>. The proposal calls for National Fuel's Seneca Resources Corp subsidiary to receive 75 pct of Argo's principal producing and undeveloped oil and gas assets in return for refinancing Argo's debt to Seneca. The plan calls for Seneca to made an additional 500,000 dlr advance to Argo, National Fuel Gas said. National Fuel Gas said it reorganzation was proposed in a term sheet signed by Seneca, Argo and representatives of Argo's unsecured creditors committee. Seneca became Argo's principal secured creditor in November when it purchased notes totaling about 40 mln dlrs from Continental Illinois National Bank and Trust Co for about 35 mln dlrs. National Fuel Gas said the additional advance to Argo would allow it to capitalize, together with other assets, a new company for its existing shareholders. National Fuel Gas said the plan calls for Argo's existing secured debt to be refinanced in an 8,875,000 dlr refinancing note and a 75 pct interest in Argo's principal oil and gas properties. Seneca and Argo will enter into a venture to be 75 pct owned by Seneca and 25 pct by Argo to develop their jointly owned properties. In addition to restructuring and refinancing Argo's existing debt, Seneca will provide Argo with a two mln dlr revolving line of credit to finance its 25 pct share of the venture's development costs, National Fuel Gas said. It said the proposed plan calls for Argo oil and gas assets not subject to the venture to be transferred to a new corporation. Existing Argo shareholders will receive all the new company's common stock while its unsecured creditors will receive 100 pct of the new capital stock of Argo in exchange for their claims against the company. Reuter 

WEST GERMAN BANK ISSUES LUXEMBOURG FRANC BOND

Landesbank Rheinland-Pfalz International SA is issuing a 300 mln Luxembourg franc private placement bond with a 7-1/4 pct coupon at par, lead manager Caisse d'Epargne de l'Etat du Grand-Duche de Luxembourg said. The five-year, non-callable bullet bond is for payment on March 24 and coupon payments are annually on March 25. Reuter 

U.S., BRITAIN AGREE FURTHER BANK CAPITAL PROPOSALS

The Bank of England and the U.S. Federal Reserve Board have agreed new proposals for joint standards to measure the risk of an array of credit exposures that do not show up in bank balance sheets, the Bank of England said. The plan, covering swaps, forward contracts and options involving interest or exchange rates, complements proposals agreed in January between the two central banks to make commercial banks in the U.S. And Britain subject to similar standards for measuring capital adequacy, the proposal said. It said no final decisions had been reached yet and banks have until April 16 to comment on the trunk proposals. The Bank of England and Fed said they had faced a dilemma. "On the one hand (we) are determined to require adequate capital support for potential future exposure -- on the other hand (we) are concerned that overly stringent capital requirements might unnecessarily affect the ability of U.S. And U.K. Banking organisations to price...Contracts competitively." At the basis of the new proposals lies the concept of the so-called credit equivalent amount - the current value of a currency or interest rate contract and an estimate of its potential change in value due to currency or interest rate fluctuations until the contract matures. In treatment similar to that agreed in January for balance sheet assets, the credit equivalent will be assigned one of five risk weights between zero and 100 pct, depending on the quality of the counterparty, the remaining maturity of the contract and on collaterals or guarantees to the contract, the plans showed. The proposal showed that collaterals and guarantees would not be recognised in calculating credit equivalent amounts. They would, however, be reflected in the assignment of risk weights. The only guarantees recognised are those given by U.S. And U.K. Governments or, in the U.S., By domestic national government agencies, the proposals showed. The paper said the proposed rules would not cover spot foreign exchange contracts and securities traded in futures and options exchanges. It said U.S. Regulatory authorities and the Bank of England were keen to encourage banks to "net" contracts -- consolidate multiple contracts with the same counterparty into one single agreement to create one single payments stream. It recognised that "such arrangements may in certain circumstances reduce credit risk and wish to encourage their further development and implementation," and said some of the current proposals may be changed to take this into account. The paper said the proposed rules would not cover spot foreign exchange contracts and securities traded in futures and options exchanges. It said U.S. Regulatory authorities and the Bank of England were keen to encourage banks to "net" contracts -- consolidate multiple contracts with the same counterparty into one single agreement to create one single payments stream. It recognised that "such arrangements may in certain circumstances reduce credit risk and wish to encourage their further development and implementation," and said some of the current proposals may be changed to take this into account. Reuter 

OUTBOARD MARINE <OM> KNOWS NO REASON STOCK IS UP

Outboard Marine Corp, whose stock is trading higher, said there were no corporate developments to account for the rise. Outboard Marine was up 2-1/2 to 34 with 48,000 shares traded. A spokesman said the company wasn't planning any announcements. Several analysts who follow the company also did not know why Outboard was trading higher. Reuter 

PIEDMONT AVIATION <PIE> BOARD TO MEET TODAY

Piedmont Avaition Inc's board of directors will conduct a special meeting beginning at 1400 est today, a Piedmont spokesman said. The spokesman would not say what was on the agenda. In mid-February, Piedmont said its board would meet to discuss all proposals to acquire the company. Its board also withdrew a recommendation to accept a 65 dlrs a share cash offer from Norfolk Southern Corp <NSC> in light of a competing revised bid from U.S. Air Group Inc <U>. U.S. Air offer to buy 50 pct of the company's stock for 71 dlrs a share cash, and the remaining for 73 dlrs a share of its stock. Reuter 

FIRST UNION <FUR> LEAVES DIVIDEND UNCHANGED

First Union Real Estate Investments said its board left the quarterly dividend unchanged at 37-1/2 cts per share, payable April 30, record March 31. The trust, which has raised its quarterly dividend frequently in the past two years and in the first quarter in both years, said the Tax Reform Act of 1986 has limited its flexibility on dividends, and trustees will now consider the appropriateness of any dividend increases only during the later quarters of the year. Reuter 

RYKOFF-SEXTON INC <RYK> 3RD QTR JAN 31 NET

Shr 21 cts vs 28 cts Net 1,456,000 vs 1,925,000 Sales 258.7 mln vs 290.2 mln Nine Mths Shr 77 cts vs 1.10 dlrs Net 5,384,000 vs 7,658,000 Sales 804.3 mln vs 760.1 mln Reuter 

JAMAICA WILL MAKE NEW DRAWING UNDER IMF PROGRAM

Jamaica will draw down 40.9 mln Special Drawing Rights (SDRs) from the International Monetary Fund following IMF approval yesterday of a new credit program for the island, the government announced. Financing from the compensatory facility is meant to offset losses in export earnings and does not carry the same conditions attached to other IMF loans. The government will also receive 85 mln SDRs under a new stand-by agreement. The new credit agreement signed in January was originally to last 15 months, but the government now says it will go for one year beginning this month. REUTER 

SYSTEM SOFTWARE ASSOCIATES <SSAX> 1ST QTR NET

Periods end January 31, 1987 and 1986 Shr 12 cts vs nine cts Net 507,000 vs 362,000 Revs 5,010,000 vs 3,558,000 NOTE: System Software Associates Inc is full name of company. Reuter 

GEICO CORP <GEC> RAISES QTRLY DIVIDEND

Qtrly div 34 cts vs 27 cts prior Pay March 31 Record March 16 Reuter 

STANLEY WORKS <SWK> SETS QUARTERLY

Qtly div 19 cts vs 19 cts prior Pay March 31 Record March 12 Reuter 

NOVELL INC <NOVL> 1ST QTR JAN 31 NET

Shr 31 cts vs 20 cts Net 3,541,000 vs 2,071,000 Sales 29.9 mln vs 14.5 mln Avg shrs 11.6 mln vs 10.4 mln NOTE Fourteen vs 13-week periods. Reuter 

FROST NOT EXPECTED TO DAMAGE POLAND'S WHEAT

Poland's winter wheat is likely to survive recent frosts but the impact of the cold will not be known until late April, the Polish meteorology institute said. Some varieties of winter wheat sown in Poland can survive ground temperatures as low as minus 20 degrees C, Spokesman Teresa Tomaszewska told Reuters. Even though an earlier thin protective layer of snow mainly melted in February, air temperatures down to minus 30 C should not be harmful, she said, but added that wheat can still be damaged by cold spells in March and April, when young shoots may be exposed to night frosts. Reuter 

BROWN-FORMAN <BFDB> TO CHANGE RECORD DATES

Brown-Forman Inc said at the suggestion of the American Stock Exchange it has changed the record date for the 28 ct per share quarterly dividend on its Class A and Class B common stock that is payable April One to March 20 from March 13, to coincide with the record date for a three-for-two stock split declared February 26. It said the record date for the dividend on its four pct cumulative preferred stock has also been changed to March 20 from March 13. Reuter 

GOODYEAR TIRE <GT> DETAILS 1986 TAX REFUND

Goodyear Tire and Rubber Co said its 1986 results include a tax refund of 75.7 mln dlrs from the costs of restructuring the company in a successful defense against a takeover attempt by James Goldsmith. Chairman Robert Mercer said, "Heavy restructuring costs related to the takeover attempt combined with government tax incentives for investments ... resulted in this federal tax refund." The refund was included but not broken out in its initial 1986 results, a spokesman said. It reported 1986 net income of 124.1 mln dlrs against 412.4 mln dlrs a year earlier. Reuter 

GEICO CORP <GEC> NAMES NEW BOARD MEMBERS

Geico Corp said it named two board members, W. Reid Thompson, chairman and the chief executive officer of Potomac Electric Power Company, and Norma Brown, major general US Air Force retired. Reuter 

U.S. PRESENTS MOSCOW WITH DRAFT MISSILE TREATY

The United States today handed Soviet arms negotiators a draft treaty which would eliminate all superpower medium-range nuclear missiles in Europe and slash such weapons elsewhere to 100 warheads on each side. Maynard Glitman, who heads the American team discussing medium-range nuclear forces, told reporters the document, "a full treaty text," was now on the negotiating table. The proposal responds to a new Soviet offer to abolish "Euromissiles" and cut sharply medium-range nuclear forces elsewhere announced by Mikhail Gorbachev last Saturday. The developments have been described by many disarmament experts as the first real opening for a superpower accord since they resumed arms control talks in March 1985. Glitman presented the draft treaty during a one and a half hour meeting at the American diplomatic mission with the Soviet team on medium-range missiles headed by Lem Masterkov. He told reporters: "It is a complete document. It has to be because we want precision. We don't want any ambiguities." The draft called for elimination - removal and destruction - of all superpower medium-range missiles in Europe over five years and reduction elsewhere during that period to 100 atomic warheads on each side, Glitman added. In Europe, this includes 270 Soviet triple-warhead SS-20's and 316 single-warhead U.S. Pershing-2 and cruise missiles. Reuter 

GREAT NORTHERN NEKOOSA <GNN> ANNOUNCES SPLIT

The Great Northern Nekoosa Corp said it will recommend to shareholders a two-for-one common stock split. The company said it will make the proposal to shareowners at its annual mmeting May 6 in Dothan, Ala., near the company's Great Southern Paper division operations. In conjunction with the stock split proposal, the shareowners will be asked to approve an increase in the authorized common stock from 60 mln to 150 mln shares, the company said. The company said it will propose an increase in its dividend rate if the split is approved effective with the June payment. The company said the present rate on GNN common is 43 cts per share. The company said it would recommend a quarterly rate of 23 cts a share on the split stock. This would be equal to a dividend of 46 cts a share on the present common, seven pct higher than the current rate. The company said it had increased the dividend by 13 pct last December. Great Northern Nekoosa's last common stock split, a three-for-two, was in December 1983, it said. As of Dec 31, 1986, there were 26,661,770 shares of GNN common stock outstanding, according to the company. Reuter 

CONED <ED> AGREES TO CUT RATES, WRITE OFF DEBITS

Consolidated Edison Co of New York Inc has agreed to reduce its rates 3.1 pct next month and write-off 50 mln dlrs of deferred debits, New York Governor Mario M. Cuomo said. He told a press conference the 132.5 mln dlr reduction in annual rates, along with the removal of 50 mln dlrs in fuel charges from base rates are part of an agreement which will reduce the utility's base electric rates by about 500 mln dlrs per year over the next three years and bar any rate increases until at least April 1990. Governor Cuomo said the agreement with Con Ed, which must be approved by the State Public Service Commission, was negotiated by the State Consumer Protection Board, Public Servcice commission Trial Staff, the State Attorney General, the City of New York and several other parties. He said the agreement "will produce the first base eldctric rate decrease for Con Edison in more than 20 years. As a result of an earlier stipulation, we have already had a four year freeze on Con Edison's base electric rates since March 1983," he added. Con Edison said the agreement reflects reduced federal taxes and lower interest rates. The utility said another factor includes improved economic conditions in the New York City area, which led to increased sales. It pointed out "declining fuel costs have resulted in an average 10 pct decrease in our customers' bills since 1984." Reuter 

HARRIS LIFTS BUILDERS TRANSPORT <TRUK> STAKE

Harris Associates L.P., a Chicago investment advisor, said it raised its stake in Builders Transport Inc to the equivalent of 466,754 shares, or 9.1 pct of the total outstanding, from 335,800 shares, or 6.7 pct. In a filing with the Securities and Exchange Commission, Harris said it bought 36,700 Builders Transport common shares on Feb 10 at 17 dlrs a share. It also said it bought debentures on Feb 23 that could be converted into 94,254 shares. Harris said its dealings in Builders Transport were on behalf of its advisory clients. It has also said it has no intention of seeking control of the company. Reuter 

PAINE WEBBER <PWJ> IN FOUR MLN SHARE OFFERING

PaineWebber Inc, The First Boston Corp <FBC> and Salomon Inc <SB> said Paine Webber Group Inc has made a public offering of four mln shares of 1.375 dlrs convertible exchangeable preferred stock, with a liquidation preferance of 25 dlrs per share. The firms, co-managers of the underwriting group, said Paine Webber originally planned to offer 3.6 mln shares. They added the shares are covertible into Paine Webber Group's common stock at a conversion price of 44.125 dlrs a share. The underwriters also said the Paine Webber Group will use the offering's proceeds to redeem about 60 mln dlrs of debentures due 2008 and for general corporate purposes. They added that the preferred stock is redeemable, at the company's option, at prices declining to 25 dlrs per share on and after March 15, 1997. But, they said its is not redeemable before March 15, 1989, unless Paine Webber Group's common stock price equal or exceeding 140 pct of the conversion price at the time. The group added the preferred stock also can be exchanged on any dividend payment date beginning June 15, 1989, for the company's 5-1/2 pct convertible subordinated debentures due June 15, 2017. Reuter 

COFFEE TALKS FAILURE SEEN PRESSURING U.S.

Failure of talks on re-establishing International Coffee Organization, ICO, coffee quotas last week may put political pressure on the United States, particularly the State Department, to reassess its position, but the U.S. is unlikely to back away from its basic demand quotas be set by "objective criteria", U.S. officials said. Jon Rosenbaum, assistant U.S. trade representative and head of Washington's delegation to the talks, told Reuters on his return from London that the United States is willing to resume the coffee negotiations as early as April if necessary. Rosenbaum said the United States will be "flexible" in discussing the method of establishing objective criteria and any transition to new quotas, but not on the basic aim of establishing an objective method of setting quotas. At the ICO talks major consuming nations, led by the U.S., proposed that future coffee export quota shares be calculated by a formula incorporating a producer's recent exportable production and verified stocks, while large producers led by Brazil proposed maintaining the traditional ad hoc division of shares. The consumer position would have in effect reduced the market share of Brazil, by far the world's largest producer. Rosenbaum said the administration would continue to support legislation now before Congress which would allow the U.S. customs service to monitor coffee imports, as a way to comply with any future coffee quotas. He said the Reagan administration would be reviewing the coffee policy situation following the collapse of the London talks, but "nobody is proposing we change our position." However, other U.S. government officials involved in coffee policy said they are bracing for a diplomatic and coffee market offensive from producer countries, led by Brazil and Colombia, to soften the consumer position. "Knowing that its next crop is fairly large, Brazil will kind of want to test the resolve of other producers and consumers," said one U.S. official. The U.S. official, who asked not to be identified, said Brazil and Colombia may flood the coffee market in the next few months in an effort to drive down prices and pressure other countries, particularly the splinter group of small producers who differed with the major producers in London. This in turn could lead to urgent appeals from Latin American countries, faced with mounting debt problems, to the U.S. State department, and to the National Security Council in the White House, for an easing of the U.S. position, U.S. officials said. The State department, a major player in setting U.S. coffee policy, may then face conflicting pressures, particularly from politically-sensitive U.S. allies in Central America, U.S. officials said. El Salvador and Guatemala both backed Brazil and Colombia at the London talks in resisting pressures for quotas based on objective criteria. But the Dominican Republic and Costa Rica joined the splinter group, which said it would agree to objective criteria. There is a strong feeling among some in the State Department that the United States should continue to support the splinter group of producers who have taken the politically-risky step of opposing Brazil on the objective criteria question, U.S. officials said. Within the consuming countries there also is expected to be some pressure to reassess positions. In London, the U.S. was supported by the U.K., the Netherlands, West Germany, Japan, Australia and New Zealand on the issue of objective criteria, U.S. officials said. This bloc represented enough votes among consuming nations to successfully prevent adoption of the producer proposals. However, U.S. sources said West Germany's support was at times qualified and there is some concern that the European Community could come under pressure to be more accommodative to producers in future talks. France backed the Ivory Coast and other African producers during the talks. A softening of the EC stance would make it more difficult, although not impossible, for the U.S. to block producer plans. While political manuevering by small producers and consuming countries will be important, U.S. officials said the key to any future outcome will be Brazil's position. U.S. officials blamed Brazil's intransigence for the failure of the talks and said a more flexible position from Brasilia would be the most important step toward agreement. Reuter 

IBM <IBM> DEMONSTRATES NEW CHIP

International Business Machines Corp said it demonstrated an experimental computer chip called an opto-electronic receiver that transforms light into electrical signals that translate into computer language. IBM said the chip is two times faster than any similar chip reported and can read 40 encyclopedia volumes a second. The chip is made of gallium arsenide which moves electrical signals faster than the silicon used in most computer circuits. IBM also said that since gallium arsenide is more efficient in turning light signals into electrical signals, it seems to be an ideal material for the light-based computer communications expected to be widely used in the future. The chip's speed is also enhanced through the elimination of wiring by placing the functionally dissimilar photodetector and transistor circuitry close together. Bringing these elements closer together also isolates the receiver from other electronic circuits and reduces noise and distortion, it said. Reuter 

INVESTORS HAVE 12.9 PCT OF EXOVIR <XOVR>

Mark Hammer, a private investor from Melville, N.Y., and members of his family told the Securities and Exchange Commission they have acquired a total of 375,200 shares of Exovir Inc, or 12.9 pct of the total outstanding. Hammer said his group has been accumulating Exovir stock since Oct 28, 1985 for investment purposes and may buy more shares or sell all or part of his current stake. While he said he has no intention of seeking control of the company, Hammer said that because of his "extensive business experience" and his interest in Exovir stock, he may be "invited" to become a member of the company's board. Reuter 

TORRENTIAL RAINS HALT ARGENTINE GRAIN HARVEST

Torrential rains throughout Argentina's grain-producing areas virtually paralysed coarse grain harvesting in the week to yesterday, trade sources said. Sunflower, maize and sorghum harvests were particularly affected, they said. But the rains proved to be a great aid to soybean crops as their harvesting will not begin until April or May. The rains did no damage to maize, sunflower and sorghum crops though fresh rains in similar volume could reduce yields and cut the total volume of this year's harvest. Rainfall measured between 15 and 270 mm in Buenos Aires, with the heaviest rains in the province's western sectors, between 15 and 100 mm in Cordoba, 15 and 120 mm in La Pampa, 10 and 75 mm in Santa Fe, 10 and 60 mm in Entre Rios, five and 40 mm in Misiones, and five and 50 mm in San Luis. No rain was recorded in Corrientes, Chaco and Formosa. Growers did not revise their estimates for total volume of the coarse grain harvest over last week's estimates. Maize harvesting continued moving forward in central Santa Fe, though slowly. Growers had harvested seven to nine pct of total planted area, compared to five to seven pct last week. Total maize area planted for the 1986/87 harvest was estimated at between 3.58 and 3.78 mln hectares, or two to seven pct less than the 3.85 mln hectares planted in the 1985/86 harvest. Maize production is expected to total between 10.4 and 11 mln tonnes, or a drop of 17.5 to 19.4 pct over the 12.4 to 12.6 mln tonnes harvested last year according to private estimates, or 18.9 to 21.9 pct lower than last year's volume, according to official figures. The sunflower harvest advanced to between seven and nine pct of total planted area. Two to 2.2 mln hectares have been planted with sunflowers for this harvest, down 29.9 to 36.3 pct from last year's figure of 3.14 mln hectares. Sunflower production is expected to total between 2.4 mln and 2.7 mln tonnes, which would mean a drop of between 34.1 and 41.5 pct against the record 4.1 mln tonnes harvested in the 1985/86 harvest. Grain sorghum harvesting inched forward to between two and four pct of total planted area, which this harvest is 1.23 to 1.30 mln hectares or 10.3 to 15.2 pct less than the 1.45 mln hectares planted in the 1985/86 harvest. Sorghum production is expected to total between 3.2 mln and 3.5 mln tonnes, or 16.7 to 22 pct less than the 4.1 to 4.2 million tonnes harvested in 1985/86. Soybean production, by contrast, is expected to hit a record 8.0 to 8.4 mln tonnes, which would mean an increase of 11.1 to 15.1 pct over last year's record figure of 7.2 to 7.3 mln tonnes, according to private estimates. Official figures put last year's soybean harvest at 7.1 mln tonnes. Soybean crops were reported to be in generally very good condition, helped by abundant rains and high temperatures. Total soybean-planted area for the 1986/87 harvest is expected to be a record 3.7 to 3.8 mln hectares, up 10.8 to 13.8 pct from last year's harvest figure of 3.34 mln hectares. Reuter 

DELTA <DAL> UNIT POSTS LOWER LOAD FACTOR

The Western Airlines unit of Delta Air Lines Inc said its February load factor fell to 52.6 pct from 57 pct a year earlier and its year-to-date load factor was down to 52.2 pct from 54.8 pct during the same period last year. February revenue passenger miles rose to 790 mln from 786 mln a year earlier and year-to-date revenue miles were up to 1.64 billion from 1.60 billion. Available seat miles for the month increased to 1.50 billion from 1.38 billion and for the first two months of the year available miles were up to 3.14 billion from 2.92 billion, Western Airlines said. Reuter 

LOTUS <LOTS> TO ACQUIRE <COMPUTER ACCESS CORP>

Lotus Development Corp said it has signed a letter of intent to acquire substantially all of the assets of Computer Access Corp for undisclosed terms. Computer Asscess makes BlueFish full-text search and retrieval software for International Business Machines Corp <IBM> and compatible personal computers. The company said the acquisition is subject to approval by both boards. Reuter 

EQUITABLE OF IOWA COS <EQICA> 4TH QTR NET

Oper shr 78 cts vs 51 cts Oper net 7,030,000 vs 4,944,000 Revs 126.6 mln vs 120.9 mln Year Oper shr 1.59 dlrs vs 89 cts Oper net 14.7 mln vs 9,864,000 Revs 425.1 mln vs 416.9 mln NOTE: Net excludes realized gains on investment of 73,000 dlrs vs 4,224,000 dlrs in quarter and 6,253,000 vs 14.5 mln dlrs in year. Net excludes discontinued Massachusetts Casualty operations loss 5,180,000 dlrs vs gain 778,000 dlrs in quarter and gain 9,214,000 dlrs vs gain 3,504,000 dlrs in year. Reuter 

CORROON AND BLACK CORP <CBL> RAISES QUARTERLY

Qtly div 21 cts vs 16-1/4 cts prior Pay April One Record March 17 Reuter 

CHEYENNE RESOURCES <CHYN> COMPLETES RESTRUCTURE

Cheyenne Resources Inc said it has restructured its 499,750 debt to the First Interstate Bank of Denver to 250,000. It said it gave the bank 500,000 shares of restricted Cheyenne Resources common stock. It said it would pay the balance on a monthly basis over 28 months. Cheyenne also reported it had settled out of court a 112,000 dlr judgment against it for 60,000 dlrs. It said the judgment involved a land sale which Cheyenne refused payment on after it learned it was not the land advertised in the sale. Reuter 

EC APPOINTS NEW TRADE CHIEF

The European Community Commission today appointed its chief spokesman, Hugo Paemen, as its top official in charge of multilateral trade negotiations, a Commission spokesman said. Paemen, a Belgian official who had previously been chief aide to former External Affairs Commissioner Etienne Davignon, has been in his post since January 1985. The spokesman said Paemen will continue as chief spokesman until the retirement on May 1 of Paul Luyten, who is now in charge of EC departments handling negotiations in the world trade body GATT, the OECD and other forums. Reuter 

EASTMAN KODAK CO FILES 900 MLN DLR DEBT SHELF REGISTRATION

U.S. SENATOR TO PROPOSE 0/92 FOR 1987 CROPS

Sen. Rudy Boschwitz, R-Minn., said he intended to offer legislation that would allow 1987 producers of wheat, feedgrains, cotton and rice to receive at least 92 pct of their deficiency payments, regardless of how much they planted. Boschwitz told the Senate Agriculture Committee that applying the so-called 0/92 provision to 1987 crops was supported by the Reagan administration and would save approximately 500 mln dlrs, including 266 mln dlrs in corn payments, 90 mln dlrs in wheat and 30 mln dlrs in cotton. The Minnesota senator said he might offer the bill on the Senate floor or in a conference committee with the House of Representatives in the event a similar bill before the House Agriculture Committee is approved by that body. Boschwitz told Reuters that neither he nor the U.S. Agriculture Department had decided whether or how deficiency payments should be guaranteed to farmers who might choose not to plant under the decoupling scheme. If payments are not set in advance under decoupling, market prices conceivably could rise, thereby leading to diminished deficiency payments. Senate Agriculture Committee Chairman Patrick Leahy, D-Vt., said he wanted to go to conference with the House as soon as possible on the issue, but would have to study the matter further before deciding how he would vote on it. Reuter 

BRAZILIAN FINANCE MINISTER MEETS SWISS OFFICIALS

Brazilian Finance Minister Dilson Funaro met his Swiss counterpart Otto Stich, Swiss Economics Minister Jean-Pascal Delamuraz and National Bank President Pierre Languetin on the fourth leg of a tour to discuss his country's debt problems. Funaro told reporters his trip, which has already taken him to London, Paris and Bonn, was aimed at explaining his country's stance to governments. Talks with commercial banks will take place at a later date. Funaro said a mechanism would have to be found to end Brazil's debt crisis but it would not be easy. Brazil would not repeat the measures it took in response to its debt crisis of 1982, which he said had provoked the biggest recession in his country's history, he added. He said European and Japanese banks were showing a more flexible attitude towards Brazil's problems than U.S. Banks and it was difficult to discuss capitalisation with the latter. A Swiss official said the Brazilian delegation had made no demands. Funaro, who travels to Italy this evening, said it was unclear if he would go to Japan on Friday or return to Brazil first. REUTER 

CHRYSLER LATE-FEBRUARY U.S.-BUILT CAR SALES UP 11 PCT

UAW TO MEET WITH PRESS THIS AFTERNOON ON AMERICAN MOTORS

GATT TO RULE ON U.S. CUSTOMS USER FEE DISPUTE

The world trade body GATT has decided to set up an arbitration panel to rule on objections by Canada and the European Community to a customs user fee imposed by the U.S. Government, a GATT spokesman said. Canada and the EC told a GATT (General Agreement on Tariffs and Trade) council meeting that the fee, which imposes a tax on an ad valorem basis on imports as of December 1, 1986, is illegal under GATT rules. U.S. Ambassador Michael Samuels said the fee, imposed by the U.S. To help cover customs expenditure as part of the Consolidated Omnibus Budget Reconciliation Act of 1985, does not breach GATT rules and is similar to fees charged by many other countries. Samuels suggested that a working party be set up to examine the dispute, instead of a panel empowered to rule on it. In another development, Hong Kong, supported by a large number of developing countries, attacked the "textile and apparel trade act of 1987" introduced in the U.S. Congress last February 19. Hong Kong representative Michael Cartland said the bill is "blatantly protectionist." He added there is "almost nothing about the bill which could be regarded as in any way consistent with either the GATT or the Multi-Fibre Arrangement (MFA)." If the bill were to be passed by Congress, Cartland said "it would forestall any attempt to negotiate liberalisation of world trade in textiles." GATT's council also decided to set up a working party to study China's application for full GATT membership. The group is due to report to the next GATT council meeting on April 15. Reuter 

NATIONAL HEALTHCARE <NHCI> GETS DEFAULT WAIVERS

National Healthcare Inc said it has received a waiver until May 26 of its technical defaults under covenants of its bank credit agreement. The company said that under an amendment to the credit agreement, its line of credit has been cut to 125 mln dlrs due to reduced requirements for acquisition financing, interest on all borrowings has been increased and National Healthcare has agreed to provide additional collateral. It said the banks have advanced it another six mln dlrs for working capital, bringing the total borrowed against the line to about 120 mln dlrs. National Healthcare said that during the waiver period it intends to seek more permanent modifications to covenants of the bank credit agreement. Reuter 

MCDONALD'S <MCD> FILES 300 MLN DLRS SHELF OFFER

McDonald's Corp said it filed a shelf registration with the Securities and Exchange Commission covering 300 mln dlrs of debt securities. McDonald's said it intends to issue the securities from time to time, denominated in U.S. dollars, and/or other currencies including European Currency Units. Proceeds may be used for debt refinancings, capital expenditures and other general corporate purposes, the company said. Reuter 

EC DAIRY PACT MAY DISRUPT MARKET - DUTCH FARMERS

The new European Community dairy regime agreed last night is too complicated and may destabilise prices, Abele Kuypers, secretary of the dairy section of the Dutch farmers' organisation Landbouwschap said. He welcomed the decision to write off existing stocks of butter and skimmed milk powder and agreed there should be some reduction of pressure on stores but said the Landbouwschap was unhappy at the mechanism for limiting sales to intervention except when prices fall too far. But Harm Schelhaas, chairman of the Milk Commodity Board, was less worried by the new dairy regime. Dutch milk output will fall by up to six pct this year due to the new regime, but cheese output should rise, he said. Reuter 

INDIA BUYS UP TO 10 CARGOES SUGAR - TRADERS

India bought up to 10 cargoes of white sugar at a buying tender today which originally called for just two to three cargoes of March/April shipment, traders said. London trader E D and F Man said it sold two cargoes at 233 dlrs a tonne CIF for March/April shipment with an option to sell an additional two cargoes at the same price. Traders said at least one other international trader made a similar contract while a French house sold two cargoes at an outright price of 233 dlrs CIF without the option. This brought total Indian purchases to at least six cargoes with traders having options to sell another four. Reuter 

CHRYSLER <C> LATE-FEBRUARY SALES RISE 11 PCT

Chrysler Corp said sales of its U.S.-built cars rose 11 pct in the February 20-28 period to 30,634 units compared to 27,526 in the period a year ago. There were seven selling days in both periods. For the month of February sales fell two pct to 78,508 cars from 80,322 a year ago. Year-to-date sales were not immediately available. Reuter 

TWA <TWA> GETS LONDON/BALTIMORE ROUTE

The Department of Transportation said it has tentatively awarded the Baltimore to London route to Trans World Airlines Inc. The DOT issued a show cause order which give interested parties seven days to question the decision. In addition, the White House must decide on the choice under foreign policy and national security grounds. The DOT said the route became avaialable when it was abandoned last September by World Airways Inc. REUTER