Datasets:

ajay141

/

ds_articles

like 0

LYNG SAYS EXPORT BONUS COULD BE FUNDED FROM CCC

Agriculture Secretary Richard Lyng said the export enhancement program (eep) could be funded from the Commodity Credit Corporation (CCC) if the one billion dlrs appropriated for export bonus by Congress is exhausted. Lyng told reporters lack of funding should not be a constraint on the program because USDA has the authority to use CCC funds to continue the program. He noted Congress authorized up to 1.5 billion dlrs for eep. Earlier this week, Leo Mayer, associate administrator of USDA's Foreign Agricultural Service, said 865 mln dlrs of the one billion in appropriated funds for eep have been used. USDA officials said if all the eep offers announced are accepted by importing countries the one billion dlrs would be exhausted soon. Some Congressional sources have expressed concern that the Office of Management and Budget (OMB) might try to block USDA from seeking more than the one billion dlrs appropriated for the program. These sources suggested the lack of funds might force USDA to halt the program, which some commodity groups believe has given a boost to U.S. exports of some farm products, particularly wheat and wheat flour. However, Lyng's comments seemed to suggest that USDA could at least temporarily continue the program using CCC funds and would not be forced to curtail eep. Reuter 

CYACQ EXTENDS TENDER FOR CYCLOPS <CYL>

Cyacq Corp said it extended its 80 dlr a share tender offer for Cyclops Corp to March 20 from today. Cyacq was formed by Citicorp Capital Investors Ltd and Audio Video Affiliates INc <AVA> to acquire Cyclops. THe tender offer began on February six. The offer is conditioned upon at least 80 pct of the outstanding shares and at least 80 pct of the voting securities being tendered before expiration of the offer. As of March six, only 353 shares of Cyclops' 4.1 mln outstanding shares had been tendered. Reuter 

INT'L RECTIFIER <IRF> DEBT DOWNGRADED BY S/P

Standard and Poor's Corp said it cut to CCC from B-minus International Rectifier Corp's 58 mln dlrs of convertible subordinated debentures due 2010. The company's implied senior debt rating is B-minus. S and P said the downgrade reflected expectations of restricted financial flexibility through at least the intermediate term. It also cited a highly leveraged balance sheet and reduced access to capital. The rating agency said International Rectifier's ability to reduce high debt levels and interest expense through cash from operations is very limited. Reuter 

CONTINENTAL AIRLINES FILES FOR NOTE OFFERING

Continental Airlines Inc, a unit of Texas Air Corp, said it filed a registration statement with the Securities and Exchange Commission relating to 100 mln dlrs principal amount of Senior Notes due 1997 guaranteed by Texas Air Corp. Interest will be payable March 15 and September 15 beginning September 15, 1987. Proceeds will be added to Continental's corporate funds to provide additional liquidity. Reuter 

NEWFOUNDLAND CAPITAL TO ISSUE DEBENTURES

<Newfoundland Capital Corp Ltd> said it will issue 25 mln dlrs principal amount of eight pct convertible subordinated debentures. Underwriter is Loewen, Ondaatje, McCutcheon and Co Ltd. Net proceeds will be used for working capital, the company said. Reuter 

SEMICONDUCTOR FEBRUARY BOOK-TO-BILL RATIO 1.13

The Semiconductor Industry Association said the February three-month average book-to-bill ratio was 1.13 pct, compared to a revised 1.12 pct in January. The January figure was revised from the 1.11 pct reported last month. In its monthly survey of U.S., European and Japanese semiconductor makers, the association said average orders for February totaled 788.2 mln dlrs, compared with 780.2 mln in January and 684.3 mln in February a year ago. A book-to-bill ratio of 1.13 means that for every 100 dlrs worth of product shipped, manufacturers received 113 dlrs worth of new orders. The association said February shipments were 677.8 mln dlrs, up 4.9 pct from the 645.9 mln shipped during January and seven pct higher than the 633.5 mln reported in February a year ago. Three month average billings for February totaled 699.4 mln dlrs, up 0.2 pct from January's 697.8 mln, the association also said. "The continuing improvement in the U.S. semiconductor market reflects the fact that U.S. electronics equipment manufacturers' sales are finally increasing," Semiconductor Industry Association president Andrew Procassini said. The figures of the past few months suggest that the industry is experiencing a gradual recovery that is likely to continue, said Edward White, semiconductor analyst at E.F. Hutton Group Inc. But he also said semiconductor makers still need a pickup in capital spending within the high-technology sector before any dramatic upturn can take place. The February figures show strong single-month improvement in the semiconductor industry, but after closer examination they may prove to be disappointing to investors, said Michael Gumport, an analyst at Drexel Burnham Lambert Inc. "On the face of it these numbers are below recent expectations," Gumport also said. A 1.15 or higher book-to-bill ratio had been expected, Gumport said. He also said the three month average book-to-bill ratio, which was reported earlier than expected, reflected a downward revision in the December order total, Gumport said. December's order rate amounted to 757.5 mln dlrs, down from the earlier-reported 783.8 mln dlrs, the association said. Reuter 

MONO GOLD SAYS PARTNERSHIP AGREES TO BUY SHARES

<Mono Gold Mines Inc> said <NIM and Co Ltd> Partnership agreed to buy flow-through shares with an aggregate purchase price of up to 300,000 dlrs. It said, subject to fulfillment of certain conditions, the price of the shares to NIM will be 79.6 cts per share, and said it will issue 376,955 shares to the partnership. Mono also said options to buy up to 300,000 dlrs of its capital stock at 65 cts per share expire March three. It said 39,000 options have been exercised to net the company 25,530 dlrs to be added to working capital. Reuter 

USLICO CORP <USVC> INCREASES DIVIDEND

Qtly div 22 cts vs 20 cts prior payable March 27 Record March 18 Reuter 

USAIR GROUP REQUESTS TRANSPORTATION DEPARTMENT ORDER TWA TO DIVEST STAKE

CHAIRMAN OF KING WORLD <KWP> FACES CHARGES

Roger King, chairman of King World Productions Inc, faces charges of cocaine possession, auto theft and strong-arm robbery stemming from his arrest in Fort Lauderdale, Fla., last month, police said. The report of King's legal problems sent the stock of his company -- a syndicator of some of television's most popular talk and game shows -- down sharply on Wall Street. Fort Lauderdale police spokesman Ott Cefkin said King was arrested on February 21 on charges that he beat up a taxi driver during a dispute over a fare and then stole the man's car. After King was taken in custody, police found three small bags of cocaine in his shirt pocket, Cefkin said. King World distributes Wheel of Fortune, Jeopardy and the Oprah Winfrey Show. According to the police report, King, 42, was in Fort Lauderdale visiting his brother when the incident occurred. Police said a taxi driver picked King up outside a Fort Lauderdale night club but stopped the car after a short distance when he became concerned that his passenger would be unable to pay the fare. "Mr. King attacked the driver, punched him and then took the cab and drove off," Cefkin said. King was arrested by police a few minutes later and was charged with strong-arm robbery, auto theft and possession of a small quantity of cocaine, police said. Reuter 

JACOBS REPLACED AS MINSTAR <MNST> PRESIDENT

Minstar Inc said Kenneth J. Severinson was named president and chief operating officer to succeed Irwin L. Jacobs. Jacobs remains chairman and chief executive officer of the company. Severinson has most recently worked as president of Minstar's energy services group. Reuter 

DIPLOMAT ELECTRONICS <DPEC> TO CUT COSTS

Diplomat Electronics Corp said it will reduce expenses by four mln dlrs a year in an effort to stem losses and return to a positive net worth. The company also said certain lenders agreed to take a 24 pct stake in the company by converting seven mln dlrs of debt into preferred stock. Diplomat said it will cut costs by several means, including dismissal of 100 workers at its corporate headquarters, consolidation of its warehousing and shipping operations and reduction of management salaries. Moreover, it said it will relocate its headquarters to Glendale, Calif. Reuter 

U.S. CORN GROWERS BLAST CANADA CORN RULING

Canada's ruling in favor of a duty on U.S. corn was a keen disappointment to the National Corn Growers Association and has set a dangerous precedent for other nations to follow, said Mike Hall, lobbyist for the association. "The French corn growers will clearly charge ahead now and just change corn to corn gluten feed" in their complaint, Hall told Reuters. A Canadian government agency ruled today that U.S. farm policies are causing injury to Canadian corn farrmers and supported an earlier imposed countervailing duty of about 85 cts per bushel. "This was cleary a political decision," Hall said. "The amount of corn we export to Canada is insignificant." The unexpected ruling appeared to be based on the agrument that Canada bases its corn prices on U.S. futures prices and that American farm policy has driven down these prices, thus causing lower prices to Canadian farmers and larger government payments through its farm stabilization program, Hall said. Hall said this is a new definition for injury, but that other nations might also now apply this same argument to attack U.S. farm programs. The French corn growers could now charge that U.S. farm programs create an unfair subsidy for corn gluten feed, Hall said. The French have long wanted to control the imports of U.S. corn gluten feed into the community, saying that the imported feed was unfairly displacing European grain. Reuter 

AIRCOA <AIRC> FORMS LIMITED PARTNERSHIP

AIRCOA said it formed AIRCOA Hotel Partners LP, a limited partnership formed to acquire and operate hotel and resort properties. AIRCOA said it holds a one pct general partner interest in the partnership. The remaining 99 pct interest is held by AIRCOA affiliates, it said. AIRCOA said it plans to file a registration statement for the public offering of limited partnership interests. Net proceeds would be used to refinance the partnerships unsecured debt and for capital improvements to hotels, it said. AIRCOA said the partnership bought seven hotel and resort properties from its affiliates. It said financing for the acquisitions was provided by a 90 mln dlr mortgage loan from Bankers Trust Co and Cassa Di Risparmio Di Torino of New York. The partnership also received 30 mln dlrs of unsecured loans from a group of institutional lenders and 10 mln dlrs in subordinated debt from AIRCOA, the company said. Reuter 

DOLLAR GENERAL CORP <DOLR> QTLY DIVIDEND

Qtly div five cts vs five cts prior Payable April three Reocrd March 20 Reuter 

HEALTHCARE SERVICES <HSAI> SEES WRITE-OFFS

Healthcare Services Of America Inc said it will write off about 16 mln dlrs in non-recurring expenses in 1986. It also said it expects income from operations to be about breakeven for 1986 and the estimated loss for the year to be about the same as the writeoffs. Results will be released by March 31, 1987. Included in the writeoffs were six mln dlrs in developmental costs, six mln dlrs in unamortized loan costs and debt discounts and four mln dlrs in other non-recurring costs. The company said it continues to be in default of certain financial and non-financial covenants set forth in its major loan documents. It said negotiations continue with the banks, but has no assurance that such funding will continue. It said it authorized Smith barney, Harris Upham and Co to seek a business combination with third parties. Healthcare also said the board has authorized the sale or lease of certain assets to reduce the cash required from the revolving credit line for completion of current construction projects. For the year ended December 31, 1985 Healthcare reported net income of 3.5 mln dlrs on sales of 54.4 mln dlrs Reuter 

USAIR <U> SEEKS ORDER AGAINST TWA <TWA>

USAir Group said it sought the help of the U.S. Department of Transportation in its takeover fight with Trans World Airlines Inc, asking the Department to order TWA to sell its USAir shares. "What they have done is in direct violation of the Federal Aviation Act," USAir said. It said TWA week filed a cursory application with the Department of Transportation for approval of its proposed 1.65 billion dlr takeover of USAir. USAir rejected the offer and said it asked the Department of Transportation to dismiss the application. USAir said it requested the dismissal because TWA avoided pre-merger notification requirements, and also did not provide a competitive and public interest analysis required under regulations. USAir said if the application is dismissed, TWA would be limited to buying only 1.5 pct of its 31.7 mln outstanding shares. If the application is approved, TWA could buy up to 10 pct, it said. TWA has said it owns less than 10 pct of USAir's stock. TWA today revealed that it has increased its holdings to more than four mln USAir shares, 15 pct of the outstanding. TWA vice president general counsel Mark Buckstein said the company had made appropriate filings with the DOT and was in compliance with the law. Reuter 

PARK-OHIO INDUSTRIES INC <PKOH> 4TH QTR NET

Shr loss 52 cts vs profit 1.07 dlr Net loss 2,917,000 vs profit 5,963,000 Revs 34.1 mln vs 40.3 mln Year Shr loss 1.39 dlr vs profit 1.24 dlr Net loss 7,749,000 vs profit 6,946,000 Revs 138.6 mln vs 186.2 mln NOTE: 1986 net includes certain non-recurring charges of about 5,506,000 dlrs for a number of items. 1985 4th qtr and yr net includes extraordinary credit of 4,974,000 dlrs or 89 cts per share. Reuter 

BMC INDUSTRIES INC <BMC> 4TH QTR LOSS

Shr loss 1.20 dlrs vs loss 1.97 dlrs Net loss 6,248,000 vs loss 10.2 mln Revs 33.1 mln vs not given Year Shr loss 1.25 dlrs vs loss 13.44 dlrs Net loss 6,508,000 vs loss 69.6 mln Revs 123.4 mln vs not given NOTE: Results include charges of five mln dlrs or 96 cts shr for 1986 qtr and year, compared with charge of 72.2 mln dlrs or 13.94 dlrs shr in prior year from discontinued operations and disposal of discontinued operations. Reuter 

UNITED COMPANIES <UNCF> DECLARES STOCK DIVIDEND

United Companies Financial Corp said its board declared a two pct stock dividend payable APril eight to holders of record March 17. The board also declared a regular quarterly cash dividend of 12.5 cts payable April one to holders of record March 16. Reuter 

STEINBERG SIGNS UP INDEPENDENT GROCERS

<Steinberg Inc> said it has affiliated the first two independent grocers in the Montreal area to the Steinberg banner. It said it plans to announce shortly affiliations with independent grocers. Reuter 

U.S. FARM PROGRAMS HELP CANADIAN CORN PRODUCERS

An American Farm Bureau Federation (AFBF) official said that far from hurting Canadian corn producers, U.S. farm programs benefit all foreign producers. AFBF president Dean Kleckner made the comments in response to the ruling earlier today by the Canadian Import Tribunal that subsidized U.S. corn imports were injurious to Canadian growers. The tribunal upheld a countervailing duty of 84.9 U.S. cents a bushel. "Farm Bureau specialists went to Ottawa and testified previous U.S. farm programs have actually benefited all foreign producers by reducing the amount of corn grown in the U.S. (and losing market share), while exerting an upward influence on the price of corn Worldwide," he said. Reuter 

U.N. ISSUES REPORT ON NATURAL GAS CLAUSES

The U.N. Centre on Transnational Corporations has issued a report containing guidelines and recommendations for negotiating natural gas clauses in agreements between transnational petroleum corporations and host countries. The U.N. said the report was aimed at promoting petroleum exploration in areas perceived as being gas prone. The 49-page report contains an in-depth examination of the problems of gas developoment and looks at different ways in which contractual terms might deal with the risks in gas development associated with pricing, marketing and volume. Reuter 

TAFT<TFB> BIDDERS WOULD SELL ENTERTAINMENT UNIT

A proposed buyout of Taft Broadcasting Co by Dudley Taft and other investors includes a plan to sell the company's Entertainment Group, according to one of the investors. Jonathan Nelson, managing director of Narragansett Capital Corp <NARR>, which is participating in the buyout plan, declined to say if buyers have already been lined up for the Entertainment Group. "We are considering selling the group," Nelson said. Wall Street analysts said any of the Hollywood film studios which might be interested. Taft Broadcasting Co did not comment on the 145 dlr per share offer. Taft has 9.2 mln shares outstanding, of which 12 pct are owned by the Taft and Ingalls families. Dudley Taft relinquished the title of president in July but continues as vice chairman of the company. Taft-Narragansett requsted a response to its proposal by March 12. If the plan is accepted, Taft would be a private company financed by high yield bonds and bank debt, Nelson said. Narragansett is an investment management company specializing in leveraged buyout transactions. Taft shares climbed 19 to 151-1/2, causing arbitrageurs to say investors believe the bidders may raise their price. Robert M. Bass, who controls 25 pct of the stock, and American Financial Corp, holder of 15 pct, did not return telephohe calls seeking comment. But Dennis McAlpine, analyst at Oppenheimer and Co, said "I don't think it's worth 150 dlrs." He noted Taft recently agreed to sell a group of independent television stations at a loss. He said the entertainment group, which includes the Hanna-Barbara animation studios, is currently hampered by a glut of animated product. Taft Broadcasting has never commented on reports that its major stockholders met recently to discuss a break-up of the company. MacAlpine said there are lots of options for reshaping the company with a distribution of various pieces to the major shareholders among the possibilities. Analyst Alan Gottesman of L.F. Rothschild, Unterberg Towbin Inc said the Bass group has been increasing its stake in the belief the company would be worth more with a change in its strategy. He said Bass pushed for sale of the independent television stations because the company paid too much. Reuter 

POSITIVE OUTLOOK TEMPERED IN U.S. DEBT FUTURES

Higher oil prices and stronger than expected U.S. employment growth led to sharp losses in U.S. interest rate futures and diminished what had been a positive chart outlook, financial analysts said. The increase of 319,000 in non-farm payroll employment during February was above market expectations for a rise of 170,000 to 200,000 jobs and sparked selling in Treasury bond futures that drove the June contract through key technical support at 101-2/32 at the opening Friday, they noted. "I don't like that fact that we had a close below 101," said Prudential Bache analyst Fred Leiner. The 101-2/32 level in the June bond contract had been the top of a three-month trading range, which when penetrated during the rally Wednesday led to bullish forecasts by chartists. But analysts called it a false breakout on the weekly charts when the June bond closed at 100-10/32 Friday. Some also forecast that the high of the week at 101-19/32 may signal a bearish double top formation portending steep losses. "I tend to go along with the double top scenario," said Northern Futures analyst Eileen Rico. Rico noted that the possible formation, along with the fact that the rally of the last two weeks in bond futures has occurred on relatively low volume, were negative signals. Despite what could be a negative chart outlook, Leiner remains cautiously optimistic, and June bonds should find support between 100 and 99-16/32 next week. The optimistic outlook, as well as Leiner's expectation that the yield curve will flatten in the near term, is based on an improving inflation outlook. With the dollar stable and economic data giving the Federal Reserve little room to ease monetary policy, "the inflation outlook is improving," Leiner said, and that should lead to relatively stronger bond prices than bill and Eurodollar prices. Still, Leiner noted that the recent rise in oil prices remains a concern for the inflation outlook. Oil rose during the week on reports that OPEC nations were maintaining production quotas and official prices, and got an extra boost Friday due to the suspension of oil exports from Ecuador after an earthquake Thursday. "The runup in crude oil will be a short-lived phenomenon," said Carroll McEntee and McGinley analyst Brian Singer. The rise in oil prices over the past week has been largely "media induced," Singer said. He noted that even though OPEC production may be within quotas, "oil stocks are at tremendously high levels." Although the Ecuador situation could cause a delay, oil prices will eventually decline to the lows of late February, he said, and that will be a supportive influence for bond prices. Reuter 

SANDOX BUYS STAUFFER SEEDS

Sandoz Corp's Northrup King Co said it bought Stauffer Seeds, a unit of Stauffer Chemical Co. Terms were not disclosed. Reuter 

ENERGEN <EGN> BUYS MUNICIPAL GAS SYSTEM

Energen Corp said it has acquired the distribution system of the City of Clanton, Ala. for about 1.2 mln dlrs. The 1,800 customer system is the fourth municipal system acquired by Energen's Alabama Gas subsidiary since October 1986, adding a total of 9,600 customers. Reuter 

SIERRA PACIFIC RESOURCES INC <SRP> DIVIDEND

Qtly div 43 cts vs 43 cts prior Payable May one Record April 15 Reuter 

METEX CORP <MTX> 4TH QTR DEC 28

Shr 22 cts vs 49 cts Net 296,994 vs 657,416 Revs 6.5 mln vs 9.5 mln Year Shr 78 cts vs 1.51 dlrs Net 1.0 mln vs 2.0 mln Revs 27.6 mln vs 29.4 mln Reuter 

HOUSTON OIL TRUST <HO> OMITS MARCH DISTRIBUTION

Houston Oil Trust said there will be no cash distribution to the unit holders in March. The most significant factor for the lack of a distribution this month is the establishment of additional special cost escrow accounts, the company said, adding, that there may be no cash distribution in other months or during the remainder of the year. For March, the working interest owner will place 1.9 mln dlrs in special cost escrow accounts. Reuter 

CORRECTED - MELLON <MEL> UNIT'S NOTES

First Boston Corp said it is selling 150 mln dlrs of deposit notes due 1992 that it bought from Mellon Bank NA, a unit of Mellon Bank Corp. First Boston is offering the notes to the public with a 7.45 pct coupon and par pricing. That is 73 basis points more than the yield of comparable Treasury securities. The issue has a one-time call after three years, First Boston detailed. If the notes are not redeemed at that time, they will be non-callable to maturity. -- First Boston corrects that it, not Mellon, is selling the notes to the public. Reuter 

PUGET SOUND POWER <PSD> REDEEMS MORTGAGE BONDS

Puget Sound Power and Light Co said its board authorized the redemption on April 20 of the outstanding principal amount of 94.7 mln dlrs of first mortgage bonds. The issues included are 29.7 mln dlrs of 9-1/2 pct series due 2000 at the regular redemption price of 104.4 pct, 51.74 mln dlrs of the 9-7/8 pct series due 2008 at the redemption price of 100 pct and 13.26 mln dlrs of the 9-7/8 pct series due 2008 at 106.63 pct. Accrued interest will be added in each case. Reuter 

MONOCLONAL ANTIBODIES <MABS> BUYS COMPANY

Monoclonal Antibodies Inc said it signed an agreement in principle to buy <Genesis Labs Inc> for about 10 mln dlrs of common stock. The agreement is subject to shareholders approval and other conditions. Reuter 

SONO-TEK IN INITIAL OFFERING

<Sono-Tek Corp> said it began an initial public offering of 400,000 shares at a price of five dlrs per share. Proceeds will be used to repay debt, product development, expansion of facilities and working capital. Reuter 

ATLANTIC CITY ELECTRIC <ATE> DEBT LOWERED BY S/P

Standard and Poor's Corp said it cut the ratings of Atlantic City Electric Co. About 500 mln dlrs of long-term debt and 66 mln dlrs of preferred is outstanding. S/P said prior ratings reflected anticipation of a significant improvement in financial condition following the completion of the Hope Creek nuclear unit and receipt of subsequent rate relief. But the New Jersey Board of Public Utilities' recent rate action will not permit enhancement of key financial indicators. Ratings lowered include the senior debt to A-plus from AA-minus and preferred stock to A from AA-minus. Reuter 

U.S. TREASURY PROPOSES SOME S. AFRICAN IMPORTS

The Treasury proposed allowing temporary imports of South African uranium ore and uranium oxide until July 1 under certain conditions pending clarification of anti-apartheid laws passed by Congress last fall. The proposal to be published in the Federal Register next week requests written congressional and public comment within 60 days and deals with uranium ore and oxide that is imported for U.S. processing and exporting to third countries. The Treasury said it proposed allowing the temporary imports because it felt Congress had not intended when it passed the comprehensive South African sanctions bill last fall -- overriding President Reagan's veto -- to hurt U.S. industry. "The domestic uranium conversion industry and the federal government's enrichment industry could be seriously injured in a manner not intended by Congress if the . . . import ban on uranium ore and oxide were implemented to bar imports for processing and export through a mistaken interpretation of the act," the Treasury brief said. The Treasury said an outright U.S. ban of uranium ore and oxide might cause foreign electric utilities to divert their South African origin ore and oxide to other countries including the Soviet Union for processing. Treasury said it would allow imports of the South African ore and oxide until July 1 for processing and re-export "provided that the imported ore or oxide is accompanies by a license for importation issued by the Nuclear Regulatory Commission." The Treasury brief also proposed allowing U.S.-origin goods to be imported temporarily from South African state-controlled organizations for repair or servicing in the United States. "The U.S. Customs will allow such importation to be made under bond," the brief said. The South African sanctions law, enacted by the United States to protest the apartheid laws of racial segregation practiced by South Africa's white minority government, prohibited imports of uranium ore and oxide, iron and steel, coal and textiles at the end of 1986. Reuter 

BMC INDUSTRIES <BMC> UNIT GETS SOVIET CONTRACT

BMC Industries Inc said its West German subsidiary has received a contract valued at about eight mln dlrs from the Soviet Union to supply engineering and manufacturing services to build a television parts plant. The company's Precision Etched Products unit in Muellheim, West Germany, signed the contract to provide services that will enable the Soviets to build a plant to make television tube aperture masks, it said. A BMC spokesman told Reuters the one-year contract will be for about eight mln dlrs. The contract is the first BMC has had with the Soviet Union in 10 years ago, he said. The project has received the necessary U.S. government clearances, he said. BMC also said it has entered into a joint venture agreement with Italy to produce finished single vision plastic eyewear lenses using a new manufacturing process. It would provide no further details. Reuter 

BRANIFF INC <BAIR> 4TH QTR LOSS JAN 31

Shr loss 37 cts vs loss 13 cts Net loss 4.5 mln vs loss 1.5 mln Revs 63.3 mln vs 53.8 mln Year Shr loss 74 cts vs profit 1.87 dlr Net loss 9.0 mln vs profit 23.0 mln Revs 239.5 mln vs 244.3 mln NOTE:1986 net includes extraordinary gain of 10.6 mln dlrs from tax loss carryforward in year and loss of 198,000 dlrs in 4th qtr. Reuter 

JUSTICE DEPT. SUPPORTS DISMISSAL OF TWA APPLICATION FOR USAIR CONTROL

TRANSPORTATION DEPARTMENT DISMISSES TWA APPLICATION FOR USAIR CONTROL

SOUTWESTERN BELL <SBC> TO FILE REVISIONS

Southwestern Bell Corp said it will file revisions with the public Utility Commission for its Dial 976 Information Delivery Service. The service, available in four Texas cities since November 1986, allows customers to access sponsor-provided messages by dialing numbers that begin with 976. Southwestern Bell said customer concerns center on the need for restricting access to adult entertainment messages and for greater awareness that charges apply for calls to 976 numbers. It said its revisions are responsive to these concerns. Reuter 

U.S. TREASURY PROPOSES S.AFRICAN URANIUM IMPORTS

The U.S. Treasury proposed allowing temporary imports of South African uranium ore and uranium oxide until July 1 under certain conditions pending clarification of anti-apartheid laws passed by Congress last fall. The Treasury said it proposed allowing the temporary imports because it felt Congress had not intended when it passed the comprehensive South African sanctions bill last fall -- overriding President Reagan's veto -- to hurt U.S. industry. The Treasury said an outright U.S. ban of uranium ore and oxide might cause foreign electric utilities to divert their South African origin ore and oxide to other countries including the Soviet Union for processing. The Treasury also proposed allowing U.S.-origin goods to be imported temporarily from South African state-controlled organizations for repair or servicing in the U.S. The South African sanctions law, enacted by the U.S. to protest the apartheid laws of racial segregation practiced by South Africa's white minority government, prohibited imports of uranium ore and oxide, iron and steel, coal and textiles at the end of 1986. Reuter 

BIOMED RESEARCH LOSES TRANSFER AGENT

Biomed Research Inc said its transfer agent, First security Bank of Utah, will not continue to act as transfer agent for the company due to nonpayment of fees. Since Biomed does not have sufficient funds to pay the transfer agent, the company urges against any purchases or sales until further notice. Reuter 

26 REPORTED DEAD IN FERRY DISASTER

At least 26 people died when a car ferry struck a pier as it left Belgium for Britain, a nurse who took part in the rescue operation said. Jan Van Moerbeke, a male nurse, said on coming off the Herald of Free Enterprise that he had found six people on top of the vessel who were dead. There were at least another 20 dead inside the boat, he added. The governor of West Flanders province said 240 people were still unaccounted for. Reuter 

CONTINENTAL FEDERAL <CONF> HOLDER TO SELL STAKE

Continental Federal Savings and Loan Association said it was told that an estate holding 38 pct of its stock plans to sell its stake at a premium over the current stock price. Continental said the estate of Harold Vernon and certain parties have signed a letter of intent to sell the stock for 12.25 dlrs a share, for a total of about 6,538,000 dlrs. Continental's stock closed at seven in over-the-counter trading. The thrift said the buyer is <BAC Inc>, a corporation acting for certain unindentified parties. Reuter 

BROKER'S CHOICE TO BUY RUBBERTECH

Broker's Choice Capital Inc said it signed a letter of intent to buy Rubbertech Inc. If approved by shareholders, Broker's Choice will issue about 71 mln shares of authorized, but unissued shares of restricted common stock to Rubbertech Inc. Reuter 

ARGENTINA UNAFFECTED BY BRAZIL'S MAIZE DECISION

A government official said that a decision by Brazil not to import maize because it forecast a record harvest would not affect Argentina's exports. "We have heard nothing about this, but if Brazil has decided not to import maize that is no problem for us as it is not one of our main customers," Agriculture, Livestock and Fisheries Under-Secretary Miguel Braceras said. Private sources also said Argentina's exports would not be affected by Brazil's decision, which Agriculture Minister Iris Resende announced yesterday in Sao Paulo. Brazil had not asked for any Argentine maize, they said. They also said a smaller crop and adverse weather this summer in Argentina had reduced production. Braceras said that last year Brazil bought 800,000 tonnes of Argentine maize but in some years it had not imported any from Argentina. The Soviet Union was Argentina's main customer and Japan was also becoming a bigger importer of the country's maize, he said. Reuter 

DOT DISMISSES TWA <TWA>, USAIR <U> APPLICATION

The U.S. Department of Transportation (DOT) said it dismissed on technical grounds an application by Trans World Airlines Inc for DOT approval for it to take control of USAir Group. The DOT added, however, that TWA was free to refile when it could put together an application for control that met the agency's procedural requirements. The DOT acted shortly after the U.S. Department of Justice disclosed that it supported dismissal of the TWA application. It was not immediately clear what impact the denial would have on TWA's bid to take over USAir. In its control application, TWA had acknowledged that additional documentation was required to meet DOT rules and said it would file more material on the morning of March 9. But the DOT said it would not wait. "We have determined to dismiss TWA's application for approval of the acquisition of USAir," it said in an order issued late Friday. "TWA's application clearly fails to comply with the filing requirements of our regulations...and TWA has provided no reason why we should accept such a deficient filing," it added. "Accordingly, we will dismiss the application. TWA, of course, may refile it when it is able to comply with our procedural rules," the DOT said. The agency added that it would continue to consider a separate TWA request for federal clearance to purchase USAir stock through a voting trust. USAir had said earlier today that it asked the DOT to dismiss the TWA control application, on grounds the TWA filing did not meet DOT requirements. Reuter 

TWA SAID IT WILL REFILE APPLICATION MONDAY WITH DOT

TWA <TWA> TO REFILE WITH U.S. AGENCY

Transworld Airlines Inc plans to refile an application Monday with the Department of Transportation for approval to acquire USAir Group <U>. The DOT late today dismissed TWA's application to acquire USAir. "When the DOT opens for business on Monday morning, we will be refiling a perfected and completed section 408 application," said TWA general counsel Mark Buckstein. Buckstein said the DOT ruled the application, which was filed Wednesday, was incomplete. He said he did not yet know why the agency objected. Reuter 

JUSTICE ASKS U.S. DISMISSAL OF TWA (TWA) FILING

The Justice Department told the Transportation Department it supported a request by USAir Group that the DOT dismiss an application by Trans World Airlines Inc for approval to take control of USAir. "Our rationale is that we reviewed the application for control filed by TWA with the DOT and ascertained that it did not contain sufficient information upon which to base a competitive review," James Weiss, an official in Justice's Antitrust Division, told Reuters. Reuter 

HONG KONG BANKS LEAVE INTEREST RATES UNCHANGED

The Hong Kong Association of Banks said it decided to leave interest rates unchanged at today's regular weekly meeting. Current rates are 1-3/4 pct for savings accounts, 24-hours, seven-day call, one-week and two-weeks. One-month is 2-1/4 pct, two-months 2-1/2 pct, three- and six-months are both three pct, nine-months 3-1/4 pct and 12-months 3-3/4 pct. Prime rate is six pct. REUTER 

SAVINGS ACUISITION IN CALIFORNIA ANNOUNCED

The Federal Home Loan Bank Board (FHLBB) announced the acquisiton of South Bay Savings & Loan Association in Gardena, Calif., By Standard Pacific Savings of Costa Mesa, Calif. The FHLBB said South Bay had assets of 62.5 mln dlrs and Standard Pacific had 312.8 mln dlrs in assets. It was the fourth federally-assisted merger or acquisition of a troubled savings institution this year, the FHLBB said. REUTER 

COLOMBIA DENIES SELLING COFFEE BELOW MARKET

Colombia denied having sold 440,000 60-kg bags of old crop coffee below current market prices to clients in Europe and Asia. A spokesman for the National Coffee Growers Federation, commenting on rumours which had circulated in market circles, said these were false. REUTER 

TWO HUNDRED FEARED DEAD IN FERRY DISASTER

About 200 people are feared dead after a British cross-channel ferry rolled on its side off the Belgian coast last night -- but almost 350 passengers were plucked to safety from the ice-cold sea. Belgian Transport Minister Herman de Croo told reporters: "I fear the dead could be in hundreds, perhaps 200. Given the state of the water, I fear there is no hope." Townsend Thorensen, owners of the 7,951 tonne Herald of Free Enterprise, said the ferry was carrying 543 people and that 345 had been rescued. All but one were British. REUTER 

MALAYSIA BAILS OUT ANOTHER COMMERCIAL BANK

Malaysia's central bank said it acquired a 59.2 pct stake in ailing <United Asian Bank Bhd> (UAB), the sixth largest commercial bank in the country, to rebuild public confidence in it. UAB called for a rights issue last November to raise 152.49 mln ringgit to rectify its capital deficiency following an accumulated loss of 107.61 mln ringgit at end-1985, the central bank, Bank Negara, said in a statement. But only 16.99 mln ringgit in shares was taken up by shareholders, mainly local Indian and Malay businessmen and the Indian Government. Bank Negara said it subsequently took up the unsubscribed shares, totalling 135.5 mln of UAB's new paid-up capital of 228.74 mln ringgit. It said the shares, held in trust, will be eventually sold. The central bank early this week also announced that it had bought 49.4 pct stake in another troubled commercial bank, <Perwira Habib Bank Malaysia Bhd>, after the latter raised its capital to 405 mln ringgit from 105 in mid-January this year. Bank Negara said it does not intend to hold on to the shares of the two banks. "The injection of capital in PHB and in UAB including the recamp of management in these banks are some of the measures taken by the bank to strengthen public confidence in the stability of the these banks," it added. The central bank said it is invoking Section 39A of the Banking (Amendemnt) Act 1986 empowering it to grant loans to an ailing bank or to buy a stake in it. REUTER 

ECUADOR ADOPTS AUSTERITY MEASURES AFTER QUAKE

OPEC member Ecuador adopted austerity measures to conserve fuel after oil production was paralyzed by a strong earthquake. Energy and Mines Minister Javier Espinosa announced on television the country would cut domestic fuel sales by 30 pct. A ministry statement had earlier announced indefinite suspension of crude oil exports, declaring force majeure. Deputy Energy Minister Fernando Santos Alvite told a television interviewer that it could possibly take more than a month to repair Ecuador's main pipeline linking Amazon basin oil fields to the Pacific Ocean coast. The quake on Thursday, which registered six on the 12-point Mercalli scale, killed at least six people and was centred near the Reventador volcano about 90 km (50 miles) east of Quito. Ecuador had recently been pumping 260,000 barrels per day. The government's austerity measures ban the sale of aviation fuel to foreign airliners on international routes and no fuel will be available for ships owned by foreign lines. Ecuador also banned the sale of petrol on weekends and holidays and limited sales on weekdays, an Energy and Mines Ministry communique said. REUTER 

FERRY DISASTER MAY RANK AMONG WORST TRAGEDIES

Fading hope for passengers trapped aboard a partially-sunk Channel ferry raised fears the accident could rank among this centuries' worst peacetime shipping tragedies. Belgian Transport Minister Herman de Croo said there was no hope of rescuing any of about 220 passengers trapped in the Herald of Free Enterprise after it capsized off the Belgian coast last night. If confirmed, the toll would make the incident the world's worst since a Soviet liner, the Admiral Nakhimov, collided with a freighter in the Black Sea last September and sank with the loss of nearly 400 lives. A further 856 people were rescued. The world's deadliest single peacetime incident at sea was the sinking in 1912 of the Titanic with a loss of 1,500 lives. The second biggest loss of life in peacetime was in 1914 when 1,014 people drowned when the liner Empress of Ireland collided with a freighter on the St Lawrence river in Canada. The world's worst maritime disaster was in wartime that took 7,700 lives when the German liner Wilhelm Gustloff was torpedoed by a Soviet submarine in January 30, 1945. In 1985, more than 200 were feared dead after two ferries sank near Dhaka, 174 drowned when a ferry capsized in China and 147 died when a launch sank off the Malaysian state of Sabah. REUTER 

ALMOST 200 DEAD IN FERRY DISASTER

There are no more survivors from a British cross-Channel ferry disaster off the Belgian coast and almost 200 people seem certain to have perished, a senior Belgian official said. Jacques Thas, in charge of rescue for the Herald of Free Enterprise, said his men had searched all of the ship except some inaccessible cabins and the control room. "I am afraid there are no more survivors," he said. Thas said 32 of the 543 passsengers and crew were confirmed dead and 160 were missing, bringing the total of dead or presumed dead to 192. REUTER 

<SIME DARBY BHD> SIX MONTHS TO DECEMBER 31

Shr 3.9 cents vs 4.2 cents Interim dividend three cents vs same Group net 35.8 mln ringgit vs 39.1 mln Pre-tax 77.3 mln vs 99.8 mln Turnover 1.16 billion vs 1.05 billion Note - dividend pay May 22, register April 24. REUTER 

<CONSOLIDATED PLANTATIONS BHD>

Six months to December 31 SHR 2.6 cents vs 5.2 cents Interim dividend four cents vs same Group net 12.4 mln ringgit vs 24.3 mln Pre-tax 26.6 mln vs 53.5 mln Turnover 235.3 mln vs 333.9 mln Note - dividend pay April 30, register April 3. REUTER 

<TRACTORS MALAYSIA HOLDINGS BHD>

Six months to December 31 SHR 8.8 cts vs 0.5 ct Interim dividend 12.5 cts vs nil Group net 9.5 mln ringgit vs 0.6 mln Pre-tax 11 mln vs 1.1 mln Turnover 88.9 mln vs 70.8 mln Note - dividend pay May 15, register April 17. REUTER 

<DUNLOP MALAYSIAN INDUSTRIES BHD>

Six months to December 31 SHR 1.4 cts vs 1.6 cts Interim dividend one cent vs same Group net 4.1 mln ringgit vs 4.7 mln Pre-tax 6.7 mln vs nine mln Turnover 100.8 mln vs 112.1 mln Note - dividend pay April 28, register April 3. REUTER 

BANGLADESH SUGAR PRODUCTION ALMOST DOUBLES

Bangladesh's sugar production increased by nearly 60,000 tonnes over last year's season to total 140,000 tonnes at the end of this year's season, the Sugar and Food Industries Corp said. The increased output will enable Bangladesh to cut imports. Corporation officials told Reuters the country has already imported 37,000 tonnes of sugar and will buy 113,000 tonnes more to make up shortfall in the 1986/87 year ending June 30. Imports in 1985/86 totalled 224,000 tonnes, of which nearly 100,000 tonnes are still in stock, they said without giving further details. REUTER 

GERMAN 1988 TAX CUTS RAISED BY 5.2 BILLION MARKS

Senior officials in the West German coalition government said tax cuts planned for next year would be increased by 5.2 billion marks, in line with a pledge made by Finance Minister Gerhard Stoltenberg at last month's international monetary conference in Paris. Gerold Tandler, General Secretary of the Christian Social Union Party, detailing the cuts at a news conference also attended by officials from the Christian Democratic Union and Free Democratic Party, said all of the additional 5.2 billion mark reduction would represent net tax relief. An increase in revenue from other sources was not planned. The reductions will be added on to a package of tax cuts already planned for 1988 amounting to some nine billion marks. Tandler said three billion marks of the extra tax relief would be accounted for by reducing the rate of marginal increase in income tax. An increase in personal tax allowances would save taxpayers 1.4 billion marks. Extra tax allowances for people whose children are being educated would cut 300 mln marks from the tax bill. A further 500 mln marks would be accounted for by increasing the level of special depreciations for small- and medium-sized companies. The extra fiscal measures planned for next year are part of a general reform of the tax system which will come into effect in 1990. Stoltenberg had said in Paris that part of this reform, which will cut taxes by a gross 44 billion marks, would be introduced next year, ahead of schedule. The West German government had come under pressure from the United States to stimulate its economy with tax cuts. But Stoltenberg said in a speech last night in Hamburg that, while the economy would continue to expand this year, the rate of growth was uncertain. The government said in January it was aiming for real growth in Gross National Product this year of 2.5 pct, but some economists have revised their predictions down to two or below. Stoltenberg said: "We remain on a course of expansion. Whether (this will be) under two pct, as some people believe, or around 2.5 pct as some others expect, or even closer to three pct, as the Kiel World Economic Institute forecast a few days ago, remains open at the moment." REUTER 

YIELD FALLS ON 30-DAY SAMA DEPOSITS

The yield on 30-day bankers security deposit accounts issued this week by the Saudi Arabian Monetary Agency (SAMA) fell to 5.84073 pct from 6.21950 last Saturday, bankers said. SAMA increased the offer price on the 900 mln riyal issue to 99.51563 from 99.48438. One-month interbank riyal deposits were quoted today at 6-1/4, six pct. SAMA offers a total of 1.9 billion riyals each week in 30, 91 and 180-day paper to banks in the Kingdom. REUTER 

SIX HURT IN SHOOTING AT SIKH TEMPLE IN AMRITSAR

Police and security forces entered the Golden Temple in Amritsar after six people including four policemen were wounded in a shooting incident in the complex, police said. Police in Chandigarh, capital of Punjab state, said about 300 men entered the complex after a party of plainclothes police were fired on, apparently by extremists campaigning for a separate Sikh homeland. It was the first time uniformed police had entered Sikhdom's holiest shrine since last June when extremists stabbed a temple guard to death. REUTER 

EXPERTS HAD EXPRESSED FEARS OVER RO-RO SAFETY

As a British government investigation got under way into the sinking of the car ferry Herald of Free Enterprise with heavy loss of life, experts said doubts had already been expressed about the roll-on roll-off type of ship. Shipping minister Lord Brabazon said a preliminary investigation had started into why the 7,951 tonne ferry capsized and sank in little over a minute as it manoeuvred to leave Zeebrugge on a routine four hour crossing to Dover. Initial reports spoke of water flooding the car decks through the bow doors. But a spokesman for the owners, Townsend Thoresen, said it was also possible the ferry had been holed. Townsend Thoresen operate two other ships identical to the Herald of Free Enterprise, but Brabazon said it was not planned to pull them out of service at present. "Our investigator is there already. We shall have to wait and see. But it is too early to say what happened," he told BBC radio. As the work of retrieving bodies from the half-submerged hulk continued, maritime safety experts in London said doubts had already been expressed about the design of so-called "RoRo" ferries such as the Herald of Free Enterprise. In 1980 the Inter-Governmental International Maritime Consultative Committee issued a report saying more roll-on roll-off vessels were lost in accidents than ships with deck areas divided by bulkheads. Townsend Thoresen say the ship, built at the West German yard of Bremerhaven in 1980, was built to the highest safety standards. But salvage expert William Cooper said passengers would have had problems getting off this type of ship because of its design. Former Townsend Thoresen navigating officer Clive Langley said the RoRo type of vessels were similar in some respects to a barge. "As any sailor knows it only takes two or three inches out of line and you can turn a barge over. An ordinary ship is compartmentalised and you have more stability," he said. Cooper said cross-Channel ferries were normally perfectly stable but had huge wide deck areas above the water level. "If you do get water into that area then you can get very severe effects on the stability of the ship," he added. REUTER 

WORLD BANK LENDS TO CHINA'S MACHINE TOOL INDUSTRY

The World Bank approved a 100-mln-dlr 20-year loan to help modernise the machine tool industry in Shanghai, the New China News Agency said. It quoted a World Bank press release in Shanghai as saying that the loan would help modernise 18 plants and research institutes owned by the Shanghai Machine Tool Works and the Shanghai Machine Tool Corp to import manufacturing technology and to develop training programmes for managers and engineers. With a five-year grace period, its interest rate is currently estimated at 7.92 pct but would be variable, it said, without indicating with what it would vary. REUTER 

IRAQ-TURKEY OIL PIPELINE CUT BY LANDSLIDE

Turkey oil pipeline near the southern town of Adana after it was cut by a landslide, the Hurriyet and Anatolian news agencies said. Little oil was lost in the landslide Friday night because taps on the one mln bpd line were switched off after the accident, they said. The pipeline, which carries oil for Turkey and other customers from Iraq's Kirkuk field to the Yumurtalik terminal on the Turkish Mediterranean coast, is Iraq's main oil outlet. REUTER 

BRAZIL SEAMEN CONTINUE STRIKE AFTER COURT DECISION

Hundreds of marines were on alert at 11 key Brazilian ports after 40,000 seamen decided to remain on indefinite strike, even after the Higher Labour Court yesterday ruled it illegal, union leaders said. The halt, the first national strike by seamen in 25 years, started on February 27, and union leaders said they would not return to work unless they got a 275 pct pay rise. Shipowners have offered a 100 per cent raise, which the seamen rejected. "We have nothing to lose. If they want to lay off the workers, fine, but we are determined to carry on with our protest until the end," a union leader said. He said they had decided in a meeting that if the marines take over the ships, the seamen would abandon the vessels and let the marines handle the situation by themselves. A spokesman for the Rio de Janeiro Port said the order to send marines to take over the ports was given by Navy Minister Henrique Saboya on grounds that ports are areas of national security. But he said there were no incidents. The strike has cut exports and imports and made an estimated 160 ships idle. Petrol station owners in four states also continued their shutdown and there were fears that the combination of the two stoppages could lead to a serious fuel shortage. REUTER 

INDONESIA SAID TO BE STABLE AHEAD OF ELECTIONS

Indonesia's Armed Forces Commander General Benny Murdani said warnings about an extremist threat to the country's forthcoming elections do not mean the security situation has deteriorated. He was quoted in today's edition of the armed forces newspaper Harian AB as saying the warnings were only an appeal for vigilance ahead of the April 23 polls. Major-General Setijana, military commander of central Java, said in widely-quoted remarks last week that both leftist and rightist extremists were planning to sabotage the polls in an attempt to topple President Suharto's government. Murdani told a meeting of the ruling Golkar party in Jakarta yesterday that he believed the security situation was now stable. However, he also said mass meetings during the election campaign period should be avoided, as they could trigger what he termed a critical situation very easily. About 60 people died in accidents and election-related violence during the last parliamentary elections in 1982. REUTER 

ECUADOR TO EXPORT NO OIL FOR FOUR MONTHS, OFFICIAL

The suspension of Ecuador's crude oil shipments after an earthquake cut an oil pipeline will last at least four months, a senior Energy Ministry official said. The official said Ecuador could resume exports after repairing a 40 km section of the 510 km pipeline, which links jungle oil fields at Lago Agrio to Balao on the Pacific coast. It would take about 100 mln U.S. Dlrs to repair the pipeline, the official, who did not want to be named, told Reuters. Ecuador had enough oil to meet domestic demand for about 35 days and would have to import crude to supplement stocks. The earthquake last Thursday night registered six on the 12-point international Mercalli scale. The damage to the pipeline was a severe economic blow to Ecuador, where oil accounts for up to two-thirds of total exports and as much as 60 pct of government revenues. Financially pressed Ecuador, a member of the Organisation of Petroleum Exporting Countries (OPEC), was recently pumping about 260,000 barrels per day (bpd) of crude, about 50,000 bpd above the output quota assigned by the cartel, another Energy Ministry spokesman said. Last year, it exported an average of 173,500 bpd, according to the central bank. However, Ecuador might build an emergency 25 km pipeline, costing 15 to 20 mln dlrs, to hook up with a Colombian pipeline, the first official said. He estimated it could take about 60 days to build. Ecuador, squeezed by the slide in world oil prices in 1986, had only 138 mln dlrs in net international reserves at the end of January, about equal to one month's imports. It suspended interest payments in January on 5.4 billion dlrs owed to about 400 private foreign banks. The country's total foreign debt is 8.16 billion dlrs, the eighth largest in Latin America. In Caracas, President Jaime Lusinchi said Venezuela would loan five mln barrels of crude to Ecuador over the next three months to make up for losses from damage to the pipeline. Ecuador asked for the loan to guarantee domestic supplies and would ship an equivalent volume back to Venezuela in repayment in May, Lusinchi said. A commission headed by Venezuelan Investment Fund Minister Hector Hurtado and including representatives from the interior and defence ministries and the state oil company Petroleos de Venezuela will travel to Ecuador Tuesday to evaluate and co-ordinate an emergency relief program, he said. REUTER 

EC FARM LIBERALISATION SEEN HURTING THAI TAPIOCA

Any European Community decision to liberalise farm trade policy would hurt Thailand's tapioca industry, said Ammar Siamwalla, an agro-economist at the Thailand Development Research Institute (TDRI). He told a weekend trade seminar here that any EC move to cut tariff protection for EC grains would make many crops more competitive than tapioca in the European market. The EC is the largest buyer of Thai tapioca, absorbing more than two thirds of the 5.8 mln tonnes of pellets exported by Thailand last year. Thailand has an EC quota of an average 5.25 mln tonnes a year until 1990. Ammar said Thailand had benefited from an EC tariff loophole that subjects Thai tapioca to a preferential six pct import duty. Ammar, head of the agricultural research group of the TDRI, suggested tapioca farmers diversify to other crops. He said: "If cereal prices in Europe fall so that they are close to world prices, the tapioca market there will disappear completely." He said the issue may put Thailand in a dilemma because it had recently joined other major commodity producers in calling on the EC to cut its farm product export subsidies. REUTER 

CHINA RAISES CROP PRICES TO INCREASE OUTPUT

China has raised the prices it pays farmers for cotton, edible oil, sugar cane and beets to reverse a decline in output in 1986, He Kang, Minister of Agriculture, Animal Husbandry and Fisheries said. The China Daily quoted He as saying China should adopt intensive farming to increase per hectare output and improve crop quality and maintain arable land at 111 mln hectares. He gave no details of the price increases. On grain, He said the state will cut the quota it purchases from farmers by 50 mln tonnes and abolish the practice of purchasing through agents. He said the state will increase investment in agriculture and supplies of fertiliser, diesel oil and other production materials and stabilise fertiliser and diesel oil prices. The state offers cheap fertiliser and diesel oil and payment in advance to farmers who contract to supply grain at a low state-fixed price. He said China aims to produce between 425 and 450 mln tonnes of grain by 1990, up from a target of 405 mln this year and an actual 391 mln last year. He gave no more details. REUTER 

AUSTRALIA SELLS 180,000 TONNES OF SUGAR TO USSR

Australia sold 180,000 tonnes of raw sugar to the Soviet Union for shipment in the next few weeks, Queensland Primary Industries Minister Neville Harper said. Loading of a 50,000-tonne cargo on the Soviet freighter Nikolay Kuznetsov for shipment to Odessa was completed today at the Lucinda terminal, he said in a statement. The balance will be shipped from Mackay by end-March, Harper said. Australia exported 159,000 tonnes of sugar to the Soviet Union in 1986. REUTER 

THAI NATURAL RUBBER EXPORTS RISE IN 1986

Thai natural rubber exports rose to 763,331 tonnes in 1986 from 689,964 a year earlier, the private Board of Trade said. Japan, the biggest buyer, imported 384,622 tonnes of Thai rubber in 1986, up from 348,855 the previous year, it said. Other major buyers were the U.S. At 86,383 tonnes, up from 81,629 in 1985, China 69,952 (60,296) and West Germany 32,172 (25,909). Exports to France rose to 20,479 tonnes from 12,143 in 1985, Austria 6,048 (4,104), and Italy 4,014 tonnes (1,340). REUTER 

AUSTRALIAN BEEF OUTPUT DECLINES IN JANUARY

Australian beef output declined to 104,353 tonnes carcass weight in January from 112,262 in December and 105,715 a year earlier, the Statistics Bureau said. This followed a decline in the cattle slaughter to 472,900 head from 509,500 in December and 478,800 in January 1986, the bureau said. But cumulative beef output for the first seven months of fiscal 1986/87 ending June 30 rose to 838,416 tonnes from 746,837 a year earlier following a rise in cattle slaughter to 3.84 mln head from 3.40 mln. REUTER 

GERMAN GOVERNMENT NEEDS SEEN RAISING BOND YIELDS

Increased federal government borrowing needs and a growing unwillingness by foreign investors to buy mark assets could push yields in German public authority bonds higher this year, bond market sources say. "At the moment we have a sideways movement in the short-term rates. But how rates move in the long end will depend strongly on foreigners," one portfolio manager for a large securities investment house in Frankfurt said. The sources also said the government had already stepped up its borrowing programme in anticipation on increased needs. Friday's loan stock was the third this year already, the sources noted. It carried a 10-year maturity, a coupon of six pct and price of 100-1/4 to yield 5.97 pct at issue. This compared with the last issue which had a 5-3/4 pct coupon priced at 99-3/4 pct for a yield of 5.75 pct. But dealers said the terms were not enough to attract foreign investors, and the federal government would have to push yields higher in future if it wanted to borrow again soon. Sources noted federal government issues had also increased in size, with the introduction of a four billion mark volume only starting last May. One finance ministry economist said "It isn't more. It's just the size (of each bond) which has increased." He added conditions in the capital market currently remained fairly favourable for raising new debt. Until recently, federal issues sold very strongly abroad, with up to 90 pct of some being placed with foreign investors. With the recent stabilisation of the U.S. Dollar, however, foreign investors have begun to back away from the market, as hopes of further currency gains in marks diminish. Sources said the government has may have already stepped up its borrowing, having raised more than 18 billion marks. The government made net borrowings of 23 billion marks in 1986. But Bundesbank statistics showed that net borrowing through bonds was 26.6 billion. The sources said this indicated a move by the government out of other types of debt to gain access to foreign funds through the more acceptable loan stock form. Although new credit needs were partly inflated by a large amount of issues maturing recently, other factors, including the government's tax reduction program, would also reduce income next year. "The problem here will be the tax reform," the portfolio manager said. He added that the government's cut in its top income tax rate to 53 pct from 56 pct in 1988 would make it difficult for the government to reduce borrowings. The sources said the government would fall far short of covering all of its 40 billion marks in lost revenue from the tax reform by making expenditure cuts and would be forced to fall back on debt markets in one form or the other. The portfolio manager noted that besides the three federal government loan stocks so far this year, it has also fallen back twice to raise a total 6.43 billion marks through the issue of fixed-rate medium-term "Kassenobligation" notes. A finance ministry economist said the government did not expect to have any trouble keeping to its plan to borrow only a net 22.3 billion marks this year. Though many sources agreed, they added that the trend would probably not continue next year as the further tax cuts come into effect. "I would expect the efforts for a further tax reform would mean government borrowing will increase," the manager said. Bond prices last week were slightly firmer on balance, with the Bundesbank's public authority bond yield calculation falling to 5.64 pct on Friday from 5.66 a week earlier. But sources said foreign demand for the new federal government loan stock was slack, as sentiment grows that the dollar may now rise against the mark. "The demand wasn't so good," a dealer for a German bank in London said. The dollar's recent slight appreciation against the mark even meant that foreign investors have sold mark bonds recently, some dealers said. REUTER 

AQUINO SWEARS IN FOUR CABINET SECRETARIES

Philippine President Corazon Aquino swore in four new cabinet secretaries to fill vacancies created by the resignations of secretaries who have said they will run for the May 11 senate elections. Carlos Dominguez, 41, was made agriculture secretary. A former deputy agriculture secretary, Dominguez is considered an expert on land reform. Sedfrey Ordonez, 65, was made justice secretary and Fulgencio Factoran, 43, secretary for natural resources. Ramon Diaz, 65, was named chairman of the Presidential Commission on Good Government. All three men are lawyers. REUTER 

CHINA, KENYA IN ELECTRONIC GOODS JOINT VENTURE

Kenya and Shenzhen Electronics Group (SEG) of China will set up a joint venture in the Kenyan port city of Mombasa to assemble colour televisions and other electronic goods, the China Daily said. It said the venture, with an estimated annual production value of 50 mln Kenyan shillings, will sell domestically and to other nations in the preferential trade area of east and south Africa. SEG will open two shops in Kenya. SEG employs 170,000 people in 130 firms in China and has exported 18 mln dlrs worth of goods to western countries, it said, without providing further details. REUTER 

USSR TO CUT COAL PRICE FOR JAPANESE STEELMILLS

The Soviet Union has agreed to cut its coking coal export prices to Japanese steel mills by about five dlrs a tonne in 1987/88 starting April 1 in exchange for an increase in export volume, industry sources said. The prices were set at 44 dlrs a tonne for Neryungrinsky coal and at 43.80 dlrs for Kuznetsky coal, fob. Japan will import a total of 4.9 mln tonnes from both areas, up from 4.2 mln a year earlier, they said. The steelmakers had asked Moscow to agree to a cutback to 3.7 mln tonnes in 1987/88, but the Soviet Union urged Japan to increase the amount to 6.5 mln, they said. REUTER 

PLACER PACIFIC HOPES FOR MISIMA GOLD APPROVAL SOON

<Placer Pacific Ltd> said it hopes the Papua New Guinea government will approve development of the Misima gold project next month, following the submission of its final environmental plan in Port Moresby today. This completes the major documentation required to gain official approval to proceed, Placer said in a statement. Placer has estimated the epithermal deposit, located on the eastern half of Misima Island off the southeastern coast of Papua New Guinea, contains proven and probable reserves of 62.1 mln tonnes grading 1.35 grams/tonne gold and 20 grams/tonne silver, and exploration is continuing. REUTER 

PAPER SAYS INDICTMENTS IN IRAN CASE EXPECTED

The special prosecutor in the Iran arms scandal is expected to bring indictments that could include felony charges against senior Reagan administration officials, the New York Times reported. It quoted law enforcement officials with knowledge of the investigation as saying special prosecutor Lawrence Walsh, who is investigating the scandal, was focusing on three areas. The paper identified these as conspiracy to defraud the government, obstructing justice and making false statements to the government. It said the prosecutor had not ruled out any suspects, including current and former government officials. But the paper said Walsh, in his investigation of the sale of arms to Iran and the diversion of funds to the U.S.-backed contra rebels in Nicaragua, was running short of time. This was because Congress has begun granting immunity to key figures in the affair to speed up congressional investigations. The paper quoted one official as saying that, while obstruction of justice was usually hard to prove, evidence of a cover-up "may have been comically obvious here." REUTER 

BANGLADESH TRADE DEFICIT NARROWS IN OCTOBER 1986

The Bangladesh trade deficit narrowed to 1.91 billion Taka in October from 5.64 billion in September and 2.43 billion in October 1985, the Central Bank said. Imports dropped to 4.31 billion Taka in October from 8.22 billion in September and 4.72 billion in October 1985. Exports totalled 2.4 billion Taka in October, as against 2.58 billion in September and 2.29 billion in October 1985. REUTER 

AUSTRALIAN INVESTMENT OUTLOOK SEEN AS UNCERTAIN

The outlook for Australian industrial investment is uncertain, with capital spending at an historical low and business overly dependent on domestic demand, the Australian Chamber of Manufactures and the National Institute of Economic and Industry Research said. The organizations were commenting in their monthly Economic Focus on a survey commissioned by the Australian Council of Trade Unions concluded. Private investment as a proportion of gross domestic product fell to 9.8 pct in 1985/86 from 15 pct in 1981 and is forecast to decline to 8.8 pct in 1987/88, the Focus said. Earlier studies indicated private investment could sustain a two pct long-term economic growth rate, but the latest figures suggested this could not be maintained, it said. The Australian dollar's depreciation, coupled with research incentives, is increasing the profitability of investment for exports but several factors inhibit growth. These include weak commodity prices, high fixed capital costs, uncertain domestic economic policy and corporate debt. Firms have tended to finance expansion with debt rather than equity, leading to a 39 pct rise in the ratio of interest payments to gross cash flow between 1980/85, the survey found. Economic Focus said many companies looked for a 2.5 to 4.5 year payback on capital investment or export development -- often too short a period to secure markets. The relatively low incentive to produce for export in part reflected the ownership of Australian industry, they said. Sixty-seven pct of Australian-owned companies said external demand was conducive to investment against only 27 pct for foreign-owned companies. The survey covered 45 companies accounting for about 25 pct of total investment, Economic Focus said. REUTER 

TAIWAN ISSUES 12 BILLION DLRS OF BONDS

The central bank has issued 12 billion Taiwan dlrs worth of one and two year savings bonds to help curb the growth of M-1b money supply, a bank spokesman said. The new bonds bear interest rates ranging from five to 5.25 pct and will be sold to the public, he said. The bank issued eight billion Taiwan dlrs worth of similar bonds last month. REUTER 

JAPAN RATING AGENCIES IN BATTLE WITH U.S. GIANTS

Three Japanese credit rating agencies are entering into fierce competition with <Moody's Japan K.K.> and <Standard and Poor's Asia Inc>, the local branches of the two U.S. Giants, as the Japanese credit market opens up to foreigners, Japanese rating agency managers said. Standard and Poor's recent triple-A rating of <Chiyoda Fire and Marine Insurance Co Ltd's> claims-paying ability caused the Japanese agencies, which had rated Chiyoda's convertible bond only A-plus, to come under some criticism for being too conservative, they said. Chiyoda is Japan's eighth largest non-life insurer. Standard and Poor's Corp has been in the business for more than a century while <Moody's Investors Service Inc> was founded more than 80 years ago. Each has rated some 20,000 to 30,000 U.S. And about 100 Japanese issues. With Japanese insurers eager to issue more bonds through overseas financing companies, Chiyoda's rating will stimulate their interest in using the U.S. Agencies, the analysts said. Standard and Poor's said Chiyoda's rating was based on its strong capitalisation, stable performance and high levels of unrealised appreciation, particularly in its stock portfolio. The U.S. Agency also emphasised the favourable regulatory environment in which Japan's non-life insurers operate. Japanese agencies were shocked by the earlier AAA ratings on the claims-paying ability of <Sumitomo Life Insurance Co> and <Dai-Ichi Mutual Life Insurance Co> by Standard and Poor's, the first ratings given to Japanese life insurers. Strong Japanese insurers can accumulate cash to ward off shocks from any foreign investment, Standard and Poor's said. A month ago <Nippon Investors Service Inc> (NIS) assigned an AAA rating to <Financial Securities Assurance Inc>, a U.S. Firm that gives financial guarantees on corporate securities. "NIS has assigned rates on a U.S. Firm for the first time in Japan, which was the first step into the U.S. Rating market," Kazuya Kumura, general manager of NIS, said. Kyosuke Yoshida, managing director of Japan Bond Research Institute (JBRI), said, "Agencies should be more actively used to respond better to growing overseas investor interest." Takeshi Watanabe, president of Japan Credit Rating Agency Ltd (JCRA), said, "(Our) advantages are that we have a deeper understanding of business practices in Japan, other Asian nations and Japanese investor behaviour and are also more alert and quick to react to domestic news." JBRI, with 12 years' experience, is Japan's largest agency. The other two have been in business for two years. Finance Ministry approval of yen commercial paper issues by Japanese residents, which is expected soon, will stimulate local agencies to grow quickly, securities analysts said. The Finance Ministry is encouraging more use of agencies by gradually abolishing limits on corporate debt creation. In December it allowed non-residents holding at least an A-rating from one of the agencies to issue samurai, shogun and euroyen bonds without first meeting the normal stringent financial criteria. But local companies, regardless of the rating obtained for a planned bond, must meet the tough financial criteria set by commissioned banks and underwriters, which includes minimum net asset requirements and capitalisation, local agency managers said. Commissioned banks are responsible for protecting bondholders and conducting principal and coupon payments. Investors' risk in corporate default has been checked by the very system that is slowing the smooth growth of Japanese credit rating agencies, the managers said. "The idea of rating in Japan has been woven into prerequisites for an issuer company to satisfy financial criteria," JCRA's Watanabe said. The Finance Ministry, commissioned banks and securities houses agreed in January to lower the eligibility ceiling for companies wanting to issue non-collateral straight bonds. "An internationally comprehensive market system is needed to lure more overseas investors into the Japanese market," JBRI's Yoshida said. REUTER 

GROUP-77 OFFICIALS SET AGENDA FOR DHAKA MEETING

Most commodity agreements are close to collapse and the debt problem continues to weigh heavily on developing countries, Bangladesh Commerce Minister M.A. Munim told officials from 30 Asian countries in the Group of 77. The officials are meeting to finalise the agenda for the group's regional ministerial conference here Saturday. Delegates from all 43 Asian member countries of the G-77 are expected to attend the later meeting. Commerce Ministry officials said the countries will try to adopt a common strategy to counter protectionist measures by developed countries and forge developing country cooperation Commerce Secretary A.B.M. Ghulam Mostafa said the officials would discuss issues relating to financial resources, commodities, international trade and least developed countries, and formulate "concrete measures towards concerted action." Recommendations of the Dhaka meeting will be placed before the July United Nations Conference on Trade and Development meeting at Geneva, officials said. The Dhaka meeting would also discuss the possibility of setting up a "South Bank," along the lines of the Asian Development Bank, to boost financial exchanges and economic coperation between developing countries. It has not been proposed formally and no details were given. REUTER 

SWISS INDUSTRIAL OUTPUT RISES IN FOURTH QQUARTER

Swiss industrial output rose nine pct in the fourth quarter last year after a four pct third quarter decline, and was up three pct from the final three months of 1985, the Federal Office of Industry, Trade and Labour said. For the full year 1986 the index, base 1963, stood at 166 after up four pct from the 159 recorded the previous year. Incoming orders gained four pct in the quarter after a five pct third quarter fall and were up one pct from the year earlier level. In the full year they gained one pct. The order backlog fell eight pct, the third straight quarterly decline and ended three pct under the year earlier level. REUTER 

FOREIGN BROKERS MAY GET MORE ACCESS TO JAPAN BONDS

Japanese securities houses are thinking of allowing foreign brokerages to underwrite more Japanese government bonds from April, securities managers said. The average foreign brokerage now underwrites only around 0.07 pct of each such issue's volume, they told Reuters. The proposal is a response to overseas calls for Japan to liberalise its markets in the trend towards global trading. Japanese brokerages are consistently heavy buyers of U.S. Treasury issues. <Nomura Securities International Inc> and <Daiwa Securities America Inc> were named primary dealers in U.S. Government securities in December, they noted. Brokerages within the government bond-writing syndicate are now negotiating by how much foreign house subscriptions to government bonds should be raised, the managers said. The syndicate members agreed in April, 1982 that 26 pct of 10-year government bonds should be underwritten by 93 securities firms, 17 of them foreign, and 74 pct by banks. The Finance Ministry later approved the arrangement. Foreign brokers want to underwrite more government bonds due to their end-investor appeal. <Salomon Brothers Asia Ltd> caught market attention by buying 45 billion yen of the 100 billion of government two-year notes auctioned on February 3. Salomon's operation was an attempt to demonstrate its commitment to the Japanese market in the hope of expanding its underwriting share of 10-year bonds, securities sources said. They said that to expand participation by foreigners, the syndicate must either expand the securities industry's 26 pct share, cut local brokerages' share, or introduce auctions to the government bond primary market, the sources said. Bankers are likely to oppose losing any share and the Finance Ministry is unwilling to introduce auctions on the ground that it would slow smooth absorption of bonds in the secondary market, securities manager said. REUTER 

U.S. SEEKS MAJOR JAPANESE ECONOMIC CHANGE IN APRIL

The United States has openly attacked Japan's tight-fisted fiscal policy for the first time and warned Tokyo its promised economic package in April must be significant, senior U.S. Officials said. In high-level talks last week, the U.S. Criticised Japan's overall fiscal policy as deflationary and argued that its fiscal position is not as dire as it says. The criticism reflects a growing feeling among some U.S. Policy-makers that Japan's tight fiscal policy is frustrating attempts to stimulate domestic demand and boost imports. The U.S. Attack represents a distinct shift by the conservative Reagan administration, which until recently has been sympathetic to Tokyo's efforts to reduce the government role in the economy, diplomats said. Pointing out that Japan pledged in Paris last month to take action to boost demand, a senior U.S. Treasury official said the April package must be more than routine. Japanese government bureaucrats have already said they do not expect the package to contain much more than a rehash of last April's measures. That means accelerated public investment, lower interest rates on government housing loans and measures to pass along the benefits of the strong yen to consumers, none of which would have a major immediate economic impact. Several Japanese officials agreed that the real obstacle to stimulating the economy is the fiscal policy pursued by the Finance Ministry and said they welcomed the shift in U.S. Policy. But they expressed concern that the move might backfire by fanning resentment against U.S. Interference in domestic affairs. Makoto Kuroda, vice minister for international affairs at the Ministry of International Trade and Industry, said Japan would stimulate the economy not in response to U.S. Criticism, but to meet mounting pressure from Japanese businessmen. The shift in U.S. Policy is also causing some nervousness within the Reagan administration. U.S. Undersecretary of State for Economic Affairs Allen Wallis told reporters last week the U.S. Does not necessarily want an increase in Japan's budget deficit. "There are many measures Japan could take to stimulate its economy," he said. The argument is not new and has been raised in the past by the Organisation for Economic Cooperation and Development. What is new is U.S. Backing for the position. At last week's talks, Japanese officials said, they argued Tokyo had been able to maintain a tight fiscal stance and boost the economy with funds from the giant postal savings system. But the Finance Ministry was interested enough to ask for, and receive, the figures supporting the new U.S. Position, a senior U.S. Official said. Other western officials are not so sure. They said it would take time to boost public investment much further, as there are not that many projects in the pipeline. Stepped-up capital spending would help domestic construction companies, but it would not have much impact on imports, they added. REUTER 

ASIAN DOLLAR ASSETS EXCEED 200 BILLION DLRS

The Asian dollar market continued to expand in December with total assets and liabilities rising to 200.60 billion U.S. Dlrs from 188.54 billion in November and 155.37 billion in December 1985, the Monetary Authority of Singapore said. It said the increase came mainly from interbank activity, with interbank lending rising to 146.61 billion dlrs in December from 134.76 billion in November and 104.93 billion in December 1985. Interbank deposits increased to 158.52 billion dlrs against 147.95 billion and 120.03 billion, respectively. Loans to non-bank customers increased in December to 38.74 billion dlrs from 38.64 billion in November and 37.44 billion in December 1985. Deposits by non-bank customers rose to 33.81 billion dlrs against 33.60 billion and 28.02 billion. REUTER 

SINGAPORE M-1 MONEY SUPPLY UP 3.7 PCT IN DECEMBER

Singapore's M-1 money supply rose 3.7 pct during December to 9.82 billion dlrs, after a 2.0 pct increase in November, the Monetary authority of Singapore (MAS) said. M-1 growth for calendar 1986 was 11.8 pct compared with 4.0 pct growth over the year ending in November. MAS said in its latest monthly statistical bulletin the December increase was largely due to seasonal year-end demand. The demand deposit component of M-1 increased to 4.79 billion dlrs in December from 4.62 billion in November and 4.05 billion in December 1985. Currency in active circulation rose to 5.03 billion dlrs in December from 4.85 billion in November and 4.74 billion a year earlier. Broadly-based M-2 money supply rose 1.6 pct to 30.95 billion dlrs during December after a 1.7 pct rise in November, bringing year-on-year growth to 10.0 pct for the year ending in December against 10.2 pct for the year ending in November. REUTER 

CHINESE INDUSTRIAL GROWTH RATE UP AFTER WEAK 1986

The value of China's industrial output in January and February this year was 14.1 pct higher than in the same 1986 period, the New China News Agency said. Output increased by 5.6 pct from January 1985 to January 1986 and 0.9 pct from February 1985 to 1986. The agency said the most recent increase was largely due to last year's poor performance. "No significant improvement was made in economic results," it said, adding that some successes were reported in readjusting the industrial product mix in the last quarter of 1986. The agency said the amount of tied up working capital rose and sizeable funds were occupied by unsaleable goods in 1986. It quoted unnamed economists as saying they expect 1987 industrial production to increase at a proper rate and with better results, due to a cost-efficiency drive underway throughout the country. It gave no more details. The official industrial growth target this year is seven pct, down from an actual 9.2 pct last year. REUTER 

NEW DUTCH ADVANCES TOTAL 6.5 BILLION GUILDERS

The Dutch central bank said it has accepted bids totalling 6.5 billion guilders at tender for new eleven-day special advances at 5.3 pct covering the period March 9 to 20 aimed at relieving money market tightness. Subscriptions to 500 mln guilders were met in full, amounts above 500 mln at 35 pct. The new facility replaces old seven-day advances worth 4.8 billion guilders at the same rate. REUTER 

UNION BANK OF FINLAND ISSUES EUROYEN BOND

Union Bank of Finland is issuing a 10 billion yen eurobond due March 30, 1992 paying five pct and priced at 102-3/8 pct, lead manager LTCB International Ltd said. The bond is available in denominations of one mln yen and will be listed in Luxembourg. Payment date is March 30. Fees comprise 1-1/4 pct selling concession and 5/8 pct for management and underwriting combined. REUTER 

IRAN SELLING DISCOUNTED CRUDE, JAPAN TRADERS SAY

Japanese customers have bought nearly six mln barrels of crude oil from the National Iranian Oil Company (NIOC) at a substantial discount to the official price, and Western traders have received even larger discounts, Japanese traders involved in the transactions told Reuters. NIOC has sold its crude for March shipment to Japanese customers with different formulas. One company has bought 800,000 barrels of Iranian Heavy at a straight discount of 30-35 cents below the official price, the sources said. Other deals have been fixed with prices linked to Oman and Dubai spot prices less a discount, they said. Iran's discounted sales have not, however, managed to reverse the bullish tone in the crude oil and products spot markets, oil traders said. Market sentiment is being influenced more by the colder weather in Europe, and reports that OPEC's February output was below its self-imposed quota of 15.8 mln barrels per day. Firmer gas oil on the London futures, and more bullish sentiment on the New York Mercantile Exchange futures market are supporting spot price levels, they said. Another Japanese trading house has paid the official price but through a processing arrangement will effectively receive a discount, the sources said. "It's just disguised cheating," one Japanese trader said. The sources said only one Japanese company had paid the official price for Iranian oil. It has purchased 1.5 mln barrels of Iranian Heavy for April shipment for refining in Singapore. They said about nine VLCCs of Iranian crude have been sold to Western traders with pricing based 60 pct on the official price and 40 pct on spot prices, or with part of the price related to processing arrangements. 

ICI SELLS STAKE IN LISTER AND CO

Imperial Chemical Industries Plc <ICI.L> said it had today placed its 19.4 pct stake in Lister and Co Plc with L Messel and Co and that it had now been placed widely among institutions. Lister is a manufacturer, dyer and finisher of cotton, silk wool and man-made fibres. REUTER 

UNILEVER UNIT ISSUES 40 MLN AUSTRALIAN DLR BOND

Unilever Australia Ltd is issuing 40 mln Australian dlrs of bonds due April 14, 1990 carrying a coupon of 14-3/4 pct and priced at 101-1/2, said County NatWest Capital Markets as lead manager. The bonds are guaranteed by Unilever PLc whose outstanding debt securities are rated AAA. The bonds are non-callable and will be available in denominations of 1,000 and 10,000 dlrs. The securities will be listed on the Luxembourg Stock Exchange. Fees are a one pct selling concession and 1/2 pct combined management and underwriting. REUTER